1 hour ago
Saturday, March 31, 2012
Saturday, March 10, 2012
The Great Rebate Debate in Silicon Valley Real Estate
Some companies rebate a portion of their commissions to the buyer, or charge a lower commission than other realtors in the area. Some individual realtors do it with permission from their brokers. Some realtors do it on a case by case basis, or to help bring a transaction together.
It is a business model, not a moral, ethical, or expertise failing or superiority on the part of the realtor or brokerage.
As a consumer, you need to decide if the services being offered, as well as the personality of the individual, fit with what you need in a Silicon Valley realtor.
If you need more hand holding, someone who answers his/her phone at 10 PM, someone who spends a lot of time/money on marketing, someone who responds to emails or texts immediately, a discount broker may not be right for you. If you need someone with a key to get you in a home and who can write a contract for you, but does not get overly involved in your decision making, or puts your home on mls and just collects offers you may do better with a discount broker.
You may hear from full service brokers that discount brokers are less skilled or they would not be discount brokers. I disagree. Analogies do not always apply, but I doubt the people who run Walmart are any less skilled at retail marketing than the owners of Neiman Marcus, it is just a different business model.
Now I can say this because I am NOT a discount realtor. I personally bring a lot to the table, and cutting my commission is not one of the things I bring. Instead I offer extra services, like free staging and cosmetic upgrades for my sellers, and extensive, specialized knowledge about short sales, probate, and trust sales. However, I strongly believe that the consumer has the right to chose what business model works best for them, just as I have the right to decide which business model a brokerage has that works best for me. I choose Keller Williams Realty while other agents may choose Coldwell Banker or Remax. Coldwell Banker is not incompetent or morally bankrupt, it just is not the right fit for me.
So if you are in the market for a realtor to help you buy or sell a house, take some time to talk to some, assess your needs, and see how the individual business model fits with what is most important to you.
If you have any questions about buying or selling real estate in Santa Clara or San Mateo County please feel free to contact me.
Marcy Moyer
Keller Williams Realty
www.marcymoyer.com
marcy@marcymoyer.com
650-619-9285
D.R.E. 01191194
It is a business model, not a moral, ethical, or expertise failing or superiority on the part of the realtor or brokerage.
As a consumer, you need to decide if the services being offered, as well as the personality of the individual, fit with what you need in a Silicon Valley realtor.
If you need more hand holding, someone who answers his/her phone at 10 PM, someone who spends a lot of time/money on marketing, someone who responds to emails or texts immediately, a discount broker may not be right for you. If you need someone with a key to get you in a home and who can write a contract for you, but does not get overly involved in your decision making, or puts your home on mls and just collects offers you may do better with a discount broker.
You may hear from full service brokers that discount brokers are less skilled or they would not be discount brokers. I disagree. Analogies do not always apply, but I doubt the people who run Walmart are any less skilled at retail marketing than the owners of Neiman Marcus, it is just a different business model.
Now I can say this because I am NOT a discount realtor. I personally bring a lot to the table, and cutting my commission is not one of the things I bring. Instead I offer extra services, like free staging and cosmetic upgrades for my sellers, and extensive, specialized knowledge about short sales, probate, and trust sales. However, I strongly believe that the consumer has the right to chose what business model works best for them, just as I have the right to decide which business model a brokerage has that works best for me. I choose Keller Williams Realty while other agents may choose Coldwell Banker or Remax. Coldwell Banker is not incompetent or morally bankrupt, it just is not the right fit for me.
So if you are in the market for a realtor to help you buy or sell a house, take some time to talk to some, assess your needs, and see how the individual business model fits with what is most important to you.
If you have any questions about buying or selling real estate in Santa Clara or San Mateo County please feel free to contact me.
Marcy Moyer
Keller Williams Realty
www.marcymoyer.com
marcy@marcymoyer.com
650-619-9285
D.R.E. 01191194
Thursday, March 8, 2012
How Many Short Sales Are on the Market in Santa Clara County?
Inventory is down in all segments of the market in the Silicon Valley and multiple offers are driving prices up. However, there are still short sales, and in some areas they make up a good percentage of the homes for sale. Here are the numbers:
Palo Alto: Single Family Homes and Condos for Sale: 48 Short Sales: 0 Percentage: 0
Mountain View Single Family Homes and Condos For Sale: 39 Short Sales: 2 Percentage Short Sales: 5.1 %
Sunnyvale: Single Family Homes and Condos: 62 Short Sales: 10 Percentage Short Sales: 16%
Cupertino: Single Family Homes and Condos: 39 Short Sales: 1 Percentage Short Sales 2.5%
Santa Clara Single Family Homes and Condos: 58 Short Sales: 19 Percentage Short Sales: 32.8%
Milpitas Single Family Homes and Condos : 56 Short Sales: 23 Percentage Short Sales: 41%
San Jose Single Family Homes and Condos: 981 Short Sales: 237 Percetnage Short Sales: 24%
Morgan Hill: Single Family Homes and Condos: 119 Short Sales: 17 Percengtage of Short Sales: 14.2%
Gilroy Single Family Homes and Condos: 123 Short Sales: 38 Percentage Short Sales: 30.9%
So the ciites with the highest percentage of short sales are Milpitas with 41%, Santa Clara with 32.8%, and Gilroy with 30.9%.
If you have any questions about buying or selling short sales in Santa Clara or San Mateo County please feel free to contact me.
Marcy Moyer
Keller Williams Realty
www.marcymoyer.com
marcy@marcymoyer.com
650-619-9285
D.R.E. 01191194
Palo Alto: Single Family Homes and Condos for Sale: 48 Short Sales: 0 Percentage: 0
Mountain View Single Family Homes and Condos For Sale: 39 Short Sales: 2 Percentage Short Sales: 5.1 %
Sunnyvale: Single Family Homes and Condos: 62 Short Sales: 10 Percentage Short Sales: 16%
Cupertino: Single Family Homes and Condos: 39 Short Sales: 1 Percentage Short Sales 2.5%
Santa Clara Single Family Homes and Condos: 58 Short Sales: 19 Percentage Short Sales: 32.8%
Milpitas Single Family Homes and Condos : 56 Short Sales: 23 Percentage Short Sales: 41%
San Jose Single Family Homes and Condos: 981 Short Sales: 237 Percetnage Short Sales: 24%
Morgan Hill: Single Family Homes and Condos: 119 Short Sales: 17 Percengtage of Short Sales: 14.2%
Gilroy Single Family Homes and Condos: 123 Short Sales: 38 Percentage Short Sales: 30.9%
So the ciites with the highest percentage of short sales are Milpitas with 41%, Santa Clara with 32.8%, and Gilroy with 30.9%.
If you have any questions about buying or selling short sales in Santa Clara or San Mateo County please feel free to contact me.
Marcy Moyer
Keller Williams Realty
www.marcymoyer.com
marcy@marcymoyer.com
650-619-9285
D.R.E. 01191194
Wednesday, March 7, 2012
What Does it Take to Win in a Silicon Valley Short Sale Multiple Offer Situation
The real estate market in the Silicon Valley is very heated up this days, but there are still plenty of short sales being offered. Many of these short sales are in higher price ranges that have previously not seen a lot of short sale activity. What that means is that agents who do not have a lot of experience with short sales are making offers. Because the inventory is so low, most of these short sales are getting multiple offers. So if you are an experienced agent but not with short sales, or a buyer here are some things you need to know:
1. Don't low ball. The bank won't accept it and you will have plenty of competition from buyers wanting to pay market value.
2. Follow all of the instructions the agent gives on the MLS. If they say email instead of call, SEND AN EMAIL. Do not pester the agent with multiple calls a day. Your pre offer behavior is a sign of how you will act during the long short sale process.
3. Fill out the short sale addendum carefully. The addendum allows for the deposit and contingency period to start after bank acceptance unless you change it. CHANGE IT!!!! At a minimum you should put the deposit in escrow immediately. If you really want the home I would also recommend offering to do the inspections right away instead of waiting for bank approval. It is a risk to the buyer in case the bank does not approve, but it is better than waiting 1-3 months for an approval and then finding out the home has more repairs needed than the buyer is willing to make.
4. The home is being sold "As-Is" Don't ask for repairs.
5. Don't ask for buyer credits unless it is an FHA loan. Banks are most likely going to reject the request for credit and if your buyer needs to have it or they walk it does not put you in a good position.
6. Don't change the title and escrtow company. The seller's company has already done a lot of work and has a relationship with the listing agent.
7. Give at least 90 days for approval on the short sale addendum.
8. Present a great case on why your client is able to wait for short sale approval.
If you have any questions about short sales in San Mateo or Santa Clara Counties please feel free to contact me.
Marcy Moyer
Keller Williams Realty
www.marcymoyer.com
marcy@marcymoyer.com
650-619-9285
D.R.E. 01191194
1. Don't low ball. The bank won't accept it and you will have plenty of competition from buyers wanting to pay market value.
2. Follow all of the instructions the agent gives on the MLS. If they say email instead of call, SEND AN EMAIL. Do not pester the agent with multiple calls a day. Your pre offer behavior is a sign of how you will act during the long short sale process.
3. Fill out the short sale addendum carefully. The addendum allows for the deposit and contingency period to start after bank acceptance unless you change it. CHANGE IT!!!! At a minimum you should put the deposit in escrow immediately. If you really want the home I would also recommend offering to do the inspections right away instead of waiting for bank approval. It is a risk to the buyer in case the bank does not approve, but it is better than waiting 1-3 months for an approval and then finding out the home has more repairs needed than the buyer is willing to make.
4. The home is being sold "As-Is" Don't ask for repairs.
5. Don't ask for buyer credits unless it is an FHA loan. Banks are most likely going to reject the request for credit and if your buyer needs to have it or they walk it does not put you in a good position.
6. Don't change the title and escrtow company. The seller's company has already done a lot of work and has a relationship with the listing agent.
7. Give at least 90 days for approval on the short sale addendum.
8. Present a great case on why your client is able to wait for short sale approval.
If you have any questions about short sales in San Mateo or Santa Clara Counties please feel free to contact me.
Marcy Moyer
Keller Williams Realty
www.marcymoyer.com
marcy@marcymoyer.com
650-619-9285
D.R.E. 01191194
Monday, March 5, 2012
San Jose Short Sale Got Wells Fargo Approval
I just got approval on a Wells Fargo Short sale in San Jose. It was both a long and short road.
The long road first:
Town home put on the market in October of 2011 at $575,000. After one week we received an offer for which the seller accepted and it was sent to the bank.
Sellers were not behind on payments but are getting divorced and neither one can afford the home alone or afford to buy out the spouse.
Bank orders BPO which comes in a little under accepted price. I do not under price my short sales because I want them to get accepted by the bank. Also I knew this would be a popular property.
Negotiator immediatley rejects the short sale saying the investor will not approve short sales where the seller is not behind in payments. Keep in mind this is not a Wells Fargo policy, it is the investor who bought the loan's policy.
Seller stops making payments and we plan on going back on the market in Jan of 2012.
Before we go back on the market a buyer makes an offer which is accepted by the sellers on Jan 16th.
Offer goes to Wells Fargo and this time is accepted on Feb 29th, 6 weeks after submission.
On March 2, 2 days later the approval from the second which is a Wells Fargo HELOC arrives.
We are all happy with the results!
If you have any questions about short sales in Santa Clara or San Mateo County please feel free to contact me.
Marcy Moyer
Keller Williams Realty
www.marcymoyer.com
marcy@marcymoyer.com
650-619-9285
D.R.E. 01191194
The long road first:
Town home put on the market in October of 2011 at $575,000. After one week we received an offer for which the seller accepted and it was sent to the bank.
Sellers were not behind on payments but are getting divorced and neither one can afford the home alone or afford to buy out the spouse.
Bank orders BPO which comes in a little under accepted price. I do not under price my short sales because I want them to get accepted by the bank. Also I knew this would be a popular property.
Negotiator immediatley rejects the short sale saying the investor will not approve short sales where the seller is not behind in payments. Keep in mind this is not a Wells Fargo policy, it is the investor who bought the loan's policy.
Seller stops making payments and we plan on going back on the market in Jan of 2012.
Before we go back on the market a buyer makes an offer which is accepted by the sellers on Jan 16th.
Offer goes to Wells Fargo and this time is accepted on Feb 29th, 6 weeks after submission.
On March 2, 2 days later the approval from the second which is a Wells Fargo HELOC arrives.
We are all happy with the results!
If you have any questions about short sales in Santa Clara or San Mateo County please feel free to contact me.
Marcy Moyer
Keller Williams Realty
www.marcymoyer.com
marcy@marcymoyer.com
650-619-9285
D.R.E. 01191194
Why Is There Nothing For Sale in Palo Alto
The inventory of single family homes for sale in Palo Alto has never been lower in last two decades. There are about 30 homes for sale in any given week. In The boom years of 2000-208 there were generally 60-90 homes on the market at any given time. In 2009 when the market was at it's worst there were 110-140 homes on the market at any time.
So why are we so devoid of choices now?
No one has the definitive answer to this but I have a few thoughts.
1. The inventory is low everywhere so this is just part of a national trend, but to an extreme in Palo Alto
2. Homes are selling quickly with the average days on market being 13. The rapid sales pace helps keep the number of homes for sale very low.
3. There are not a lot of empty nestors or retired homeowners selling and moving down. Many of these people who used to sell homes allowing new people to come into Palo Alto are reluctant to sell. It is not because prices are down, because by the end of 2012 I suspect we will have regained the equity lost in 2009. the reason is that there are fewer and fewer empty nest homes. Many young people are moving back home, sometimes after college, and sometimes with their own families. Many children who grew up in Palo Alto can not afford to live here, and some are having problems finding jobs in other areas so they come home to work. the great job market in the Silicon Valley is attracting natives to come back.
4. Many long time Palo Altans are working much longer than previosu generations. It is not unusual for people to be working into their 70's and beyond which keeps people in their homes rather than selling and moving to a retirement area.
5. Palo Alto is a great place to live at any age so why leave?
6. As I said before there is a great employment market in the Silicon Valley. People are coming here to get jobs, not leaving to find a job.
There are probably more reasons but these are the ones that make sense to me.
If you have any questions about buying or selling homes in Palo Alto please feel free to contact me.
Marcy Moyer
Keller Williams Realty
www.marcymoyer.com
marcy@marcymoyer.com
650-619-9285
D.R.E. 01191194
So why are we so devoid of choices now?
No one has the definitive answer to this but I have a few thoughts.
1. The inventory is low everywhere so this is just part of a national trend, but to an extreme in Palo Alto
2. Homes are selling quickly with the average days on market being 13. The rapid sales pace helps keep the number of homes for sale very low.
3. There are not a lot of empty nestors or retired homeowners selling and moving down. Many of these people who used to sell homes allowing new people to come into Palo Alto are reluctant to sell. It is not because prices are down, because by the end of 2012 I suspect we will have regained the equity lost in 2009. the reason is that there are fewer and fewer empty nest homes. Many young people are moving back home, sometimes after college, and sometimes with their own families. Many children who grew up in Palo Alto can not afford to live here, and some are having problems finding jobs in other areas so they come home to work. the great job market in the Silicon Valley is attracting natives to come back.
4. Many long time Palo Altans are working much longer than previosu generations. It is not unusual for people to be working into their 70's and beyond which keeps people in their homes rather than selling and moving to a retirement area.
5. Palo Alto is a great place to live at any age so why leave?
6. As I said before there is a great employment market in the Silicon Valley. People are coming here to get jobs, not leaving to find a job.
There are probably more reasons but these are the ones that make sense to me.
If you have any questions about buying or selling homes in Palo Alto please feel free to contact me.
Marcy Moyer
Keller Williams Realty
www.marcymoyer.com
marcy@marcymoyer.com
650-619-9285
D.R.E. 01191194
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