Buying Your First Home This Fall? Your First Three Must-Do Tasks

September 4, 2012 By 2 Comments

Boston real estate agents are making their way back from the Cape getting ready to put up some For Sale signs. The Fall real estate market is here. According to Realtors, it officially begins the day after Labor Day. The general expectation is for a vibrant, busy and tight real estate market in Brookline, Boston and Newton in the coming months.

First time home buyers lead the market, and more them are taking the plunge. Going about it correctly will make the difference between a good or bad investment, a positive or negative experience. If you are considering making this fall market your opportunity to buy, here are your three must-do tasks. Do these three things, and you’ll be well positioned in the busy market.

  1. Hire a buyer’s agent. There are many ways to find an buyer’s agent, and trust me; there are a lot of us. You can ask a friend for a recommendation, meet agents at open houses or call on some advertising. But whatever you do, hire someone after a thorough interview and once you’ve made a genuine connection. It is more important you work with an agent you feel understands your needs and respects your pace, rather than your friends’ recommendation for his cousin’s neighbor’s mom.
  2. Get Pre-Approved! A pre-qualification does not count. Speak with a human mortgage broker (rather than simple online forms), and learn what you need to do to finance a home. Once you speak with a professional and knowledgeable mortgage broker, you’ll be much wiser. Furthermore, having a pre-approval in hand is a solid foundation for making offers. Don’t guess how much you can spend and hope to get everything done later. It doesn’t work.
  3. Prepare for a big change in your life. I’ve worked with many first time home buyers over the past ten years. Buying your first home is a time of great change. And although it is a change for the better, the task can be daunting. Break it down to small pieces. Focus on each stage of the home buying process, such as looking at homes, or inspection. If you’ve done task one and two, the whole process will feel manageable, and you will have a team working with you to make it all happen.

If you are ready to take advantage of low mortgage rates and a rising real estate market, buying your first home can prove a terrific investment. Take a deep breath, and say hello to the Boston real estate.

Filed Under: Buying a Home Tagged With: , , , , , , , , , ,

The Risks of an Exclusive Buyer Agency Contract

August 21, 2012 By Leave a Comment

Finally buyer agency contracts are becoming more popular in Greater Boston. As a first time home buyer in Boston you should be especially interested in signing a buyer agency contract. Boston, Newton, and Brookline Realtors are usually happy to discuss the contract and demonstrate how it protects you.

The goal of a buyer agency contract is to cement a relationship between broker and buyer for a set period of time. The broker is obligated to meet fiduciary responsibilities to the buyer, which essential means the buyer’s interests and instructions always trump the broker’s interests and advice.

Like in any contract, there are risks and benefits to both the agent and the buyer. Let’s clarify what they are so you can judge if you need the buyer agency when you buy a home.

Risks to Buyer

To the buyer, there are two main risks. First, the buyer is obligated to work exclusively with the buyer agent for a set period of time, as outlined in the contract. But what happens after a couple of months the agent proves unhelpful or a bad match?

This risk can mostly be averted by interviewing agents and asking for referrals. Some agents happily work with you for a bit to ensure there is a good match between broker and buyer.

The second risk to the home buyer is the possibility of an added cost. But, that’s not really the case – it only seems like a risk. The prices of homes almost always include the buyer agent’s commission. Most For-Sale-By-Owner homes pay a buyer agency commission.

What about a listing with a discount commission. Say you are a first time home buyer in Boston and you are looking at small condos. Some of them may have a commission paid to buyer’s agent of 2%, and your contract is for 2.5%. Where is the missing 0.5% coming from?

You can build the added commission into the offer price and it can still come out of the seller’s final price. Alternatively, you can pay the balance at the closing yourself remembering sellers who discount commission usually negotiate badly – meaning, you probably have a decent deal on your hands!

Risks to Broker

The broker also takes risks in these contracts. First, just as the buyers, we may not want to spend six or twelve months committed to you. Sometimes agents don’t like their clients, and fat chance we’ll get referrals from a client’s accountant / attorney / financial planner / parents to learn if you are reasonable.

But the guarantee of getting paid has brokers working a bit harder for clients and more committed to the process regardless of how unreasonable.

The other risk we have, and the biggest of all risks, is somehow failing to meet all the obligations spelled out in the contract. We can’t miss a house! This is especially daunting in a very tight market where everything sells so quickly.

Every obligation and task on the contract is a potential lawsuit if not done correctly. The buyer agency contract carries a huge responsibility for the broker. This is not a bad thing, but it is important to point out.

The Benefits

Signing a contract awards the buyer benefits of fiduciary obligation and commitment from the broker. You have someone working for you, no need to ponder the agent’s agenda. As a serious buyer you want to hire a buyer agent so you are guaranteed a level of service, which you deserve.

The broker benefits from the guaranteed income if he should successfully sell a home. It is very frustrating for agents to work for buyers only to find they walked into an open house and bought a home direct from the listing agent.

We don’t get paid if you don’t buy, but if you do buy, we want to get paid. The buyer agency contract guarantees the buyer receives services in return. This begs the buyers to consider their agents more carefully, which is a very good thing.

Buyers often mistakenly think the buyer agency contract was developed to protect agents, when the buyer is the one who has most to gain.

Filed Under: Buying a Home Tagged With: , , , , , , , , , ,

Today’s Home Selling: Listing Agents as SEO Expert

July 26, 2012 By Leave a Comment

Selling a home used to be characterized by three activities: putting up a yard sign, hosting an open house, and advertising in the paper. Some agents did this extremely well. If selling your home was that simple, no wonder so many people chose to sell homes by themselves.

These days, selling your home is a lot more complex and requires a new level of sophistication. Listing agents need to be search engine optimizing (SEO) experts. Most agents don’t understand this yet. Brookline Realtors, Newton MA real estate agents, and Boston real estate in general often lag behind in these matters.

According to the National Association of Realtors, 88% of buyers use the internet in their home search, and I bet that number is even higher in the Greater Boston Area. Where else would you begin any search for anything? When you are finding answers to your queries, it means someone has taken the time to put content together and optimize for you to find.

Home searches are not just beginning online, but they continue online as well. Buyers don’t stop their search as they get closer to finding their home. Photos, floor plans, videos and information is reviewed and used to make shorter lists of homes to see. Online home profiles are used to compare and contrast homes and to make final decisions as well.

If this is how buyers choose to consume information, it is the listing brokers’ responsibility to feed that information accordingly. A successful online marketing strategy for a home has two functions. First, to be found by as many targeted buyers as possible. To be easily found is great, but quality trumps quantity. I would rather have five visitors to the home who are qualified, ready to buy, and are the right fit for the home than 25 visitors who are browsing and curious.

The second function of a successful online marketing strategy for a home is appeal. Your home needs to look amazing online. Professional photos, floor plans, complete information, and a video all help. More than ever the preparation for a home sale is important so the photographs and videos inspire the buyer to schedule an appointment.

Incomplete information may have been acceptable in the days when the buyer’s agent was the gatekeeper of information, but no more. Any listing agent who’s marketing plan focuses on open houses, yard signs, and advertising is missing the point, and a good chunk of good buyers for your home.

How did you find your home? How long ago was that?

Filed Under: Selling a Home Tagged With: , , , , , ,

Stupid Mistakes Home Buyers Make

June 26, 2012 By Leave a Comment

There are many multiple-offer situations these days, especially in Newton and Brighton. I heard of a buyer who put bids on four properties before giving-up and renting. Despite the stories, I still believe the biggest mistakes buyers make are rooted in the fear of losing a property.

Fear based decisions are usually wrong. In buying real estate, fear results in heart ache and overpaying. When a buyer fears losing a home she will offer too much money, overlook important inspection items, or not pay attention to the condominium documents or a building’s financial condition.

A careless broker will allow for this without regard. Even if the initial offer is for a reasonable price, the negotiations will be weak resulting in accommodating the seller excessively. Negotiating can be stressful and emotional, the best time to lose a sense of reality and get overly attached to a property.

Then comes inspection, where expensive issues come up. In fear of losing the property, the buyer will accept the home as it is or under negotiate. For major issues, the buyer should bring in professionals who can quote necessary repairs. A buyer’s agent understanding fiduciary responsibility will encourage this, and encourage the buyer to disregard a disgruntled seller.

A nervous buyer may skim the purchase and sale contract, and not request an explanation of the parts from the attorney. Buyers must not be shy about asking the attorney to take the time to review the pieces of this 7-14 page contract. All remaining contingencies and the buyer’s pre-closing responsibilities are to be thoroughly understood.

Sometime between 24 to 1 hour before the closing there will be a walk-through the property to ensure it was left in broom-clean condition and any inspection issues were properly fixed. If you think this is simply a formality, think again! My own walk-through was a disaster, with the condo left a mess and still needing to have items removed. A few of my buyers found the property in unacceptable condition before closing.

There are ways to deal with this problem, too. Money paid back to buyer or held back in escrow are two options. The buyer has the right to demand seller pay for the property to be vacated and cleaned, regardless of how desirable the property and how many offers competed for it.

So don’t fear losing a property. You’ll be a much better negotiator if you remember this important truth: There will be another home.

Filed Under: Buying a Home Tagged With: , , , , , , , , ,

Monthly National Association of Realtors Pending Home Sales Update

June 7, 2012 By Leave a Comment

Filed Under: Real Estate News Tagged With: , , , , , , , ,

Your Online Resources for Brookline and Newton Real Estate

May 11, 2012 By Leave a Comment

To this day I get phone calls on a couple of listings I had five or six years ago in Brighton. This is not intentional bait-and-switch marketing, it usually catches me off guard. On these calls I ask where they learned about the listing. The answer is one of two websites, which I won’t mention.

There are several sites promising listing information, but they are useless. Worse than useless, they’ll suck-up your time. In your Newton, Brookline or Brighton property search, use the following resources.

1. Realtor.com. The Realtor website is a premier stop for everything real estate. It is linked to the Multiple Listing Services so information is current. Once you put in your search criteria, make sure you scroll down past the ads of “featured properties.” They are not part of your search results. The drawback is it’s not local enough so if you want to find some area information and articles, this is not the place.

2. Boston.com. For open house information, and all local real estate information, Boston.com has proven itself. It is one of the most used local real estate sites in the United States. You’ll see the photos and have some community information, videos, maps, etc. Again, scroll down past the ads. Nothing against the ads, but they are not part of your search results.

3. Your agent’s Multiple Listing Service (MLS). This is the best. You’ll receive your updates by email daily, what’s new to market and price reductions. You can log on and have access to all the same information I have, delete the listings you don’t like, write comments, ask questions and request showings. On your agent’s MLS you will see the pictures and also have access to a tour, video, and related documents such as a floor plan.

If you are serious about your search, daily email is critical. You’ll learn about price reductions (my favorite piece of information). You’ll learn about a property now in your price range when it was not previously.

What about the homes that don’t make it into MLS? This is a tiny percent of the market. Most for sale by owners in Brookline and Newton are on the MLS. If you’ve hired a buyer’s agent, he or she should be checking Craig’s list regularly as well.

Even if you are just casually looking at real estate, or starting a serious search, please please please use good sources of information so you are not wasting your time. Listing information is easy to obtain and it is free. Ensure it is from an accurate and reputable source.

Filed Under: Buying a Home Tagged With: , , , , , , , , ,

Choosing Your Boston Area Real Estate Broker: Big Chain or Small Local Firm?

April 3, 2012 By Leave a Comment

We are creatures of comfort. We tend to like the known and choose the familiar. This is true especially with big financial decisions, such as selling or buying a home.

In the Boston area you are blessed with seemingly endless options of real estate brokers to represent you. But when the same three companies are dominating your area’s for-sale signs, it is likely you’ll choose to call those three. I don’t blame you.

But here’s some insider information, from someone who has sold real estate in the Boston Area through three different real estate firms. Here some major differences between choosing a big chain or small local firm.
1. Customization. Big real estate firms offer some great services, but they’ll never truly customize to your needs. The offices streamline the business for good reason - efficiency, timeliness and organization. But in this need to avoid chaos, the individual need of the client is lost.

A small firm has much more flexibility, and thus a greater ability to market your home appropriately, and cater to buyer clients easily. No cookie-cutter marketing plans.

For example, I worked with a large agency and there were specific marketing steps to take, a checklist of materials and deadlines to meet. But many marketing methods were useless to the type of properties I was selling. I did not have the option to move the money from, say, newspaper ads to online exposure.

2. Agent Control. You’d think a big company would have more resources, and thus be able to meet your needs. In a large firm, the agent has company rules and timelines, less control over the transaction. In a small firm, the business is centered around the individual agents, giving the agent control.

If you were a repeat client and I wanted to give you a discount on commission, my large agency would cut my pay substantially. The company would not compromise over its share of the commission. After marketing expenses, I could be left with nothing.

3. The Office Space. Real estate offices of large firms, especially in the Boston Area, seem to be on a race of which is fancier and more modern. Sure they look nice, but do they have a purpose? Most real estate client meetings are not in the office, but in your homes or touring properties.

So next time you are impressed by the lobby of a big-name agency think about this: it’s there to attract the agents, more than anyone else. Real estate agencies must keep hiring agents all the time, it’s the most important job of the sales manager. A nice office surely helps.

This has nothing to do with the quality of service you get. Most agents are on the go with a smart phone. Busy agents are not in the office much. As my first manager used to say, “If you are in the office, you’re not selling real estate.”

4. Broker versus Agent. Large companies have call centers and agents on “floor duty,” answering the calls. As a seller, this is not good for you. Picture this: a potential buyer sees the sign or ad, calls up the company number, and one of two things happen. Either the buyer gets a call back a while later from the agent, or talks with a “floor duty” agent who has no connection to your home. This agent’s job is to pick-up business and sell that buyer anything, not your home.

Wouldn’t you rather have the buyer connect directly with your agent, intent on selling your home ASAP?

Next time you consider hiring a real estate broker in the Boston area, please consider to get out of the real estate comfort zone, and perhaps aspire to a for-sale sign that is not blue.

Filed Under: Selling a Home Tagged With: , , , , , , ,

Can I Trust My Real Estate Agent?

February 15, 2012 By Leave a Comment

In many countries and cultures the salesperson is not highly regarded. They are seen as swindlers, trying to get a commission at any cost. This often happens where there is little history of salesmanship, or little consumer protection.

Luckily, here in the United States, we respect the sales agent. We recognize that a sale is the first step of any transaction. Salespeople are often top earners in any industry and real estate agents have earned a commanding place in the economy.

I believe the overwhelming majority of real estate agents are trustworthy and will do their best for their clients. I am not saying they are great agents or skilled negotiators, I’m just saying their intention is to serve honestly and meet fiduciary obligations. Don’t forget we have enough liability that it is just not worth being slightly less than forthcoming.

In working with people from various cultures and immigrants from several countries, I learned that hiring a real estate agent goes against the common good sense for many. A deep distrust is hard to shake-off. Here are a few tips to find an agent that you can trust.

Ask for References - It is perfectly acceptable to ask for references. An agent should be happy to give references. Feel free to read testimonials, call past clients, and ask many questions.

Ask about Challenges - Every process has a challenge, every sales person has a weakness. We are not perfect and the most confident and trustworthy people will be open about that.

Use your own intuition - Most trust is built through simple rapport. That is how we build friendships and business associations. Use your own intuition about a salesperson like you would about any other person.

Be open about your reluctance - You can speak plainly about why it is difficult for you to hire an agent. If you are met with hostility and offense, then you are speaking with the wrong person. A trustworthy agent will be able to explain to you the different rules and regulations in real estate brokering, and be sensitive to your needs.

If you don’t understand something, say so! – A good agent will find a way to make things plain and clear, regardless of your language and cultural differences. Ask as many times as you need to have things clarified, a trustworthy agent wants to know that you have 100% understanding of what is going on.

Whether a discomfort with real estate agents is due to a cultural difference or a bad experience in the past, you can find someone who will be completely committed to representing your best interests.

Let me know if I can help you find the right agent. By Ruth Malkin-Lerner, Senior Associate, Dwell360

Filed Under: Buying and Selling a Home Tagged With: , , , , , , , , ,

Finding the Balance

February 9, 2012 By Leave a Comment

One of my favorite clients was buying a home with her husband while she was finishing law school, studying for the bar exam, and expecting her first child. Talk about a stressful time. It would have all been enough without looking for a new home, but sometimes you just have a lot on your plate and you have to manage it somehow.

Buying a home, especially a first home, is stressful. And if someone ever doubts the need for a real estate agent to guide a buyer through the process, all I have to do is go through the to-do list of home buying and tally-up the time involved. Figure out how to incorporate it all into your daily life, while keeping your wits about you, and you got yourself one mess of six months.

Unless you find the right agent.

You know you have the right agent if you feel you’d be more stressed without him or her. An agent will save you loads of time (and money), and navigate you through all you have to do to become a homeowner. More importantly, though, an agent should help you find the balance between the stress of change and the joy of it.

If you are buying a home, it means you are going through a major life change. Even if it is just a first small condo, comparable to the apartment you live in, in the same neighborhood, you are still adopting a new lifestyle. And like all complex processes, home buying is never free to snags, snafus, bumps, and issues.

So don’t overlook the importance of a real estate agent. Instead find the right one. When shopping around for an agent, ask yourself the following:

• Will this person be helpful in making decisions and be supportive of my decisions?
The right agent will direct you to realistic expectations and help shape your home buying goals. Then, he or she should enthusiastically assist you in reaching those goals.

• Does this person make me feel secure and calm, or do I find myself stressed and confused?
Some people have sense of security, and some seem to be confused and overwhelmed. Both are contagious so be careful. When the home-buying process will meet its inevitable challenges, find someone who’ll make you feel better, not worse.

• Does he or she explain things in a way I understand?
A real estate transaction has many subtleties and complexities, but it is not difficult. You should be able to know what is going on the first time it is explained, it is not brain surgery. Misunderstandings and confusion are a great source of stress and wasted time. Ask questions and hire an agent who answers them clearly.

And most importantly, keep your sense of humor. by Ruth Malkin-Lerner, Senior Sales Associate, Dwell360

Filed Under: Buying a Home Tagged With: , , , , , , , , , , , ,

How Landlords Save the World

January 18, 2012 By Leave a Comment

The title of this entry is over-the-top, I admit, but I am just here to stick up for the landlords out there who are trying to do some good. The word “landlord” in itself has some negativity associated with it, and the use of “lord” in this context is distasteful in our American sensibility. In media, landlords are portrayed as misers ready to make a buck on the poor and take advantage of families.

Please!

Let me tell you about the landlords, the real estate investors, I know.

First and foremost, there is a commitment to maintain the property and keeping the tenant happy and comfortable, even with the high occupancy rate and the increasing rents. I am not suggesting any altruism here, but it is cheaper to keep than replace tenants. It only makes sense that tenants stay for a long-run, and take care of the property, as it is their home. Fostering that environment is essential for positive tenant-landlord relations, which is the relationship you want in between any consumer and supplier.

A rental property is a huge financial commitment and a landlord idiot enough to not take care of it and ensure it’s livability is ill suited for the job.

Yes, there are many terrible landlords out there. The worse of them are the ones who neglect their properties, fail to keep up with safety codes, and don’t treat their tenants with the respect they deserve. Just like in any occupation, in any aspect of humanity, there are some bad apples.

For more on tenant-landlord rights in Massachusetts, go to http://www.mass.gov/ago/docs/consumer/landlordtenant073007.pdf

Filed Under: Uncategorized Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
« Older Posts