Recently I had the pleasure of spending some time with a homeowner who is planning to put his property on the market. I had done my homework, and even had a listing agreement filled in except for a few key items. I was ready to take the listing on the spot, and begin looking for a buyer. However, the homeowner was on a different schedule, and not ready to sign. He still needed to "think about it." (How many times have we heard that?)
Since then he has shown me the courtesy of phoning me to let me know he is still going to list his property -- but not necessarily with me. He has also interviewed another broker and agent, and they gave him some reasons why he would be smart to list with them, and he was highly impressed. But I am still on his short list.
I told him there's nothing wrong with shopping around for a broker -- what else could I say? -- and I reminded him of things I do for my clients that my competitors don't, and the advantages of listing with me. Finally, I told him to follow his intuition, go with his gut, and he probably would make the right choice.
In his frame of mind he probably would be turned off by being told he is going to make a mistake by not listing with me. It would come across as a sort of cheap shot at my competitors. Instead I assured him that they are very capable REALTORS, like myself, and I will respect whatever decision he makes.
What I did not tell him, but what I was thinking, is: He's placing too much weight on the personalities of REALTORS and, possibly, making a decision by indecision. If he had signed the listing agreement when I visited him in his home, we would have kick-started the marketing process and, probably, by now would have shown the property at least once, maybe more times. He has lost marketing time which might have been profitable to him.
What I know, that he may not know, is that we brokers and agents in our small MLS here in rural southern Georgia have similar marketing plans and strategies to a large extent. I offer my clients some advantages my competitors don't offer, but let's be fair about it: they can make the same claim. When you distill the comparisons down to their essence, we all do pretty much the same things for our clients and achieve pretty much the same results.
Three things that set me apart are: 1) My listings get more Internet exposure by far than my competitors' do, 2) I give my buyers who are pre-approved for financing a one-year home warranty, which serves as an incentive for them to buy my client's house, and 3) when I procure the buyer myself, and there's no commission split, my client gets a nice break on the commission. As I told the gentleman, I'm the only broker who does those things for him, and I do them voluntarily. My laid-back demeanor, or another broker's more animated style, won't make or break a deal.
What I'm looking for is a motivated seller who has his property priced right and ready to market, and a motivated buyer who likes what my seller is offering. When I bring the two together, good things happen.
Years ago I stopped saying that I "sell" real estate. Realtors don't sell real estate; they market it. The only one who can sell real estate is the owner, the title holder. Thus the owner is usually called the "seller" for a good reason. The owner sells the real estate; the Realtor assists by marketing it.
True, the Realtor employs selling skills when listing property or showing it to buyers. But it's the owner who needs to prepare the property to be marketed by the Realtor. The owner makes it a sellable property; otherwise, the Realtor's marketing will be in vain. If the owner wishes to attract a buyer, he or she must make the property attractive. The Realtor then markets an attractive property, and there's a good chance it will attract a buyer. The owner may then sell the property.
In today's tight real estate market, it's more important than ever to make your real estate for sale attractive. You're competing against a huge inventory of unsold properties including many foreclosures. Buyers are cherry picking and looking for bargains. To compete, you as the seller must make your property as attractive as practicable.
Many improvements to real estate for sale don't cost much, and have the potential to pay for themselves many times over. A neat yard is inviting to a buyer; a messy yard is a turn-off. A coat of paint can make your house much more attractive than your competition down the street. De-clutter the inside of your home so the buyer will see its good features, not its mess.
In one sense, houses sell themselves. If your house is attractive, the buyer will be favorably impressed. The Realtor will make sure the buyer appreciates your property's good features, will answer all questions, and will tactfully move the buyer toward signing an offer to buy. On the other hand, if your house is not attractive, nothing the Realtor can say will make the buyer like it. Unless you're trying to unload a dump at any price, prepare your property to sell at market value.
What's market value? You and your buyer are going to determine that when your property actually sells. Ultimately, it's you who sells your property. To get the best price, give your Realtor an attractive property to market for you, a property that will attract a buyer who will pay you a fair price. The Realtor markets your property; only you can sell it.
For help marketing your property, email: michael@michaeldixonrealty.com; phone 229-924-3089.
Because ... what saves me money saves you money, and at no reduction in the quality of service.
To conduct a real estate brokerage business, you need a telephone, computer, Internet connection, printer, copier, fax machine, scanner, camera, and that's basically it. Oh, yes, you must be licensed by your state.
When I started my own company, I wanted to have a lean, low-overhead operation. By doing business out of my home, I eliminated typical operating costs of brokers such as a mortgage payment or rent for a building, utility payments, insurance, maintenance, secretary, and the other expenses the average broker has.
I take documents to you in your home or office. If you wish to come to my home, you can sit at my dining table and sign papers. It works, and it saves money. That's how I can offer full service at less cost to you. Please ask me about my business policies, and read my comments addressed to Sellers and Buyers on my home page.
Frankly, I don't know why real estate brokers and agents think they must maintain an expensive bricks and mortar business location when business today is conducted electronically, and a casual setting works as well as a formal one.
A good working relationship with your real estate agent has at least one thing in common with a marriage: to be successful, it requires a commitment by both parties. If the parties begin as strangers, they must step out on faith, gain trust in each other, and commit to making the relationship work.
This commitment may be unspoken or unwritten, but it must be there nevertheless. It must be mutual. Neither party can withhold commitment to the other if they expect their working relationship to have a positive outcome.
A Realtor's commitment to a "customer" or "client" -- the difference is important, and will be explained below -- is based on Article I of the Code of Ethics that every REALTOR must uphold:
"When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly."
That word "honestly" is key. A REALTOR is obligated to treat all parties honestly. This means, in large part, being truthful and open with information that buyers and sellers are entitled to know, and need to know, to make informed decisions. REALTORS are committed to uphold this standard of practice.
Notice that REALTOR is capitalized. That's because it is a registered trademark, and is correctly written in all capital letters. A REALTOR is a real estate agent who is a member in good standing of his or her local, state and national associations of REALTORS. To be a REALTOR, one must not only be licensed to practice in the field of real estate but must pay annual dues to the local, state and national associations.
To retain membership in one's associations, he or she must uphold the National Asociation of REALTORS Code of Ethics and must have a minimum of 24 credit hours of continuing education every four years. Licenses must be renewed every four years with proof of meeting the continuing education requirement. This is part of the REALTOR'S commitment to maintain professional standards in serving customers and clients.
What's the difference between a customer and a client? When a REALTOR enters into a listing agreement with a seller, that seller is the REALTOR'S client. The REALTOR is pledged to represent the seller, to protect the seller's interest in negotiations, and to keep confidential matters which can lawfully be kept confidential between the seller and the REALTOR.
A buyer is a REALTOR'S customer unless the two of them have entered into a written agreement wherein the REALTOR will represent the buyer, protect the buyer's interest in negotiations, and keep confidential matters which can lawfully be kept confidential between the buyer and the REALTOR. In the latter case, the buyer is the REALTOR'S client. Buyers who become clients of REALTORS take upon themselves some legal obligations that customers don't have, but they may decide it is in their best interest to be represented by a REALTOR and therefore to be a client.
A REALTOR is not obligated to enter into a client relationship with a buyer, buy may do so if it seems in the best interest of both parties.
Underlying any good working relationship is trust and commitment. Get to know your REALTOR. Commit yourself to a positive relationship, and expect a positive outcome. At the very least you will acquire a new and trusted friend.
Two topics some home buyers and sellers may have questions about are 1) what is a multiple listing service (MLS) and 2) who pays the real estate sales commission?
A multiple listing service, or MLS, is an association of real estate brokers and their agents in which they cooperate to show and sell each other's properties. Let's say, you list your home with ABC Realty, and an agent from XYZ Realty shows it and gets an offer from the buyer.
You and the buyer enter into a contract or a Purchase and Sale Agreement as we call it in Georgia. When the sale is closed, the commission is split between the two companies. By cooperating, both companies were able to earn part of the commission at no additional cost to you or to the buyer.
If you were the seller, the MLS helped you find a buyer for your property by making it easy for all members of the MLS to show and sell it. If you were the buyer, the MLS helped you find the property of your choice using only one Realtor.
What about commissions? How are they set, and who pays them? The commission is a fee charged by the broker for services that result in the sale of real estate. The property owner and the broker agree on a fee, or commission, at the time the property is listed with the broker.
The closing attorney deducts the commission from the seller's proceeds and pays it to the broker. In many cases, it is paid to two brokers who cooperated through their MLS.
There is no "standard" real estate commission, and the amount is negotiable between the seller and broker. A typical commission in the Americus area is 6 percent of the selling price. When two companies are involved in a sale, the commission is split, usually 50-50, between them.
In the case of a split, or shared, commission of 6 percent, each company will receive 3 percent of the selling price. Within each company, if the property was listed by an agent or sold by an agent, that 3 percent commission is again split between the agent and the broker.
But ... first the broker will deduct a percentage of the commission for operating expenses, so the net commission will be less than 3 percent. Therefore, the broker and agent will share a very small percent of the selling price.
Does the buyer ever pay the commission? Yes, in cases where the seller is not obligated under a listing agreement to pay it. For example, if a buyer is working with a Realtor and finds a For-Sale-by-Owner house, the seller may refuse to pay a commission. For the Realtor to be compensated, the buyer will have to pay a commission on top of the purchase price.
In FSBO cases, the Realtor will attempt to get the seller to pay the commission. But if the seller refuses, the Realtor must get the commission from the buyer. Usually they will be in an Exclusive Buyer Brokerage Agreement in which the buyer is committed to pay a commission if the seller will not pay it.
In the majority of cases, the seller pays the commission according to the listing agreement, but now and then the buyer must pay it.
Next time you leave a tip of 15 or 20 percent on the table for your waiter, please remember your Realtor who performs a valuable service for a much smaller "tip."
Your Realtor will be glad to answer your questions and help you understand the buying and selling process. Just ask. Believe me, we Realtors want to work with informed buyers and sellers.
In closing, let me remind buyers of a very important point: Your first contact, before you look at properties, should be your mortgage lender. Get pre-approved for a mortgage loan amount, and then get with your Realtor to find a property in your price range.
As a real estate buyer, you will have the confidence of knowing you will be able to obtain financing when you find the property of your choice and sign a purchase contract.
AND ... please work with a local mortgage lender whenever possible. Your lender, like your Realtor, should be a member of your community who knows you by name, and wants to be your friend in the buying process.
Supply continues to exceed demand for the inventory of listed properties in Americus, Ellaville, and the surrounding area. While several listings expired at the end of 2009, some of those will be renewed. We began the new year with 156 residential listings, down from 163 on the last day of December. Land listings dropped from 87 to 75 while commercial listings held steady at 26.
The number of qualified (meaning able to get financing) buyers on any given day can be counted on one hand. It's no wonder we have so many unsold properties. Many have been on the market a year or longer without an offer.
Realtors and their sellers may hope that the real estate market will be like the natural world in the spring, and come back to life. As a business person, I'm supposed to be optimistic and upbeat, and tell you the market will soon bounce back. Well, sorry, but I don't think it will in the first half of 2010. No rose colored glasses here.
I won't pretend to be an economist and give you all the reasons for my less-than-optimistic stance. Let's just say, the indicators give me no reason to think we have yet hit bottom in this recession.
Unfortunately for sellers, market conditions do not bode well. For qualified -- there's that word again -- buyers, it's a time to bargain for the best deal, and keep more money in your own pocket.
It's a good time for investors who buy low-priced houses, rehab them if necessary, and rent them out. The demand for rentals has skyrocketed in the past year. Half of my calls are from would-be renters.
As just one example of the properties investors can buy now, I have a brick house at 205 Rucker Street in Americus with two bedrooms, two baths, and 1,480 square feet, priced at $39,500. The out-of-state owner wants to unload it. Granted, it would take $10,000-$20,000 to upgrade bathrooms and kitchen, replace floor coverings, and turn this house into a really nice home, but the return on investment probably is there for the savvy rental manager.
Many gems like this one need to be polished up, and made available to a waiting rental market. If you might like to see any property in the Americus area Multiple Listing Service, regardless of the listing company, call me at 229-924-3089.
Please visit one or all five of my real estate websites. There's michaeldixonrealty.com or clientrealty.net, to name but two. Let me advertise your property for sale in Premier Monthly magazine, which is distributed monthly to over 3,000 locations in eight Southeastern states. See it online at premiermonthly.com.
Times are hard. Consider my lean, low overhead, Internet-based real estate company. So much of a buying and selling transaction is done online -- electronically -- that the need for a physical office building is less and less every year.
Now, more than ever, we need to economize -- but with no sacrifice in the quality of services rendered. For a better idea of what you should be getting from your real estate company, visit my website -- http://michaeldixonrealty.com --and read my guarantee.
Among your other benefits:
My buyers who are pre-approved for a mortgage loan get their choice of a home warranty for the first year they own their home, or a Lowe's gift card of comparable value.*
My sellers get a one-year warranty while their house is on the market, transferable to their buyer, or a Lowe's gift card -- their choice.* My seller's also get a break, which they will find in the Special Stipulations on page 5 of their listing agreement.
This is Real Estate Today.
*Conditions apply.
Ready to open an office, or move up, and you want a great location in Americus, Ga.? You may have found it at 104 West Lamar Street, former home of the Americus-Sumter County Chamber of Commerce. This 1920s vintage building with its inviting front porch is being offered for sale at $195,000.
It is located just one block east of the new Sumter County Courthouse on West Lamar Street, which is US Highway 280 as well as Georgia highways 27,30 and 49 through Americus. It is across Hampton Street from the headquarters of Habitat for Humanity International, and two block west of the Windsor Hotel, an Americus landmark.
See photos and details of the building at http://michaeldixonrealty.com. Call Michael if you need more information or would like to see the building. 229-924-3089.
Our inventory of unsold properties in the Americus area remains high -- a great opportunity for qualified buyers. Serious buyers always talk with a mortgage lender and get pre-approved for a loan before venturing into the real estate market. They want to know in advance they can get the needed financing when they find the property of their choice. (Sellers want to know it, too.)
If you're that exception to the rule, a cash buyer, good for you. You probably have more bargaining power, and can get a deal closed sooner with cash.
You can always see all of the properties for sale through real estate companies in the Americus area by visiting the website: www.americusareamls.com. If you find one or more properties you would like more information about, call Michael at 229-924-3089, or email: michael@michaeldixonrealty.com.
The former Chamber of Commerce office building, with approximately 2100 square feet of heated and cooled area, might provide the attractive office space you need. Let's look inside and talk about it.
Do you get frustrated looking for real estate for sale online? If you're looking in the Americus, Ga., or Ellaville, Ga., area, you can quickly see every listed property on the Multiple Listing Service website: www.americusareamls.com. This is the website of the Americus Board of Realtors. It lists every residential, commercial and land property for sale through the real estate companies in the MLS.
Currently there are between 165 and 170 residential properties listed. There are 70 land properties, and 27 commercial properties. The inventory of unsold properties is the highest it has ever been in the Americus, Sumter County, Ellaville and Schley County area. This means, if you are pre-approved for a mortgage loan, you are in a position to negotiate a good deal on a house, building lot, or large tract of land.
A Realtor can be your best friend when it comes to finding and negotiating the purchase of real estate. Best of all, the Realtor's services are free to you, the buyer. It's the seller who pays the Realtor a commission for finding you, the buyer, and putting a deal together. If you aren't working with a Realtor, you may not hear about properties that you'd be interested in, and you may not get some professional advice that a Realtor can offer.
You can relate to your Realtor in one of two ways. You can be a "customer" or a "client." There's a big difference. If you are interested, you can visit a new website -- www.americusgarealestate.net -- and ask questions. As host of the site, I'll answer your questions. However, anyone may provide not only questions but also answers. They also may post notices of community interest. Create your own password, login, and visit the site as often as you want to.
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