The Pros and Cons of Condo Ownership

As a former Broker I can tell you that the word "Condo" is misleading. Sometimes people think of a condo as being part of a group of homes in a big project like situation and sometimes they think of high rise buildings as in New York City. To talk about the pros and cons of ownership of Condos, we must separate the two.

I worked in Southern California and there we had many beautiful villages of condos that were relaxed and calm. We also have some really high end condos in Malibu Beach or Redondo Beach. They were essentially mini-homes connected by a common wall. They were more homes that were sold for less value than regular homes with many upgrades.

Homes vs. Condo:

You could have bought a nice 2 bedroom home for around $179,000 and a condo in a beautiful setting cost $159,000. Now when you add on the association dues, you are essentially paying the same price. The difference being the home had fewer upgrades and possibly an older kitchen and bath. The condo had more baths and newer kitchens, in some cases.

As with any apartment complex, being very close with your neighbors, there could be arguments and disagreements on children, pets and noise. If you are lucky enough to have a good neighbor, you are indeed lucky, but many do have problems. This is why an association is set up to relieve homeowners of problems. If the association is good and run fairly, then the majority of problems are alleviated.

It does seem that in high end condos in Malibu and Redondo costing above $400,000 they have less problems. High end condos in New York go for millions of dollars and they started selling them on "Time shares" So more of a vacation villa for a fraction of the amount. Pales Verdes is another up and coming place for high end condos on top of the mountain. The views are spectacular and beautiful and something many are opting for.

First Time Home Buyers:

Again, we have many pros and cons here. For the first time home buyer who is dying to move to a new home, they have many low-end condos for sale. Even some was selling for slightly under $100,000. These are great for first time home buyers it is better to own than to rent of course. Just be careful where you buy and always remember location.

You will find a great deal of condos in foreclosure and they are going at great deals. Check on the amount of foreclosed properties in a complex before buying. Also, always talk to the neighbors and see how they are and if they are happy with the association. When people are in foreclosure, the last thing they pay is the association dues.

When foreclosures loom in a complex, the dues must be increased. The association will sue to get their dues, but this only adds problems to an already problem-laden complex. So even if the condo cost $50,000, check out everything first. You may just be moving into a place where you will lose all you put into the home.

Beautiful Investments that increase in value:

There are many areas that are worth investing in such as Malibu Beach, Seal Beach, and Santa Barbara in California. As in all states, they have good areas and they have booming areas. Finding foreclosure in these areas will show to be a positive move. Banks are less enthusiastic to loan on condos in regular areas, but these boom areas, banks run to. Do your homework first, before purchasing anywhere.

A beautiful condo with many upgrades and at the right price can be a great decision. It is too hard to say the pros and cons of condos as it is like comparing New York City to Harlem. It just is too many variables. Each condo in each town has its benefits and its failings. Look for a reputable Broker to guide you on the right path. As in most things in real estate, look for location, location and location first.

Home Staging: Tips to Prepare for an Open House

Home staging involves a home that is prepared and ready and showing in the best of condition. There are many types of home staging to include garage, home and open house. Having open house staging is no different than staging for selling the home. The feeling of extreme comfort, welcoming and the air of prospects should fill the home. When the prospective buyer sits down in the chair, he should image himself in this home forever.

There are some guidelines to follow when preparing for an open house and they should be followed to a tee. If you want to sell your home for the most money possible, that is.

1. The home must be in perfect condition. It should sparkle as if "Mr. Ajax" himself cleaned the home.

2. Get rid of all excess clutter, including boxes and cartons and especially pictures and mementos of your family. The buyer should imagine himself in the home. A photograph of your family only reminds him that it is your home.

3. Turn on the lights and open the curtains and bring the outside in. The house needs to shine with light. By opening the curtains, the home looks like a home and not a dungeon.

4. Let the home smell of baked bread. Bake some bread or some cookies right before the open house and let the entire home smell of baked goods. Light some incense candles with a pleasant but not over-powering smell such as vanilla or cinnamon.

5. Make everything neutral in tones. White and off white sell better than bright yellow and orange curtains. Make your home a neutral home so any decor would fit.

6. Have beautiful furnishings and fresh cut flowers everywhere. A few flower plants and hanging baskets always brighten a home and a kitchen. A few pots of parsley and coriander on the window sill.

7. Let your agent be in charge so leave the home when it is open. Let the agent feel free to talk with the buyer about the home's disadvantage and advantages freely.

8. Understand that even if you spent $50,000 on your kitchen, that does not mean your price will go up that much. When you look at comparables, a new kitchen nets around $5000 more. So be careful with any and all additions you are planning to do to the home, to sell the home. Things that do help are leaving the appliances and curtains in the home.

9. Make sure the garage is staged along with the home, so the garage needs to be clear of clutter and very neat.

10. Be smart. Do not turn any offer down, always counter. Do not say, "No way, no how and not today." Wait, think and counter.

11. If anyone ask about your agent, say they are the best. If you have confidence in the agent, the new buyer will too.

Many homes are sold through open houses, so having your home in the best of condition is a must. Follow the advice of your agent and the steps involved here and hopefully the next article you read about is closing a deal.

When is it Time to Fire your Broker!!

If you have to ask the question; how do I know it's time to fire my Realtor? Then you are already half way there. If you are to the point of being disgusted with your Realtor, many times the situation has "too many rocks on the pile." No matter how you may try to tolerate your Realtor, your bad feelings already held in your heart will hinder the deal.

Many might suggest you go to the Broker and complain and this could be a solution if you are ready to walk out the door. If you complain to the Realtor's boss and get that person in trouble, you are heading for major problems. The Realtor in most cases will feel resentful and hurt and will not be the agent you want today or tomorrow.

When do you go to see the Broker:

When you are ready to give an ultimatum, that you want to cancel your contract. As a former Realtor and Broker, I can tell you that by going to my boss, you are putting my job in jeopardy. With so many agents looking for a job and work, the Broker will not tolerate problems. The Broker does not want headaches and possible lawsuits. Even if the agent promises you and the Broker the "Moon," you will not get your house sold for a satisfactory price.

What are the best steps to take:

1. Lie, yes lie. Never confront your agent head on about your anger for her or him. Tell them that you are wondering how you can help in the sale of your home. Never scream and holler and whimper either. Remember honey gets more than sour lemons.

2. Sit down with your Realtor and very calmly state that you are wondering exactly what they are doing to sell your home. Wait and listen to what they are saying. Ask them in which newspapers your house is being advertised, so you can have a picture for your keepsakes.

3. Suggest that there might be things that you as an owner could do to help her. Is she is arrogant and "put-offish" then mark down one reason to fire her.

4. Ask about her schedule for open houses and when she suggest you should be gone. If she says, she does not have time for open house, then ask if maybe her Broker could hold the open house? If she refuses, mark down two reasons to fire her.

After these four steps, you will have some ideal if your Realtor is the type of person you can reason with. There are some Realtors who just plain should not be in the business. They became a Realtor because they heard it was where the money is or they became a Realtor because Uncle Bob told them to. If your Realtor is not a "people" person or they show no inclination at all towards alleviating the problem, then it is time to go to step number five.

Step number five:

By this time, you are angry and you are mad and you are ready to explode. You want some answers and you want them now. You need to sell your home and you need it sold yesterday, so what can you do? How you handle step number five will depend on if you get out of your contract or not. Most companies have a policy to release any seller from the listing is a problem arises. This is an undisclosed policy.

Now it is time to address the problems of your home not selling with your Realtor, "Calmly." It may be that it is not your Realtor's fault, but the market's fault. It may be that you are being too hasty with coming to step number five. So now you have to get some answers. If your agent was not cooperative in steps one through four, why would she be cooperative on step number five, think.

Give an ultimatum to the agent that you want to be released out of your contract if she fails to produce a valid offer within thirty days. This will show her you mean business, but still give her an out, respectfully. If the agent says, that there is not way "in God's Green Heaven," then proceed to withdraw the offer and fire her on the spot.

State that you want released out of your contract and that you will talk to her Broker about this situation "Tomorrow." This will either scare her or create anger. There is no way she wants you going to her boss. If she is any kind of agent at all, she will reassure you that she can sell your home and show you the proof.

The thing about ultimatums, you must be willing to go forward with what you threaten or the next time she will not believe you. Once you make an ultimatum, you just might make an enemy, so be prepared. But it is better to make an enemy than to have a house on a market for 3 years.

A smart seller never list his home for more than three months and therefore eliminates confrontations with the Broker. It is not logical to even think of firing a broker during a three month period, unless they did something awful. Before listing your home get specifics from the Broker or agent about what they intend to do to sell your home.

If there are 40 homes for sale in your neighborhood, how did you pick this agent to begin with. Ask many questions, get a title company comparables, not something off the Internet, and interview several agents. After talking to five agents, you will get a pretty good ideal of what your home will sell for. If one agent offers you $30,000 more for your home than the rest, do not consider that agent. 

In a foreclosure market, an overpriced home will never sell. Even if your spent $50,000 on a new kitchen, you can only sell your home for what the house will appraise for. So when considering to fire your agent, ask yourself if you are indeed being unreasonable? If your agent is unfit then definitely "FIRE HER."

Beginning Realtors - Avoid These Pitfalls

The certificate arrives in the mail and now you are an official Real Estate Agent. What exactly does that mean? It means you are self-employed and now the real game begins. As a beginner, you must be careful not to fall and make the same mistakes that others before you have made. It is called, "How to avoid common pitfalls," and it is so easy to do.

Rule number 1

Do not show any homes or talk to anyone until you know what you are doing. Too many agents want to rush out and sell a home when they have not learned the basics. So learn about financing, escrows, banks, how to close a deal and how to treat a client. Your Broker should assign someone to guide you on your first steps.

How can you possibly close a deal on a house when you do not know the current interest rates? How can you show houses to anyone when you do not know how to open a lock box? How can you sell a home if you know nothing about creative financing? Learn the ropes and then talk to potential buyers and sellers.

A typical question from a potential seller is, "How long have you been in the business." A new recruit might say, "1 week." You are not going to list that home for sure. A smart recruit would laugh and say, "It has been so long, I cannot remember." Experience and thoughtful thinking brings rewards.

Rule number 2

Do not take anyone to lunch. It is a trick of many potential buyers to suggest that they are hungry and they want to eat at Red Lobster. Red Lobster can cost a fortune to feed a family. Many Realtors so want to please the buyer and show them how important they are and so they cave in. Only to find out the potential buyer has no intention of buying a home at all or intends to write a very low ball figure.

The cost of Real Estate is huge and it can bankrupt you if you are not careful. The board dues alone can cost close to one thousand dollars. You must buy signs, cards, have a good car, have very nice clothes and shoes and go to all the functions. Think before you spend all your money on dinners for clients.

Any client serious about maing an offer will come to your office and sign the paperwork there. A serious buyer will not try to weasel a free dinner out of you.

Rule number 3

Be different from the rest of the agents. Do not do what every "Tom, Dick and Harry" is doing. If everyone is wearing a blue dress, then wear a white dress. Get information on loans from everyone, but develop your own style. Research what sells and try it out. Remember, honesty and kindness will close more deals. A sure fire way to lose business, is to never keep your promise. A Realtor must at all times be ethical. 

Rule number 4

Do not wine and dine at night. If you want to be a reputable Realtor, then be respectable at night. A Realtor is watched at all times and no one wants to list their home with a drunk.

Rule number 5

Be smart and don't give all your free business cards away. You are trying to make money and if you give it all away, you will be in a negative frame very quick. Make a flyer and copy one business card on the flyer and give the flyer away. 

Rule number 6

Go to many open homes and socialize with the other Realtors. Become a friend and a confidant to many. Learn about what homes are on the market and talk with the listing agent about what the seller is willing to sell for. If a buyer walks into the office and ask you to look at homes and you have no ideal what homes are on the market, you are not going to look professional.

So have an inventory in your pocket. Know many areas of the town and always remember the agents. Deals are closed more often by having friends for listing agents. The listing agent will remember you as a kind and easy going agent and the listing agent will want to help.

Rule number 7

Do not require everyone to be prequalified. When you first meet a buyer and he wants to get to know you, he is often frightened by an agent who will not even show him the time of day, unless he goes to her bank and signs papers. A buyer must first be your friend. Show them five homes and if they don't like those homes, suggest nicely they get prequalified. Suggest that you are only doing this to help them. Hand them a list of homes for sale in the price they want and make an appointment for them with a loan officer.

The nice and easy approach is better than being harsh. Helping the buyer get to know you first is more important than making sure he is qualified. For those five homes that are shown to the buyer, can be used later to show other buyers. This increases your inventory and makes the world love you more.

The world of the Realtor is very "Cut Throat." and you better learn from the beginning how to survive. You need to watch out for these pitfalls and many more, but if you institute these 7 rules of engagement, you will be a success. Real Estate can also be the best job in the world. It comes with many pleasures, satisfactions and rewards. All Realtors should give a gift at closing. It shows how much you appreciate their business and I guarantee you, that simple gift will bring you return business.