Why Keller Williams Realty? with Marc Guggino

This week we had a guest speaker, Marc Guggino, Qualifying Broker of Keller Williams Realty, discuss our company, some of the reasons why Cheryl switched from Prudential New Mexico Properties to Keller Williams Realty, and even the fun details of his personal history with Cheryl!

Real Estate Search Engines

How does someone typically start the process for buying a home?

With the do-it-yourself trend, Bob, so many people start by looking online. They use real estate search engines like Zillow and Trulia.com. This gets people excited about the process, looking at the available pictures and general information. However, I caution my buyers and sellers that oftentimes the information is not accurate. I have seen prices too high or too low, houses that were sold months ago and still show up as available to buy or rent. It can be very confusing.

 

Why is that? Where do these websites get their information?

Licensed Brokers upload accurate information into the Multiple Listing Service, or MLS, as required by law. Search engines like Trulia and Hotpads.com have limited access to this data, and they offer it for free to people searching for houses. Yet, these sites are really just another way to sell advertisements as they are not monitored for accuracy and are often unreliable. As Brokers, we can’t control what they choose to promote. The MLS is the gold standard, with information updated daily and only accessible by a Realtor. 

So you’re saying that a buyer really needs to look at the MLS?

Absolutely! As a Broker, I make sure that my buyers and sellers are obtaining current and accurate information and offer them expert advice on what is often, for many of us, the biggest financial decision we will ever make.

I gather that searching online can be only an initial step?

I love the online process when it comes to the buyer. I can set up a portal to the MLS for a buyer with a search to their specific preferences, such as the desired area and price range, sent right to your inbox; as new homes come on the market, it will continue to send them listings of homes that fit their criteria. Only an agent can access the real, live information about homes for sale in our area. So call me today and start your home search!

Purchasing Investment Properties

I believe that everyone that possibly can should buy 1-2 rental homes this year as part of their financial plan. Real estate is still one of the number one long term investment strategies that makes sense. Many factors make this the perfect time to invest in real estate for the future.

How does the down turn affect this strategy?

Prices hit the low point, creating an incredible investment opportunity for the investor. As the market stabilizes, values increase, you will benefit from an increase in equity. Many of the banks are accepting short sales (in fact, we recently got two short sales to be approved in less than 4 weeks!), which is taking less than what is owed on properties to avoid foreclosures, resulting in great deals for buyers.

What are some of the factors that make this a good time in your opinion?

Interest rates are still at an all-time low. Sellers are negotiable. You control when you buy or sell so you can buy low and sell high. With a reasonable down payment, your investment can produce cash flow now and into the future. One of my favourite things about rental houses is that the tenant makes the monthly payment for you. As the owner, you benefit from the appreciation and don’t have to make the payment, I think that is a pretty good deal!

Isn’t it more difficult to get financing as an investor?

Many people think that! However, there are still great programs out there for people with a down payment and good credit. If you don’t fit in that category, you can still buy an investment property with owner financing. As I always say, “If you don’t buy now, you’re going to say ‘I wish I had bought then’.”

As always, who do you know that needs to buy or sell real estate today? Thanks!!

Luxury Home Market

In the Greater Albuquerque Area, the luxury real estate market is defined as a home valued at $500,000 and above. Over 4,500 homes are currently for sale in the Greater Albuquerque Areas, and out of that 415 are priced in excess of half a million dollars. This means that the upper end market currently represents just over 9% of the total inventory available. What we report month after month, the 3-5% of all the total sales. The supply and demand in the upper end market, we do still have an over supply.

What does it take to get a home like that sold?

All it takes is a pretty sign, a shiny lockbox, and an MLS listing. Ha ha ha! Just kidding, I only wish it was that easy. Luxury real estate is definitely a niche market. The top 3 things to focus on in the upper end market are as follows:

#1: Work with an experienced luxury home specialist, like myself, of course! Seriously, with over 3,000 Realtors in the area, less than 2% of agents qualify and are invited to be members of an exclusive network of agents that specialize and consistently sell in this price point.

#2: You have to have an aggressive and creative marketing plan, not to mention a sizable investment from the listing agent towards the marketing campaign, to succeed in this competitive price point.

#3: As in all price ranges, but especially in this price point, the price war and beauty contest is absolutely critical and a luxury home specialist can help you determine exactly what the top value is to get your top dollar in this upper end market.

How many have sold over the past year?

Since March 1, 2013, 398 properties have closed above $500,000. A sold sign becomes even more difficult as the price point reaches the million dollar mark. Historically speaking, the 2^nd and 3^rd quarters are the most productive, so if you’re thinking of selling an upper end home, now is the time to do it!

As always, who do you know that needs to buy or sell real estate today? Thanks!!

Top Ten Reasons to Own a Home

“Real Estate segment with our Residential Expert Cheryl Marlow, at Keller Williams Realty!”

Good morning, Cheryl! So today you want to give us some great reasons to own a home, is that right?

Good morning, Bob! Yes, I do! Let me start off by saying that home ownership is an intrinsic part of the American Dream, and it is an amazing feeling to walk through the front door of a home, and know that it’s yours. Not only does owning your own home give you a reason to be proud, but it’s also a great financial move. Purchasing a house is probably one of the largest investments you’ll ever put so much effort and fiscal responsibility into; with time and patience, it reaps great rewards!

What are some of these great rewards?

In my opinion, the top ten reasons to own a home are:

1.   Real estate appreciates in the long term, giving you a good return on your investment.

2.   The alternative is to pay rent, which benefits your landlord and does nothing to improve your finances!

3.   The interest on your mortgage is tax deductible!

4.   In an emergency, you can borrow against your home equity.

5.   A home is a leveraged investment using the bank’s money if you’re financing a mortgage. Who wouldn’t be excited about that?

6.   A home purchased with a fixed rate mortgage has a stable payment schedule that becomes easier to pay over time because of inflation.

7.   Owning a home is a good way to diversify your assets.

8.   Home ownership clear of debt will help you retire comfortably.

9.   Owning a home is still one of the most important steps towards financial success and security!

10. And, of course, you can always change your home by painting, remodeling, landscaping, etc., and the only person that benefits is you!

Great reasons! Is there anything else you’d like to touch on?

Bob, when the real estate market changes, concerns rise about whether or not it makes sense to purchase a home in a particular market environment. With today’s affordable home prices and low interest rates now is a great time to buy your first home or to sell your current home and purchase your dream home!

Home Inspections & Warranties

This morning we have a guest speaker with us today, Mr. Scott Herrmann of ABQ House Detectives and Assurance Home Warranty, filling in for Cheryl Marlow. Good morning, Scott. Can you give us some information on home warranties and how they work?

Good morning, Bob. We have had great success working with many of Cheryl’s clients for several years. As a licensed home inspector, I would advise obtaining a home inspection and warranty, and here’s why. A home inspection is vital to the process of purchasing a home, negotiating repairs, and fully understanding how to take care of your new home.  A home inspection should reveal potential repair items, which, in turn, can save both buyers and sellers thousands of dollars.

Tell me about home warranties.

A home warranty is a one-time annual premium that is renewable, and covers either the repair or replacement of these home system components that often breakdown. It’s simple: when it comes to home warranties, we PREACH. Plumbing, roofs, electrical, appliances, cooling, and heating.

So what kinds of problems do warranty companies run into?

The most common issue is when people assume certain things are covered, when, in fact, they aren’t; or they fail to contact their home warranty company before making repairs. So the lesson to be learned here is that it’s important to read and understand the warranty contract thoroughly in order to ensure that you’re covering all of the bases. You can also contact me directly with any questions!

It certainly sounds like home warranties are important!

They most certainly are! Warranties protect all parties involved in a home sale transaction. They protect buyers and sellers from unexpected expenses that can end up burning holes in their pocket. Because buying a home is such a big investment, and probably one of the most important purchases you’ll ever make, it’s imperative to work with professionals, from your Realtor, to the inspector, to the home warranty company.

Scott, you had mentioned roof coverage.

Well, yes, Bob. Let me forewarn you that I have found home warranty companies out there that provide limited or no roof coverage, but at Assurance Home Warranty, we do cover roofs. At Assurance Home Warranty, we have the highest available coverage, which is just one of the many reasons that, as an inspector, I feel confident they offer our clients the best warranty value. 

Showing Feedback

I wanted to ask you about showing feedback. One of my friends has their townhouse for sale and their agent told them that feedback was not important. They’re in another state, or of course I would have had them list with you! You’re the expert, is feedback important or not? 

This is something that I’ve been discussing with our clients. The answer is both, it is and it isn’t important. Let me explain what I mean. The obvious feedback is that if that particular buyer didn’t make an offer on your house, then you didn’t win the price war and beauty contest in their mind. They found something else that they felt was a better value, and they bought a different home. It could have been many reasons, your floor plan, your neighbourhood, your price compared to the competition. The reasons are as varied as the buyers. At the end of the day, if you aren’t the best priced for the best home, you won’t win that price war and beauty contest.

It sounds like you’re saying no offer is the actual feedback and it doesn’t really matter what they thought of the house if they didn’t buy it.

That may sound harsh, but it’s reality. It’s a challenging situation as Realtors often don’t respond to feedback requests, and yet sellers want to know what they thought. As part of our customer service, we attempt to obtain feedback from every showing. We email the other agent three times and often try to chase them down by phone. In real estate, as in other businesses, 5-10% of the agents are doing 95% of the sales. I’m going to try to get that feedback from the other top agents because they are busy in the field every day and know what the competition is, and my clients appreciate it. If the agent doesn’t respond to three emails, it’s a safe bet their client has no interest.

So I’m officially telling my friends and everyone else that no offer is feedback! Ha ha :)

And I’m officially telling you and everyone else that getting feedback never sold a house! Ha ha :)