Real Estatement Podcast

This is our second episodes in a series completely focused on getting a more marketable “retail ready” home for you sellers. For this episode we are going to talk about the major big ticket (more than $1,000 to replace) mechanical and maintenance items that are critical to making the home habitable and safe. Most of these items or systems are not do-it-yourself jobs or are in the high difficulty category. I am going to give prices for having professionals do the job. Let’s start from the top and work our way down. Roof – Condition can impact ability of a buyer to get financing. Might be difficult to find someone to come out for a small repair job. Replacement $7,000+ Most newer homes will be over $10,000 easily. When to repair or replace: Missing, torn, curling, lifting, or worn thin shingles Water penetration into the main living area of the house Worn valleys Bents, damaged, or missing flashing More than 2 layers already on the roof When to leave it: Moss growth (Spray & Forget, Wet & Forget, get sunlight to the roof to dry out) Staining (tree run off, rust) Wavy surface Electrical – Panel Box: Replace if your home is on fuses or under 100 Amp service; consider if Push-Matic system. $1,000-$2,500. Hot Water Tank – About $1,000 for replacement. Average life expectancy is 10-15 years. Can be longer with good maintenance, but still looks like an old hot water tank to potential buyer. Replace if: Crackling and popping while heating water Water dripping into the burner element area Heavy oxidation/rust in the burner area Not heating water Furnace/AC – $3,000-$8,000+ Average life expectancy is 10-15 years. Replace the A/C if the fins on the coils have corroded away from salt or pet urine. If the A/C is excessively loud and “struggling” to cool the house, you can have it serviced but if it is at or over the life expectance, replace it. Buyers will be turned off by old A/C units. The A/C by itself can be about a $3,000-$4,000 replacement for the average home. If your furnace is beyond 15 years old, you really should highly consider replacing it to increase the appeal of selling your home. Modern furnaces are more efficient, quieter, and don’t have 15 plus winters of abuse on them. Furnaces should be replaced if the heat exchanger has cracked and is leaking gas. Only a professional inspection of the furnace or a CO2 detector can tell you this. CO2 detector is too late. If your furnace is near or just over the 10 year old mark, have it serviced, tuned up, and certified by an HVAC professional at the very least. Now that we have covered the things that make a house livable, next time we will cover what makes the inside look good. On the next episode: Seller Series – Getting the interior ready for its close up Thank you for listening. If you have questions, comments, or want me to help you find a new home for the holidays: Email ksmith@nbsre.com Facebook www.facebook.com/kevinsmithrealestate Don’t forget to subscribe to this podcast! I am Kevin Smith and this has been the Real Estatement. Share This:

This is the first of four episodes in a series completely focused on getting a more marketable “retail ready” home for you sellers. With this series, you are going to hear me use the phrase “retail ready”. I want to define what that looks like. I want you to picture a new construction model home. Really think about the experience when you go through those models. The walls are freshly painted. The windows are all clean. The landscaping is perfect. The furniture is set to maximize the space, but show the function of the room. The rooms are clean, bright, smell fresh, and organized. There is a bowl of plastic fruit placed under the light on the kitchen island that accents the color of the granite. These things are all done with a purpose. This is a retail home and they are trying to maximize the dollar. This is how I want you to start thinking when you come to sell your home. I know that life happens… but you are trying to sell, in some cases, a several hundred thousand dollar asset. Act like it! So, let’s start where any potential buyer for your home is going to start: the curb appeal. This, if you get nothing else out of these episodes, is the most important thing to have right. It is going to set the stage for anyone driving by because they saw a For Sale sign is in the front yard, looking at the listing on the internet, or stopping for an open house. The front of your house has to be a living artistic master piece. You are selling a product; I am just marketing it for you. Where do we start? Across the street! Yup, I want you to get up, go outside, walk straight to the curb across the street, turn around, and take a good hard objective look at your house. This is where buyers are going to start judging your house either from the photograph taken from that spot or their car as they get out. If you want a really honest opinion, find the most critical friend or family member you have and make them go through this exercise with you. Start making a list of what you need to correct. How does your roof look? Shingles? Branches overhanging? Pile up of leaves? Do you replace it? Gutters cleared out and hanging properly? Is your chimney cap still in place? How is the trim on your house? Chipping and peeling paint? Wood rot? Missing pieces? Does it need to be painted? What is the condition of the homes siding? Clean? Missing? Cracks in the brick that need to be tuck-pointed? How is the color? Faded? Outdated? Peeling? How about the windows? Broken? Missing or damaged screens? Clean?? Should you think about replacing them? Get rid of those ugly awnings? Shutters falling apart? Exterior lights? Working? Updated? Clean? Does your landscaping look good? Bushes and trees trimmed back? Are there any that are overgrown and should be removed? Grass cut? No trash, kids toys, dog bowls, sporting equipment, or leftover election signs lying around? Sharp edging done between the grass and any cement? Driveway has no weeds in the cracks? Does it have too many cracks and should it be replaced? Leaves are raked and gone? Dead plants are pulled? No weeds at all? And, I want you to walk 50 feet in both directions so you can see the side of your house and go through this same thing from an angle. When you’ve checked from the curb, I want you to start walking up to the front door of your home, again, as if you are a super picky buyer. Is your garage door in good shape or has it been hit a couple of times and you need to look at painting or replacing it? Are there cob webs, bee hives, or bird’s nests that need to be removed from outdoor lights or certain corners? Is the walk up to your front porch a heaving concrete trip and fall hazard? Should you fix that hand railing going up the stairs? Keep looking. If you don’t find anything wrong, you aren’t looking hard enough. Finally, you will get to the front door. Stand at the front door for a while. A buyer will be there a while as the real estate agent is fumbling with the lockbox and keys. Spend several minutes looking around. Maybe the front door needs to be repainted? The storm door have finger or paw prints that need to be cleaned off? Front porch need to be swept? Is the concrete okay? If it’s wood, does the stain look okay or should you have it refinished? Should you replace that worn out “Welcome” mat? Can you finally throw out that old pair of shoes that have been “drying out” since May? Do all of the painted surfaces you can see look good and fresh? Be very critical on your home, because buyers will be. In fact, go to some new homes or houses in your neighborhood that you wish yours looked like and see what they do to make those homes look so appealing. Now, take that list of things you saw and get to work! If you did it right, you should have a list of a least a few items. Most things can likely be handled in just a few hours and will make huge difference. A can of paint can go a long way to make the old look new again. Some of the bigger items like the roof and windows, well, you’re getting ahead of me because that is our next episode. Let’s take care of the small stuff this week and get those home ready for the retail market. If you focus on the outside, you will get people inside. On the next episode: Seller Series – Big Ticket Maintenance Items (just in time for Black Friday) Thank you for listening. If you have questions, comments, or want me to help you find a new home for the holidays: Email ksmith@nbsre.com Facebook www.facebook.com/kevinsmithrealestate Don’t forget to subscribe to this podcast! I am Kevin Smith and this has been the Real Estatement. Share This:

After months of looking, multiple hurdles, and sending documents back and forth, you finally have a clear to close! Yay! Now you just have to get through the last few days before sitting down at the closing table. ?             Review closing documents for correctness and accuracy. If you have questions or concerns, tell your agent and/or lender now! And wait 3 days… Thanks TRID!… TILA-RESPA Integrated Disclosures (Truth In Lending Act- Real Estate Settlement Procedures Act) Effective October 3, 2015 ?             Call utility companies (i.e. Gas, Electric) to transfer service into your name effective the date of closing ?             Call cable, internet, and phone providers to begin or transfer service ?             Provide US Postal Service and Secretary of State with change of address notification ?             Notify any subscriptions, banks, credit card companies, automotive lenders, insurance companies, places of employment over the last year, and family (optional) of change of address ?             Arrange for movers and any work that needs to be done to move in, such as painting, to begin after closing ?             Schedule a time for your final walk-through 24-48 hours prior to closing ?             Bring the following to closing: o             Photo ID o             Cashier’s check if you are required to bring money to closing o             Yourself and anyone else that is purchasing the property with you o             A well stretched writing hand because you are going to have a lot of initialing and signing to do Congratulations on the purchase of your new home!! On the next episode: New 4 part series for Sellers. Preparing the home to be retail ready. Judge your home by its curb appeal. Thank you for listening. If you have questions, comments, or want me to help you with navigate this Seller Friendly Summer: Email ksmith@nbsre.com Twitter @nbsrealtor Facebook www.facebook.com/kevinsmithrealestate Don’t forget to subscribe to this podcast! I am Kevin Smith and this has been the Real Estatement. Share This:

This is the third episode in a four part series on giving an overview of the buyer purchasing process. Last time, we covered what happens after the deal is made but we really glossed over the home inspection and appraisal step. We are going to discuss the inspection and, a common problem in this market, if the appraisal house doesn’t appraise. Let’s break them down: Home Inspection: What is the home inspection? It is a top to bottom, Roof to foundation check of the property by a home inspector. It is the “test drive” for the house. Home Inspector – A word of warning: Not a regulated industry or profession in Michigan. What you want is someone that is a licensed contractor with some experience in home construction or remodeling. They work for and are hired by the home buyer. A good home inspector will cost you $300-$400, but it can run more if you have additional testing done. Those can include Mold, Lead Paint, or Radon. What should you expect? Inspection will take about 2-3 hours and be very through. They should take pictures and good notes. The inspector should have some tools: ladder, screw drivers, flashlight, and electrical testers. During the inspection, the inspector should: Go up on the roof: check for shingle damage, condition of flashings, vents, and chimney Complete walk around the exterior walls: looking at brick and siding condition, trim, gutters, A/C unit, and outside condition of windows Basement and foundation: Covered a lot in episode 007 when we talked about basements. Condition of the foundation, any finished elements, and mechanicals Furnace or boiler – age, operation, Carbon Monoxide leaks Hot water tank – age, operation, Carbon Monoxide leaks Water system Electrical system – Panel box (remove cover and check inside) Inside rooms: Bedrooms, dining room, living room, great room: pretty basic check for wall cracks or water damage, windows, and fireplaces (if applicable). Bathrooms: Function, leaks, and Ground Fault Interrupter outlets Kitchen: Function (appliances), leaks, and GFI outlets Laundry room: Function, leaks, and GFI Garage: Function and operation Appraisal: We are going to get really in depth into appraisals in another episode, but an appraisal is an opinion of a home’s value done by a licensed appraiser. An important thing to note is the appraiser works for the bank, but is paid for by the buyer. Appraiser is not the same as the home inspection. What if the house doesn’t appraise? Two ways it doesn’t; the first is value: If the appraiser’s valuation does not come in at or above the contracted sale price, the lender will not be willing to lend on a property that is not worth the price being paid. Options: Buyer and seller agree to drop the price to the appraised value Buyer brings the difference in cash between the sale price and appraisal amount Split the difference of dropping the sale price and buyer bringing money to closing Deal falls apart The second way it doesn’t appraise is condition: Unless it is rehabilitation mortgage, the property needs to be habitable Also, a property for VA or FHA Financing needs to be in move-in, “turn-key” condition. If the appraiser notes items to be fixed, those need to be addressed prior to closing. Common items include: chipping and peeling paint, cracked or broken windows, bad roofs, concrete creating a trip and fall hazard, and missing smoke detectors. These items will need to be fixed or the deal falls apart. That makes up the two major hurdles between getting the deal and closing. On the next episode: Buyer Offer Series finishes Up – What to do before closing. Thank you for listening. If you have questions, comments, or want me to help you with navigate this Seller Friendly Summer: Email ksmith@nbsre.com Twitter @nbsrealtor Facebook www.facebook.com/kevinsmithrealestate Don’t forget to subscribe to this podcast! I am Kevin Smith and this has been the Real Estatement. Share This:

This is the second episode in a four part series on giving an overview of the buyer purchasing process. Today we are covering what happens after the deal is made. I know I skipped over the negotiation, but every negotiation is very different and I plan to do an entire series on real estate negotiating in the future. For now, let’s assume you already got over that part. Both parties should have the purchase documents along with any addendums signed and any changes made initialed. Step 1: Get paperwork to lender and title companies Purchase agreement, any addendums, copy of the deposit, seller’s disclosures and lead based paint disclosure, and contact information for all of the parties Step 2: Schedule and complete contractor’s inspection Go in depth in the next episode on the inspection. Step 3: Begin shopping for home owner’s insurance Things to keep in mind with your home owner’s insurance: Plenty of liability protection, protection is sued. $500,000 is very inexpensive for the coverage. Replacement cost vs. property value Riders for personal property: jewelry, firearms, collectables Step 4: Supply lender with any require documents (W2’s, letters of explanation, bank statements). Be quick about it, but don’t take short cuts. Step 5: Be patient while you wait for appraisal and underwriting. Fill the time by filling up boxes and packing. Step 6: Get ready for closing.     On the next episode: Buyer Offer Series – The contractor’s inspection and what to do if it doesn’t appraise. Thank you for listening. If you have questions, comments, or want me to help you with navigate this Seller Friendly Summer: Email ksmith@nbsre.com Twitter @nbsrealtor Facebook www.facebook.com/kevinsmithrealestate Don’t forget to subscribe to this podcast! I am Kevin Smith and this has been the Real Estatement. Share This:

This is the first episode in a four part series on giving an overview of the buyer purchasing process. This is the great mystery that you won’t ever see in House Hunters or Property Brothers. They over simplify a very legal and involved process into a 3 minute spot, split by a commercial break, that makes it look like you can buy a house with a couple phone calls. The reality is this process is done in writing and varies with each property, transaction, and state. So, we are going to discuss what needs to go into a basic offer. This will be very Michigan focused for this series, but there will be several similarities. Several states have very different rules: Texas and Louisiana has one purchase document for the whole state. Several states require the presences of a lawyer for all real estate closing: Alabama, Connecticut, Delaware, District of Columbia, Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia and West Virginia. Let’s a talk about what goes into an offer: Good down payment – Recommend at least 10%, 20% to avoid Private Mortgage Insurance (discussion for another day), FHA will do 3%, VA can do 0% Pre-approval letter – Contain amount approved for, loan program, no stipulations that income, employment, or credit still need to be verified Agency Disclosure Purchase Agreement or Buy Sell Agreement – Contents: Property Information Price Financing Terms Earnest Money Deposit Closing Dates Offer time limits Possession Prorated Taxes, water, and association fees Title condition Inspection Disclosures Seller’s Disclosure – State of Michigan required. Sellers have to complete these even if they do not occupy the home. There are only a few exemptions for those who do not have to complete them: Foreclosure sales Sales among family members Court mandated sale You’ll notice I didn’t say homes being sold by investors or flippers. Lead Based Paint (1978) EPA and HUD required Addendums FHA/VA Addendum Condominium Addendum Contingent on Sale Addendum Well & Septic Addendum Make sure everything is complete, accurate, and organized with initials and signatures. They are submitted by email or in person.   On the next episode: 2 of 4 Buyer Offer Series – You’ve got a deal! What are the next steps? Thank you for listening. If you have questions, comments, or want me to help you with navigate this Seller Friendly Summer: Email ksmith@nbsre.com Twitter @nbsrealtor Facebook www.facebook.com/kevinsmithrealestate Don’t forget to subscribe to this podcast! I am Kevin Smith and this has been the Real Estatement. Share This:

It amazes me, when showing homes, how little attention buyers give to something as important as the basement of the home. Background: Needed to get the foundation below the frost line. They still can be found in warmer climates, but not as frequently. Rare is wet climates prone to flooding or areas with high water tables Very common in US Midwest; not in Texas, Oklahoma, Arkansas or areas within 50 miles of the Gulf of Mexico – stilts Early foundations were built on stone and mortar crawl spaces (if the structure wasn’t built on the ground). The use of concrete and cement was refined and reinforcement measures were discovered through the late 1800’s and early 1900’s. By the 1950’s, it became a space of its own when powered excavating equipment came into use. Highly desired in Michigan and here is why: Why? Ease of access to and location of mechanicals Thermal envelope and frost lines Storage (cellar) Shops, Entertaining Spaces, Home Gyms (more cubic square feet for the foundation area) Types: Block Poured w/ Rebar (reinforcing bar) Precast Michigan – is a term used in and around Michigan for a crawlspace that was later excavated to the depth of a basement “dug-out” How to look at a basement during a showing? Check very visible wall top to bottom, all the way around. What are you looking for? Water, moisture, phosphorescence, water stains walls and overhead Water in the basement: Sump Pumps Purpose Backups: Secondary pump, battery backup, water powered backup (city water only) Discharge, check valve Drain Tile/French Drain Drainage and gutters Rod holes – Hydraulic cement Sealing and waterproofing – Concrete is porous! Dehumidifier (especially in finished basements) Cracks Cracking Flooring Cracks are usually completely benign. No structural value. Not level for a reason! Cracks in poured walls should be sealed with either a low pressure or high pressure epoxy or polyurethane and monitored for changes Block wall can be monitored and tuck pointed, watch for expanding cracks and pushing Extreme cases where there is significate separation, shifting, or pushing: Steel bracing Wall Anchor Systems Insulation, daylight where there shouldn’t be (sill plate) Mechanicals HVAC – can’t get age without removing the cover, but look for rust, service dates, newer looking parts Water Heater – Might have the date right on it, but some manufactures incorporate it into the serial number. Rust, leaking Electrical panel box – Fuses or breakers, have a cover on it, any recent permit approvals, labelled (that might be a luxury) Water meter, well pump, water softener/filter – easy to get to, filled, changed filter Finished? Is it done properly? Framing – lumber in contact with concrete must be pressure treated or have a vapor barrier (most missed steps by a non-compliant DIY finished basements) or metal studs Emergency egress exits required in bedrooms and in basement with a rec room. Smoke detectors and Carbon Monoxide detectors are require (FHA and VA require in unfinished too, but just a good general practice. Electrical run through the floor joists and studs and not just over the drop ceiling or stapled under the floor joists Flooring – special moisture resistant materials required for basements. Counting the basement bathrooms or bedrooms – No, rooms below grade cannot be counted for living area or room count. Sellers: Don’t cheat! Buyers will walk out when they realize a 3 bedroom is really a 2 bedroom with a basement bedroom. The appraiser won’t see it your way either, yes, even with a walk out. Check on permits!   On the next episode: Buyer Offer Series – Foundation of a good offer Thank you for listening. If you have questions, comments, or want me to help you with navigate this Sizzling Seller’s Summer of ’16: Email ksmith@nbsre.com Twitter @nbsrealtor Facebook www.facebook.com/kevinsmithrealestate Don’t forget to subscribe to this podcast! I am Kevin Smith and this has been the Real Estatement. Share This:

Real Estatement Podcast – Episode 6 On today’s episode: We are going to make a splash by talking swimming pools and Michigan real estate Welcome to episode 6 of the Real Estatement Podcast. I am Kevin Smith, a licensed Real Estate Broker with NBS Real Estate LLC in Rochester, MI. The Real Estatement Podcast, voted the “Best New Real Estate Podcast” by my wife, is produced for anyone that owns, rents, buys, sells, trades, splits, shares, or is just interested in real estate especially in Metro Detroit and Michigan. Thank you for joining me today. Summer is coming to Michigan (eventually)! That means pool time. Everyone loves to be in or by the water during the summer. According to P.K. Data (a swimming pool, spa, and hot tub market data company) the average cost of a 19′ diameter above ground swimming pool is $6,243; while the average cost of a 32’x16′ in ground swimming pool is $21,919. By and large though, it does not add or detract value to the home though (especially in Michigan). People either love to have them or don’t love to have them. One exception being a pool in terrible condition. Love to Have’s: Loads of Fun! Great entertaining space Can make a great feature when incorporated into the landscape Less lawn to cut Good exercise Don’t Wants: Big upfront building and refilling cost Lots of work to maintain (unless you have a pool boy) Many ongoing costs (chemicals, water, equipment replacement, fencing, covers, pool toys) Can only be used for a few months a year Increased liability – Have enough insurance! When a pool is involved in a sale, here are special considerations: Sellers: If it is open season, keep that pool spotlessly clean! If closed for the season, keep it clean too Make sure you pulled permits when you installed it! Have everything in working order Leave instructions Offer to do a demonstration Leave the equipment behind Be prepared to have it inspected Buyers: Get the pool inspected! Learn about pool care and maintenance Be sure the equipment is included with the sale Do a swimming pool addendum Be sure it was permitted!! Ask the seller if they will do a demonstration Make sure you have more than adequate liability coverage for having a pool Pools are a lot of fun and a personal preference, but not anything that adds or removes any value except for the right buyer. On the next episode: The place you don’t want water: The basement. Thank you for listening. If you have questions, comments, or want me to help you with navigate this Seller Friendly Summer: Email ksmith@nbsre.com Twitter @nbsrealtor Facebook www.facebook.com/kevinsmithrealestate Don’t forget to subscribe to this podcast! I am Kevin Smith and this has been the Real Estatement.   Share This:

Real Estatement Podcast – Episode 5 On today’s episode: Is the internet the death of a Real Estate Salesperson? How quickly should a dead man walking respond? Welcome to episode 5 of the Real Estatement Podcast. I am Kevin Smith, a licensed Real Estate Broker with NBS Real Estate LLC in Rochester, MI. The Real Estatement Podcast, voted the “Best New Real Estate Podcast” by my wife, is produced for anyone that owns, rents, buys, sells, trades, splits, shares, or is just interested in real estate especially in Metro Detroit and Michigan. Thank you for joining me today. The internet, technology, and automation are amazing things. The robotic arm can build and paint a car with more speed and precision than a line worker who needs weeks to recover from an injury as opposed to just hours to repair the robot. Email has lightened the bags of many a Postal Worker. Touch screens are replacing fast food workers that want more money than they bring to the marketplace. Technological advances have made the existence of certain occupations, switchboard operator or door-to-door salesman, obsolete. We have a lot of technology available in real estate today. There are home marketing websites where people can post their own homes for sale. There are sources on the internet for obtaining the documents for various real estate transactions. There is plenty of information out there about what you should do to your home to make it more marketable. So, are Realtors doomed to suffer the same fate as the phonebook, the film camera, and the typewriter? It is true that searching for homes can now be done in your pajamas 24 hours a day with all of the details you could possibly want, limitless numbers of high definition photos, aerial photos, online crime and school reports, and a list of comparable homes with a couple mouse clicks. The reality is that regular people don’t buy or sell homes very often. You may only buy 3-5 homes over your lifetime. Reasons to have Real Estate Brokers and Salespeople in the market: Marketers – MLS, photos, wording, property access Subject Matter Experts – documents, markets, Logistics – showings, scheduling, verifying people Strategy – pricing, negotiation, timing Delegation – This is not your full time job; it is theirs But it is important to remember they have lives too. Real estate sales as a career is challenging for those that like consistency: Odd hours Last minute changes (turn on a dime) Lots of travel and road time Don’t work: Don’t make money Many bosses that all deserve equal attention We have an instant gratification society vs. reality. Technology has made contact instantaneous and virtually infallible vs. agents that can’t always answer or respond because of in person appointments, driving, or just not having any new information. Clients want immediate purchase decisions made vs. an emotional decision by people that have their own lives Customer wants now, now, now vs. sometimes counting on people or companies that have other things on their to-do list and more than one client. What is an acceptable response time? Within a few hours. Yes, even with a text message or return phone call. Anything outside of 1 business day, unless you know of an extenuating circumstance, is not professional. Hold your real estate agents accountable, but remember they are human and, in most cases, just one person. One person that should enjoy what they do. On the next episode: Grab your swim suit! We are jumping feet first into the topic of buying or selling a home with a pool here in Michigan. Thank you for listening. If you have questions, comments, or want me to help you with navigate this Seller Friendly Summer: Email ksmith@nbsre.com Twitter @nbsrealtor Facebook www.facebook.com/kevinsmithrealestate Don’t forget to subscribe to this podcast! I am Kevin Smith and this has been the Real Estatement.   Share This:

Real Estatement Podcast – Episode 4 On today’s episode: What is the best place to look for homes that are actually on the market? Why is access to the MLS guarded by the Knights Templar? How come everyone in real estate wants to roll their eyes when you tell them you got your home’s value from Zillow? Welcome to episode 4 of the Real Estatement Podcast. I am Kevin Smith, a licensed Real Estate Broker with NBS Real Estate LLC in Rochester, MI which is a northern suburb of Detroit. The Real Estatement Podcast the most listened to real estate podcast in my house produced for anyone that owns, rents, buys, sells, trades, splits, shares, or is just interested in real estate especially in Metro Detroit and Michigan. Thank you for joining me today. And thank you, internet, for making searching for a home more frustrating. The internet is an amazing tool for real estate except when it’s not. Most websites that have real estate listings are marketing tools for real estate brokers and salespeople. Having up to date information is not a priority for them. They make money from real estate pros paying to show up higher in search results or as “Premier” agents. They sell zip codes. Where should home buyers turn for good information? Realtor.com (or the app) Moveinmichigan.com Automatic emails from your agent (Monthly, weekly, daily, or ASAP) Realcomp App Why is the MLS guarded? History: According to NAR, in the late 1800’s, real estate brokers would meet and talk shop and properties. They agreed to compensate one another to sell each other’s listings. That was the MLS. An old boys club. Evolved into a monthly book about the size of a phone book with on black and white exterior photo used through the mid 90’s. Was usually outdated by the time the ink dried and it was more effective to just drive up and down the street looking for new for sale signs. Costs money and we pay to be members Confidential information like lockbox combinations and home access information You do have access. Ours is just more involved and has more options and faster access. It’s a little job security, but not much.   Let’s talk Zestimate Zestimate per Zillow accuracy (http://www.zillow.com/zestimate/#acc) : Accuracy Rating Within 5% of Sale Price Within 10% Within 20% Median Error Detroit, MI Three Stars 36.3% 60.5% 81.4% 7.5%   So, on a $300,000 Rochester, MI home, they are off by less than $60,000 about 80% of the time. It goes both ways. It could be $360,000 or $240,000. What about the other 20% of the time? I wish I could be off by more than 20% in 1 out of every 5 homes that go into to give a value and still be a trusted real estate source. Why is it this way? A: A computer doing algorithms based on way too much information: sales, refinances, foreclosure sales, distressed properties, updated homes, and features or condition of the home being valued. So, what is the best way to know the value of your home? That sounds like a good topic for another podcast.   On the next episode: Will the internet and technology eventually kill the modern Real Estate Salesperson? Thank you for listening. If you have questions, comments, or want me to help you with navigate this Seller Friendly Summer: Email ksmith@nbsre.com Twitter @nbsrealtor Facebook www.facebook.com/kevinsmithrealestate Don’t forget to subscribe to this podcast! I am Kevin Smith and this has been the Real Estatement.   Share This:

Real Estatement Podcast – Episode 3 On today’s episode: Am I some kind of real estate agent or something? Yes, and I’m REALTOR, but there’s a difference, somehow. And we will discuss it! Welcome to episode 3 of the Real Estatement Podcast. I am Kevin Smith, a licensed Real Estate Broker with NBS Real Estate LLC in Rochester, MI a northern suburb of Detroit. The Real Estatement Podcast the newest real estate podcast in my office that is for anyone that owns, rents, buys, sells, trades, splits, shares, or is just interested in real estate especially in Metro Detroit and Michigan. Thank you for joining me today. ABC’s Modern Family character Phil Cunphy plays a REALTOR. Ty Burrell’s character has become the new pitchman for NAR. Clip Link: http://abc.go.com/shows/modern-family/video/pl5520993/vdka0_ygaiqloo From Season 7, Episode 20, “Promposal”: Gloria (Sofia Vergara) and Phil (Ty Burrell) arrive at Auntie Alice’s house to call her a liar. Auntie Alice tells Gloria that she stole the sauce and filed a patent on it. Gloria is ready to give up until Phil determines that Auntie Alice’s house has several building code violations. Auntie Alice is shocked and can’t figure out how Phil knew all the codes. “What are you some kind of real estate agent?” Sofia Vergara’s character states, “No, he’s a REALTOR. There’s a difference somehow.” There is a difference! Let’s talk about it… Real Estate Agent is just a made up job title. An agent is just someone that is acting on someone else’s behalf. A Real Estate Agent is just someone that acts on someone else’s behalf for real estate dealings. It’s just a job title. You can’t get a real estate agent license in Michigan. There are two licenses in Michigan required for someone to engage in the buying and selling of real estate that is their own. There is a real estate salesperson license and a real estate broker license. Real Estate Salesperson License: Your basic “Real Estate Agent”. State has a long definition (http://www.michigan.gov/lara/0,4601,7-154-72600_72602_72731_72871-360483–,00.html), but basically getting paid to help someone with their real estate marketing and transactions under the supervision of a Real Estate Broker. Majority of licensees. 42,419 salespersons (66.5% of licenses). If you have a co-worker, friend that does real estate on the side, or even someone that has been doing real estate for a long time, chances are they are a Real Estate Salesperson. It’s easy to get. Be at least 18 years old, take 40 Hours of Class, Pass a Test, File a Form, and Pay a Fee. That’s it! It is easier to be licensed to be a representative in the buying and selling of people’s property than it is to cut hair and do manicures in Michigan. It’s way too easy and should be harder. (Rant for another day.) Real Estate Broker: Brokers have similar functions, by definition, to a salesperson, but with one major added ability: manage a real estate office and salespeople that work for the broker. Here is actually where a lot of local real estate salespeople get it wrong with their “Teams”. Becoming a Licensed Broker: 90 Hours of class, take the Exam, and at least 3 years of experience as a salesperson or equivalent experience (MBA) An individual may be licensed as either an Individual Broker, which denotes operation as a sole proprietorship, or as an Associate Broker, an individual who qualifies as a broker but who is licensed to a broker or another broker entity type, LLC, partnership, corporation broker. If Individual Brokers are using a business name (e.g., John Doe d.b.a. Doe Realty), an assumed name certificate must be obtained from the county clerk’s office and filed with the application. An Associate Broker cannot operate with an assumed name. If the broker’s license will be held by an entity, at least one owner or principal must apply for an associate broker’s license to that broker.   REALTOR You can be a salesperson or broker without being a REALTOR. Say what? Yes, a REALTOR is just a real estate licensee that is a paid member of the National Association of REALTORS, the Michigan Association of REALTORS (or whatever state), and a local board of REALTORS. Why wouldn’t you just be licensed and not be a member of the board? Marketing and the MLS… That’s about the only reason I can find. Code of Ethics Classes and affiliations Legal Question Assistance Legislative lobbying for real estate matters   There is a difference and now you know how! On the next episode: What is the best way as a member of the general populous to find those MLS listings on the interweb? Thank you for listening. If you have questions, comments, or want me to help you with navigate this Seller Friendly Summer: Email ksmith@nbsre.com Twitter @nbsrealtor Facebook www.facebook.com/kevinsmithrealestate Don’t forget to subscribe to this podcast! I am Kevin Smith and this has been the Real Estatement.   Share This:

Real Estatement Podcast – Episode 2 On today’s episode: Si Vis Villa Para Bellum Latin for: If you want house, prepare for war! I have tips for buyers to be more competitive in a hot seller’s market. Welcome to episode 2 of the Real Estatement Podcast. I am Kevin Smith, a licensed Real Estate Broker with NBS Real Estate LLC in Rochester, MI a northern suburb of Detroit. The Real Estatement Podcast at the moment I record this in my office is the newest source for quality real estate information that is for anyone that owns, rents, buys, sells, trades, splits, shares, or is just interested in real estate especially in Metro Detroit and Michigan. Thank you for joining me today. As I mentioned this in episode 1, the Sizzling Seller’s Summer of ’16 is just beginning. It is hard out there for a buyer and there is no sign of it letting up any time soon. So, today I want to talk about things buyers can do to survive this crazy seller’s market. Challenges for buyers: Low inventory Lots of other buyers Bidding wars Short marketing time for homes Life doesn’t stop to shop for homes What Can Buyer’s do to succeed in this market? Take a couple deep breaths! Stressful, exhausting, emotional process. Pay Cash – Cash is King Go Conventional with a big down payment and don’t ask for seller paid closing costs or concessions. Be competitive, but be wise – Offer at or over asking but don’t go too high if you are financing. Be Quick! – Automatic email listings direct from the MLS from your agent or websites that are associated with the MLS: Realtor.com or MoveinMichigan.com; not Trulia or Zillow. (Rant podcast for another day) Look at them ASAP if you like them based on what you see online. Don’t hesitate with offers. If you sleep on it with a good home, you may lose it. Look at homes that have been on the market a longer time. Diamond in the rough or was overpriced a while and more willing to negotiate. Try not getting emotionally attached to a home. Write a letter to the seller – tug at those emotional heart strings. Doesn’t work all the time and will likely never work with bank owned, investor (flip) sellers, or short sales. Don’t get desperate – don’t buy a home you will end up hating or overpaying on. Ambush the listing agent at an open house – with an offer that is. Last resort: Offer to cover any difference between the purchase price and an appraisal amount. Not one I recommend because you end up over paying. Wait it out, if you can. You’re not going to get a good deal right now. (Did he just say that?!) Thank you for listening. On the next episode: Real estate agent vs. REALTOR. There is a difference, somehow. And we will discuss it! If you have questions, comments, or want me to help you with navigate this Seller Friendly Summer: Email ksmith@nbsre.com Twitter @nbsrealtor Facebook www.facebook.com/kevinsmithrealestate Don’t forget to subscribe to this podcast! I am Kevin Smith and this has been the Real Estatement.   Share This:

Real Estatement Podcast – Episode 1 On today’s episode: Who is this guy? What is this podcast? Why should I care? Why is it so hard to buy a house right now? Welcome to the first episode of the Real Estatement Podcast. I am Kevin Smith, a licensed Real Estate Broker, for NBS Real Estate LLC in Rochester, MI. I first got into real estate in 2003 licensed as a real estate salesperson, went to Western Michigan University (Go Broncos!) and obtained my degree in Business Management, and worked for a now defunct automotive finance company out of college and worked in real estate while doing that job. Three and a half years after that I was laid off in the worst job and real estate market we have seen in the lifetime of most of the people that will listen to this. The day I was laid off, I went to the real estate office. Even with a few jobs here and there since then, I still have real estate as my mainstay and passion. I became a Real Estate Broker in 2011 which is a fancy way of saying I have gained the experience, taken the classes, passed the test, and paid the fees to be able to own and run my own real estate office. Now, my father, who has been in the business for over 25 years, and I own our own small office in a distant Detroit suburb. That brings us to the purpose of the Real Estatement Podcast: A real source for quality real estate information that is for anyone that owns, rents, buys, sells, trades, splits, shares, or is just interested in real estate and not just directed at investors or coaching other real estate agents. This will be Michigan and Metro Detroit focused because I am in a suburb of Detroit. Example of future topics: Tips for buyers, sellers, tenants, and landlords Market trends Real Estate Law changes What is affecting home values Big real estate moves in Metro Detroit New building materials or products for the home The Process of buying and selling Tips for real estate agents and brokers How certain current events impact real estate Interviews with experts We are in a STRONG Seller’s market! (Unless you have a condo or a super outdated or fixer upper home.) This is going to be the Sizzling Seller’s Summer of ’16 What does that mean? Is that mean a bubble is coming? What should we do as a buyer or seller? What Buyer’s Need to Do: Be Patient Be Wise Be Quick! Be competitive Not get desperate What Seller’s Need to Do: Have your home ready to market and show! Put your home on the market now! Price it well Don’t be too greedy Have great photos taken Be quick and plan to be gone Thank you for listening. Next episode: How a buyer can be more completive with an offer! If you have questions, comments, or want me to help you with getting your home on the market during this Seller Friendly Summer: Email ksmith@nbsre.com Twitter @nbsrealtor Facebook www.facebook.com/kevinsmithrealestate Don’t forget to subscribe to this podcast! I am Kevin Smith and this has been the Real Estatement.     Share This: