Andrew Wetzel's Musings

September 22, 2017

The Internet and Real Estate: a Bridge OR a Wall?

The Internet provides information 24/7 and has caused “disintermediation“, meaning that it has placed itself directly between the consumer and the Real Estate professional.  We helped divert or even push the public towards the easy access provided by the Internet by using a tight fist to control the information.  There was a time when you had to call us to get what you wanted.  They call that the “gatekeeper” model.

Now that so much information is easily (and often, freely) obtained without needing to rush to hire an agent, our role has been delayed but not eliminated.  Unfortunately, what should be likened to a “bridge”, meaning it provides useful and timely information to a consumer not ready to engage a professional but nonetheless curious, has becomes a “wall“.  The information should “facilitate” the process of buying or selling Real Estate by preparing people to take action but there is far too much misinformation and it is too easy to diminish the role that a professional Realtor should play in such a major undertaking.  Frankly, many do not know what they do not know and they too often waste time that could have been put to better use even if that means finding out that they cannot get mortgage financing!  Information is king but there is more to the process than mere words and anecdotes.  There is no substitute for experience.

HIRE WISELY!

Please read my other posts at WhyAndrewWetzel.com and visit my web site AndrewWetzel.com

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September 14, 2017

Want to Sell a House? Think baseball!

You may not have read my earlier, related post using an analogy about buying a house and baseball (https://andrewwetzel.wordpress.com/2017/09/12/want-to-buy-a-house-think-baseball/) so let me state my premise:  analogies are a great way to make complex topics seem simple. Selling and buying Real Estate are NOT “rocket science” but, unfortunately, too many underestimate what they think they know when making what is typically the largest financial decision of their life.

Why baseball? There is no time limit and it has four specific reference points. Let me explain. Home plate is where you start and, if you are successful, you will round the bases and return home. Home plate is the goal and you can get there two ways:  you can successfully navigate each base (one at a time!) or you can hit one out of the park. In this analogy the fielders are obstructions that can stop you in your tracks or delay your progress. The pitcher represents “life”, tossing you the ball which is the opportunity to sell (or buy). In order to succeed, you need to reach EACH base and satisfy some requirement to move forward. By the way, in this analogy, a HOME RUN means finding your own buyer or giving your house away so you do not need to do much else.

First base:  having made the decision (or, unfortunately, being forced) to sell, you need to make the public aware that your house (or property) is available. Reaching “first base” means that you have hired a professional agent to market your home. That task is so much easier today because of the Internet but do NOT let that invention delude you into thinking that you have the ability to sell your own house! As you should know, there is a wide variation in terms of qualifications and expertise between agents but even the newest agent has hours of training and ample resources that a typical member of public does not. In addition, selling is one thing (it is largely based on price and value) while getting to settlement is where we earn our fee. So, your house is “on the market”, presumably you have a “For Sale” sign in place, your property information is in the MLS and being shared on countless web sites and you are waiting for people to line up to throw their hard-earned dollars your way. If only it were that easy!

Second base:  showing have started which, at the very least, suggests that people know your house is available and they are curious. If you are not getting showings you need to review your plan:  is your asking price competitive with your local market as far as location, features and condition? How is the “marketing”? You can spend countless hours and endless resources on this topic but it really boils down to two things: can agents find your property listing in their MLS searches and can prospective buyers find your listing in their online searches? If they cannot, you can reduce your asking price as far and as often as you wish but may have nothing to show for it if people do not know your house is on the market. Call me and I will share specific examples! Even if you are getting showings, you probably have no way of knowing whether the buyers are “qualified” let alone serious and you most likely have no idea who the agents are that are using your keys to walk through your castle. Showing your house is not fun and can be very inconvenient but it is necessary so most sellers prefer not to linger too long at this phase. To advance, you need to get offers to negotiate.

Third base:  congratulations! You have an executed agreement of sale. This means that you and a prospective buyer have agreed in writing to a specific price and to specific terms and conditions including inspections and a settlement/ closing date. The seller and buyer, with ample support and direction from their agents, have specific tasks to accomplish. Some are universal while others may depend on local practice. Either way, you both need to see to it that a composite list of items are completed before or, in some cases, at closing.

Home“:  hopefully both parties are satisfied and remain committed to the process, looking forward to the next phase of their lives without hesitation. This assumes that they worked out any inspection issues, that the buyer got their financing or has the cash to buy and that the seller is able to provide “clear title” (including removing any liens/ debt from the property). The process concludes with the ceremonial passing of the keys and the issuing of any funds due.

There will be times when the parties need to interact after settlement and those interactions can be unpleasant. The process leading up to and whatever happens after settlement often involve opportunities for disagreement and doubt, even in the smoothest sales. How they are managed depends on preparation and effort. You will get to re-evaluate the process from time to time so it is important to …

HIRE WISELY!

Please read my other posts at WhyAndrewWetzel.com and visit my web site AndrewWetzel.com

September 12, 2017

Want to Buy a house? Think baseball!

Filed under: Uncategorized — awetzel @ 2:07 PM

Analogies are a great way to make complex topics seem simple. Buying (and selling) Real Estate are NOT “rocket science” but, unfortunately, too many underestimate what they think they know when making what is typically the largest financial decision of their life.

Why baseball? There is no time limit and it has four specific reference points. Let me explain. Home plate is where you start and, if you are successful, you will round the bases and return home as an owner. Home plate is the goal and you can get there two ways:  you can successfully navigate each base (one at a time!) or you can hit one out of the park. In this analogy the fielders are obstructions that can stop you in your tracks or delay your progress. The pitcher represents “life”, tossing you the ball which is the opportunity to buy. In order to succeed, you need to reach EACH base and satisfy some requirement to move forward. By the way, a HOME RUN means someone has given you a house so you do not need to do anything else.

First base:  to get here successfully, you need to get “pre-qualified” by a reputable lender to make sure that you know how to start your search. What a lender is willing to do may exceed your “comfort level” and that is fine. It does not work in reverse unless you find a real bargain. Unfortunately, some consumers will need to do some work to get to first base while others will be forced to sit on the bench, unable to buy at the moment. Knowing your situation will help you avoid wasting time. Ideally you will have hired or be in the process of selecting an agent. No matter how much sense this analogy makes, most buyers will need a trained professional to negotiate the process/ bases.

Second base:  the search is on! This is the fun part and, for many, the most time consuming and possibly the most frustrating. This is where hiring an agent really starts to pay off:  they should help you decide what you want to buy by asking questions and compelling you to make decisions. We cannot tell you where to live but we can help you narrow the choices so that you can get to see the best properties for your needs before they are off the market, sold to someone else. While looking at houses is fun for many, it can become a project in and of itself and many consumers find it difficult to make decisions. Where to live, what to buy, how much to offer and other questions must be answered! To reach third base you need to have a fully executed agreement of sale in place.

Third base:  now that you and a seller have agreed to “terms” (price, financing, contingencies and time frames), the two major aspects of getting to settlement/ closing loom large. They are the various property inspections and finalizing the mortgage approval. If you are not using mortgage financing you will probably find this phase easier. While the financing aspect depends on others, the inspection negotiation is where the principals, meaning the buyer and the seller, get to determine how serious they are about getting the deal done. I generally do not recommend waiving inspections!!! How do the results (what did the inspector(s) tell you that you did not know or expect?) compare with your expectations at the time you first saw the house, decided to make an offer and then negotiated and executed/ signed the offer? Do BOTH parties want to move forward? The inspection phase typically occurs before the mortgage is finalized so getting past this step does not automatically mean that a sale is going to close. Assuming that all of the details that need to be concluded are addressed, you move to HOME! Congratulations! Hopefully both parties are satisfied and can move on to the next phase of their lives without hesitation. That is not always the case as issues do arise after settlement.

The process leading up to and whatever happens after settlement often involve opportunities for disagreement and doubt, even in the smoothest sales. How they are managed depends on preparation and effort. You will get to re-evaluate the process from time to time so it is important to …

HIRE WISELY!

Please read my other posts at WhyAndrewWetzel.com and visit my web site AndrewWetzel.com

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