Just because it is Thanksgiving, it doesn't mean it is the only time of the year we need to recognize how fortunate and blessed we are. We are all thankful for something, whether it's your family, your friends, your health, your pets, your community.........
This Thanksgiving Holiday I challenge you not only to recognize what you are thankful for, but to give a little of yourselves in order for others to be thankful for you. When I say "give", it can be by giving money or time to a charitable organization; volunteering at a shelter, nursing home or school - give to others that are less fortunate than you.
Jeff and Rocky Turner are a great example of what giving is all about. Please take a look at the following links and I hope you are inspired by what they do the same way that many others are, including yours truly.
Please remember that it's important to give in order to receive. In the words of Wayne Dyer,
"see the world as an abundant, providing, friendly place.......become as generous to the world with your abundance as it is to you.....develop an attitude of gratitude for all that manifests into your life"
We work with a lot of real estate sellers that are not understanding that they need to be flexible. As Realtors, it is our job to make them understand that the real estate market currently favors buyers and although this doesn’t mean they have to give the property away, it does mean they have to be open to different scenarios that will ultimately sell their property.
We recently prepared a purchase contract for some Miami Shores buyer clients and the deal never materialized because the sellers were being stubborn and wanted things done their way. It was a very strong offer and I personally thought the sellers were making a bad call. Needless to say, those same sellers had 2 other offers which they also turned down and their property is now priced below those original offers. OUCH!!
Sellers must consider all offers; they should study them carefully and make sure they don’t turn anything down without first giving it good consideration. If you get an offer with a contingency based on a buyer selling their own property, make sure you explain to your seller that it may be the perfect scenario. There are many ways of accepting contingencies without harming the sale of a property. It could mean adding a kick-out clause and/or stipulating a closing date. <!--{PS..0}-->
We have been presented with options a great deal lately and thought it would be a good idea to explain the different options out there to better understand them. I had an agent a couple of days ago totally blow me off when I suggested a Lease Purchase. The property was for sale but it also appeared on the MLS for rent. It never occurred to that agent that all it meant was a delayed closing and the seller would be getting rental income in the meantime.
Having an option may mean a sale by the end of the lease term. Elizabeth Weintraub does a great job explaining the basic differences of options.
Basics of an Option
Buyer pays the seller option money for the right to later purchase the property. This option money may be substantial or as little as $1.
Buyer and seller may agree to a purchase price now or the buyer may agree to pay market value at the time the option is exercised. It is negotiable. However, most buyers want to lock in the future purchase price upon inception of the option.
The term of the option agreement is negotiable, but the common length is generally from one year to three years.
Option money is rarely refundable.
Nobody else can buy the property during the option period.
The buyer can sell the option to somebody else.
If the buyer does not exercise the option and purchase the property at the end of the option, the option expires.
The buyer is not obligated to buy the property.
Basics of a Lease Option
Buyer pays the seller option money for the right to later purchase the property. The lease option money may be substantial.
Buyer and seller may agree to a purchase price now or the buyer may agree to pay market value at the time the option is exercised. It is negotiable. However, most buyers want to lock in the future purchase price upon inception of the lease option.
During the term of the lease option, the buyer agrees to lease the property from the seller for a predetermined rental amount.
The term of the lease option agreement is negotiable, but the common length is generally from one year to three years.
The option money generally does not apply toward the down payment.
A portion of the monthly rental payment typically applies toward the purchase price.
Option money is rarely refundable.
Nobody else can buy the property during the lease option period.
The buyer generally cannot assign the lease option without seller approval.
If the buyer does not exercise the lease option and purchase the property at the end of the lease option, the option expires.
The buyer is not obligated to buy the property.
Basics of a Lease Purchase
Buyer pays the seller option money for the right to later purchase the property. This option money may be substantial.
Buyer and seller agree on a purchase price, often at or a bit higher than market value.
During the term of the option, the buyer agrees to lease the property from the seller for a predetermined rental amount.
The term of the lease purchase agreement is negotiable, but the common length is generally from one year to three years, at which time the buyer applies for bank financing and pays the seller in full.
The option money generally does not apply toward the down payment.
A portion of the monthly lease payment typically applies toward the purchase price.
Option money is nonrefundable.
Nobody else can buy the property unless the buyer defaults.
The buyer typically cannot assign the lease purchase agreement without seller approval.
Buyers are often responsible for maintaining the property and paying all expenses associated with its upkeep, including taxes and insurance.
The buyer is obligated to buy the property.
Being “firm seller” in a buyer’s market is not a good strategy, especially considering the seller incentives that are being offered all over the place. In Miami we are seeing everything, from closing costs to money back, to maintenance fees, free pool installations, and even cars!!
We need to show our value as great, creative and knowledgeable Realtors in order to improve the odds of selling our clients' property in a real estate market where competition is fierce.
There are many different real estate models in Miami and as much I would like to say that one is better than the other, the fact is that different people (whether buying or selling Miami Real Estate) will have different preferences.
The idea is that each particular customer should study their options and identify their needs. Telling you that our full-above-and-beyond real estate services are your best choice would not be right since this may not be what you are looking for.
Just recently we were working with a Miami real estate buyer that was pre-approved, very motivated and ready to go. We had an interesting experience with a listing agent that deals with "volume sales" in the area. During the 3 weeks that we dealt with his listing we were not able to talk to him without first leaving a message and waiting a couple of hours and sometimes a day for him to return calls. The property was on lock box, we never saw his face, he did not even go to the inspections, and he was very poorly informed about the property.
Our buyer customer was in shock at the poor service he provided for the seller, especially after the deal fell through because of inspections. This particular agent offers full commission for the cooperating agent on the MLS, does not do much with regards to advertising and discounts his commission because of the fact that he doesn't do much for the seller.
Is this real estate model bad? I really don't think so; it is up to the client to decide how involved they want their Realtor to be.
This past week we were called to list a property in Miami Shores that had been on the market by the same agent. The house had been on the Southeast Florida MLS and there was a sign in front of the house. The MLS instructed people to call the owner directly and the seller showed his own property when available. After months of doing this, the owner realized not only that the property was overpriced, but that he needed a full-service real estate model to work for him, one with an aggressive marketing plan and in which the Realtors would be hands on and very involved.....that's where Rick and I came in.
I do not criticize discount real estate brokers; I do not criticize For Sale By Owners. It is your right to choose what method and model will work for you. Experimenting with different strategies may not be a bad idea either. The market DOES favor buyers and a seller's motivation and flexibility will determine what strategy to embrace.
As far as what value Rick and I bring to the table, take a look at this testimonial written by one of our customers.
"I have been involved in several real estate deals over the past few years and therein have dealt with many real estate agents. Without question my best experience was with Rick & Ines Garcia. They stand out from your typical real estate agent(s). Rick is a mortgage broker and accountant so he understood and explained the financial aspect of our deal. Ines is an architect and she helped visualize possible changes that matched our design taste. Furthermore, they did not view us (my wife and I) as clients - they thought of us as their friends. Rick & Ines went out of their way to get to know us better so they could truly understand what we were looking for within our budgetary constraints ".
Miami Real Estate is changing everyday and those of us blogging are at the forefront and are viewed as “trendy”.
Robert Scoble and Shel Israel shared a breakthrough quote (in their book "Naked Conversations") by The New York Times editorial (August 5, 2005) which really puts blogging into perspective:
“It’s natural enough to think of the growth of the blogosphere as a merely technical phenomenon. But it’s also a profoundly human phenomenon, a way of expanding and, in some sense, reifying the ephemeral daily conversation that humans engage in. Every day the blogosphere captures a little more of the strange immediacy of the life that is passing before us. Think of it as the global thought bubble of a single voluble species”.
Talk about a strong statement!
So here’s my take. Blogging puts our thoughts out there, out there in the open for you to tear apart. A Realtor colleague from Miami Shores told me a couple of days ago that she did not feel comfortable blogging because she felt like she was “stripping in front of everyone”. That was another “breakthrough” comment.
We blog to let people know what’s going on, to explain the inside scoop, to educate and to encourage dialogue.
We want you, the real estate consumer, to know us, to know about the Miami real estate industry inside and out. We also understand that the real estate consumer today is ahead of the game, with tons of tools at their disposure.
Our job is to strip the façade off the real estate industry and let you know what’s going on. We write articles about community events,restaurants, architecture, articles for real estate buyers and sellers, about Miami real estate stories, off the wall and funny things that have nothing to do with real estate, and not to forget miamisms. We understand the need people have to know what's going on, so we will keep on talking.
**NOTE: Although this article was written for our "Miami Real Estate Market" at www.miamism.com, it applies to to all real estate bloggers, no matter the location. Remember that blogging should be local, it should be open and it should peel away all the unnecessary marketing facade to inspire trust**
Just last week, a real estate customer asked me to explain the correct and incorrect use of awnings for Mediterranean Revival architecture. I'm sure this will be an eye-opener for a lot of you, but the reality is that it is not rocket science. There are basic rules and some NO NO's (like anything else), and if I leave any stones unturned, I'm sure some of you will let me know.
First take a look at the previous articles I've written about elements of Mediterranean Revival homes:
Please understand that I am not making up these rules as I go. Restorations should be consistent with The Secretary of Interior's Standards for Rehabilitation, and as I've said before, educating yourself about historic features and their standards should be an important part of owning a historic home. These standards include examples of correct and incorrect repairs and replacement of roofs, windows materials and other elements.
Now to awnings! The primary purpose of an awning is more functional rather than decorative, although I have seen very boring facades brought to life with beautiful awnings. Traditionally, awnings were installed only where necessary for shade and weather protection. Please keep this in mind when considering awnings for your historic home. There is nothing worse than seeing every single fenestration (window and door opening) covered by an awning. This is what I call "overkill".
The basic rule for awnings is shape.
If the door or window opening is square or rectangular, only install rectangular or straight awnings, never ARCHED!
If the door or window opening is arched, only install arched awnings, never STRAIGHT!
Pretty simple, don't you think? Here are some examples of awnings installed in Mediterranean Revival homes around Miami Shores.
These examples show the correct use of straight or rectangular awnings installed on rectangular doors and windows.
Never install an arched awning on a rectangular opening!
This is a beautiful example on an arched awning placed inside an arched opening.
There are 2 types of arched awnings and one of them should NEVER be used in residential applications, and that's the bubble type awning. For those of you that have these, I apologize because you probably did not know any better. Bubble type awnings are more appropriate for commercial applications.
As for the color of awnings, this is definitely subjective. The stripped fabric is usually my preference, but in very busy facades, I have found stripes to be overwhelming. A lot of people think that solid colors are more formal and appropriate, but I really think it depends on the particular architectural elements of the house. One piece of advise is to get a big swatch of fabric when choosing the color (especially if choosing stripes), most swatch books will have tiny samples that will make it very difficult to choose. A good awning company should be happy to supply a big sample of the fabric.
An awning can bring so much life to a facade, and can take the "boring" factor out whether you have a historic home or not. They can also be functional and energy efficient. There are many types and they are easy to maintain, just make sure you don't overdo it and think of the "appropriateness factor" before installing. Also take a look at "The Use of Awnings on Historic Buildings - Repair, Replacement & New Design", for great detailed information.
If you are in the market to sell your Miami home, how do you interview Realtors? What questions do you ask and ultimately, what’s the most important factor when choosing a Realtor?
When we asked random people what qualities are important when choosing a Miami Realtor, the response was: Ethical, Loyal, Truthful, Professional, Aggressive, and Experienced.
But when we ask home sellers how they choose their Realtor, it comes down to one single factor: PRICE.
Here are different scenarios we wanted to present. In the 3 scenarios, sellers interview 3 well known Realtors in their area who appear in local advertising and seem to have a wide array of listings.
FIRST SCENARIO
Agent 1 tells them the truth about the miami real estate market and how they will sell the home for a lot less than they had planned.
Agent 2 tells them they will list the property at whatever price they think is right and will recommend reductions as time progresses.
Agent 3 tells the buyers that they can get $200,000 more than what Agent 1 said.
What surprises us is that 9 times out of 10, the sellers will choose agent number 3 – even if that agent is not being realistic, even if that agent will NEVER achieve their goal. The house ends up sitting on the market for months, it may have a couple of contracts that fall apart because the house simply will not appraise, and the house will end up selling bellow Agent 1’s price.
We have seen this happen so many times that we just roll our eyes and cannot believe that people can be that naïve. We realize that being ethical and truthful is not important to a lot of sellers.
SECOND SCENARIO
Agent 1 tells them that they should offer a higher commission to cooperating agents to have more exposure and a better chance of selling.
Agent 2 says commission makes no difference and they should list at the standard.
Agent 3 explains how they have tons of buyers, they only show their own listings and if they sell the property themselves, they will give a major discount on the commission.
Again, 9 out of 10 times, sellers will choose Agent 3. What they don’t realize is that because agent 3 only pushes their listings, other agents are not interested in showing Agent 3’s listings. Because Agent 3 is committed to making both sides of the deal, he is representing neither the seller’s nor the buyer’s best interest, but is only interested in the mighty dollar and volume sales. Those sellers will reduce the chances of selling their house in a buyer’s market, because they are limiting their market.
Because PRICE is once again at the top of the “qualifications list”, sellers fail to see the negative aspect of listing with Agent 3.
THIRD SCENARIO
Agent 1 explains that over 85% of buyers start their search in the Internet and it is important to Google the Realtor’s name to see their search ranking.
Agent 2 sees no advantage in on-line advertising because real estate is “local”.
Agent 3 is in every local publication possible, his face appears in the local chamber of commerce, has a beautiful magazine ad, appears in the local paper and promises that the listing will appear in all those print-ads and local publications…….he has no Internet presence.
9 out of 10 times, sellers will again choose agent 3. Did you know that all those local print ads are good for getting listings? A study was done by the National Association of Realtors that local print ads and publications are recommended because they “expose” the Realtor…..not the listing…….it helps REALTORS!
Take off the blind fold!
So there you have it– a listing agent chosen because he suggests the highest price (not being truthful), he pushes his own listings to his buyers and reduces commission and on top of that produces beautiful print ads that don’t sell listings.
We are seeing buyers educating themselves on the real estate market, on advertising, on local trends. We see buyers going in depth when choosing an agent to represent their best interest, so why aren’t sellers doing the same thing?
If you are a seller, do your homework, check your options, and don’t fall in the PRICE trap. We ALL want to get the most money possible in the least amount of time (that’s a no brainer). Google the Realtor, see what their Internet Presence is like, ask particular questions on marketing your individual property. Ask about latest advertising tools like video and blogging, how many different tools do they use? Make sure your interests are well represented.
You want the truth?....you can't handle the truth!
We recently prepared a purchase contract for some 
