Uncategorized • September 25, 2017

GET A YOB!

by Jeffrey Halpern

With the real estate market in full swing there are many new Realtors coming into the business or any type of independent business.

It is time, as many people have discovered, to get out of the job mindset and think of a YOB. (Your Own Business). The possibilities are endless but you need to investigate what best suits you. There are plenty of techie consultants but more are needed, web-based at home businesses, catering, opening a shop, multi-level marketing, etc. But what is best for you?

The difference between a job and a YOB is the difference between a ceiling and the sky being the limit. But the YOB takes time to plan, a YOB takes hard work and a YOB takes self-discipline. To be successful at your YOB it takes PASSION for what you are doing and understand WHY you are doing it.

Consider becoming a New Jersey Licensed Real Estate Sales-Associate. For the right person, this could be the perfect, and it may be the least expensive, (approx $1k per annum between license, Realtor, MLS, etc. fees), way to start a business. And even though you are working under the roof of a real estate company, it really is a YOB. Clients do not hire you because of the company you work for, they hire you because of you and what value you bring to them. There is very little overhead, it is a profession occupation, and most importantly, it is a YOB that you will know in 6 months whether or not you are right for it. If the business is not for you then at least you have not invested a lot of time and therefore can go another direction.

If it is for you, it is the perfect time to start. The summer is relatively a slower season for transactions but a great time to attain your NJ Real Estate License, learn the business through training, mentoring, and coaching, as well as developing a lead generation system. This will prepare you for the fall market and prime you for beyond. And by all indications, the market will improve the second half of this year and continue to get better. If you develop a passion for the business, there is no better business to own. There is no income ceiling, and more so, you are helping people realize their dream of homeownership.

The process to obtain your real estate license is as follows:

1. Go to a state certified real estate school and attend 75 hrs of required classes. (The cost is approximately $400. with some real estate companies offering reimbursement programs if you join them)

2. Take the school exam and pass.

3. Be fingerprinted.

4. Take the state exam and pass it. (You have a year from the completion date of school and you can take it as many times as you can to pass it within that year)

My only advice is to not come in the business to “try it”. You will not make it. As a matter of fact, and I am probably going against what your parents have told you, but this is what I tell my children. You never try anything. If you try it, you will fail at it. Just think of when you drop a pencil, do you try to pick it up? In anything you do, you either do it or don’t. If you do it and do not succeed at it, never consider it a failure but as a learning experience and you gave it your all. Plus, you can stay active as a referral agent and continue to receive fees. Conversely, if you do it and succeed, there is nothing better than helping people find the home of their dream while earning a terrific income

For more information on a real estate career or bringing your current real estate career to the next level, contact Jeffrey David Halpern at Jeffrey.halpern@randrealty.com.

Uncategorized • June 23, 2017

At the crossroads of your real estate career?

by Jeffrey Halpern

Another year has ended. You have received your invoices for next year. (i.e. Realtor dues, MLS dues, E&O dues, etc) Evaluated the money you spent vs. the money you earned. You determine whether the passion is still there or if it ever was. And you say to yourself, “SHOULD I STAY OR SHOULD I GO?”

This is a question nearly every Realtor asks themselves at the end of every year. The answer may be easier than you think with a quick analyzation of where you are in your real estate career. Let us look at some points to consider:

1. How much money did I make? Sure you may have made some large commissions on one or two transactions, but look at the number of transactions you made. Was it less than five, and if so, if the price point and/or commission rate of your market area is reduce or the even by just 10% and you did the same number of transactions, can you afford to live on 10% less. And you know that your expenses will not be reduced.

2. Is my lifestyle or business winding down? If you are contemplating retirement and you are just living on past customers, you can be in this business forever, but is it really what you want?

3. As a part-timer, do I really do not have time to service my clients? Without a doubt, buyers and sellers deserve, no, require, a full-time agent in this most important life-changing decision.

4. Do I still have a passion for the business? Passion is the key to success in anything one does, but especially in real estate.

5. Do I have a business plan for next year or will I continue to take business as it comes? If there is no plan, there is no business.

6. Can I take my business to another level? It all starts with re-inventing your real estate business through business and social networking, and if you are willing to “get it”.

There are probably many other questions you need to ask and answer, as well as the the possibility of having your license sent back to the Real Estate Commission. This, in turn, prohibits you from earning any commission dollars from those you have worked with and those who you know may buy or sell, ever, and requires you to start all over again (licensing schooling and testing) if you decide to re-enter the industry.

Consider placing your license in referral status. It keeps your license active to refer buyers and sellers to a full-time Realtor, while still earning a commission for the referral. It allows you to move on with your life whether with a new career or an easy retirement and again earning an income.

But if it is time to go, then it is time to go – but not completely. Do not hang onto a career that just doesn’t work for you in the capacity you are in now. Save the hundreds if not thousand of dollars in expenses to you. And do not prolong what the inevitable is anyway. And most of all don’t think that you failed, you are just taking a different direction in the business to allow you to do other things. You still will have the network, you still have the capacity to help those in need of housing, and most importantly, you can still earn a referral fee that if you work it right, can make you a good source of secondary income with very little expense. As a referral agent you are still in the business without being in the business.

Uncategorized • June 23, 2017

The best month to sell your home is……..

by Jeffrey Halpern

I have been wracking my brain as to what to write this week in my blog and the other day, Mitch, a friend of mine, asked me which month is the best month to sell. Although he asked it with a little sarcastic grin as there really is no good or bad month to sell, it inspired me to give you the Realtor’s reasoning as to why to list “that” month of the year.

January. Many relocations happen in January as companies budgets begin January 1 and therefore they know whether they will be bringing employees in or shipping them out. Also, if your new year’s resolution includes moving on, why not in January. Just remember as opposed to the losing wait and joining a gym resolution, once your house sells you cannot go back on that resolution.

February. Because most sellers wait for the “spring market” to list their home, by listing in this month a seller gets a jump on the competition and possibly sell their home for slightly more than in the nexst few months, as Economics 101 tells us that a smaller supply increases demand. It also gives the seller a wide choice of home to purchase in March after their home sells.

March. The “spring market” is upon us. The weather is certainly better and more buyers are looking and therefore a better chance to sell your home and a bigger selection of homes the seller can choose from.

April. The “spring market” is in full bloom and buyers are buying and sellers are selling. Usually this month has the most activity.

May. If all holds true, the April showers brought May flowers and the home is full of color. The weather is perfect and buyers are motivated because they want to be in during the summer.

June. High school and college graduations and parents now contemplating their move to a smaller residence and buyers want to buy before summer vacations begin and to close before the upcoming school year based on an average 60-day contract to close timeline.
July. Home sellers have sold their homes during the spring market and now are desperate to buy a home. Also the school year is even closer and you certainly want the kids to be in their classrooms on time.

August. If a home is not sold, they will be re-positioning their prices to be put in line with what buyers are willing to pay and buyers, using an astute Realtor, recognize it and jump on it. And being in contract, most school systems will allow a student begin their school year in their new location.

September. The weather is still nice and buyers have the chance to really explore homes without dragging their kids to look with them. More than likely, the local buyers (ones that already live in area) will be staying around. And it also gives the empty nesters the ability to buy without worrying about schools.

October. Buyers who want to get in before the winter always look and buy at this time. With the leaves changing their colors, the beauty of fall gives the buyer a whole different perspective on the look of the home.

November & December. I combine these two months for they include the same reasons. Although less in numbers, buyers looking in these two months are the most motivated. They need to buy or they would not bother looking during the holidays and they want to be in by the beginning of the next year. It is also the time when the house looks its best between the holiday decorations of the home, the neighborhood and the community.

So the question I answered for Mitch was not as elaborate as above, but much simpler. The best month to list a home for sale is when the seller lists their home for sale – upon need or desire. There are buyers all year round. The secret to selling any home is marketing, merchandising and pricing, to a market that is ready, willing and able to buy at that time. And interviewing and choosing a Realtor who can best assist you in achieving your goals just makes it that much easier.

What’s your home worth? Get you FREE jeffstimate here.

Uncategorized • June 23, 2017

BONA FIDE BEAUTY in Mountain Lakes

by Jeffrey Halpern

OPEN HOUSE, Sunday (6/25) 1-4

Sitting on beautifully professionally landscaped grounds, a gorgeous six (6) bedroom, three and one half (3.5) bath, Hapgood Colonial abounds in prestigious Mountain Lakes.

As you drive up the circular driveway you will be enamored by the style of this circa 1912 residence with its inviting and wide entry concrete stairway as it leads up to the large open/covered porch with plaque of its builder/architectural authenticity.

As you enter the front doorway you will be awed by home’s extensive use of crafted woodwork and inlaid hardwood flooring artistically designed through the welcoming Foyer, spacious Living Room and Formal Dining Room. Within the living room you will find the front side of the double-sided fireplace as its focal point with doors on each side that allows access into the bright and airy 29’ Family Room that also completes the second side of the aforementioned fireplace and a French door out to the front porch. On this same level entertain dinner guests in the dining room. The large eat-in-kitchen includes granite countertop and stainless-steel appliances with access to the powder room off the doorway to the backyard with extensive basement.

From either the kitchen or the foyer (two separate stairways), travel up to the second level and come upon the Master Bedroom en suite with full master bath. Added to this level are three other bedrooms and another full bath.

The home continues up another flight of stairs to the third floor, with an additional two large bedrooms, large closet, full bath and storage room. The home is heated by gas and includes two zoned central air conditioning throughout.

A walk to bucolic Mountain Lake, this bedroom community offers activities to its residents throughout the year and is situated between equidistant between the beautiful communities and downtowns of Denville and Boonton, both harboring train stations that have NYC and Hoboken direct routes. Mountain Lakes is known for its highly rated school systems.

Offered at $850,000, the seller will assist the buyer by paying closing costs (up to $20,000). Stop by this Sunday from 1-4 at 255 Morris Avenue, Mountain Lakes and take a look at this beauty

For more information please contact Jeffrey Halpern, Broker Associate, by call/text at 201.317.7527 or http://www.jeffrey.halpern@randrealty.com or Better Homes and Gardens Rand Realty at 973.427.9337. What’s your home worth? Get a FREE jeffstimate NOW!

Uncategorized • February 8, 2017

THINKING ABOUT HIRING FAMILY OR FRIEND – THINK TWICE

by Jeffrey Halpern

Everybody has a real estate license. Or so it seems. Realtors hear it a lot when attempting to solicit a seller or buyer.

“You certainly know your stuff and I know you are perfect for my real estate needs, but my sister/brother/aunt/uncle/mother/father/cousin/best friend has a real estate license, so I like to use them. They would get upset if I didn’t.”

In some instances there is nothing wrong with working with someone you may know as long as both sides can separate the two aspects of the relationship, business/personal finances vs. social.

Sometimes, it is very difficult to tell those that you are socially engaged with your business because many times it is none of their business.

A Realtor needs to know a lot about their clients when selling or buying a home in order to really service their clients. Why are you moving? What do you owe? Are you in a possible short sale situation? Is there a divorce situation? What improvements should I make to get my home sold? Are there permits on the home? Is there litigation on the home or any outstanding judgements? What price should I ask and what price should I sell it for? Why are you buying? What is your income? What do you qualify for? What is the downpayment? Where is the money coming from? What are your expenses? What is your credit score? What type of home? Which area? How many people will be living there? And on and on. Of which, by the Realtor Code of Ethics, much of this information is to remain confidential – always.

And of course the client needs to know if the Realtor is from the area; do they know the inventory; what is the marketing plan; what is the buying strategy; is this your full-time job; why isn’t my home selling; why do I need to reach out to you, shouldn’t you be calling me, etc.

As a buyer or seller, and the agent, can the two relationships be separate or if either part does not work out can the other continue?

I was watching one of the Sunday morning news shows and Barbara Corcoran, the president of the Corcoran Group in New York, said it best when asked if one should use a friend or family member as I paraphrase, “If you had to, could you fire that person?” I found it hit the nail on the head. What if they weren’t doing their job as they should, would you still hang on with them to keep as not to hurt their feelings? (By the way, it does happen as some realtors believe it was a give-me and therefore, need not work as hard.) If it is just a business relationship, it would certainly be a lot easier to fire an agent.

On the other side of this quagmire is that friend/family member who is the Realtor. They are in the same predicament. However, many get upset when they do not get the business. It may even affect the social relationship if they are not hired.

Conversely, it may also affect that relationship if they are hired and then possibly fired. A Realtor should think twice about the social relationship if entering a business relationship, too. It is not easy to separate them. The realtor has to be able to keep confidential information from others in that social/family group. They must be able to tell their client family/friend what must be done to achieve their real estate goals. They must treat their family/friend client the same as they treat all their clients, and sometimes even work a little harder. It is a big responsibility to service the family/friend client.

Don’t fret – there is a solution. If you feel uncomfortable not using that family/friend and yet want them to feel part of a transaction, compensation-wise , I suggest using what we realtors call the referral system. Have your realtor family/friend refer you to a colleague of theirs. It can be with the same company or if you do not feel comfortable with one in their office knowing your personal business, have it referred to another company in the area. And by the way, your family/friend realtor has the ability to refer real estate business anywhere in the world.

This allows you to keep confidential information and your business with a professional without leaving your family/friend from receiving any compensation and also keeps your friendship alive. It’s a win-win for everyone.

Uncategorized • February 8, 2017

SAY NO TO 9’s!!!

by Jeffrey Halpern

Why do my fellow Realtors insist on continuing to use the 9’s in their pricing in today’s market? $499,999, $599,000, $649,900, $254,900 – you get the picture. It may have worked in the days prior to the internet, search engines, etc., because the price of the home was less than it’s rounded up number. But today it may be the biggest mistake a seller and Realtor can make in marketing a home to a buyer, today’s buyer. But then again, most Realtors and sellers forget to realize that they are marketing a home to the buyer and not for themselves.

Today’s buyers go to the internet first for their real estate search. We get that, but what also must be gotten is that when marketing a home to that buyer you must consider their search habits. Searches by buyers although limitless in scope are limited to search engines parameters. Search engine parameters for properties are set in 0’s, 25’s, 50’s and 75’s. (ex. 300-350k, 450-475k, etc.) Because of that, home marketing today must fit to those guidelines. When a home is priced at a “9”, their market is limited to those who search within only that price range. Whereas, if a home is priced at a 0, 50, 25, or 75, the home now encompasses two markets, those looking up to that price and those looking above that price.

It is common marketing sense. A home priced at $399,999 will only be seen by those looking up to $400,000. Whereas, a home priced at $400,000, will come up for buyers searching up to and above that price point. Exposure is the name of the game in any marketing and opening the house to two markets doubles the number of hits on the internet, which in turn brings in more offers and higher prices. It’s Economics 101! It allows a buyer in the above 400k price range to compare that home to the others and just may find it to be the perfect home for themselves. If that home was priced at $399,000, that perfect buyer (and it only takes one buyer) would of never had the opportunity to find their home and for the seller never to sell their home.

Conversely, and using the same price point, if the home was priced at $401.000 – 414,900, the buyer searching up to $400k would have never seen the home either. And although the buyer was not looking over $400k, they just may of come up with the funds to buy it for a little over that mark. Especially because a home purchase is 90% emotional anyway, buyers will figure out a way to get it. Plus, in many cases a home priced just above 400k, may really be worth under that mark leaving the true buyer of the home out of the loop.

All told, and in today’s real estate marketing searches, $414,900 and 394.900 is the same price as $400,000. Yes, the same price. (And, don’t get me started on those homes priced at the “..55” mark.) Real estate is not a gallon of milk or gas where the number nine is still a marketing tool to give the impression that the price is “less than”. The odd numbers in real estate marketing do not apply. It may sound cute, it may give the seller the thought that it gives some negotiating wiggle room, etc., but the buyers are not fooled anymore – they have too much information at their fingertips. Buyers look at one thing, value for their real estate dollar. They are not looking to steal a home, they are looking for value. Unless a home shows value for the dollar as compared to others, there is no sale. Plain and simple. And for those sellers, that do not want to underprice their homes or do not want to give their homes away, remember, a seller may set an asking price but the buyer sets the value. A home that is overpriced will not sell and by trying a price and then reducing it to find a buyer, results in chasing the market and selling the home for less than what it would of sold for if priced right in the first place. And as far thinking you have underpriced a home, the public will answer that question by creating a bidding war, which would drive the price to is market value anyway Personally, I’ll take a bidding war over no bids any day, wouldn’t you?

But all of this begins with a pricing strategy that encompasses hitting two price target markets as part of the overal marketing plan. Which will you choose?

What’s your home worth? Get a FREE jeffstimate NOW.

Uncategorized • February 8, 2017

Home NOT Selling – Have an Edge

by Jeffrey Halpern

To differentiate one product from another, you need an edge. (I know, Derek Jeter has an edge.) You see it in car dealerships whether it is a “no money down” lease or lower interest rates, you find it in foods stores when you receive a free drink with the purchase of a sub, retail stores with their BOGO’s and even mortgage companies that promote 0 bank fees.

It can be the same for a house sale. As the inventory of homes continue to grow, and the buyer pool either remains stagnate if not lessening, there must be something other than the price of the home, its location, or its condition to attract the limited number of buyers. That something is an incentive to buy one house over another. Selling a home is no different than selling any other product.

The following are some ideas that have worked for my clients for years in selling their homes faster and for more money:

Closing Costs. Saving money for a down-payment on a home is difficult enough, especially for first-time homebuyers, then adding on another 2-3% of their purchase price towards closing costs may make it cost prohibitive. As a home seller, you can offer to pay for a portion or the entire amount of closing costs of the buyer. It allows the buyer to use that extra money for the down-payment, which may just give them the flexibility to offer a little more for the home of their dreams. In actuality, no money is exchange. The proceeds to the seller is diverted towards those costs and the buyer is financing that amount. This would raise their mortgage payment by just small amount but alleviates the up-front costs. (Note: Any give-back to buyers cannot exceed 6% on a 80%LTV loan & 3% for any loan above the 80%LTV)

Real Estate Taxes. Since we all live it, New Jersey has the highest (or nearly the highest) real estate taxes in the country. The difference in many contiguous communities vary greatly, resulting in similar home’s selling faster in one town over another. If that is the case, a seller may consider paying a portion or all of the first year’s real estate taxes on behalf of the buyer. This could be in the form of a reduction in the selling price, a credit at closing, paying the town directly, or paying the three to five month tax escrow collected by the lender.

Mansion Tax. New Jersey keeping to their tax state name, adds a fee of 1% of the purchase price to be charged to buyers who purchase a home for one million dollars ($1,000,000) and above. By having the seller fully pay or a portion thereof, via the proceeds of the sale, will give the that particular home a better look at than one that is not offering it.

Home Warranty. Offered by most real estate companies, a Home Warranty is an insurance policy that covers many of the homes inter-workings such as: plumbing; HVAC; electrical; water heaters; appliances; etc. With just a small deductible, these items will be repaired or replaced by a licensed contractor and are covered from the day it is applied for and for a year after the buyer closes. The cost to the seller is between $450-650 based on the coverage, but only paid from the proceeds from closing. This incentive gives the buyer a comfort level in their purchase and has proven to sell homes for more money and in a shorter time period, and again with really very little cost to the seller. And it covers the seller until they close.

Maintenance Fees. Whether a co-op, condo, townhouse, PUD, lake community, private community, etc., there are fees involved in the form of maintenance fees, lake fees, or the like – adding yet another monthly expense to the buyer. By offering to pay a full year or a portion of it you will attract buyers over your competition. That can be done by sending the Association for said amount.

Renovations. If you are willing to and a buyer is willing to wait, renovate or partially renovate rooms that they would like done or give the buyer a closing credit for the same.

But wait, there’s more! Be inventive with your incentive by determining what buyers are finding detrimental to your home. You Realtor should know as well as prospects that walked through your home and has willingly given constructive feedback. But whatever the incentive, be sure to advertise wherever possible, so that the buyer will see it.

Incentives that do not work. Adding a Realtor bonus may incentify an agent but it does nothing for a buyer and cannot be advertised as such. Remember you are attracting buyers.

The best incentive to give a buyer. It always comes down to price. Price it right and the incentives are not necessary but they do help.

Looking for more incentive ideas or any other real estate questions please contact me anytime at 201.317.7527.

Uncategorized • February 8, 2017

COMFORTABLE = COMPLACENCY in your career?

by Jeffrey Halpern

When it comes to being at home, you want all the comforts but being too comfortable in your work surroundings make you complacent and don’t think it doesn’t.

I have managed several real estate offices in my time and as Business Development Manager and Branch Office Manager of our Hawthorne office and as a recruiter of many associates, I have come to conclusion that the more comfortable an agent is in their office, the less productive they are. They like the people, they think their manager is a nice person (and funny,too), they have a private office, and the coffee is pretty darn good, and therefore, believe they have no reason to leave the company. Those are the same folks that have not done what they are capable of because of that high comfort level.

I believe that for one to succeed in any business they must feel just a little, if not a lot, uncomfortable. The challenge is more apparent to perform and the “need to succeed” is more of the goal then the choosing between mocha or french vanilla creamer. The best way for a real estate agent to feel uncomfortable, especially if their current company is not setting any standards of production, is to leave their current company to join another.

When joining a new company, that agent must not just prove themselves to the company that so heavily recruited them but prove to themself that they can do the job. It starts with reconnecting with their client and network base to let them know of their new location, of which they probably have not touched base with for awhile. (Most agents believe that because they are still with xyz company, whether or not the agent has actuially kept up with that base, their clients would always find them – of course, we all know better than that)

Conversely, a recruiter who brings on a new agent also wants to prove to that agent that their move was not for naught. Therefore, putting an uncomfortability position upon themselves. Making sure that the recruits name gets out there for the public to see, maybe handing over a couple of instant leads in the form of referrals or relocations, setting up a possible business plan and training/coaching program to give them a quick start, and the list goes on.

Marry the two uncomfortable positions will in most cases prove success. I have seen it and have been part of it. And so when you do get a call from that recruiter, instead of saying thanks but no thanks, I am comfortable where I am at right now, ask yourself, “Has this comfort helped or hurt my business or am I just fearful of being a little uncomfortable but regaining my business?” If your answer says it may be time to at least look at your options and see what your competition has to offer, then meet with that recruiter. You have nothing to lose and maybe just everything to gain. Plus it will give you some good negotiating power when it’s time to renegotiate your current contract. What’s the worst thing that could happen – choosing between the mocha or the french vanilla for the coffee the recruiter will buy you. And what’s the best thing that could happen – building your business with a new company. Thinking of a change call/text me at 201.317.7527 for a confidential chat. Or email me at jeffrey.halpern@randrealty. It can’t hurt.

Uncategorized • February 8, 2017

LET’S GET READY TO RUMBLE!

by Jeffrey Halpern

In the past several months I have been involved with several bidding wars on homes, representing both buyers or the seller. Most of the are in the price range of $250-400,000. Is it a good sign – yes? Is it the sign of the times – maybe (at least for the immediate future).

The good news to report is that many (not all) sellers are pricing their homes to sell (or under-pricing their homes to produce bidding wars) and all the owner-occupant buyers on the fence are coming off the fence, as well as investors and flippers. The competition is fierce. They see value in the right priced home as well as finally taking advantage a favorable interest rates, fence-sitters become fence (and house) buyers, whereas, the investors are paying cash. Conversely, inventory is low, driving prices up a tick and multiple offers on the little inventory there is, ticking them even higher.

Getting back to bidding wars, both sellers and buyers need to know what to do if you as a seller is lucky enough to have your house as the subject and the buyer is unlucky enough to be involved in trying to attain the home.

Seller. Without a doubt it is exciting to have your home as the subject of a bidding war. It is obvious that your home was fully marketed to enough of its target market through various Multiple Listing Sites (more than one), a slew of web sites, blogging, social and business networking, mailers, newspapers, etc., as well as pricing either at market value or just below it (yes, just below as it brings about many bids and sell for what market value is).

Because a seller has the upper hand in a bidding war, the seller can control the outcome of the final price and conditions. Seller should beware of the highest bidder. The highest bidder is not always the best of the bids and a seller must use their head and not their pocket to decide which offer to accept.

Multiple offers can come in at anytime during the selling process and actually by law, can be presented to a seller up to the moment they close with a buyer. However, in most cases, multiple bids come in when a property is first listed. When they do occur, the seller with their Realtor (and hopefully one who has had experience with them), should review each offer carefully. Do not get caught up in the hoopla as it is a business decision you must make to take the right offer.

Specifically speaking, with your Realtor, review the conditions of the contract: price; mortgage amount vs. all cash; down payment; closing date; items included in the sale; home inspection time limit; and additional contractual conditions, which may include a house to sell contingency, or the like.

From there go back to the bidders with a counter-offer, or ask them to enhance their offer. Try to avoid asking them to come to their highest and best as in my experience, there really is no such thing. It is better just to come back with a counter. If the offers are at full price, revert back to enhancement or you can actually, come back with a price that is higher than the asking price (just be wary of what it is as it may just turn all your bidders away).

The respondents will either not budge from their price, come up to a price, or just walk away to avoid the hoopla. Some may ask for the other offering prices, and although the Realtor Code of Ethics (if you are using a Realtor), with written approval by the seller, requires that the existence of other offers are present be disclosed, it does not require that the other offering prices are. As a moral and ethical standpoint, I believe that the prices be kept quiet. At that point the counter-offers are presented to the seller.

Once that has been done, revisit the contracts for a second time. If they are close, take the second highest offer – not the highest. In many cases, when the highest bidder wins they will either back out because they believe they may have paid too much, what is known as buyer’s remorse, or they will do what they can to make up the difference of what they wanted to pay, through the home inspection issues. And then there is the issue of the home appraising for that highest price (of which we are finding to be a stopping point for a good number transactions today).

Whereas, by choosing the second highest, the buyer is more apt to stay with the purchase and not ask as much after the home inspection. Giving the seller more control on the buyers requests. It must also be noted to the buyer that they already had an equity increase in the home they went into contract before they even close, as someone was willing to pay more, resulting in a higher value than their purchase price. Plus, the appraisal process becomes more affable.

When the seller has made their choice, I advise that they keep the other offers as back-ups just in case the negotiations fall through.

Buyers. The buyer is most stressed, especially if this is “The House”. Some buyers have to buy 3-4 homes before they actually get a home However, it is a lot simpler. Make your initial offer, look at the seller’s counter-offer, and come back to them with yours. Then do not let the hype take over and make your final price one that is not over your head. be sure to get the assistance of a Realtor who will give you comparables of like homes in the area and in many instances, keeping you grounded. This will give you the information for an intelligent decision. You can ask your Realtor for assistance of a purchase price but keep it in a range instead of a definitive price. (Remember, although they know the market, they are not buying the home, therefore, the value is in the buyers head more than the Realtor).

I suggest you add a letter of praise to the sellers and desire to purchase their home, to be included with your offer. There have been some buyers that have used video to let the seller know they love the home. The video may hurt more than help as the seller may not like what they see in the video. (It sounds wrong but people still do discriminate) If you win the bid, good for you. If you do not, leave your offer as a back-up and keep looking. It may have not been meant for you anyway or the other offer may fall through and therefore, you still have a chance.

Overall, multiple bidding can be stressful for both sides and getting the assistance from a Realtor will keep your emotions in check while giving you a representative that will work hard for you and your real estate goals

Uncategorized • February 8, 2017

Buyers are Liars & Sellers are Yellers

by Jeffrey Halpern

Ever since coming into real estate (1985 for me), my colleagues have always warned me, “buyers are liars and sellers are yellers.” Some still believe it to this day. My take is completely different “buyer are buyers and sellers are sellers”. Pretty simple.

BUYERS ARE LIARS?

“Buyers never tell you exactly want they want. They do not want a townhouse and they buy a townhouse from another agent.” “Buyers tell you they are qualified to purchase at a certain price point when suddenly after making an offer, they do not exactly qualify for their purchase.” “They want just a certain town or neighborhood and would never live in that area and yet they end up buying in that area”

Those statements have been said by agents for years and years and yet it is not the buyer that is the liar, it is just because the buyer just does not always know where they want to live, how they want to live, or may have a misperception of where they can afford to live. It really takes a Realtor working closely with their client and cares enough about their client to go through a discovery period to decipher all the parameters of that client. A Realtor must ask the right questions, and show a smattering of houses and areas. It also takes the buyers to be honest with themselves and their Realtor, to understand what they can buy at the time. A buyer cannot expect the perfect house nor the perfect location, but they should not feel they have to settle for a house either.

A good Buyers Agent realizes that buyers can be a fickled bunch when they begin but in the end, with a Realtor that listens, really listens, the buyer will find the home that they want, not what the Realtor assumes what they want.

SELLERS ARE YELLERS?

“My agent is doing nothing!” “My agent does not bring anyone to my house!” My agent doesn’t advertise enough.” “My agent over (or under or mis-)priced my house!” “My agent never calls me!”

Valid thoughts from the seller? More perception than realty in most cases some and totally correct in a much smaller percentage. One statistic has held true – 70% of sellers whose home listing expires, do not re-list that same agent, instead vies for another agent and agency. The main reason why has nothing to do with the home not selling, but rather how the agent approached the entire process. A bad agent will love a seller to get the listing and leave that seller after they have secured it; otherwise the majority of the agents do what is necessary to get a house sold. However, in most cases the seller has no idea what the heck their agent is doing unless they happen to stumble upon an ad in the paper or a posting on a website.

The majority of home sellers’ biggest complaint is that the agent never communicated with them. The key to a great listing agent as well as their obligation to the seller, is that they keep in constant contact with the seller at least once per week and stick to it. That weekly call should include market updates, showing follow-ups, what actions the agent has taken to promote the property, and a frank discussion of where all of it relates to the subject property. And that communication should happen even if nothing happens that week. If an agent can keep to that discipline, the yelling very rarely happens. If you can find an agency that guarantees it or they will be fired, even better. (ask about the Coccia Performance Guarantee). Accountability is the key to success.

REALTOR OF YOUR CHOICE

In either case buyer and seller, choose your Realtor wisely. Interview several Realtors, even if you know someone in the business. Your relationship with a Realtor first and foremost should be a business decision. Make sure they understand your needs and conversely, listen to what they are saying to you. They are the experts and they represent your best interest. Together you should be able to accomplish your real estate goals.

GET A YOB!

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Buyers are Liars & Sellers are Yellers

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