We Tell it Like It Is

I showed 9 houses to some nice buyers this past Saturday-- the amount of cheap homes on the market right now is ridiculous by the way-- and we certainly saw a potpourri. One home in particular struck me and it got me thinking this morning as I was giving feedback to the Realtor that is listing it. The home was a pre-foreclosure/short sale and the owners chose to remain home during our showing. This is not entirely unusual for me; I'd say about 20% of the homes I show, the homeowners choose for some reason or another to be present. I can understand if they are elderly, as it is often difficult for older folks to suddenly become more mobile than normal and leave everytime there's a call for a showing. Perhaps in this case, they are losing their home and either don't care or choose to be present so they intimidate buyers which, in turn, prevents the home from selling and the amount of time they can continue to live there until they get the boot is extended. At any rate, my buyers were certainly uncomfortable as I casually led the way through the home while one of the owners sat in the living room watching us and the other was lying in bed. Here are some other experiences we've had with homeowners being present while we showed the home:

--I showed a home being foreclosed on and the little girl who lived there sadly followed us around the whole time wondering if we were going to take her house away from her.

--Pete & his male client walked into a bathroom of a townhome for sale to find an 80-yr-old woman stark naked in the shower.

--My buyers & I walked into a bedroom and found the homeowner sick in bed (her roommate had let us in). She told me her doctor had diagnosed her with some disease she'd never heard of before called "influenza". She said "I thought maybe I had just gotten the flu, but I guess not!"

--My buyers and I were confronted at the front door by what appeared to be a very angry Spanish speaking family. I don't speak Spanish, but I decided to interpret what they said as "get the hell away from here" as I promptly whisked my clients back to the car. 

--Our hearts broke as the elderly man who owned a home I was showing sat & told us of the recent loss of his wife and the fact that he was waiting for his daughter to pick him up to take him to a nursing home that day.

Needless to say, I prefer to show homes to my buyers that are without occupants present. It taints a buyer's view and opinion of the home and makes everyone uncomfortable!

When we show houses, real estate agents witness some pretty interesting living arrangements, strange and elaborate home decorating techniques, remodels gone bad, time warp back to the 50's etc. We also experience a lot of interesting stories & scenarios when it comes to helping people buy or sell homes. People often ask what my strangest experience has been and here is one of them:

I had met w/2 college-aged women almost 3 yrs ago who were interested in purchasing a house and they wanted to live in the Hugo/Lino Lakes/Centerville area. One home in particular was of interest to them in Lino Lakes. It was a 4 bedroom 2 bath split level house on a corner lot with a great yard. There was new carpet and paint throughout and there were many other features that really made the asking price seem incredibly reasonable. However, as we walked through the home, I felt something wasn't quite right in spite of how great it all looked on the surface. (Side note: I am a bit of an oddball and have been able to accurately sense issues with a house such as a history of water intrusion, sewer back-up, and mechanical issues without obvious clues present. Not something I picked up from real estate school; just call me a "natural" I guess. Or a "freak".) Since I did not have any physical proof to point out that would support my suspicions, I remained silent. However, upon our second visit to the home (one of the gals wanted to show it to her mom for her opinion), I continued to feel uneasy and began actively inspecting areas of the home (Another side note: I am NOT professing to be a skilled home inspector or anything equivilent. More like a "slightly trained eye".) that would normally be subjected to problems if they were to occur. I saw nothing suspicious and decided it would take more than my slightly trained eye to find something, if there was something to be found. I parted ways w/my buyers, giving them time to decide if they'd like to put in an offer. On my way home, I received a call from the listing agent who asked me if my buyers may put in an offer since they formally looked at the home twice. I told her that perhaps they would and she said she has some information she must disclose to me. She told me that a MURDER took place in the home and she wasn't at liberty to disclose the details. Whoa, hence the uneasy feeling that I never imagined would be because of THAT! So, with some online research and the help of a friend, I found there were 5 murders in the city of Lino Lakes within the past 5 yrs--and all 5 of them were at the same time in that house. Eeek. A man was refused treatment at a local hospital after complaining of hearing voices. He left the ER and ended up killing his sister, brother-in-law, and their 3 children with a hammer as they slept that night. Hence the new carpet and paint. I was creeped out beyond belief and my buyers did not purchase the home. In fact, I never heard from them again after that. The home did eventually sell for a very low price after being on the market for quite awhile.

So, I'm feeling a little better since my last pessimistic blog. Sorry to bring everyone down; but the reasoning behind this whole blogging concept for me is to exhibit the fact that I am human. I care deeply about my job and how my clients & collegues perceive me and I have an emotional investment in the listings I have and the offers I make for clients. I know this is hard to believe in a world that often classifies real estate agents w/used car salesman and lawyers...sleeze balls looking to make a fast buck (and look good doing it) without any regard for those they've left behind standing in the dust. I am actually not in this for the money; that's never been my primary goal when selecting the jobs I've had. I have a genuine need to make a positive difference in people's lives and if I can't accomplish that, I've failed and I beat myself up over it. I'm one of those people that tries to please everyone all the time. Now the money part is important because that's what pays our bills and there's no other resource ... but I can't take someone's money knowing I didn't properly earn it.

Today is July 24th. We only have about one full month left of the "prime" season for home buying/selling. There are going to be some last ditch efforts going on out there. A lot of sellers need to sell before the school year arrives and are going to show the most flexibility in August and mortgage rates are good. We may not see this next year, my dear buyers, so get out there and get 'em!!

Buyers, be sure you are COMPLETELY ready to take on all of the responsibilities of owning a home before you start house shopping: the mortgage payments and the general upkeep that a home requires (mowing the lawn, maintaining the roof, exterior, furnace, water heater, plumbing, electrical, etc).

Last week, I listed a home for sale in Maplewood. 5 siblings own the house, as their mother passed away last year and they have put a lot of hard work into getting it ready to sell. Within 2 days after the home went up, we surprisingly received a great offer from a young couple. We happily accepted it last Saturday (after my 5 phone calls to the 5 siblings) and praised the heavens for such good fortune and all we had to do is allow the buyers an inspection prior to the sale becoming final. We waited patiently for the inspection to be scheduled and I heard nothing. I finally called the agent on Thurs (the final day left to have the inspection) and he asked for a short extension--the inspector couldn't come until Fri morning. I agreed. Fri morning passed and we waited. And waited. Finally, 3:00 today (Sat), the agent called and said the buyers got cold feet and decided they didn't want the responsibility of owning a home & all the work it entails. So, they cancelled. What these buyers didn't realize is how much effect all of this can have on sellers. These are real people selling a house; getting their hopes up and mentally preparing to finally get on with their lives. Waiting for days only to find out they simply changed their minds like it is no big deal. The buyers move on with their lives unscathed while my sellers feel like they've been run over by a truck; now gun-shy if/when the next offer comes in. :(

Hot off the presses, we just received our July/August issue of "The Realtor" which provides agents with up-to-date information specific to our job. I thought I'd share some interesting and valuable info. from Mark Allen, CEO of the Minneapolis Area Assoc. of Realtors, on the state of the housing market as of May 2008:

Are we experiencing a "recovering market"? No. HOWEVER...It is projected that the Twin Cities will experience the long-awaited recovery in stages and we have been experiencing "Stage 1". It is believed that the Twin Cities has finally hit rock bottom in the housing market and there's nowhere left to go but up.

Some indicators that are telling us we are experiencing "Stage 1" of recovery:

--The amount of homes newly listed for sale this year is down 16.2%. This means our problem of too much inventory and not enough buyers will hopefully begin to disappear. This was a major factor in getting us to the market we're in right now.

--It appears that the amount of homes selling in 2008 could be close to even with 2007 which means the decline in buyer activity is starting to slow down and begin a U turn.

Still good news for buyers, sad news for sellers:  There are 8 homes on the market for every buyer right now. This means buyers still have a lot to choose from and sellers still have a lot to compete with. The average sales price is down 12.9% this year, so this means buyers are still getting great deals and sellers are still taking it up the ying yang. Sellers are receiving 92.6% of the amount of money they listed their home for when it sells.

Mortgage rates are still good (they were 6.375% a few days ago for most loans) and there are SO many programs out there for first time homebuyers. NOW IS THE TIME TO BUY. This market will be disappearing before we know it!

As a home buyer or seller, you deserve to receive the efficient service you are expecting from a Realtor. I run into people on a regular basis who have had very negative experiences with real estate agents but felt "stuck" working with them. Just an FYI: you can "fire" your Realtor for any reason at any time and you should NOT feel guilty about it. Here are some signs that you are working with a good Realtor:

1) He/she is honest with you from the beginning about the services they provide and he/she will not create false expectations about how you are going to fare as a buyer or seller in today's market.

2) He/she often shows legitimate concern about YOUR time and YOUR money and he/she is respectful of those things.

3) He/she will not list your home if they believe they can't sell it based on its condition and the terms with which you would like it sold.

4) He/she takes on the expert role and provides you with valuable information however, understands that they are working for you respects that concept. He/she will show you any home you'd like to see as a buyer without question.

5) He/she is concerned about how your home looks before they list it and is willing to work side by side with you to prepare it for the market.

6) He/she takes substantial time to explain contracts and real estate paperwork to you so that you understand your legal rights and options.

7) He/she communicates with you on a regular basis (1-2 times a week minimum)

8) He/she behaves in a professional & polite manner when they are communicating with other Realtors as your representative. How your Realtor behaves can be a direct reflection on you, the person they are representing.