Helen Rivard- Realtor Selling Homes in Placerville | El Dorado Hills | Pollock Pines | Call me (530) 409-2687

The home buying or selling process can be a daunting one – unless you’re working with a California REALTOR®, who can guide you through the process with knowledge and ease. The CALIFORNIA ASSOCIATION OF REALTORS® wants to hear about why you love your REALTOR®, your new home, or anything about the home buying or selling experience. Now you can record a short video sharing your thoughts in the new “Stories of Home” Facebook contest. Participate by Nov. 30, and you’ll automatically be entered to win one of four $500 Lowe’s Home Improvement gift cards!

Visit www.facebook.com/carealtors and select the “Stories of Home” tab to get started. Be part of the growing number of Californians who think of their REALTOR® as a Champion of Home. For more information about the 2011 C.A.R. consumer advertising campaign, “California REALTORS®. Champions of Home,” visit http://www.car.org/aboutus/adcampaign/.

A number of REALTORS® in various states have reported receiving e-mails from a buyer claiming to be in Canada and wishing to purchase a property listed on the MLS sight unseen.  The buyer claims the transaction will be all cash and that he will wire the money directly to the agent’s attorney, as he claims to have had negative experiences with title companies.  In every instance, the buyer cancels the transaction and requests a refund before the initial money has cleared.  By the time the REALTOR® is notified that the funds haven’t cleared, it’s too late and the supposed buyer has the “refund.”

Frauds such as the one listed above can be brought to the attention of the C.A.R.  Legal Team by calling the C.A.R. Legal Hotline at (213) 739-8282.

 Meeting new clients, showing properties, holding open houses, letting strangers get into your car, and even your marketing may be jeopardizing your personal safety.

 Such everyday tasks seem harmless, but as some real estate professionals have learned the hard way, these situations can expose you to danger. (Read: Real Estate Safety Stories: ‘How I Stay Safe’).

 Real estate is considered by security experts as a high-risk profession, says Robert Siciliano, CEO of RealtySecurity.com in Boston, and author of The Safety Minute: Living on High Alert (Safety Zone Press, 2003).

 “The root of the issue is that you have real estate agents with no formal security training who are then meeting with complete strangers at odd times of the day and in vacant homes,” Siciliano says. “Real estate professionals put themselves at risk at so many points. The industry opens itself up to predators.”

Below are tasks common to practically every real estate professional. Learn the risks associated with each and what precautions you can take to stay safe.

1. Entering foreclosed or vacant homes

 THE RISK: Foreclosures may attract unexpected house guests — such as squatters — or former home owners refusing to leave. The homes also may be damaged and poorly lit or attract wildlife since it’s abandoned, leading to more potential safety hazards.

 SAFETY TIPS

• Inspect the exterior. Walk around the perimeter before you enter the house and make sure the door hasn’t been kicked in and no windows are shattered, suggests Tracey Hawkins, owner of Safety and Security Source in Kansas City, Mo. Call police if you suspect someone is in the property. (Read: Be on the Lookout for Clues)
• Don’t confront a squatter. If a squatter is in the home, leave immediately, Siciliano says. Call law enforcement once you’ve left and allow police to deal with any trespassers.
• Use the buddy system. Ask a coworker, spouse, friend, or family member to come with you when you show the home.
• Let others know where you are. Before you leave, tell your coworkers, family, or friends where you are, whom you are with, and when you expect to return.
• Visit during the day. Visiting homes at night makes it more dangerous, Siciliano says. Try to make appointments during daylight hours only.

2. Meeting with a new client for the first time

 THE RISK: Meeting with people you don’t know can put your safety at risk. You don’t know whether this person could potentially be a criminal, stalker, thief, or worse.

 SAFETY TIPS

• Meet at the office first. Get them on your territory before you visit any property with them so you can learn more about them and collect personal information about them for your files.
• Ask for identification. The public is used to having their identification checked, so don’t be reluctant to ask because you’re scared you’ll offend someone, Siciliano says. Tell clients it’s company policy that all clients’ driver’s licenses are photocopied. “This will significantly reduce your risk because the bad guys don’t want to give you their I.D. or get their picture taken,” Siciliano says.
• Have all clients fill out a customer identification form. You can find an example of this at REALTOR.org. Click on “Prospect Identification Form” under the Office Safety Forms heading. The form asks for car make and license number, contact information, and employer information, and also requests a photocopy of the driver’s license.
• Introduce them to a coworker. When you meet them at the office, introduce them to at least one other person in your office. Criminals won’t like that others have seen them for identification purposes, according to tip sheets provided by the Washington Real Estate Safety Council.

 3. Showing a property alone

THE RISK: You’re touring vacant properties with strangers.

 SAFETY TIPS

• Use the buddy system. “There’s always strength in numbers,” Siciliano says. Whether you bring a coworker, spouse, or even your German shepherd, avoid going alone.
• Don’t go into confined places. Avoid basements and attics — it’s too easy to become trapped. Instead, know the selling points of these rooms and remain in the foyer on the first floor with the front door open as the buyer tours these areas, Siciliano suggests. If you must join them in each room, always stay by the door, leaving doors open so you can flee more easily if necessary, the Washington Real Estate Safety Council suggests.
• Walk behind. Let potential buyers take the lead when exploring a home, with you always following behind.
• Let others know where you are. Tell them where you are going, when you will be back, and who you’re with. Better yet: Share this information while the client is with you so they know someone else knows where you are.
• Have an excuse. If you feel uncomfortable, tell the person your “cell phone or beeper went off and I have to call the office” or “another agent with buyers is on his way,” suggests the Washington Real Estate Safety Council in their tip sheets. (Read what one real estate professional said to get out of an uncomfortable situation she experienced at a client’s home.)

4. Open houses

 THE RISK: You’re inviting the public to a property, which is an invitation to anyone, from thieves to those who might want to harm you.

 SAFETY TIPS

• Promote security in your advertisements. When you advertise the open house, note that identification will be required at the front door and video surveillance will be in use. “The bad guys will be less likely to show up,” Siciliano says.
• Partner up. When would-be assailants see two people at the front door, they’ll be less likely to go in. (Read one agent’s story how the buddy system protected her).
• Introduce yourself to neighbors. Let them know you’ll be showing the house so others know that you are there.
• Watch for patterns. At an open house, note any patterns in arrivals, particularly near the end of the open house. One common scam: Thieves come near the end of the open house, working as a team. They have “buyers” distract the agent as others steal valuables in the home. (Read what happened to one sales associate.)
• Stow away your valuables. Never leave your purse, laptop, or wallet unattended on the counter in plain view. Keep them in the trunk of your car. However, always keep your cell phone on you so you can call for help if you need to. Also, before the open house, tell your clients to put away all of their valuables, prescription drugs, and mail.

 5. Flashy personal marketing

 THE RISK: Marketing materials that contain photos of yourself may attract the attention of criminals. Police have found criminals circling real estate professionals’ photos in newspapers and marketing materials (Read one agent’s account of this.)

 SAFETY TIPS

• Avoid provocative photos in your marketing. Low-cut blouses, full-body photos, and looking over your shoulder in a sexy pose can send the wrong message to criminals. “Why do you have to have photos anyway? What are you selling?” asks Hawkins, who advises against ever using a photo for business reasons; she uses a caricature. “You make a living meeting complete strangers in empty houses. They see your photo and if you’re exactly what they’re looking for — whether that be an older or younger agent, blonde hair, blue eyes, whatever — they know all it takes is one phone call to meet you in a house. A picture can be dangerous.”
• Watch what you wear. Only wear shoes that you can run in. Avoid short skirts, low-cut tops, and expensive jewelry. “Predators don’t have the same boundaries as you do. They look at you like that and say ‘She’s asking for it,’” Siciliano says.
• Protect your personal information. Use your cell phone number and office address in your marketing so it can’t be tracked back to your home address. Never use your home address or home phone number. Also, don’t reveal to your client personal information about your children, where you live, and who you live with — you can still build a relationship with clients without revealing all of your personal information, recommends the Washington Real Estate Safety Council.

 6. Transporting strangers in your car

 THE RISK: You’re showing houses to potential buyers and chauffeuring them in your car from house to house. Most people don’t pick up hitchhikers, yet real estate professionals put strangers in their car all of the time and don’t think anything of it, Siciliano says. There’s a risk of being robbed, your car being stolen, and you victimized and thrown to the side of the road.

SAFETY TIPS

• Drive separately. Have the client follow you from listing to listing. If you absolutely have to take one car, then you should drive.
• Watch where you park. Make sure your car won’t be blocked in and that you park in a place where you’ll be able to get out quickly. Park on the street or the curb, if possible, suggests the Washington Real Estate Safety Council. You’ll attract more attention if you run and scream when fleeing, and it’ll be easier to escape than having to back out of a driveway, experts say.

“Security is all about layers of protection. Open house signage, notation in ads, using the buddy system — everything that you do is an extra layer of security,” Siciliano says. “The more you do, the more secure you’ll be. Do nothing and the more vulnerable you’ll be.”

There are inappropriate steps sellers can take when it comes time to put their house on the market.

For instance, the seller in Virginia, who thought the half bath the builder had located at the front of the house would really be better situated toward the back of the main level (though all the other similar models had the powder room in the same place for the previous 20 years). He got hung up on this detail so much, that he just had to move it — and did — for thousands of dollars, just so he could get it on the market the “right way.” His hang-up may have settled some deep-seated emotional need for him, but it didn’t draw any more buyers, and it drained his bottom line. You might say, that was a costly mistake.

Real estate broker and author Sid Davis has identified in his book, “A Survival Guide to Selling a Home,” seven costly mistakes that many sellers make when it comes time to put their home on the market. In my business, I’ve seen each one of these mistakes played out and it just makes me shake my head as to why sellers forge ahead with unwise strategies, instead of listening to the voice of an experienced professional.

Mistake 1: Putting the home on the market before it’s ready. Most times this happens because the seller gets impatient or is a procrastinator and has pushed himself up against a moving deadline without getting the pre-sale work done. So it comes on the market with the horrible carpet (that gets replaced during the marketing of the home); or they are painting it while it goes on the market. Presentation is everything — so get the work done before marketing the property.

Mistake 2: Over improving the home for the neighborhood. This happens with additions, bump outs, and upgrades that make the home stick out from among its competitors so much that it’s an anomaly, instead of a nice addition to the community.

Mistake 3: Pricing the home based on what the seller wants to net. This pricing strategy always ends in failure. Sellers can control the “asking” price, but they don’t control the “sales” price. The market does. It doesn’t matter what the seller wants, the price is determined by the black-and-white, matter-of-fact reality of the market.

Mistake 4: Hiring an agent based on non-business factors. It might be nice to hand over your largest asset to your nephew who just got his license — but make sure you understand the consequences if your deal starts going south.

Mistake 5: Getting emotionally involved in the sale of the home. This is one of the biggest challenges home sellers face when putting their house on the market. Once you decide to sell your house, it’s no longer a home, but a commodity. It needs to be prepared as a commodity, marketed as a commodity, and priced as a commodity. It doesn’t matter what you “want,” only what the market can bear on pricing. People are going to come in to kick the tires, so to speak, and you can’t get emotional about how they may or may not appreciate the nuances of your home of seven years.

Mistake 6: Trying to cover up problems, or not disclosing them. Most states have a property disclosure/disclaimer form — use it wisely. Just because you disclaim doesn’t mean you cannot be sued later for the leaky basement, or dilapidated heating/air system that’s discovered 30 days after settlement.

Mistake 7: Not getting your ducks lined up before trying to sell. This would involve financing, reading the fine print on your current mortgage to ensure no pre-payment penalties, not listening to the particulars of your local market, etc. If your local market is dictating lower home prices, then lower it early, not later — it will cost you more. If the local market dictates selling your home first, then buying second, do it in that order, or vice versa.

Avoiding these mistakes is not that difficult. Your REALTOR® is there to help you step over the pitfalls.

Written by M. Anthony Carr

If your house has been on the market for quite a while, you may have already dropped your price and now you’re waiting for the buyers to rush in and make wonderful offers on this now-priced right property. And then it happens.

The lone buyer does appear, like a bandit in the night and offers you even less than what you just agreed to. Quite a bit less — about 10 percent less. So on your $350,000 house, that you just dropped to $324,000, you now have an offer for $299,000. With a seller subsidy request of $5,000. At this point, your net is $294,000.

So how do you handle such a low-ball offer. Well, first of all — don’t panic, get angry or lose sleep. Especially, don’t reject the offer right off the bat and tell them to come back when they’re serious. Remember, it’s now a negotiation game and the buyer IS serious or he or she would not have made an offer.

Several things have happened before this offer came in. The buyer, with his agent, has researched the market, walked through as many as 30 or 50 properties, conducted a study on the value of the property and written an offer for your house. Remember, you just won the lottery. They could have written on any other house, but they selected yours. So let’s get busy.

First of all, do an analysis of your own goals and needs. How much do you really need to come out of this house to meet your goals of moving to your next home? What could you really live with and what amount are you going to counter. Remember this last point — what are you going to counter? This is assuming that you’re not rolling over and that you’re going to stay in the game.

Next, conduct a comparative market analysis of the house once again. What’s happened in the market to get this buyer to offer such an offer (notice I didn’t say ‘low’). It might be that your house is now worth that amount. And if it is — that’s okay, because it probably means the house you wanted to buy up into is also worth less. At the worse, you’re going to take away less money. The best thing to look at, however, is that now you’re going to buy up with a smaller down payment because the buy-up property is also less.

Now, let’s start the negotiation. Keep in mind, this is for the long haul. Keep it alive as long as the buyer will keep it alive. Give up a little bit at a time. If you reduced the house to $324,000, expecting an offer of $319,999 with closing costs of $10,000 — then start there. You’re already willing to accept a net of $309,999, so you’re not really that far off. Understand you’re not going to get top dollar with no seller subsidy. So come down to $320,000 and give them their closing costs. So now, your net has come up to $315,000.

Hey — you’re actually ahead of the game if they accept. Oops — they don’t. Now they’ve countered to $309,000 and still want the $5,000 in closing. (Now our net’s at $304,000). Great. Just think. When you started, you were $324,000 apart (remember, you had NO offer at all). Now, you’re only $5,999 away from the net you were willing to accept in the first place.

We’re almost there. Now, before I go much further, here’s a negotiation tip — keep this civil. Use a lot of complements about the offer, the buyers and the agent. “What a great offer. Thanks so much for writing. We are very excited about selling this house to you.”

You want the buyer agent and his/her clients to know you’re wanting to work with them. You’ve been waiting six months for this day (negotiation day) and you want to keep everyone engaged in the process to get your goals met — sold and on your way to your new home in the country.

Now offer your final counter (or maybe next to final). You definitely want to use the complements at this point: “We are so close.” “I can’t wait till we wrap this up, then we can all celebrate.”

At this point, you know the buyers want to buy and your sellers are ready to start packing, so emphasize that you’re very close. Use a dialogue like this: “We are so close. We have some goals to meet, just like you do. And I hope we can bring this together to get us both where we want to be.”

This is when you make the final offer and stick with it. If you offer $314,000, they definitely get what they need and you get closer to your final net — which at this point would be $309,000 — just $999 off of your initial goal. Then you know if it goes forward or you’re back on the market. However, don’t be so stubborn that you lose the lone buyer because of $2,000 or so.

If the buyer is stretching and this won’t work, this is when the honesty comes out. The agent may tell you, If we can’t do $309,000, it’s just not going to work. It goes too far beyond their qualification.” Then you can decide whether to keep it on the market (hoping you don’t have to drop the price again), or you cut the loss and move forward with settlement.

Be patient with the process. Don’t get upset, remember, they’re trying to meet goals just like you are. By working together, both can get what they want.

Written by M. Anthony Carr