Club Chaos Agents - All Things Hollish, Wacked, and Jacked

Well, it looks like Mr. Murphy has struck again. While the Mid-Atlantic states are being bombarded with snow at record depths, the venues for the 2010 Olympic Games are experiencing unseasonably mild weather.

As a matter of fact, it’s so warm in Vancouver, British Columbia, that it is not even possible to make snow. Snow is being brought in by the truckload and is turning into a slushy mess.

Some events may have to be postponed or moved. It is a cause of great concern for event organizers and participants.

It’s just another one of those ironic twists of that reminds us to depend on nothing, and to be prepared to make alternate plans when things go awry. 

Because until we are able to control the weather, we just have to learn to deal with it!

You Think Your House is Worth WHAT? Pricing Your Home to Sell

O.k., so you've looked on the Internet, you've checked the Real Estate Weekly - and you've talked to your Neighbors.  You're pretty sure you know what you WANT your home to be worth.  Next step?  You call the Realtors in.

Everyone says you should interview 3 Realtors - so that's what you do!  And sceptically you await their Verdicts!  Does the highest Bid (because that's what it often is)  win your Vote?  Well it shouldn't and let me tell you why.

 

 

                                                      

                                                              

                                                  BUT Your neighbor's house just sold for XXXXX!

 

First of all, Realtors have access to the same information Online.  By doing a CMA (Comparative Market Analysis) they should be able to come very close to the Range of Your Home's Value.  They will see which homes are currently Listed, those that will be in direct competition with Your Home; they will see which comparable homes have Sold recently; and they will ALSO see which homes have 'Expired'....(Listed But Not Sold). That's the Starting Point!

If you use a Local Realtor - which is what I Recommend- they'll also be able to take into consideration different factors about your neighborhood - like development, schools, safety, proximity to transport etc.     

                                                            BUT Your House has been upgraded!

                                                                 

Now where no 2 homes are exactly alike - chances are we've seen most of the homes for sale in your area and have an inside view that you may not have seen.  Even online photos won't give you a complete view of how these homes compare. 

In many ways - it's the Buyer that ultimately determines the value of your home. A house is worth what somebody will pay for it.  It's important to try and anticipate what MOST buyers will pay for it. If the price is too high - you may just end up remaining THAT Buyer!  If your home should by some chance sell for more then the estimated value, remember the home still needs to be Appraised for the Buyer's Bank, and if it's overpriced it just may not!

                                      BUT That's What INEEEEEEEED to Get for My Home!

There is the odd time that a home is unusual and there are not direct comparables, sometimes this requires a trial and error strategy where we have to gage potential buyer responses in order to fine tune the price. 

Another factor is the current 'Real Estate market'.  Is it a  Buyer's market or a Seller's market - or is it balanced? What kind of standing inventory is in the market in your price range. These will all factor in to your pricing.

The value of a home can also be estimated in part by using the price per square foot calculation.  But you do have to use a sliding scale of adjustment.  The 'core' of the home is worth more then the peripheral square footage. ie. the price per sq. foot for a 1000 sq. foot rancher will be higher then that of a 3000 sq. ft. basement home. 

Should you start higher - after all - you can always come down??? No! If you do that you should be charging your competitor a fee for helping them sell THEIR home!

Remember the most critical time for selling your home is in the first 30 days.  Longer then that you can bet your bottom dollar, (and unfortunately that's probably what it will end up being) that the Buyer will be paying attention to your 'days on market' when making both their buying decision and price point! 

How do you know if your house is priced right?  Feedback! Your Realtor will be calling to get feedback on showings from both the Buyer and their Realtor.  If you've had over 6 showings and have been on the market for 3 or so weeks  that should give you some idea of what the market thinks.  Unusual or high end homes could be the exception here though. 

Sometimes the most important factor is YOUR motivation. How motivated are you to sell?   I know a lot of Seller's like to tell us that 'they don't HAVE to sell'.......and in most cases that's true - you don't!  But if you do want to sell your home call a Realtor that knows your market and will be honest with you - because that's what a professional does - they Help you Price Your Home to Sell!  

 

                         

                                          

 

If you or someone you know is thinking of Buying or Selling property in Cultus Lake, Chilliwack, Hope, Abbotsford, Langley or anywhere in the Fraser Valley Area of B.C. - or if you would like more information please give Liz  Moras of Landmark Realty Chilliwack a call at- 604-799-0459 or e-mail at lizmoras@gmail.com.     

Copyright © 2009 By Liz Moras, All Rights Reserved. All photos taken by Liz Moras and copywritten.  Please do not use without permission.   Information provided by this author is only an opinion, it is not guaranteed, may be based on information collected from several sources, and may be time sensitive.  It is not necessarily representative of the opinions of Landmark Realty Chwk. Ltd.   

                                                  

                                                                    

 

What's Your Commission? On Hiring a Realtor Based on their Fee... 

I always say (oh well maybe somebody did say it before me) - if the Realtor cannot negotiate their own Commission then how are they going to negotiate the best price possible for your home? Negotiation skills. I would think, given a choice - you would want an aggressive negotiator, not someone that either doesn't believe in their own ability or the value of your home!

The question that begs to be asked is....Why do some Real Estate Agents offer Discounted Fees?  Is it because they're the Good Guy?  They just want to see more money in your pocket then theirs?  

 

                                       

Well there could be a number of reasons:

- they feel that's the only way they can compete

- they have poor negotiation skills

- they have trouble justifying their own worth

- they're hoping to make up for it in volume 

- the agent is desperate - any commission is better then no commission

- qualifications/experience of the Realtor

- you're willing to do the marketing instead

- they feel sorry for you

- they believe in pro bono

- having a sign on your lawn is more important then the commission

 

                                        

So let's do a little review.

Did you know that the commission the seller pays is split between the Selling Agent (the person with the buyer) and the Listing Agent (the person with the seller). So if the commission is 6% then typically 3% will go to the Selling Agent and 3% will go to Listing Agent.  Sometimes we Realtors assume that you know that!  However I'm pretty sure that some of you think we get the whole kit and caboodle!

Do you know that there are Real Estate Companies out there that Do Not put your home on The Mutiple Listing System (MLS)?  They have this 'exclusivity' thing happening.  They think that their paycheque might be a lot bigger if they do not have to co-operate and share their commission if they get to to List AND Sell your home. Be sure to ask them what portion of the commission you are paying will be going to the Selling Broker.   How much longer do you think it will take to sell your home if it's only YOUR AGENT  that's trying to sell it? I think I read somewhere that it's like 16:100 odds. 

When looking at an MLS Listing - the Selling Agent can see the commission they will be paid.  It may not show up on the Public Version - but that information is disclosed in the Realtor's version.   Note:  It's the Selling Agent that reviews the properties for sale in the MLS and most often choose those they deem appropriate for their buyer. Guess what?  Herein lies the conundrum.

Now put yourself in the Selling Agent's shoes. You can sell House A or could sell House B. But house A will pay you $1,000, $4,000, $7,000 or MORE! You have mortgage payment, bills, & children to support. Which house would you like to sell?

Did you know that unlike Doctors, Lawyers and Government Employees - Realtors are not paid per hour.  But we do take all the risk by putting our time & money into advertising YOUR property in order to get it sold. Chances are we also have an OFFICE cost, MLS Fees, Board Fees and more! Do you know that we only get paid if the Seller sells and the Buyer buys? If they don't our costs are not recovered.

So no - commission is not regulated - there is no set rate if you're selling your home - but it IS a good idea that the commission you're paying the Selling Realtor is  in-line with the rest of the comparable houses on the market.  Market slow?  Well in that case you might even consider offering a greater sales commission or a sales bonus.  You say WHAT???  But look at it this way.  For every week/month your home doesn't sell - how much will THAT cost you? You get to choose!

Still think you'd like to go with a Discount Broker?

*Please note - this is not meant to suggest that the Commission fee charged is the only criteria - there are many, many different aspects to hiring the right Realtor. Please check out these posts: 

How Do I Find a Good Realtor? 

Is It Wrong to Work With More Then One Realtor?

Speaking of Statistics...What's the Difference Between Median Price and Average Price?

Don't Have a Site Survey - Title Insurance - Should You Get It?

 

                                             

 

If you or someone you know is thinking of Buying or Selling property in Cultus Lake, Chilliwack, Hope, Abbotsford, Langley or anywhere in the Fraser Valley Area of B.C. - or if you would like more information please give Liz  Moras of Landmark Realty Chilliwack a call at- 604-799-0459 or e-mail at lizmoras@gmail.com.     

Copyright © 2009 By Liz Moras, All Rights Reserved. All photos by Liz Moras ( except the one's I'm in!). All information provided by this author is only an opinion, it is not guaranteed, may be based on information collected from several sources, and may be time sensitive.  It is not necessarily representative of the opinions of Landmark Realty Chwk. Ltd..   

                               

 

 

How do I Find a Good Realtor I Should Work With?

It's a common question - and perhaps not one always asked of THE Realtor - but definitely one discussed amongst the public! I just did a post -  Is It Wrong to Work With More Then One Realtor? and one question begets another.  It reminded me of a conversation I had recently. 

I was working my mall shift at the Kiosk the other day ~ and chatting with a customer and she asked..."But How do I find the Good Realtor?".......And I thought to myself - the choice Must be confusing for people!  If you don't have someone you know recommend one - and if you don't want to solely rely on the ads in the Real Estate Weekly what do you do?

                                   

Well I can tell you what you Don't Want to do!  And that's choose on the basis of the Lowest Commission and Who Suggests the Highest Price for your home!  But that's the subject of another post.  This one is about what you Should Do!

Some people go for Experience -  believing that is the KEY! And it could be - but brand new agents can be amazing as well.  There's something about enthusiasm and thinking anything is possible - that can be pretty powerful!

I'm a big believer in Enthusiasm:  When an agent shows excitement about your home it'll come through in every conversation whether it be on the phone - at an open house - or through their advertising! They'll be able to convince both Realtors and Customers to view the house but still make recommendations to show your home in it's best light!

Marketing  has always been important ~ but these days a Web presence is critical!  I believe one of the first things you should do is GOOGLE them.  Google their name, their company and things like  'Your Town/Community Realtor' and see what comes up.  Ask the Realtor if they BLOG, evaluate their Website (because of course they HAVE to have one)....Ask them to show you how they market other homes - that'll give you a pretty good clue!  If you're not computer savy then ask a friend that is!

Find out where the Realtors advertise ~ Real Estate Newspapers have become passe in some communities so don't be surprised if they don't advertise in newspapers - but let them show you how they will market your property.  In the same way Open Houses can be a good tool in some areas and yet not in others. So ask questions and ask why.  Ultimately you want to get to the point where you trust the Realtor in their choice of marketing !

Communication:  You want an agent that can tell you The Good, The Bad and the Ugly! A phone call after each showing is not too much to expect, nor is a monthly report outlining showings, ads placed, feedback, etc. You should be able to expect a return phone call within a few hours - but some Realtors don't work Weekends or evenings - so make sure you know what you can expect.

All that being said.......I find Intuition and 'Gut Feelings' can also be a powerful factor.  You'll know if you feel uneasy about the potential association or if there's a mutual respect and camaraderie. My best advice? Research, Ask Questions And then go with your Gut Feeling! 

 

 

                                          

 

If you or someone you know is thinking of Buying or Selling property in Cultus Lake, Chilliwack, Hope, Abbotsford, Langley or anywhere in the Fraser Valley Area of B.C. - or if you would like more information please give Liz  Moras of Landmark Realty Chilliwack a call at- 604-799-0459 or e-mail at lizmoras@gmail.com.     

Copyright © 2009 By Liz Moras, All Rights Reserved. All photos taken by Liz Moras and copywritten.  Please do not use without permission.   Information provided by this author is only an opinion, it is not guaranteed, may be based on information collected from several sources, and may be time sensitive.  It is not necessarily representative of the opinions of Landmark Realty Chwk. Ltd.   

                                                  

                                                                    

Is It Wrong to Work With More Then One Realtor?

Home buyer: " Is it wrong to work with more then one Realtor at the same time? I'm trying to follow proper home-buying etiquette. My friends tell me it's O.k. as long as I keep track of which Realtor showed which property. That way, if you end up purchasing, the correct Realtor is compensated. I've not signed any exclusive contracts with any Realtor.

Is it OK as long as I make sure both Realtors realize I'm working with another agent as well? Some people have told me that Realtors know customers might be working with others, and it's not a big deal."

                                                   

Isn't that a good question? As a Realtor,  I definitely have a 'biased' perpective and answer to that question.  But since the question involves 'working with a Realtor' - who better to answer it? :) 

1.)Yes - if you're working with Realtor's in two different Cities - where each has their own area of expertise! Go ahead and Use 2 Different Realtors! As a matter of fact your local Realtor can probably refer you to a Realtor in the city you're moving to.

2.)If you are Selling Your Home and Buying again - it is possible to work with a Listing Agent to sell your home and a Buyer's Agent in the purchase of your new home.  Often these 2 Realtors can even be a part of a team where they tag-team each other.

More importantly however, is the Buyer asking about this from a legal or moral/ethical perspective?

First of all I want to say that Real Estate Associations in each Province and State have their own rules.  There used to be 'threshold' rights in British Columbia.  This is where the Realtor who introduces you to the house - is the Realtor who gets the commission.  However it's not so cut and dried anymore.

If you signed a Buyer's Agency Agreement - then you are under 'contract' to work with that and only that Realtor.  If for some reason you choose not to - then your new Realtor may very well end up getting paid by YOU or not at all!  And YOU will be breaching a contract to work with another agent. This can get ugly ... and no one wants "ugly" ...

However if you have No Contract - Let  me Tell you You some Reasons Why it is NOT a good idea to work with more then One Realtor!

Home Buyers often call on signs and advertisements and talk with MANY real estate agents until they find a home that they want to buy ... and then just work with the listing agent to buy the home. Sometimes this is not a good idea, as the home buyer may not get the best deal if  the listing agent is looking out for the best interest of the seller ... not the buyer.

Or the Buyer may work with several different Buyer Agents to see who will find them the best deal. This is ALSO not a very good idea for a couple reasons ...

 

                               

1.  First of all all Agents have the same access to the same homes for sale via the local MLS.  They all have the potential of finding the "best deal".

However Agents only get paid when they successfully find a home for a home buyer ... and it closes. All the up front work of finding the home is done without pay and in good faith that the home buyer that they are working with is using them to represent them. If a home buyer is not disclosing that they are potentially working with other agents, then the Buyer Agent does not have the ability to fairly weigh out the situation and determine whether or not they want to work with that home buyer.

There Are some exceptions though:

1. If a home buyer wants to work with more than one agent (for whatever reason), the right thing to do is to NOT sign a Buyer Agency Agreement and to notify each agent of this decision.
2. If a home buyer is considering buying different types of property or different areas, they may consider hiring an "expert" for each area. 
3. If you're still not sure and don't know if you will like being 'married' to just one agent - Consider  signing a week long Buyer Agency agreement - If after that week, the agent is not a good fit, then the home buyer can move on and find a new agent. Win Win right?

Finding ONE agent to work with is generally going to be your best bet.

                                          

 

If you or someone you know is thinking of Buying or Selling property in Cultus Lake, Chilliwack, Hope, Abbotsford, Langley or anywhere in the Fraser Valley Area of B.C. - or if you would like more information please give Liz  Moras of Landmark Realty Chilliwack a call at- 604-799-0459 or e-mail at lizmoras@gmail.com.     

Copyright © 2009 By Liz Moras, All Rights Reserved. All photos taken by Liz Moras and copywritten.  Please do not use without permission.   Information provided by this author is only an opinion, it is not guaranteed, may be based on information collected from several sources, and may be time sensitive.  It is not necessarily representative of the opinions of Landmark Realty Chwk. Ltd.   

                                                  

                                                                         

 

You want to buy a house in Chilliwack and need a mortgage or want to remortgage your current home?  Some people think their only option is to go to their local bank - preferably the one that already has their chequing account! However your options are much greater then that.  Let's explore some of them :-)

                                                

1) Mortgage  Lending Centres-  are  located in the larger metropolitan areas like Vancouver, and are used by the mortgage brokerage industry extensively.  These types of lenders are policy and documentation driven with stringent policy standards.  Rates are usually competitive. 
 
2) Local Financial Institutions -  these lenders are usually easier to deal with because they're local. These lenders are in a position to be more creative and are able to work with policy but are able to make exceptions within reasonable limits. They are also more in tune with the local markets and have the ability to approve those difficult deals without going to a head office.

3) Mortgage Investment Companies - these are large mortgage brokerage firms that manage and invest private funds on a large scale. They are easier to deal with however rates are usually higher and loan-to-values are usually much lower (75.0% or less) than the standard 80% through conventional sources.  A good source when one does not qualify through the conventional lenders. 
 
4) Private lenders -  these are individuals that administer their own funds and use a mortgage broker to obtain/arrange their mortgages. All financing details are processed through the private investors notary or solicitor. Rates are established based on the clients circumstances but are within reason so that it is affordable to the borrower. Loan to value ratios are maintained at a very strict level of 75.0% or less depending on the deal. Brokerage fees are charged when private funding is used and these fees are payable to the mortgage broker and paid by the borrower from the mortgage proceeds. 

Mortgage Brokers - can use any of the above resources and sometimes you'll find that the relationships they've developed within these various sources can help insure that you get get a better rate. 

Remember!  The posted Rate - is only the Posted Rate - typically you can negotiate, or competitively shop a better rate depending on your specific financial qualifications.  But you do have to ask ~ in many instances you will not be offered the best rate available unless you ask!

 

 

What do These Mortgage Terms Mean?

*Amortization is the amount of time needed to reduce the loan to $0. A conventional mortgage is 25 years, but amortization can range anywhere from five to 35 years. The shorter the amortization, the higher your regular payments will be, but the less you'll pay in interest over the life of the loan. Generally, amortization is several mortgage term periods.

*The mortgage term is the period of time that the mortgage agreement is in effect. These typically run from six months to 10 years. At the end of the term, you will either repay the full mortgage amount, or the mortgage is renegotiated at then-current market rates and conditions.

*Another decision when deciding on a mortgage term is whether to have a fixed rate or a variable rate. With a variable-rate mortgage, the interest rate changes as the prime lending rate changes and they generally offer the lowest rates.

*With a fixed-rate mortgage, the interest rate is set for the length of the mortgage term. Fixed rates, while slightly higher, offer you the security of knowing how much you'll pay in principal and interest on each regular mortgage payment.

Payment frequency. You can choose to make your mortgage payments monthly, semi-monthly (twice a month), bi-weekly (every two weeks) or weekly. The bi-weekly and weekly payments can be accelerated allowing you to reduce your mortgage principal more quickly.

A down payment - The amount of your own money that you use to buy your home - often expressed as a percentage of the purchase price.  

                                                                     

 

                                          

 

If you or someone you know is thinking of Buying or Selling property in Cultus Lake, Chilliwack, Hope, Abbotsford, Langley or anywhere in the Fraser Valley Area of B.C. - or if you would like more information please give Liz  Moras of Landmark Realty Chilliwack a call at- 604-799-0459 or e-mail at lizmoras@gmail.com.     

Copyright © 2009 By Liz Moras, All Rights Reserved. All photos taken by Liz Moras and copywritten.  Please do not use without permission.   Information provided by this author is only an opinion, it is not guaranteed, may be based on information collected from several sources, and may be time sensitive.  It is not necessarily representative of the opinions of Landmark Realty Chwk. Ltd.   

                                                  

                                                                         

 

 

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The Outside Blog Minion Report

November 2008 In Review: Liz Moras

 

What can Carolyn Tann-Starr say about Liz Moras? Hmm...

Liz Moras, author of "Liz Moras Re/Max Chilliwack Realtor's Blog" is a dear friend of mine. I had the honor of giving Liz my very first LinkedIn reccommendation. Writing it was easy. Trying to make myself stop writing in that little dialog box was surprisingly difficult. Here's a recap of what I had to say:

"When it comes to sharing information on the process of buying and selling homes, Liz Moras creates a wonderful environment for her clients and new Realtors to learn in. Kind, patient, knowledgeable and friendly with high ethical standards, she works diligently to provide her clients and cooperating brokers with the most positive real estate experience possible. Not only can Liz be counted on to provide excellent customer service, she is a results oriented professional, a talented photographer and a very dedicated blogger who frequently utilizes the superior technology of the Active Rain Real Estate Network. She administers a professional virtual organization there and her work has won awards and been the subject of multiple features. I am very proud and pleased to recommend her. She is a wonderful person and a very good friend."

I mean every word from the bottom of my heart. Although we are geographically apart, Active Rain has bridged the distance across nations, making it possible for us to be together every single day while she is in Canada and I am in the USA. If we are not on Skype chatting about our lives, we are e-mailing behind the scenes or commenting on each others blog posts. We write on the walls at Facebook. We update our news streams in LinkedIn. We're gal pals in Twitter. We trade photographs and talk, and talk, and talk away when ever the mood hits us to strike up a conversation.

The Internet is a beautiful thing. It also give you the opportunity to learn about my girlfriend Liz.

She's just started a new job at Keller Williams. While in training for her new position, she came to TX and caught up with some mutual friends. With all that she had going on, she found the time to show a buddy a kindness by re-blogging a post.  She comes up with fun ways of keeping us up to date regarding her travel adventures. She will take you on a shopping spree so you can discover beautiful local spots, quick to share a smile and give thanks, she will take you on vacation and joke about birthdays. 

A very talented photographer, she takes you on wonderful tours, like through Fairfield Island, Rotary Trail, and my fave: Fall in Fort Langley.