58 Ice Pond Dr. Florence MA Home For Sale By Owner

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161 Granby Rd., South Hadley, MA New Condominiums at Jacob's Edge

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156 Pomeroy Lane, Amherst MA For Sale By Owner

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Coldwell Banker National Sales Event Bad For Home Sellers

I thought I'd heard it all - until I read about Coldwell Banker's national 10% off sales event that began earlier this month. In case you are out of the loop, here is the scoop:

“Despite the difficult headlines regarding our overall economy, the residential real estate market has been showing several positive signs over recent months that could be signaling a tipping point,” said Jim Gillespie, president and chief executive officer, Coldwell Banker Real Estate LLC. “Because of higher inventory, buyers have more homes to choose from and they can take advantage of near historically low interest rates and affordability levels that are the best they have been in years. The recent housing and economic recovery legislation also provides first-time homebuyers with the added incentive of a $7,500 tax credit.(1) “Yet our research and discussions with our brokers and sales associates shows that in many markets sellers remain reluctant to list their homes at the proper prices necessary to attract buyers,” continued Gillespie. “It’s our hope that the Coldwell Banker 10-Day Sales Event will move buyers off the sidelines and into the market. We are embarking on this initiative — which has never been done before on a national basis — because we believe it is critical for Coldwell Banker, as an industry leader, to help serve the needs of those individuals listing homes with a Coldwell Banker broker and to help move the U.S. real estate market in the right direction.” via PR MarketWatch.

This promotion is wrong on so many levels. By encouraging their agents to participate in the national event, they are really saying that their agents stink at being able to price properties right the first time. If the listing price they suggested to the seller when they got the listing was correct based on their vast market knowledge and superior marketing capabilities, why is it all wrong now?

Just who is benefiting by the 10% sale, anyway? It sure isn't the home seller. And what stake do the agents have in this scheme? Are they reducing their commissions to help stimulate sales? Of course not!

What happens after the 10-day blitz is over? Does the seller re-up the asking price? Will buyers go for the gimmick? I think l'd just wait until the 25% sale starts, or perhaps hold out for the FINAL MARKDOWN. One thing is for sure....you can't go up once the fire sale starts.

Come on now. When are we going to smarten up as sensible consumers and fire the people who helped create this housing mess to begin with. Save your money and sell "by owner".

Oh, The Things Real Estate Agents Say

One of our sellers got a call from an agent telling her that she had buyers who were very interested in her home. The agent showed up at her open house the next weekend (without buyers) and began to implement "FSBO Prospecting 101". In the old days, agents would be quick to tell FSBO sellers that they were down right stupid to think they could sell their home without the agent's knowledge, assistance and the coveted MLS. The new strategy is to become a partner, an ally of sorts. Provide free information and encouragement to "unrepresented sellers" (the new term for FSBOs), send them periodic gentle reminders and sympathetic phone calls to see how things are going. If you play your cards right, you may land a listing within 30- 60 days. Here's how it went with our seller:

Step 1: Be A Resource - The agent handed the seller a stack of agency information, while complimenting the owner on what a beautiful home she had. She was surprised that she wasn't already under contract, in fact. (worry nugget #1)

Step 2: Promote Feeling of Inadequacy - The agent then asked her, "Why haven't you attached the Massachusetts Lead Paint forms to your flyer?" This was designed to rattle the seller by making her feel that she was doing something illegal, I suppose. In reality, the lead paint forms are supplied to the buyer as part of the Purchase and Sale agreement, not handed out at open houses!!!

Step 3: Grab The Listing - HOLD ON! Fortunately, our seller saw through this little charade and informed the agent that she had the marketing end under control with our help and had retained a very competent real estate attorney to represent her legal interests. The visit was cut short as the ruffled agent gathered her materials and left.

What is the best way to sell confidently "by owner"? Contact your regional for sale by owner company early. Prepare your home carefully, get it appraised by a professional appraiser and set your price according the the market conditions, and expose it to a wide buyer pool.

Massachusetts Home Inspections - A Buyer's Must

You've found the home of your dreams, applied for your mortgage and the countdown to home ownership begins. But wait - how do you know that your dream home isn't really a MONEY PIT? This is not the time to call Uncle Harry to ask what he thinks about the house -- it's time to call a professional, the home inspector. Now, in the Commonwealth of Massachusetts, home inspectors need to be licensed. While an inspector may show you credentials from an association like ASHI (American Society of Home Inspectors), the NAHI (National Association of Home Inspectors) or other organization, this should not be confused with a valid license in good standing. You can verify any inspector's license through the Board of Registration of Home Inspectors at its website or by calling the Board at (617) 727- 4459.

Real estate agents in Massachusetts are not allowed to refer buyers to a home inspector. In many states buyers are unknowingly steered toward inspectors with whom an agent has a relationship, often known as "easy", while avoiding inspectors with a reputation as being "deal busters". When Massachusetts adopted regulations for home inspections in 2001, this practice within the real estate industry was exposed and efforts have been made to inform consumers regarding their rights. A real estate agent can provide you with the list of licensed inspectors, or a link to the board, but must not give you a carefully selected list to a buyer. The exception is if you are represented by a buyer's agent.

It is becoming more popular with home sellers to pay for a "pre-market inspection" to help them learn what issues may come up during their buyer's inspection. Often the seller is willing to share this inspection with a potential buyer, so don't hesitate to ask if a report is available.

In addition to having a home inspection performed, buyers may also want to have other environmental tests/inspections performed at their expense, such as radon, well water, etc. If the seller has a septic system, they must pay for and provide you with a Title V Certification before passing title. The seller usually pays for the pest inspection (termite) however it can be paid for by either the seller or the buyer.

Think that only older homes may have issues? Take a look at the following home inspector's website, showing photos supplied by several home inspectors while viewing new homes. Make sure you consider this before you sign a Purchase and Sale Agreement.

One other thing....as you're walking through the home with your inspector, beware of the inspector pointing out a flaw while telling you "his brother in law is a plumber who could fix that in a jiff." Report him here.

Dualing Agents

Little understood, yet frequently common in Massachusetts is the use of "dual agency". Years ago, agents represented sellers in the real estate transaction. Buyers kind of thought that the agent that showed them a property was "their agent" -- at least the all too friendly voice that cheerfully called them periodically seemed like their agent. In reality, the agent was working for the seller and showed properties as a "courtesy". Anything the buyer said could be carried back to the seller. Enter the buyer's agent -- a new breed of real estate agent that popped up in response to a growing concern over the fact that buyers were not really represented at all in the real estate transaction. Now we had two distinct third parties involved in the process - the buyer's agent and the seller's agent. However, in many transactions the seller's agent was also the one to show property to a buyer which posed a problem. The solution was to have both the buyer and the seller sign a piece of paper saying that they understood that the agent couldn't satisfy both parties so instead would really do nothing. Questions that a buyer might ask the agent would go unanswered. Neither could the seller have questions answered for fear of a conflict of interest arising. What really is confounding is why either party (the buyer or seller) would be willing to pay a commission to someone that did nothing to help them. Before you say that a buyer doesn't pay a commission, you're wrong. A commission is part of the cost of buying a home as the listing fee is figured into the seller's asking price. We have often heard consumers have an "aha" moment when dual agency is explained to them. Now they know why the agent appeared uncooperative. She was merely performing her role on the way to collecting her commission.

Will Agents Become Obsolete?

The increased ability of buyers to take the lead in their house hunting quest along with the downturn in the Massachusetts real estate market has begun to produce some fallout. Recently, the Boston Globe reported that GMAC Real Estate announced that it was closing 15 offices in Massachusetts and New Hampshire. I was surprised that Brett Weinberg, a spokesperson for GMAC attributed the closings "to the growth of the online housing marketplace and other technology changes than to the state's housing slump." I wonder what the NAR (National Association of Realtors) will have to say about the comment as it certainly seems to undermine years of work the association has done to promote the necessity of its members. Today over 80% of buyers are using the Internet as the primary resource to look for real estate, feeling comfortable with technology and their ability to research data. During the real estate boom years the lure of making big money attracted many to the industry. It was easy to make a commission in an inventory-starved environment. Now that the tables have turned, it's not as easy to convince sellers that an agent's marketing skills are all that important to the sale.