Saturday, May 21, 2016

6 Reasons Real Estate Agents Aren’t Extinct

By Craig Donofrio, 5:00 pm ET, May 20, 2016, Realtor
It’s 2016, and it seems our need for real live people is ever-diminishing. There’s self-checkout instead of cashiers, selfie sticks instead of photographers, self-driving cars, self-watering plants, self-administered colonoscopies … well, you get the idea. Given that technology has become so important to buying and selling homes, you’d also think real estate agents would be a dying breed—yet they aren’t showing any signs of slowing down, with approximately 2 million active real estate agents throughout the country.
So why did real estate agents make the technology transition fully intact as opposed to, say, travel agents? We asked some experts to weigh in.
Reason No. 1: Selling is complicated

For many people, “a real estate transaction is financially momentous and complex—the most complex transaction people do in their life,” explains David Reiss, a law professor and academic program director for the Center for Urban Business Entrepreneurship at Brooklyn Law School.
Comparatively, personal travel agents—the kind where you’d walk in their office and have them book you a hotel and a flight—have gone the way of the dodo, because now that’s all simple DIY stuff (to be fair, not all travel agents are out of a job—there’s still a healthy travel agency sector that thrives on corporate and luxury bookings).
“People like having an expert when dealing with large, complicated transactions,” says Jeff Tomasul, founder of Vespula Capital LLC, an investment management company based in Greenwich, CT. “Why do people still have financial advisers? They want someone who does it full-time to make sure they are not doing anything wrong.” Same with real estate agents.
And real estate transactions are often anything but straightforward. Some deals, likeshort sales, can be “much more intricate than a regular transaction,” Reiss says, with lenders who have requirements that “a regular person would have no idea about.”
Reason No. 2: Buying ain’t easy, either
Buying a home, even if you come in with all cash, is not a cookie-cutter task, and you can find yourself drowning in paperwork and stressed out juggling things like meeting buyers, and dealing with the seller’s agent, lender, and title companies. Agents ease the whole transaction, and it’s something that has kept their profession alive.
“They can hold your hand through the process,” Reiss explains. “They might say, ‘This lender takes a long time, so put in your contract immediately and sign this and that paper and get all this stuff ready before you’re walking over hot coals with the lender for money.”
Reason No. 3: It’s their top priority
Your own interests and priorities will very likely always be split—because of those pesky little things like, say, job and family—but a Realtor® can be laser-focused on getting the deal done. “A Realtor has a singular aim: to sell houses,” Reiss says.
Simply put, having a real estate agent can make your life easier. Tomasul found himself in a frustrating position when he tried to sell his apartment in Manhattan without an agent. “Showing it was so tough with my schedule, and it was hard having a full-time job and keeping up in a timely matter with potential buyers,” he recalls.
That means the less you make time for buyers, the longer your place will stay on the market—and that’s not good for your bottom line.
Reason No. 4: They know the market, and the players, better than you
“The agent knows the market intimately, even more than a pretty informed resident,” Reiss says. And all that knowledge saves time. “Tracking sales, knowing listings, spending a lot of shoe leather on houses already for sale—right off the bat, they know more than the ordinary Joe and Jane. They understand condo boards and title companies. As a player in the game, they know what the other players are looking for and how to deliver.”
Reason No. 5: They’re objective
Without an agent showing your house for you, you have no shield from criticisms that can—and will—be made about your house from prospective buyers. Your favorite room in the home might be described as “tacky,” “needing a renovation,” or much worse. Sometimes such comments are negotiating tactics. Sometimes they are heartfelt, off-the-cuff opinions. But either way, they can lead to problems.
“It impacts objectivity for a seller to hear negative things about their own place,” Reiss explains. “Realtors aren’t emotionally invested. They don’t take comments personally. It’s not ‘Oh, you don’t like my chandelier? Then get out of my house.’”
Reason No. 6: The cost is worth it
We’re not saying a 6% commission is chump change. It can be a good amount of money when you’re selling your house. But using an agent saves a ton of time. Even with a 6% commission, time is money—for many people, time saved negates the cost. Plus, given that home buying and selling is a negotiation where you can save big if you bargain right, skilled real estate agents can step in to fight on your behalf, saving you major money. In other words, typically the money you pay an agent will come right backatcha.
Feeling a bit more confident than ever that you should have a real estate agent watching your back? Then Find a Realtor now and get moving.


Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.

Friday, May 20, 2016

Why real estate agent rankings are not going away


by Peter Thomas Ricci May 19, 2016, Chicago Agent Magazine

star-agent-ratings-system
America is a land of ratings. Whether it be primetime television, public schools or restaurants, American culture is uniquely suited to ratings systems, and our culture is awash in rankings, assessments and judgments.
So it should be no surprise, really, that ratings systems have elbowed their way into real estate, although the initial efforts were fraught with controversy and tension – and no example is more indicative than AgentMatch, the ratings system that realtor.com developed to compete with the systems of Redfin, Zillow and Trulia. Never officially launched, AgentMatch was bombarded by criticisms during its testing phase, and the comment sections of articles on the platform became breeding grounds of discontent, with Realtors attacking the very concept of comparing dues-paying real estate professionals.
Rating Systems in Real Estate
Despite all the controversy that ultimately grounded AgentMatch, agent ranking systems continued to permeate real estate, and now in 2016, there are numerous avenues for consumers to pursue before signing on with an agent. Examples include:
RatedAgent.com – For a fee (as low as $85 for the first year and $65 for following years), agents can join the RatedAgent network, which allows verified clients to rate the agents based on their experiences. Along with written reviews, agents are also ranked on a scale from 1 to 5 on availability, area knowledge, responsiveness and other factors, and potential clients can even view pie charts that break down an agent’s rating for each factor.
Yelp – The ratings behemoth for restaurants and other local businesses, Yelp also allows ratings for real estate agents and specific offices. Considering that this is Yelp, however, the ratings come with the same potential pitfalls of any free service – rash judgments, ad hominem attacks and spitting matches.
Angie’s List – Just as Angie’s List includes ratings for doctors, mechanics and contractors, it also rates real estate agents. With verified reviews and a network of three million users, Angie’s List is among the most respected review sites out there, in part because it is not free. Only paying members are allowed to rate and access reviews on the site.
Here to Stay
In the 2015 Profile of Home Buyers and Sellers, the National Association of Realtors reported that for 23 percent of buyers, reputation was the most important factor they considered when choosing an agent. Similarly, 10 percent chose their agent based simply on Internet searches, and with no referrals of any kind.
Admittedly, referrals from family and friends are still the most popular device for choosing agents, with 41 percent of buyers opting for that strategy (by comparison, the second most prominent reason was the 12 percent of buyers who chose an agent they previously worked with). Still, nearly 90 percent of consumers used the Internet during their home search process, and as agent ratings systems become more and more engrained in the real estate culture, it stands to reason that more consumers will consult them.
https://chicagoagentmagazine.com/2016/05/19/real-estate-agent-rankings-not-going-away/



Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.


Tuesday, April 12, 2016

“All indicators point to this spring being the busiest since 2006.”

A few weeks ago, Jonathan Smoke, the Chief Economist at realtor.com, exclaimed“All indicators point to this spring being the busiest since 2006.”
Now, Freddie Mac has doubled down on that claim and is saying that 2016 will be the best year that the real estate industry has seen in a decade. In their March Housing Outlook ReportFreddie Mac explained:
“Despite the challenges facing the housing market, we expect this to be the best year for housing in a decade. Home sales, housing starts, and house prices will reach their highest level since 2006 according to our latest forecast…Challenges remain, with low housing supply and declining affordability being a key concern in many markets, but on balance, the housing markets in the U.S. are poised for the best year since 2006.”
The key indicators that have given Freddie Mac such a positive outlook are:
  • Low interest rates
  • A resilient labor market
  • An increase in household formations
  • A projected increase in newly constructed homes

Bottom Line

2016 looks to be shaping up as a great year for residential real estate. Whether you are thinking of buying or selling, now may be the time to sit down with a real estate professional to discuss the new opportunities that are arising.

Sunday, March 6, 2016

Great home for sale in Royal Oak

This is a Royal Oak home that is just minitures from downtown.  Near schools, hospitals and shopping.  It is a quiet neighborhood, tree lined and well taken care of.  The home is one of the cleanest you will see.  It is very spacious for the price.  The bonuses to this house is the finished entertainment room, a workshop and a laundry room in the 909 square foot basement and a true 2 1/2 car garage.  The extra room in the garage is great to get two cars in and still have plenty of room for equipment and a work area.

If you are interested in this home, call me.  I will arrange for a personal showing of the home.

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.


Saturday, February 6, 2016

Alert: Recent Break-Ins Reported at Listed Homes in Franklin Area

REALTORS® in Franklin, Michigan have found that some of their vacant listings have been broken into over the last week.  Police reported that three forced entry break ins have occurred in Franklin off 14 Mile Road that have lock boxes on the front doors. 
Franklin Police are issuing advisories for REALTORS® to keep their clients homes safe.  They are asking that the lock box be hung on the side or back doors when ever possible.  They also advise that porch lights be timed to come on at dusk to make them less attractive to thieves.  Additionally, have a landscaper keep the drive and walks clear to make it appear someone is living there on a day to day basis.  If not able to have a landscaping company keep the snow cleared, at least dive in and out of the drive numerous times.
It is also good policy for the REALTORS® to make contact with neighbors and ask them to call 911 and the REALTOR® if anything suspicious happens.


Thursday, February 4, 2016

Real Estate Transfer Tax Refund Clarity

At the close of 2015, Governor Snyder signed into law legislation providing clarity to Michigan's State Real Estate Transfer Tax. House Bill 4173, sponsored by Realtor®-member and Representative Dave Maturen (R-Brady Twp.) revises the State Real Estate Transfer Tax to clarify two items:
  1. The party that paid the transfer tax may request the refund if a refund is due, and
  2. Clarify that Exemption (u) applies when the SEV at the time of sale of a Principle Residence is less than or equal to the original SEV on the purchase.
The Michigan Supreme Court recently broadened the application of Exemption (u) by removing the requirement that True Cash Value be realized in a transfer. The legislation enshrines this change, offering important clarity and tax relief to distressed sellers. 

In addition, this legislation gives buyers the same refund rights as sellers when it is determined that the transfer tax was paid unnecessarily by a buyer. Refund rights under the Sate Transfer Tax are available up to 4 years and 15 days from a transfer.

To better aid members in reaching out to their former and current clients that may qualify, the refund application form is found here. (Please note that the current refund form does not reflect the change in law. The State Treasury will be updating the form in the coming weeks).

The following Q&A's are intended to illustrate exemption (u)'s applicability:
 
QUESTION: Some clients of mine sold their principal residence in 2013 and the SEV was lower at the time they sold it than when they purchased it. They just found out that they might be entitled to a refund of the state transfer tax they paid. They sold the house at a profit; will they still be entitled to the refund?
 
ANSWER: YES, to qualify for the state transfer tax refund, the SEV at the time of purchase must be higher than the SEV at the time of sale. The fact that they sold the house at a profit has no effect on their ability to get a refund.
 
QUESTION: Some clients of mine bought vacant land in 2011 on which they had a house constructed in 2012. They sold the house in late 2014. Will they be entitled to a state transfer tax refund if the SEV of their property at the time the house was completed was more than at the time of sale?
 
ANSWER: NO, since at the time of purchase, the land was vacant, they cannot claim a refund of the state transfer tax since the property was not their principal residence at the time of purchase.


Source: Greater Metropolitan Area Realtors

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.