3 Step Approach to Selecting the Right Property

As real estate markets expand and contract, Buyers adopt different characteristics.  For example, in the three years following the bursting of the real estate “bubble,” the supply of homes (inventory) on the market was very high.  Instead of seeing the top 5-6 homes matching their needs & wants criteria, Buyers wanted to see as many homes as possible.  This approach reflected an “I don’t want to miss anything” mentality.  In addition, with so many homes available, Buyers tended to lack a sense of urgency and believed that the home they were considering would be available when they were ready to commit.  Unfortunately, Buyers learned that homes that are priced right based on market conditions will always sell quickly.  So, in many cases, the lack of urgency resulted in the loss of a great home option.

Today, in the Savannah real estate market, inventory is much tighter.  Homes are selling faster.  To capitalize on current market conditions, Buyers have to change the way they enter the home shopping process.  Specifically, Buyers should consider a proven “3 Step Approach” to selecting the right property, enabling them to act quickly when an opportunity arises.

Step 1.  Approach the home buying process objectively.  Yes, I know, buying a home is often more of an emotional decision than a financial decision for many potential homebuyers.  Objectivity is difficult to attain.  Nevertheless, there is no such thing as a “perfect home.”  I’ve worked with clients who built custom homes with significant input on design elements and, a year later, wished they had tweaked their own plans a little for this or that feature.  When a Buyers sits down with a Realtor and develops his/her needs & wants list, it is the Realtor’s challenge to seek and find homes that meet as many of the Buyer’s criteria as possible.  Success is generally declared if a Buyer can achieve 85% of the list, particularly if all the “needs” portion of the list are covered.  In any market, the good homes go quickly.  Buyer’s must accept that premise.  Doing so avoids a stall in the buying process driven by the “second guessing syndrome,” commonly referred to as Buyer’s Remorse.

Step 2.  After viewing each property, a Buyer should ask 3 important questions:

a.  What did I like about the property?
b.  What, if anything, would I want or need to change?
c.  If the price were right, could I see myself owning this property?  If yes, at what price?

I always encourage taking notes during a property showing.  This not only helps the Buyer focus on what he said he wanted, it also helps the Realtor gather helpful notes for feedback to the listing agent.  Further, if the properties viewed hit the Buyer’s needs & wants list, but the Buyer is answering “No” to considering the home as a viable option, the Realtor can then re-address the list and evaluate other key requirements the Buyer has not yet verbalized.  I often joke with clients that, at the end of every showing, I will ask, “Do you want to buy it?,” and then make them give reasons why the home does not work for their needs.  This process is helpful in continuing to clarify what the Buyer wants.

Step 3.  Remember you have 3 safety nets available.  The first is the Buyer’s judgment as an educated/informed Buyer.  One of the key purposes of the Buyer’s Orientation is to begin that educational process.  It may also include an orientation of what to expect in the desired neighborhoods, which helps a Buyer quickly grasp the value of a home during a showing in terms of its price and condition position within the neighborhood.  The second is the customized market analysis and review of public data that is done by the Realtor with the Buyer at the time of preparing the offer.  The data offers solid evidence of what terms are most appropriate for the transaction, helping the Buyer have a solid foundation of knowing that what is being offered is reasonable.  When data is insufficient due to lack of recent market activity, the Buyer has a third safety net available to gain security in the deal, i.e., the Appraisal Contingency.  Working with a good Realtor takes much of the insecurity out the process.

If you are considering a home purchase or would like to know more about the buying process, I’d be delighted to assist you.

Advantages of Using a Realtor

With the real estate market stabilizing somewhat, Sellers who are on the borderline between making a net profit or loss on a home sale are sometimes tempted to try to sell on their own.  These “For Sale by Owner” (FSBO) scenarios are filled with the potential for liability and financial risk.  Suppose a Seller is comfortable with these possibilities.  Is there any other reason to list a home with a Realtor?  The reason Sellers list a home with a real estate agent lies in the services the Realtor provides.  In effect, the Seller is buying the benefits of the Realtor’s contacts, experience and knowledge, all of which can make a home sell more quickly, possibly for more money and definitely with less trouble than by going it alone. When potential clients want to know what a Realtor brings to the transaction, I mention a few key characteristics that I bring to the table:

Knowledge.  Real estate agents have knowledge of the market that will help in pricing a home accurately. An overpriced home will sit while those around it sell. On the other hand, an under priced home may move quickly, but the Seller won’t get the profit they could have.  Striking a balance and maximizing the financial goals of the client is a skill that comes with both experience and a keen interest in market dynamics.  Moreover, experienced Realtors excel in process management.  The majority of what needs to occur in a real estate transaction is familiar territory to a Realtor.

Objectivity.  A good Realtor has training about how to market a home and can suggest changes that will make a home more appealing to Buyers. Some of these may be as simple as moving a chair to make a room more accessible. Others may be more time consuming clean-ups or repairs. Following an agent’s suggestions will result in a home being in tip-top shape and less likely to raise concerns in Buyers. Face it, a Buyer who notices one repair unmade will start looking for others. The Realtor is objective about the home and will see it with a fresh eye. Sellers may have lived with cracked porcelain or a missing doorknob so long that they don’t even notice. Objectivity also permits the real estate agent to respond rationally to any criticisms of the property that Buyers may make.

Contacts.  The majority of houses are bought and sold through real estate agents.  As a result, FSBO Sellers cut off a large number of the Buyers that Realtors have in the queue.  Even more important is the contact solicitation through exposure of the property.  A Realtor places the home in the MLS or Multiple Listing Service. Information about the home goes into a computer network that is instantly updated and, depending on the agent’s on line marketing focus, gets syndicated to potentially hundreds of other websites where Buyers search for homes.  Making the home easily findable and searchable on line is critical, since over 80% of home searches start on line.  Other sources of contacts include Relocation referrals, usually available only to real estate agents.  In addition, the Realtor’s brokerage virtual and/or physical caravans are another source of contact.  There are a plethora of other sources of contacts and leads accessed by Realtors that are not accessible to FSBOs.

Security.  A question that sometimes keeps Sellers up at night is this:  Just whom are you letting inside your home? Most people would not normally open the door to a total stranger and let them walk through their house, but that's what FSBOs do.  Even if the person looking at the home intends you no harm, he/she may not be a serious home shopper. Realtors pre-qualify customers as to price range and seriousness before committing to s will commit a lot of time spend with them.  Therefore, working with a Realtor ensures that few, if any, non-buyers enter the home.

Availability. A home listed with an agent is on the market all the time. Agents have cell phones and offices backing them up (and seem to work 24/7).  The lock box that agents use allows your home to be shown whether you are available or not.

These are just a few of the many attributes a Realtor brings to the table.  They build a foundation upon which all other tasks are laid and serve as valuable advantages in the real estate transaction.

Meet Florence Martus

One of Savannah’s legends is Florence Martus.  She is probably known more by her knickname, The Waving Girl, memorialized by sculptor Felix de Weldon.  Her monument faces the Savannah River from Morrell Park on the riverfront.  Martus was born in 1868 on Cockspur Island and was the daughter of one of Fort Pulaski’s sergeants. From the age of 19 until age 63, Florence served as the unofficial greeter for all ships that entered or left the port of Savannah.  For those 44 years, she waved her handkerchief by day or lantern by night to greet passing sailors and never missed a ship.
No one is sure why she decided to be the Waving Girl.   She lived were her brother on Elba Island, where he was the light keeper.  Life in her remote island cottage was lonely and Florence had a collie as her companion, who stood watch with her.  She died in February of 1943 and shortly thereafter, a 1943 Liberty ship SS Florence Martus was named in her honor.

Getting Yourself “In Shape” to be a First Time Homebuyer

Buying your first home can be one of the most exciting events in your life.  Certainly, it will likely to be the biggest purchase you have made up to that point.  Everything in the process will be fresh information and can often send the calmest individual running for the pharmacy.  However, being a first time homebuyer doesn’t have to be so stressful.  The first step is to have a buyer orientation session with the Realtor of your choice.  During that orientation, the following topics will be discussed so that you can get in shape for the process:
1.  Getting pre-qualified (or pre-approved) by a mortgage loan officer. 
2.  Reviewing the necessary funds for the transaction, including up front costs as well as what to expect at the closing table.
3.  Identifying sources of down payment funds.
4.  Outlining the “do’s and don’ts” of money management during the process.
5.  Drafting a preliminary negotiating strategy based on the buyer’s timetable & available funds.
6.  Completing a needs assessment of home features, neighborhoods, and amenities.
7.  Making a plan to transition from a lease to a purchased home.
8.  Evaluating an overview of the entire buying process and sample contract.
Taking these steps gets a buyer 90% of the way down the road to success, eliminating unnecessary bottlenecks and accompanying anxiety, and leaves the buyer ultimately free to enjoy the excitement inherent in owning a first home!  If you are thinking about making your first purchase, call me.  I’d be delighted to review these topics and answer any questions you might have.

Oktoberfest on Savannah River

The Rhinelanders

Chicken dance anyone?  Where else can you watch weiner dog races, children dressed up like weiners race, and dance like an idiot?  Well, on Savannah’s River Street, of course.  Today’s Oktoberfest activities were enjoyed under a glorious blue sky.  More is planned for tomorrow!  Be there!
   
     

Historic Savannah Details: Look Up!

No matter which block of downtown Savannah you walk, there are always surprises if you just look up!  Many of the historic buildings have design features that are sure to impress.  Here are a few of my favorites.

25 Easy Ways to Make Your Home Sell Faster

1.  Create a positive mood.  Turn on all lights, day and night, and install higher wattage light bulbs to show your home brightly.
2.  If you have a fireplace, highlight it in your decorating --- even if you never thought of it as a focal point in the past.
3.  Keep your home dusted and vacuumed at all times.
4.  Have a family “game plan” to get the home in order quickly if necessary.
5.  Air out your home for one-half hour before showings, if possible.
5.  Lightly spray the house with air freshener so that it has a chance to diffuse before the buyer arrives.
6.  Put family photos in storage.
7.  Improve traffic flow through every room be removing all non-essential furnishings.
8.  Putty over and paint any nail holes or other types of damage in the walls.
9.  Clean all light bulbs and light fixtures.
10. Wash all windows inside and out.
11. Make the most of your attic’s potential.
12. Remove and/or hide excess extension cords.
13. Open doors to areas you want potential buyers to see such as walk-in closets, attics, cedar closets, etc.
14. Microwave a small dish of vanilla twenty minutes before a showing and place it in an out of the way place.
15. Highlight an eat-in area in your kitchen with a table set for dinner.
16. The kitchen and bathrooms should always be spotlessly clean.
17. Expand your kitchen counter by removing small appliances.
18. Organize your closets and pack away the off-season clothes.
19. Replace shower curtains and keep them clean.
20. Put out fresh towels and decorative soaps.
21. Use flowering plants to dress up the yard, walkway, and patio.
22. Paint all entrance doors.
23. Clean and shine all hardware and accessories indoors and out (door knobs, knockers, lamps, mail box, address numbers, etc.)
24. Use a new doormat.
25. Be sure the doorbell is in good working order.