How do I know if I'm ready to buy a house?

Kinda funny really. It reminds me of "How do I know if I'm ready to have a baby?"  Simply put, you'll never truly "know." But you can take steps to ensure that you're prepared as best as possible to own a home...or...if it's best to wait.

Recently, (perhaps because at the time of this post it's tax time) I've had a sea of prospective clients asking me two questions: 1) How do I know if I'm ready to buy a home? and 2) Is now a good time to buy a home?

Truth be told, after 10+ years in the industry, I have learned that those aren't actually the questions these prospective clients are really asking.
 What most are really asking is: 1) Do I qualify to buy a house right now? and 2) Will I make a profit (build equity) if I buy now, or should I wait until it's a better time?

Let me give you my very tongue-in-cheek "I'm exhausted, so let's cut to the chase!" answers, then I'll go more deeply into the "There are a number of key factors that influence the answer to those questions." answers after that.

Now, with my tongue firmly place in my cheek...here are the "I'm exhausted, so let's cut to the chase!" answers to those questions!

Q1: Do I qualify to buy a house right now?  

A1: How could I possibly know? I don't have access to any of your financial information. If I did, I wouldn't know what to do with it.  I'm a real estate expert. I, by choice, don't "do" loans. I search for homes, negotiate terms on contracts, and protect my clients throughout real estate transactions. That's a full time job, in itself. Talk to a lender. Better than that, make your lender your new best friend! He or she is the ONLY person with the power to get you into a home, today...in three months...or next year. Your lender can accurately answer questions such as; "Should we wait until after we pay our taxes?" "Should I pay off all of my credit cards?" '"We need a new car. Is it OK to buy one now, or do we have to wait until we close escrow on our home before we buy another car?" Let the experts be experts. Find a lender that you trust, then trust them to provide you with the answers and service that you deserve. 

Q2: Will I make a profit if I buy now?

A2: (See A1:) How could I possibly know? I don't have a crystal ball. Nobody does.  Even the very best agents in the country don't influence the market, they respond to it. Yes, there are market trends; both macro and micro markets, but they are only indicators, not a means to see into the future. If I find a crystal ball, I'd be happy to share it with you. That said, if I really had one, I'd probably be surfing with my boys in Costa Rica while my wife tans herself on the beach. 

OK. Now with that out of the way, let's lift the hood and see what's really inside.

Q1: Do I qualify to buy a house right now?  

A1: The very honest answer is often the hardest to hear, but you've got to sit down with a lender, or two or three, and let them run the numbers. This can, and often does, ramp up anxiety levels, but please know this. The lender's I have the pleasure of working with are not just phenomenal and ethical in what they do, but they are true professionals.  They've heard and seen it all. 

• "But my divorce isn't even final and I have two credit cards that I just walked away from!" Seriously, they don't care...at all.  Their job is not unlike mine in a way.  Their job is to determine what the fact area, create a realistic plan of action, then execute. 
• "I just want to pay off all of my credit cards before I talk to a lender." STOP!  Take a breath.  Often times, paying OFF credit cards can be detrimental to your credit scores.  "Should I pay them down?"  Perhaps. "How much should I pay off?" Ask the lender!  They are on your team! They deal with this ALL THE TIME.
• "But we just bought a boat, and I don't think we'll qualify." I've seen boats, RVs, Student Loans, Back Taxes, etc. paid off as a condition of the terms of a loan.  In short, let the experts be the experts.  Remember, they don't get paid until or unless you secure a loan...through them!  What better motivation could they have to work efficiently and effectively on your behalf?  It's perfect, really. They have to perform...or they don't get paid! So, don't wonder if you qualify to buy a home right now.  Ask.  Just call 'em and ask 'em!  Like jumpin' off the high-dive! It's really easy.  It just feels hard before you do it. Once you do it, it's a piece of cake!

Q2: Will I make a profit if I buy now?

A2: The market will always fluctuate. A homes values is the function of several dynamic and critical factors. In business 101 they call it Supply & Demand. Just like football tickets! When supply goes up, price goes down. When Demand goes up, price goes up. How does that basic law of business influence real estate values?

• Supply: How many comparable homes are for sale right now?
• Are new homes being built?
• Is your area one with quick turn over, or is it a more mature area where homeowners tend to keep their homes, or even 'will' their homes to their children?
• Over the last year; three years; five years, have the number of active listings increased or decreased?

• Demand: How many buyers are not just looking (ie, clicking on similar homes on Zillow) but are both willing and able to purchase a comparable home?
• Is your local metropolitan area thriving or retracting?
• Are more people moving to your area or away from your area?
• Are mortgage interest rates (how much it costs to borrow money) low enough to create a sea of buyers? (As interest rates decrease, demand for your home increases, and vice-versa.) or are the Feds threatening a rate hike, scaring prospective buyers out of the market?
• Are their grants and down-payment assistance programs available?
• Is your home ready for an FHA or VA buyer?

• Costs of Buying: 
• How important is it that you rest at night knowing that your landlord isn't going to sell the home your living in, or worse, default on it without telling you.
• Tax benefits. Yes, there are tax deductions for home owners, and there are often deductions for the closing costs involved in making that purchase. But, are those deductions worthwhile?  Do the costs (both financial and emotional) of purchasing and owning a home outweigh the costs of renting? 

OK, from a practical, Little League and Girl Scout Cookies standpoint, what does all of this mean?  It means this:

1. Don't wonder if you qualify. Ask a lender...today.  
2. Unless you're buying for investment purposes only, buy a home to live in, not with plans of cashing out big-time in the next 2 or 3 years.

Until next time.

 

Andy Blasquez  Cell ~ 909.539.3292
BRE#01826135
E-mail me on Andy.Blasquez@gmail.com

A Simple Look at the Home Buying Process.

What does (or should) the home buying process look like?

Below is a Step-By-Step breakdown of a "typical" real estate transaction from a buyer’s point of view. Before I go on, however, it's important to know that ‘typical’ is a word I tend to run from.  I’ve closed hundreds of deals over the past 9 years, and if one thing stands true, it's the fact that each transaction is unique and brings with it its own challenges and rewards. 

Notice too, that I didn’t say that this is a ‘Day-By-Day’ breakdown of a real estate transaction. Buyers and sellers (and I) would love to know a day-by-day schedule, but that's just not realistic.  The number of days necessary to complete each stage, safely, effectively, and efficiently changes from one transaction to the next. With that out of the way, here we go!  

Think first about the lifestyle you want to lead,
then start your search.

1. Find the best real estate agent you can. Find a Realtor that is going to advocate solely for you. Don't use an agent who's going to simply fill out paperwork in hopes that you and one of their other clients will meet at some arbitrary price that’s half way between what you want and what they want. Each team in the Superbowl has it's own coach.  Don't you deserve one too?
2. Meet with your lender and establish your maximum budget as well as what type of financing you’ll be using.  The result of this meeting should be your Pre-Approval Letter.  This letter is your golden ticket.  It enables you to submit offers to sellers, expressing not just your interest and willingness to buy, but your ability to buy as well.
3. Discuss your Needs, Wants, and Budget.  With whom? Your spouse? Your friend? Your Realtor? Your grandparents?  Yes to all of the above.  Each will have a different perspective and help. Keep in mind that what you “Need” is different from what you “Want”, and what you “Can afford” is different from what you “Should afford”.  
4. View homes.  Much of this process can be done online, but there are benefits and pitfalls with
   using the internet to aid in home shopping.  The benefits of this is that you’re not spending days and weeks driving around from place to place when you can easily rule out 75% of active listings with a virtual tour.  A major pitfall is that anxious and eager buyers often depend on Zillow, Redfin, or Trulia type apps more then they depend on their Realtor.  Simply put, too much of the information on these apps is either inaccurate or outright wrong.  
5. Submit the smartest and best offer you can. Notice I did not say the highest offer.  "Best" and "Highest" are not necessarily the same.
6. Negotiate all of the terms of your contact.  Price, Time-frames, Contingencies, etc. if your real estate agent is a true pro, he or she may be able to learn the seller's motivating factors.  This is like know your opponents' cards in a game of poker.  

   

   Make sure that your wants don't come before your needs. Is your life glamorous, or is it practical? Can you afford both?
7. Congratulations, our offer was accepted! Now, your contingency time-frames begin. Typically these would be inspections, appraisal, and loan contingencies.
8. Tell your lender that you’re in contract so that he or she can start the necessary lending tasks. Appraisal is ordered by your lender.
9. Investigate and inspect the property.  Unless you’re buying a brand new home, I always recommend having your home inspected by a professional home inspector and pest inspector.  Those professionals may suggest that you have additional inspections done as well: roof, foundation, pool, etc. These are not a condition of the agreement, but more of a security strategy.  You want to know what you're buying...not what they're selling!
10. Discuss, draft, and submit a Request for Repairs, Addendum, or a Modification of Terms.
11. Closing and Title activities are initiated.
12. Order homeowners insurance.
13. Verify that all agreed upon repairs are completed properly.
14. Once you’re certain that repairs were completed properly, the appraisal came in at or above your purchase price, and your lender advises you to do so...it's time to remove all contingencies.  At this point you're all in, and going forward. Your earnest money deposit may be at risk if you back out.
15. Sign loan and closing documents.
16. Documents are reviewed for final loan approval.
17. Your loan funds.
18. Title of your home records with the county.
19. You receive possession of (and keys to) your new home.
20. Maintain access to the property you’re living in for at least a week after your proposed close date in case there are closing delays.

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

Real Estate in Yucaipa; The Data Doesn't Lie!

"Oh...you're in Real Estate?  So how's the market?  It's good. Right?"   

 

If I had a nickle for every time I heard that remark...I'd be a rich man.  But, what is "Good"?  If you're an investor looking to snap up distressed properties for pennies on the dollar, you might think a down market is "Good". If you own a home and hope that the equity you're building becomes your retirement, an increase in home values is "Good".  Data, on it's own, isn't inherently good or bad.  It's just the truth.  So here's the simple truth. 

We're often inundated with News, but more often than not this news has nothing to do with us or where we live. For this post, I personally pulled this local, Yucaipa specific market data in an effort to give homeowners in Yucaipa accurate, concrete market information.  This is not my opinion.  It's not some random journalist out of Washington regurgitating someone else's ideas.  It's not good or bad.  It's just the truth.  

First, let's take a look at the general trends, then I'll point out a few items that I see as important with regard to home values in Yucaipa...and where things are headed in the near term.  

The above listed data is for Detached, Single Family Residences in Yucaipa, California only. 

There are several things I'd like to point out about the graph above.

1. Red is (median) what people ASKED for their homes.  Blue is (median) what they actually received.
2. The beginning of the graph illustrates a decrease in home values; the 'end' of the housing bust.
3. In 2011 and beyond we see aggressive recovery of the local real estate market.
4. When the market was "bad" people listed their homes more realistically.  The gap between Asking and Sold was closer. As the market increased...so did home sellers' optimism and aspirations.  Note the increase in the gap between the blue and the red as median home values increased.
5. At NO point was the median asking price at or below the median sold price.  (sellers virtually always think their homes are worth more than they are.)
6. If you had to forecast the where the blue curve was heading over the next 1 to 5 years where do you see it going?

Finally, below is the proof.  If you want to geek-out on data, the screenshots below show the criteria used to secure the data needed for the simple line graph above. 

I say and write this often, "Don't wonder! ASK!"  

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

Honey!!! Stop the car!

Isn't home shopping fun?  Heck, my wife and I still love looking at open houses even though we're not in the market to buy right now. "Just browsing" is an exciting thing to do!  

We love seeing the upgrades, stealing new decorating ideas, and just being inspired to keep our home looking its best.  

"Honey!  Stop the car!  I LOVE this neighborhood!  I'd love to live here!"

However, if you are actually in the market to buy a home, please take a moment to pause and think about this: Before you walk into that Open House, fall in love, then write your very best offer...stop. Stop for just 30 seconds and think.  Who does the agent holding the home open work for?  Does he or she work for you, or does he or she actually have a fiduciary responsibility to the sellers? Below is a statement taken directly from the National Association of Realtor's website, briefly touching on the fiduciary duties of Realtors.

The image above is taken directly from the National Association of Realtor's website.

Now that you've paused and put a little distance between the emotion of the moment and making intelligent decisions for your future, simply ask the agent this question.  "So...is this your listing?"  If the agent says, "No!" then there's no reason (taking for granted that they're experienced and effective) not to use that agent.  If the agent holding the Open House says "Yes.", then his or her loyalty goes first to the home sellers.  The agent is representing, protecting, and negotiating on behalf of the home sellers.  How can he or she give you that same level of service?

Look at it this way for a minute.  When you walk into the Ford dealership and you're going to spend $40,000 on a new SUV, you know that the salespeople works for Ford.  They represent Ford and Ford's interest.  The same holds true for a listing agents.  He or she represent the sellers and the sellers' interests.  If that agent tells you that they can advocate and negotiate for each of you equally...is that agent actually, ethically representing the sellers?  Meeting in the middle is NOT negotiating.

So what should you do?  Simply walk away and call another Realtor; a local area expert who does NOT have an ethical and professional loyalty to another party.  Go ahead.  Look at the property. Grab a flier. Fall in love with the place.  Even decide you want to buy it.  But don't move forward until you have someone in your corner, representing you, exclusively.

Click here to read the Realtor's fiduciary duties directly from the National Association of Realtors website.

Yes.  I too hold Open Houses.  In fact, its one of my favorite parts of my job.  That said, whenever possible, I hold a colleague's listing open, and I make that known as soon as folks walk through the door.  "Hi!  I'm Andy.  This is not my listing.  It's in the capable hands of one of my colleagues.  I, however, would love to exclusively represent YOU in the event that you like what you see."

I believe that the home buying process will be safer, more effective, and more efficient with your own Realtor on your team!

I say and write this often, "Don't wonder! ASK!"  

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

Happy Home Shopping in Yucaipa, Calimesa, Cherry Valley, Beaumont, & Redlands, CA as of 02.06.2015

 Homes For Sale in Yucaipa, Calimesa, Cherry Valley, Beaumont, & Redlands, CA + Tends over the prior weeks numbers.

Update for Friday, February 6th, 2015

We never tire of the views from Chapman Heights 

• Click here to see Homes for Sale in Yucaipa, CA:
• 152 Active Homes in Yucaipa compared to 142 Last Week
• 18 New Listings in Yucaipa this week compared to 11 Last Week
• Home Prices in Yucaipa range from $119,000 to $1,900,000
• Median Home Prices in Yucaipa: $339,000
• There are only 5 Homes For Sale in Chapman Heights

• Click here to see Homes for Sale in Calimesa, CA:
• 18 Active Homes in Calimesa compared to 16 Last Week
• 0 New Listings in Calimesa this week compared to 1 Last Week
• Home Prices in Calimesa range from $136,000 to $789,000
• Median Home Prices in Calimesa: $329,900

• Click here to see Homes for Sale in Cherry Valley, CA:
• 24 Active Homes in Cherry Valley compared to 21 Last Week
• 0 New Listings in Cherry Valley compared to 1 Last Week
• Home Prices in Cherry Valley range from $120,000 to $2,400,000
• Median Home Price in Cherry Valley: $518,900

• Click here to see Homes for Sale in Beaumont, CA:
• 174 Active Homes in Beaumont; the same number as Last Week
• 24 New Listings in Beaumont compared to 13 Last Week
• Home Prices in Beaumont range from $75,000 to $1,390,000
• Median Home Price in Beaumont: $279,700

• Click here to see Homes for Sale in Redlands, CA:
• 174 Active Homes in Redlands compared to 166 Last Week
• 27 New Listings in Redlands compared to 21 Last Week
• Home Prices in Redlands range from $80,000 to $3,200,000
• Median Home Price in Redlands, CA: $389,000

Once you click on a link above, you can change the way you view your listings. If you prefer viewing these homes as a "List" or on a map, you can view in various ways simply by click the "Display" button (as shown below). As a list, you can sort by price, year built, days on market, square footage, etc.

Also, don't forget the Map/Search feature (shown below) which gives you real-time access to the ACTUAL MLS, not the dated information that most real estate websites and apps provide.

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez - The Last Realtor You'll Ever Need To Look For

Cell ~ 909.539.3292
BRE#01826135
Please follow and share YucaipaRealEstateTrends on Facebook
AndyBlasquez.Com
Andy.Blasquez@gmail.com

Andy Blasquez - The Last Realtor You'll Ever Need To Look For
Cell ~ 909.539.3292
BRE#01826135
Please follow and share YucaipaRealEstateTrends on Facebook
AndyBlasquez.Com
Andy.Blasquez@gmail.com

Homes For Sale in Yucaipa, Calimesa, Cherry Valley, Beaumont, & Redlands as of 01.29.15

So where are you watching the big game?

A better question might be...Where do you want to watch it next year?

This post provides up to date links to Homes For Sale in Yucaipa, Calimesa, Cherry Valley, Beaumont, and Redlands, CA

• Click here to see Homes for Sale in Yucaipa, CA: 
• 142 Active Homes in Yucaipa
• 11 New Listings this week
• 5 fewer listings than last week
• Ranging from $119,000 to $1,900,000
• Median Home Price in Yucaipa: $285,000
• Homes For Sale in Chapman Heights

• Click here to see Homes for Sale in Calimesa, CA: 
• 16 Active Homes in Calimesa
• 0 New Listings this week
• 6 Fewer listings than last week
• From $199,999 to $789,000
• Median Home Price in Calimesa: $230,000

• Click here to see Homes for Sale in Cherry Valley, CA: 
• 21 Active Homes in Cherry Valley
• 1 New Listing
• 4 More than last week
• From $139,900 to $2,400,000
• Median Home Price in Cherry Valley: $168,500

• Click here to see Homes for Sale in Beaumont, CA: 
• 174 Active Homes in Beaumont
• 13 New Listings this week
• 6 Fewer than last week
• From $85,000 to $1,390,000
• Median Home Price in Beaumont: $260,000

• Click here to see Homes for Sale in Redlands, CA: 
• 166 Active Homes in Redlands
• 21 New Listings this week
• 2 More than last week
• From $92,900 to $3,200,000
• Median Home Price in Redlands, CA: $328,000

Once you click on a link above, you can change the way you view your listings. 
If you prefer viewing these homes as a "List" or on a map, you can view in various ways simply by click the "Display" button (as shown below). 
As a list, you can sort by price, year built, days on market, square footage, etc.  

Also, don't forget the Map/Search feature (shown below) which gives you real-time access to the ACTUAL MLS, not the dated information that most real estate websites and apps provide.

• Are FHA loans a good idea?  Link to a .pdf 7 Reasons to Love FHA Loans via GoogleDocs

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez - The Last Realtor You'll Ever Need To Look For

Cell ~ 909.539.3292
BRE#01826135
Please follow and share YucaipaRealEstateTrends on Facebook
AndyBlasquez.Com
Andy.Blasquez@gmail.com

Homes for Sale in Yucaipa, Calimesa, & Beaumont CA as of Saturday, January 17th, 2015

This post provides up to date links to Homes For Sale in Yucaipa, Calimesa, & Beaumont, CA

• Click here to see Homes for Sale in Yucaipa: 
• 147 homes
• 13 more than last week
• From $115,000 to $2,750,000

• Click here to see Homes for Sale in Calimesa: 
• 22 homes
• 4 ore than last week
• From $119,900 to $789,000

• Click here to see Homes for Sale in Beaumont: 
• 180 homes
• 9 more than last week
• From $85,900 to $1,390,000

Note: If you prefer viewing these listings as a "List" that you can sort in various ways, simply click the "Display" button (as shown below) then select "Public 1 Line"  Then you can sort by prices, age of home, how long it's been on the market, etc.  

Next, after you've clicked on the links above, you'll notice a button in the top left corner of the page (as noted in the picture below).  This button allows you to expand your search criteria to better suit your unique needs, wants, and budget. This is a portal to the ACTUAL MLS. It is "Real Time".  When a listing agent changes the status of a property, from "Active" to "Price Change", or from "Pending" to "Sold"...the results you see through this search tool will change simultaneously.   

I'm not going to tell you to dump your RedFin app, or your Realtor.Com settings, but before you get your heart set on a listing that popped up in a notification on your iPhone...please take a minute to access the ACTUAL MLS data in real time through the search button as described above.  Or...better than that, give me a call and I'll send you a personalized list, catering to your needs, wants, and budget.

Below are links to my dropbox account.  Each link will simple open a .pdf file that my clients find helpful.  If you have any trouble viewing any of these files, please comment or contact me through my contact information below:

• Are FHA loans a good idea?  7 Reasons to Love FHA Loans via DropBox.
• Are FHA loans a good idea?  7 Reasons to Love FHA Loans via GoogleDocs

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites.

Until next time.

Andy Blasquez - The Last Realtor You'll Ever Need To Look For

Cell ~ 909.539.3292
BRE#01826135
Please follow and share YucaipaRealEstateTrends on Facebook
AndyBlasquez.Com
Andy.Blasquez@gmail.com

Did My Home's Value Go Up or Down in 2014?

One of the most common questions I'm asked when folks learn that I'm in the Real Estate industry is "So...how's the market?  Is it doin' well?"  In a nutshell...yeah!  It's doin' just fine!

If you're a homeowner in Yucaipa, odds are that your investment is really paying off.  The Real Estate market treated you well in 2014!

There are countless factors that influence a home's value, but if we really simplify things, the average price of a Single Family Residence in Yucaipa, CA increased by over 12% in 2014.

Median Home Prices in Yucaipa, by month, over the past 5 years.

I'm not one to take other's market data as the gospel truth so I pulled the above market data myself directly from CRMLS; California Regional Multiple Listing Service.  MLS records the actual, real-time data that Zillow, RedFin, Realtor.com, and the others can only hope to accurately pull from.  

This process is a bit time consuming, but it's accurate.  There's no guess work. The results for the past 5 years are shown in the table above. Note that 2010-2012 were pretty flat as far as any change in home values.  2013 and 2014, however, showed pretty substantial increases as compared to previous years. 

What about the bigger picture?  The table above illustrates an average of  an 8% annual increase in the sale price of single family homes over the past 5. "But what's the typical growth rate throughout history?"  Or perhaps a better question is "What's an ideal growth rate?  Well the average annual increase in the sale price of single family homes in California over the past 30 years is just under 7%. We're at just over 8%.  In short...well done Yucaipa!  You're doin' what the rest of the country needs to be doin'!  Growing...but growing responsibly and sustainably.

Congrats Yucaipa!  Now let's do it again!

If you'd like a more comprehensive understanding of what you're unique home's value might be, drop me a quick e-mail or PM me on Facebook. I'll create and send over a personalized comprehensive market analysis on your property. My contact information is at the bottom of this post, and your contact information will never ever be used, but by me personally and directly. 

Until next time,

Andy Blasquez ~ The last Realtor you'll ever need to look for.

Cell ~ 909.539.3292

Andy.Blasquez@gmail.com

Yucaipa Real Estate Trends on Facebook

How To Find The Best Realtor: Questions to ask when interviewing Realtors!

Wait, you mean I'm supposed to interview Realtors?  

Oh trust me, yes you are! Consider it an investment; both in terms of peace of mind, as well as in financial terms. Fringe benefit? It's often an eye-opening and entertaining process!

Keep this Miles Kington quote in the back of your mind as you read on. I'll bring it back up at the end of the post.  "Knowledge is knowing that a tomato is a fruit. Wisdom is knowing that a tomato doesn't belong in a fruit salad."  Knowledge, without the wisdom to apply it...is useless. 

When interviewing a Realtor, it's wise to have a list of questions to help you make your decision.  Don't be shy.  Write 'em down and keep 'em by your side.  The fact that you are prepared will make some agents shake in their boots.  Knowing that you're prepared makes this agent (me) confident that we're ready to proceed to the next step in the listing or buying process!

I was recently interviewed by a prospective client who, with the greatest of intentions, decided to grill me with a canned set of questions that he had pulled from About.com.  There are dozens of sites that list questions that your often unsuspecting Realtor ought to be able to address, swiftly and comprehensively.  I'll list several for you to look through at the bottom of this page. 

As you read, keep these points in mind: 

1. The quality an interview is based on the quality of questions asked. Answers, and the questions that prompt them, need to be important, relevant, and easy to understand.  Simply put...they need to matter. Without clear communication and understanding, the interview process is a complete waste of everyones' time, so know what you want to know...and don't end the interview until you've got your answers.
2. The answers you receive from various agents are circumstantial and are based on his or her unique strengths, weaknesses, and professional experiences.  Different responses don't mean that they're wrong.  Sometimes the odd answer is the right one! 
3. Always ask "Why?"  I call that part "the juicy part."  I'm less concerned about what occurred, and more concerned with why. That's the answer we really need to know.
4. Don't get freaked out by all of the 'jargon.' If you don't understand a term, phrase or idea...STOP!  Interrupt and ask for clarification!  Remember, you are the boss!

Q1: What is Your Average List-Price-to-Sales-Price Ratio?

A1: Huh? 

Yep!  That's a good one!  Wait! What does it even mean?  If an agent lists a property for sale at $500,000 and sells it for $510,000, the List-Price to Sales-Price Ratio is 102%. That's awesome...isn't it?  Maybe!  This might sound ridiculous, but one could effectively argue that a property's list price might as well be completely erroneous. A home will sell for what the market will bear.  I can say that if you're asking a true Real Estate professional, your property will sell for exactly what the market will support... under those market conditions...and that seller’s unique circumstance.  They always do, and they always will.   

Example: I recently saw a really desirable property listed for $228,000.  It closed almost instantly at nearly $100,000 over the asking price!!!  Obviously $228,000 was not the market value! So why would a listing agent do that?  I can only speculate that the sellers needed an immediate offer to keep their property from foreclosing. They immediately received several offers, took the best offer, then closed.  OR...I could completely be wrong.
*Notice that I remarked that the seller "took the best offer."  "Best" might have been the one which could close the fastest.  Perhaps this property could have sold for even higher if the seller's circumstances were different.  

NEXT..., and does this actually matter? 

Q2. What is the average number of days that your listings remain active?
A2. 19 days! 46! 107!

What's best?  What's ideal? What should I expect?  If we don't know what the data means, we can't know what the best answer is.  Historically, the actual median Days on Market is around 45 days.  If you sell on the first day, you might have been under priced.  If you're sitting on the market 4 months after your listing date...you may be over-priced.  "All else aside, shouldn't my Realtor sell my home as quickly as he or she can?" We'll never know the answer to that question until we know the factors that are motivating the seller.  

Example: A young family decides that Dad is going to take the promotion and move to a new city while Mom keeps the home fires burning and gets the home sold for the highest possible price.  Dad leaves. Mom lists the property at the top of the market and they wait for the right offer to come.  After a few weeks the family decides that being apart isn't as easy as they thought and they decide to sell the house as quickly as possible so they can be together again.  How long a house stays on the market is, for all intents and purposes, is up to the home sellers.  How motivated are they to sell?  Are they waiting for the perfect buyer? Are they trying to avoid foreclosure?  Are they trying to get moved into their new place before the baby gets here? Days on Market is not an indicator as to how effective an agent is, but an indication of how long it took the seller and the open market to meet.

Q3. How Long Have You Been in the Business?
A3. 4 Weeks, 4 Years, 40 Years. What's the right answer?

I wish it was that easy.  In a market like today's, a new agent might not yet be equipped to handle on the spot negotiation, nor will he or she have the strong reputation that gives listing agents and their sellers the security they are looking for to go into contract.  That said, I have met many, many brokers and agents that have been in Real Estate for decades, yet they can't find their respective backsides with both hands!  The question "How long have you been in the business?”   ought to be changed to “Could you please explain what makes you an effective buyer’s agent or listing agent?”  It's not one's ability to close a deal, or to sell quickly that matters. It's your agent's ability to work, effectively and efficiently, representing his or her clients' unique needs, wants, budgets, and timelines. 

Q4: If I wasn't going to use you...who should I use?

A4:__________________(crickets) 

If this questions doesn't elicit an intelligent and sincere response, you've got room for doubt.  If it elicits some canned, smarmy, 'used-car-salesman' response...

...RUN!!!!!!

Looking back at the quote at the top of the post: "Knowledge is knowing that a tomato is a fruit. Wisdom is knowing that a tomato doesn't belong in a fruit salad." is really a perspective I want you to hold onto when you're looking for your next Realtor.  Market knowledge isn't what's important.  What you do with it is!  

Below are a few links to sample questions you might choose before you interview at least 3 agents.  It's important to note that each site you find with similar questions will have a self-serving agenda.  Remember to use these questions to suit YOUR agenda...not theirs.  

Interview Questions from Realtor.Com
Interview Questions from the National Association of Realtors

Realtor Interview Questions from About.Com

As always, please feel free to e-mail, call, or text your questions to my contact information below.  I hope this post leaves you with the understanding that real estate isn't a mystery. You don't need a crystal ball.  You only need the truth. You need the facts, strategies, and discipline to follow through. I'll sit with you, side by side, while we discover the facts that pertain to a property you're thinking of selling or are interested in buying.  No gimmicks. No games. Just insight, foresight, experience, strategies...and the truth.

Thank you in advance for remembering my name and this site, when the topic of Real Estate comes up.  I'm happy to help in any way I can.  Also, if you enjoy what you find on my blog, please share this post and "like" and comment on my Yucaipa Real Estate Trends Facebook page.

Until next time,

Andy Blasquez ~ The last Realtor you'll ever need to look for.

Cell ~ 909.539.3292

Andy.Blasquez@gmail.com