Advice to new real estate agents

WELCOME TO THE DANCE!

I encourage all new agents to bring your enthusiasm and new ideas to the world of real estate, while you learn some of the basic steps. As we all know too well, real estate licensing classes don't really provide the day to day "how to's" that mean the difference between success and failure in this business. So here are a few practical suggestions from an old pro:



1. Preview, preview, preview. Any day that you don't have a live warm-bodied client to work with, preview properties on the market. This will help you develop a comfort level with what's available at what price. It also helps you find your way around your marketplace, as you go from one listing to another (good idea to try out that new GPS system before you have clients in the car). And knowing the inventory will give you something to talk about in social and business situations. Previewing is to real estate success, what crawling is to walking.

2. Practice using a lockbox. You laugh. Well, let's pretend you were the lucky agent on duty in your office when a homebuyer came in and wanted to look at homes. He didn't know you were new, and he was very impressed with your professionalism. You made appointments to show him homes, and off you went. "This is going great!", you thought to yourself. But you couldn't figure out how to open the lockbox when you got to the first listing... Why don't real estate managers teach new agents how to work their lockboxes?!?!?!

3. Practice your presentations. Now that you have graduated from licensing school, you are expected to share your wisdom with consumers... to come across as knowledgeable about real estate, while being enthusiastic and natural. Believe me, there is nothing "natural" about it - that takes practice!

Assuming you already have a listing presentation (purchased, corporate, or one that you created yourself), sit down at your dining table and turn the pages (or power point presentation on your laptop) in the direction of an imaginary home seller across the table, and go through your presentation OUT LOUD. You must be able to look at it upside down, and know what your script is for that page. Same thing with contracts: Turn a contract towards an imaginary buyer on the other side of the table, and summarize each and every paragraph OUT LOUD without peeking. My children did grow up to be normal healthy adults, in spite of sitting through many practice presentations over the years before I took them to the pool.

4. Reach out and touch someone. Many someones. Personally speak to at least 5 people a day about real estate - it can be purely conversational, such as "I saw the most beautiful home today..." - but it has to be about real estate! When you run out of friends and family, go to the grocery store and talk to the person in front of you and behind you... and the clerk. Go to the gym and talk to the person on the treadmill next to you. 15 seconds and a business card. It works. Do it every day for a week, and you will probably get an appointment with a live warm-bodied buyer or seller - especially if you've been previewing and have some houses to talk about.

5. Read, read, read. Your clients and prospects are reading the newspaper (or news online), and they are watching/listening to news reports in the broadcast media. They are very interested in learning about interest rates, market trends, and local political decisions that may impact their home value. If you want to carry on an intelligent conversation which convinces others that you know more than they do about real estate (you're not just another real estate licensee), you have to read, listen to and talk about anything you can find that has to do with real estate.




One of the things I love about being a REALTOR is the community of agents, lenders, and other professionals that I interact with every day. Not to mention the clients who have become friends, and the friends who have become clients. It doesn't matter what age, ethnicity, or years of experience - we can all enjoy the real estate dance. Hopefully some of this advice from an old pro will help make it more fun for you a lot sooner than learning from the school of hard knocks.

Hey, old pros, if you're still reading this, please share YOUR advice to new agents in the comments.

http://www.margaretwoda.com/

mwoda@remax.net

Copyright 2007. All rights reserved. Margaret Woda

Are home sellers in denial?

Now that is a very good question, and everyone has an opinion. I'll bet you've already framed an answer in your own mind, and now you're waiting to hear what I have to say. Well, here's my answer:

Yes, I think that's true. I've talked to a number of sellers, and even agents, who are convinced that their home is worth 10% higher than it's likely to get in today's market. In fact, even the experts are making that same observation. Just today, I was reading an article in MarketWatch by Rex Nutting, and he quoted the Chief Economist for Naroff Advisors as saying that "we still seem to be in the sellers'denial phase of the market and we haven't even hit the buyer's denial portion of the market, when people don't realize that prices are no longer dropping." What's your opinion?

Many REALTORS are true experts who study real estate, the economy, market trends, the home building industry, and local real estate sales statistics because that is what it takes to be "the real estate experts" in our area. These agents really do know more about real estate than most home sellers, buyers and many agents, and THAT is why we bring value to consumers' real estate transactions. It's why we earn the "big bucks!" (And it's the reason we're more valuable than mere real estate licensees who don't do these things.)

When consumers ask a REALTOR a question - even a casual one like "Are home sellers in denial?" -they'll know the REALTOR is more than one of those "here today, gone tomorrow agents" when the REALTOR quotes statistics and the experts, in addition to sharing anecdotes from their own experience.

Use the links below, if you'd like to read the entire article that is the source of each quote.

Joel Naroff, Chief Economist for Naroff Advisors: "We still seem to be in the sellers' denial phase of the market and we haven't even hit the buyers' denial portion, when people don't realize that prices are no longer dropping." U.S. inventory of homes for sale in May rises to 15-year high

Rex Nutting, Washington Bureau Chief of MarketWatch: "Starts of new homes in the United States dropped by 2.1% to a seasonally adjusted annual pace of 1.47 million in May, the softest pace of groundbreaking since January, the Commerce Department estimated Tuesday." U.S. housing starts fall in May to 1.47 million pace, down 2.1%

Patrick McPherron, economist for Moddy's Economy.com: "The bottom of the housing market appears nowhere in sight." Home builders' confidence falls to 16-year low
Lawrence Yun, Senior Economist for NAR: "I think psychological factors are currently the biggest drag on the housing market, in addition to a disruption from tighter credit for subprime borrowers." Existing-Home Sales Show Market is Under Performing.

Office of Federal Housing Enterprise Oversight: "U.S. home prices increased 0.5% in the first quarter, the slowest quarter-to-quarter price gain in 10 years." Home prices rise at slowest pace in 10 years

Mike Englund, Chief Economist for Action Economics: "Inventories of homes on the market rose by 5% to a record 4.43 million, representing an 8.9-month supply at the May sales pace." Dollar stalls after home sales data.

You can keep up with the experts through MarketWatch, as well as NAR press releases. You can even register to receive a MarketWatch Alert any time there is an article related to the Real Estate industry.

Contact Margaret in Maryland for real estate in the D.C.-Baltimore-Annapolis triangle. (Margaret Woda, RE/MAX Vision)

For more information:
http://www.margaretwoda.com/
mwoda@remax.net

Are home sellers in denial?

Copyright 2007. All rights reserved. Margaret Woda

Lesson learned (again) - Appaisals are not the last word!

Well, actually, that was lesson #3 learned from my listing at 1697 Walleye Dr.

1. The Internet IS a source of business. This listing came to me directly through an ActiveRain.com contact form. The property is located about 3 blocks from my office, in the heart of my target area in Crofton, MD.


2. Do not walk away from any listing, even if it is overpriced. I did at first, but had second thoughts as I drove down the street. The next morning I called the seller and said "If anyone can sell your property for more than $300,000, I can." Over the next few weeks, I had several sign calls on that property, ending up with at least one other listing and sale.


3. Appraisals are not the last word! We did get a full price offer of $333,000 about 30 days later. Concerned about the appraisal, I asked the seller to provide her receipts for renovations, which I then gave to the appraiser. In spite of documentation for more than $50,000 of renovations, the appraisal came in at $295,000, just $11,000 more than she paid for the property in October 2006.

The mortgage lender, new ActiveRainer Don Wilkins, immediately ordered a second appraisal. Again, I met the appraiser and gave him the package of receipts. This time, the appraisal came in at $306,000 - better, of course, but still $27,000 away from the contract price. Many agents and lenders would have let the appraiser have the last word and this sale would have died at this point.


But not me, not us... Super-heroine Margaret, along with super-hero co-op agent, informed our respective clients of the situation and asked how they felt about going forward (without mentioning our own doubts). My client said she would consider it, if the buyers could/would waive the closing help in the original contract. The buyers told their agent that they would waive the closing help in the original contract, if the seller would accept the sale price. Voila! They came together on their own, and they both feel they "won" because the solution was THEIR OWN IDEA.

The buyer and seller reached a fair compromise, facilitated by two experienced agents and a lender willing to seek a second appraisal. They, not the appraiser, got the last word. Settlement will be next week, and all are expected to live happily ever after!

Today's real estate trends, unofifcially speaking...

In the past, I've shared statistics with you from MRIS, the regional multiple listing service, so you would have a realistic picture of real estate activity in Maryland. There's nothing like real data, when it comes to dispelling rumors (and media reports, which tend to be rumors), so that is why I usually go with the facts. Yet there is also a place for informed opinions, and that's what I have to offer you today.

This change of direction was inspired by a phone call yesterday from Andre, one of my blog readers who is relocating from Georgia to Maryland. So here goes:

It is my opinion that home values are relatively safe, at least in my market. They have rarely gone down during my 30+ year career - certainly not in the big picture over any number of years. Home values have gone up pretty consistently, with only a few plateaus. In today's so-called "down" market, we're seeing more of a plateau than a drop in property values, at least in the D.C./Baltimore/Annapolis triangle - UNLESS the property was purchased at the height of the five-year price balloon we saw recently. In those cases, motivated sellers may have to sell their homes for less than they paid... and more than they owe.

Most people own a home for a number of years, however, and property values are likely to be on the rise again for the majority of "balloon" home buyers when they're ready to sell. BRAC is a factor that pretty much guarantees that for local homeowners.

For anyone who doesn't know, BRAC is the Base Realignment and Closing Report, which recommends the consolidation of some government and military services by closing some facilities and expanding others. Maryland is on the receiving end of new jobs in this round of BRAC, and the D.C./Baltimore/Annapolis area is short of housing by tens of thousands for anticipated newcomers. Given the impact of supply and demand on prices, I think that housing is still an excellent investment in this area. The rest of the country may have a very different experience, but Marylanders have good reason to be optimistic - especially those in Anne Arundel, Howard and Harford Counties.

Thanks, Andre, for your phone call yesterday. That report I promised you will be in your email tomorrow. If you have any questions, please don't hesitate to contact me.

Today's real estate trends, unofficially speaking...

Copyright 2007. Margaret Woda. All rights reserved.

What I Won't Tell You

Why Agents Don't Answer Your Questions

This is the topic addressed in an article appearing on MSN’s homepage today, and I opened it with the expectation of reading yet another attack on professional real estate agents. As it turns out, the article gave a relatively fair and honest analysis:

“Fair-housing laws prevent agents from talking about neighborhood demographics, and they often don't want to discuss other details, such as crime stats. Luckily, the Web picks up where agents leave off.”

The fact is that your agent probably DOES know “who” lives in the neighborhood – the demographic mix, crime statistics, and the school’s reputation. Candidly answering the question, however, could get the agent and their broker in a lot of trouble, especially if the individual asking about these details happens to be a “tester” looking for fair housing violations. As the article indicates, agents are forbidden from giving information that could be interpreted as "steering," i.e. directing a client toward or away from a particular property in a discriminatory manner.

Ten years ago, I would have suggested to a customer or client that they return to the neighborhood after our appointment to talk with residents and visit local schools, shopping and recreation facilities. Today, with almost everyone having access to the Internet, I suggest they go online for answers to their questions.

If you visit my website at http://www.margaretwoda.com/, you will find over a hundred links to resources that include the Maryland Sex Offender Registry and School Matters, a snapshot of academic performance that allows you to compare your child’s current school with any prospective school. Other helpful links mentioned in the MSN article are:

• National Center for Education Statistics
• GreatSchools
• Family Watchdog
• EPA Community Search
• Pollution Scorecard
• Census Quick Facts

Before you buy real estate, it is important to be familiar and comfortable with the neighborhood and broader community, as well as the home itself. So don’t hesitate to ask questions because your real estate agent may suggest additional helpful websites. Yet it’s still not a bad idea to do it the old-fashioned way: make a personal visit to the neighborhood to become better acquainted with your prospective neighbors, schools, shopping, and recreation facilities BEFORE you buy a home.

And please understand that your real estate agent is not trying to be coy when they don’t give you a straightforward answer to your questions. They are trying to follow the law.

Related Sites:

• What REALTORS Won't Tell You
• Fair Housing and Equal Opportunity

What I Won't Tell You

Copyright 2007. All rights reserved. Margaret Woda

Annapolis Sales Statistics - January

If you did not read last week's article - Top 7 Habits of People With Great Credit Scores - be sure to scroll down and check it out. This is GREAT information!

Now is a GREAT time to buy a home in Annapolis, based upon this snapshot of the market for Annapolis (21401) zipcode during January 2007 (comparing it with January 2006):

• Total Sold Dollar Volume is down 26.27% to $16,035,510
• Average Sold Price is down 12% to $ 517,275
• Median Sold Price is down 6.59% to $425,000
• Total Units Sold is down 16.22% to 31
• Average Days on Market is up 80.33% to 110
• Average List Price for Sold Properties is down 10.34% to $559,300

As I've mentioned before, two statistics that always grab my eye are New Listings and New Sales. I like to see both numbers about the same. In January, however, there were 81 new listings in the 21401 zipcode of Annapolis and only 49 new sales. As inventory grows, supply and demand get further off balance and prices are more vulnerable - NOT good news for home sellers, but GREAT news for home buyers!

To obtain learn about real estate activity in YOUR neighborhood, click on Market Snapshot.

Larry and I are headed out to the RE/MAX International Convention in Atlanta, Georgia, where we expect to meet other RE/MAX pros from around the world and attend education sessions from dawn 'til dusk. In the coming weeks, I promise to share some of the new and innovative real estate solutions that we learn, so be sure to check back. I try to post a new article each weekend.

Feedback and questions:

• www.MargaretWoda.com
• mwoda@remax.net

Annapolis Sales Statistics - January

Source of Data: MRIS

Copyright 2007. All rights reserved. Margaret Woda

Top 7 Habits of People With Great Credit Scores

Eric Bramlett, of Austin, Texas, has some excellent suggestions regarding good credit habits that I want to share with my readers. The following article appeared in BrokerAgentNews on Feb. 24, 2007:

People with great credit scores have earned them for a reason - they have always borrowed money, and paid it back on time. There's really no trick to what they've done, and there is no one action that will help you get a great credit score. When someone asks me how to earn a good credit score, I tell them to look at the spending habits of those with great scores, and to develop the same habits. Here are the 7 habits of people with great credit scores.

1. Never Pay Cash

People with great credit scores want every purchase to count. And a purchase doesn't count unless the 3 bureaus know about it! The only way to make sure that the bureaus know how much money you're spending is to put everything on your card(s). Rather than deposit your paycheck and spend, think of your spending as a monetary cycle: Put your paycheck in the bank, spend with your credit cards, and pay off the cards with the funds you've already deposited. It's one extra step that pays off big with the added security and boost to your score that credit cards provide. Credit cards aren't just for larger purchases anymore. Using your credit cards for items like soft drinks and gum has become so common that credit card companies have given a name to them: "Micro-purchases."

2. Never Use a Debit Card

You won't find a debit card in the wallets of people with great credit scores. Debit cards provide you absolutely nothing that a credit card won't, and credit cards will build your credit score! Furthermore, if someone steals your credit card, you're protected against fraudulent purchases, while with a debit card, you're out of luck! People with great credit scores take every opportunity to build their credit - going to the grocery store, buying gas, or renting movies!

3. Pay Off Your Balance(s)

People with great credit scores don't typically carry high credit card balances. The easiest way to emulate this is to make sure that you don't carry ANY balances. You'll obtain the best credit score if you make sure that you're using the smallest portion of your potential limit - which means "Zero." People with great credit scores make sure to use their cards, but pay the balance off every month.

4. Put Yourself on a Bill Payment Schedule

In order for the credit bureaus to reward your good spending habits, you have to pay your bills on time. However, you have a little leeway. While it's not a good idea to pay your bills a few days late because your creditors will charge you late penalties, it won't affect your credit score negatively unless you pay them more than 30 days late. The easiest way to stay on top of your bills is to pick one day out of the month to take care of everything.

5. Consistently Request Higher Credit Card Limits

Because people with great credit scores habitually borrow money and immediately pay it off, the credit card companies are very comfortable consistently raising their spending limits. People with great credit scores consistently request higher limits because it allows them the freedom to borrow and keep a balance, if the need arises, without lowering their scores. You will have the best credit score if you keep the balances of your cards below roughly 35% of the spending limit of each card. People with great credit scores don't habitually spend over 35% of the limit of their cards. Furthermore, if you have high limits, you can take advantage of the promotional offers that the banks offer from time to time. A borrower I know with a great score recently transferred the second mortgage on his home to a 1.99% APR promotional rate on his credit card - the rate is good for the life of the loan!

6. Never Close a Credit Card Account

The credit bureaus take into account the age of your credit lines - and people with great credit scores know this, and exploit it. Many times, people with mediocre or low scores will pay off a card they've abused and close the account because they subconsciously think it was the card's fault they let the balance get as high as it did. This is NOT the correct thing to do in this situation. That card has a great history behind it! You've shown the bureaus that you're willing to borrow a large sum of money and then pay it down to zero. People with great credit scores NEVER close credit card accounts because they want to show that they have a long history of properly using credit.

7. Never Rent

Your home is probably the largest purchase you will ever make in your life, and is the one purchase that can make the biggest impact on your credit score. When you purchase a home, you're showing the bureaus that you can consistently budget yourself to pay a large portion of your income towards an account on a monthly basis. There are a number of reasons people with great credit scores refuse to rent, and the impact of paying a mortgage on their scores is one of them. When a first time homebuyer finally closes on their home and pays the mortgage on time for a few months, they will see their credit score jump around 50 points - and sometimes higher!
People with great credit scores haven't achieved anything too terribly difficult - they've merely adopted some fantastic spending habits. If you would like to earn a great credit score, borrow these habits and watch your score climb. Along with your score, your financial health should benefit, as well!

• www.EricBramlett.com
• www.FreddieMac.com
• http://www.fha-home-loans.com/fha_loan_credit_qualifications.htm

Feedback and Questions:

• www.MargaretWoda.com
• mwoda@remax.net

Top 7 Habits of People With Great Credit Scores

Choosing your real estate agent – online

Professional Knowledge, Business Accomplishments, Community Involvement, Industry Leadership, and Integrity - These are the criteria used by Realtors themselves for honoring one agent annually in their local, state and national associations. Aren't these the same qualities you want in the agent YOU choose?

I've always felt that a sixth category is important: Philosophy and personal qualities. It is my feeling that you and your agent should be “on the same page” and like each other. Today, in 2007, I would add a seventh quality to my criteria for choosing a real estate agent: Tech-savvy.

If you are tech-savvy in your work and life, don’t you want an agent who is, too? Frankly, not many are. It is easier than ever for you to evaluate a prospective agent by simply going online to check out the web presence of any agent you consider hiring. You can effectively interview dozens of real estate agents through viewing their websites, if you like, before you every even speak to one.

What does the website say about the agent’s ability to use today’s technology in helping you achieve your goals?

• Has the agent invested in today's technology to create a personal website? or...
• Does the agent at least have a personal page on the company website - including a photo, contact information, and testimonials or references?
• Is the agent's website or page static, or is does it appear to be updated periodically? (Look for a blog, news feed or other indication that information reflects current market conditions.)
• Are there technology tools on the website for YOU to use? (Look for a link to the MLS, to recent real estate sales statistics and other calculators or tools.)
• Is it easy to contact the agent or obtain personalized information with a simple “click”? (How about business address and phone number?)

What does the website say about the agent? Does it set this agent apart from average agents by communicating his or her qualifications, based upon the first six criteria?

• Professional knowledge (Helpful real estate advice and tools to help you with your home sale or purchase)
• Business accomplishments (Agent's resume indicating professional licenses or designations and awards earned)
• Community involvement (Emphasis on the area and communities)
• Industry leadership (Evidence of leadership roles in professional organizations)
• Integrity (References or testimonials)
• Philosophy and personal qualities (As reflected in the style and content of the agent’s website)

If the agent passes this scrutiny, contact him or her and ask more about his or her technology use in business. For example, if you communicate a lot using text messaging, is this something that he or she does also? Will he or she promptly receive inquiries on a PDA from prospective buyers for your house, or have to wait until returning to the office? Will your home be featured on his or her website as well as in the multiple listing service?

It is easier than ever for you to choose the "right" agent with the help of the Internet, but don't choose an agent based on website alone - be sure to look for those all-important first five criteria: Professional Knowledge, Business Accomplishments, Community Involvement, Industry Leadership and Integrity. They are the most important qualifications for choosing your real estate agent - online or in person.

More information:
Choosing your buyer’s agent
Choosing your listing agent

Questions and feedback:
mwoda@remax.net
www.MargaretWoda.com

Choosing your real estate agent – online

Copyright 2007. All rights reserved. Margaret Woda

HOMES FOR SALE - Crofton, MD

LAKE LOUISE
In the Baltimore/Annapolis/D.C. triangle

$344,999

You can just move in and start enjoying this charming home, conveniently located within walking distance of the Village Green and Crofton Country Club.

As you step into the foyer, you’ll notice beautiful wood floors that continue through French doors into the living room and dining room. The view from the living room is so lovely that the current owners couldn’t resist placing their desk in front of the window. The kitchen was recently re-done with an old-time diner motif, including new cabinets, countertops, and flooring. But that’s not all - the 3 full bathrooms and half bath have been updated, as well!

New carpet will tickle your toes upstairs in all three bedrooms, each tastefully decorated with a unique look that might easily be found in a magazine or on HGTV. Lighting, ceiling fans, interior doors, and even door hardware have been updated recently. The spacious lower level opens to a fenced brick patio that is nicely shaded in the summer by nearby trees. There’s even a wet-bar off the family room and plenty of storage in a separate area.

This home is very low-maintenance with brick front and back, and new windows on the back of the home. So start packing, and move your family to this lovely Crofton home in time to enjoy the beautiful fall leaves from your windows and patio.

Related links:

• More information about this home
• Search for other Crofton area homes
• What's YOUR home worth?

Feedback or more information:

• Email: mwoda@remax.net
• Website: www.MargaretWoda.com
• Crofton Maryland Real Estate

HOMES FOR SALE - Crofton, MD
Copyright 2006. All rights reserved. Margaret Woda