Category Archives: Shopping for a Home

I Say, Shall We Borrow Some British Real Estate Ad Language?

country lifeThe busy-ness of the holiday season, not to mention the emphasis on shopping, must be taking a toll on me: I’ve been indulging in the guilty pastime of perusing old issues of Country Life magazine, in search of my dream manor house.

(You too can play this game! Just allot yourself an imaginary budget — I’ve recently raised mine to £1.5 million, trying to ignore the exchange rate completely — and then see what it buys you. The next step is to ignore the likely upkeep costs.)

Anyway, as I’m shopping, I can’t help but notice that advertisements for properties in England tend to use much different language than we use here in the U.S. of A. Below are some examples. Feel free integrate them into your marketing efforts as you see fit:

  • “ideal for family occupation”
  • “elegant and commodious”
  • “Located in an area of Outstanding Natural Beauty with abundant footpaths and bridleways”
  • “undulating farmland”
  • “excellent pheasant and partridge shoot”
  • “in the same Family ownership for nearly 200 years.”

A little adaptation may be in order, of course. For example, I don’t have any farmland, but my driveway exhibits a respectable degree of undulation. And we saw some wild turkeys walking down our street just last week! Too bad there’s just no way to make “in the same Family ownership for nearly four years!” sound as impressive.

Cheerio, then.

Finding Solid Reviews of Real Estate Agents Still a Challenge

smart homeGoing online to find a home to buy has become so user-friendly, full of pretty pictures and fun bells and whistles, that some buyers have been known to proceed all the way to a purchase without once actually visiting the house. The Internet has become the “go-to” place for starting a home search. But it’s not yet the “go-to” place for finding a real estate agent.

Most agents have their own website, or at least a page on a website owned by the real estate agency for which they work. But the amount of information the agents offer up may be minimal, and is certainly not standardized. Some provide little more than their name, rank, and credentials — while others wax on about client philosophy, forgetting to so much as tell you that they’re members of, say, the National Association of Realtors (NAR).

Very few agent websites offer clients a place to post reviews and ratings. (Redfin is an exception here.)

Other consumer-rating websites have, of course, stepped in to fill the void, such as:

  • Yelp.com. Any consumer of anything online is no doubt familiar with this site and its opportunity for the world at large to rate services on a five-star system and write a lengthy essay about their experience. Potentially useful? Yes. But look at what it doesn’t provide — any independent, objective information about the agent’s credentials, work history, or success at matching buyers to homes or getting homes sold for a worthwhile amount.
  • Zillow.com. This is the site that every real estate agent is afraid will take over the world. Zillow offers a Yelp-like, five-star rating and review system — but again, minimal hard data about indicators like the agents’ transaction history.
  • Neighborcity.com. This tries to be the opposite of Yelp, by using “a sophisticated algorithm that analyzes Agent’s transaction history and active listings to provide the most objective and relevant rankings of Realtors in any area.” It’s a site worth stopping at for information about an agent’s experience and transaction history. But it feels like it’s still getting off the ground — I had a devil of a time getting it to search for agents in another state (it kept defaulting to my home area); many agents lack photos; and you can tell it’s a computer-run algorithm when you run into descriptions like, “he primarily serves sellers with Single Family properties in Seattle, Kent and Renton and the Interbay, None specified and Green Lakes neighborhoods.”
  • AgentAce. This is more than a review site, but plays matchmaker. It provides hard data about agents’ transaction history, then a live human contacts both the prospective buyer and suggested agent to set up a relationship — and the company takes a cut of the agent’s commission if it all works out. Great for handholding, but less useful if you just want to research agents online. (And it’s not available in all U.S. markets yet.)
  • HomeLight. This site also plays matchmaker, leading you through a long questionnaire before suggesting agents. It collects reviews, but as far as I can tell, doesn’t let the public see them, instead factoring them into its ratings of the agents. It’s operative in 34 U.S. markets so far.

Meanwhile, the great institutional behemoth known as the NAR has decided, at its national convention, that it “should develop a methodology to rate REALTORS ®.” That doesn’t sound like something that will happen tomorrow — especially given that one of its committee members hastened to explain that, “I know that the impression those words give are not in line with the intent of the objective. NAR, as an organization, will not rank, rate, or review Realtors.” Uh, guess we’ll have to wait and see.

Competing With “Investors” Has a Whole New Meaning Now

IMG_4403For people wanting to buy homes in which to live, “investors” have long been the bogeymen — the professionals with lots of cash in their pockets who sweep in, buy up properties, and either turn them into rentals or flip them for a profit.

They’re still in the picture, making buying a home difficult for ordinary buyers, especially in hot markets.

But percentage-wise, it’s looking like fewer and fewer of these investors may be professionals. This is alluded to by Bernice Ross in her article for Inman called “Ultra high net worth individuals want to work with real estate agents of their own caliber.” She describes a recent event called Luxury Connect, in which agents representing UHNWIs came together to discuss their specialized corner of the market. (Okay, I confess, I had no idea what UHNWIs means — it’s “ultra high net worth individuals.”)

At the event, Zillow’s Greg Schwartz said that, based upon a Zillow survey, 72% of high net worth individuals said they prefer real estate to the stock market as a “safe haven” for their investment. This is a reported 30% increase from five years ago. They may not be buying up scads of homes, but rather a second home for vacation or retirement — but they’re still adding to your competition as a home buyer.

Oh, and if you were picturing U.S.-based investors, that image needs revising, too. Many foreign-born investors are parking their cash in U.S. real estate, particularly in New York, Los Angeles, Miami, and San Francisco.

What else can I say, except that this seems like a good time to refer back to our earlier blog, “Don’t Let an Investor Buy the Home You Wanted!“?

Friday’s Real Estate Fantasy: Buy a Scottish Castle!

With Scotland all over the news lately, my thoughts naturally turn to what fun it would be to own a Scottish castle. (As yours do, too, I’m sure.) A really auld one, preferably.

castleSure, we’ve got properties that pass  for castles here in the U.S. — like this $45 million one just advertised by Coldwell Banker in Woodstock Valley, Connecticut, called Chrismark Castle. But it was built in 2003. It just doesn’t have that shivery, “People walked here hundreds of years ago, and there might be ghosts” feeling to it. (Unless they’re the ghosts of whoever had to put the tiles on those turrets.)

A little hint if you are tempted to buy this Connecticut place: I’ll bet it doesn’t come with the furniture, so be prepared to bargain separately for that Egyptian sarcophagus, or anything else you might have your heart set on. The only things that sellers normally leave behind in a home are “fixtures,” described in Nolo’s FAQ, “If I buy a house, will the seller leave behind things like the curtains and the refrigerator?

Meanwhile, miraculously, people actually sell real castles in Scotland. Or at least very, very, very large houses. Savills always has some nice offerings, as does Knight Frank.

There’s just one problem. Well, okay, there’s the money issue, but there’s one more problem: Last I heard, us Yankees can’t get any residency rights in the U.K. by buying property. (And as of the recent vote, Scotland is indeed still part of the U.K.) See for yourself, on the “Visas and Immigration” page of the U.K. government website.

But wait: It says you can get a visa if you’re married to a U.K. citizen. A Scottish laird, perhaps? With his own castle?

Now Everyone Wants to Be a Real Estate Agent Again!

Back when the real estate market could barely be scooped out of the gutter, real estate agents were leaving the profession in droves — particularly the inexperienced ones and part-timers who could no longer make a living at it. (Some of that may have amounted to a necessary housecleaning.)

5_JFK-Harvard-JV-Football-TeamNow, with the market picking up and insanely high home prices reported in some parts of the U.S., becoming a real estate agent is starting to look awfully tempting again. In fact, the National Association of Realtors reports that 42,000 agents joined up in 2013, its first membership increase in seven years. (That’s 840 new agents per state, if they spread out evenly! If all of them had beoame football players instead, there’d be enough to field 15 new teams per state, assuming a 53-person roster.)

This influx of newbies makes it critical that anyone choosing an agent to help buy or sell a home do some serious homework and make sure to get someone experienced and reputable, not someone who got tired of trying to scrape out a living as an aromatherapy consultant.

An agent isn’t just someone who drives you to houses, or stands around during your open house. The most important role an agent can play today is making sure that, in this high-priced transaction, you don’t pay more than you have to (if buying) or accept less than you have to (if selling).

The basic steps to finding a good agent are to:

  1. Get referrals from friends and colleagues.
  2. Interview at least three agents.
  3. Check references. (You wouldn’t believe how many people fail to do this.)

For details, check out Nolo’s article on, “Choosing Your Real Estate Agent” and our “Real Estate Agent Interview Questionnaire” and “Real Estate Agent Reference Questionnaire.”

Sellers “should be asking us if we plan to hire a professional photographer”

chairThose wise words came from Teresa Boardman, a real estate broker and contributor to Inman News, in a column titled, “Sellers often have some old-fashioned ideas about marketing their home that don’t include photography and that thing called the Internet.”

With a title like that, need I say more? But I have seen firsthand how sellers assume that their real estate agents have a tried-and-true marketing plan and are up to date on technology and so forth. The sellers tend go straight to questions about how much the agent thinks the house will fetch, ignoring behind-the-scenes issues like what the agent will actually do to market the place.

By way of example, a friend of mine hired an agent after carefully researching several others in the area and checking out their reputations and references. She looked at the agent’s existing property listings, and didn’t notice anything amiss. So she didn’t think twice as she watched the agent go through her house with a camera, taking pictures.

Then, when she saw her house’s online listing, she was shocked. Dim, obviously amateurish photos made a charming house look utterly unexciting. By now, the house was listed, the open house was scheduled, and it was late in the game for a redo.

Anyone can take a bad photo. Here, I just took one for this blog, above. Notice how the light from the window creates painfully high contrast, and makes the space behind the chair look like a dark cave? A pro would never allow that.

Bad photos put a house at a serious disadvantage. First off, as Teresa Boardman and every other source of statistics will tell you, the overwhelming majority of homebuyers start their home search online. They no longer rely on agents to do the prescreening and show them possibilities in the real world — they can easily screen and eliminate homes themselves, based on what they see within the virtual world.

What’s more, online home searchers will be looking at a number of listings posted by agents who did shell out the several hundred dollars that it costs to hire a professional photographer. Some of those photos will make even the small, dark homes look like expansive palaces. (Ah, the miracles of wide-angle lenses. Next time you’re looking at listing photos, notice how all the refrigerators look like they’re about nine feet wide!)

So, yes, by all means ask prospective listing agents whether they plan to hire a pro. It’s not as though the agent will suffer by investing in this aspect of marketing — a successful home sale to an eager buyer will yield the highest possible commission to the agent, too.

Miami Real Estate Industry Willfully Blind to Sea Level Rise

fla hurricaneIt takes a writer from a British newspaper to point up the absurdity of human behavior in Miami, where despite obviously rising sea levels, “The local population is steadily increasing; land prices continue to surge; and building is progressing at a generous pace.” (See “Miami, the great world city, is drowning while the powers that be look away,” by Robin McKie, Friday 11 July 2014.)

Many Miami residents are apparently  living in a state of denial. And not just climate change denial, by the look of it. To deny climate change is, after all, primarily to deny that humans are the cause of changes in the environment.

No, in the case, we seem to be witnessing literal denial of what’s in front of people’s eyes: walls of seawater, increasingly regular flooding, shopkeepers who “keep plastic bags and rubber bands handy to wrap around their feet when they have to get to their cars through rising waters,” and homeowners who “have found that ground-floor spaces in garages are no longer safe to keep their cars.”

Yes, they’re building sea walls and other measures to hold back the waters, but scientists believe these measures will offer only short-term relief. And it’s not just a problem of occasional high waves. As McKie describes, Miami is “is built on a dome of porous limestone which is soaking up the rising seawater, slowly filling up the city’s foundations and then bubbling up through drains and pipes. Sewage is being forced upwards and fresh water polluted.”  Meanwhile, the cost of the stopgap measures is in the billions.

Just for fun, I took a look at some ads for Miami real estate, wondering whether the homes on higher ground would at least mention that fact — as would seem doubly important, given that the local architectural style seems to be one story, even if it’s a one-story sprawling mansion.

Nope, the real estate agents who write these ads have chosen to not breathe a word about threats from the elements. You might think the beach in Miami didn’t even exist. Most ads talk about local shopping, schools, and golf courses. Oh, but there was one that advertised, “All windows and doors hurricane proof. ”  So, at least one home seller in Miami is getting real! And getting out of town, I’ll bet.

Why Non-Parent Homebuyers Should Care About School Quality

Who’s thinking about school in the middle of summer, right? Well, I went to a neighborhood party yesterday, which was heavily attended by parents of toddlers, and the primary topic of conversation was where they were going to send the little ones when they grew up.

Our local schools, for the most part, are lousy. In fact, I probably wouldn’t live here if they weren’t. Low school quality is the very factor that allowed us, along with various other childless buyers, to afford a place here. So part of me was inclined to yawn and turn away at this topic of conversation.

Yet I was also watching the laws of supply and demand in action. If school quality doesn’t improve around here, or the parents don’t feel able to shell out for private school, many of these friendly neighbors whom I’m just getting to know will be moving in a few years.

If and when they do move, local “for-sale” inventory will rise – and other buyers will have to go through the “will we have kids, can we deal with the local schools, and if not, is it worth buying now only to have to move in a few years?” analysis.

For many, the answer will be no. For me, that will mean less neighborhood stability, and less home appreciation for my own abode.

If you’re a homebuyer currently scouting out the market, it really is worth having a look at how your local schools are rated, whether or not you have, or plan to have children. Fortunately, there are lots of great research sources for that, such as City-Data and GreatSchools.org.

Luxury Homes Will Soon Be Less of a Bargain

House cornerOne of the fun things for buyers during the depressed real estate market was seeing almost unbelievably low prices on luxury homes.  (Who wanted to buy a castle with everyone in fear of a job loss or investment tumble next week?) Even if we couldn’t actually afford a mansion in the hills, we could peruse the listings without feeling like such a fantasy was completely and utterly crazy.

Unfortunately, buying a luxury home is swiftly returning to the realm of never-never land for the average buyer. According to the April, 2014 edition of Money magazine (“The sunny outlook for housing in upscale neighborhoods“), sales volume for expensive houses is on the upswing, the time it takes to sell is on the downswing in many parts of the U.S., and these factors will soon add up to price increases for high-end homes.

Sigh. You might console yourself by remembering that, even if you could afford the purchase price on a luxury home, other costs such as insurance, repairs, and of course home security might completely break your bank. See Nolo’s article, “How Much Does Owning a Home Really Cost?” for more on that.

San Fran Home Sells for $1.405 Million Over Asking?!

Paper house attached to yellow blank price tag on blue backgroundSeriously. You read that right. That bid brought the total price of the recently sold two-bedroom, 2.5 bathroom home on Gough Street to $3.4 million

I wonder whether there’s some other bidder out there who offered a mere $1.309 million over asking, and is now kicking himself for not having gone just a little higher? (Though what’s “little” in this context is relative, with every .1 million signifying a cool $100 thousand.)

While the article discussing this house on Curbed didn’t mention it, a price hike like this is a sure sign that a bidding war took place. (Either that, or some seriously misguided buyer thought a bidding war was inevitable or had money to burn.)

How, you might ask, did the buyer decide to go quite that high? Real estate bids are traditionally confidential. This isn’t like an auction, where everyone gets to hear the other offers and then raise their own bid by a bit.

But the buyers’ agents are allowed to, and traditionally do, ask the seller’s agent how many people have indicated that they plan to submit a bid. If it’s only one or two, the savvy buyer will probably bid something over asking, but not go crazy.

In the Bay Area, however, with a tech boom and a housing shortage, it’s not uncommon to hear of ten or more prospective buyers bidding on the same house. When up against that sort of competition, with only one chance to make your offer stand out, your best bet is to put an eye-popping dollar figure on it.

If you’re new to the real estate world, let this serve as an introduction to the fact that home list prices mean almost nothing until you understand what’s happening in the market where the house is located. Wouldn’t you think that a two-bedroom home listed for over $2 million wouldn’t require anyone to bid a penny more? But that’s the Bay Area market. Yours may differ! See Nolo’s article, “Home List Price: What Is a House Worth?” for a deeper discussion of this issue.