You have your real estate license……..now what???
In the state of Washington a new licensee must place their license with a Broker in order to practice real estate. This can be a daunting decision. How do you choose a broker or company to work with, what do you look for, how do you choose?
Imagine you want to go swimming. You have found a group of indoor pools. You need to figure out which pool you want to jump into. You don’t want just any pool, you want one that is clean, warm, not too crowded, one that has dry towels and nice showers. Sounds easy right……now you have to choose by looking in the windows you can’t actually go in. If you are lucky you might be able to ask some of the swimmers who are leaving the pool. You ask questions to try to get an idea what its like at that pool. You know that once you make the decision you are going to be jumping into the deep end, so you want to make sure you make the right decision, the first time.
Trying to figure out an office to join can be the same way. If you take the time it can be a little easier in that you will want to interview the manager. You will want to talk with several agents who are working for that office. Talk with a couple of long time agents as well as a couple of new ones.
This is not a time for quick decisions, even though the broker may be pushing you to join. I’ve had agents ask me if it is hard to get a job once you have a license. The challenge is not getting a job offer (many brokers will hire you on the first meeting because they just want to put another license on their wall) the challenge is trying to decide why you might want to work for a broker that is so willing to hire you after only one brief meeting.
Click here for a list of books that I recommend to agents just starting the business.
Friday, December 16, 2005
Monday, November 28, 2005
Before You List...Preperation is Everything!
Thinking about listing your home for sale? Do a walk through with your agent a week or two before the list date. We spend a lot of time talking about “Staging” your home for sale, but what about repairs?
Generate a list of things in your house that need fixed, repaired or replaced before you put it on the market, here’s why:
The goal is not to try to hide anything, rather to address items that are likely to be brought into question and may jeopardize a good offer or at least slow down the closing.
Regarding disclosure, you are typically better off to disclose any issues up front. Buyers will typically feel short changed or taken advantage of if they learn of a pre-existing problem late in the transaction. Most states have a property disclosure statement that needs to be provided by the seller. Filling one out fully and honestly will protect you as the seller by reducing legal issues down the road with the buyer. Talk with your agent or your real estate attorney for specifics in your area.
Generate a list of things in your house that need fixed, repaired or replaced before you put it on the market, here’s why:
- Potential buyers will guess high for the repair, usually 3 times higher than actual cost. They will then try to reduce the price by that inflated amount.
- When the home is inspected it will show up on the inspection report which here again calls into question cost of repair plus one more task that you as the seller may have to accomplish prior to closing.
- When the appraiser comes out the needed repair will only call for closer scrutiny. Example: moss on the roof. A perfectly good roof may be called into question only because the moss on it drew the appraiser’s attention to it, thus forcing him to call for an additional roof inspection.
The goal is not to try to hide anything, rather to address items that are likely to be brought into question and may jeopardize a good offer or at least slow down the closing.
Regarding disclosure, you are typically better off to disclose any issues up front. Buyers will typically feel short changed or taken advantage of if they learn of a pre-existing problem late in the transaction. Most states have a property disclosure statement that needs to be provided by the seller. Filling one out fully and honestly will protect you as the seller by reducing legal issues down the road with the buyer. Talk with your agent or your real estate attorney for specifics in your area.
Wednesday, November 23, 2005
Housing Stats for 11/20/2005
Watching stats like these will help you determine what kind of a market you are in.
For Kitsap County Washington as of 11/20/2005
953 Active Listings
72 Homes went Pending last week
52Average Days on Market
$278,189 Average List Price
$275,704Average Sale Price
99% List price to sale price ratio
13.23 weeks of inventory
Learn more about Defining Your Market.
For Kitsap County Washington as of 11/20/2005
953 Active Listings
72 Homes went Pending last week
52Average Days on Market
$278,189 Average List Price
$275,704Average Sale Price
99% List price to sale price ratio
13.23 weeks of inventory
Learn more about Defining Your Market.
Wednesday, November 16, 2005
Bcoming a Real Estate Agent
Becoming a real estate agent is just like starting your own business, however most do not approach it with that mind-set.
8 or 9 out of 10 agents don't make it their first year.
10% of the agents make 90% of the money.
Having said that, real estate is one of the more exciting and rewarding businesses you can get into provided you come in with your eyes wide open. See The Three Bridges discussion in my web site.
Ask lots of questions of friends who are agents, talk with local brokers.
Read books about getting into real estate.
Start saving your money so that you have start up capital to start your new business.
Stay tuned to this Blog for more information about becoming an agent and tips for new agents.
Blogroll Me!
8 or 9 out of 10 agents don't make it their first year.
10% of the agents make 90% of the money.
Having said that, real estate is one of the more exciting and rewarding businesses you can get into provided you come in with your eyes wide open. See The Three Bridges discussion in my web site.
Ask lots of questions of friends who are agents, talk with local brokers.
Read books about getting into real estate.
Start saving your money so that you have start up capital to start your new business.
Stay tuned to this Blog for more information about becoming an agent and tips for new agents.
Blogroll Me!
Tuesday, November 08, 2005
Your input for my next article would be appreciated.
Please take a moment and take the poll or survey on the bar to the right. In return my next post will be about interest rates. There are a lot of misperceptions out there concerning interest rates and your input will help me focus the post.
Thank you for your time. If you would like to be notified of that post when it is made please check back or subscribe to this blog. You can also do that on the bar to the right.
Thank you for your time. If you would like to be notified of that post when it is made please check back or subscribe to this blog. You can also do that on the bar to the right.
Real Estate Stats for Kitsap County Washington 11/6/2005
Watching stats like these will help you determine what kind of a market you are in.
For Kitsap County Washington as of 11/6/2005
935 Active Listings
50 Homes went Pending last week
52 Average Days on Market
$276,924 Average List Price
$274,861 Average Sale Price
99% List price to sale price ratio
18.7 weeks of inventory
Learn more about Defining Your Market.
For Kitsap County Washington as of 11/6/2005
935 Active Listings
50 Homes went Pending last week
52 Average Days on Market
$276,924 Average List Price
$274,861 Average Sale Price
99% List price to sale price ratio
18.7 weeks of inventory
Learn more about Defining Your Market.
Saturday, November 05, 2005
Home Buyers of Today, Younger, Smart, Wired!
Who are they? They are the Echo Boomers or X Gen. They were born between 1982 and 1995. They are between the ages of 10 and 23. They are the children of the Baby Boom crowd. This group of 80 million have never known a time without a computer. They are more tech savvy then any previous generation. Much of their lives revolve around what their parents would consider gadgets, and doodads their grandparents never would have dreamed of. (Fortunately a few did or we would not have them today.)
This group will affect what a house looks like, how it functions, how we build them and how we sell them. In order to serve the Echos a typically older crowd of real estate professionals will have to change how they work, how they meet and how they communicate with their new buyers.
Wired houses....video, audio, security, networking and of course high speed internet. Speaking of high speed, this generation wants quick and constant input. Prompt returned e-mails, updated photos, daily updates on their transactions.
Their consumer pressure and improved electronic communication will decrease the time it takes to buy a home. What is now a 4 to 6 week process will become condensed into a 1 to 3 week transaction. They are more likely to find and choose their Realtor from a web page, because their friend sent them an IM or through a Blog.
The home they choose will have been viewed from every angle without having even visited the house. They will have viewed virtual tours, a photo walk thru and downloaded pictures from space. They will know who bought it, when and for how much via information available on the internet. Their offer will jump from electron to electron over miles of wire as it makes its way between buyer, seller, agents, lenders, appraisers, title and escrow....and these buyers would have it no other way.
This group will affect what a house looks like, how it functions, how we build them and how we sell them. In order to serve the Echos a typically older crowd of real estate professionals will have to change how they work, how they meet and how they communicate with their new buyers.
Wired houses....video, audio, security, networking and of course high speed internet. Speaking of high speed, this generation wants quick and constant input. Prompt returned e-mails, updated photos, daily updates on their transactions.
Their consumer pressure and improved electronic communication will decrease the time it takes to buy a home. What is now a 4 to 6 week process will become condensed into a 1 to 3 week transaction. They are more likely to find and choose their Realtor from a web page, because their friend sent them an IM or through a Blog.
The home they choose will have been viewed from every angle without having even visited the house. They will have viewed virtual tours, a photo walk thru and downloaded pictures from space. They will know who bought it, when and for how much via information available on the internet. Their offer will jump from electron to electron over miles of wire as it makes its way between buyer, seller, agents, lenders, appraisers, title and escrow....and these buyers would have it no other way.
Wednesday, November 02, 2005
If Your Home Is Not Selling, A Rule of Thumb.
Even in a Sellers market you will find that there are some houses that just don't sell. It can be the price, the condition or the terms......bottom line....it always comes back to price. A rule of thumb I've taught my agents for years: > If you are getting no showings, thus no offers you are more than 5% high. > If you are getting showings, but no offers than you are 3 - 5% high. > If you are priced right you will get both showings and offers.
Monday, October 31, 2005
Views of Kitsap County Washington
Just another Northwest morning over Seabeck Bay. This is why people move to this area. Or prices and quality of life are unparalleled.This is Seabeck Bay, part of Hood Canal. Depths of the canal exceed 1000 feet, the result of a glaciers work.
Homes on the water start at $500,000 and go up, homes with views start at $350,000.
The school districts are great. Seabeck is part of the Central Kitsap School District.
Real Estate Statistics
Watching stats like these will help you determine what kind of a market you are in.
For Kitsap County Washington as of 10/31/2005
933 Active Listings
51 Homes went Pending last week
51 Average Days on Market
$273,723 Average List Price
$274,119Average Sale Price
100+% List price to sale price ratio
18.29 weeks of inventory
Learn more about Defining Your Market.
For Kitsap County Washington as of 10/31/2005
933 Active Listings
51 Homes went Pending last week
51 Average Days on Market
$273,723 Average List Price
$274,119Average Sale Price
100+% List price to sale price ratio
18.29 weeks of inventory
Learn more about Defining Your Market.
Sunday, October 30, 2005
Real Estate Bubble Babble
“Bubble babble” is how Matthew Gardner refers to the increasing speculation that the Puget Sound housing market is heading for a drastic downturn. Gardner is a principal in Gardner Johnson, a Seattle-based land use economics firm that monitors Northwest real estate trends. “It’s a bit like Chicken Little,” he says. “You tell bad news to enough people and they may start believing it.” Gardner’s confidence in the strength of the Puget Sound market is fueled by a number of factors:
1) More people are calling the Puget Sound area home
For the past 20 years, the region has seen steady increases in population each year. Those increases have included years of local economic decline. The area has attracted a well-paid, well-educated workforce—a good foundation for economic growth and, therefore, demand for housing.
2) Local job growth is increasingLast year 47,000 new jobs were created in the area. 33,000 new jobs are projected for 2005 and similar numbers are forecast for 2006. It’s interesting to note that even with the negative employment numbers that accompanied the local dot-com bust era of 2000 to 2003, housing prices during those years still experienced significant appreciation.
3) A limited supply of land keeps demand for housing high
The geography of the Puget Sound area, framed by mountains and water, puts natural constraints on the amount of developable land. The Growth Management Act also limits which land can be developed. Both these factors also serve to restrict the speculative development that is flooding other hot markets. The result? A housing market where demand has continued to exceed supply.
4) For an area of its size, the Puget Sound region is still affordable
Home prices here appreciated 12 percent in 2004 and similar increases are expected for this year. While high, those numbers seem modest when compared to 2004 figures that saw home prices in San Diego shoot up 37 percent and Las Vegas prices soar 52 percent. The median price for a home in San Francisco is $630,000, nearly double what it is in Seattle. In fact, Seattle is actually more affordable than Portland. While the median price for a home is greater in Seattle than Portland ($321,000 vs. $223,000), larger average income levels in Seattle offset the difference in home prices.
5) Real estate is not a liquid asset
Unlike stocks, it takes more than a phone call or key stroke to sell a home. Consequently, the real estate market experiences fewer fluctuations than other types of investments.
If not a bubble, what does Gardner see on the horizon? Puget Sound real estate appreciation has outstripped income growth, so he doesn’t believe the current levels can be sustained. This year is on track to see an increase in home prices of about 12 percent. Gardner anticipates similar appreciation in 2006. After that he expects price escalation to slowly taper off and settle into growth of 4–6 percent per year, which he considers part of the natural flow of the real estate market cycle.
His advice? “If you find something you like and can afford, buy it. Whether it’s $200,000 or $2 million, a house is a major purchase. It should be considered a home first and an investment second.”
Though I didn’t write it….it’s still good stuff. This article was in our Windermere Weekly Publication.
1) More people are calling the Puget Sound area home
For the past 20 years, the region has seen steady increases in population each year. Those increases have included years of local economic decline. The area has attracted a well-paid, well-educated workforce—a good foundation for economic growth and, therefore, demand for housing.
2) Local job growth is increasingLast year 47,000 new jobs were created in the area. 33,000 new jobs are projected for 2005 and similar numbers are forecast for 2006. It’s interesting to note that even with the negative employment numbers that accompanied the local dot-com bust era of 2000 to 2003, housing prices during those years still experienced significant appreciation.
3) A limited supply of land keeps demand for housing high
The geography of the Puget Sound area, framed by mountains and water, puts natural constraints on the amount of developable land. The Growth Management Act also limits which land can be developed. Both these factors also serve to restrict the speculative development that is flooding other hot markets. The result? A housing market where demand has continued to exceed supply.
4) For an area of its size, the Puget Sound region is still affordable
Home prices here appreciated 12 percent in 2004 and similar increases are expected for this year. While high, those numbers seem modest when compared to 2004 figures that saw home prices in San Diego shoot up 37 percent and Las Vegas prices soar 52 percent. The median price for a home in San Francisco is $630,000, nearly double what it is in Seattle. In fact, Seattle is actually more affordable than Portland. While the median price for a home is greater in Seattle than Portland ($321,000 vs. $223,000), larger average income levels in Seattle offset the difference in home prices.
5) Real estate is not a liquid asset
Unlike stocks, it takes more than a phone call or key stroke to sell a home. Consequently, the real estate market experiences fewer fluctuations than other types of investments.
If not a bubble, what does Gardner see on the horizon? Puget Sound real estate appreciation has outstripped income growth, so he doesn’t believe the current levels can be sustained. This year is on track to see an increase in home prices of about 12 percent. Gardner anticipates similar appreciation in 2006. After that he expects price escalation to slowly taper off and settle into growth of 4–6 percent per year, which he considers part of the natural flow of the real estate market cycle.
His advice? “If you find something you like and can afford, buy it. Whether it’s $200,000 or $2 million, a house is a major purchase. It should be considered a home first and an investment second.”
Though I didn’t write it….it’s still good stuff. This article was in our Windermere Weekly Publication.
Thursday, October 27, 2005
Defining your real estate market, Is it for buyers or sellers?
It has been said that 5 months or 20 weeks of inventory is neutral territory between the much discussed buyer or sellers market. Before entering into the housing market as either a buyer or a seller it is important to determine where your market is.
If you have less than 20 weeks of inventory, as Kitsap does, then it is a sellers market. If you have more than 20 weeks then it becomes more and more of a buyers market the higher the number becomes.
Kitsap County Washington currently has 11 weeks of inventory. In other words, we have an absorption rate of about 70 to 80 houses a week. We currently have about 782 listings on the market. We are clearly in a sellers market. What does this mean to buyers and sellers?
To Buyers:
1) Realize the market you are in and plan accordingly.
2) Plan to place a strong offer if you really intend to get the house.
3) A strong offer means:
a) You are pre-approved with a lender and have a letter to that affect.
b) Try to tender a conventional offer, FHA or VA unfortunately are viewed as weaker offers.
c) Provide for a respectable earnest money amount. This does not mean $500 or $1000 as
has been customary in our area. If you are putting 20% down on your conventional loan,
show some of that to the seller. Put 10% or more up as earnest money.
d) Put a significant amount down on the loan. 20% will eliminate PMI.
e) Trim down any additional requests you might have of the seller. This does not mean
however that you should not have an inspection. Inspections protect all parties involved.
f) Offer a closing date or other terms that may accommodate the seller. Your agent should be
able to glean these details from the listing agent.
g) Your real estate agent should present the offer to the seller and the listing agent. If the
seller is out of area your agent should at least meet with the listing agent face to face to
present your offer.
h) If you have to sell a home before you can buy this next home you are at a distinct
disadvantage....consider a bridge loan. Talk with your lender.
i) And last.....in a sellers market make your best offer right off as you may well not get
another chance to better your offer. There will probably be multiple offers.
To Sellers:
a) Strategize with your agent how to deal with multiple offers.
b) Don't get greedy, it is better to have an offer a few thousand dollars less that actually
closes then a larger offer that doesn't.
c) Don't be in a hurry....though time is of the essence. If an offer comes in that does not have a
response time until the next day...wait it out. If another offer materializes then you can bid
the two.
d) My opinion.....It is better to counter offer on the best of several offers then do a
simultaneous counter offer to several offers. Discuss this with your agent.
e) There is often talk or chatter about agents who are about to write up an offer. Stick with
what you have in front of you. The bird in the hand beats two in the bush.
f) Don't second guess yourself. Human nature leads us to wonder, "Wow, if we got an offer
this fast maybe we under priced and could get a boat load more for our house??" Do the
research, have your agent do the research (that’s what they do), figure out your expenses
and your needs. Pick a price that works for you and is logical in your current market. Stay
focused on the goal....why are you selling in the first place and what is your next step.
Last....Be Happy! Much of the world would love to have the option to buy or sell a home but they can not. Americans have the greatest home ownership opportunity in the world!!!!!!
If you have less than 20 weeks of inventory, as Kitsap does, then it is a sellers market. If you have more than 20 weeks then it becomes more and more of a buyers market the higher the number becomes.
Kitsap County Washington currently has 11 weeks of inventory. In other words, we have an absorption rate of about 70 to 80 houses a week. We currently have about 782 listings on the market. We are clearly in a sellers market. What does this mean to buyers and sellers?
To Buyers:
1) Realize the market you are in and plan accordingly.
2) Plan to place a strong offer if you really intend to get the house.
3) A strong offer means:
a) You are pre-approved with a lender and have a letter to that affect.
b) Try to tender a conventional offer, FHA or VA unfortunately are viewed as weaker offers.
c) Provide for a respectable earnest money amount. This does not mean $500 or $1000 as
has been customary in our area. If you are putting 20% down on your conventional loan,
show some of that to the seller. Put 10% or more up as earnest money.
d) Put a significant amount down on the loan. 20% will eliminate PMI.
e) Trim down any additional requests you might have of the seller. This does not mean
however that you should not have an inspection. Inspections protect all parties involved.
f) Offer a closing date or other terms that may accommodate the seller. Your agent should be
able to glean these details from the listing agent.
g) Your real estate agent should present the offer to the seller and the listing agent. If the
seller is out of area your agent should at least meet with the listing agent face to face to
present your offer.
h) If you have to sell a home before you can buy this next home you are at a distinct
disadvantage....consider a bridge loan. Talk with your lender.
i) And last.....in a sellers market make your best offer right off as you may well not get
another chance to better your offer. There will probably be multiple offers.
To Sellers:
a) Strategize with your agent how to deal with multiple offers.
b) Don't get greedy, it is better to have an offer a few thousand dollars less that actually
closes then a larger offer that doesn't.
c) Don't be in a hurry....though time is of the essence. If an offer comes in that does not have a
response time until the next day...wait it out. If another offer materializes then you can bid
the two.
d) My opinion.....It is better to counter offer on the best of several offers then do a
simultaneous counter offer to several offers. Discuss this with your agent.
e) There is often talk or chatter about agents who are about to write up an offer. Stick with
what you have in front of you. The bird in the hand beats two in the bush.
f) Don't second guess yourself. Human nature leads us to wonder, "Wow, if we got an offer
this fast maybe we under priced and could get a boat load more for our house??" Do the
research, have your agent do the research (that’s what they do), figure out your expenses
and your needs. Pick a price that works for you and is logical in your current market. Stay
focused on the goal....why are you selling in the first place and what is your next step.
Last....Be Happy! Much of the world would love to have the option to buy or sell a home but they can not. Americans have the greatest home ownership opportunity in the world!!!!!!
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