Archive for October, 2006

Listings With No Pictures?

Posted by Doug Quance on October 31st, 2006

broker_provided.jpgA client of mine asked me yesterday, “Why do so many agents fail to include interior pictures of their listings… or any pictures, for that matter?”

Good question.

Years ago, when digital cameras were fairly expensive, it was somewhat understandable why you didn’t see many interior pictures of the various homes for sale. It was the cost. Most agents, contrary to popular belief, are not making the big bucks. With all the other expenses involved in this business, sometimes it’s hard to find the money for everything to keep up.

My first digital camera cost me $900, and a camera of its capabilities would probably cost around $100 today.. if not less. It recorded images in some proprietary format instead of jpeg. As a result, I have some wonderful pictures of the Mayan pyramids in Belize that I’ll never see again (as the Windows 95 program that decoded them is now obsolete).

But I digress.

Nowadays, anyone can buy a decent digital camera for a few hundred dollars… and the listing services make it fairly easy to upload the images to their respective servers.

So why don’t all agents do this?

no_pho_desired.jpgSome agents believe that pictures might drive away potential buyers, rather than attract them, to certain properties.

Personally, I believe a property “is what it is”, and should be shown as such, so that’s not much of a reason, if you ask me.

Some pictures, however, speak volumes. I remember taking a bunch of pictures of a totally trashed house that was boarded up. Boarded-up houses are dark inside and having a good set of pictures can help a buyer understand the condition of the property. And yes, it did sell.

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Blog Buzz | 2 Comments »

Guaranteed Home Sale Programs - Truth or Myth?

Posted by Doug Quance on October 28th, 2006

I was asked recently about my thoughts regarding these guaranteed sale programs offered by many Realtors. In the spirit of “shining some light”, allow me to share these thoughts with you.

The program, if not originally conceived by, is a key ingredient promoted by noted real estate coach Craig Proctor. Craig is a top RE/MAX agent in Canada, and is consistently ranked near the top in sales in the world-wide RE/MAX network. His home selling system is used by thousands of agents nationwide.

In a nutshell, the agent promotes that he/she will step in and buy the client’s home in the event it doesn’t sell within a specified period of time… usually 90 or 120 days. Some are so bold as to claim that they’ll do it in 30 or 60 days.

Since I worked for such an agent in the late 1990’s, I have a pretty good idea how the program works… but each agent that uses such a program will tailor the terms to their liking, so my comments regarding the terms will remain of a general nature.

A quick search, however, revealed another local agent who doesn’t mind being more specific about the terms.

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Blog Buzz, Mythbusters | 1 Comment »

How Many Agents Is Too Many?

Posted by Doug Quance on October 27th, 2006

realestateagent.gifAs the local Atlanta real estate market continues to cool down, a frequent topic amongst agents is “When are they going to make it harder to get a real estate license in this state?”

It stands to reason. The real estate schools are churning out new licensees as fast as McDonald’s serves burgers.

When I was first licensed, there were only a few testing centers, and the tests were only given once every two weeks… and only in the morning. If you passed, you could come back in the afternoon to get your license. By the time I sat for my Broker’s exam, there were several testing centers, and the tests are now given everyday - twice a day.

Back then, when you did get licensed, you either placed your license with a traditional broker (who would take half of your commissions) or you went to RE/MAX (where you paid a monthly desk fee, but you got to keep all your commissions).

If you went with a traditional broker, that broker had a vested interest in your success - and production was expected. If you didn’t perform, you were costing the broker money (as opposed to earning the broker money) and therefore the broker could decide to train you further; assign you to work with a more experienced and successful agent; or release your license.

If you went with RE/MAX, the broker no longer had the vested interest in you (other than for the monthly desk fees you would be paying) and as long as you could afford those desk fees - you were OK in the broker’s book. (For the record - I went with RE/MAX when I was first licensed.)

So back then, it was survival of the fittest. But that’s not the way it is today.

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Atlanta Area News, Blog Buzz | No Comments »

Is the Atlanta Real Estate Market Going to Crash?

Posted by Doug Quance on October 27th, 2006

A previous client of mine called me today, thinking of selling his home that he purchased just two years ago. When asked why he wanted to sell, he said, “I’m worried that the market will fall to pieces… and I don’t want to get caught up in it.”

Fair enough. But since he purchased with no money down, it is likely that he would have to bring money to closing, as his home has not appreciated that much since then. When asked if he wanted to sell badly enough to write a check - he froze.

“How big of a check are we talking about?” he asked.

“Well, your home looks like it has only appreciated three percent in the last two years. Between the brokerage fees and the seller concessions to closing that you will undoubtedly be required to pay, we’re probably talking about you bringing five percent to the closing table.”

There was a deafening silence.

“You there?” I asked.

“Yeah, I’m here.” he replied. “I was hoping I could pocket a few grand from selling.”

“You can,” I said. “Just not now.”

After that call, I ran some reports and looked at our MLS figures from September 2005 versus September 2006.

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Atlanta Area News, Blog Buzz, Real Estate News | No Comments »

So You Want To Flip Some Houses?

Posted by Doug Quance on October 25th, 2006

It’s been quite a trend for the last few years… thanks in part to all the real estate gurus out there hawking all their books, seminars, and real estate courses.

Is it still possible to flip houses profitably in today’s market?

Some claim it is. Have you ever watched the tv show “Flip This House”? I have seen a few episodes, and one in particular comes to mind, as it takes place here in Atlanta. The home was supposedly bought, rehabbed, and sold in no time at all - at a nice tidy profit.

But did it really sell? Apparently not. Here is the listing pulled today: 2699ellenway.pdf

Oddly enough, the agent that was on the show is NOT the agent that listed the property… and the tax records and MLS records do not show any change of ownership.

Perhaps the public is being duped. So… with the click of the mouse, I come up with this. Hmm… one of the comments from August claims that another house that was supposedly sold was still on the market.

But did it really sell? Apparently not. Here is the listing pulled today: 1119lawtonplace.pdf

I feel like I’m starting to see a trend here.

Some people take this flipping business to an extreme. Case in point is Casey Serin. To say he got in over his head would be like saying Lake Michigan is a decent fishing hole.

So… do you still want to flip some houses?

Atlanta Area News, Blog Buzz, Real Estate News | 4 Comments »

Existing US Home Sales Dropped Again in September

Posted by Doug Quance on October 25th, 2006

This is not good news for Sellers… but in a market viewed as being overpriced, it is good news for Buyers. From Bloomberg:

U.S. home resales fell 1.9 percent in September and prices dropped from year-ago levels for a second month, the first back-to-back monthly declines since 1990.

Existing home sales fell to an annual rate of 6.18 million rate, the lowest since January 2004, from 6.3 million in August, the National Association of Realtors said today in Washington.

Homeowners have started to cut prices while buyers keep holding out for better deals, a sign the slide in housing may soon level off, economists said. Federal Reserve policy makers, who will vote today on interest rates, have said the housing market is “correcting,” helping to slow the economy and gradually cool inflation.

While the Atlanta metro area has not had the wildly overheated market that some parts of the nation have experienced, it has had its share of sluggish resales. Most experienced agents will tell you that unless a home is priced properly for this market - don’t expect a quick sale.

Even some developers I have spoken with have changed their plans and are waiting for the market conditions to stabilize. Many of them say that land prices have escalated to the point where the risk is not worth the reward.

Atlanta Area News, Real Estate News | No Comments »

Will Realtor.com Become Irrelevant?

Posted by Doug Quance on October 24th, 2006

Perhaps it should.

Many Realtors have a grudge against Realtor.com… and many of them seem justified in their positions. On paper, it sounded like a good thing for everyone - buyers get access to all the MLS listings in the country, the agents get a portal to present their offerings to the public, and sellers get national exposure.

But like many ideas - the devil is in the details.

Many brokers did not like the financial arrangements… and neither did many Realtors. Ask a typical agent about Realtor.com, and they’ll give you an earful. I know. I am one of them. Many of us view Realtor.com as a place where our money and our leads are sucked into cyberspace to be sold back to us later.

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Atlanta Area News, Blog Buzz | No Comments »

Is Mortgage Fraud on the Decline?

Posted by Doug Quance on October 20th, 2006

In Atlanta, it appears to be.

Two Assistant U.S. Attorneys from Atlanta have won awards from the Department of Justice in Washington D.C.

Assistant U.S. Attorneys Barbara Nelan and Gale McKenzie received awards Oct. 20 for their outstanding dedication in the prosecution of mortgage fraud in metro Atlanta. Specifically named was the case of defendant Chalandra McFarland, which led to the convictions and jail sentences of 20 defendants, many of whom were professionals in the legal community and real estate and mortgage businesses, including a 30-year sentence for the closing attorney. FULL STORY

I can’t begin to tell you how many times that I, as well as others, have witnessed suspicious behavior in the real estate business. Sometimes we have enough information to “drop a dime”… but most of the time, we only have our suspicions.

Let’s hope that this is a beginning of a trend. Mortgage fraud hurts all of us.

Atlanta Area News, Real Estate News | No Comments »