Does Your Hoboken Realtor Live in the Past?
Categories: About Realtors, Hoboken Condos
Technology Rules the Business World Today
Anyone who is in marketing or sales can attest to the importance of the internet. With the recent release of the new G3 iPhone, mobile browsing grows ever more powerful. Real estate transactions, however, still require a good deal of personal interaction and face-to-face meeting (even hand holding). Using the same person you used last time, or a “friend of a friend”, may not be the best way to select the most up-to-date, tech savvy agent. To really take advantage of the power of the internet, the person you want working for you when you are selling a Hoboken property must be on the cutting edge.
When You Sell a Hoboken Condo, Money Matters Most
Just because a certain Hoboken realtor sold you your condo years ago does not mean that they are necessarily going to do the best job for you today. You may have a relation with that agent and you might even be neighbors or friends. That doesn’t mean they are the best choice when it comes to selling your property. Yesterday’s way of doing business has changed dramatically. In just the past few years, the on-line presence of real estate listings has multiplied geometrically. Your friend may ‘know a few people’ but may not know his or her way around Zillow, Trulia, or Craigslist. Craigslist is only the beginning. Look out for virtual tours, video, and podcasts to hook the buyer on your Hoboken condo. You need to reach the largest possible audience of Hoboken buyers to maximize the sale price of your Hoboken condo or home. That means your realtor better know how to utilize technology and the internet to the nth degree and do it well.
Does Your Realtor Pass The “Email Attachment” Proficiency Test?
Do you get emails on your blackberry (or palm or iphone) that are gibberish? I know I do every day. With literally hundreds of messages a day, if I can’t read your message right off the bat chances are I will skip it. Many realtors try to send mass email flyers to other agents and customers but have no clue how to do it. Instead of seeing a mobile screen of useful info, a bunch of html tags appear. Knowing nothing about today’s most popular technology platforms these agents are simply failing to communicate well. If they can’t send an email message well do you think they are going to do a good job of reaching potential customers?
Did The Message Come Out of A Box?
Some agents realize that they need to ‘keep up with the times’. They buy a pre-packaged website/mailing program. You’ll know when you are looking at one of these because the actual content of these sites and emails is so dumbed down as to be pablum. If you are selling a Hoboken condo you need to reach a young, sophisticated, technologically advanced audience of potential buyers. They are not going to read template generated form letters. To reach these buyers your agent must provide them with meaningful and engaging content that will make them desire your for-sale property.
Invite Her Over For Pie Instead
Of course, loyalty is an admirable trait. When someone in the business world has done right by you, then you should absolutely stick with them. Assuming they are qualified. If you are not willing to lose money because your ‘friend’ the agent hasn’t got a clue about today’s way of doing business, here’s a suggestion. Continue to be his or her friend but instead of engaging them to sell your Hoboken condo, invite them over for pie. Then hire the best, most qualified agent you can find to sell your home. There are many to choose from.
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One Hoboken Realtor May Be More Than Enough
Categories: About Realtors, For Buyers, For Sellers
With a Multiple Listing Service for Hoboken Real Estate, Everybody Wins
I had an interesting phone conversation this morning with a potential buyer of a Hoboken condo. He wanted to see condo properties in both Hoboken and Manhattan. I was explaining the difference between how real estate brokerages work in Hoboken (and New Jersey in general), where there is a multiple listing service (MLS), vs. Manhattan, where there is not.
If you are a Hoboken condo buyer and find a nice property on-line, say at trulia.com or notice a “for sale” sign on a building while walking down the street, chances are pretty good that the property is listed on the MLS. The agency that listed the condo has agreed to cooperate with every other agency in town to allow all agents to show that property. The more times a condo is shown to buyers, the more likely it is to be sold and at a higher price which is better for the seller. The sales commission agreed upon by the seller and the listing agent, typically 5% in Hoboken, is divided 50/50 between the listing agent and the agent that finds a buyer for the condo. If you’re a buyer and have developed a good working relationship with a particular agent, he or she can show you the place you found on line as well as any other property on the MLS. The buyer wins because the agent gets to know the buyer’s likes and dislikes, doesn’t waste the buyer’s time showing inappropriate properties, and by being loyal to that agent, he or she works that much harder to find the perfect property. After all, agents don’t make a penny working with the buyer unless the buyer actually buys a condo.
Agents Don’t “Compete” For the Buyer
At this point my caller objected. He said he would not work with a single agent because that would not be in his best interest. If all the different agents are competing with one another, he explained to me, he would pay less for his condo. Huh? I pointed out that if he were to buy a condo directly from the listing agent he would still pay the full commission. The entire commission would go to the listing agency. Listing agents don’t give up half the commission when they sell their own listings! Furthermore, I explained, the listing agent represents the seller. It is often debated whether it is a conflict of interest for a listing agent to also represent a buyer (called dual agency). How can a seller’s agent work for the buyer and act as a fiduciary of the seller with an obligation to obtain the highest possible price for the seller’s property? He still didn’t get it. If he didn’t want to work with a single agent and instead went to every agent in town telling them he wants them “to compete for him.” Outstanding agents with knowledge and skill are in high demand and don’t have the time or patience to deal with a “high maintenance” buyer who thinks he’s going to outsmart the world. This buyer may only outsmart himself winding up with an novice agent, and will end up paying the same commission anyway. The really good Hoboken agents often have more business than they can handle.
The Commission is Just “Wrapped Up” in The Sales Price
My caller may have thought that, as a buyer, he had some ability to change the commission to be paid. Maybe he erroneously thought that the seller pays the listing agent only half the agreed upon fee for selling the condo herself or that the fee varies depending on which agent he uses to find the condo - wrong again. The commission is set no matter who sells the home. Sometimes, a seller and listing agent do agree when listing the property that if it is sold “in-house” that is, by the listing agency, the fee might be 4% instead of 5%. That has to be disclosed in the listing information which every agent can see. Which agent finds the property for you has no effect on the sales price. With one exception.
An Agent’s Negotiating Skills Do Matter
When a buyer finds the condo of his dreams and makes an offer, it is the realtor who presents the offer to the seller’s agent. Although the offer is made in writing, hopefully in contract form, there is usually some verbal back and forth over the price until the offer is accepted. It is during this very important stage of offer and counter-offer that your agent’s negotiating skills are crucial. Who do you want working with you when you are a buyer - an excellent negotiator who has worked exclusively for you and know your financial constraints or the inexperienced novice agent who you just tried to scam out of a half a point? Of course, having an agent who communicates well, can express the buyer’s intentions accurately and clearly, avoids emotional entanglements like anger and disappointment, doesn’t make empty threats, and is smart and professional is in the buyer’s best interest. Negotiations can become complicated and heated, especially when there is more than one potential buyer involved. Having a good agent working for you when you find the condo of your dreams may be a great payback for having been loyal to that agent while house hunting. As for my caller, I wish him luck but I have no time for games.
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The 10 Worst Things About Hoboken Realtors
Categories: About Realtors, For Buyers, For Sellers
Realtors Everywhere Have a Really Bad Rep - Often for Good Reason
Having been both a lawyer and a realtor, I can’t say which field is the brunt of more jokes. There is often a basis in truth for the ridicule but it is not always deserved. Like lawyers, some Hoboken realtors are just wonderful, others not. Like most things in life, though, the skill and competency of realtors falls on a bell curve. Most fall somewhere in the middle. So how do you, the Hoboken home owner or Hoboken condo buyer choose? What should you look for or avoid? Here are ten very crucial factors to help you sort out the good Hoboken real estate agents from the bad.
1. Realtors With No Experience In Real Estate
Sounds obvious, no? Yet there are plenty of Hoboken realtors out there who have never owned a home, never purchased an investment property, never been a landlord, never managed a property, never sold a condo. Without experience in real estate, a real estate agent may not understand what it is like to be in your position as a buyer or seller. An agent who has bought, sold and owned property is better able to anticipate the pitfalls of buying or selling, to advise you on what to look for or what to avoid. An agent who has redone a kitchen, for example, can tell you that you need to ask about plumbing connections, building permits and delivery times for cabinets and appliances. An agent who has sold a house probably knows that the closing date may be pushed back several times for no apparent reason. Just as it is said that the best surgeon is the one who has done a particular type of surgery many times over, the more times an agent has bought and sold, renovated and repaired, and shopped the market, the better at it he or she are likely to be when working for you. So choose a realtor who has real-world experience, preferably with a similar type transaction to yours.
2. Realtors Who Don’t Really Know the Neighborhood
It’s often said that the three most important things in real estate are location, location and location. One of those surely applies to the location of your realtor. If you are considering buying a condo in Hoboken, use a realtor who lives in Hoboken. I mean, come on, what does a real estate agent from Secaucus really know about Hoboken? Many smart buyers will rent in a given location before deciding to buy to get to know the neighborhood! Just the other day, I overheard an agent telling a tenant about the location of a rental property in Hoboken. He was badly mispronouncing the name of Elysian Park. Now anyone who lives in Hoboken knows that Elysian Park is one of Hoboken’s nicest. A property located on Elysian Park is very desirable. This guy didn’t even know what Elysian Park was, never mind why you might want to live near it. Is that really who you want working for you? Plenty of real estate agents have tried working in Hoboken perceiving it as a money making market. You’re much better served by one who really believes in the community and has made it home. That agent has a vested interest in your continued satisfaction (since they will be a neighbor) and in the continued improvement of Hoboken.
3. Realtors with No Real Relevant Education
Buying or selling a half million dollar plus condo in Hoboken? That’s a pretty sizable transaction for most of us. To succeed, you’ll probably seek out financial advice regarding both a mortgage and tax consequences of your purchase or sale, a home inspection, legal representation. For all those issues, you try to find the best advisor possible. While some people think real estate agents are just tour guides, and some may be, the good ones can be very valuable. What is your agent’s background? Did you google him? Does she have a college education and previous work experience in the financial sector or in a field relevant to real estate? Or did he take a 3 month night course to get a license with no relevant work experience or relevant education? Realtors often have to work with the lawyers and mortgage people to keep a transaction on track. Don’t you want to use someone who will actually understand the issues? There are organizations that offer all sorts of “certification” classes for agents, at hefty fees. The content of the class, however, often seem designed more to make money for the offeror than to teach anything relevant or timely. The latest trend is agents professing to offer “professional home staging” services. In some cases you can pay about $1,000 and in three weeks, you are certified as an expert. Be wary - the substance of many of these designations is not as comprehensive as you might think.
4. Real Estate Agents Who Can’t Write An Error Free Craigslist Ad
Communication should be thoughtful, concise, correct, timely, brief, clear, complete and of course, honest. It is a vital part of doing business to be able to express yourself well. If an agent can’t even write an on-line ad well, how well are they going to work for you? The realtor is the one who initially prepares the contract for sale. Don’t you want it to be clear correct? Do yourself a favor. Pay attention to details. See if your potential realtor does a good job on window displays, internet ads and even emails. If they are full of bad grammar and typos, walk away. Communication is a two way street. Not only should your agent comunicate well but he or she should really listen to you. Your needs matter. There are many agents who will show you any property just to show you something with no regard to your requirements or limited time. Look for one who is listening carefully to your concerns.
5. Realtors Who Are Afraid of Technology
Today’s market is driven by the power of the internet. Technology is crucial both to market your property if you are selling and to search the market if you are buying. A good agent knows how to use the technology well. That means more than text messaging and having an Iphone. Good agents know how to use new technology portals like Trulia.com and Zillow to your advantage. They stay up on developments and implement them for your benefit. An agent who tells you video doesn’t matter, or that the company website is all you need, or that no one looks at craigslist may not best serve your interests.
6. Realtors Who “Do a Little Real Estate” on The Side
Who would you rather have handle your transaction: someone who does a little real estate on the side, after work, or when the kids are asleep or a real professional with an assistant or team to collaborate with and cover conflicts? The best agents take their jobs seriously and do it full time.
7. Agents Who Make Promises They Don’t Keep
This one is pretty self explanatory. If an agent says “I’ll get back to you tomorrow” you have the right to expect that to happen. Of course, that’s not always the case. I learned a long time ago in business never promise anything you don’t know for sure you can deliver. It was good advice. You want to work with someone who does what they say they are going to do.
8. Realtors Who Are Not Thorough
Real estate transactions, like any legal transaction involving considerable sums of money, involve many details. While both sellers and lawyers in closing process are typically represented by counsel both agents play a big role in ensuring that a transaction closes. There are a myriad details, lots of paperwork, and many items which require follow up. A good agent will ensure that nothing falls through cracks and that the process keeps moving forward. Finding the buyer or the perfect property is just the first step in a long process. You want someone who will be on top of things for the duration of the deal.
9. Realtors Who Do Not Take Responsibility For Their Actions
To err is human and everyone makes mistakes at sometime or another. When a good agent makes a mistake, he or she will admit it and then attempt to rectify it. He or she will not blame the other side or you.
10. Realtors Who You Just Don’t Like
You will be spending a considerable amount of time with your agent. If you don’t like them it could be an unpleasant experience. Find an agent that suits your personality. While the idea is not necessarily for them to be your friend for life, you want to have a good working relationship. If you don’t like someone, move on.
It’s Worth The Effort To Find and Use a Good Agent
It may take a little time and you may need to ask around but finding a good agent when you plan to engage in a real estate transaction can save you loads of time and heartache. These guidelines may be helpful in knowing what questions to ask when you meet a realtor with whom you might work. Their knowledge, experience and insight can benefit you greatly. So take the time to find the right person. You won’t regret it.
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