What is Wrong with Zillow?

So What is wrong with Zillow?

Zillow is wildly popular among home buyers and home sellers. It definitely has some good information to impart. So what is wrong with Zillow?

Zillow is in the business of making money. Yup thats it. They are wildy popular because they have huge advertising budgets. You find them because they spend millions of dollars to get found! They make their money selling your clicks and information to various real estate related folks like agents and mortgage brokers. They are not altruistic in providing you with information. They want your hits to their website and your information to make money.
Zillow’s information is misleading or inaccurate. Many of the homes they “advertise” are not readily available or available at all. Again, they just want you to go to their site. Their popular Zestimate is terribly inaccurate and unfortunately creates a false sense of value for home buyers and home sellers. The link brings you to an article where I did a cross-section of homes that sold in Tewksbury MA. The Zestimate’s were all over the place compared to the actual selling price of the home.
Zillow’s information is not up to date. In today’s fast-paced real estate market, sometimes it takes days for a listing to hit Zillow. In some cases, the house is already sold before you find out about it. To avoid this sign up to get daily alerts from your local real estate agent. A local agent’s home search will pull directly from the Massachusetts Multiple Listing Service regularly throughout the day.

________________________________________________________

What is Wrong with Zillow? has been provided by Kevin Vitali of EXIT Group One Real Estate. You can contact me at 978-360-0422 or email me at kevin@kevinvitali.com.

Buying a New Construction

Buying a brand new home certainly has it’s appeal for many home buyers…. everything brand spanking new and having things just the way you like.

But buying a new construction is very different than buying an existing home, especially if the house is not anywhere near its completion. The difficulty in purchasing a new construction is understanding what you are actually getting and pre-visualizing the finished space.

The following are some tips if you are considering buying a new constrution:

The Model Home- Many new homes are built in a neighborhood with other new homes going up at the same time. If that is the case many times a builder will put up a model home to showcase what they can do. Realize, many times the model home has upgraded finishes and will not be the product you get at the base starting price.

I can’t tell you how many times a prospective buyer gets excited when they see a model home and to learn what they viewed is not what they are getting at the advertised price.

Sometimes a sunroom or a third garage stall etc… are in a model home that will be an upgrade on the advertised price. Understand what you are actually receiving!

Understand the Floor Plan and Spec Sheet- Part of the marketing materials when you are buying a new home will be the floor plans, elevation plans and spec sheets. These will tell you exactly what you are getting. Make sure you fully understand the floor plans and the spec sheets. It will spell out the finishes and products you are receiving as well as any allowances.

Allowances- Often before a home is built a builder will give you allowances for kitchens, flooring and baths. The allowances are usually enough to complete the home, but it is probably not enough to finish the home the way you like. Again, if you are on a tight budget make sure the allowances are suitable for your tastes. Many times the allowances will not offer you a wide choice of finishes as the finishes will be on the lower end of what is available. Usually with the spec sheet the builder will provide a list of common upgrades and what each upgrade may cost.

Many inexperienced buyers of new construction can run up a wish list of items that can cost them a significant amount of money above and beyond the purchase price. Before getting involved in a contract make sure you are getting what you want and/or you can afford the upgrades you want.

Get everything in writing- If a builder promises you something as part of the standard package, make sure it is writing. If you are paying for an upgrade, make sure it is in writing. Make sure the contracts spell out what should happen if the home is not completed by its deadline or alternatively if your financing is not complete. Leave nothing to chance and hire a real estate attorney for the purchase and sale. In Massachusetts you do not need an attorney to represent you in a purchase and sale, but it is certainly a wise idea to retain one.

Hire a real estate agent– This is definitely the time to hire a buyer’s agent who knows what they are doing. A buyers agent experienced with new construction can help you navigate the buying of a new construction. As an agent I have helped purchase new construction as well as sold new construction for builders. I understand the process, the terms and where things can go wrong. You need to find an agent that is well versed in new construction.

Buying a new home is much like buying a new car. The builders will advertise the price of the “base” model to get you interested. Assume nothing. Do you research and read all of the fine printso you may understand what you are actually getting. Leave nothing to chance, if it is not spelled out get it in writing.

This article, Buying a New Construction, has been written by Kevin Vitali of EXIT Group One Real Estate. Whether you are looking to buy or sell I have the experience to help.

What are the 50 Safest Towns in Massachusetts

Safewise an authority on home security news has listed the top 50 Safest Towns in Massachusetts. Note that towns with a population of less than 8,000 were not used in this list, but you can read about the criteria Safewise used to pick the towns to hit there 50 safest towns list.

Remember, when buying real estate, location is everything! Obviously safe is one of the top criteria for may home buyers when choosing a community. There certainly are some affordable towns on the list but many of the towns are the more expensive towns that are available in Massachusetts to make a home purchase. Towns in my coverage area include Andover, Reading, North Reading, and Georgetown.

http://www.safewise.com/blog/safest-cities-massachusetts-2015/

What you need to know about Zillow, Trulia, etc…

So I received a call from a customer of mine all excited about a condo he wanted to see. Its a great condo. No problem there. Went to look at it. He loved it. Problem. Zillow reported a condo fee of $48 a month. In actuality it is almost $600 a month, putting it just outside what my customer can afford. So what do you need about Zillow, Trulia, etc…. ?

This week I have received 5 phone calls from potential buyers or customers that I am working with on the fringe. They were all interested in properties they found on Zillow or Trulia. The problem of them they were not for sale or had accepted offers. It creates a whole lot of work and misunderstanding for buyers.

A Little Test Comparing Zillow to the Massachusetts MLS

I decided to run a little comparison. I got onto Zillow and checked the condos for sale in Tewksbury MA. So first let me say this is where a lot of people go wrong and that is understanding the tool they are using. I knocked out all the pre-foreclosure and foreclosures that aren’t available for sale. Zillow showed 5 condos for sale. One was a duplicate so it showed 4 actual condominium units for sale in Tewksbury MA.

I then double checked it with the actual Massachusetts MLS. It showed there are currently 7 units available Zillow was not actually showing all the inventory that is available, only showing 57% of the units actually for sale.

Zillow only had a 57% accuracy of homes actually for sale!

What Do You Need to Know About Zillow and other Real Estate Aggregates?

They pull there information from a variety of sources. How they pull their data is effects the accuracy and value of their information. They pull from tax records, other real estate sites, old listings of the home and some times from the MLS. The most reliable source is the MLS in your area. The information is current and verified by an agent and the owner.
Many of the houses shown are not for sale. Many of the homes that they show are not even currently for sale or have been sold. They show homes that are in pre-foreclosure or have been foreclosed upon. That does not mean they are for sale. They show homes as available that have recently sold or been put under agreement. Yes, it is confusing, but some of it can be avoided by understanding the tool you are using.
These sites are not altruistic because they are a third party site and they provide you with free information. They want to show as much data and homes as possible so you go there and you think they are the authority. What they are trying to do is capture the lions share of buyers and sellers that are out their by being the dominant site. So yes it is free to you, but they are making billions of dollars by selling real estate agents services to connect with you. Yep, I or other agents pay for every call or email you send about information on a home. It behooves them to capture you on the internet by any means possible.
Learn how to use the site. This goes for any real estate tool. Most buyers don’t take the time to use it effectively. They waste a lot of time looking at properties that are not really available. Spend an hour or so learning how the site works. Even on my site when you are logged in you can find properties that are under agreement, pending or sold. It is just a matter of toggling a check box to shut it on or off.
There is no one to help. Try to call Zillow. Try to even find a number for them. No one there is available to help the consumer.

So What is My Alternative for Zillow?

Just about every agent has access to a property website. Connect with a local agent. Their information pulls directly from the source, the local Multiple Listing Service. Its always free but you do need to log in and give basic information to get all of the property information. Here in Massachusetts it is governed by the MLS what I can show you with out logging in.

But, with that said, you have access to just about all the information I have, it is updated every 10-20 minutes. You can be aware of a new property or price change just as quickly as an agents. Some times it can take the national aggregates up to 72 hours to make a change. Here in my part of New England that home, will be gone before you even find it on Zillow!

Lastly, there is a live person who can help you effectively use the tool or get you any information or even show you the property behind that tool. So you can access Massachusetts Homes for Sale on my site. If you have any questions don’t hesitate to contact me. This is a very powerful tool learn how to use it and it can save you time, money and aggravation.

___________________________________________________________

This article, What you need to know about Zillow, Trulia, etc…, was provided by Kevin Vitali of EXIT Group One Real Estate. I can be reached at 978-360-0422. If you are thinking of buying or selling a home a have valuable information and tools that can help save you time money and aggravation. Just give me a call.

New Home Search Feature- First Floor Master

I am finding lately that I am working more and more with home buyers that are downsizing. For many home buyers that have owned a home for many years and they find it is time to downsize, they are looking for homes that have a first floor master bedroom.

I have added the ability to search for homes with 1st floor master bedrooms on my online home search. You must be registered to use the first floor master feature. But, registration is free, unfortunately our local Multiple Listing Service requires home buyers to have an account to access this feature.

Search Homes with First Floor Masters

You want my help, but you already have a Buyers Agent?

I got several calls every week from people who want my help, but make it clear they are already working with a real estate agent. There are two types of help they are looking for. One they want help finding a home or two they have questions their agent can’t answer or isn’t around to answer.

Yesterday, I received one of these calls. She was begging me to help her find a home but made it very clear she would have her agent write the offer so they can get the commission. Hmmmm, whats wrong with that picture?

Lets chalk this up to not understanding how real estate agents or better yet buyer agency works.

How Real Estate Agents who are Working as Buyer’s Agents Get Paid

Real Estate agents working as Buyers Agents, or really all real estate agents regardless of who they work for, get paid by commission.

We do not have an hourly salary or a weekly pay check.

I get paid as a Buyers Agent, when I secure an offer on a home that is accepted by the seller and we move on to close on that property. It can be months before I get paid when working with a buyer and can have as many as 40-60 hours into the transaction. I am not complaining, I love the business of real estate! It is just a fact on how buyer agents get paid.

So when you call me up and ask for my help, but tell me you already have an agent you are working with, you are asking me to:

Put in valuable time and energy and use my years of experience to help you so, someone else can get paid.

So Where is Your Real Estate Agent Anyways?

Your calling me for help to answer a question or about a specific property or to help you find a home…. it begs the question, where is your real estate agent anyways?

I have actually asked this. Some of the more typical responses have been:

My Real Estate Agent has a full time job, I can hardly ever reach them.

I have been a full time agent for many years. I make a full time living in real estate. I live breath and eat real estate. I have closed hundreds and hundreds of real estate transactions. So you will be able to find me easily. Secondly, experience counts. I know the ins and outs of the housing market at a given time, I know how to prepare a negotiating strategy and I just know how to help my buyers… period.

I spend thousand of dollars every year on tools to help you find a new home. You don’t need to be bouncing around everywhere in hopes of finding that home that doesn’t exist. Guess what, whether I am your Buyers Agent or you have another Buyers Agent we have exactly the same homes to expose you to. Whats the difference? The level of service and the experience to help you find the right home.

My Real Estate Agent hasn’t returned my calls in days. I can’t find them.

Really? Again I am full time in this business. You can reach me by cell, text or email. My cell phone is usually always answered especially if it is a client of mine. If not I will be getting back to you with in an hour or two. If I do happen to be away for an extended period, I have other people who are covering for me. If you are my client, you not being able to reach me will never be a reason why you missed that home.

My Real Estate Agent told me to go find a home and when I do call them and they will right the offer.

Again, I have to say, Really? If this is your Buyers Agent, you are being completed under served and what they are doing is unethical. A Buyers Agent is more than writing an offer. A Buyers Agent is a buying consultant and can help you in so many ways that will make the most of your home purchase.

So before you call me and tell me you are working with another agent, you better re-evaluate why you are calling me. I can tell you my clients do not call other agents looking for help, because they don’t need to.

I didn’t want to bother my real estate agent

Listen if your my buyer and I am your Buyers Agent, I stand to make thousands if not not many thousands of dollars off your home purchase. How many weeks does it take you to make $2000 or $4,000 or even $10,000. And yes you have to work for it and so should your Buyers Agent. if they aren’t willing to work for it, call me, I will give you a 110% if we decide to work together. If you are working with a buyers agent they have a fiduciary responsibility to you.

What Can a Good Buyers Agent do for me?

A good Buyers Agents role is that of a buying consultant. They really should never be selling you anything. Every home buyer has specific needs so the role of a Buyers Agent can vary from home buyer to home buyer. Here is generally what I do for most home buyers.

Discuss and assess your individual needs and wants.
Bring an objective view to the process. Buying a home can get emotional. A buyers agent’s job is to help you stay objective.
Help arrange the professional you will need through the process (attorneys, home inspectors, mortgage
professionals, movers….)
Provide you with the knowledge and experience gained through the closing of 100’s of transactions.
Educate you about current market conditions and trends and help you analyze the data.
Prepare you to buy.
Help you find the right home with a combination of experience and tools.
Determine if your target home truly suits your needs. Again a good buyers agent will know when to reel you in or give you a little push.
Analyze market value of the home and set a negotiating strategy.
Help you prepare an offer that will not get rejected.
Negotiate to your benefit in a timely manner.
Help co-ordinate the closing between all the involved parties.
Makes sure you are comfortably settled in your new home.

Like anything in this world, there are all types. There is good car mechanics and bad car mechanics, there is good doctors and bad doctors… conversely there are good agents and bad agents. Unfortunately you buy a home so infrequently you don’t even know what to look for in an agent. But, trust me there are great agents out there, who can help you make the most of your next purchase. Take the time to find a good buyers agent or if the one you have is not working out discuss with them what is wrong and if its not corrected find another!

_____________________________________________________________

This article, You want my help, but you already have a Buyers Agent? had been provided by Kevin Vitali of EXIT Group One Real Estate. I cover the Merrimack Valley and would love to help you with your next purchase or sale with my years of experience. Call me at 978-360-0422 to discuss your upcoming purchase and see if I can add value to your home search and purchase.

Searching for a Home to Buy, Where Fantasy Begins and Reality Ends

I just got off a phone with a potential buyer who was searching for a home to buy. Their “needs” list in a new home was quite unrealistic. I asked her how long she has been searching for a home to buy…. her answer was two years!! She was very frustrated and was blaming all these agents that wouldn’t help her in the search to buy a new home.

Searching for a home to buy, where does fantasy begin?

We all want what we want, I get that. But does what you want actually exist?

As real estate agents we have a general idea of what you really want is doable or a fantasy. But we also have the tools to back it up.

So many times when I start working with a buyer with difficult or even impossible demands when they are searching for a home to buy, I turn to the history in the Massachusetts Multiple Listing Service. You can follow the link to learn more about the MLS.

But, basically, the MLS is where agents turn to warehouse their homes for sale to all the agents across the state. Through different means that inventory trickles down to the home buyers so they can access any home that is for sale. This is the big benefit to home buyers searching for a home to buy. What you don’t probably realize is that all that data when it is sold and is compiled any any agent can look at past history.

Searching for a home to buy, where does reality lie?

What did this buyer want? They wanted:

A 3 bedroom 2 full bath home in Andover with a half acre of land for under $300,000. They have been looking and looking. They have to have 2 full baths and it has to be Andover because of the school system. Well I looked back at the history of the MLS for 3 bedroom homes with 2 full baths for under $300,000, I didn’t even use a half an acre of land because I already had a good idea of how difficult this would be. So I searched back three years, guess what I found?

Zero homes sold in the past three years that fit that criteria! In that same 3 years there are only 12 homes that sold under $300,000. And let me tell you when you are buying in the b0ottom 10% of a market a market those home have a serious location, condition or appeal deficiency. The are certainly not very desirable homes for most buyers. What is this data telling us? Ms. Buyer we are in a housing market that is only going up, based on historical sales, you are not going to find what you want.

Searching for a home to buy, sometimes requires compromise

So what to do! Well many times searching for a home to buy will require compromises. A skilled buyers agent will help you find your compromises and find alternatives. Ok, school system is important, let me help you find a school system that is acceptable where you can find a home that will suit you. Or maybe a condo is an alternative….. maybe you can jump up another $50k or a 100k. The compromises are certainly personal but if you want to buy a home their is one out there for you.

The end of the story

Back to Mrs. Buyer. There didn’t seem to be anything I could say that would change her mind about having to rethink her housing goals. But the data doesn’t lie. I will probably be on her list of greedy agents that doesn’t want to help her, while in reality I gave her some valuable data she could sink her teeth into.

Is your home search grounded in reality or fantasy?

_______________________________________________________________

This post, Searching for a Home to Buy, Where Fantasy Begins and Reality Ends, was provided by Kevin Vitali of EXIT Group One Real Estate. I have over 13 years of experience helping buyers achieve their housing goals. If I can naswer any questions or provide you with any data please call me at 978-360-0422.

No Money Down Loan Programs

Recently I have been involved in a few real estate transaction where the buyer’s were able to secure 100% percent financing on no money down loan programs. While there are some caveats to securing a no money down loan, there are certainly available and it could be a good route to go for you.

Available No Money Down Loan Programs

The two No Money Down Loan Programs I am familiar with is USDA Loan and the VA Loan program. If you are a home buyer and consider a low or no money down loan, discuss with your loan officer if a USDA or VA loan program might be eligible for you. Both programs went very smoothly and can be a great tool for any home buyer if eligible.

USDA Loan- No Money Down Loan Program

The USDA Loan is yes offered by the United States Department of Agriculture. It is primarily a loan program for what is considered a “rural” area. In the Greater Boston area this makes the USDA Loan program a little difficult. But there are still communities in Essex County and Middlesex Counties where the loan would be available. Communities such as Georgetown, Merrimac, West Newbury, Tyngsborough, Acton, Littleton, Westford as well as others would be available for the USDA Loan program.

Qualifying for a USDA No Money Down Loan is really not all that different than qualifying for any other loan programs. The only two differences is one, the home you are purchasing is in what is deemed a rural area by the USDA and two, their are income limitations. Otherwise you can use the USDA Loan to finance a single family home, multi family home or condominium.

VA Loans- No Money Down Loan Program

The VA No Money Down Loan program is available to any service member, veteran, or eligible surviving spouse. VA Loans offer a 100% financing program and is far less restrictive than the USDA Loan program and is available for condominiums, single family and multi family homes. If you are eligible their are many benefits to a VA Loan even if you are putting money down.

Maybe one of these No Money Down Programs won’t work for you, but there are still plenty of other low money down loan programs like FHA, Mass Housing, and even conventional financing that will allow you to put down as little as 3% of the purchase price.

If you are thinking of buying a home and are considering a low money down or no money down loan program, give me a call. I will set you up with a lender that can help structure a program for you. Call me at 978-360-0422

Who does my real estate agent work for?

**Who does this agent really work for?**

It may seem like a silly question to many home buyers. Yet time after time, I see home buyers not understand there is a legal relationship created between a real estate agent and a home buying or home selling consumer. It is very important to establish from the beginning who does my real estate agent work for in the transaction.

Understanding the real estate licensee- consumer relationship is key to a successful real estate transaction.

Massachusetts Mandatory Licensee- Consumer Relationship Disclosure

So how do you know who does my real estate agent work for? Massachusetts provides a disclosure for consumers to understand the relationship between an agent and the consumer. It is called the Massachusetts Mandatory Licensee- Consumer Relationship Disclosure. It is mandatory this disclosure is provided to you on the first personal meeting to discuss a property.

There are three types of agency relationships that are created. It is important to know what each is because it can affect how you interact with the agent and the outcome of a transaction.

Seller’s Agent- A seller can engage the services of a seller’s agent to list their home for sale. Many times you will here the Sellers’s Agent also be called the Listing Agent. The real estate agent that represents the seller owes the home seller undivided loyalty, reasonable care, disclosure, obedience, confidentiality and accountability. The agent must put the sellers needs before their own and negotiate the best possible price and terms for the seller.

Buyer’s Agent– Alternately a buyer can engage the services of a Buyer’s Agent. In this case the agent represents the home buyer. The real estate agent that represents the buyer owes the home buyer undivided loyalty, reasonable care, disclosure, obedience, confidentiality and accountability. The agent must put the sellers needs before their own and negotiate the best possible price and terms for the seller.

Facilitator- A facilitator helps a buyer and seller in reaching an agreement. A facilitator owes neither home seller or home buyer any responsibilities that come with the other agency relationship other than honest dealings, accounting and disclosure of material defects. But, the agent owes neither party loyalty, reasonable care, obedience or confidentiality. They are there to assist putting the deal together only.

Who does my real estate agent work for? Why is it important?

Generally, the seller is always engaging a seller’s agent and it is not so confusing for a seller. But where it is really important to understand who your agent is really working for, is for the buyer.

It is not unusual for a home buyer to come to me directly on a home I am listing either, though a phone call because they saw a home on the internet or at an open house. They are excited, they have decided to put in an offer. As a seller’s agent I can certainly assist in writing an offer. But in no way can I help you determine the fair market value of the home, help you structure a negotiating strategy, negotiate the best possible terms for you, the home buyer or even recommend certain professionals you may need for the transaction. As the listing agent, I owe my seller fiduciary responsibility, my sellers needs come before yours.

When you as the home buyer come to me as the listing agent I can assist you in submitting an offer, but my job is to sell you the home at the best possible terms and price for my seller. While I have to treat you with honesty and disclose any material defects of the home, my job is to give my home seller every advantage possible within the law.

What team is your agent playing for?

So being Boston sports fans on the heel of a Patriots win, here is an analogy we can all understand.

A home buyer going directly to the listing agent is like Tom Brady expecting the Chuck Pagano of the Colts coaching him to a win during Sunday nights game.

Can you see Tom Brady wearing the Patriots jersey, sitting on the Indianapolis Colts bench, expecting Chuck Pagano to coach him to lead the Patriots for a win? Absolutely not!!

This sounds ridiculous. Yet it happens everyday. Buyers get caught up in the excitement and the urgency and fail to fully understand what they are doing until it is to late. There are also home buyers who somehow feel they will get a deal or be advantaged by going directly to the listing agent, in reality there is nothing farther from the truth. For most home buyer’s it is actually a disadvantage trying to buy a home directly from the Listing Agent.

A Buyer’s Agent Can Provide A Home Buyer with Tons of Value

I can tell you there are plenty of good Buyer’s Agents that are worth their weight in gold. They can counsel you on what a home is worth, how to negotiate the best deal, provide you with market data to make informed decision, recommend the best professionals and bring you to a smooth closing, plus much more!

Most of my counterparts across the country that I stay in touch with have been in the business for many years. We do this full time, day in and day out. Helping buyers and sellers gives us the experience that can guide you easily through your next real estate purchase. The best thing for a home buyer is you can be represented by a Buyer’s Agent and the fee is paid by the seller, with no cost to the home buyer!

_________________________________________________

This article, Who does my real estate agent work for? was provided by Kevin Vitali of EXIT Group One Real Estate. If you would like to discuss Buyer’s Representation on your next home purchase call me at 978-360-0422.