Thursday, June 14, 2012

How Can I Buy When I Still Need To Sell?

A consumer asked me... "If I have a house I need to sell before I can buy another home, how can I do it? What comes first?"

It's sort of like the chicken and the egg conundrum.

In a buyers market, a buyer may be able to negotiate with a seller to enter into a contract that is contingent on the buyer selling their own home (this is called a home sale contingency). In these cases, though, it presents a risk to the seller, and their agent will help them to evaluate that risk so they can decide if they should take it. The evaluation will include conducting a market survey on the buyers home, among other things. Buyers will have to demonstrate to the sellers that they have positioned their property to sell in the current market.

In a sellers market, it's unlikely that the seller will agree to this. Instead, they will wait a few more days and take the next, non-contingent, contract that comes in. SO, then what? What's a buyer to do?

Well, in this post, preferred lender Marc Aymard has provided financing related alternatives to this, allowing the buyer to choose their new home first, and then sell their existing home, without having to make the contract for their next home contingent on the sale of their current home. Not all buyers are comfortable with this... some won't qualify, others just can't handle the stress.

So the next option is for one to put their home on the market, and secure a contract that contains a seller contingency called a "Home Of Choice" contingency. This is becoming more common. This contingency allows that seller to then go and find the home of their choice... and make an offer that is contingent only on the settlement of their home (which is much less risky than a full home sale contingency).

I guess the bottom line is there is not one answer that is always right... it depends on market conditions and the parties involved. An experienced and skilled real estate agent can help you evaluate risk, provide resources and alternatives and determine the best course of action for your family.

If you happen to be in this exact predicament, wondering how exactly you make all these puzzles pieces work together, well, you're in luck. I know how, and I can help you get the plan put together. Contact me today and let's set up our initial consultation...

Vicky Chrisner,Dulles Area REALTOR

703.669.3142

MyAgentVicky(at)gmail.com

Tuesday, June 12, 2012

Market Stats - May 2012 - Looking Good

I sell homes and land in the Northern Virginia/Dulles region and throughout Loudoun County.... and today I am looking for people who wish to list their homes - like yesterday - and get them sold today.

Here's why:The May market stats were just released from MRIS our local MLS system.

In Northern Virginia, compared to last year, Sales Volume is up 10%, and inventory is DOWN 20%... That means I have 10% more people buying than last year, but I have 20% less homes to show them. Simply put, more demand, less supply. And yes, that is putting upward pressure on pricing in our area. Prices in the region are up almost 7% compared to last year.

Interested in learning more? I have charts, stats and tons of info... just go to my web site, and check it out.

If you are thinking of selling, this might be a great time. I am waiting for your call or email. Let's get together!

Vicky Chrisner
Selling Homes and Land in the Dulles area
703.669.3142
MyAgentVicky@Gmail.com

Saturday, June 2, 2012

The Market Recovers, Appraisals Lag Behind

Today as I was discussing an appraisal issue with a couple of fellow practioners, I learned that appraisals are suddenly becoming more of an issue. And, unlike a year ago, it's not really because appraisers that don't know the market place, but more because of the market changes. A year ago, 6 months ago, we had a lot more distress sales in the market....and the "traditional" sellers had to compete with the distress sales in order to be able to sell. But for the past 6 months things have been absolutely ROCKING and there has been upward pressure on sales prices... and we ARE seeing prices go UP. (Sellers - this is where you cheer: YAY!)

BUT, (and there's always a BUTT, isn't there?), appraisers are pulling comps of past sales... You know, from when we had so many distress sales, and when the market wasn't so hot. As a result, appraisers are having a hard time justifying the new sales prices that the market is bringing. THAT is a problem we haven't had for several years. It's good news...."ish"... I guess. Well, the cause is good. The side effect - not so much. (Buyers and sellers together: Boooo!) A low appraisal can kill an otherwise perfect real estate sale.

Honestly, I am frustrated. I get it, but I am frustrated. "Fair Market Value", is, by definition, what a willing buyer and seller agree to in an arms length transaction. It is not what an appraiser thinks. And yet, appraisals are holding back our market recovery.

So I am trying to be an optimist here, and focus on the positive - the market is strengthening. And I will try to take the problems in stride. Dear sellers, and buyers, I hope you do, too. Real estate these days is not always a fun game to play.

In the mean time, take a look at theses posts:
To make you laugh: Your Home, as seen during a real estate transaction.
To help you get your appraisal: Get the best appraisal for your home.
Interested in learning more about our market place? Visit the Market Statistics part of my web site for the latest news, stats, and information.

Friday, June 1, 2012

Can I Have More Than One Agent?

A Consumer Asked: Can I have more than one agent?

Hmm... The short answer: Maybe, but not if you're *my* client.

But let's back up a bit. When you begin working with an agent, there's an important discussion that should be had - right up front. It's about the difference between being a client and a customer. (Yes, there is a legal difference.)

If it's determined that you will hire that agent to be your agent, then you will likely be asked to hire them exclusively. This means you will be asked to pledge your loyalty (in writing via a contract called a listing agreement or buyer/tenant agency agreement) to work with that agent, and only that agent, to help you with your real estate need (be it buying, selling or renting).

I admit I always laugh a little when we talk about loyalty in a brokerage agreement... it feels a little like asking a guy to go steady; except it's one sided: "I don't want you to see other girls. But, I will be seeing other guys."

Doesn't sound fair, but let me finish:

You see, REALTORs do not get paid by the hour, for their effort, for their gas, or the many tools that are required to do the job sufficiently. Together, these things cost thousands of dollars every year. We only get paid if we are successful in helping someone buy, sell, or rent a property. As a result, it seems unfair for you to work with more than one REALTOR, since - unless you're planning to rent, buy, or sell more than one place - only one REALTOR can get paid for the job.

On the other hand, when you ask us to help you buy, sell, or rent a property, you're not guaranteeing us payment... You're just representing that you are ready, willing and able. So, we can't only spend time with you... If we want to pay our own mortgages next month, we will have to have more than one client.

It is for that reason, that the REALTOR community has established rules that prohibit us from "stealing" another agent's client. If you have a written agreement with another agent/brokerage, there are legal and ethical issues that prohibit me from being able to work with you while that agreement is in place.

It is also for that reason that I only work with people who are working exclusively with me and no other agent. I'll post more about agency later. But since I got this question twice today, I thought it was an important post. I hope the next time an agent attempts to explain exclusivity to you, it makes a bit more sense.

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In the mean time...Got real estate questions? I got real estate answers. Email me, sent me a tweet, post on my wall, text or call me.

Remember, with me, you've got a friend in the business.

Vicky Chrisner, REALTOR

MyAgentVicky@Gmail.com

Twitter: REWhisperer

Facebook: The Real Estate Whisperer

Text: 703.728.5766

Old Fashioned Phone: 703.669.3142