Now is the perfect time to purchase your first home!
Interest rates remain historically low and property selection is excellent. By taking just a few basic steps you will be soon standing at the door of your first home. But before you get to that point there are a few things we should discuss.
First home buyers are some of my absolute favorite clients! I think it has to do with their energy level and how I become a part of that energy. It seems first homes are the most memorable – there is a lot of emotion and energy that moves in along with that couch and kitchen table.
There are a couple of steps first-time home buyers can take that will greatly simplify the process of purchasing their first home. Preparing for your first home purchase starts well ahead of moving your stuff - or picking out paint and decorating schemes.
Probably one of the most important considerations is how the home will be purchased. Rich uncles can come in very handy at this point but if you do not have the luxury of a 'rich uncle' now may be a good time to consider the various financing options that are available to first-time buyers.
There are a number of great programs available to new home buyers but before you do anything else, I recommend you take a moment to talk with a REALTOR® - and I would whole-heartedly encourage that individual be affiliated with the CRS (Council of Residential Specialists) for added assurance of receiving the utmost in guidance.
A CRS designee must complete specialized, residential real estate focused, training PLUS have verifiable sales and listing volumes to be eligible for this designation. CRS designees provide better service because they want to – they are driven to. Their personal goals to provide best-practice services become the basis for the demonstrated sales performance. The bottom line is first-time home buyers can have assurance their CRS affiliated REALTOR® will provide them with the best service possible!
The value of this initial guidance is immeasurable and will do more to ensure a successful, smooth transaction than any other step in the process. In fact, once you are connected with a CRS affiliate, everything - including the search for financing - will become much easier.
Please note this as well: It is important to consider shopping for financing much in the same way as buying a pair of sneakers. You may need to shop around to find the best 'fit'. (This particular analogy has real meaning for me because I have webbed toes and a ‘bad fit’ means pain down the path. OK, that was probably too much personal information . . .)
In any event, your CRS-affiliated REALTOR® can offer the necessary guidance regarding locating qualified and capable lenders that offer programs especially designed for that perfect ‘first-step’ home buyer ‘fit’!
Have fun - and stay safe!
Jon
www.SearchFergusFalls.com
www.MNFirstHomeBuyer.com
Monday, March 31, 2008
Sunday, March 30, 2008
The Splendor of Land Ownership!
Minnesota offers a rich year-round heritage for people longing to spend time outdoors. Our land, our woods, and our lakes create the backdrop for countless memories of family gatherings and ventures. Be it ice fishing on one of our countless ‘No-Name' lakes or traveling trails - by foot or sled or hoof or ATV - Minnesota offers a bounty of outdoor recreation opportunities.
Much of this heritage began with the family farms of yesterday. Those farms became - and still remain - the primary gathering points for some of our best upland bird hunting, waterfowl hunting, deer hunting, and fishing. It would be difficult for me to imagine an existence devoid of these memories.
Speaking from personal experience, the most-cherished of all my memories of outdoor excursion and adventure have taken place on my family's home farm. A property we have been so privileged to have resided on and managed for over 100 years and five generations. This, in a nutshell, illustrates the allure of property ownership. It is the preservation of history and a link to both past and future generations.
If you are seriously considering the dream of owning your personal duck pass or deer woods or ‘Lake No-Name', there are countless opportunities available. And now, with the bonus of low interest rates, we have not just countless opportunities - but perfect opportunities - to turn those dreams into reality.
Real estate has historically been a great investment for three reasons. First, there is a limited supply (no more is being made). Second, we are seeing an ever-increasing demand as Baby Boomers seek to enter a major chapter in their lives: Retirement in Minnesota's Lake Country. And, third, it is an investment you can walk on, you can point to it on a map, and you can build all your dreams and memories on it. Try doing that on a day-by-day basis with a money market account!
Take care - and stay safe,
Jon
www.SearchFergusFalls.com
Much of this heritage began with the family farms of yesterday. Those farms became - and still remain - the primary gathering points for some of our best upland bird hunting, waterfowl hunting, deer hunting, and fishing. It would be difficult for me to imagine an existence devoid of these memories.
Speaking from personal experience, the most-cherished of all my memories of outdoor excursion and adventure have taken place on my family's home farm. A property we have been so privileged to have resided on and managed for over 100 years and five generations. This, in a nutshell, illustrates the allure of property ownership. It is the preservation of history and a link to both past and future generations.
If you are seriously considering the dream of owning your personal duck pass or deer woods or ‘Lake No-Name', there are countless opportunities available. And now, with the bonus of low interest rates, we have not just countless opportunities - but perfect opportunities - to turn those dreams into reality.
Real estate has historically been a great investment for three reasons. First, there is a limited supply (no more is being made). Second, we are seeing an ever-increasing demand as Baby Boomers seek to enter a major chapter in their lives: Retirement in Minnesota's Lake Country. And, third, it is an investment you can walk on, you can point to it on a map, and you can build all your dreams and memories on it. Try doing that on a day-by-day basis with a money market account!
Take care - and stay safe,
Jon
www.SearchFergusFalls.com
Tuesday, March 25, 2008
He was Tough, but Never Hardened
I had intended to provide a brief overview of the CRS (Certified Residential Specialist) designation today but, instead, will postpone that bit of information for another day.
I paid a visit to the Minnesota Veteran's Home located in Fergus Falls yesterday and had the opportunity to share some time with a resident. Until that moment he was unknown to me, but our conversation managed to awaken a flood of memories related to many dear friends now since departed. Without exception, the passing of each has made my life both richer with the lessons they shared . . . and less full in the profound absence of their physical presence.
Each friendship has been a journey laden with joy as immense as sorrow's depth. These men and women understood not just the concept of allegiance, but the cost. Through it all, I believe their strengths have shared a common thread. As difficult as times were - with hardships I can't even fathom - these great humans were never hardened in their hearts. In fact, that alone - their tenacious grasp on human kindness and patience, an unwavering hope for greater good - is likely what allowed them to survive these gravest of moments in our Nation's recent history.
And with the passing of each - as we pay final tribute - the same question taunts my confidence: Could we ever be as strong as these? (I pray that we should never find out.)
Not long ago I was driving through town and noticed an elderly gentlemen waiting to cross the street. I slowed to a stop so that he could cross and when I did, I recognized him - a WWII Veteran and close friend of the family. I had not seen him in some time but had heard he was engaged in yet another trying battle - a battle with dementia. As I watched him pass before me, I saw in his stride the pride he held for our Nation. Here walked a man of Honor. My throat tightened with each step he took. His journey - his life - had become an endless confrontation with forces that first sought to debilitate governments with the same callous ravage as he was now facing in his own mind.
And then, just as he stood directly in front of my paused vehicle, in a moment that will never escape my memory, he turned towards me. He was no longer able to recognize who I was, but it did not matter. From the depths of his being, he straightened his worn frame, stood at attention, and saluted. There was no point in trying to fight the tears that ran down my cheeks. He would remain unwaivering and steadfast - to God and Country - until his final step.
He turned and proceeded to the other side of the street to continue his, by all appearances, carefree journey - distracted by little, or nothing at all.
So, what does this story have to do with real estate? Absolutely nothing . . . and absolutely everything. The story is all about service to others. For each of us - you and I - in all we do, regardless of what we do, we should do our very best in service to those around us.
Today, Veteran's Day is nearly half-way around the calendar. I would hope we should not wait so long to take a moment to thank a Veteran - or 'future' Veteran - for their service to our Nation and also, through a handshake or a pat on the back, we might feel the immeasurable strength of those tough hearts that were never hardened. May God continue to bless America with hearts such as these.
Jon
I paid a visit to the Minnesota Veteran's Home located in Fergus Falls yesterday and had the opportunity to share some time with a resident. Until that moment he was unknown to me, but our conversation managed to awaken a flood of memories related to many dear friends now since departed. Without exception, the passing of each has made my life both richer with the lessons they shared . . . and less full in the profound absence of their physical presence.
Each friendship has been a journey laden with joy as immense as sorrow's depth. These men and women understood not just the concept of allegiance, but the cost. Through it all, I believe their strengths have shared a common thread. As difficult as times were - with hardships I can't even fathom - these great humans were never hardened in their hearts. In fact, that alone - their tenacious grasp on human kindness and patience, an unwavering hope for greater good - is likely what allowed them to survive these gravest of moments in our Nation's recent history.
And with the passing of each - as we pay final tribute - the same question taunts my confidence: Could we ever be as strong as these? (I pray that we should never find out.)
Not long ago I was driving through town and noticed an elderly gentlemen waiting to cross the street. I slowed to a stop so that he could cross and when I did, I recognized him - a WWII Veteran and close friend of the family. I had not seen him in some time but had heard he was engaged in yet another trying battle - a battle with dementia. As I watched him pass before me, I saw in his stride the pride he held for our Nation. Here walked a man of Honor. My throat tightened with each step he took. His journey - his life - had become an endless confrontation with forces that first sought to debilitate governments with the same callous ravage as he was now facing in his own mind.
And then, just as he stood directly in front of my paused vehicle, in a moment that will never escape my memory, he turned towards me. He was no longer able to recognize who I was, but it did not matter. From the depths of his being, he straightened his worn frame, stood at attention, and saluted. There was no point in trying to fight the tears that ran down my cheeks. He would remain unwaivering and steadfast - to God and Country - until his final step.
He turned and proceeded to the other side of the street to continue his, by all appearances, carefree journey - distracted by little, or nothing at all.
So, what does this story have to do with real estate? Absolutely nothing . . . and absolutely everything. The story is all about service to others. For each of us - you and I - in all we do, regardless of what we do, we should do our very best in service to those around us.
Today, Veteran's Day is nearly half-way around the calendar. I would hope we should not wait so long to take a moment to thank a Veteran - or 'future' Veteran - for their service to our Nation and also, through a handshake or a pat on the back, we might feel the immeasurable strength of those tough hearts that were never hardened. May God continue to bless America with hearts such as these.
Jon
Monday, March 24, 2008
Buying or Selling a Property? Pay Attention!
I was hoping to walk away with some inspirational material today after a visit with our Miniature Donkeys, Amber Rose and Benjamin. Well, I certainly did walk away with some ‘material’ but, being located on the bottom of my overshoe, it did little to inspire me.
In a near-vain effort to ‘walk off’ my new-found ‘inspiration’ I paced about near our barn in one of the few remaining drifts of snow. In that moment of dreadful futility, Amber and Ben’s message dawned on me: PAY ATTENTION!
I looked back over my shoulder to see Ben’s cheesy grin as he mused on my struggle. I thanked him for the guidance and he replied with a snort of approval while trotting back into the barn.
Indeed, it is very important to pay attention – especially when buying or selling property.
For sellers, it is absolutely vital that thought be given to the most effective marketing efforts available. Today, that means using the services of a professional agent – one that understands how to effectively market property with the goal of maximizing seller proceeds. This will likely require an understanding of broad-brush marketing techniques utilizing the latest technologies as well as an eye for the fine points of property presentation – or ‘staging’. Staging is basically a seller’s stepping back to identify and best remedy property conditions they may have grown accustomed to in their day-to-day living that might interfere with a buyer’s ability to see a seller’s home as their home.
Obviously a buyer needs to pay attention as well to find a property that best meets the buyer’s needs. Similarly, a service professional – spelled ‘REALTOR®’ - can provide equal value to a buyer. A house does not become a home unless it meets the needs of the owners. People occupy houses but they live in homes. By paying attention, a REALTOR® can hear what is most important to a buyer and help identify properties that meet the rational needs and thereby empower the buyer to make the emotional connection.
In summary, buying and selling in the real estate market should be a pleasant experience. To ensure your next transaction does not leave you feeling like you ‘stepped in something’, pay attention and hire a REALTOR®.
My next post will review a designation held by fewer than 4% of REALTORS® and how that designation adds exceptional value for both buyers and sellers. The designation is offered by the Council of Residential Specialists, the largest not-for-profit affiliate of the National Association of REALTORS®. Stay tuned to the REAL Blog For Real People!
In a near-vain effort to ‘walk off’ my new-found ‘inspiration’ I paced about near our barn in one of the few remaining drifts of snow. In that moment of dreadful futility, Amber and Ben’s message dawned on me: PAY ATTENTION!
I looked back over my shoulder to see Ben’s cheesy grin as he mused on my struggle. I thanked him for the guidance and he replied with a snort of approval while trotting back into the barn.
Indeed, it is very important to pay attention – especially when buying or selling property.
For sellers, it is absolutely vital that thought be given to the most effective marketing efforts available. Today, that means using the services of a professional agent – one that understands how to effectively market property with the goal of maximizing seller proceeds. This will likely require an understanding of broad-brush marketing techniques utilizing the latest technologies as well as an eye for the fine points of property presentation – or ‘staging’. Staging is basically a seller’s stepping back to identify and best remedy property conditions they may have grown accustomed to in their day-to-day living that might interfere with a buyer’s ability to see a seller’s home as their home.
Obviously a buyer needs to pay attention as well to find a property that best meets the buyer’s needs. Similarly, a service professional – spelled ‘REALTOR®’ - can provide equal value to a buyer. A house does not become a home unless it meets the needs of the owners. People occupy houses but they live in homes. By paying attention, a REALTOR® can hear what is most important to a buyer and help identify properties that meet the rational needs and thereby empower the buyer to make the emotional connection.
In summary, buying and selling in the real estate market should be a pleasant experience. To ensure your next transaction does not leave you feeling like you ‘stepped in something’, pay attention and hire a REALTOR®.
My next post will review a designation held by fewer than 4% of REALTORS® and how that designation adds exceptional value for both buyers and sellers. The designation is offered by the Council of Residential Specialists, the largest not-for-profit affiliate of the National Association of REALTORS®. Stay tuned to the REAL Blog For Real People!
Thursday, March 20, 2008
Will Mortgage Rates Drop Any Lower?
Greetings! I have had opportunity to visit with several of our area lenders over the last couple of days and I would like to take a moment to summarize some of the things I have both read and heard. What I have been told - and supported with what I have reviewed - is that interest rates continue to fluctuate almost daily but are probably at the bottom of the range right now and are remaining very attractive with 15-year money at 4.75 and 30-year money settling around 5.5. The opinion of many people - based on my conversations and readings - is that rates are not likely to drop much beyond their present levels - if at all - and it might be a good time to consider locking in if that is in keeping with your plans. As always, your mileage may vary.
That reminds me, I was speaking with a lawyer-friend of mine the other day and he suggested I include a disclaimer with anything I might state in this blog that could be construed as 'advice'.
Here it is:
FINAL DISCLAIMER on the contents of My REAL Blog
The statements expressed herein do not reflect the thoughts or opinions of either myself, my company, my friends, or my donkeys: don't quote me on that; don't quote me on anything; this disclaimer is subject to change without notice; text is slightly enlarged to show detail; resemblance to actual persons, living or dead, is unintentional and coincidental; dry clean only; do not bend, fold, or mutilate; anchovies or jalapenos added to this disclaimer upon request; your mileage may vary; no substitutions are allowed; for a limited time only while supplies last; offer void where prohibited; this disclaimer is provided "as is" without any warranties expressed or implied; Do not remove this tag under penalty of law; Confined Space - Do Not Enter; user assumes full liabilities; not liable for damages due to use or misuse; equal opportunity disclaimer; no shoes, no shirt, no blogging; caveat emptor; read at your own risk; this disclaimer may contain material some readers find objectionable; parental advisory: explicit lyrics; keep away from pets and small children; limit one-per-family please; no money down; no purchase necessary; ask us about our non-guns-trade-in plan; you need not be present to win; some assembly required; batteries not included; action figures sold separately; this disclaimer was packed full, contents may have settled during transmitting; sanitized and sealed for your protection; do not read if safety seal is broken; do not read while operating a motor vehicle or heavy equipment; safety reading goggles may be required during use; call before you use this disclaimer; use only with proper ventilation; for external use only; if a swelling, redness, rash, or irritation develops, discontinue reading; do not place near a flammable or magnetic source; keep away from open flames; avoid inhaling fumes or contact with nasal membranes; disclaimer contents under pressure, may explode if incinerated (joke – really); smoking this disclaimer may be hazardous to your health; the best safeguard, second only to abstinence, is the use of this disclaimer; text is made from 100% recycled electrons and magnetic particles; no electrons were injured in preparing this disclaimer; no animals were used to test this disclaimer; no salt, MSG, preservatives, artificial colour or flavour added; if ingested, do not induce vomiting, if symptoms persist, consult a medicinal blogger; possible penalties for early withdrawal; one size fits all; this disclaimer is valid only at participating blog sites; slightly higher north of Brisbane; allow four to six weeks for delivery; if defects are found, do not try to fix them yourself, but return to an authorized disclaimer writer; please remain seated until the disclaimer has come to a complete stop; reading in the mirror may be more complicated than it appears; this disclaimer does not cover hurricanes, floods, earthquakes, and other Acts of God, sonic boom vibrations, electromagnetic radiation from nuclear blasts, unauthorized repair, improper installation, misuse, typos, misspelled words, missing or altered signatures, and incidents owing to computer or disk failure, accidental file deletions, or milk coming out of your nose due to laughing while drinking; other restrictions may apply; in the event a disclaimer should be found necessary for this disclaimer, this disclaimer shall serve as the official disclaimer disclaiming anything that may necessitate a disclaimer thereby disclaiming any claimable act and declaring as disclaimable any allegation stemming from claims made by the original or any subsequent author of this disclaimer.
I think that should about cover it. Until next time - stay safe.
Jon
http://www.fergusfallsproperties.com/
http://www.searchfergusfalls.com/
That reminds me, I was speaking with a lawyer-friend of mine the other day and he suggested I include a disclaimer with anything I might state in this blog that could be construed as 'advice'.
Here it is:
FINAL DISCLAIMER on the contents of My REAL Blog
The statements expressed herein do not reflect the thoughts or opinions of either myself, my company, my friends, or my donkeys: don't quote me on that; don't quote me on anything; this disclaimer is subject to change without notice; text is slightly enlarged to show detail; resemblance to actual persons, living or dead, is unintentional and coincidental; dry clean only; do not bend, fold, or mutilate; anchovies or jalapenos added to this disclaimer upon request; your mileage may vary; no substitutions are allowed; for a limited time only while supplies last; offer void where prohibited; this disclaimer is provided "as is" without any warranties expressed or implied; Do not remove this tag under penalty of law; Confined Space - Do Not Enter; user assumes full liabilities; not liable for damages due to use or misuse; equal opportunity disclaimer; no shoes, no shirt, no blogging; caveat emptor; read at your own risk; this disclaimer may contain material some readers find objectionable; parental advisory: explicit lyrics; keep away from pets and small children; limit one-per-family please; no money down; no purchase necessary; ask us about our non-guns-trade-in plan; you need not be present to win; some assembly required; batteries not included; action figures sold separately; this disclaimer was packed full, contents may have settled during transmitting; sanitized and sealed for your protection; do not read if safety seal is broken; do not read while operating a motor vehicle or heavy equipment; safety reading goggles may be required during use; call before you use this disclaimer; use only with proper ventilation; for external use only; if a swelling, redness, rash, or irritation develops, discontinue reading; do not place near a flammable or magnetic source; keep away from open flames; avoid inhaling fumes or contact with nasal membranes; disclaimer contents under pressure, may explode if incinerated (joke – really); smoking this disclaimer may be hazardous to your health; the best safeguard, second only to abstinence, is the use of this disclaimer; text is made from 100% recycled electrons and magnetic particles; no electrons were injured in preparing this disclaimer; no animals were used to test this disclaimer; no salt, MSG, preservatives, artificial colour or flavour added; if ingested, do not induce vomiting, if symptoms persist, consult a medicinal blogger; possible penalties for early withdrawal; one size fits all; this disclaimer is valid only at participating blog sites; slightly higher north of Brisbane; allow four to six weeks for delivery; if defects are found, do not try to fix them yourself, but return to an authorized disclaimer writer; please remain seated until the disclaimer has come to a complete stop; reading in the mirror may be more complicated than it appears; this disclaimer does not cover hurricanes, floods, earthquakes, and other Acts of God, sonic boom vibrations, electromagnetic radiation from nuclear blasts, unauthorized repair, improper installation, misuse, typos, misspelled words, missing or altered signatures, and incidents owing to computer or disk failure, accidental file deletions, or milk coming out of your nose due to laughing while drinking; other restrictions may apply; in the event a disclaimer should be found necessary for this disclaimer, this disclaimer shall serve as the official disclaimer disclaiming anything that may necessitate a disclaimer thereby disclaiming any claimable act and declaring as disclaimable any allegation stemming from claims made by the original or any subsequent author of this disclaimer.
I think that should about cover it. Until next time - stay safe.
Jon
http://www.fergusfallsproperties.com/
http://www.searchfergusfalls.com/
Tuesday, March 18, 2008
Are We There Yet?
As kids, do you remember asking this question when on a trip, ‘Are we there yet?’ I’m actually hearing a good number of adults asking this same question today – but they are referring to the current real estate ‘road trip’. Are we there yet? Have we hit the ‘bottom’ in the real estate market?
It is a good question – and a fair question. The challenge in answering the question is the ‘bottom’ is a relative point. It is relative to the pre-existing downturn and also to the identifiable, and sustained, uptick. To put it another way, it is only possible to identify the bottom in hindsight. I’ve had people recently share with me that we will hit the ‘bottom’ in June of 2008. The truth of the matter is we won’t know for certain if the bottom occurs in June until November – or even later.
As I had shared in an earlier post, I believe the region of West Central Minnesota was largely insulated from the brunt of the national downturn in the housing market. We were fortunate. There are probably a number of reasons for this but here are three that seem to make sense to me. First, a significant component of our local economy is based on agriculture and farming and this segment had a good year. Second, our property values are attractive in comparison to other areas of the country. Third, the ‘Baby Boomers’ are coming. They are very interested in our area lakes and communities as they plan and prepare for their retirement dreams. Without a doubt, the counties of Otter Tail and Douglas are on their radar!
There has been some very encouraging news in recent days that would suggest the local housing market is making positive movement. Recent statistics on foreclosures in Otter Tail County are suggesting an improvement over the last two years. Otter Tail county reported three fewer foreclosures in 2007 than were reported in 2006. This is great news!
In addition, interest rates remain historically low. This, in combination with a very favorable inventory and selection of properties currently on the market, and with new offerings arriving daily, is generating excitement amongst buyers. In fact, the last couple of weeks have shown increased buyer activity and interest.
So, are we there yet? I think we are very close, but here is the point that begs consideration: If we are just in front of the ‘bottom’, or just beyond it, the market will basically be priced at the same level. However, now may still be the best time to make the purchase because now there is both certainty in interest rates and the established pricing levels as many currently listed properties have been priced to reflect little market appreciation. Rest assured, current inventory holds a number of very, very attractive values.
As future properties are priced in a market of greater confidence, sellers may be more likely to reflect a measure of sustainable market appreciation in their pricing. As for interest rates, only time will tell. The latest information I have from one of our local lenders is mortgage rates have been on a mini-rollercoaster – but remaining in a very favorable range.
There you have it - perhaps some of the best free advice out there. As always, your actual mileage may vary. I hope you stop again to review the latest posts on My REAL Blog – REAL Information for REAL People!
Jon Drews
Website: http://www.searchfergusfalls.com/
Website: http://www.fergusfallsproperties.com/
BLOG: My REAL Blog
It is a good question – and a fair question. The challenge in answering the question is the ‘bottom’ is a relative point. It is relative to the pre-existing downturn and also to the identifiable, and sustained, uptick. To put it another way, it is only possible to identify the bottom in hindsight. I’ve had people recently share with me that we will hit the ‘bottom’ in June of 2008. The truth of the matter is we won’t know for certain if the bottom occurs in June until November – or even later.
As I had shared in an earlier post, I believe the region of West Central Minnesota was largely insulated from the brunt of the national downturn in the housing market. We were fortunate. There are probably a number of reasons for this but here are three that seem to make sense to me. First, a significant component of our local economy is based on agriculture and farming and this segment had a good year. Second, our property values are attractive in comparison to other areas of the country. Third, the ‘Baby Boomers’ are coming. They are very interested in our area lakes and communities as they plan and prepare for their retirement dreams. Without a doubt, the counties of Otter Tail and Douglas are on their radar!
There has been some very encouraging news in recent days that would suggest the local housing market is making positive movement. Recent statistics on foreclosures in Otter Tail County are suggesting an improvement over the last two years. Otter Tail county reported three fewer foreclosures in 2007 than were reported in 2006. This is great news!
In addition, interest rates remain historically low. This, in combination with a very favorable inventory and selection of properties currently on the market, and with new offerings arriving daily, is generating excitement amongst buyers. In fact, the last couple of weeks have shown increased buyer activity and interest.
So, are we there yet? I think we are very close, but here is the point that begs consideration: If we are just in front of the ‘bottom’, or just beyond it, the market will basically be priced at the same level. However, now may still be the best time to make the purchase because now there is both certainty in interest rates and the established pricing levels as many currently listed properties have been priced to reflect little market appreciation. Rest assured, current inventory holds a number of very, very attractive values.
As future properties are priced in a market of greater confidence, sellers may be more likely to reflect a measure of sustainable market appreciation in their pricing. As for interest rates, only time will tell. The latest information I have from one of our local lenders is mortgage rates have been on a mini-rollercoaster – but remaining in a very favorable range.
There you have it - perhaps some of the best free advice out there. As always, your actual mileage may vary. I hope you stop again to review the latest posts on My REAL Blog – REAL Information for REAL People!
Jon Drews
Website: http://www.searchfergusfalls.com/
Website: http://www.fergusfallsproperties.com/
BLOG: My REAL Blog
Monday, March 17, 2008
Has Anyone Seen My Shillelagh?
Welcome back! I think it is time to have a little fun. Today is St. Patrick’s Day and I’m Irish. If that were not reason enough, we have been hitting the books pretty hard in the last few posts. It is time to take a break and talk about fun stuff. With that said, let’s get a proper start to the day:
Top o' ye mornin' ter ya! Dust aff yisser shillelagh, be wearin’ somethin' green, an' dance ter a 'appy Oirish jig for a bit. Jist mind de wee people are aboyt an' 'ill be up ter mischief. That is why yer 'av de shillelagh 'andy in case any shud git close enoof dat yer might git a craic at dem wee buggers! Dare nigh, oi fale better already!
Well now, I hope you enjoyed that as much as I did . . . . .
I was out driving one of my favorite routes this last weekend - traveling up Highway 78 from Ashby and then across Highway 38 over to Highway 5 leading to Clitherall. It was mid-afternoon and the blue skies made for a spectacular backdrop as I traveled this especially hilly blend of fields and woods. The air temp was still a little cool – probably in the teens but the warmth of the sun was so great it caused bare-dirt fields to steam heavily.
Traveling north on Highway 5 I spotted six or seven Whitetail Deer comfortably grazing in an alfalfa field. They were probably a little more than a half-mile distant and were enjoying the exposed alfalfa that had – until this last week – been buried under a deep blanket of snow.
Later in the afternoon I went for a walk with Nikita, my Golden Retriever, just east of Fergus Falls. We were on a tract of land purchased by the Fergus Falls Fish & Game Club. The property includes benches along the way for a rest – if needed – and also has a very fine shelter located in the parking area. As we walked across the native prairie grass geese flew low overhead – trumpeting the arrival of our dear, old friend – SPRING!
Nikita and I just took it all in. I stopped for a moment to watch the continuous succession of small goose flocks passing overhead in waves. Then I turned slightly to better view the setting sun melt into a fiery display of red and golden hews. I thought to myself, ‘What a wonderful world.’ This is West Central Minnesota. A place where Canadian Geese and Trumpeter Swans gather on the open water of the Otter Tail River, a land glittered with literally 1,000’s of lakes, and a land where friendships grow strong. It is the place I am so privileged to call ‘home’.
Well, that is about all I have for now. I hope you enjoyed this read a bit more than the last post on 'Dual Agency' but, all things have their time and place on my REAL blog. Today it is snowing again. Spring feels a bit more distant. I need to remember it is only March and, as she is so prone to, Mother Nature is about her own form of Minnesota 'March Madness.'
In closing:
'May the road rise up to meet you,
May the wind be ever at your back
May the sun shine warm upon your face
And the rain fall softly on your fields
And until we meet again, May God hold
you in the hollow of his hand.'
- Traditional Irish Blessing
Thanks for stopping by.
Jon
P.S. - Would you like to be notified of future postings? It is as simple as subscribing to my blog. A link is at the very bottom of this thread and it is FREE!
Web: http://www.searchfergusfalls.com/
Web: http://www.fergusfallsproperties.com/
Blog: http://www.fergusfalls-realestate.com/
Top o' ye mornin' ter ya! Dust aff yisser shillelagh, be wearin’ somethin' green, an' dance ter a 'appy Oirish jig for a bit. Jist mind de wee people are aboyt an' 'ill be up ter mischief. That is why yer 'av de shillelagh 'andy in case any shud git close enoof dat yer might git a craic at dem wee buggers! Dare nigh, oi fale better already!
Well now, I hope you enjoyed that as much as I did . . . . .
I was out driving one of my favorite routes this last weekend - traveling up Highway 78 from Ashby and then across Highway 38 over to Highway 5 leading to Clitherall. It was mid-afternoon and the blue skies made for a spectacular backdrop as I traveled this especially hilly blend of fields and woods. The air temp was still a little cool – probably in the teens but the warmth of the sun was so great it caused bare-dirt fields to steam heavily.
Traveling north on Highway 5 I spotted six or seven Whitetail Deer comfortably grazing in an alfalfa field. They were probably a little more than a half-mile distant and were enjoying the exposed alfalfa that had – until this last week – been buried under a deep blanket of snow.
Later in the afternoon I went for a walk with Nikita, my Golden Retriever, just east of Fergus Falls. We were on a tract of land purchased by the Fergus Falls Fish & Game Club. The property includes benches along the way for a rest – if needed – and also has a very fine shelter located in the parking area. As we walked across the native prairie grass geese flew low overhead – trumpeting the arrival of our dear, old friend – SPRING!
Nikita and I just took it all in. I stopped for a moment to watch the continuous succession of small goose flocks passing overhead in waves. Then I turned slightly to better view the setting sun melt into a fiery display of red and golden hews. I thought to myself, ‘What a wonderful world.’ This is West Central Minnesota. A place where Canadian Geese and Trumpeter Swans gather on the open water of the Otter Tail River, a land glittered with literally 1,000’s of lakes, and a land where friendships grow strong. It is the place I am so privileged to call ‘home’.
Well, that is about all I have for now. I hope you enjoyed this read a bit more than the last post on 'Dual Agency' but, all things have their time and place on my REAL blog. Today it is snowing again. Spring feels a bit more distant. I need to remember it is only March and, as she is so prone to, Mother Nature is about her own form of Minnesota 'March Madness.'
In closing:
'May the road rise up to meet you,
May the wind be ever at your back
May the sun shine warm upon your face
And the rain fall softly on your fields
And until we meet again, May God hold
you in the hollow of his hand.'
- Traditional Irish Blessing
Thanks for stopping by.
Jon
P.S. - Would you like to be notified of future postings? It is as simple as subscribing to my blog. A link is at the very bottom of this thread and it is FREE!
Web: http://www.searchfergusfalls.com/
Web: http://www.fergusfallsproperties.com/
Blog: http://www.fergusfalls-realestate.com/
Sunday, March 16, 2008
What's So Great About Dual Agency?
Greetings! We continue to be teased with signs of spring in West Central Minnesota. Yesterday I noticed a scruff of bright green moss defying winter's hold - clinging to the base of a 150-year old oak tree - in our back yard. What a glorious sight - and reminder of hope!
My last post made reference to a couple of related concepts that Minnesota real estate agents are required to present to customers early in the customer-agent relationship. Both terms fall under the umbrella of agency law and disclosure. Basically it is establishing the framework of any relationship between the agent (of the Broker*) and the customer. The following is only a generic illustration - for further clarification I recommend speaking directly to a real estate agent and ask any specific questions you may have.
Let's say a seller has listed their home with a real estate agent. The agent, acting on behalf of their Broker, is representing the seller. Let's continue on with this scenario and bring in a buyer. The buyer has contacted the agent with this listing and is interested in purchasing the property. Before the agent proceeds with discussing the purchase of this property there are several points that need to be clarified by the agent. First, according to law, the agent needs to discuss agency relationship. Putting it another way, the agent needs to present the various relationship-types available to the buyer. The agent also needs to inform the buyer that the agent is representing the seller regarding this property in question. Also, the agent needs to know if the buyer has been working with another agent prior to this contact - regarding the purchase of this - or any other - property.
If the buyer (up to this point also referred to as a 'customer') desires to be formally represented by the agent, the buyer and agent would sign a Buyer-Broker Agreement and the buyer would become a 'client'. This agreement assures the buyer of certain specific fiduciary responsibilities and, in exchange, the buyer agrees the agent will receive compensation in the event the buyer purchases a property of a specific type within a specific time period. The disclosure also indicates what amount of that compensation will come from the commission charged to the seller. As I indicated in an earlier post, it is most typical for the buyer to contribute zero commission to the agent as the commission charged the seller is generally designed to compensate the agent for securing the buyer.
OK, now we have the agent representing both a buyer and a seller. Both buyer and seller are clients. Is this possible!?! Yes it is - and it is called 'dual agency'. Under dual agency, an agent represents the interests of both buyer and seller. In fairness to both parties, the agent cannot discuss matters related to a party's price, terms, or motivation with the other party.
At first this might sound like the makings for a messy stalemate but it actually works very well. The reason it works so well is the agent - even though he cannot discuss 'price, terms, or motivation' with the other party - understands the positions of both parties and is optimally positioned to effectively negotiate on behalf of both parties. As in any relationship, open communication and trust are foundational. This is why violations in agency law are treated very seriously - an agent can lose their license in a heart beat if they fail to properly disclose and represent agency law.
Dual agency is a very positive arrangement and serves to benefit both buyers and sellers because having only one agent involved in the relationship creates the opportunity to establish solid matches between buyers and sellers. A good agent will be paying attention to both clients - and is committed to representing both in their best interests. Dual agency helps reduce the potential for conflict that can result from having yet another party thrown into the mix. Instead of having two separate agents - one representing buyer and one representing seller - there is only one agent representing both.
Now, must a buyer or seller agree to dual agency in order to be served by an agent? No, they do not. But that understanding needs to be made upfront and the agent is responsible to explain the benefits and consequences of any relationship to buyers and sellers at the onset of any potential relationship with the agent.
Just one more illustration: A buyer meets with an agent and states their desire to be represented by the agent but will not agree to dual-agency. This is a workable arrangement but it has potential downside for the buyer in that the buyer would not be able to have that agent provide representation with the agent's own listings because the agent is also representing the seller (the listing). A similar downside could be realized by a seller that does not agree to dual agency if a qualified buyer happens to insist on representation by the same agent (broker).
Agency relationship is one of the most critical parts of the relationship with a real estate agent. I wanted to attempt to explain it and hopefully I have not left anyone more confused after reading the post than they were before. As always, if there are questions - or a need for further clarification - please drop a line. I am here to serve you and always welcome that opportunity. Cheers!
*Minnesota real estate agents are licensed through the MN Department of Commerce. A real estate agent has to be formally associated with a real estate broker before being permitted to serve the public in the capacity of a real estate agent. In a nutshell, all services provided by the agent are on behalf of the broker. In that context, to be represented by an agent is to be represented by the agent's broker (or simply 'broker').
Jon
Web: www.SearchFergusFalls.com
Web: www.FergusFallsProperties.com
Blog: www.FergusFalls-RealEstate.com
P.S. - Would you like to be notified of future postings? It is as simple as subscribing to my blog. A link is at the very bottom of this thread and it is FREE!
My last post made reference to a couple of related concepts that Minnesota real estate agents are required to present to customers early in the customer-agent relationship. Both terms fall under the umbrella of agency law and disclosure. Basically it is establishing the framework of any relationship between the agent (of the Broker*) and the customer. The following is only a generic illustration - for further clarification I recommend speaking directly to a real estate agent and ask any specific questions you may have.
Let's say a seller has listed their home with a real estate agent. The agent, acting on behalf of their Broker, is representing the seller. Let's continue on with this scenario and bring in a buyer. The buyer has contacted the agent with this listing and is interested in purchasing the property. Before the agent proceeds with discussing the purchase of this property there are several points that need to be clarified by the agent. First, according to law, the agent needs to discuss agency relationship. Putting it another way, the agent needs to present the various relationship-types available to the buyer. The agent also needs to inform the buyer that the agent is representing the seller regarding this property in question. Also, the agent needs to know if the buyer has been working with another agent prior to this contact - regarding the purchase of this - or any other - property.
If the buyer (up to this point also referred to as a 'customer') desires to be formally represented by the agent, the buyer and agent would sign a Buyer-Broker Agreement and the buyer would become a 'client'. This agreement assures the buyer of certain specific fiduciary responsibilities and, in exchange, the buyer agrees the agent will receive compensation in the event the buyer purchases a property of a specific type within a specific time period. The disclosure also indicates what amount of that compensation will come from the commission charged to the seller. As I indicated in an earlier post, it is most typical for the buyer to contribute zero commission to the agent as the commission charged the seller is generally designed to compensate the agent for securing the buyer.
OK, now we have the agent representing both a buyer and a seller. Both buyer and seller are clients. Is this possible!?! Yes it is - and it is called 'dual agency'. Under dual agency, an agent represents the interests of both buyer and seller. In fairness to both parties, the agent cannot discuss matters related to a party's price, terms, or motivation with the other party.
At first this might sound like the makings for a messy stalemate but it actually works very well. The reason it works so well is the agent - even though he cannot discuss 'price, terms, or motivation' with the other party - understands the positions of both parties and is optimally positioned to effectively negotiate on behalf of both parties. As in any relationship, open communication and trust are foundational. This is why violations in agency law are treated very seriously - an agent can lose their license in a heart beat if they fail to properly disclose and represent agency law.
Dual agency is a very positive arrangement and serves to benefit both buyers and sellers because having only one agent involved in the relationship creates the opportunity to establish solid matches between buyers and sellers. A good agent will be paying attention to both clients - and is committed to representing both in their best interests. Dual agency helps reduce the potential for conflict that can result from having yet another party thrown into the mix. Instead of having two separate agents - one representing buyer and one representing seller - there is only one agent representing both.
Now, must a buyer or seller agree to dual agency in order to be served by an agent? No, they do not. But that understanding needs to be made upfront and the agent is responsible to explain the benefits and consequences of any relationship to buyers and sellers at the onset of any potential relationship with the agent.
Just one more illustration: A buyer meets with an agent and states their desire to be represented by the agent but will not agree to dual-agency. This is a workable arrangement but it has potential downside for the buyer in that the buyer would not be able to have that agent provide representation with the agent's own listings because the agent is also representing the seller (the listing). A similar downside could be realized by a seller that does not agree to dual agency if a qualified buyer happens to insist on representation by the same agent (broker).
Agency relationship is one of the most critical parts of the relationship with a real estate agent. I wanted to attempt to explain it and hopefully I have not left anyone more confused after reading the post than they were before. As always, if there are questions - or a need for further clarification - please drop a line. I am here to serve you and always welcome that opportunity. Cheers!
*Minnesota real estate agents are licensed through the MN Department of Commerce. A real estate agent has to be formally associated with a real estate broker before being permitted to serve the public in the capacity of a real estate agent. In a nutshell, all services provided by the agent are on behalf of the broker. In that context, to be represented by an agent is to be represented by the agent's broker (or simply 'broker').
Jon
Web: www.SearchFergusFalls.com
Web: www.FergusFallsProperties.com
Blog: www.FergusFalls-RealEstate.com
P.S. - Would you like to be notified of future postings? It is as simple as subscribing to my blog. A link is at the very bottom of this thread and it is FREE!
Friday, March 14, 2008
Buyers Need a REALTOR® Too
I have spent the last couple days touching on a few key points that illustrate the value a REALTOR® can add to a seller's goals in the current real estate market. Today I will speak on the importance of selecting a REALTOR® when buying real estate. First, I am going to clarify the same key point I brought to the attention of sellers: Not all real estate sales agents are REALTORS®. A REALTOR® is a member of the National Association of REALTORS® (NAR) and, as such, is bound by a professional code of conduct and ethical handling of all real estate transactions. Being a member of the NAR is a commitment and speaks volumes concerning what you can and should expect from an NAR member. Bottom line: Be certain your real estate agent is a REALTOR®!
Most buyers are very comfortable - and, in fact, generally welcome, having a REALTOR® involved with their real estate purchases. This is especially true in this area because buyers do not typically pay fees directly to a real estate agents in exchange for their services. Most often if a property has been offered for sale through a REALTOR®'s service, that seller is paying a commission in exchange for the service provided. To the buyer's benefit, the seller's commission generally covers the cost of bringing that buyer to the seller.
Speaking about commissions, this is typically the sole basis of income for most real estate sales agents. What this means is if a buyer makes a property purchase using a real estate sales agent, that agent is compensated for their efforts as part of the transaction with the seller. If, for whatever reason, a buyer uses the services of several sales agents - and does not sign an Exclusive Buyer-Broker Agreement (more on this later) with any agent, the whole matter of which agent is compensated becomes garbled.
This is important for buyers on several levels. The first and primary consideration is the buyer, in effect, is 'hiring' a sales agent when the buyer agrees (either formally or informally) to enlist the agent's services. Sales agents basically compete with one another for this opportunity to provide services to a buyer. My recommendation to buyers, in exchange for the loyalty and service a sales agent will be providing, is to work with and through only one sales agent (ideally read 'REALTOR®'). This is not to say a buyer should not take some time in interviewing and selecting a REALTOR® that is a good match. Neither is it suggesting a sales agent should not be 'fired' if they are not performing as expected but it would encourage a buyer to take into consideration how a buyer's actions may impact who 'gets paid' if buyer happens to have more than one agent involved without clarifying who 'the one' agent is. For greatest harmony, loyalty needs to be a two-way path.
A buyer needs to understand the market sufficiently to be able to make good decisions. A buyer should expect a REALTOR® to provide the guidance, insights, and information necessary to facilitate making those good decisions. A full-time REALTOR® with the ability to listen, a passion for research, and a desire to take the time to treat your transaction with the high level of seriousness it deserves will be your best bet. Ask about credentials, ask about the market, take some time to determine if you would be comfortable working together. Selecting the right REALTOR® is much like picking the perfect puppy: you don't necessarily go with the first one to jump up and down at your feet.
Over the next couple of posts I will address the Exclusive Buyer-Broker Agreement I had referred to earlier in this post. I will also talk about something very important - call 'dual agency' and how it can benefit both buyers and sellers.
I hope you stay tuned! Please note, you can subscribe to this blog at the bottom of the page. Doing so will ensure you receive my new posts as they are published.
Make it a great day!
Jon
http://www.searchfergusfalls.com/
http://www.fergusfallsproperties.com/
Blog: http://www.fergusfalls-realestate.com/
Most buyers are very comfortable - and, in fact, generally welcome, having a REALTOR® involved with their real estate purchases. This is especially true in this area because buyers do not typically pay fees directly to a real estate agents in exchange for their services. Most often if a property has been offered for sale through a REALTOR®'s service, that seller is paying a commission in exchange for the service provided. To the buyer's benefit, the seller's commission generally covers the cost of bringing that buyer to the seller.
Speaking about commissions, this is typically the sole basis of income for most real estate sales agents. What this means is if a buyer makes a property purchase using a real estate sales agent, that agent is compensated for their efforts as part of the transaction with the seller. If, for whatever reason, a buyer uses the services of several sales agents - and does not sign an Exclusive Buyer-Broker Agreement (more on this later) with any agent, the whole matter of which agent is compensated becomes garbled.
This is important for buyers on several levels. The first and primary consideration is the buyer, in effect, is 'hiring' a sales agent when the buyer agrees (either formally or informally) to enlist the agent's services. Sales agents basically compete with one another for this opportunity to provide services to a buyer. My recommendation to buyers, in exchange for the loyalty and service a sales agent will be providing, is to work with and through only one sales agent (ideally read 'REALTOR®'). This is not to say a buyer should not take some time in interviewing and selecting a REALTOR® that is a good match. Neither is it suggesting a sales agent should not be 'fired' if they are not performing as expected but it would encourage a buyer to take into consideration how a buyer's actions may impact who 'gets paid' if buyer happens to have more than one agent involved without clarifying who 'the one' agent is. For greatest harmony, loyalty needs to be a two-way path.
A buyer needs to understand the market sufficiently to be able to make good decisions. A buyer should expect a REALTOR® to provide the guidance, insights, and information necessary to facilitate making those good decisions. A full-time REALTOR® with the ability to listen, a passion for research, and a desire to take the time to treat your transaction with the high level of seriousness it deserves will be your best bet. Ask about credentials, ask about the market, take some time to determine if you would be comfortable working together. Selecting the right REALTOR® is much like picking the perfect puppy: you don't necessarily go with the first one to jump up and down at your feet.
Over the next couple of posts I will address the Exclusive Buyer-Broker Agreement I had referred to earlier in this post. I will also talk about something very important - call 'dual agency' and how it can benefit both buyers and sellers.
I hope you stay tuned! Please note, you can subscribe to this blog at the bottom of the page. Doing so will ensure you receive my new posts as they are published.
Make it a great day!
Jon
http://www.searchfergusfalls.com/
http://www.fergusfallsproperties.com/
Blog: http://www.fergusfalls-realestate.com/
Wednesday, March 12, 2008
Selling Real Estate in Today's Market (continued)
Yesterday I offered a few points of guidance for folks considering the prospect of selling their home - and how to select the right REALTOR® for the job. As I indicated, I believe one of the greatest contributions a REALTOR® can make to sellers in our current, local market (in addition to providing far more effective marketing than most individuals are capable of generating) is the ability to be involved with buyers and help to educate today's buyers on fair value in today's market. Let me clarify with the following illustration:
I'm out shopping and a friend approaches with this almost pained expression on his face. My first thought is, 'Who died?!' As they step towards me they typically say, 'So, Jon, how are you doing?' and then proceed to give me an extended pat on the shoulder. I feel like I'm being comforted at the funeral of a loved one. Then they conitinue with, 'Boy, this real estate business must be really, really, REALLY bad, huh?' Another shoulder squeeze.
Here comes the part I love. I say, 'Actually, the market is very active and I couldn't be happier!' At this point most people give me this drop-jaw gasp like they were just splattered with fallout from a goose 'passing' overhead. I am finding a big part of my job in the current real estate market has been educating people so they have the information necessary to establish more realisitc perceptions and expectations. This applies to buyers as well as sellers.
Now I'm not suggesting the national real estate market hasn't gone through some downward adjustment over the last year. It has and it is a fact. And, sadly, a lot of people have been adversely effected. What I am saying is the local market has not been nearly so impacted. Unfortunately, people read and hear the national news headlines and, on first impression, could be lead to believe local properties can be purchased for pennies on the dollar. This is not true. Most local property owners have been fortunate.
For sellers serious about selling there are only a couple of questions: First, are you going to sell, or are you going to stay in your current home? Second, if you need to sell, what will you do if your property has not sold in three months - or six months - or a year? If you know you need to sell in a certain time-frame, you need to be using the services of a real estate professional - a REALTOR®. But not just any REALTOR®; you need a proactive REALTOR® that has a realistic understanding of local property values and a solid web-based marketing strategy!
Here is another factor for sellers to consider: Today's buyers have access to more real estate marketing information then ever before - and many have done their homework. Bargain shoppers aside, today's serious buyers are comparing the value of properties on the internet long before they are speaking with a real estate sales agent. The properties that are selling first are the properties that are properly priced - and effectively marketed. If a property is priced too high, or if a property's best features are not adequately presented, the sales effort will be compromised.
In a nutshell my guidance in today's post for those selling real estate in today's market is as follows: Using a REALTOR® is a smart move. REALTORS® are in the best position to educate buying prospects on the value of local properties. This can spare sellers from the misery of dealing directly with bargain hunters. In addition, as I stated yesterday, a well-positioned, web-based marketing campaign brings the greatest number of serious buyers and, and more importantly, serious offers.
Tomorrow I am going to share a few thoughts that should be helpful to prospective buyers. See you then!
Jon
http://www.searchfergusfalls.com/
http://www.fergusfallsproperties.com/
I'm out shopping and a friend approaches with this almost pained expression on his face. My first thought is, 'Who died?!' As they step towards me they typically say, 'So, Jon, how are you doing?' and then proceed to give me an extended pat on the shoulder. I feel like I'm being comforted at the funeral of a loved one. Then they conitinue with, 'Boy, this real estate business must be really, really, REALLY bad, huh?' Another shoulder squeeze.
Here comes the part I love. I say, 'Actually, the market is very active and I couldn't be happier!' At this point most people give me this drop-jaw gasp like they were just splattered with fallout from a goose 'passing' overhead. I am finding a big part of my job in the current real estate market has been educating people so they have the information necessary to establish more realisitc perceptions and expectations. This applies to buyers as well as sellers.
Now I'm not suggesting the national real estate market hasn't gone through some downward adjustment over the last year. It has and it is a fact. And, sadly, a lot of people have been adversely effected. What I am saying is the local market has not been nearly so impacted. Unfortunately, people read and hear the national news headlines and, on first impression, could be lead to believe local properties can be purchased for pennies on the dollar. This is not true. Most local property owners have been fortunate.
For sellers serious about selling there are only a couple of questions: First, are you going to sell, or are you going to stay in your current home? Second, if you need to sell, what will you do if your property has not sold in three months - or six months - or a year? If you know you need to sell in a certain time-frame, you need to be using the services of a real estate professional - a REALTOR®. But not just any REALTOR®; you need a proactive REALTOR® that has a realistic understanding of local property values and a solid web-based marketing strategy!
Here is another factor for sellers to consider: Today's buyers have access to more real estate marketing information then ever before - and many have done their homework. Bargain shoppers aside, today's serious buyers are comparing the value of properties on the internet long before they are speaking with a real estate sales agent. The properties that are selling first are the properties that are properly priced - and effectively marketed. If a property is priced too high, or if a property's best features are not adequately presented, the sales effort will be compromised.
In a nutshell my guidance in today's post for those selling real estate in today's market is as follows: Using a REALTOR® is a smart move. REALTORS® are in the best position to educate buying prospects on the value of local properties. This can spare sellers from the misery of dealing directly with bargain hunters. In addition, as I stated yesterday, a well-positioned, web-based marketing campaign brings the greatest number of serious buyers and, and more importantly, serious offers.
Tomorrow I am going to share a few thoughts that should be helpful to prospective buyers. See you then!
Jon
http://www.searchfergusfalls.com/
http://www.fergusfallsproperties.com/
Tuesday, March 11, 2008
Selecting a REALTOR® when selling
Over the next couple of days I would like to share a few tips regarding the selection of a REALTOR® - whether buying or selling. Today I will speak on selecting a REALTOR® when selling. I should clarify a point right away. Not all real estate sales agents are REALTORS®. A REALTOR® is a member of the National Association of REALTORS® (NAR) and, as such, is bound by a professional code of conduct and ethical handling of all real estate transactions. Being a member of the NAR is a commitment and speaks volumes concerning what you can and should expect from an NAR member. Bottom line: Be certain your real estate sales agent is a REALTOR®!
As in most situations, people are generally attracted to someone who they enjoy associating with and also instills confidence. This is the 'comfort' factor and, as important as it is, there should be a little more included in the equation. Let's take a quick look at some of the other considerations next.
First, I believe it is important to step back to assess the situation and understand there are really 5 key factors involved in placing a piece of real estate on the market. The first 3 factors are controlled by the seller and the final two are not. The factors controlled by the seller include the condition of the property, the listing price, and the selection of a marketing strategy (choosing a REALTOR®). The factors beyond the control of the seller are the property location and the market response.
All too often sellers will select a sales agent based on the outcome of a 'bidding war.' Basically, two or more agents review the property and the seller picks the agent who suggests the highest list price. These situations are generally destined to become a bad experience for a number of reasons. Typically what happens is the seller now has artificially high expectations regarding the market value of their property, the property doesn't sell in a timely manner (in fact, all it does is help sell other realistically priced properties), and, in the end, the listing price is reduced one or more times until buyers will take a serious look.
The misfortune for the sellers is that a great deal of time was lost in the process and the property becomes 'shelf worn' until the sellers realize they need to reduce their asking price. Very often, because the property does not sell in a timely manner, buyers become suspicious that there might be something wrong with the property because it hasn't sold and end up offering even LESS for the property than what it would have sold for if it had been properly priced at the onset. The lesson here is to not list a property with the highest bidder.
So what should you look for when listing a property with a REALTOR®? Look for results! Ask questions about the market strategy. Be absolutely certain your agent has a strong web presence. Why? Over 80% of home buyers turn to the internet when considering a purchase. If your agent does not have an effective web presence, your property is not going to receive the exposure it deserves. More buyers mean more competition and more competition ultimately means more dollars in the seller's pocket at closing. This is a good thing.
This is probably enough information for now. I plan to continue this discussion over the next few days. By the way, if there are any questions, I would love to hear from you! Talk to you later.
Jon
www.SearchFergusFalls.com
www.FergusFallsProperties.com
As in most situations, people are generally attracted to someone who they enjoy associating with and also instills confidence. This is the 'comfort' factor and, as important as it is, there should be a little more included in the equation. Let's take a quick look at some of the other considerations next.
First, I believe it is important to step back to assess the situation and understand there are really 5 key factors involved in placing a piece of real estate on the market. The first 3 factors are controlled by the seller and the final two are not. The factors controlled by the seller include the condition of the property, the listing price, and the selection of a marketing strategy (choosing a REALTOR®). The factors beyond the control of the seller are the property location and the market response.
All too often sellers will select a sales agent based on the outcome of a 'bidding war.' Basically, two or more agents review the property and the seller picks the agent who suggests the highest list price. These situations are generally destined to become a bad experience for a number of reasons. Typically what happens is the seller now has artificially high expectations regarding the market value of their property, the property doesn't sell in a timely manner (in fact, all it does is help sell other realistically priced properties), and, in the end, the listing price is reduced one or more times until buyers will take a serious look.
The misfortune for the sellers is that a great deal of time was lost in the process and the property becomes 'shelf worn' until the sellers realize they need to reduce their asking price. Very often, because the property does not sell in a timely manner, buyers become suspicious that there might be something wrong with the property because it hasn't sold and end up offering even LESS for the property than what it would have sold for if it had been properly priced at the onset. The lesson here is to not list a property with the highest bidder.
So what should you look for when listing a property with a REALTOR®? Look for results! Ask questions about the market strategy. Be absolutely certain your agent has a strong web presence. Why? Over 80% of home buyers turn to the internet when considering a purchase. If your agent does not have an effective web presence, your property is not going to receive the exposure it deserves. More buyers mean more competition and more competition ultimately means more dollars in the seller's pocket at closing. This is a good thing.
This is probably enough information for now. I plan to continue this discussion over the next few days. By the way, if there are any questions, I would love to hear from you! Talk to you later.
Jon
www.SearchFergusFalls.com
www.FergusFallsProperties.com
Monday, March 10, 2008
Good Listeners
Some people may wonder why I have a photo of a newborn Miniature Donkey included with my profile information. The fact of the matter is this youngster is one of the residents of our household. Her name is Amber Rose and she, along with her stable mate, Benjamin (pictured above), reside on our hobby farm in Otter Tail County.
The first question people ask me - when they discover I have Miniature Donkeys - is, 'What do you do with them?' I suppose this is a fair question but it had not really occurred to me until I was asked. My response is always the same, 'I talk to them.' Donkeys are very good listeners.
Having lived with Donkeys, I have come to appreciate the importance of being a good listener. And being a good listener is something my clients and customers often compliment when we are discussing real estate.
I suppose it is because I have never lived anywhere else - only in Otter Tail County - that I sometimes need to be reminded how very wonderful this area of our counrtry is - especially for people seeking to step out of the rat race. Fergus Falls is the county seat of Otter Tail County - and Otter Tail County has 1048 of the finest lakes in the state of Minnesota.
So this is where I live - amongst a belt of lakes that runs across West Central Minnesota. I spend my days assisting individuals with real estate transactions and, at days end, I go home to talk with Amber Rose and Benjamin. As always, they remind me it is important to take time to relax, and that I shouldn't take myself too seriously, and . . . to be a good listener.
Jon Drews
Sunday, March 9, 2008
First Post: REAL information for REAL people
It is a simple truth: Real estate is BIG business - and it is SMART business. Typically real estate investments have been a fantastic opportunity. Real estate is foundational to our entire economy. Housing activity is generally a very good indicator of our economic health - or, at least, a good indicator for our perceptions of said health.
I would like to open this blog with a simple introduction to myself and to my personal mission statement. I am Jon Drews, a licensed full-time real estate sales agent in the state of Minnesota. My mission statement is as follows: 'Lead with Service.' It is to the point, it is clear, and it is sincere.
With my mission statement in mind, I would only add one additional bit of clarification: First and foremost I consider myself to be a customer service specialist - that specializes in real estate transactions. This is what I do. I provide assistance - my services - to individuals - clients and customers - involved with real estate transactions. For those unfamiliar with the process, it does not take long to become aware of the complexities associated with real estate.
One of those 'complexities' can best be referred to as 'the paperwork'. Another underlying complexity is being able to interpret the market, the jargon, and a keen ability to identify and remain focused on strategies that serve the best interests of clients. This is a job for a full-time, real estate professional with the necessary time and resources available to understand and act upon what is truly important in every transaction.
This is where it all begins - and where it all ends: customer service. Regardless if you are buying real estate or selling real estate - or still on the fence, you really only need one thing to 'un-complicate' your venture: outstanding customer service.
Thank you for your time. If a real estate transaction is in your future, please contact me at your earliest convenience. I would be very pleased to provide my assistance to you regarding any real estate transactions being considered in the greater Fergus Falls area of Otter Tail County or the Alexandria region of Douglas County.
Sincerely,
Jon
Jon@FergusFallsProperties.com
http://www.searchfergusfalls.com/
I would like to open this blog with a simple introduction to myself and to my personal mission statement. I am Jon Drews, a licensed full-time real estate sales agent in the state of Minnesota. My mission statement is as follows: 'Lead with Service.' It is to the point, it is clear, and it is sincere.
With my mission statement in mind, I would only add one additional bit of clarification: First and foremost I consider myself to be a customer service specialist - that specializes in real estate transactions. This is what I do. I provide assistance - my services - to individuals - clients and customers - involved with real estate transactions. For those unfamiliar with the process, it does not take long to become aware of the complexities associated with real estate.
One of those 'complexities' can best be referred to as 'the paperwork'. Another underlying complexity is being able to interpret the market, the jargon, and a keen ability to identify and remain focused on strategies that serve the best interests of clients. This is a job for a full-time, real estate professional with the necessary time and resources available to understand and act upon what is truly important in every transaction.
This is where it all begins - and where it all ends: customer service. Regardless if you are buying real estate or selling real estate - or still on the fence, you really only need one thing to 'un-complicate' your venture: outstanding customer service.
Thank you for your time. If a real estate transaction is in your future, please contact me at your earliest convenience. I would be very pleased to provide my assistance to you regarding any real estate transactions being considered in the greater Fergus Falls area of Otter Tail County or the Alexandria region of Douglas County.
Sincerely,
Jon
Jon@FergusFallsProperties.com
http://www.searchfergusfalls.com/
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