What happens if the house you want to buy does not "appraise", and you can't get a loan because of it?

The bank sends an appraiser out to a property to ensure it is worth the amount you are willing to pay. Consider it an additional unbiased  check on the value. If you require a $500,000 mortgage on a property that is deemed to only be worth $500,000, the bank may  not give you a loan (It would be considered 100% financing) The bank looks at lending  money that is secured on a property as an investment. There would be no equity in the house on that particular scenario, and in case of a default, the bank would have a hard time recouping its investment.

Three  things can happen in this instance. The seller can reduce his price to what the bank feels that its worth. The buyer can put more of a deposit down, or the buyer can walk away from the transaction, with no penalties. Incidentally, there would be no penalty for the seller, either.

Sometimes, if and when an instance like this occurs, the seller may opt to hire an independent appraiser (that is certified through the buyers bank) for another opinion. Appaisers sometimes make mistakes, too- but don't worry too much about this- it's a rare occurrence these days. Years ago, buyers were not represented by agents. All realtors worked for the seller, even if they wrote an offer for the buyer. With buyer representation, the contracted agent holds a fiduciary relationship with the buyer. Justr another good reason to hire an agent to represent you in yuor purchase

How many "For sale by owner" (FSBO) listings are there in each town?

That's an interesting question. Not all FSBO listings are easily found on the internet, and If you are considering selling your home by yourself, you probably already know that some of the bigger FSBO sites charge buyers a fee to look on their site to see YOUR listing. Hmmm, that's some racket!

I did a search of homes for sale in CT and guess how many results google search yielded? Over 54 MILLION!!! in less than 2 seconds, no less. Now there are only somewhere between 1.3 and 1.5 million households in Connecticut, depending on who you rely on for these numbers, so where does that HUGE number come from? It's mathematically impossible!

Why are those numbers so askew? There are some sites that have listings that are so old, the homes have been bought and sold and bought and sold yet again. This week, I got an e-mail from a buyer who found one of my listings on Trulia. She contacted me and wanted to see it because she assumed it was available, and it wasn't. It's my own listing that is still being advertised that is no longer for sale, and I can't even change it in their system- and I'm not just singling out one site. I have had people contact me from a Homes.com listing that was as much as two years old. I have no answer for that, it would be nice if these aggregator sites would update their feeds. I think the problem is that these homes for sale come up as individual search results, so one property can have as many as 15 or more entries in google. There is no time limit on the search results, and that's why over 54 milion homes came up on that search.

So how do you as an owner trying to sell your home by yourself get your home found on the internet among all of these other homes that are (or were) on the market? And how do you, as a buyer, find sites with current real estate listings and information? If you are buying or selling, meet with a Realtor, get the most up to date information, and have an agent represent your interests.

What you should expect from your Real Estate Agent, and how important is it to you?

I came across a survey  a few days ago that resonated with me, and I wanted to share it with you. It's what home buyers and sellers expect from their agent, by level of importance.  I nearly fell off my chair when I read some of the numbers. EXPECT MORE FROM YOUR AGENT, PERIOD! I'll tell you a story...

Just yesterday, I received a call from a past seller client who moved out of state,  and she called me to get a referral for an agent in her area to sell her home. So I looked on the internet for  local real estate sites, I checked realtor.com to see which company was listing what, and what that company's  average listing prices were until I had found a few  that could be in the running.

As you know, I am affiliated with RE/MAX, and there was a RE/MAX office in her area, but I didn't see that to be a good match for her needs. That's rare, but it happens.  After reviewing the company websites, I found one firm that stood out to me, so I called, spoke with the Office manager, and described the type of agent that  I was looking for to assist my past client.  Well she gave me somebody alright, WHOA! The agent called me up, Ms. Gum-chomper, and a baby was crying in the background. That agent bragged about how wonderful she was, and all I could think of is that the only person she's trying to convince of how good she is, is HERSELF!

That was a BIG no-no in my book. So I called the manager and said, (in a very pleasant manner) that the agent did not seem like a good fit for my client, and could she please have someone else call me. The manager did ask why I felt that way, and I was frank- I told her that the agent sounded a bit brash, there was a baby crying in the background, and it just didn't seem professional to me.  The agent called me back to tell me that the child wasn't hers, but in fact, it was her clients, and she was out showing a client around when she called me. THREE wrong things with that picture. Out with a client and not giving full attention to that client, calling someone else in front of that client, and driving and talking with a BABY in the car. Ok, fast forward...

I got another agent that was just perfect! and for that I am happy. Now, after that long story (sorry) it leads me to this survey taken by the National Association of REALTORS (NAR). NAR recently published their annual Profile of Buyers and Sellers. In it, there was a survey about what buyers and sellers deemed important skills that their agent ought to have. The results may surprise you, depending on how you look at that figures compiled. If you look at the chart below, it represents the percentage of importance placed by the  respondents on a particular aspect of real estate.  Just to be clear, this is an excerpt, and not the entire poll, which was broken down further by marriage status and gender, although the numbers are still similar.

The numbers that surprised me most were negotiation skills, people skills, and technology skills, because as a Realtor I think that these skills are also very important.

That agent had poor people skills, evidenced  by her disrespect to her client, and for me, for that matter. She didn't have a personal website, either. That doesn't cut the mustard with me,  and it shouldn't with a buyer or seller either. I think that a lot of these skillsets mentioned should rate a lot higher, and buyers and sellers hould expect more from their agent. When  I put my name on something, it BETTER be good, period, and all agents  should set the highest standard for themselves and their clients as possible.



Don't worry about hurting your Realtor's feelings. Tell them what you think!

It's a beautiful day, and you go house-hunting with your real estate agent. He/she shows you a number of houses. Some are just okay, but there are some houses that you really don't like. Instead of telling your agent what you don't like about some of  the houses you just saw, you just don't say anything.

When you go into a house and you don't like the style, for example, you really should voice your opinion, whether it's asked of you or not, or your agent will show you that style again and again, not realizing that you don't care for it. Your realtor doesn't (or shouldn't)  take the rejection of these houses personally.

Not being vocal doesn't help you or your agent in the long run. What you don't like about a house  is just as important to know as what you DO like and want in a home.  It is important that you tell your agent the good and the bad about each house, so he/she can tailor your home criteria accordingly. Write it down on the MLS property sheet at the end of each showing, if you need to, and discuss it on the way to the next house. Don't wait until the end of the day- each house's features can become a blur.

As always in real estate, communication is Key.


Real Estate Closing Disasters, and how to avoid them.

Buying or selling a home is a very emotional experience for many people. Everything can appear to go smoothly  during the negotiations, but  when you go to the closing table, it seems that the Dr. Jekyll /Mr. Hyde buyer or seller comes out. What exactly just happened?

It's either a lack of communication that causes the last minute closing debacles, or quite frankly, it's someone's ego. It  doesn't have to be intentional, and many times it isn't. What may be very important to you is not as important to someone else. When you find out some tidbit of information just prior to the closing, when emotions run high, it's not unreasonable on your part to get upset,  especially when you feel that you should have known something previously. And yes, sometimes, it just feels malicious.

Yes, there are laws in Connecticut about disclosure, and I have found it very rare for something of extreme legal importance not to be disclosed. I'm talking about what was supposed to stay, what was supposed to be gone, what all of a sudden doesn't work, who doesn't have the funds wired into their account, etc. etc.

All the more reason to hire a professional and  experienced real estate agent  to represent you. I have talked to countless buyers and sellers who had purchased a home without the expertise, guidance, and negotiating skills  of a real estate professional,  and they ALL say that they would never go it alone EVER again. Yes, these last minute snags can happen when you are working with an agent, but that agent also acts as an intermediary on your behalf. What can easily blow up a deal without intervention, can be handled quite readily by a competent Realtor. And I just happen to know someone!