Choosing the Right Real Estate Agent

Almost everyone knows a real estate agent.  However, all agents are not created equally.  This is easy to tell when you compare an agent’s experience to others, compare how long they have been in the business, and most importantly how many closed real property transactions they have to their name.  Moreover, a seasoned real estate agent will provide a list of references – probably with dozens, if not hundreds, of names, phone numbers, and contact information readily available for prospective clients to contact.  It is critical to check references to find out objectively how well the agent performed, to find out how accurate the agent was in their projections, costs, and estimated selling price, and to find out if the agent did what they said they would do.  An agent with a multitude of references and hundreds of closed transactions is typically going to be more competent, more prepared, and more likely to achieve the results you desire and deserve.

If you’ve never worked with a real estate agent before or you would like to hire a new one, you now know that not all real estate agents are the same.  In addition to finding an agent with experience you need someone with whom you can communicate, that you can rely on to address your needs, and that has the expertise to get the job done.  Don’t take a chance on selecting the wrong agent for your needs, even if that agent is a family member, friend, or friend of friend.  It is paramount that you utilize the services of an experienced, qualified agent from the first step forward all the way through and after close of escrow.  Here are some tips that can help you to choose an agent that is ideal for you!

1. Ask for References

When you think you have found a great real estate agent, ask them for references. There is a very good chance your family, friends, and even people you work with have been involved with a real estate agent and they can share information. They can tell you all the details of their experience with their Realtor®, including the good, the bad and the ugly.  A top-shelf agent will provide you with a list of references which will include dozens, if not hundreds of their clients who are willing to endorse their agent.

2. Ask for Experience - Like Closed Transactions

Every seasoned real estate agent can provide you with a list of transactions they have worked on and closed in the last several years (most multiple listing services started collecting this data years ago).  Multiple (hundreds) closed transactions are very important for several reasons.  First, every transaction is different and with each one comes issues that have not occurred before.  An agent with hundreds of closed transactions with have crossed many bridges that inexperienced agents have not.  Second, with every nuance and issue comes an emotional roller-coaster for the principals.  Again a top-notched agent will be able to navigate the emotions for their clients and help smooth over the issues and get resolution quicker and more effectively than an inexperienced agent.  Finally, an experienced agent will not allow another agent to push them around during a transaction.  This is very common when an experience agent recognizes they are paired with an inexperienced agent on the other side.  It is similar to have a good attorney on one side versus a poor attorney on the other.

A top-shelf experienced agent will provide you with a list of closed transactions (probably in the hundreds), they can provide you with a list of work they have performed in the areas in which you are interested, and they should provide this information at the drop of a hat.  If they can't this should raise questions in your mind about their experience.

3. Face-to-Face Interview 

It is critical that you meet your agent face-to-face to make sure you will get along with them which will help things move along smoothly.  Prepare for your meeting with a compilation of carefully crafted questions to ask.  Don’t be shy when it comes to getting information from the agent – they are the expert and should be able to answer most if not all of your questions without too much trouble.  You may want to conduct this interview at their place of business so you can see their surroundings or at your home so they can see their prospective listing.  In either situation here are some questions to consider.

ü How long they have been in the real estate business?

ü How many closed transactions have they completed?

ü How will they market your home?

ü What suggestions do they have to improve marketability of your home?

ü What can you expect from their service?

ü How many clients are they currently working with?

ü Why are they the best choice for you?

Be mindful of their communication style. You want someone you feel you can communicate with openly. Trust your gut to know if you can work with someone.

Final Outcome: Make a Decision

After you have done the interview, ask yourself if you are comfortable with this particular real estate agent.  Communication is a key factor for making the relationship work.  With that in mind, eliminate any potential agent that you didn’t feel comfortable around or that you didn’t think understood your needs.  Contact and hire the real estate agent with the most experience.  Contact and hire the agent that gives you confidence, that gives you the feeling that they will get things in motion, and helps you achieve your goals.

SHELLY ROBERSON

Alain Pinel Realtors, Palo Alto, CA

23+ Years Experience - 600+ Closed Transactions

http://twitter.com/sroberson2

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sroberson@apr.com

1-650-464-3797

Menlo Park, Redwood City & Woodside Sued by PG&E to Replace 80 Year Old Gas Line

In an attempt to replace three miles of an old gas line and hopefully prevent another catastrophic explosion like the one in San Bruno PG&E has filed three separate lawsuits against the cities of Menlo Park, Redwood City and Woodside so that they would be able to access real estate owned by both public entities and private owners.  The line at issue, “Line #109,” was installed in the 1930's and has been ordered replaced by the California Public Utilities Commission.

Because significant real estate development has occurred over sections of the old pipe line over the last eighty plus years the State of California statutorily has granted PG&E the right to exercise the power of eminent domain.   PG&E states in its lawsuit that it has made fair-market value offers to the property owners but has received limited response and must proceed with expediency.

The locations of the proposed replacement are sections of real estate near Interstate I-280 north of Sand Hill Road, near Woodside Road to Farm Hill Boulevard, and near Eden Bower Lane to Wilmington Way.  Sections of Sharon Heights Golf and Country Club are also affected by the easement PG&E is requesting.

The proposed replacement pipeline is a 24” high quality steel gas line with automated valves that can be operated remotely.  This hi-tech gas line will also be equipped with internal monitoring and inspection tools/gauges.

Assuming PG&E is successful in their lawsuits seeking easements to install the new gas line the existing property owners will be able to use and access their property, but will not be allowed to construct and structures, plant trees, or do anything that would disrupt the operation of the gas line.

SHELLY ROBERSON

Alain Pinel Realtors, Palo Alto, CA

23+ Years Experience - 600+ Closed Transactions

http://twitter.com/sroberson2

http://www.facebook.com/ShellyRobersonAPR

sroberson@apr.com

1-650-464-3797

Proposed Four-Story Mixed Use Building on El Camino in Palo Alto to be heard

The Palo Alto Architectural Review Board will begin reviewing 2500 El Camino Real, which is a formal request by Stanford Real Estate for a proposed four-story building with approximately 70 residential units and about 6,981 square feet of commercial space.  The residential units are proposed to be much needed below-market-rate (BMR) housing.  The meeting will begin at 8:30 a.m. on Thursday, April 3, in the Council Chambers at Palo Alto City Hall (250 Hamilton Avenue, Palo Alto, CA).

Menlo Park Hiring Expert to Research Initiative to Revamp Downtown Plan

The Menlo Park City Council has actually authorized investing up to $150,000 on a consultant to examine the brand-new effort proposed by locals that would significantly change the city's downtown/El Camino particular strategy.  The strategy took 5 years to develop, with considerable community involvement, and cost $1.7 million.  A group of Menlo Park citizens is presently attempting to alter that strategy and require voter approval for large project.

After Menlo Park authorized the specific strategy in 2012, Stanford University suggested developing a mixed-use complex on eight acres along El Camino Real.  Although the strategy falls within the parameters of the city's particular plan, plenty of residents oppose it and have actually formed a group which call themselves "Save Menlo."

‘Save Menlo’ is now gathering signatures of registered voters to certify a ballot measure that would change the downtown plan.  ‘Save Menlo’ needs 1,780 signatures of voters to certify. If approved as Save Menlo is proposed, the effort would dramatically shrink the size of permitted projects, and require voter approval on large projects, just like the Stanford development.

The council wants their expert to examine the Save Menlo campaign and contrast it to the city’s plan. The city will use the expert's report as a basis for discussion at a public conference.

Off-Market Listings Only Reduce Profits for Home Sellers

Off-market, private, or pocket listings are becoming more and more commonplace as sellers are somehow being persuaded to keep their properties off of the Multiple Listing Service during this hot real estate.  Generally, they are being told that by keeping their property listing ‘private’ their privacy will not be invaded by troops of public gawkers traipsing through their homes, and that they will not have to hassle with signs, lock-boxes, and agents showing their homes, etc.  Whatever the rationale that is being sold to sellers it is unfortunate because they are actually unknowingly leaving large percentages of potential profits on the table.

In the real property market, today's victims of secret or private sales are homeowners that are letting their property be marketed at least 10% under real market value.  Dishonest brokers/agents who are playing coy first gain the sellers' confidence then encourage them that it would be most effective to keep their property off the Multiple List Service ("MLS"); to maintain personal privacy and stay away from potential fraud; and limit the inconvenience that comes with marketing one's home like signage, broker tours, lock-boxes, etc.

The claim that some brokers and agents are using to convince sellers to have a “private” or “pocket” listing/sale is to guarantee buyers to their clients. However, in a lot of instances those guaranteed buyers are coming from the broker’s and agent’s own offices or circles of close net friends which dramatically reduces exposure to the marketplace, but allows for the brokers and agents to possibly double-end the transaction, or “keep the whole deal in the office.”

What they also fail to tell unsuspecting sellers is that exposing the property on the MLS places it in front of over 14,500 local networked broker and agent members, all of whom then have the possibility to work with the property.  Limiting exposure to the MLS is by definition limiting the marketability of the property.  And coincidentally these “private” or “pocket” listings are common when the real estate market heats up and there is limited inventory.

It is estimated that in Santa Clara county residential properties on the MLS sold for 13% more than “private” or "pocket" or “off-market” listings in 2012.

It is a violation of a listing broker's fiduciary duty to the seller to keep the home off the MLS unless the homeowner, after being fully and faithfully informed, has a legitimate reason for not marketing the property to all brokers and agents in the MLS.  It is always in a seller's best interest to have a massive advertising of a home, which encourages and promotes bidding wars and greater sales prices. Sellers who are convinced to have an “off-market” listing probably do not recognize the concomitant advantages of placing their home on the MLS, so they acquiesce and go along with their broker or agent’s recommendation based on guarantees from their broker/agent that they will get either equally as good a sale price by doing so; all without the hassles of signs, tours, brochures, lock-boxes, etc.

Broker and agents have the duty to exercise care, integrity, fair-dealing, and loyalty for their customers.  This task consists of performing their best possible acts and conduct to acquire the greatest sales price for the home.  Recommending “private” or “pocket” listings is typically NOT in a seller’s best interests.  There are however exceptions or rare occasions where these type sales make sense for sellers, but they are extremely rare; not 10-15% of the active marketplace.

It is estimated that as the local real estate market began warming back up, exclusions from the MLS raised considerably, almost doubling for the first quarter of 2013 as compared to the same timeframe in previous years.  In 2012, homes not put on the MLS amounted to approximately 15 % of the market or $340 billion in sales volume.  Incredibly, at a conservative 10 % decrease in fair market value (due to private or off-market listings), that would equate to $340 million in potential lost seller net proceeds – all “cloaked” in the name of privacy and/or hassle free transactions.

The MLS was designed to subject properties to maximum exposure leading to a maximum sales price for the specific timeframe.  Leaving a property off of the MLS dramatically limits exposure – doing exactly opposite of what a seller should be doing.

The brokers and agents who recommend “private” or “pocket” or “off-market” listings should be held to answer with specific reasons and factual details for this recommendation and be asked to provide verifiable proof that their recommendation will lead to a maximum sales price for the seller.  The bottom line is that a broker or agent will never be able to prove that limiting exposure of a home by preventing the listing on the MLS will maximize the sales price.

Shelly Roberson

Alain Pinel Realtors, Palo Alto, CA

23 Years Experience, 600+ Closed Transactions

www.shellyroberson.com

sroberson@apr.com

1-650-464-3797

Staging a Listing is a ‘Must’ in Any Marketplace

Staging has entered into the ‘standard of practice’ in preparing a home to place on the real estate market.  Making a great first impression, whether via photos on the web, or as the purchaser walks into the front door, has never been much more essential when marketing a property.  In fact it is tantamount to having a listing look it’s best for the marketplace.

Brokers and agents today commonly suggest to their seller clients to embark on some degree of staging, ranging from a detailed cleaning and de-cluttering, to rearranging furniture including accessories, or in some cases, an interior redesign or renovation, or even renting out furniture to load a vacant residence.  The ideal level of staging relies on the house's perceived problem (if any) and the seller's spending plan, and depending upon the level of staging and dimension of the residence, could set a seller back $2,000 to $20,000 depending on how many rooms are being addressed.

Homeowners should be amenable to the process and take to heart the recommendations of a seasoned real estate agent along with a quality stager, who both have a keen sense of ways to present a home to its finest advantage.  Yet even with organizing largely accepted as an important component of marketing a home we do meet resistance once in a while from sellers who love their stuff, their furnishings, and their home the way it is.

Some sellers presume that, in a seller's market, such as the one we have now, with housing stock in such short supply staging isn't necessary.  Various other sellers diligently pay attention to brokers' and agents’ proposed repairs and abide by the stagers' proposals, but at the same time begin to really feel completely bewildered and question the necessity.   Occasionally homeowners are immune to staging given that they feel their residence is best as is, or they think they have the skills to make modifications on their own.  In each of these situations a seller should just let the professionals take over.  By way of an example would you go to a plumber to have your front yard landscaped?

Periodically a house shows really well without any staging at all, however even the most spotless beautiful home can take advantage of some tweaking to make certain the images standout on a computer or when a buyer walks through the front door for the first time.  A lot of homes benefit from an examination by an individual with an unbiased eye who could determine the weaknesses as viewed by potential customers.  These professionals have the expertise to boost the property's appearance in the most affordable and cost effective way.  And even though staging might seem like a huge effort, a lot of the work entails de-cluttering, which can also be valuable as an organizational exercise for the vacating seller.

The costs to properly stage a house in any market are justified, because for the bulk of properties it truly pays dividends.  It is estimated that staging normally elevates list prices by 2.5% to 6% (and frequently often times much more), which can total up to an added $25,000 to $60,000 for a $1,000,000 sale.  As a bonus, homes that are properly staged likewise tend to get into contract faster.

Staging is an investment of time and money for the seller, yet, as we have actually seen time and time again, it's an investment that pays dividends handsomely, most of the time in multiples of the investment spent.

Shelly Roberson

Alain Pinel Realtors, Palo Alto, CA

23 Years Experience, 600+ Closed Transactions

http://www.facebook.com/ShellyRobersonAPR

http://twitter.com/sroberson2

www.shellyroberson.com

sroberson@apr.com

1-650-464-3797

How to Choose the Right Neighborhood for You

Finding a good neighborhood to live in is probably more important as choosing the actual physical home. The neighborhood needs to be secure, fit your budget and your ideal lifestyle. Many people make the mistake of focusing primarily on the house and secondarily on the neighborhood while it should probably be the reverse. You can always remodel a home, you can almost always add-on or modify your home, but you can’t change a neighborhood, its characteristics, or the neighbors.

When purchasing a home you need to know that you are not only buying a place for you and your family to live in but you are investing in the neighborhood. So before getting started, ask yourself the following questions

ü Do I prefer a quiet street or an active one?

ü Do I need a view, or a certain orientation?

ü What do I like or dislike about my old neighborhood?

ü What is important to my family and me?

After you create a clear picture of the kind of neighborhood you want consider these tips and important factors to consider to help you find the right neighborhood:

Crime and safety- You need to ensure the neighborhood you choose is safe. Contact the local police and inquire about the area’s crime and safety information. Drive around and look for any tell tales signs of crime such as graffiti, abandoned homes or homes in disrepair. You can also research online about the neighborhood’s crime statistics.  Another important step is to walk around the neighborhood and talk to all the neighbors you can find.

Location- The ideal neighborhood should have amenities such as the grocery store, restaurants, cafes, hospitals, and recreational parks nearby. Many people prefer walking to the mall or their favorite restaurant in the neighborhood. Also, consider your individual needs; do you want a quite family oriented neighborhood or a hip urban area? If you have kids, you may want them to have potential playmates and so choosing a family friendly neighborhood might be right for you.

Transportation - Accessibility to highways is important, as well as a neighborhood that can be accessed using public transportation. It’s important to consider how easy it is to get to international access such as airports and how far you have to drive to get there. You should learn the traffic patterns as well, so that you know what to expect when traveling to and from work.

School district - Schools are among the best selling points of a neighborhood. Quite simply, the better the schools, the better the investment in a property with good resale value. Even if you don’t have school going kids, the quality of schools matters when looking at your home as an investment.  This is especially true when you go to re-sell the home.

Taxes and property values – Different counties and cities have varying property and local taxes. Research how much tax you will be required to pay within the coming years.

Ask your agent to tell you about the areas you are considering. They should be able to share added flavor about the neighborhoods for which you are interested.

If you do a little research, you should be able to find the ideal neighborhood to fit your needs, your lifestyle and your budget.

Questions

Let me know if you have questions. Don’t hesitate to contact me via email sroberson@apr.com, or cell phone 1-650-464-3797.

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