Whether you are selling or buying a home, it is likely to be the largest dollar transaction you will ever be apart of. With it being such a large chunk of change, who you choose to navigate this process is essential. 

The reality of the Real Estate industry is that it is a fairly straightforward process to get your license inorder to call yourself a Realtor, hence why so many people do it part-time. With so many people available to help you with your transaction how do you pick your Realtor? Scott, a member of our team says “Realtors are like hair stylists, everyone knows one” and he is right! The initial reaction of most people is to go with a friend who has their license no matter their level of experience, area of focus or standing within the profession. This selection does make sense though, they already know them personally and they feel comfortable with them. However, using a friend who has their license and is part-time has its drawbacks.

Does their other employment impact their ability to help?

This past year I’ve met individuals who started out their property search or sale with a friend. The initial part of the process is great, no awkward ice-breaker or getting to know you period, but it becomes tough when the Realtors alternate employment schedule starts to hamper progress. One lady was searching in midtown Tulsa, a hot, fast paced market. She was missing out on multiple listings because the market moves so quickly and you had to view the homes the day they list. Her agent couldn’t show because she worked out of the city in Claremore and could only show after 5:30.

Had this lady been working with an agent who was able to show her a property as soon as it hit the market she may have been in her dream home sooner than later. 

It should be pointed out that part-time agents on a team are able to count on their teammates to cover for them should they ever need it. If the agent is part-time it’s worth checking whether they’re apart of a team who can help out when needed. 

Are they putting the reps in?

A good Realtor is the Quarterback of a transaction, and like any good Quarterback they need the reps to get better. The benefits of doing multiple transactions are extensive. They know what to do if a deal starts to go sideways. The more contracts they write the more adept they will be at using a contract to their clients benefit. Attending more inspections mean they’ll see more things that can be wrong with a home and know how to forewarn clients about them in the future. On the listing side the more homes they sell, the more appraisal packets they’ll have to produce to help an appraiser understand their rationale behind price, therefore helping reduce the risk of a home not appraising for sales value- a huge problem!

How to choose your Realtor?

If you are someone who is looking to buy/sell a home choosing between a friend who does real estate on the side and a full-time professional can be tough. Ultimately doing what is best for you is what needs to be done. We’ve talked before about the Realtor selection process and for this the advice remains the same.

Take a moment to review their past sales and transactions. You need an individual who knows the market well where you have interest and has a proven track record. Have they transacted there in the past? If they haven’t but they come recommended to you, meet with them in person. Interview them and read up on them online. They will have a Zillow profile, maybe a social media account so you can see how they market. 

Buying or Selling a home is one of the most stressful things you will ever do, be sure to use someone who will be able to help you navigate the ups and downs of it to ultimately achieve your property goals.

Vetting a realtor

• Ask around– Word of mouth is how we get most of our clients referred to us. First and foremost ask the person who suggested a Realtor to you if they used them! It’s amazing the amount of times I hear someone say “our friend recommended their Aunt to us, she does a bit of Real Estate on the side”. PEOPLE, STOP. WOULD YOU TAKE YOUR CHILD TO SOMEONE WHO DOES PEDIATRICS ON THE SIDE?!

• Check out their Zillow history– For Realtors, Zillow is a love hate relationship. Zestimates in the bane of most of our existence, but the website does provide us with an easy platform to showcase our previous transaction history. With that you can see what sort of homes they’ve sold in the past. Take some time to read previous clients reviews while you’re there too. 

• Is the Realtor full-time?– I recently spoke to a lady who had been looking to downsize from her 4,000 SqFt two story where she lives alone to a single story 1,600 SqFt home. She told me she kept missing out on the homes she wanted to see because she had to wait for her Realtor to get off work. Get off work?! There are many full-time realtors out there who make a full-time living from the profession and they’re good at it too! It’s a performance based industry so find a Realtor who performs.

• Interview them-A simple straightforward method that is totally under utilized by today’s buying/selling population. Sit down with a potential agent and ask them questions about their market, history, experience, etc. Find out if they fit what you’re looking for and if they understand what you’re trying to accomplish. Most importantly of all, make sure they listen to you. 

The current Real Estate market in Tulsa is moving fast and we are seeing many competing bids for Brown & Co. Listings and our inventory of homes is strong. With that being said, why is it in such a great market for Buyers they are feeling anxious? 

In a recent article on the National Association of Realtors website, Chief Economist Lawrence Yun explains. “Rates of 4%, and, in some cases even lower, create extremely attractive conditions for consumers. Buyers, for good reason, are anxious to purchase and lock in as these rates.” 

The competing bids are from Buyers aware that rates in and around the low 4% mark are too good to pass up! Some of my clients have been able to buy $30,000 more house for the same payment as what they budgeted for last year due to lower rates.

If you’re looking to buy, be active now! Call me and we can set up a time to see what is currently available. 

At the beginning of the month mortgage rates had dropped to a 16 month low. Across the board whether it’s a 15 year or 30 year fixed rates dropped. The current trade war with China and unclear future of Europe with Brexit has created an atmosphere of financial uncertainty. This two factors coupled with slow global economic growth has produced a steady decline in rates. 

What does this mean for you?

Buyers
For Buyers this is great news, make the most of the low rates and lock into something for the next 30 years. Review your buying power with your Loan Officer. If you had discussions a 4.3% interest but now can get 4.05%, that increases your buying power!!!
Sellers
If you’re looking to sell your home hopefully you’ll have an increased Buyer pool to draw from. If you’re thinking of selling, now is a great time to explore your options. You may also be able to refinance and get your mortgage at a new lower rate. 

No matter what you’re looking to do discuss options and explore avenues to get the most from this current economic climate. Things can change quickly, as I type this I just received an email from a local lender highlighting activity from global banks indicating their faith in a growing global economy. THINGS CAN CHANGE QUICKLY!

Happy House Hunting

Real Estate information and data is provided to Buyers and Sellers in vast amounts. Facts, figures and guesses of property valuation are all over the internet. While some of this information can be useful (I personally am yet to see an accurate Zestimate) one piece of data that should have no major bearing on your decision to pursue a home is days on market. 

There is a misconception amongst buyers that if a home has been on the market a while something must be wrong with it. Firstly, if there is a known problem with the house you would see it in the disclosures. Failing that your inspections should catch any other red flags. 

With that being said, why do some homes sit on the market longer than others?

• Determined Seller- In some instances a Seller has a number in their head they’d like to get for their home and they won’t budge. 
• No Mortgage Owed- Similarly we have had clients who own their house outright so can sit on it and hold it until they get the sales figure they’d like. They’ll pay their property taxes and insurance because they don’t need to sell. This is a common situation for a home inherited by family members. 
• Marketing- Poor marketing of a property can sometimes leave it on the market for a while. If pictures don’t reflect the quality of the home it’ll be harder to get buyers to see it. 
• Competition- if you’re looking for a four bed, three bath home in an area with lots of four bed, three bath homes, it’s very likely there will be some with longer list periods. A house may have to be the Bridesmaid a few times before it gets to be the Bride!
• Not Found The Right Buyer- It may sound like a cliche but some homes sit a while because they haven’t found the right Buyer. The property may appeal to a Buyer in a certain market niche with a small amount of suitors. Small gated communities, compact condos and large homes are an example of this.
• Missing the Window- In my opinion this is one of the easiest reasons to explain why a house has a long list period. I’ll use a real example from Brown & Co at McGraw Realtors. We took on a listing last year in a neighborhood that has a great school district and is predominantly occupied by families with children still in said school. We listed the property at the end of summer as school starts. The chances of families moving then is low. Fast forward to after Spring Break this year. The first showing we had was a family and they purchased the home for full list price! In the week after we went pending I had four calls about the home. This was after six months with just one showing! When looking at days on market think about who would be looking at that home. Would that type of Buyer move during that period? 

Happy House Hunting!

Stephen