3 Things That Happen in the Real Estate Market After Labor Day

four colourful houses

Photo by Jeffrey Czum on Pexels.com

Labor Day Weekend heralds the end of summer fun and vacations for most people. It’s back to school, back to business, and goodbye to the hazy, lazy, crazy days of summer. What does this mean for our local real estate market? There are 3 things that happen as the weather cools in our region:

Buyers jump back into the market, making looking for a home a priority. With the kids back in school, parents are able to look during the day without having to juggle swim lessons and camp pick-ups. While some families may want to wait until the end of the school year to make a move, many families are ready to transition during this season. Buyers who have been on “hold” due to vacations and trips to the beach are now committed to looking full-time.

Sellers concentrate on repairs, painting, and landscaping. Taking advantage of cooler temperatures and after-work daylight hours, sellers begin to focus on sprucing up their landscaping and the exterior of their homes.

Homes are priced realistically. Sellers who have their houses on the market in the fall are “ready to go” before the snow flies. Buyers, too, want to be settled in time for the December holidays.

For all of these reasons the “Fall market” continues to be one of our favorite times to help buyers and sellers. Many real estate agents tell you that “anytime” is a good time to buy or sell, but, is it? When it’s time for you to jump into the market be sure to contact us for an overview of the current market conditions.

Sunday Open Houses or Private Showings?

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p: Enid Buzz

If you are selling, do you really want the public tromping through your house on a Sunday afternoon? If you are buying, do you really want to leave your shoes in a pile at the front door and hope no one slips into your shoes by accident on the way out? Some of the Weaver Team buyers frequent Open Houses with our approval as they are “scoping out” the area, so, they are helpful in that circumstance. Most of the time, though, beware of the pitfalls of this Sunday afternoon activity.

Based on my recent experience visiting a Sunday Open House, I now encourage buyers to call me for private showings. Bumping into other people in the hallway and stepping around toddlers in a basement rec room detracts from the overall house-viewing experience.

First, let’s look at it from the buyer perspective. Serious buyers typically sign Buyer Agent contracts with real estate agents. While most buyers say, “I will know it’s the right house when I see it,” that is just the beginning. In fact, the decision to buy property hinges on many factors including location, price, and condition. Material facts and information concerning major systems and components of the property weigh heavily in the completion of a purchase. Questions like, “Has the house been tested for radon gas?” and “What are the options for Internet?” simply cannot be answered thoroughly at an Open House.

Next, let’s look at it from the seller perspective. If you think that Facebook or Google is invading your privacy, that’s nothing compared to having the public crawling through your house unsupervised. Do you want strangers viewing your house and pawing through your linen closet and medicine cabinet? The contents of your medicine cabinets, closets, drawers, refrigerator, etc. are now exposed to random strangers. Alcohol, medication, jewelry, and small electronics provide temptation to some people, even if they look like honest, upstanding citizens.

In our opinion the “awe, c’mon in and look around” days of real estate are over. Buyers deserve more than a quick run through on a Sunday afternoon and sellers deserve more than random people pawing through their personal belongings. Reach out if you want to start the process of buying a home. We are happy to schedule private showings.

Home Inspections – The Good, the Bad, and the Ugly

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p: lasvegasrealproperty.com

If you are buying or selling a house in Chittenden County, Vermont then heed this warning, “The house may not pass a building inspection.” What do you mean, “pass an inspection?” Are inspections now pass or fail? The short answer is “yes.”

Your Purchase and Sale Contract may include an Inspection addendum, with the caveat “Inspection report shall be to Purchaser’s satisfaction.” Satisfaction? Like a Yelp review on a restaurant? Does satisfaction mean a 5-star review? Or just, yeah, okay, satisfactory, like a 3-star review. Or satisfaction like the Rolling Stones, “Can’t get no satisfaction?”

And finally, is it a case of, there are no bad inspections, just buyers with high expectations? Let’s explore.

Let’s dive into the good, a 5-star inspection. Congratulations, the house you are buying has no significant structural, mechanical, electrical or plumbing defects. You may move along toward closing, this contingency is satisfied and the purchase price on the original contract remains intact. Or, maybe the house needs some GFCIs (ground fault circuit interrupters) and a mixing valve on the hot water tank. Oh, and the smoke detectors are over 10 years old and now need to be photoelectric. As the seller you will have to sign a document that states the smoke/fire/co2 detectors meet the current electric code. Most sellers will concede to some electrical updating along with the smoke/fire/co2 detectors.

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p: thebalancesmb.com

Let’s look at a bad inspection, one that produces a laundry list of items that includes every historical leak (darn it, we knew we should have repainted the ceiling after the tub overflowed 5 years ago), creak, nail pop and flaw in the house, interior and exterior. The exterior suffers from peeling paint on the trim, curling asphalt shingles on the roof, gutters that are full of leaves and a driveway with potholes.

Now, let’s look at a plain old ugly inspection. This one has an active leak, usually a sewer pipe in the basement (don’t step in the puddle), mold (dead or alive?) in a poorly ventilated attic, and, everyone’s favorite, an old oil tank in the basement or an old furnace.

The issues that arise at inspection range from good, bad to ugly. That is why you want to hire an experienced real estate agent to walk you through the different scenarios. As a buyer, your agent can tell you which items you should ask the seller to take care of, if you should ask for money back, or if you should back out of the deal all together. As a seller, your agent will be able to advise you on which items are typically taken care of and what you can say no to.

5  Inconvenient Truths About Finding a Good Real Estate Agent

Finding a good real estate agent may not be as easy as searching Google or Yelp, read on to learn why you can’t believe everything you see on the Internet when it comes to real estate.

Screen Shot 2017-10-19 at 1.05.40 PM1.     The “Premiere Agent” on Zillow has paid to be in that #1 position. Many agents pay third party search engines to pop up at the top of the list of real estate agents in your area. This truth extends to Realtor.com, Trulia.com and Yelp.com. Many times, your top local real estate experts who provide exceptional service and results stay in business through repeat clients, past client referrals, and general “word-of-mouth” networks. Ask your colleagues, friends and family who they recommend before jumping on the internet to look for an agent.

2.     All “public” websites that provide house searches include “for sale by owner” properties. Many buyers are thrown off guard when they find out that the house listed on Realtor.com and other real estate websites may not necessarily be offered through a real estate agency. Buyer beware as dealing directly with the owner may result in a “lopsided” transaction where the buyer is not aware of traditional real estate practices in their local area and many times is at a disadvantage dealing with the seller.

Screen Shot 2017-10-19 at 1.34.09 PM3.     Internet sites that promote “We will match you with a Top Agent” usually send your information to several agents that have signed up for that websites services. These agents scramble to be the “first” to contact you and the agents pay a hefty “finder” fee to the service.

4.     Reviews may not tell the whole story about an agent. While it’s interesting to read the 5 star reviews, sometimes when you see a “plethora” of them you may need to ask “Why are there so many reviews for this one agent?” There are no rules or regulations governing the procurement of these reviews from previous customers. Let that sink in.

5.     Sometimes your “marquee agents” burn and churn their clients. Again, the agents that pay to show up on searches may not be the type of agent that you are looking for. Many so-called “top” producing agents are working with multiple agents on their team who are doing most of the work with the buyers and sellers. You may not have access to the “top agent” at all.

 

Specialist or General Practitioner?

19437377_1440448489379498_3950650927319035020_nDo you need to hire a “specialist” or do you need a “general practitioner” when assessing the best real estate agent when you are looking to jump into the real estate market as a buyer or seller?

If you come across a real estate agent that is touting themselves as a “specialist” here’s what you need to ask:

“I see you are a ‘Listing Specialist’ do you ever take buyers out to look at homes?”

“I see you are a ‘Buyer Specialist’ do you ever list homes and meet sellers?”

If the answer is no, then proceed with caution. The only way you can “specialize” in today’s real estate market is to understand the market from the buyer’s and seller’s unique perspectives, rarely do these overlap.

As a “general practitioner” I work with both buyers and sellers. The combination of meeting with sellers for listings and taking buyers on home buying tours invites a unique perspective on the whole marketplace, not just a segment.

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P: msrealtors.org

If you don’t take buyers to see houses, how do you know how houses compare to each other in your local market? Likewise, if you don’t counsel sellers on pre-marketing strategies, how do you know the best way to position their house in the market compared to other houses you have taken buyers to see? The short answer is – you don’t! You don’t know how houses compare in your local market place unless you are “all over” the market in terms of buyers and sellers.

Instead of a “specialist” you need a general real estate practitioner. Much like a family doctor who sees a wide range of maladies, your general real estate practitioner deals with the whole market, buyers and sellers. At the core of a general real estate practitioner, one who deals with buyers and sellers, is a true “specialist.”

 

Who Finds the House, Anyway?

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P: Realtor.com

When I first meet with buyers they ask, “Why do I need a real estate agent if I find the house?” They also show me the various apps they are using to search – Realtor.com, Zillow, etc. This is a good question, and one that many in the industry ponder. You enter your criteria on these websites, wait all day for your phone to ping, ring, or buzz, and then you contact your agent for a showing. Sounds easy, right?

After about three of these pop up showings, buyers tend to get discouraged. “But it looked so much better in photos,” and “I didn’t know that the neighbor had pit bulls until we drove up to the house,” are just some of the disappointments that befall the buyer.

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P: libn.com

And, to add to more stress and discouragement, some houses that pop up on your phone are not actually available to see as they may already be under contract with another, more fortunate buyer. Or, so the buyers think.

These scenarios occur when a buyer is “chasing the market.” You need to get ahead of the market by working with an experienced, professional real estate agent that knows the local market inside and out.

In fact, the house you are looking for is most likely going to be brought to your attention by your agent.

Since real estate expertise is something accumulated over years of going in and out of houses, townhouses, condos, and neighborhoods on a daily basis, it’s safe to say that an experienced agent will be able to find you a house that meets your needs.

Property MapOnce I know what you are looking for, I can “edit” the list of potential homes and hone in quickly on prime candidates. After we see a few houses together I will be able to figure out what will be ideal. What does that mean to you? It means you can relax. Don’t jump every time Zillow sends a notification. While it may meet your Zillow criteria, it may not meet your other wants and needs.

I only take on a few buyers at a time to give exceptional service and “house finding” expertise. Is the perfect house on the internet? Maybe, but an experienced agent will keep you “ahead” of the market, which is preferable to “chasing” the houses.