EPISODE 2: How should you choose a buyer's agent?
There are so MANY real estate agents in San Ramon and other areas with different backgrounds and expertise that it's really getting harder to find the realtor that is right for you! In this episode, Rama will be sharing to you the 6 essential characteristics that your realtor must have to make sure that you will be getting the best realtor. The 6th one might actually surprise you! DO YOU REALLY NEED A REALTOR IN THE FIRST PLACE? You have decided that it's time to be a homeowner. That's great news! Have you bought a home before? It's time for you to start research on homes and areas you want to be in. But wait. Do you need a realtor in your corner? Finding information online is very easy but also creates a lot of confusion about the whole process of buying a home. Just like you can research on how to treat a disease online but it's always best to go to the doctor and get it treated by a professional. CHARACTERISTICS OF A REAL ESTATE AGENT THAT YOU SHOULD LOOK FOR What should you be looking for in a realtor to assist you in the home buying process? 1. Is the realtor local to the area you will buy in? Having deep insights into the local communities is an asset that a real estate agent can bring to the table. Knowing which areas have an upside to growth, which communities or areas have geological downside that can create long-term problems for the owners. are among many more things that can be identified by a local agent. You won't find this knowledge online but a specialist in the area can educate you. 2. Full-time agent Now with heavy competition in the real estate space, there are hundreds and thousands of real estate agents who enter the industry every year. I was a new agent in 2004 but I made it a point to educate myself to learn and you know get to know my area really well where I was deciding to sell in and be able to provide deep insights for the client, be proficient in contracts so that I can be a powerful resource to educate my clients. Unfortunately these days there is a deluge of part-time agents who are not taking the time to learn and be an asset for the client. In my opinion, you should interview agents to understand their capabilities. Now many online companies and agents offer rebates to entice the clients to use their service. That sounds amazing until a problem actually occurs and then everything goes to hell because more than 80(%) of them do not know how to resolve the issue or a crisis and then everything goes to hell. And also because they're part-time agents, you'll be trying to reach them and they will be MIA (missing in action) because they'll be at their regular jobs while you're dealing with a crisis. 3. Hiring an agent who is well respected in their industry and community with a strong network with other agents is also very important. They can get your offers accepted based on their reputation and find you homes on off-grid networks where you will not find these homes on the public domain. 4. Understanding your needs It's very critical for an agent to listen and understand your needs and requirements. As a buyer you must communicate your requirements very clearly so the agent can formulate a strategy and then execute it now having a realtor by your side who's a good listener is very important too an agent who listens and understands you and your needs can pivot appropriately and get you close to a successful match with your home. 5. Strong negotiator You also need a strong negotiator a real estate professional who knows how to negotiate the price and terms for their clients can be an amazing asset even in the hot market that we are in now. An agent can very quickly make you overpay for a home. Our team runs comps and guides the buyers on where the reasonable price should land. I have personally stopped clients from writing crazy offers because the value wasn't justified. Now a smart agent knows what number and strategy will be the best suited for your situation. 6. Provides reality check One of the most important things that a lot of people forget is providing a reality check for you as a buyer and that's a great value that an honest professional can add and bring to the table. Just agreeing and going along with you and your demands knowing fully well that those things do not exist or they cannot be delivered causes unnecessary stress and distress for the buyers. Now it's important in my opinion that your realtor deals with your demands or unrealistic expectations with common sense and incredible honesty. And an agent who has the power to say no to you is the one who will deliver the best results for you as well. Now if you have been out shopping for anything from services to goods you know very well that it's easy to get cheated with the fluff that's presented to you. When was the last time you made a decision of buying goods or services that were cheap and later on ended up regretting them? I'm guilty of that. I've done it too but I realized my mistakes pretty quickly. READY TO CHOOSE A REALTOR IN SAN RAMON? Making the biggest purchase of your life is deserving of finding the right partner by your side the right realtor by your side can determine the direction of your financial future through the acquisition of your asset If you are considering buying a home or you're already in the market give me and my team a call at 925-415-0835 and we look forward to talking to you and assisting you in your purchase. _ Was this helpful? Does your current realtor have all the characteristics Rama mentioned? If you're still undecided on working with a realtor, give us a call at 925-415-0835! The whole team's is trained to have all these qualities Rama just mentioned in the video! Did you miss our very first episode? Watch it here!
EPISODE 1: Who was Rama's first ever client in San Ramon?
With Rama's track record of $900M sales in San Ramon and other areas in the Tri-Valley since 2004, one would assume that she started out in the most ideal way. You might be surprised to know that the first transaction Rama did was with lots of obstacles along the way. This only paved the way for her to truly become one of the most excellent agents in San Ramon and even beyond! HOW RAMA STARTED TO WORK AS A REAL ESTATE AGENT IN SAN RAMON So, I got into real estate in San Ramon about 18 years ago and I used to work a full-time job when I started my real estate career and at that time my HR Manager wanted to buy a home. And I helped her buy her first home. And during the times when the downturn happened, I had moved on from that job and she had moved overseas leaving her son and her elderly mother behind in the home. Unfortunately because of the loss of her job and income she was unable to meet up with the payments and wanted to short-sell her home. So she was the first client who actually trusted me in helping her buy. What the market did was something that was, you know, not known to any of us that it would ever happen. DIFFICULTIES OF SELLING A HOME IN SAN RAMON THAT TIME So while she was overseas I got on with her and figured out a way to negotiate with the banks to get her home short-sold. It was sad to short-sell the home but unfortunately the financial circumstances were such that she had to undergo that situation. I negotiated a relocation package for her family. Until today we're friends. We communicate and it was such a great learning experience sitting with the banks at four o'clock in the morning because they were all working eastern standard time and getting that stuff negotiated for her. It just felt so good and it was such a big learning experience for me to start in short sales at that moment. SHOUT OUT TO RAMA'S FIRST CLIENT IN SAN RAMON A shout out to Allegra! We miss you! I know you're well settled now overseas and who knows whether you'll ever come back to the US but we miss you and once again from my heart I thank you so much for the opportunity to trust in me! _ What do you think of Rama's first client's story? Watch the second episode here where Rama talks about the 6 essential characteristics your realtor must have!
4 Reasons Why This is Not a Housing Bubble
In a recent survey by realtor.com, it is revealed that 77% of buyers and sellers believe that we are currently in a housing bubble. That is why many are currently refusing to make a move and delaying their plans until next year. If you feel the same about the market, we're here to let you know that this is not true. Let's look at the following graphs of data that show the true condition of the market. 1. Houses Are Not Unaffordable Like They Were During the Housing Boom There are 3 things to look at for affordability: the price of the home, the income of the buyer, and the current mortgage rate available. It is wise that the buyer should not spend more that 28% of their gross income for mortgage payment. Let’s look at the 3 components in the previous housing bubble 15 years ago: prices were high, income was low and the mortgage rates are around 6%. Today, even though prices are still high, the income of buyers have increased and the mortgage rates are well below 6%. This goes to show that houses are more affordable now as compared to the past. In the chart below, you will see that today, buyers are paying a smaller percentage of their income at compared to the 34.1% being paid last 2007. 2. Mortgage Standards Were Much More Relaxed During the Boom Another reason why we’re not in a housing bubble is the higher standards set by lenders when screening buyers. During the housing bubble, it was very easy to get a loan. Now any credit score between 550-619 is considered poor. In the graph below, there’s a significant decrease of purchasers with a credit score less than 620, so the purchasing population now is more qualified to pay for their loans in the long run. 3. The Foreclosure Situation Is Nothing Like It Was During the Crash The biggest difference would be the number of foreclosures from 2007 to 2010 and from 2018 to 2021. The forbearance program impacted the numbers of 2020-2021. Many homeowners were helped to go through the pandemic. Those owners left in the program are now working out their repayment plan with their banks. There are fewer foreclosures now because the equity of homeowners is high. During the housing bubble, homeowners immediately withdrew their equity once it was up. Home values fell so much so that the mortgage was higher than the home value! Many homeowners left their homes, resulting in more foreclosures and short sales, further lowering the home value. Homeowners are much wiser now. Even though they have high equity, they are not utilizing it, that’s why the current average home equity now is at $300,000. With this number, the housing crash is highly avoidable. 4. We Don't Have a Surplus of Homes - We Have a Shortage Unlike before, we currently have a shortage of homes. This means that the prices of homes are least likely to go low. Below shows the number of homes for sale in the month of December in the years 2007-2010 and 2018-2021. If you are anxious that there will be a housing crash, let these graphs backed up by data erase your worries. However, it is still best to work with a realtor that you can trust. Someone who will honestly tell you when to move forward or to take a break in buying or selling. If you don’t have that kind of person with you, call us at 925-415-0835. We’ll make the whole process smooth for you.
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