Don't Wait Until January 1 The shorter and colder days of the year have arrived and so has the fattening holiday season. We do not exercise enough, we eat too much, and we sleep way more than we need. Then, January 1 comes around and we make our New Year's Resolutions. I am going to exercise more, stop overeating, and make more of every day. But, why are you waiting?  Would not you like to feel better now? On Thanksgiving, we will visit with family and have the meal of the year and then with our stuffed guts have the family feud of the year. Here is an alternative for you.  Running, or jogging, or even just walking.  Early on Thanksgiving Thursday, there will be parades all around the country, but even earlier than that, there will be people running, especially on Thanksgiving.  Turkey ... 11/13/2009

Presumed Buyer Agency and Confidentiality Presumed Buyer Agency does not exist in all states, but it does exist in Maryland. In the past, prior to Presumed Buyer Agency, when a Buyer went to an Agent, that Buyer would, frequently, presume that the Agent was representing them, unless the Agent was the listing Agent for a property.  However, in the past, the Agent was actually representing the Seller regardless of whether or not it was the Agent's listing. Because of this confusion, Presumed Buyer Agency was created.  Now, unless the listing which is being shown is listed by the Agent or the Agent's Broker, then the Agent is presumed to be representing, in an agency relationship, that particular Buyer. A key word here is Agency.  In an agency relationship, one of the fiduciary responsibil... 11/12/2009

Buyer Agency Protocol Recently, I heard a question asked from a Buyer about Buyer Agency Protocol.  The particular Buyer had been working with a Real Estate Agent for about a month, but without a Buyer Agency Agreement.  Eventually, the Buyer found a house on his own and worked directly with the Seller to write the contract.  The Agent was not involved. Afterwards, the Buyer posed the question: "What is Realtor protocol in this type of situation, because I want to be fair?" In that month, prior to the Buyer going out on his own, the Agent had done copious amounts of work for him.  Naturally, the Buyer did not want to take advantage of this Agent. So, Mister Buyer are you willing to pay that Agent 3% of the purchase price for that deal that you made without him.  Not likely.  In actualit... 11/07/2009

The Vacant Lot It was a listing of mine, this vacant lot of about 1.5 acres.  The area was developing and it was becoming feasible to build on the lot, which was previously in a rural area without sewer systems.  The lot did not pass a perc test, but with new development in the area, public water and sewerage systems were becoming available. The adjacent lots to the right and to the left, which were of a similar size, already had houses, but up to this point these property owners also had the benefit of an open lot being next to them.  These were the first people that I approached about purchasing the property.  They both declined the offer, afterall, they already had the benefit of the lot without having to purchase it. So I opened up the marketing to the broad MLS market and beyond. T... 11/07/2009

Always Think Marketing I know of a family with two children.  I remember the father indicating that the younger of his children, his son, was not as smart as his daughter.  It was just idle talk, but it was mentioned at a family gathering.  In the future from that time, I heard the grandmother of that child mention that she did not know if he was going to be able to do well in college.  I asked her why, but she could not give me a good reason.  In actuality, there was no good reason.  This boy went to a private high ranking academic high school, played sports, and participated in several other extracurricular activites, while maintaining a high B average.  In fact, he did go to college and he did very well.  But the seed of doubt had been unwittingly planted long ago.  On the other hand... 11/04/2009

Buy that House: Negotiating Price and Days on Market I met a potenial Buyer the other day.  The type of home that he was seeking was very similar to one that I was going to be listing.  I told him about this house, which was going to be coming on the market in about 30 days and for which the Sellers were going to be asking $300,000. He said that he knew of the house and wanted to put in an offer today. I told him that the Sellers would be thrilled.  I suggested that we go to my office, write up the offer for $330,000, and get it to them today. He was puzzled.  I thought that you said that they were going to be asking $300,000. That's right.  They would be asking $300,000 in 30 days from now.  But right now the number of days on market is minus 30 so they are, of course, going to ask for... 11/02/2009

Sell That House: Showing Instructions Yes, it's the all important showing instructions. Here is how it works.  You are given a number to call and after you tell them who you are and when you want to see the property, they give you the instructions for showing the property. It may go something like this: Can you come at a different time? I thought that it was vacant. Or, it is occuppied, but the owner will be out and does not want you to use the lockbox. Or, can you come between 1:00 and 1:15?  Do we have to look at the whole place within those 15 minutes or should we just drive by and take a picture?   There is a key in the lockbox.  The key is for the front door, but the lockbox is located on the back door. Let me guess.  The code for the lock box is "OSN" or "USA".  It is so hard to r... 11/02/2009

Sell That House: A Different Perspective When I wake up in the morning and head to the bathroom to get ready for the day, I generally am looking at myself from a frontal view. The mirror is in front of me as I brush and floss my teeth, lather and shave my face, and comb my hair.  From this view, I think that I am in good shape.  Look at those well toned arms, that barrel chest and broad shoulders, and my small waist.  Yes, I am looking good. . . . but then, I catch a glimpse of myself in the mirror from the side.  Oh my goodness!  Look at that sagging chest and fat pot belly.  What happened?  Unfortunately, all too many of us do not see these other perspectives and go strutting around as if we are hot stuff while everyone giggles at us. Does the same thing happen with your house?  Are y... 10/31/2009

I Have the Latest Data Or do I?  Most real estate agents get their market reports from their local multiple listing services.  For the most part, the data contained in the MLS data bases is very accurate.  But is it all inclusive? Here is some data related to home sales that may or may not be on any given MLS: For sale by owner transactions may not be recorded on the MLS unless a real estate agent represents the buyer and chooses to enter the transaction into the system.  Although most FSBOs are eventually listed, the number which are not listed is higher at certain times in the market cycle.  When the market is depressed, many Sellers will attempt to sell on their own to keep their transaction costs low.  Likewise, when the market is hot, many Sellers will attempt to sell on their own ... 10/30/2009

GMAC Mortgage and Flood Insurance When I purchased my house several years ago using a mortgage, I did not need to get flood insurance. The house did not seem to be in a flood zone, although, the Sellers were asked the question anyway and responded that to the best of their knowledge that it was not in a flood zone. My insurance company indicated nothing about needing flood insurance nor did my mortgage company. This was all fine with me. Over the years, because of refinancing and because of every lender with whom I had a mortgage eventually selling my mortgage to some other lender, I went through about 12 different lenders.  I only refinanced twice up to that time. During all of this time, none of the lenders indicated any changes that would require me to get flood insurance. Then along... 10/29/2009

Sell That House: The Serious Time of the Year We are moving into the cold months of the year and into the holiday season. For many people who would like to sell their homes, they feel like they have missed the prime selling season and so they intend to wait until next year. There is a common belief that the best time to sell a house is in the spring when the snow has thawed, the holidays are over, the flowers are blooming, the children will soon be ending school, and vacations are still a few months away in the summer. Indeed, the numbers do show that the winter months have fewer sales than the rest of the year.  The drop may be as much as 25%. Could Sellers be missing out on a very good time to sell their homes? Here are some reasons why the winter months may be a good time for Sellers... 10/28/2009

Sell That House: First Impression The all important first impression is a very critical point in selling a home.  It is said that some buyers make up their mind, yes or no, within the fist half minute of seeing a home.  What is not thought about as often is that there are actually more than one first impressions. Of course, there may be several people who are looking at the house, but beyond that, the first impression has various stages. The first of these impressions may be the advertising. The truly most beautiful and appropriately priced home may never get anyone's attention if the listing is not done with care.  The obvious and perhaps most critical part of the listing are the photos.  Does the listing have photos, do they cover the interior and exterior, and are they good photos, w... 10/24/2009

Cap on Commissions In the last two years several companies have received assistance from the government. These huge bailouts mostly have been given to insurance companies, financial institutions, and automobile companies. As a result of these companies being saved by taxpayer money, the government has determined that it also has the right to control some of the practices within these companies. Most recently we have been hearing about limits to higher management's compensation.  The top executives may have their pay cut by as much as 90%.  Some of it may be made up for in stock options so there is at least an incentive to have the company perform well, but nonetheless, their pay will be significantly reduced. Whether the bailouts should have taken place at all was a topic of debate, alt... 10/23/2009

Freedom of Speech and Fox News The Fox News Channel calls itself fair and balanced.  First let's keep in mind that in its programming, Fox has a combination of news shows and commentary shows. On the news shows, it does appear that they are indeed, fair and balanced; they report the news and let you decide on the implications of that news. On the commentary shows, there are, at least, two which are so far to the right, that I almost fall out of my chair when I watch them.  These are Beck and Hannity.  Of course, when I watch Olbermann or Maddow on MSNBC, their far to the left leanings have me falling out of my chair in the opposite direction. Recently, there has been a situation between Fox News and the White House, whereby the White House has been excluding Fox News and downplaying the... 10/22/2009

Tech Savvy Buyers Might Be Missing Out It used to be that real estate agents were the holders of the keys, the information, and everything else related to what was on the realty market. A potential buyer would go to an agent, tell them what they wanted, and then the agent would try to find something that would meet all of the buyer's needs. But, along came the internet.  More and more information was being loaded onto the internet.  One could find the tax records, who had liens on the property and for how much, aerial photos, neighborhood information, interior and exterior photos galore, and so on. A buyer would call an agent to give them a list of houses that they wanted to see.  The role of the agent was changing.  The buyer could find the house, they just wanted the agent to walk the... 10/22/2009

Tax Credit Use There are some people who would like to purchase a home today.  Many of these people can afford to buy, but they are waiting.  They are concerned that in this economy that they could lose their job and then be left with a mortgage which they could not afford to pay. They recognize that prices are very low and that interest rates are also very low, but they are still concerned about maintaining employment.  They do not want to end up in foreclosure or out on the street. While many economists are indicating that the recession has ended, they also are suggesting that the total number of job losses may not end until mid 2010.  This economic forecast gives credence to the trepidation that many potential homebuyers are experiencing. Can the tax credit help them? Depending upon ... 10/17/2009

Running Out of Town You are out of town and are visiting Baltimore and you are a runner.  Perhaps you run 5 days or more per week, but you do not know the town and you are concerned about your safety.  Where and when can you run? Of course, runners are everywhere so you will not need to take much effort to find them in Baltimore. If it is the weekend, then you can contact one of the local running clubs that has something happening on almost every Saturday or Sunday or both.  In Harford County to the northeast of Baltimore is the RASAC running club.  You can find information about their runs at www.rasac.com.  From a 5K to a long distance run, they will be able to accommodate you. In Baltimore County, there is the Baltimore Road Runners Club.  Much of their running is done around the bea... 10/15/2009

Pay the Commission Up Front You go on a listing appointment and you state to the Sellers that the commission will be 6%. Most of the time, the Sellers are so shocked that they sign immediately.  Your presentation was so impressive that they were expecting the commission to be much higher.  They can't pass up such a great bargain. Unfortunately, the current market is slow and home values are down.  Sellers want to make up for that decreased value any way that they can. Of course, they will push you to list the house for more than it is worth.  If you are persuasive enough, they may do some improvements to the property to increase its value or to put it into its best showing condition. In the end, many Sellers view the lowering of the commission rate as the easiest way to reduce their cos... 10/14/2009

Some Thoughts on a Growing Economy Before I mention the economy, let me start with a personal story. My family, Mom and Dad, at first, started in a one bedroom apartment close to their childhood homes. It did not take long and my brother was born. It was time to start looking for a bigger place. At the time, Dad did not believe in buying unless he had the money and, indeed, my parents had saved enough to purchase a new 3 bedroom rowhouse. Soon after moving in to their new place my sister was born. Things were looking nice for my spoiled older siblings as they each had their own rooms, but then sister number two came along so move over big sis; this is my room too. A short while later I came, got kicked out of the crib, and moved in with my big brother. It was a double bed for two kids b... 10/12/2009

Rental Payment Incentive You might call it positive reinforcement versus negative reinforcement. In a typical lease, the tenant may be required to pay the rent by the first of the month.  If they are more than five days late, then a penalty may be added.  For example, the rent is $1,000 per month due by the first of every month in advance.  If they are late, then they pay a 5% penalty or a total of $1,050. Although one would think that a renter would want to avoid the penalty and hence pay their rent on time, it is all too frequent that the renter will get into a rut and consistently pay their rent late. Unfortunately, many landlords are not professional rental managers or are willing to either accept the continual late payments or to not even add the penalty to the rent.  If they other... 09/21/2009