Rodica's Real Estate Blog
May 20, 2015: Audio and Video Recording in Homes for Sale
Rodica Taritsa | (217) 637-1322 | [email protected]
Keller Williams Realty, The Real Estate Center of Illinois, LLC
2441 Village Green Pl. Champaign, IL
I read an article in the Illinois Realtor magazine that explained, somewhat surprisingly to me, that home-sellers are allowed to install audio- and video-recording devices in their houses in order to monitor potential buyers and agents. Video recordings without audio are allowed without specific consent as long as they are not used in a place that has a reasonable expectation of privacy (such as a bathroom). As a broker, if you are representing a seller who wishes to use recording devices on their property, it’s recommended to get express consent from clients viewing the property or to post an obvious notice on the outside of the home that recording is taking place. If you represent a buyer and are viewing a listing where recording is taking place, recommend to your buyer that you not discuss the listing in details and especially not terms (or the prospect) of an offer until after leaving the property and you are both in a more private place.
January 9, 2015: 5 Crucial Home-Selling Decisions if You Want to Sell in 2015
If you’re planning on selling your home in 2015, there are five crucial decisions that can help you maximize your sale price, get your home sold quickly, and do it all without the mountain of stress that often comes with the sale of your home.
Decision #1: Decide to prepare sooner than later. Home-sellers who wait until spring to get their home “ready” are already behind the curve. The real estate year is in full swing by March 1st, and homes that sell quickly and for top dollar during the “selling season” are the homes where the owner had a plan, got their home ready, staged, and listed early in the year.
Decision #2: Decide to prepare yourself emotionally. Selling your home can be very emotional. When you receive an offer for less than you think your home is worth, it generates a whole host of negative emotions. You can feel angry, frustrated, and think everyone is trying to steal your home from you. Well, they’re not. Buyers just want to know they’re getting the best price. We all feel similar when we make a big purchase. So be careful to manage your emotions. And if you get a “low-ball” offer, rely on the help of a trusted professional. A good agent can often gently negotiate the price into a range where everyone wins. The key is to keep your emotional swings in check.
Decision #3: Be realistic and price your home accordingly. One of the big keys to getting your home sold quickly, for the most money, is pricing it correctly. If you price your home too high, thinking you’ll “test the market,” it can be costly. Your home can sit on the market too long and get labeled as a “no-need-to-show” because you’re viewed as being unrealistic.
You see it all the time. Sellers think they are going to “hold out” and get a better price. Well, you need to consider how soon you want to sell. The reality is, you can get just about any price you want if you’re willing to wait long enough. If you wait 5–7 years, your home will very likely sell for a more than it will today. But if you want to sell in 90–120 days for top dollar, pricing is a crucial issue that you should discuss at length with a trusted real estate professional.
Decision #4: Reconcile reality quickly. This is somewhat similar to decision #2, but it’s actually more practical and actionable. Emotions can be hard to define and control, like in point #2. But what is fairly easy to judge is your market’s numbers, and the realities of value.
Agents always hear things like, “But my home has this, this, and this. Therefore, it should be worth a lot more.” In theory, that’s somewhat true. However, the reality you have to be prepared for is, if people won’t pay more for those things, it doesn’t make your home worth more.
Now, don’t get me wrong; I’m not trying to soften you up so you give your home away. The goal is to help you get the highest possible price, in the shortest time, with the fewest hassles. But something that’s very important to deal with is reality, not wishful thinking. Wishful thinking backs tens of thousands of home-sellers into very difficult positions every year.
Having a clear objective view of reality, as well as a trusted professional to help guide you through the emotional ups and downs, can help you avoid a massive mountain of emotional stress, while your home just sits on the market.
My encouragement is, prepare yourself for the true realities, while maintaining high standards throughout the process. It’s a balancing act that with the help of a trusted professional can be far easier to navigate.
Decision #5: Trust your gut. When interviewing agents, there are few things more important than a deep level of trust between you and the agent you choose to represent you. And trust comes in two crucial parts. The first is professional competency.
To trust someone with what is likely the single biggest financial transaction of your life, you need to have confidence that the agent you choose has the skills, technology, and ability to fight hard and win what’s in your best interests. That’s why choosing someone just because they’re a “friend of the family” isn’t always the best choice.
The second layer of trust is personal. When you work with someone on something as important as the sale of your home, you need to know you can trust that person personally. You need to feel a deep sense of confidence that your agent puts your needs in front of their own. It’s not about flash and glitter, or how many homes that agent sold. What’s important is, “Can I trust this person with my financial future?” That’s where “listen to your gut” comes in. Most of us can sense authenticity and integrity. It comes out in many ways, and generally when you’re in the presence of it, you know in your gut. Sometimes the person might be a little quirky, other times they’re not, but again, it’s not about flash and charisma. The bottom line: choose someone you trust on both a professional and personal level and “go with your gut.”
I hope you found these suggestions helpful. Selling your home is a life-altering series of decisions. The better prepared you are to make those decisions effectively, the better the end result.
And as always, if there is anything at all I can do to help you, please feel free to call me at 217-637-1322. The conversation is always free, and you’re under no obligation of any kind. My entire objective in our conversation is always to help you in any way that I can.
July 1, 2014: Investment Return on Home Renovations
With the warmer weather of summer, many homeowners take the opportunity to make improvements that increase their home's value. Whether you're planning to sell soon or stay where you are for a while, here is a guide with the projects that give the biggest return on your investment.
February 11, 2014: 5 reasons to hire a real estate professional
Here's a great article with 5 good reasons to hire a Realtor® to help you handle the process of buying or selling a home.
1. PAPERWORK
An agent will help with all disclosures and paperwork necessary in today’s heavily regulated environment. This helps remove much of the liability a buyer or seller could face.
2. EXPERIENCE
Navigating today’s real estate and mortgage processes can be like walking through a minefield of challenges. Real estate professionals are well educated in and experienced with the entire sales process.
3. NEGOTIATIONS
Negotiating such a large financial transaction can get tricky. Agents act as a ‘buffer’ in negotiations with all parties throughout the entire transaction.
4. PRICING
Real estate professionals help buyers and sellers understand the true real estate value of a property in today’s market. This is crucial when setting the price on a listing or on an offer to purchase.
5. UNDERSTANDING OF CURRENT MARKET CONDITIONS
There is a plethora of housing information available today. The challenge is that some information appears to be in direct conflict with other pieces of information. A true real estate professional can simply and effectively explain today’s real estate headlines and decipher what they mean to you.
http://www.keepingcurrentmatters.com/2014/02/03/5-reasons-to-hire-a-real-estate-professional-2/?inf_contact_key=91493652e936b798ce68dd1acd3404d357ab103122f7c898cc1651e745466b75
January 13, 2014: Working with buyers in today's market
I found a great article, by Theresa Grimaldi Owen, in this month’s issue of Illinois Realtor. It’s about strategies to succeed with today’s buyers.
As we know, the economic recovery is lending speed to the housing market, but it’s important not to get ahead of ourselves. One realtor in Illinois compares the current market to Columbus discovering America, and says it’s “evolving into a new normal”. He says clients read about the improving economy, and then get their hopes high that they can sell for a higher price than they could have just a few years ago (in the case of sellers) or find great deals on homes with the help of low interest rates (in the case of buyers).
One of the most important components of representing a buyer well is having a strong client relationship so that your buyer stands out from the crowd in today’s transitional seller’s market. Only a few years ago, there were low numbers of interested buyers; nowadays, some local realtor boards report that buyers can bid higher than a listing’s full asking price and still not get the deal. Sales to first-time homebuyers are especially competitive. It’s critical to remember when you’re representing a buyer not to focus on sale volume, but instead to provide good customer service. Help them understand the market and make good decisions.
Set goals from the beginning to really get to know your buyers. Look through MLS listings together to see what your client is looking for. Talk with them and ask questions. Be their friend, not just their real estate agent. When you have a deep understanding of their wants and needs in a home, you can help them to navigate the market and find the home that will make them happy and fit their circumstances. Explain to your buyers the trends of the real estate market, trends in financing, and new regulations. Short sales and foreclosures have been common in the market for several years, but are becoming more competitive. Banks will take multiple offers on the same foreclosed home and make counter-offers to each one. Make sure your buyer is informed of every stage in the process.
When interest rates go up, purchasing power goes down. One realtor says that every 1-point increase in interest rates translates to -10% in purchasing power for a buyer. Your buyers may not always end up buying the home they originally started out thinking they would; encourage them to “think outside the box” and look at listings that they may not otherwise have considered. Another crucial point is to make sure your client is pre-approved. Showing a pre-approval letter when they’re making an offer on a listing with multiple competing offers can be the competitive edge that wins them the home.
In conclusion, there are three simple tips for working with buyers in today’s market:
1. Prepare your clients for a more competitive market. Multiple offers on the same listing, and properties that sell for higher than their listing price, are becoming more common.
2. Homes are selling faster. Have your buyers visit a lender and be pre-approved for financing, in order to speed up the process down the road.
3. Buyers look to you as an expert in this market. Make sure your customer service is the quality they expect. But at the same time, don’t pressure them into a decision or overload them with information. They have to be comfortable with the home they choose. A client who’s happy with the property they buy is a good way to get them to refer all their friends to you!
December 17, 2013: Spotlight on 1602A CR 200N, Villa Grove
My clients bought this house about 4 years ago and completely remodeled it with high-end materials. They were originally planning to stay there long-term, but job opportunities changed their plans, and now they’re looking to sell.
The home offers luxury country living only 15 minutes from Champaign-Urbana. It has an amazing interior with vaulted ceilings; eat-in kitchen fully equipped with abundant cabinets and counter space, new granite countertops, and new high-end appliances; and a light and cheerful living room with new flooring, Pella windows, and access to deck. Elegant lighting installed throughout the house. All the bedrooms are located on the second floor; family room with woodburning fireplace on first floor. Enjoy your evenings on the deck in the tranquil backyard beneath mature trees.
Among the home’s many updates are new flooring, new appliances, new septic system, new HE heat pump (50% reduction on bills), all-new ductwork, all-new insulation, new attic access, new light fixtures, new water heater, and new water-purifying system. If you’d like to come see it, please give me a call (217) 637-1322 or email me at <rodica[at]kw[dot]com>!
October 28, 2013
I found an interesting article today on the National Association of Realtors' website.
Pending home sales in the US have been declining slightly for the past few months; September was the fourth consecutive month of decline. There are a few reasons for this, including higher mortgage interest rates, higher home prices, and consumer confidence; the government shutdown played a big role in the latter, says NAR chief economist Lawrence Yun.
The Pending Home Sales Index (PHSI) fell 5.6% to 101.6 in September 2013, and is 1.2% below September 2012 (when it was 102.8). The index is at the lowest level since December 2012, when it was 101.3 (data reflect contracts, but not closings). Mr. Yun notes that this is the first time in 29 months that pending home sales haven't been above year-ago levels, and predicts lower home sales for the fourth quarter and a flat trend going into 2014. He also points out that as inventory drops, home prices will continue to rise, but this will be at a slower growth rate next year.
However, our regional market seems to be doing better than the national average. The PHSI in the Midwest did fall 8.3% to 102.3 in September, but that's 5.7% higher than it was in September 2012. The rate of 102.3 is also higher than the national average.
Total existing-home sales this year are projected to be 10% higher than 2012, surpassing 5.1 million, and this trend is likely to hold in 2014. The national median existing-home price is expected to rise 11 to 11.5% over all of 2013, but 2014 is predicted to see a rise of only 5 to 6%.
October 16, 2013
Good morning, readers! Today I'd like to share some advice from economist Lawrence Yun about interest rates.
Rates are starting to climb again after years of historic lows; the average in early 2013 was 3.5%, but is expected to reach 5% by mid-2014 and go even higher in 2015. Unfortunately, this means some homes will be pushed out of the market.
Right now, there are about 17.8 million renter households in the US with sufficient annual income (at least $36‚000) to buy a $177‚000 home at a 3.5% mortgage rate, whereas there are 14.9 million able to purchase at a 5% mortgage rate.
However, there's some good news in all of this. Underwriting standards are returning to normal. Lenders' portfolios are full of healthy loans and they're making financing more available: more households will likely qualify for mortgages, with lenders offering conventional conforming loans to house-hunters with credit scores down to 720 (down from 760 in the last few years) and FHA loans to borrowers with credit scores down to 660 (down from 680). Job growth is also doing well; this will increase buying power as more Americans go back to work. Finally, Fannie Mae and Freddie Mac are doing better these days and will likely be reducing some of their fees. As we all know, these two mega-lenders had to raise their costs to cover the losses they took during the housing bust, but now that they're making healthy profits, we can expect them to start repaying the taxpayer funds they got and then start cutting their fees. This will help potential buyers who otherwise might not be able to afford to borrow with interest rates going up.
October 9, 2013
I read a great article in REALTOR® magazine and wanted to share a brief summary.Having a personal "brand" is important in the real estate business, as in any business. It's important to reinvent your brand to keep up with customers' changing needs. Real estate covers a lot of specialties, including short sales, luxury home sales, commercial properties and leasing, and foreclosure sales. Since nobody can cover every specialized area by herself, it's important to use your brand to focus on YOUR personal skills and what YOU bring to the table.
The best brand is one that's easy to remember and makes a good conversation-starter. Make it easy for people to share your contact information and talk about the services you offer. Make yourself stand out from the crowd by mentioning special recognitions and ranks you have received, for instant credibility and prestige without throwing a big load of background information and testimonials at potential clients. Most people searching the Internet for the best realtor to sell their home won't remember all your great client success stories, but they will remember seeing that you received a place on a list in the Wall Street Journal.
Of course, it's important to remember to be a local market expert and have the skills to back up your brand. Don't spend too much time on reinvention or brand strategy if you don't have the success to build on.
