Ellicott City Realtor Catonsville Realtor

Sometimes I Have to Ask Myself....Am I a Realtor, or a Therapist?  I'm working with a young couple, first time buyers, about to get married.  I will call them Abby and Charles*.  We're sitting down at our first appointment and I am explaining the Home Buying Process.

The first question I always ask my clients is "What's Most Important to You?", and the second question I always ask is "How do you make decisions?"  When I ask this of my two young clients, they took a moment to look at each other, then looked back at me and replied in unison "I don't know."

So, I take a moment to ask them how did it work the last time they made a big purchase together, such as with their car?  Again, they took a moment to look at each other, then looked back at me, and again in unison, "I don't know."

Since the first question I had asked was "What's Most Important to You", I knew they were on the same page with the big things - they both wanted to be near good schools, in a good location and have an easy commute.  For Abby, this was clearly Catonsville.  For Charles, it was obviously Elkridge.  It was clear to me that although they had talked about buying a home, they had not come to a conclusion on the specifics.  On this one point, they simply didn't agree.

So, time to put on the Therapist's Hat.  I ask Charles what's important about Elkridge to him?  He replies that his family lives there, he cuts his grandmother's lawn on Saturdays, he has a new godchild that lives there in a neighborhood he finds appealing, and it's a close commute to downtown.  Abby's reply to this?  "I didn't know how important those things were to you."  I then asked Charles how flexible he could be in his choice of location, on a scale of 1 - 10.  He replied that he was willing to be flexible, as long as it wasn't too far.

I then repeated the process with Abby.  After listening to my conversation with Charles, although she really liked Catonsville, she seemed to be just as flexible.

I always go through this process with my buyers.  I find out what's most important to them, how they make decisions, and what they've talked about amongst themselves.  It was obvious that Abby and Charles had talked about buying a home, but not about what was most important to each of them.  In talking about it in my office, before we looked at homes, and before emotions ran high, hopefully it will be easier for Abby and Charles to make a decision down the road.

So is it Real Estate, or Therapy?  Perhaps a little bit of both.  In the end, as long as Abby and Charles are happily settled in their first home, I don't really care what you call it.

*Although my buyers have agreed to share their story, their names have been changed for privacy purposes.

All the Reasons NOT to Buy This House - Does Your Agent REALLY know what you're looking for?

After we show a house here in our Maryland home market, we receive an automatic form to send back our Buyer's feedback on the property to the Seller's Agent.  This information is invaluable as it helps the Seller stay on top of marketing their home.

The questions that are included in the automatic response form are:

•             Is the customer interested in the property?
•             How well did the property show?
•             Your (and the customer's) opinion of the price?
•             Please rate this property:  (scale of 1-10)
•             Comments and Recommendations

Feedback from one of my listings from this past weekend showed that the Buyer was somewhat interested in the property, that the home showed ‘Excellent', that the home rated as an 8, and that the price was too high.

If the price is too high...why not make an offer for the amount that seems reasonable?  At what price does a Buyer go from "somewhat" interested to "very" interested?  This has me questioning if the Buyer's agent really knows what the Buyer is looking for.

Buyers - if you are working with an agent, are they asking you questions?  Are they asking you why you want to buy a house?  Are they asking you why you want to buy a house now?  Are they asking what's most important to you?  When you tell them that the price seems a little high, are they showing you the comparable sales of area homes?  Maybe the comparable sales support your opinion, or maybe the comparable sales support the price, but are you at least getting the information from your Agent?

An Agent can show properties all day long and help Buyers come up with reasons not to purchase a home.  No home on the market is a "Perfect 10", priced cheap, move in ready and in a dream location.  That home just doesn't exist.

When I work with Buyers, I find out what matters most to them.  And not just 3 Bedrooms and 2 Bathrooms, but bigger things.  Things like living near parents, or having a short commute to work, or being in a certain school district.  Things that aren't going to show up on a computerized property search.

Once I know what matters to my Buyers, I try to find them the homes that satisfy their needs.  When we find a home together that seems like a good fit, we look at comparable sales, the condition of the property, the location, and their list of what's most important, and write an offer that makes sense.

I could certainly help my Buyers come up with reasons NOT to buy a house, and I could continue to show them homes all day long.  That's pretty easy.  Helping Buyers identify and achieve their goals?  Much harder.

In the end, though, it's well worth the effort.

photo courtesy of:

Run, Don't Walk - Working with a Realtor and What You Should (and Should Not) Expect.  I'm a Realtor.  This means that I'm licensed in the state of Maryland as a Real Estate Agent, but also that I am a member of the leading trade organization for real estate agents, the National Association of Realtors (NAR).  A licensed real estate agent or broker is not necessarily a member of the NAR.  Realtors are pledged to a strict Code of Ethics and Standards of Practice.

While you don't have to use me or any other Realtor to purchase a home, using a good Realtor can be helpful.  Here's a breakdown of what a Realtor should (and should not) be able to do:

• A good Realtor will help you learn about the factual history of a home.  A good Realtor will not tell you which home to buy.
• A good Realtor will help you learn about the benefits and drawbacks of a neighborhood.  A good Realtor will not tell you which neighborhood you should live in - that's YOUR decision!
• A good Realtor will help with determining a fair value for homes.  A good Realtor will not tell you what you want to hear.
• A good Realtor will help in locating an experienced and reputable lender.  A good Realtor will not let you find a loan on the internet.
• A good Realtor will explain your agreement of sale and all of its clauses and conditions.  A good Realtor will not tell you to just sign here.
• A good Realtor will help when negotiating the conditions of a sale.  A good Realtor will not lose sight of your goals.
• A good Realtor will help with inspection and contingency issues.  A good Realtor will not tell you that the leaking water heater is no big deal.

Realtors are Resources, Not Decision-Makers.  Great Realtors will educate you, but will never try to make decisions for you.  Use their knowledge, but make your own choices.

If a Realtor tries to pressure you into a decision, run the other way.

I sat down with first time buyers last night.  After I scheduled the appointment, when I thought about it, I

I realized that I hadn't met with first time buyers in a long time.  I do a lot of listings and move-up buyers, so my clients in general have been through the process and understand how it all goes.

As I planned my presentation, I started to remember what it was like to know nothing about Real Estate or Real Estate transactions, and what that felt like.  I was reminded of when I bought my first house, without representation, without a Realtor.  I didn't have the benefit of the help and guidance of an experienced professional.  I made it through, but I thought I was getting a really great deal.  It turns out that it was just ok.

You may have heard that in the entire body of knowledge, there are things you realize you know, and there are things you realize you don't know, but there's a huge amount of information that you don't realize that you don't know.  This is especially true for Real Estate.

First time buyers will admit that there's a lot that they don't know.  And there's a wealth of information available on the internet for them to educate themselves.  For example, last night, as I was explaining the basics of financing, my Buyers wanted to know what points were (and no, this isn't just a loan officer's job to explain).  This was something for which they could have easily just looked up the definition.  I'm glad they didn't, though.

It's up to us as Realtors to explain the things that Buyer's don't realize that they don't know.  So I did explain to my Buyers what points were, but more importantly, I explained to my Buyers how they might use this information to their benefit in the negotiating process.  I could tell by the expression on their face that having the information and being able to use it to their benefit would make all the difference in their confidence in my ability to guide them through the transaction.

Have you ever had a situation where you came up short of reaching your goal because of something you didn't realize you didn't know?

My last post was about Discount Brokers (DB's), and the question of whether the service they provide is worth the reduction of services.  My Buyers have a house under contract, and so far have spend nearly $1000 on their Home Inspection, their Termite Inspection and a Well and Septic Inspection.  The contract on the home they were selling settled yesterday, and the new house settles on November 30.

If you recall, the Discount Broker thought the appraisal was done...but it wasn't.  This week, I checked with the DB on Monday to see if the appraisal had been completed.  He told me yes, it had been done on Friday.  I asked the DB for the name and phone number of the appraiser, so that I could get a value as soon as possible.  The DB replied that he did not have the appraiser's name and phone number because she called him while he was in his car and he just gave her the phone number of the sellers so she could make her own appointment.

(My big push on this is that my Buyers no longer have a place to live in 15 days.  I want to know the value to move accordingly.)

The DB replied he had been too busy to meet with the appraiser.  As you can imagine, the appraisal came back $45,000 below the sales price - a huge divide between the price the Seller would hope to get and the price he is able to get, according to the Bank.

The DB was shocked by this number.  I told him that information wasn't any good if he didn't get it to the appraiser for reference.  I told him that my Buyers would request that the sales price be reduced to the appraised price.  My Buyers have no additional proceeds to work with.

Could this have been avoided?  Maybe, maybe not.  What I do know, is that if the DB had made the appointment for the appraiser, had met her in person with comps and a location survey, had a professional rapport with her, that the outcome may have come out differently.  These are all things that full service Realtors typically do, and if he had done them I certainly would have felt that his best effort had been made.

So what about the Buyers and Sellers - did the Seller get what they paid for?  Probably.  Is there a price to pay for saving money?  Absolutely.  My Buyers house is sold and settled yesterday.  They have to be out in 12 days.

Now I get to deal with all the Buyers emotions and worries.  They need at minimum a place to rent quickly.  Service Service Service.  How do you think they would feel if I said "that's not something I do" or "I'm just too busy".  Doesn't that just translate into "It's not worth my time"?  Glad I have a better conscience and my Buyers and Sellers know that they can rely on me - no matter what.