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

Sold 605 Valley View Ave SW Leesburg VA

Vicky Chrisner | (703) 669-3142 SOLD: 605 Valley View Ave SW, Leesburg, VA 4BR/3.0BA Single Familyoffered at $349,000SOLD FOR $352,000 Year Built 1986 Sq Footage 2,129 Bedrooms 4 Bathrooms 3.0 Floors Unspecified Parking Unspecified Lot Size 10,019 sq ft see additional photos below additional photos     Vicky Chrisner (703) 669-3142 Find more homes for sale in Leesburg at www.VickyChrisner.com FIND OUT ABOUT OTHER SALES IN YOUR NEIGHBORHOOD: www.20175HomeSales.com

Posted: March 09, 2012

Hidden Costs in Home Buying - New Homes Vs. Resale

Today I received an email from Toll Brothers linking to a blog about why you should buy a new home rather than a resale.... and they make a few points; but they miss a lot of points. "A" for effort! Hopefully the consumers reading the blog don't actually think about what it says - or doesn't say.

In this sheet, Toll Brothers gives you expected life expectancies of varying systems in homes, and their approximation of replacement cost. Generally speaking, they are right on about the average life expectancies. According to the estimate, over a 25 year span you could be spending $133,500... that's a little more than $5K a year in maintenance (that's regardless of whether you buy new or not - that's the cost to maintain a home over those years... and it's probably going to be more than that in our area). However, if you are buying a home, particularly a resale, I recommend you get a home inspection and hire someone that will provide you with a better estimation (based on the actual home you're buying) what maintenance or replacement items you should anticipate so that you can budget accordingly.

Aside from the predictable maintenance costs of any home (new or resale) there are other things to consider. For example:

• Do you sneak to the kitchen for a midnight snack in your undies? If so, having window coverings in place might be a good idea. Resales usually come with them... new homes rarely do.
• Most people repaint. For resales, most people repaint when they first move in to get rid of the prior owners taste in wall coverings and replace it with their own. With new homes, builders recommend that owners wait a year before repainting, so until then you need to live with the builder's choice of paint and the nail pops.
• Yes, nail pops - That's why builders recommend you wait a year before repainting. At the end of a year, they will (usually) come back and cover up nail pops and other minor signs of settlement that are inevitable.... but they won't touch up custom paint, so waiting until after that 1 year walk through to repaint is a good idea, since you'll surely want to repaint after that is done. With resales, they are usually "settled" by the time you move in, so you're not as likely to find these kinds of issues.
• Do you like to have clean clothes? Most of us do... and builders rarely include a washer and dryer. Most resales come with the laundry equipment.
• Are you moving out of that stupid rental apartment to your own home so you can have a cook out on your own deck without the rental manager fussing at you? Well then, you're going to need a deck or patio. Resales commonly have decks or patios... New homes usually don't, and this is a big ticket item not included on that Toll Brother's list. Think $10-15K plus.
• Maybe your motivation for moving is that you're ready to start a family, and whether you're starting your family with dog or a (human) toddler, you may find having a fenced yard would be a plus. There aren't many builders that include that in the cost of the home, in fact, many don't even offer it as an option. But in resales, you have a pretty good chance of finding a great yard with a great fence already in place.
• Speaking of yards, do you like green grass and mature trees? This wish list item is also going to be easier to find in a resale. With a new home, the landscaping is all new, and takes much work to get established.

While buying a new home offers some advantages, it offers disadvantages, too. There is not one right answer for everyone. I am not trying to sway your opinion, just to point out some of the things you may not have considered... and things Toll Brothers certainly doesn't want you to consider when you're reading their blog or shopping in their models (where, by the way, you'll see lush landscaping and decks, and patios, and fenced yards, and custom paint and window coverings). I'm just sayin'.

***

Whatever the right answer for you, I am happy to help you make sure that you're buying, "eyes wide open" and not swayed by marketing materials and propaganda. That's the role of a buyers agent~to make sure you have the right information so you make the best choice for you and your family. Thinking of buying a home? New or resale I can help!

Vicky Chrisner, BUYERS AGENT

703.669.3142

   

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

Free Annual Credit Report

Just one quick real estate tip today.... If you're thinking of buying in the next year (or two) and haven't seen a copy of your credit report lately, I encourage you to get your free credit report. You can do so online at www.AnnualCreditReport.com. There are other sites, including "FreeCreditReport.com" with really cute commercials, like this one.

But don't get drawn in by the name and other marketing efforts, this is a site that wants your paid business, and will do their best to get it. The federal government credited the law that once per year you are entitled to a free credit report, and the web site designated for this is www.AnnualCreditReport.com. Even though you can get a complete credit report via this site, you can not get a free credit score.

I hope this quick little post keeps you from getting drawn to the wrong web site and spending money on something that is available to you, for free.

Got other real estate questions? I am here for you - just send me an email to MyAgentVicky@Gmail.com and I will try to help.

Remember, with me, you have a friend in the business. Stay tuned to The Real Estate Whisperer for more real estate tips and news!

Vicky Chrisner, REALTOR

703.669.3142

MyAgentVicky@Gmail.com

Do You Need A Survey When You Buy A Home?

Do you need a survey when you buy a property? Here are some insights from Keith Barrett, attorney and owner of Vesta Settlements in Leesburg, Virginia.

 Stay tuned to The Real Estate Whisperer for more news and real estate advise.    

Real Estate Pricing Trends in Loudoun County, VA

MEDIAN PRICE HISTORY

This chart reflects a 5 year history of median price levels in Loudoun County. The blue line is for all housing types; but as you see, detached homes (purple), attached homes - i.e. townhomes (pink) and condos (red) have all followed a very similar pattern. For those wondering "Are we at the bottom of the market yet?" I'd say there is clear and convincing evidence that in Loudoun, the prices in our market place bottomed out in the first quarter of 2009, and prices have been moderately climbing since.

ARE PRICES BEING NEGOTIATED?

Buyers and sellers both need to know: "Are buyers in this market expecting to negotiate down from the asking price, or are the buyers expecting to pay the asking price?" It's an important question. Sellers need to price according to market expectations. Buyers need to know, too, so they are looking at properties in the right price range, and so they know how to present a offer that might be accepted.

The 5 year history shown on this chart reflects the "ORIGINAL list price to sale price" ratio. It demonstrates that when you were buying in 2008, you could probably negotiate a good bit from the listing price. But, in the last couple of years we are seeing far less negotiation on sales prices. Sellers are turning down low ball offers and getting within 5% of their asking price.

But (and there is always a "but"), as the chart below shows, homes that are getting contracts quickly after listing are getting their price, sometimes more (purple); homes going under contract in less than 30 days are also getting very close to their asking price (red, maroon); but the longer the property sits on the market the more that seller is likely to consider a lower offer, or to drop their asking price.

*Please note, all charts on this page are updated on or about the 10th of each month as new statistics are available from our local multiple listing service. So please check back for the most current information.

Interested in learning more? Check out this page on the seasonal trends of Loudoun's Real Estate Market.

You can also learn more about the regional market by checking out the page on Northern Virginia Regional Real Estate Market Stats which also contains information that is updated monthly.

When you’re looking for a REALTOR that knows the market, you can trust Vicky Chrisner. Office: 703.669.3142 Email: MyAgentVicky@Gmail.com www.Facebook.com/TheRealEstateWhisperer

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

Dominion will offer rebates for energy efficiency, pass cost to all customers

Dominion Virginia Power has won state regulators' approval for five energy-efficiency programs that will cost the company $28.1 million. The programs will be paid for with additional charges to customers' monthly bills. Starting May 1, residential customers using 1,000 kilowatt hours per month will pay about 52 cents more.

Homeowners will be able to collect rebates for buying energy-efficient lighting. Households with low incomes can apply for free energy audits and home improvements.

Read more at The Virginian-Pilot....

http://hamptonroads.com/2010/03/dominion-wins-ok-energyefficiency-rebate-programs

How Affordable Is Your Area

Via Virginia Housing Alliance... New Statistics on Regional Affordability:

The Center for Neighborhood Technology has released its Housing and Transportation Affordability Index, which factors in the cost of transportation when calculating the cost of living in greater metropolitan areas.

Loudoun County is deemed "affordable" with housing cost averaging less than 30% of household income. HOWEVER, the "Housing and Transportation Affordability Index" (new) says those costs combined should be 45% or less of household income. In Loudoun, it averages more than 50% (compared with DC region which is 44%).

Read more:   Follow links to an interactive map of the nation for statistics where you live, and read the Washington Facts Sheet.

I am Thankful For ....

I wanted to write and post a blog today on why I am thankful for my business… and, true to my nature, my first draft was very comprehensive and too wordy, so I trashed it, looking for a simpler thought to share…. and then I recalled this….

One day last year my daughter and I were driving down the road, and she started talking about the parent of one of her friends. It prompted me to ask “Rachael, do you know what mommy’s job is?” She nodded. “What?” I asked.

“You sell houses, help people and make new friends.”

(Long pause and big smile.)

Yep, it’s exactly what I do…. And I love it… I am so grateful that I somehow have managed to make a living selling houses, helping people and making new friends. What a lucky lady I am!

I am thankful for my clients, my associates, and my friends and family that support me personally and professionally every day. I would be nothing without you all.

Have a wonderful Thanksgiving

and

May God Continue To Bless You!

The Long and Short of A Short Sale, Part 1

In general, the following is the process of a short sale. There are many variables due to specific lenders, particulars of the parties involved and the heavy influence of third party negotiators and/or the involved real estate agents. * Regardless of the path taken to get to this point, the sellers eventually decide that attempting to negotiate a short sale with their lender(s) is their best option. Lenders will not approve a short sale until there is a contract in hand. * The homeowner contacts a real estate agent. Not sure how to screen an agent for this process, the homeowners generally pick the first person who says they can help. Sometimes this works out fine; other times it does not - but we'll cover that in a later post.

* Because there is often a race against a clock to prevent foreclosure, the agent should see this as a firesale and market the property agressively, at a price they hope will quickly attract buyers; but the agent should be careful not to market the property too low, as the goal is to procure an offer that the lender will approve. * An offer, or multiple offers, are received. The agent should assist the sellers with reviewing and negotiating the contract, and should be sure to include a contingency addendum that provides for "third party approval", namely approval of the lenders. * An offer should be ratified. * Contract now in hand, the listing agent and sellers put together the required information for the seller's lender, and forward the package to the bank. This package includes seller's financial information, bank statements, paystubs, tax returns, a "hardship letter" explaining how the seller got into this mess, and why they need help getting out of it, the ratified contract to purchase the home, a Comparable Market Analysis of the property estimating fair market value, and other things that may help to persuade the bank to approve this short sale. * The bank receives the package, distributes it to the right department, and the file is assigned to a negotiator at the servicing bank. * The negotiator reviews the package, and may return it in its entirety to the seller because it is incomplete or the seller does not meet the requirements to qualify. Or, the negotiator will move it to the next phase. * A BPO (Brokers Price Opinion), appraisal, or both, are ordered for the property. * Once received, the bank has a third party's impression of the fair market value of the property. The negotiator can "counter" the offer on the table (if they feel the ratified contract is too low), can reject it, or can recommend it for approval. * Once the negotiator can recommend the package for approval, it is submitted for another layer of review, where it goes through a similar process. If it is not approved, then it will be sent back to the negotiator with instructions to counter or reject the offer on the table. * This negotiating process may include negotiating the sales terms (usually price) and/or negotiating for additional payments from the seller, either at the table or over an extended period of time, post sale. * There may be multiple layers of approval, especially if losses are significant for the bank. Also, many times the servicing bank is not the investor. So, once the servicing bank makes a recommendation for approval, the investor(s) will also need to make the same recommendation. They may or may not request additional BPOs or appraisals. Each additional layer of review increases the time the process takes. Each item that must be negotiated also increases time frames. Once the bank agrees to the short sale, a letter is sent to the seller outlining the terms of the sale that have been agreed to. Then, and only then, can settlement take place. For buyers, this process is a big "hurry up and wait" experience, and then more rush to get to the closing table. Generally, banks require closing must happen inside of 30 days from the date of their approval. Because of the time involved, many buyers fall out. They become disenchanted with the process and move on to another home. For this reason, many short sale listing agents prefer to have a few back up offers in place. The trick here is getting the back up offers to have the same price and terms as the original. Also, if primary buyers drop out because of lack of interest, you can be certain that secondary buyers are even less attached to the home. In my next posts, I will break down concerns buyers and sellers face and how to minimize risks and make the most of these types of sales. Stay tuned.

Money Trees Are Almost Bare!

FREE MONEY!! The FHLB Money Trees are almost bare! If you don't know what I am talking about, please read my previous post: http://therealestatewhisperer.blogspot.com/2009/06/free-money-for-your-home-purchase.html One of my lenders still has some funds left. This is a 5:1 matching program; for every $1K you put in, FHLB adds another $5K to it. Yes, they put in 5 times what you do! Income do limits apply. Contact me right away for more details! Please hurry!! As you can imagine, free money goes quickly; and the money trees are almost bare!