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.

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.

* * *
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

Loudoun Real Estate Market Looking Good

If you keep up with my blog, you know my opinion of the market. If you keep up with the Loudoun County market stats posted on my web site (and updated monthly), then you have already seen the evidence for yourself. And if you read the newspapers, then you will see that a recent survey of other agents and area builders reinforces what I have been sharing: The Real Estate Market in Loudoun County is looking good! :) The hottest submarkets? Ashburn, Brambleton, Potomac Station, and Potomac Falls....and homes priced $400-500K, and just above $1m....but homes in Western Loudoun are selling, too! In general, Loudoun is rockin'! In fact, inventory is so tight, the sale of land is picking up again too, and custom home builders are seeing an increase in the number of their contract. This is of particular interest, as building a custom home generally requires more than a desire... it requires a significant down payment and to qualify for a loan, borrowers must have a high level of liquidity and financial stability. Interested in learning more about real estate in Loudoun County? I am here to help! Vicky Chrisner 703.669.3142

Getting the Best Appraisal for Your Home

Because most people purchase homes with a loan or otherwise subject to an appraisal, getting an favorable appraisal is key to most home sales. You likely will also need to get an appraisal for refinancing.

The purposes of a home appraisal is to estimate market value, to make sure the bank is investing (via a loan) in a property that is worth their investment.

Recently there has been a change in the home appraisal process, resulting in more regulation. To comply with these regulations, among other things, most lenders use a lottery system to chose the appraiser for each loan.

When working with the Veterans Association on a VA loan, the VA operates the lottery system. No one involved in the transaction, not even the lender, has any ability to choose the appraiser. Outside of VA loans, larger lenders have a large pool of appraisers they work with... Bank of America and other large lenders, as you can imagine, service a huge geographical area... often, so do their appraisers. And, like in the example of the VA loans, the loan officers who work for these large lenders also have no ability to influence the appraisal... nor do they have the ability to influence decisions on who goes into the lottery, or who stays.

It's not uncommon in these situations to get an appraiser from a far off land (OK, I am exaggerating just a bit, but they are often from outside the market place) to provide a valuation for your home. Since we all know that real estate is local, this can result in a "bad" appraisal.

Appraisers who do not understand what neighborhoods are more comparable to others may pull comparables from neighborhoods that simply don't make sense. Or, if they don't often work in the market, they may not realize that (for example) in Winchester, a split foyer home sells well and in Reston a contemporary home is highly desired, but both of these housing types are considered "dated" and less desirable in Leesburg, where people seem to crave colonial style homes. They may not realize that a home in Round Hill is more desirable than one in Lovettsville because of the commute patterns. And, desirability drives value in any market.

I tend to encourage my buyers to use smaller, local lenders for a myriad of reasons. One advantage is that smaller local lenders have a smaller pool of appraisers who generally work smaller areas. While these lenders are still not permitted to "hand pick" their appraisers (to prevent fraud), they do have better quality control over the "pool" of appraisers, and the end result is a more accurate appraisal.

When selling or refinancing your home, your appraisal can affect your ability to get your loan...and if you're a seller you need the appraiser to be favorable so that your buyer can get his loan. So make sure you know your "comps."

"Comps" are simply market comparisons that reflect other homes that have sold in your neighborhood, zip code, and area. Review these comparisons by calling your agent of choice (hopefully me) for comparisons BEFORE your appraiser visits to make sure that all relevant comps are considered.

If your home is for sale, we've already been through the "presentation" checklist - and this still applies for the appraiser. If you're refinancing, take a few minutes to look at your home as though you were a home buyer, since checking that your home appears marketable and well-maintained is vital. Spend some time cleaning the home entrance and painting as necessary to spruce up the entry, making your best first impression. The rest of your home should be clean and clutter-free, as well. Appraisers assume - like most people - that if your home is dirty and toys are out front in the overgrown lawn, you don't take good care of the mechanics and the roof is probably a disaster; but if it's clean, surely all the nooks and crannies are in great shape as well.

Appraisals - no matter how scientific they appear on the final report - are incredibly subjective. If you hire 10 appraisers you will get 10 different values of the same property. So, make sure you make things as easy as possible for the appraiser, and present your case for the value.

There are some things you can hand to your appraiser when they visit:

• Floorplan and plat, for starters - because they will have to create one if you don't give them one.
• List of selling features of your home - the view, size, location, bump out, "options" when the home was built - anything that makes it better than most of the homes your house might be compared to.
• List of recent upgrades and updates, and include costs if they were significant (a $45K kitchen remodel is much more impressive than a $10K kitchen remodel; and be sure to include anything that improves energy efficiency - this is a focus in today's market).
• Listings for comparable properties with notes about the significant differences between your home and the one that is there (backs to highway, doesn't have a basement, etc.).

If I have listed your home you can rest assured that I will be providing this information to your appraiser - I may meet them in person or just provide the information electronically to him in advance. I will also do my very best to project to them that I am an expert in the market place, and that I am available to assist them if they need additional information, have questions, or find conflicting information. Being personable and approachable is an important factor in opening these lines of communication.

If you're refinancing, then I can still help you get these things together - just give me a call.

Once completed, an appraisal may take a week or so before you can get a copy, but do get a copy. If the appraisal is lower than you need, there are ways to request changes, and I can help you with that, too, so that you can accomplish your goals.

Don't hesitate to call me if I can help! Remember, with me, you've got a friend in the business!

Vicky Chrisner, REALTOR

703.669.3142

www.VickyChrisner.com

Facebook.com/TheRealEstateWhisperer

Thinking of selling or refinancing? Check the comps - order a free report at www.SalesInMyNeighborhood.Info

What? No Cookies?

I have been working with some buyers for several months... We have looked, and looked, and looked at homes.... Foreclosures, Short Sales, Vacant Homes, Model Homes, you name it. From the time we first entered a model home, the client commented "What, no cookies?" It's true... gone are the days where you can count on getting fresh baked Otis Spunkmeyer cookies at any model home.

This became the joke... Every house we went in, someone would comment "It's nice, but there are no cookies." Or something like that. Earlier this week, I showed them 2 homes that they really really liked, especially the second one. Of course, I continued the joke... "Yeah, but there are no cookies, so we better keep looking."

We went back the next evening to show another family member... Guess what we found? Yep. There were more, but we ate them. I had to take a photo before they were gone. They were tasty, too.

And no, it was not an open house. But it was an owner that did absolutely EVERYTHING right as far as staging and making the home available for viewing. She gets an A +++ !

Anyway, it got me thinking... I wonder if there is a camera in here? You know, many people have them. I even noticed them in another home I showed the same night. So, let this be a warning Mr & Mrs Prospective Buyer - be careful what you say and do, you might be caught on camera. For us, I have no idea if there was a camera or not, and we didn't say or do anything that would be a problem, so I am not too concerned. But it's pretty ironic that the cookies were there the next night, don't you think?

Oh - and in case you're wondering... We're waiting on a response to our offer. Did the cookies seal the deal? Hard to say, but it certainly sweetened things a bit.

So You Want To Be A Real Estate Agent?

I hear this from friends quite often... "I want to get my real estate license. I think I'd make a good real estate agent. I like looking at houses."

While the meat of the business is far more than looking at houses, the truth is that most agents fail because they can't find the people who want to look at the houses - or at least not the ones who wish to purchase them and are ready, willing and able.

See this post on Trulia, where someone posted, "I recently got my license, activated it and got my MLX lots of money invested.. I signed on with a brokerage that supposedly has one of the best training's out there but all they have told me is to send out cards and call my family..seriously...is there any brokerage firm that will actually say "hey agent here is a property go sell it or here is a buyer find them a house? or do i practically walk around in the dark questioning why i ever decided to make this my career and feel completely alone?"

Sadly, this agent will not likely make it. You see, the brokerage hired you to find business... not the other way around. And the brokerage was right when they told her to talk to the people she already knows - Are they willing to hire you? Refer you?

In this market, I know I would not hire someone who is new. Buying or selling a home a HUGE investment decision and very complicated and when you hire a real estate agent, you're relying on their expertise. Expertise you get from doing business. In some cases a new agent may not know as much as their consumer. It takes years and years of experience.

Luckily, when I entered the market as a new agent, I was not new to the business - I'd been working in real estate for decades, and so the transition was easier for me.... but it still took adjusting. I wasn't used to having to ask for business or referrals either. My advantage was once I had the "lead" I had the experience to justify them hiring me. But what if you were a home maker or negotiated labor contracts for a living? Not only are you not used to having to "find" your next client, but once you have them you're not really sure what to do.

Sure, some people get lucky - and I am often surprised by some of the people that make it in this business. It can defy logic. Maybe that will be you. But if you're that lucky, maybe you should just play the lottery.

Bottom line, here is my advice to anyone who wishes to get into this business... You are starting a new business, you are self employed, you are not getting a job. It is not the same. And, the projection on what you should make the first year... Here's how you figure it out:

How many people do you know RIGHT NOW who will buy or sell a home in the next 12 months? Of those, how many people will hire you to help them? Multiple that number by 75%, and those are the clients you'll have this year. Guesstimate your income per transaction based on sales price and the normal commission charged in your area, and then take out the costs for your broker, taxes, and expenses. (Generally an agent gets to keep 30% of their gross earnings.) That is what your projected income will be in the next 12 months. Are you excited? Probably not so much, but it's the truth that no one else wishes to tell you.

Yes, marketing helps, but the cold calling, bulk mail, door knocking, etc. can only do so much. It's a drop in the bucket, because everyone who talks to you will not hire you. Some will. Many won't. Once they do, if you do a great job, then they will refer you and use you again. That's why it's worth it. It's never about today's sale. It's always about tomorrow's.

Having shared all of this info, I have a message for my friends, family, and clients: I hope now YOU realize why I need your referrals, why I need your business, why I work hard to try to be the smartest, best, most loyal, most helpful, most competent real estate agent you know. If I have managed to establish that impression in your mind, take a moment to think about who you know that needs my help, and then connect me. I will be forever grateful. Without the support of my friends, family, and past clients, I would have no business. Thank you, thank you, for your continued support.

***

Vicky Chrisner, REALTOR

703.669.3142

MyAgentVicky@Gmail.com

www.VickyChrisner.com

31 lot Subdivision, Round Hill

Vicky Chrisner | (703) 669-3142 Airmont Rd, Round Hill, VA Conditional Approval has been received on this 31 lot subdivision in the Town of Round Hill, near Sleeter Lake. Property will be served by town water and sewer.Property is approximately 31 acres, with gentle rolling landscape, and a small lake in the corner of the property. Lots average 3/4 acres each. For more information on this or other land for development, contact Vicky Chrisner: 703-669-3142 or email: MyAgentVicky@Gmail.com. additional photos Contact info: Vicky Chrisner (703) 669-3142 Equal Opportunity Housing

Posted: February 03, 2012

I Love My Docusign

If you’ve known me for a long time, then you probably know I am not a gadget geek. I do not own the latest greatest techno-toys and I don’t buy the first release of anything. New gadgets and systems slow me down because I have to adjust, and I do not like slowing down… especially if I am going full speed and quite content. But, some things have an advantage that is so great, so obvious, so clear, that I think anyone who doesn’t embrace it from the start is really shooting themselves in the foot. Docusign is one of those things.

Docusign is a web based program that allows electronic signatures. In most real estate transactions, it’s perfectly acceptable, and the law has been adapted to ensure enforceability of electronically signed contracts. And, oy, it saves so much time.

I still know some agents that get every signature in person. I wonder how that is possible? Do they turn away clients who live far away?

Many agents are still stuck in the days of faxes… Faxes were “the thing” back in the early 90′s (newsflash: that was TWENTY YEARS AGO). I can remember thinking “Wow, this makes things so much easier… No pony express or personal courier! Woo hoo!” And the speed of business got faster.

Then we started to use emails – and send documents that way… that happened not long after faxes became commonplace, and became the norm around the turn of the century. But, that still required an internet connection, email, a printer, paper, a pen (for signatures) and then either a fax or scanner so you could return the documents. Still, better than the pre-90s alternatives but “Pfft!”.

Docusign has revolutionized the way I do business. It’s the best money I have spent on my business. And, shockingly, most agents still haven’t embraced it.

With Docusign, anyone with email can sign without printing the document… so no printer, paper, pen, scanner or fax machine are needed. Many people get emails on their phone and although proficiency with that still varies, some of my clients can sign a contract on their phone. But, whether using a laptop, iPad or phone, I have had people driving or flying cross country who have signed documents in a car, train, or airplane. No fuss, no muss. Presto magic their contract is ratified, their property sold, their dream home officially promised to them.

My clients LOVE it! LOVE, LOVE. It’s the way business is done today. Real estate might be “local” but all the people aren’t always local… and even if they are, compare the inefficiency of me driving to someone’s home or office and waiting for them to be available, flipping through the papers to get a signature, then having to figure out how to get them a copy while I am there, and then driving back to the office or to someone else’s office to facilitate getting it to the other party. We’re talking hours. Now, contracts can literally be ratified in minutes.

I know of some other electronic signature options, although I understand they are more buggy than Docusign, and I don’t want to fix what is working so well. (Remember how I said I hate slowing down to learn new stuff when I am running full speed? Still true.)

And last night I felt like a complete geek. It was Saturday night and I was excited about an upgrade to this program. I got an announcement from Docusign that more improvements are on their way, with 2 that make me particularly happy! MORE people will be able to use their phones to sign the documents thanks to some changes. There will also be a portal so clients don’t even have to wait that extra 30 seconds for their email to come through – they can just log right in and sign docs the way I can. I am SO excited!

To agents reading this that haven’t signed up – now’s the time.

I have already gotten one client because of Docusign. They had an agent selling properties for them, and I presented an offer via Docusign. Because of the seller’s schedule, the listing agent asked if I could send the contract to the seller via Docusign to sign, and of course I did. The contract ratified immediately. The seller, shortly thereafter, took the first out to pull the remaining listings from his then agent and asked me to list those properties….which I did. The seller simply said he needed someone who did business at his speed.

The rest of my clients didn’t discover the beauty of Docusign until we were well within the process, but they love it and I get fabulous feedback. Even a 80 year old lady with limited techno-knowledge had no issues with signing via Docusign when she was contracting for a house in Virginia from her Texas home. None. She was thrilled when she did not need to buy another ream of paper and more ink for her printer, or wait on a Fed Ex package.

To potential buyers and sellers, here’s your take away: I believe in old fashioned service, and that means delivering to clients the type of service that most benefits them. If you are not the jet setting kind, and you don’t even really “get” email, then this may not be for you. Rest assured that I will happily meet you in person, and will always deliver the type of service that you want and need….but I will have a plethora of resources that I use so I can provide that service to you. And even YOU will benefit from Docusign. When I am not driving all over the region to get signatures from others, it means I will have time to to spend, face to face, with you.

EVEN REALTORS MOVE!

Even REALTORS have to move sometimes... and the time for me has come!

I am pleased and proud to announce that I have completed my transition from a national franchise brokerage to a local boutique brokerage based in Loudoun County called Fieldstone Real Estate.  

As a result of this change, you'll be seeing some differences in marketing materials but clients who have been working with me for many years can already attest that there has been no change in the service level being received.

I have a great new web site that is being published for the first time later today... You can find it at the same old URL:  www.VickyChrisner.com

Like any good real estate web site, you can search for your new home right there.  Unlike many other real estate sites, this web site is updated hourly with a direct feed from the MLS system... that means when my web site says the house is available, it is!  Imagine that!  No more lost time drooling over listings of homes that are no longer available!  Plus, when new listings come on the market, you'll see them listed here within the hour!  With the market heating up and the best homes often selling within days, you don't have time to be leafing through old listings.  

I'll be adding lots more info to this web site in the coming days, weeks and months and look forward to your feedback.  If there are some real estate resources you'd like to see, email me at MyAgentVicky@Gmail.com.

My "New" Contact Info is basically the same - only the logo and email address has changed.  Reach out to me anytime for the real estate info you need.

Vicky Chrisner

REALTOR (R) 

Serving Loudoun County and the Dulles Area

703.669.3142

MyAgentVicky@Gmail.com

www.VickyChrisner.com

Facebook.com/TheRealEstateWhisperer

Top 10 Reasons NOT to Hire A Real Estate Agent To Sell Your Property

Most agents will offer you a list of the top 10 reasons TO hire a real estate agent, and ideally, hire them.

However, I am not like "most" real estate agents.  I think there are legitimate times you shouldn't hire a real estate agent, and I am working on putting together a list of the top 10.....

You Might Not Need A REALTOR IF....

Reason #1:  You're Sellin' To Aunt Bessie

 Reason #2:  You Don't Mind Leaving A Little Money On The Table

Reason #3: You Already Have a Pricing and Staging Strategy

Reason #4:  You Have A Marketing Strategy and Showing Plan

Reason #5:  You Understand the Financing Your Buyer Will Need

Reason #6: You Like Negotiating

Reason #7: You Can Handle Managing the 'Contract to Close' Process

Reason #8: You Know How To Deal With Low Appraisals

**In TODAY"S MARKET, there is a HIGH likelihood that your REALTOR could earn

150% of her commission with just this one!***

Reason #9: You Ain't Afraid of No Judge

Reason #10: You Don't Really Plan To Sell

Each of these situations apply to some people some of the time.  For the majority of the people, the combined benefits of convenience, expertise and resources offered by the right real estate agent will far outweigh the cost of brokerage fees, and in most cases these benefits translate into more dollars in a sellers pocket, even AFTER paying the brokerage fees.

Are you in the Dulles/Loudoun area and thinking of selling?  Give me a call and let me show you the value I will bring to the sale of your home.

Vicky Chrisner * REALTOR

Keller Williams Realty * Leesburg, VA

www.VickyChrisner.com

Ofc: 703-669-3142

VChrisner@Kw.com