In the last few years I’ve noticed much of the public has lost respect for Realtors and view them as overpaid “salespeople” that get a lot of money for simply showing a house or two and writing up a simple contract. For some, that perception will never change simply because they see it as a simple process, much like buying a car.

Much of the blame however, falls on agents that aren’t doing their job and providing a genuine professional service. They simply email listings to clients, and when the client wants to view one of the listings they meet them there, unlock the door, and proceed to tell them what a great deal it is (even when it’s not) and point out all the nice features of the house. They then keep their fingers crossed and pray the client will want it.

A good agent know his/her market; they go to several (5-9) Brokers Opens at least once a week or more; they take notes, and the evaluate the homes and the price its listed at. Over time, a good agent will have an inventory of listings in his head and book that would amaze you. By looking at assessed values of properties, and the most recent sale price of dozens of homes in various neighborhoods, one can calculate the percentage above the assessed value homes are selling for in their area. Then that agent will know by doing the math what homes are worth when listing a home, or assisting clients in arriving at an offer price.

Agents should know what various homes were listed at, sold for, and how much over the assessed value that figure was. For example, some areas may be averaging sales of 1.7% above their tax-assessed value, while other areas are averaging 1.4%. To know what homes are comparable to, you need to have seen many homes in that same area (with your own two eye’s). Then when you tell your agent what you’re looking for, they can say “I know just the house” or better yet, have two or three homes that they have personally seen and can show you. Sadly, many agents never bother viewing homes unless a client wants to see it.

Obviously an agent can’t see every home on the market, but he or she should have a book with a hundred or more homes that they’re tracking sales of. By doing this, an agent is prepared to give real advice to clients when they need it. When an agent is asked, “how much should I list my home for?”, or “What would you suggest we offer?”, the agent should be able to answer with confidence, and that answer should be rooted in solid research and hard work; not some number that was derived from a “Zillow” or MLS program.

When showing homes, a good agent will bring the homes deficiencies to your attention, not remain quite and hope you don’t notice them. If the agent merely stands there and tells you how pretty the floor is and how nice the kitchen is, then yes, they are a salesperson and not an agent representing your interest.

As a client, you don’t need an agent to confirm how pretty the floor is, and how nice the kitchen is. You need and deserve a skilled professional to walk through that house and point out any problems they see and give you a fair assessment of the homes value. In today’s market, you must be leery of overpaying for any home. You may later find it’s hard to sell without losing money because of something that wasn’t brought to your attention at the time you purchased it (when it should have been).

You can’t rely solely on Inspectors and Appraisers; it’s your agent’s duty to provide you with a professional service, and to protect your best interest. Even if it means they don’t make a sale that day (especially then).

Of course, if you choose to disregard your agent’s advice and make the purchase anyway, or list the house at a price you prefer, that’s perfectly fine. I’m certainly not saying an agent is going to always be right even with all their research to back-up their evaluation; but they do need to do their very best at giving you the advantage of having a professional opinion to rely upon when needed. That’s their job.

Find the agent that does these things, and you have a qualified, skilled, and professional agent that is worthy of the paycheck they will receive.

Realtors, salespeople, email listings, Brokers, agent, homes, MLS

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Tags: Agents, property evaluation, Realtors

• It looks like pending foreclosures from adjustable rate mortgages are affecting lower income people more then the rich, explains Al Tompkins at Poynter Online. Tompkins looks at recent stories in the St. Petersburg Times (Florida) and Winston-Salem Journal (N.C.) which illustrate this quite clearly.
• Black homeownership is falling in Louisville, Kentucky according the the US Census Bureau, reports the Courier-Journal.
  
  Here are some stats about the Louisville metro market that will blow your mind:

  39 percent of Black households owned their homes last year
  75 percent of White households owned their homes last year
  38 percent of Hispanic households owned their homes last year

  The interesting fact is that five years ago, black ownership was at 40 percent and hispanic ownership was at a low 26 percent. The big question is - Why are these two groups moving in different directions?

• In another report about the recent census, USA Today discusses how the cost to be in a home rose since last census in 2000, while incomes fell, making it much moore difficult to afford to rent or buy a home. “From 2000 to 2005, median home values surged 32%, fueling a consumer boom as homeowners tapped into this wealth. But the sharp rise in home values also boosted the monthly cost to own a home 5%, and to rent one 6.7% . . . The national median income adjusted for inflation was $47,599 in 2000. It dipped to $46,326 in 2005, according to the data.”
• Between 2002 and 2004, the number of Realtors climbed 26%, and today there are over 1.2 million. CNNMoney today covered how it is becoming increasingly difficult for many people to make a living working full time as a real estate agent.

Tags: agent, ARM, census, estate, Foreclosures, home, homeowners, Mortgages, ownership, poor, real, realestate, Realtors

Pending home sales data for August was just released by the National Association of Realtors. According to the Pending Home Sales Index, “contracts signed in August, rose 4.3 percent to a level of 110.1 from a reading of 105.6 in July, but is 14.1 percent lower than August 2005.”

David Lereah, chief economist of the National Association of Realtors, said that the over supply of homes for sale in the US should be drawn down as the inventory of new homes coming on the market slows.

Just to clarify - homes are considered pending once entered into contract, and stay pending until the sale is closed. Pending home sales is often used to measure the health of the housing market.

Tags: association, home, housing, index, NAR, national, of, pending, Realtors, sales

The National Association of Realtors today reported that the median home price in the US fell in August to $225,000 down 1.7% from August of 2005. This is the first time a year over year decline in median home prices has occured since April 1995.

According to The New York Times: “David Lereah, chief economist of the association, said he expects prices to continue to fall. “We do expect an adjustment in home prices to last several months, as we work through a buildup in the inventory of homes on the market,” he said in a written statement. “This is the price correction we’ve been expecting — with sales stabilizing, we should go back to positive price growth early next year.”

At the end of August, there were enough unsold, previously owned homes on the market that it would take 7½ months to sell them all at the current sales pace. The association said that was a bigger backlog than at any time since April 1993.”

Hear that? That quiet hissing sound you’re hearing seems like the beginning of a deflating bubble . . .

Tags: association, bubble, home, median, national, prices, Realtors

After a long day of rest, I’ve emerged from my sports cocoon to bring you my Sunday wrap up. I’d like to first congratulate Tiger Woods for his 4th straight tournament win, and I want to wish Andre Agassi good luck in the final tournament of his career. Ok . . . back to real estate.

- Here is a sad case of irony:
The Boston Globe covered the story of Jose Felipe, whose credit was destroyed by a mortgage consultant who used his name and social security number.

“Some brokerage firms, which promise borrowers “100 percent financing” and “guaranteed home ownership,” operate without required state licenses. And because the state licenses mortgage companies and their owners, and not the loan officers who work for them, it is difficult for consumers to check the record of an individual officer. In contrast, the state has a website where consumers can easily review the licenses and disciplinary records of dozens of other professionals, including accountants, veterinarians, and manicurists.”

So the state of Masachusetts lets you check up on the lady who does your nails, but not on the guy who has complete access to all of your personal financial records. SAD!

- In Arkansas, Senator Kim Hendren said “he will try again in the 2007 state legislative session to reform the state’s statutory foreclosure procedures. Reform is needed since foreclosure situations are apparently becoming more common, he said.” Isn’t it great how proactive our leaders are? Now that the market is topping over again, the lawmakers start to notice. Where was Senator Hendren when the local sheriff was buying his $1 million mansion for no money down? Who was protecting the homeowner back then?

After a year of passing blame, confusion, elections, and general chaos, the city of New Orleans is setting a deadline for gutting and cleaning up homes damaged from Hurricane Katrina.

“City officials have set Tuesday the storm’s first anniversary as the deadline for homeowners to gut or otherwise clean up their properties. Landry is among those hoping the deadline will spur a cleanup that will lead to more redevelopment and repopulation after the exodus that followed Katrina. “The city needs to do what it needs to do,” councilman Arnie Fielkow, who helped push the ordinance setting the deadline, said at a meeting Friday. People who don’t comply with the deadline after being put on notice face a range of possible penalties, from liens being placed on their property to the seizure or destruction of homes.”

Exceptions to the deadline include residents of the Lower Ninth Ward, and those with an “acceptable” excuse. The city needs to set a deadline, or things will go on forever, but the government needs to step in and help all the people who are left to fend for themselves against the insurance companies who find any reason not to pay a claim.

- I just read a staggering piece of information from Black Enterprise: “Membership in the National Association of Realtors has increased by 75 percent in the last 10 years. The number of real-estate agents in the United States increased by 26 percent between 2003 and 2005 and 40 percent over the last five years to about 2.5 million.” I wonder what that number will look like as things settle down. Anyone?

- I’ll close with a peek at a nice little piece from REIBlog.com, listing Best Rules for Your Success in Income Real Estate. The list includes advice like “Have strict rules for your tenants” and “Keep accurate records.” While most of the points are fairly obvious to the seasoned investor, it is a good start for newbies.

Until next time . . .

Tags: foreclosure, fraud, gut, gutting, katrina, lower-ninth-ward, mortgagefraud, neworleans, Realtors, reform, tenants