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 Quick Skim
Clients say the darndest things! If you haven’t had your fill of comical questions from customers, you’ll get it by paging through this light-hearted book by syndicated real estate columnist Edith Lank. The book is a compilation of hundreds of letters from inquisitive readers. Questions come from consumers who are hungry for more information on all sorts of buying and selling issues, from the particulars of burying a St. Joseph statue in the yard to resolving family dramas. Even Lank is sometimes left speechless.
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From the Book: 7 Questions That Make You Wonder
These are some of the actual questions Lank has received from her readers and are included in her book I’ve Heard It All and So Should You (Dearborn Financial Publishing, 2007):
1. I would appreciate any information on Fanny Mae about buying homes and property. Also if she has any books out.
2. Stamped return envelope enclosed. Please send us all information on how to sell our home without using a realator. I think you call it being a FSOB.
3. I went to a free seminar on real estate and it seems like it would be the best thing for me to do. I don’t have the money for the rest of the course but they said they could arrange a loan for me to borrow it. Do you think this would be a good investment?
4. Upon selling a co-op or condo, would it be mandatory to divulge the fact that, at times, there
are leaks from the upper floor?
5. Could you please tell me what a cotenancy agreement is and how to set it up. Also could you tell me what the age range for real estate investors are? (submitted by a 13 year old)
6. Does St. Joseph work for condo owners? If so, can I bury him on common property or does he go in a flowerpot in my unit? If I do use the courtyard, is he buried in the back of my unit or the whole complex? If so, do I need board approval?
7. Please advise me on what would happen if I didn’t pay my property taxes. Also, how do I become tax exempt?
Sneak Peek
"When I started the column I still had my broker’s license, which I gave up soon afterwards to avoid any conflict of interest. My husband was a REALTOR® though, and I wondered what I’d do when letters came in complaining about real estate agents. Would I publish them? Could I give impartial advice? Pleasant surprise — it turns out I almost never receive complaints about brokers. They show up at the rate of perhaps one a year. More common are letters that simply don’t understand how agency works."
About the Author
Edith Lank, who some refer to as the “Dear Abby” of real estate, has written about real estate for 20 years. Her nationally syndicated advice real estate column appears in more than 100 newspapers and Web sites. She has written four other books, including The Homebuyers Kit and The Homeseller’s Kit, both from Dearborn Financial Publishing.
Tune in on May 7 when Lank responds to readers’ questions.
 Here are today's top selling real estate books on Amazon.com:
1. The Pre-Foreclosure Property Investor’s Kit: How to Make Money Buying Distressed Real Estate — Before the Public Auction, by Thomas Lucier
2. FLIP: How to Find, Fix, and Sell Houses for Profit, by Rick Villani and Clay Davis
3. Rich Dad’s Advisors: The ABC’s of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss, by Ken McElroy
4. How to Sell Your Home in 5 Days: Third Edition, by Bill G. Effros
5. Find It, Fix It, Flip It!: Make Millions in Real Estate — One House at a Time, by Michael Corbett
6. Home Buying for Dummies, 3rd Edition, by Eric Tyson and Ray Brown
7. Flipping Houses for Dummies, by Ralph R. Roberts and Joe Kraynak
8. Rich Dad’s Real Estate Advantages: Tax and Legal Secrets of Successful Real Estate Investors, by Sharon L. Lechter and Garrett Sutton
9. Real Estate Investing for Dummies, by Eric Tyson and Robert S. Griswold
10. Investing for Dummies, 4th Edition, by Eric Tyson
Richard Courtney, author of Buyers Are Liars & Sellers Are Too! (Fireside Books/Simon & Schuster, 2006), responds to your questions about the half-truths and common misperceptions among buyers and sellers.
Q: Your book title uses the word "liars," which is pretty harsh. Do you really think buyers and sellers are liars?
A: The title Buyers Are Liars & Sellers Are Too! is tongue in cheek and a catchy title. However, the reason I wrote the book was after observing buyers and sellers alike bringing unnecessary anxiety into real estate transactions by over strategizing. They each thought the other to be dishonest. At that point I explained the languages of buyerese and sellerese — which is not to be mistaken for lying.
Q: Here’s a scenario: I listen to my buyers' needs, make a list of their must-haves, and then they turn around and buy (from someone else) a home that is so totally different. Any theories on what I’m doing wrong, and how I could have kept their business?
A: Hence the theory that “buyers are liars”. Buyers always think they know what they want, but seldom actually know what they want. You have to learn to translate buyerese, the language of buyers.
Q: What do you think is the biggest lie that buyers most often tell their real estate agents?
A: Again, I do not think buyers lie, I think they are not equipped with enough knowledge to make decisions — although they're quite certain they are. They will learn that they must compromise and prioritize. A buyer that is seeking a tricked out kitchen, an over-the-top master bedroom, a huge lot, and a three car garage may end up purchasing a home with only a two car garage or decent kitchen, but a great bedroom.
Q: What about sellers? What is the biggest lie they tell?
A: Sellers are the people time forgot, and they forget time. “How old is the HVAC?” I ask. They respond, “Why it’s brand new.” “Oh really," I inquire. “And how old is brand new?” They think a minute and tell me that they bought it the same year their daughter needed new braces and it was quite a financial burden. That begs the question: “How old is your daughter?” They respond that she just graduated from medical school. So, the "brand new" HVAC is 14 years old.
Q: How do you deal with consumers who are concerned about the housing market right now? How do you convince them that what they’re hearing in the media may not be a reality in their local market?
A: I refer them to David Lereah’s book All Real Estate is Local. For the first time in the nation’s history, there are markets with 180 degrees difference. Rates are low, job growth is rising, the stock market is sound, yet some markets are down and others very stable. I rely on statistics provided through the local associations for data to help guide buyers through their concerns.
Q: Was it hard to write a book from four different perspectives: buyer, seller, and the buyer's and seller's agents? How did you make sure you told each story correctly?
A: By the time the current version of the book was written, I had been personally involved in more than 1,000 transactions personally and managed hundreds of agents through thousands of their transactions. While each deal is different, the same issues seem to rear their ugly heads over and over. I tried to highlight the recurring issues, not the unique situations.
Q: How do you deal with FSBOs who think they don’t need an agent to sell their house?
A: FSBOs — or For Sale By Ogre — drive me crazy. As the old adage goes, anyone that represents themselves in a lawsuit has a bad attorney — so it goes for FSBOs. The first step I take is to neutralize the seller. There is usually an underlying scorn for real estate professionals in the mix, so I attempt to calm them early and let them know I anticipate this being a smooth, equitable, professional transaction.
Q: How can you persuade sellers to take a good offer when they get it, even if it comes in under the asking price — especially, as you point out in your book, considering that sellers usually assume that the first offer is just the start of negotiations?
A: On taking the first offer, I generally refer to the notes I take during the listing appointment when we discussed the pricing of the house and then I advise on any shifts in the market since that meeting. If the offer is too low, I do not advise them to take it, but I try to clear the offer of extraneous, unnecessary conditions and get it to the point where both sides are dealing with money. My secret weapon is that I give buyers and sellers a copy of the book before the journey so that they are equipped to meet the challenges that will befall them.
 Quick Skim
As emotions kick in, buyers and sellers often turn into their own worst enemy. Where does that leave you? In the middle, trying to sort out the half-truths and translate what your clients really mean. Veteran real estate broker Richard Courtney helps decode a language he calls “Buyerese” in his new book. Using a humorous approach, he uncovers the big “lies” of buying and selling a home from four perspectives: the buyer, the seller, and the real estate agents who represent each of them.
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Tips from the Book: 5 Buyer and Seller Misperceptions
In Buyers Are Liars & Sellers Are Too! (Fireside Books/Simon & Schuster, 2006), Courtney points out some of the following popular misperceptions of clients and offers suggestions on how you can get them closer to the truth:
1. Ma and pa approval. Warning about meeting the parents: They can spot a nail hole from 70 feet away through two sets of windows, Courtney writes. When working with first-time home buyers particularly, expect the parents to meddle, to be overly protective, and to question how in the world their little boy or girl will be able to afford such an expense! For a positive working relationship, correct parents gently when they’re wrong, reinforce their ideas when accurate, and thank them for their insight in areas you may have overlooked.
2. Popped nail — the house is falling! Don’t let home inspections scare your clients. Some home inspectors will note every nail pop, paint chip, settlement crack, and squeaky faucet. Encourage clients to educate themselves on what’s major and what’s not. After all, most repairs that inspectors consider necessary are inexpensive and easily fixable. When the inspection is done, work with the sellers and their agent to decide who will pay for the repairs.
3. The dream house, without compromise. Courtney once worked with a couple who adamantly wanted a ranch home, but not on a corner lot, and definitely not near a street with a
yellow line (which they equated as too busy). What’d they buy? The house they claimed they didn’t want. Many buyers haven’t viewed enough houses to be able to know exactly what they want, Courtney says. Point out benefits and features of a home or neighborhood, any deficiencies you know of, and reasonable expectations and costs of the features your clients want, backed up with comparable sales information.
4. The first offer is always too low. Contrary to popular belief among sellers, most buyers do not purposely lowball them with the first offer to start negotiations. Sellers shouldn’t automatically reject or counteroffer, because they may miss out. Clients should be encouraged to take a good offer, whenever they get it.
5. Foreclosures are great deals. Many buyers may be attracted to foreclosed properties, believing they’re underpriced and represent a good deal. But Courtney cautions: The reason the previous owners allowed the foreclosure to happen is because they couldn’t sell the property. Courtney recommends practitioners provide a CMA and explain the value of the property to any prospective buyers. As for the seller agent, Courtney suggests not marketing the house as a foreclosed property.
Sneak Peek
“Most homeowners put great stock in that old adage, ‘There’s a sucker born every minute,’ and most real estate agents seem to have a big ‘S’ magically tattooed on their foreheads so that it appears only at listing presentations. No matter how competent or experienced the agent, the seller is determined to bamboozle him. Caution, comparable-sales information, current marketing conditions, and reason are thrown to the wind. These potential sellers have decided for some reason to move, even though they are leaving the best house ever designed and constructed. The Taj Mahal pales in comparison with this place, so chock-full of amenities and representing a value so great that to sell at true market value (plus about 25 percent) entails a sacrifice assuring the sellers of sainthood. Many sellers seem to believe this. That’s when it really gets scary.”
About the Author
Richard Courtney, CRB, CRS®, ABR®, is a broker at Fridrich & Clark Realty LLC and has more than two decades of experience in the real estate business. He is the 2007 president of the Greater Nashville Association of REALTORS® and a member of the NATIONAL ASSOCIATION OF REALTORS’® Board of Directors.
Courtney will respond to submitted questions on Monday, April 23.
Sid Davis, author of Home Makeovers That Sell (AMACOM, 2007), responds to your staging questions.
Q: What do you suggest [in terms of staging] for a house that is vacant?
A: If a vacant home is freshly painted, clean, and smells good it should sell. Buyers also won’t have a problem imagining where their stuff is going to go, and a quicker closing can be a plus. I don’t think it's necessary to leave furniture or move some in to make a home look “lived in.” Many times I’ve had a home sell soon after the owners moved out and had the home professionally cleaned. Personally, I would rather have a vacant home listing than one with owners cluttering it up.
Q: While I agree with all your suggestions, there are instances where the home owner cannot afford to make improvements or repairs. What is your suggestion for this instance?
A: Can a home owner afford not to do the repairs? If a home won’t appraise because of problems or the owner is uncooperative, I would rather walk away from the listing. If there’s equity, the owner should be able to find a short terms loan. Government agencies, church groups, and other sources often have programs to help people fix up their homes who can’t qualify for financing. You may have to do some digging, but they’re out there.
Q: Besides the two obvious things — decluttering and cleaning — what do you think is the single most important thing to do before putting a home on the market?
A: Painting is a good third. It’s hard to resist a freshly painted home. Smells good too...
Q: What are your thoughts on professional staging services? I am doing research on the viability of staging services with the desire to start my own consulting business for staging.
A: It's obvious that most homes on the market can benefit from staging. The issue is not does staging work, but selling the concept to home sellers and making money doing it. This is where most stagers I know run into problems. They don't know how to market their services and create cash flow. You may consider working with a REALTOR® and adding your fee for a package deal. It's the marketing that will be your biggest challenge. Good luck, your skills are certainly needed by sellers and agents.
Q: Do you think that using feng shui to rearrange rooms and decorate helps a home sell faster?
A: Absolutely, a great book on this is Sell Your Home Faster With Feng Shui (Dragon Chi Publications, 2001) by Holly Ziegler. If you have a lot of Asian buyers in your area, you’ll want to incorporate Feng Shui principals in putting a home in showing condition.
Q: Do you have any suggestions for handling potential problems that might result from having home inspections prior to placing a listing on the market? For example, how about if a buyer thinks the seller selected a home inspector who didn’t catch everything and the buyer believes it should really be them selecting their own inspector and being present during the inspection.
A: I’ve never had a problem with this. Buyers are always impressed that the owners got an inspection and fixed any problems upfront. When you take the inspection’s problem list and document that you’ve done the repairs — with receipts and work orders — that's what makes it a sales tool. The older the home, the better this works. If a buyer wants to hire their own inspector, fine. Two professional inspections may differ slightly, but usually not significantly. I always encourage buyers to get a second opinion if they feel uncomfortable with the seller’s inspection.
Q: What are some affordable staging ideas to improve the kitchen and living room?
A: Declutter is No. 1 and the cheapest; a good cleaning is another. Other low-cost items are refinish or paint the cabinets a gloss white and add new hardware. Appliances that are color miss-matched can be professionally painted to match. Floors in the kitchen and entryway can be tiled economically, especially if you do-it-yourself. Home Depot and other home centers often give free classes on how to tile. If the carpet is past cleaning, replacing with wood or laminate is a good way to go. And of course, a good paint job helps: flat in the living room, semi-gloss in the kitchen.
 Quick Skim
Too many sellers let thousands of dollars slip through their fingers by failing to get their house in tip-top shape, author Sid Davis writes. In his latest book, he offers staging tips, cleaning worksheets, and fix-it checklists (but not many photos) to help sellers spruce up every room of their home — including the garage. Beyond the expected advice, Davis doles out helpful pointers on CMAs, replacing appliances, and tax benefits of moving up.
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Tips from the Book: 5 Ways to Sell a Home Faster
In Home Makeovers That Sell (AMACOM, 2007), Davis offers these tips for beautifying a home before it hits the market:
1. Don’t sell “as is.” Selling a home without doing some prep work before is the easy way out, and you'll likely only attract bargain hunters. Accept the fact that painting, cleaning, decluttering, and various fix-its will be needed before you sell.
2. Get a storage unit. Excess furniture, such as a king-size bed squeezed in a guest bedroom, will make rooms look smaller. Rooms can double in size simply by getting rid of the big pieces. Also prime for off-site storage: knickknacks, photos, trophies, and everything else that will distract buyers from seeing themselves in the home.
3. Hire a home inspector upfront. Before putting the home on the market, fix any problems the inspector finds. You’ll eliminate surprises that can hold up a sale. An added bonus: A clean
inspection report is an excellent marketing tool.
4. Fuel their imagination. Paint rooms in neutral colors or use white paint with a tint of brown or grey. Buyers will be able to envision their own decorating touches and colors in the room. Flat paints tend to hide small imperfections and semi gloss paints work well for kitchens and bathrooms.
5. Know what adds value to the home. Improvements that generally add value to your home include landscaping, decks, floor upgrades, security system, and extra bathrooms or bedrooms. On the other hand, repairing water leaks, damaged walls, or other maintenance tasks don’t typically boost value — they’re expected as part of the sale. (For more guidance, check out the most recent Cost vs. Value Report.)
Sneak Peek
“Clutter is to selling a home like obesity is to a Miss America contestant. It isn’t going to help your cause if buyers looking at your home are turned off by piles of clutter. Remember, people buy on emotion. They’re looking for a house that evokes hearth and home emotions. For that to happen, buyers must see themselves living in and enjoying the home. These are the people who pay full price and don’t lowball your price.”
About the Author
Sid Davis is broker-owner of Sid Davis & Associates in Farmington, Utah. He has two other real estate books: A Survival Guide for Selling a Home (AMACOM, 2005) and A Survival Guide for Buying a Home (AMACOM, 2004).
Sid Davis will respond on Monday, April 16, to the questions you have submitted.
 Quick Skim
Scrutinize national housing trends all you want, but influences in your local market are really what determine whether home values rise or fall, NAR Chief Economist David Lereah says in his latest book (Currency/Doubleday, 2007). He delves into an array of factors that can impact local markets — from success of sports teams to what Oprah says about the city — and provides lists and rankings of metro areas that can help you evaluate an area’s DNA.
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Tips from the Book: 5 Indicators of a Healthy Local Market
The key to finding a good real estate investment is to figure out what’s affecting supply and demand. But the factors aren’t always as obvious as you might think, Lereah says in his book.
1. Youth drive. A community that has a low average age for the population, such as a median age of 35, is a likely indicator of growth. After all, a younger population is more likely to have children, experience more demand for housing (trade-up buying), and an overall increase in the population, when compared to an older community.
2. Shopping choices. Plans for a new mall or supermarket can greatly increase the draw to certain neighborhoods. In turn, stores or businesses that are closing may be indicative of a sagging market. Gather information by ZIP code of new business start-ups at the U.S. Census Bureau’s Zip Code Business Patterns.
3. Investors stake. Too many investors flocking to a market can cause housing prices to dive if
a good market turns bad. Investors can add risk to a market, since they tend to be the first to sell when a market slows.
4. Politics. Never underestimate the power of local government. Political decisions — such as plans to revitalize the downtown or raise property taxes — can jump-start or sink a housing market. Look into zoning restriction changes that can affect residential and commercial building activity.
5. Media. City ranking lists widely reported by the media can influence where people choose to live, too. These lists may include everything from the “best places to live” to “most affordable.” For example, if your city comes up No. 1 for the highest crime rate (like Sumter, S.C., did on the 2006 metro crime rankings), that will likely scare some potential buyers off. However, if your city averages the lowest crime rate (such as Bangor, Maine, in the 2006 rankings), more people will be attracted to the area.
Sneak Peek
“All real estate is local. I have found that home buyers and real estate investors who ignore these five potent words eventually make costly and avoidable mistakes. They either purchase real estate in the wrong location … or they purchase property too late. There are always buying opportunities. You just have to keep your focus on local activity in the regions and neighborhoods in which you are interested in buying.”
About the Author
David Lereah, senior vice president and chief economist for the NATIONAL ASSOCIATION OF REALTORS®, is often the media’s go-to person for talking about the state of the housing market. He’s also the author of Are You Missing the Real Estate Boom? (Doubleday, 2005).
Read a Q&A with David Lereah about this book.
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