Columbia SC Real Estate Blog

This is the unfortunate situation that we hear daily. The full service people most of the time say we are so sorry, but we can’t reduce commissions due to our company policy. They tell you how much ineffective marketing cost them, and tell you how hard they are going to work for you.  They can tell you that you will make more by selling with them. I wish this were all true, but it is not. The world and the world of Real Estate are changing. Many people are underwater in their homes, meaning they owe more then the house is worth. Many cannot afford to meet their payments. Some have stopped making their payments. Fear is rampant and the property values around them have gone down due to foreclosures, short sales, and people reducing their prices.  We have reduced our price on our home $29,000 and still no offer. Next week we reduce it another $3,000. As a Broker I received a call last night from an appraiser who appraised one of my listings several months ago for less then the sales price. The seller balked at it, but accepted it as the house was vacant, uninsured, and had been on the market 18 months. I said they had to be foolish to let this go after refusing 3 other offers.  We’re seeing this locally, even with Aiken SC New Construction Homes in the area.

So what can the seller do? They can rent out the house, do a Lease-Option, go By Owner, or use a Flat Fee Listing Company. Each has its pluses and minuses. For some, renting is too much of a hassle and they must sell to get another house. A Lease option has the same drawbacks and the chance of the person with the option of getting a mortgage may not happen. By Owners can save the most commission, but mistakes and length of marketing may be a negative.

Enter the Flat Fee Broker. The Seller can maintain the By Owner option, and be listed on their local MLS, local agent sites, national Real Estate Sites, have local MLS security lockboxes; get professional assistance and photography options for a fee rather then a commission. Imagine on a $200,000 saving $11,500 or more in commissions with this service.  That would pay a significant amount of a mortgage payment in their next purchase. They could be more competitive in pricing their homes, give agent incentives that bring buyers, or offer closing costs. Their location, and condition of the house doesn’t change with the full service commission, just what they will net.

Flat Fee Pricing in Real Estate will become more commonplace as Sellers search a viable option to sell their homes with similar exposure that is most effective.

If you go to court you want a lawyer. If you want plastic surgery, you want a Plastic Surgeon. If you want an audit, you want an Accountant. If you are buying a home, you want a Buyer’s Agent. What can a Columbia Real Estate Agent do for me? First they can protect you in the transaction. How do they do that? They suggest various inspections such as: termite, home inspection, radon, lead, septic, and well are some of the more common ones. They help analyze Property Disclosures, and get clarity on questions that are ambiguous. They encourage reviewing deed restrictions, and homeowner’s fees, and assessments. They encourage Home Warranties to protect you from breakdowns.

Regarding offers, they are knowledgeable about what the seller paid for the house, the seller’s mortgage balance, price changes, days on the market, comparables in the area, and the better locations, schools, and condition of houses that is most marketable. They recommend advice regarding the seller paying closing costs and the fee for warranties. They are skillful in writing contracts favorable to you.

Protection, Help in getting the best deal, and using the REAN not only is the service free to you, but we pay you a rebate up to $6000 for using our services.

Rea Inc. Our parent company started using Buyer Agency 18 years ago because they thought Buyer’s and not just sellers needed representation in this complex world of Real Estate. We try to be the objective voice on the individual’s most expensive purchase typically in their lives.

Experience the difference with REAN, where Our Principles come Before Our Profits.  Consider as a seller a Columbia Flat Fee Real Estate Sale or a Columbia Home Buyers Rebates.

SIGNS AND PHOTOS ARE MOST IMPORTANT AFTER THE MLS & INTERNET

Columbia, SC – We are amazed at how many people list for full commissions and have no clue that their agent put no photo or one photo of their house on websites. Other then physically being in the home, photos are the best way to show off your home. You can insist on multiple photos on websites. If the agent resists, get a new agent. Slide shows are effective as well as virtual tours.  Columbia Real Estate have sold homes never seen live where only photos were viewed. In the digital age, if you are skilled, you can provide the photos. Make sure you monitor to make sure they are on the MLS and other sites. You can pay a professional photographer if the agent doesn’t provide this valuable option. Take outside shots of the neighborhood if there are attractive features. People buy neighborhoods and not just homes. Ponds, tennis courts, pools, trees, golf courses, water, docks, play grounds, trails, are all selling points. Label the photos to impact further.

Signs are a big winner in Columbia SC neighborhoods with signage if they get drive by traffic, especially with Columbia SC Rent to Own or Columbia SC Lease Option properties. The sign should be tasteful and not taken down if you receive a contract until you close. Remember never allow an agent to put a contract pending or sold on the sign as deals fall through and this stops people from calling. Get a 24-hour info-line option that describes the house and has a caller ID to follow up on calls to the Info-line. We have sold many homes with this feature. It is more effective then flyers then run out or get wet. It allows tracking 24/7/. You can show enthusiasm with features through your voice that does not come through with flyers. Write out a script to not overlook important details yourself for the recording.

There is a saying that ”Cash is King”. For those people who have cash, Columbia SC Real Estate can be a very good investment. I am seeing investors loaning money for 1^st mortgages at 12-15% on secured 1^st lien positions with a low loan to value position. An example would be a loan of $50,000 to a homeowner needing cash on their paid up home valued at $225,000. The homeowner who has credit issues pays monthly interest of $500 on a two-year note with the house as collateral. That is a very good return with the house as security. If the seller defaults the investor gets the house. If the payments are paid timely everyone is happy with the deal.

Before entering such an agreement make sure the value of the house is there via a Realtor market analysis or an appraisal. Make sure that the seller has title and there are no liens on the property. It is important to have insurance as a prerequisite for the deal with all closing costs being paid by the Homeowner. Of course you want an attorney to close the deal with title insurance protecting you and a survey. It is best that you physically go to the house to check out the condition and location to determine what the house is about. I don’t suggest doing blind deals. Next you want to find out the financial capability of the Homeowner to determine the likelihood of their servicing the debt. People have credit challenges for a variety of reasons and getting loans from banks are much more difficult today.

Also, consider a Columbia SC Rent To Own scenairo or Columbia SC Lease Option.  A good place to advertise to secure these types of loans is on the Internet. Craig’s list is one venue to put an ad under Real Estate loans. State your terms specifically to attract those people that you find most desirable. There are many people looking to borrow and fewer investors to lend. You are in the drivers seat and can dictate the terms you feel most comfortable with.

As far as tax consequences, interest income is not subject to social security. Depending on when you structure the deal you can even have balloon payments at a certain time, or in intervals reducing the principal and risk. I strongly advise always having a first lien position to avoid possible foreclosures and getting shut out at the closing table.

There are very few Columbia Real Estate sellers smiling about selling their home. Prices continue to plummet with little positive indicators around the country of turning this downturn around. Unemployment has risen, and mortgages are harder to get. People who might be buyers can’t sell their homes. What is the answer for today’s seller? The answer depends on what are your needs versus your wants. Simply stated, do you have to sell your house or do you want to. Are you required to move due to financial necessity, job change, going to school, health issue, or a family or personal matter? Or, do you just want to move? One is more of a have to, and the other falls into the want to category.

If you have to move flexibility is the key. In Columbia Real Estate You must try everything possible to make it happen. You know the basics: get an inspection, clean, de clutter, and fix. And get a flat fee Broker that allows you to price the house below your competitors. If you have some time to market yourself, get an appraiser to help you determine a price. Be prepared to lower the price, offer closing costs, agent bonuses, and allowances for repairs or updating. Whatever it takes to move on if you have to. You must get it out of your head that you will not sell at a loss. If you can afford to lose and move on you can make it up. Staying is not an option is the key to selling. Regardless of your initial sales price be prepared for lower offers. Remember, do not take it personally, this has to be a business decision.

If you don’t have to move, consider renting, lease options, or owner financing if you are able. How much do you want to move? This is the classical risk and reward scenario. If you can’t sell, consider making some renovations or adding on to your home. Be careful about over improving and consider if the improvements will make you want to stay and enjoy your home.

Broker Bob Mandel, Real estate Advocates Network

Our Principles Come Before Our Profits

Many agents if in the library would fall more in the Fiction section than in the Non-Fiction one. The Agent, Promoter will tell it more of what you want to hear, rather then like it is. Let’s try to dissect the truth from the fiction. To begin, all agents, like people, are not created equal.  Many have integrity and try to do the right thing and many do not. Remember, people are in business primarily to make money, not to serve others and work for nothing. The typical agent only makes money when they close a deal. In the business listings are the best way to get buyers to use your services as an agent to buy your house or another one from your listing agent.

Where does the fiction begin? Typically, it starts with the agent making you think they have more experience and sales then they actually have. A number of agents have one or 2 weeks of training and few sales annually. You may socialize with them, go to church with them, or they may be suggested from a common friend. The facts are these are not good indicators of their ability or success. A better indicator would be some record of their longevity in the business and a computer printout of their prior sales. This is readily available in most MLS’s data banks. Check out the price ranges and locationsthat sales were accomplished by the agent. If the agent gets defensive about sharing this with you, don’t use them. If you are shy about this, blame it on your boss or mother.

The fiction continues when agents tell you that they can get you more than your home is worth. This is rhetoric designed to get the listing. When the house doesn’t sell, the line comes across you are priced too high. They knew it to start with, but they wanted to have the listing to manipulate you to list with them. A way to check on the price objectively is have an independent appraiser appraise the house before you list.

The rest of the stories revolve around marketing. They promise you a lot. Much of it if they do it is worthless as far as getting buyers. It is promotional. Open houses, newspapers, agent open houses, magazines, and e-mails to agents are very improbable ways to get a buyer. The MLS, and the Internet is by far the best shot. Oh by the way, the agents bragging about selling your house almost never does. They list it and someone else sells it.

Now this is the rest of the story. I list over 100 houses a year and I can prove it. Most are sold by other agents which I tell my sellers. Location, price, and condition sell houses more then the listing agent. And, that is a fact, not fiction.

Broker Bob Mandel, Real Estate Advocates Network

Our Principles Come Before Our Profits

I marvel at the Internet and the information it can provide. The data it can offer to the prospective homebuyer, especially looking for Columbia Flat Fee MLS Listings is huge by any one’s estimate. This article will address how your fingertips can give you much of the information you need to hone in on your dream home. So, lets begin the search and then narrow down the variables that are important to us.

Obviously, location is the first variable. You can search by city and zip code on many National sites such as Realtor.com, Zillow, and Trulia. If you go to a local Company site in the city you are looking at, most have a public access to all of the local companies in the areas listing. Click search MLS and you shall see. Some require you to register and you will get contacted by an agent if you are truthful about your identifying information.  You can often search by subdivision if you are familiar with the area. Next you want to search by price. Get qualified by a lender rather then searching homes out of your price range is the best way to go about this process. You can then search bedrooms, bathrooms, garages, square feet, lot size and a host of other variables. You can view slide shows, and virtual tours to really see what the house looks like.

Now if you want to pinpoint the location, go to Google and do an aerial search or a map search to see what is around the house. If you want to know the taxes on the house it may be in the local MLS or can be found in the county tax records on line. School information is extremely important and can be gotten from county records. You can find out #’s of students, %age that graduate High School, that go to college, and other data such as # of  teachers w/master’s degrees, and #’s that are on public lunch programs. Information is available about average family income for areas of town. If you want to know proximity to hospitals and other public venues search Google under the term you are interested in. Ex. Lexington SC hospitals.  We also suggest finding a Columbia SC Discount Realtor who can save you plenty of money offering Columbia Home Buyer Rebates.

Get agents to e-mail you listings with additional  information like days on the market of the houses you are searching and price changes as well as agents remarks. Knowledge on the Internet gives you power never before available to the consumer at your fingertips.

Broker Bob Mandel, Real Estate Advocates Network

Our Principles Come Before Our Profits

Columbia, SC Real Estate- The fact that we live in a free country gives us many options. We can live where we want to live, and can build a house to look like we want it to look as long as we comply with building codes. That sense of freedom coupled with money and architects can give us tremendous latitude to “Do Our Own Thing”. That sounds great!. Is there a downsize to having this latitude.? Well,—————Could be.

One problem that can evolve with unique and very expensive homes is the upkeep. Sometimes style does not lend itself to practicality. Expenses such as taxes, utilities, and maintenance may be higher as well as functionality. Too many windows could create some challenges from the sun and rain. Too many stairs and angles can prevent some later annoyances regarding cleaning and accessibility. Funky rooms for some become undesirable for others.

Unless you have an unlimited source of funds, the real problem comes about when you are ready to sell. Not everybody shares your vision of the unique house being the house they desire. Couple that with a high price, you have the recipe for a meal for a place sitting of one. You may have a Columbia Real Estate house that is next to impossible to sell. What if you have to move for health, family or business reasons? Taxes go on, insurance is higher, and expenses go on. Now the nightmare of the dream house begins. If you have a mortgage, you may not qualify for another one in these times without selling your house. You are more subject to vandalism and squatters. Maintenance problems can get unnoticed if someone is not visiting the house weekly. You may not be able to rent the house for the cost of keeping it and the renters may not take very good care of it.

Think before you create a house, Columbia SC Real Estate is very competitive. There is something to be said for conforming and thinking in advance for resale and not just for your taste buds.

The quality of your Columbia SC Real Estate Agent is a function not of how much they talk, but what they say.  Some agents are trained not to talk much when representing buyers, or to weigh their talk carefully so as not to say anything that might dissuade a potential buyer from buying or a seller from listing. You must be careful of those sales people, as they are just that, sales people. They are more full of rhetoric then relevant fact sharing that might make you a more informed decision maker. The more you can be your own advocate the better. You need to arm yourself with as much information as you can about agents and the House selling and buying process. That means searching for relevant information regarding neighborhoods, houses, cities, and agents. If the agent doesn’t give you any negatives about your selection process or caveats, be careful. If they are cavalier or cautious when you ask questions, get yourself another agent. This agent is out to make a sale and not looking out for you.

Here are some sample questions to ask an agent about their background before engaging them. How long have you live in the area? What areas do you work? How many sales have you been involved in the past 3 years? What is the average price home you sell, and the price ranges you work with? Ask for documentation. How long have you had your license? Are you part-time or full-time? Do you work as a team with other agents? Are you a Broker? Do you have kids in school or had kids in public school here? Do you show all agents listings from other companies? What are your normal working hours and days?

Regarding selection of a Columbia Real Estate listing agent, you need to ask specific questions about the market. What are the average days on the market? Are prices holding steady, declining, or rising. What is their marketing experience in your neighborhood? Ask them how they are different from their competition. Make sure you get their withdrawal policy if you chose to withdraw in writing. Do they negotiate on their commissions if they get the buyer, or if you do? Make sure you know what they are paying cooperating agents.

For buying agents, similar questions about backgrounds are appropriate. When showing houses ask them what negatives they see. Some examples would be exterior of the house, driveways, size of garages, landscaping, lot size and shape, style, size of rooms and layout, energy efficiency, taxes, insurance, utilities, age of systems, condition of the home, recommendations for inspections and warranties, neighborhood and area negatives. They will tell you the positives, so you may have to ask for the negatives. Information is power if you use it carefully in your decision-making.

For many Americans today they may be staying in their homes longer then they thought. As a result, maintenance can become an issue. In a cash crunch it is easy to try to save and the opposite happens. Here are some suggestions to ward off problems. The old cliché  ”Pay me now, or Pay me later applies”

 If you have a Home Warranty, renew it. This is protection more for the big things that could happen. Read over it and understand there is a deductible. You must call the Warranty Company before calling a repair person as they have contracts with professionals that must do the work. Similar to any insurance, this can give you peace of mind from an unforeseen major expense.

Get your home inspected and under bond from a termite company, or maintain your bond if you have one. Check your papers to see what the bond covers. Is it a treatment only bond, or are repairs included. Moisture issues are becoming more of a concern with mold issues and lawsuits. Better to be prepared then sued if you convey the house.

Have a Columbia SC Real Estate Home Inspection yearly. This can identify energy and safety issues as well as structural and other problems in the house that should be addressed. Taking care of these problems before you sell will be to your advantage. They can check for leaks in the plumbing and Hot Water Heater

Get your carpets cleaned yearly. It is healthier and will keep up their value if you do.

Have your AC serviced yearly. Leaks and inefficiency can cost you more. Make sure you check your vents regularly. Clogged vents make the system work harder and will cost you more then a change of a filter.

Paint, and maintain the yard. When you are ready to sell you will be happy you did.