1. The wrong price. This is the leading reason homes don’t sell.  Remember if no one is interested in making an offer, you are over priced and it’s time to lower the asking price.

Of course price alone will only sell if it’s really low, but that’s not the goal here. The goal is to get the top price possible with the help of using marketing, staging and service, but also stay withing the guidelines, a range that will at least peak a buyers interest.

2. Emotionally attached to the home. Like I mentioned before the emotions need to go when the home needs to sell: at least those that may hamper the sale, those that may keep you from accepting a reasonable offer.

3. Under marketing. Price is imperative but it’s easy to under-market a home: bad copy and bad photos are a starting point since they are the the only impression a buyer gets of a home online. Do not skimp on this. Besides great photos you need to have them everywhere that potential buyers are looking. The MLS is not enough.

4. It still looks like your home. Since your home is now a product, it needs to look good for the new owners. You need to depersonalize it and in a serious way. That’s easy to do when the home is vacant, but even when it’s occupied you need to make it attractive to potential buyers and the last thing they should feel is like intruders. This is where staging comes in handy.

Related posts:

1. What’s important when selling your Home
2. Selling a Home Quickly
3. Lighting Can Help Your Home Sell Faster

But there is a false economy, especially in a weak real estate market, for not hiring a real estate agent.

Tara Struyk at Forbes has a great article outlining Five Reasons Why You Still Need A Real Estate Agent. It is worth a read. If you do not have the time here is a high-level summary:

1. Better Access/More Convenience

A real estate agent’s job is to act as a liaison between buyers and sellers. This means that he or she will have easy access to all other properties listed by other agents.

2. Negotiating Is Tricky Business

Many people don’t like the idea of doing a real estate deal through an agent and feel that direct negotiation between buyers and sellers is more transparent and allows the parties to better look after their own best interests. This is probably true–assuming that both the buyer and seller in a given transaction are reasonable people who are able to get along. Unfortunately, this isn’t always an easy relationship.

3. Contracts Can Be Hard To Handle

An experienced real estate agent deals with the same contracts and conditions on a regular basis, and are familiar with which conditions should be used, when they can safely be removed and how to use the contract to protect you, whether you’re buying or selling a home.

4. Real Estate Agents Can’t Lie

Well, OK, actually they can. But because they are licensed professionals there are more repercussions if they do than for a private buyer or seller.

5. Not Everyone Can Save Money

Many people eschew using a real estate agent to save money, but keep in mind that it is unlikely that both the buyer and seller will reap the benefits of not having to pay commissions.

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2. Canadian Buyers in the Phoenix Real Estate Market
3. 2009 Phoenix Real Estate Overview

I debated about writing this post for several days, not sure what is to be gained from writing it.  Almost two weeks ago to the day, I suffered from, what us medical geeks call, an Acute Myacardial Infarction, in layman’s terms, a heart attack.  At the ripe old age of 39.  Yes, 39.  Even the Paramedics, ER team and ICU Nurses were doubting that my Chest Pain was a Heart Attack, until the 12 lead EKG showed abnormalities in the AVR.

Let’s stop here a moment and disclose some background information to help you get the full picture.  I was a Paramedic in Illinois and was even licensed in Arizona when I first arrived.  I’ve taught CPR for several years and have treated countless Heart Attacks (MI) in my time as a paramedic.  I know how the process should work and what it all means from an academic and care-giver standpoint.

Did I know I was having a Heart Attack? No, I was in denial all the way until 3 minutes after arriving at the Emergency Room.  I woke up on Monday as I typically do, with the sun at 5:30 am, I felt a little off and my arms where sore, like I slept on them wrong.  I brushed it off and started my day as I always do, getting ready for work and spending time with my daughter.  At around 7:30, the pain intensified as I was getting ready to leave for work.  I started considering something else was going on and crawled back in bed to try and rest a bit.  With each passing minute the pain worsened, not only my arms hurt, my chest and jaw were screaming in pain and I felt like breathing was a problem.

There is an old adage that Paramedics don’t call 911 for themselves and I never had, but I knew I wasn’t going to be able to manage this myself, I asked my wife to call 911 (so technically I never called for myself).  Enter Al, one of Phoenix FD finest Paramedic, who was just finishing his 24 hour shift and his relief wasn’t there in time to take the call.  I can tell the crew had their doubts, remember I wasn’t thinking Heart Attack either.  No history, no family, symptoms close, but I was too young to fit the profile and according to Al a couple of days later, I was too calm.  They ran the ACLS (Advanced Cardiac Life Support) protocol as typical in Chest Pain calls.  Once we got to the 12 lead, the situation changed dramatically, the ambulance was expedited, the drug box was opened and I found a new friend in the Nitro, 3 sprays of nitro took me from a pain of 9 to a pain of 3.  I was loaded into the Ambulance and a hospital with a Heart Center was the destination.

Al stayed with me all the way to the ER, running the protocol as expected, Aspirin, Morphine and having the ER ready when we arrived.  One other thing that was working in my favor that morning, it was early and the Cath Lab was just starting up and they were given a heads up that I may need to take priority.  I hit the ER and was descended upon by 12 Doctors, Nurses and techs as they re-assessed the situation.  This is where my denial was gone along with my calm, I realized I was in real trouble and was living on borrowed time. Al stuck with me and talked to me as only one Paramedic could talk to another to keep the calm.

Six minutes, thats the time from entering the doors of the Emergency Room to the Cath Lab, telling my wife that I loved her and our daughter with all my heart.  The cardiologist wasn’t even in the hospital as I was being prepared for emergency procedures.  He walked in, greeted me and went to work in what seemed like seconds.

When I came too again, I knew my chest pain was gone, and that my life would be very different. So, that’s how life can change pretty quick..  I went from business as usual to being grateful that I’m alive and knowing that I have been given a second chance.  I had a 100% blockage on RCA Coronary Artery, they put a Stent in to keep it open.  They observed that I have 70% and 80% blockage in two other arteries that will needed further evaluation.  My cholesterol labs look just above normal, but nothing that would indicate the amount of plague currently in my arteries.

Since then I have been home, taking it easy, reading, enjoying my daughter as much as I can without over doing it.  I’ve met with Al, the Paramedic that was there for me since, I learned that he became a Paramedic because he witnessed his father die from a Heart Attack at the age of 37, when he was still very young. He holds a special place in our family.

I’ve changed my diet to watch and limit my in take of cholesterol, sodium and fat to below USDA standards.  On July 1, I will undertake a Nuclear stress test to determine the next course of action on the other partial blockages.  This test will determine if I can start exercising or working again as well as definite diet changes beyond the ones I have already taken.

Stay tuned as I learn more, I keep my Facebook wall updated in more real time.

Special Note: when talking to the cardiologist, he can recall a case of an 18 year old having a heart attack and I remember transporting a 26 year old that was having one.  Age isn’t the best indicator.

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2. Arizona SB1271 – Anti Deficiency Law Change
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1. One of the first things to check is where is the money coming from?

Cash buyers pose the least amount of risk, they are rare offers.  Most offers will use a financing element, the larger the downpayment, the lower the risk.  Are terms in line with market standards?  How does the loan officer feel about getting the loan?  Are there other options in case that loan type goes away?  Are there special conditions in order to qualify?  Such as length of ownership, condition of the home.

2. Why did the buyer pick this property?

This can be hard to determine in any detail, but is the home being purchased as an owner-occupied, second home or investor home is often outlined in the offer in settle ways.  Owner-occupied represents the most emotionally involved and least likely to walk away at the first sign of a problem.  The investor is at the other end of the spectrum.

3. Additional contingencies?

There are always contingencies, inspection, title, loan.  The one that adds risk is if the buyer is depending on selling their home in order to qualify to purchase your home.  This one contingency carries a lot of risk with it.

4. What other terms are included in the offer?

While these aren’t necessarily a risk to closing the deal, they can change the bottom line in many different ways.  Are they asking for contributions at closing?  Carry-backs or other financing options?

If the offer provides more of what you want over less of what you don’t want, you can consider it a good offer.  Always remain focused on the first objective, selling your home.

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2. Getting an Offer for your Home
3. Why do I and other agents require an LSR?

With respect to real estate and home loans, escrow accounts are used to pay real estate tax bills and homeowners insurance payments.

Escrow accounts are managed and disbursed by lenders.

When a homeowner “escrows” his mortgage, along with his scheduled monthly mortgage payment, he must also send an additional payment to the lender equal to 1/12 of the home’s annual real estate tax bill plus 1/12 of the annual homeowners insurance bill.

Due to the nature of insurance and taxes, both will go up over time and you will see notices from time to time that your payment will go up to cover these adjustments.  There is generally 2 months worth of reserves in the escrow to cover any increases as they occur.  By sending a pro rata portion of the tax and insurance bill each month, the homeowner’s escrow account will always, in theory, have enough funds to make payments in full as tax bills and insurance premiums come due.

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1. Helped them understand the process
2. Pointed out unnoticed features and faults of property
3. Negotiated better sales contract terms

While selling real estate in Phoenix for a number of years now, the number 1 reason that buyers call me is because they want me to help them find a home.  What I find interesting is that it doesn’t match a single item in the study after the process is over.  So I’m to assume that the reason a buyer calls an agent isn’t the biggest benefit they felt when the deal is done.  Well, if the deal is done, the original reason for the call, to buy a home, was accomplished.

I also find it ironic that the top 3 items match what my clients say about me.  I find it very important to educate my clients throughout the process.  I don’t believe in keeping anyone in the dark and feel that the more the client knows, the better the decisions will be as we go.

I also have a history of being quick frank when walking through a property.  The last thing I want to happen is for a client to buy a lemon, no one is happy when that happens.

When negotiating, there is such a fine line between being fair and being brutal.  I don’t try to undercut the market, I’ve been down that road and all it means is a bunch of paperwork for so little success.  Sure, 1 in 30 offers may lead to a good deal, but I find that 1 good deal is actually a lemon.  So a good strong offer that is fair and justifiable will get the deal done and that goes back to the reason for the call, buying a house.

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1. Buying in a Buyer’s Market
2. Should I call on a house or have my Realtor call?
3. Selling a Home Quickly

In Arizona, our standard purchase contract says that a home buyer will sign their documents no later than 3 days prior to close of escrow.  That means we need to sign papers several days before the agreed on closing date in the contract.

Typically, we’ll walkthough the house a day or two before our signing appointment and make sure the house is in generally the same condition as when we wrote the offer and make sure repairs are all complete.  On our signing day, you need to bring at least one form of government issued photo ID to the escrow office, along with a cashier’s check for the remainder of your closing costs and down payment.  You can also wire these funds directly into the escrow account.  And we get that amount needed usually a day or two before we come in to sign.  Be prepared, you will be signing a lot of documents, this process on the best occasion takes 30 minutes, I usually plan 1 hour.

At the signing, you’ll review and sign all of your loan documents, review a final closing cost break down (called a HUD-1), sign the deed that transfers the property into your name, and various other documents.

And then you wait.  If you haven’t transferred utilities, this is a good time to do that.

And then – on the day specified as close of escrow in your purchase contract, the lender releases the loan funds, and as soon as they hit the escrow office’s bank account, escrow will release the documents to be recorded.

And then once they are recorded, you own a home!  In Phoenix, there is a morning and an afternoon recording. Generally the recording occurs in the afternoon. Once we know everything has recorded, you can get your keys.

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On the other hand, there is the investor that is so new, they read a couple of books, probably attending a boot camp.  They don’t talk in specifics at all, they talk in, I want 2 houses, I’m going to put in a bunch of low-ball offers and if any come back, we’ll look at the house, the numbers and if it doesn’t work, we’ll make up an excuse to get out of the deal.  In other words they don’t negotiate in good faith.  The waist a lot of peoples time in search of a good deal.

Often, when my phone rings and my inbox starts to fill up with investors looking to get hooked up while they are in town, I start to look at some of my ‘favorite’ investor trainers schedule to see who is offering a camp and know what type of ‘program’ the investors will be running before I get too far into the process.

Here is a settle hint, my long term, happy investors that have been doing this for a number of years.. they don’t shotgun offers, they know what they want and how much they are willing to pay for it.  It works, and they make good money doing it.  So when the shotgun stops working for you, consider using a plan that does.

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Well, the answer is still going to start with price.  It’s not a matter of being priced correctly, correctly can mean you’ll get your price in 90 days or 180 days, or in my home town 422 days.  You need to price your property aggressively.  What is the price that will sell the home in this market in the time you need to sell?  But that is probably not what you meant when you asked the question.  So let’s just assume you are aggressively priced and move from there.

If you have a great deal, than it’s time to let the world know.  Also called marketing and exposure.  Creating excitement in the market for the buyers to want to see and buy your home quickly.  This can be done in many ways and first most, the MLS.  Everyday, thousands of searches are running on the database to help buyers find homes that match their needs and wants.  You want your home to show up in as many of those searches as you can, remember exposure.

Next up is letting those that are not necessarily in the market know about this great deal.  I wasn’t in the market for a new Macintosh until my wife showed me a listing on Craig’s List for a mini that normally retails at $850 that was listed at $400.  I’m all of a sudden in the market and in fact bought the computer.  Sometimes a deal is so good you will get someone that wasn’t interested, well interested.  Again exposure.  You can do this in lots of ways, flyers, signs, Craig’s List, Twitter, Facebook, MySpace.  You can even buy a billboard on the freeway near by.

Of course, if this all seems like a lot, well, it is a lot of work when you don’t do this as often as I do.  I’ve got the systems and the plans lined up for several different situations and I’m sure I can help you get the job done.  Just give me a call.

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