What You Should Know About MLS !

Specializing in expired listings one of the most common complaints I hear is the sellers "didn't like their listings".  I've written plenty of blogs reminding homeowners they are the boss but there is one entity higher up than the homeowner when it comes to your listing and it is the multiple listing service better known as MLS !

Many homeowners are unaware of certain rules when it comes to the listing and how they enforce these regulations.  There is also a separate entity that enforces actions of real estate agents and brokers which is the "ethics committee" but for this blog we will be focused on MLS regulations.  

Pictures

• First rule of MLS you must post a picture within 10 days of the home being listed.  If it is not MLS will be more than happy to take the picture for you and a hefty charge to your agent will be attached ! Keep in mind this will only be one picture and chances are not the best allowing your agent to keep an exclusive while waiting for pictures to be taken (hopefully by a professional) is the best way to deal with this.
• Another regulation is the amount of photos and what it is allowed to contain.  While most homes do not get near the max limit higher end homes often can - MLS will only allow up to 20 photos per listing.    Signage is not permitted in any of the photos also "branding" is not permitted in any virtual tours.  
• Let's take a moment and discuss one thing that should not actually become a regulation !  If your agent is taking pictures please relocate your animals so they are not in the photo, I'm an animal lover but they do not need to be the stars of your listing ! That being said if your agent takes photos with you in them you should find a new listing agent, this is one of a realtors pet peeves its up there with no photos at all!

Your Listing Description 

• Biggest complaint I hear is homeowners want more information on the description, unfortunately sometimes it is just not possible to fit everything.  There is a character that we can not change.  In order to fit as much information as we can often abbreviations will be used this is not a lazy realtor or office staff tactic this is the way we are able to really describe the property !  Now some may take this to the extreme so I will give a brief list of common abbreviations.   EIK, LR, FDR, CAC, IGS 
• This is also an area where agents are not allowed to put any information that will direct buyers to the listing agent.  The only way for the agent to get potential buyers to contact them directly is on sites in which they are able to be branded ! You will need to discuss with your Realtor prior to listing what websites that they will be branding.  

 Showings

• You may not think MLS couldn't possibly control how or when your listing is shown but they most definitely do ! Any home that is listed must be available to be shown within a timely manner.  Keep this in mind when your reviewing the showing instructions which you should be reviewing with your agent prior to signing anything ! 
• If any home is unable to be shown for more than 10 days must be removed from MLS, there are times when you may not be available for a few days which is why the 10 days is allowed.  If your in need of this kind of break your agent can place it on TOM status on MLS with a date for showings to begin again which is important for other agents to know ! 

Any Changes Regarding Extensions or Price Changes 

• This is more than likely the one thing that drives homeowners a bit crazy - simply verbally telling your agent you want to extend or change the price of their home is not an option.  MLS will randomly audit listings and if we do not have the "Report of Change" filed simply saying it was done verbally will not suffice.  For legal reasons this is also a protection for the seller that the listing can not be changed without them being aware of it.  

Now there are certain items that MLS will send to the ethics committee but homeowners should know about so they know if their listing is in compliance !

• Financing  Terms - Unless your looking at a new development condo/co-op you will only be able to ask for a additional pre-approval ! You can not force a buyer to use a specific company for financing.  
• Directions - This is another pet peeve for Realtors - if your agent writes "See Mapquest" or "Google Maps" they are illegal and is an ethics issue your agent must write actual directions ! 
• Show Instructions - They can not include phrases like "Don't Bother Showing If ........ " that is an ethics violation ! This is the area to put if their is notice required or agent needs to accompany ! 

For the PDF File which includes all MLS Rules & Regulations Download Here ! 

Common Questions About Closing

Often times as agents we come across certain questions or situations that are quite common to us, the job of a real estate agent is not only to help you but to educate the public on all things real estate.    These next few blogs I want to address each situation and the common questions or fears that a buyer or seller may encounter.  Each week will be a different topic - if you have a specific question please feel free to comment and I will make sure to either answer you directly or write a blog specifically to answer your question !

How Is The Closing Date Determined ?
Your closing date is determined usually between 4 - 6 weeks from the time you go into contract.  Often times sellers will ask why the date on the sales agreement is different from the date in the contract.  This normally will take place because the date on the sales agreement is 4 - 6 weeks from the day the offer is presented.  If negotiations take a week, or there is a delay in order to perform a home inspection the attorneys will extend the closing date to give the buyer adequate time because of the delay.

What Is The Closing Date VS Commitment Date ?
In all real estate deals that involve a bank there will be a smaller window of time for the buyer to obtain their mortgage commitment - this is generally 30 - 45 days it is the most important part of the transaction.  After the commitment is received there are still additional steps left to be able to get to the closing table including the title report and information they may request.  These are the items that generally take a bit longer to pull together which is why they have 2 dates for these items to be completed.

Why Does The Kind Of Deal Effect Closing Date ? 
All Cash deals tend to move a bit quicker because their is no bank involved so you move straight to simply waiting for a clear title without having to wait for the bank.  Cash deals are still entitled to home inspections but typically the home will be sold as is so their will be no repair requests to be fulfilled.

Deals that involve the buyer obtaining a mortgage are at the mercy of the bank, unfortunately not even the buyer has any control on how quickly or slowly the wheels will go into motion.  The bank appraiser will also play a role, they are a hired 3rd party and also do not answer to the buyer.  The amount of time it takes for them to complete the appraisal and the bank to receive and approve it can take time.   The larger the bank does not always mean they will move quicker than a smaller bank because they will have many loans that need to be serviced.

How Much Time After The On Or About Date Do You Have ? 
There is a "grace period" from the on or about closing date, the reason why is because sometimes the timing of a move can be tricky.  If the seller is moving into another home it may or may not be available, or buyers could be moving from another state or area.  Because the timing is something that might need to be finessed a bit you are given 30 days from your on or about date to get to the closing table.

Can Either Party Require Closing Before The Closing Date ?
Typically no one can "force" a buyer or seller to close before the on or about date.  Even if buyer and seller agree they want to move quickly getting it on paper involves a few other important parties.  The attorneys of course will need to be available, but the schedule of the bank attorney as well as the title closer need to be available as well.  This can sometime push a closing to a later than one may want - if you need to close quickly giving your agent a realistic date for them to help you navigate if the buyer or the home is right for you is very important.

Can A Seller Simply "Change Their Mind" About Selling ? 
The seller can always change their mind, but often financially it is not recommend.  If the seller defaults you can sue for specific performance forcing them to sell the home.  They will also become responsible for the costs that you had from appraisal/mortgage fees, inspections, and even agents commission.  Once you have hit the "On Or About Closing Date" if they seem to be a bit hesitant on the sale you can & should request a time of the essence letter to be sent out regarding your closing.

Can A Buyer Simply "Change Their Mind" About Buying ? 
Just as a seller can back out with repercussions that same goes for the buyer.  There are a few circumstances though for a buyer where they will not be in breach of the contract.  If they are unable to obtain a mortgage, this is not something that they can just say.  Their must be a letter from the bank which proves that they applied for the mortgage and it was denied.  The buyer also has the right to re-negotiate if the home does not appraise for the sales price - if a new price is not agreed upon they have the right to not purchase.

So Many Houses, How Do You Make It Easier ?

With so many homes on the market, buyers have more than a few homes to choose from.  The larger area you are looking in you may find it a bit overwhelming getting in to see them all, as well your agent will be calling you with much more in the way of updates on the homes.  This blog will help you make it through the process of finding the right home, and keeping it from being an overwhelming and sometimes confusing process.

Decide What Kind Of Sale You Want & Timeline ! 

• Even if you don't have a rush on your move, you should have a ideal timeline in which you want to compete your purchase.  This will help your agent narrow down homes by the type of sale and put them in an order which will allow you to know what homes will be quicker sales than others.  
• The type of sale is also important for what kind of representations you want the seller to provide.  Typically short sales and estate sales will not be willing to do any work or repairs to a home, verse a homeowner who normally will be willing to do repairs or treatments to the home.  

Set The Time Aside For Your Agent

• When your looking to set up private viewings of homes, your agent will normally need to give at least 24 hours notice to get into listings, but we will need another 24 hours to be able to get status updates and get those appointments confirmed.   This is something that is very important because you will not want to rush through the homes so your agent being able to schedule them with time in-between is very important.  Typically I always figure that we will be in the home for at least 20 minutes, but remember that their will need to be travel time as well.  
• When you are heading out with your agent you may not want to see too many in one day.  The reason why is because you will begin to forget what homes had what, as well as your true feeling for them.  After seeing anything more than 6 houses we find that buyers and agents alike begin to rush through them, although not on purpose and it is always best to not overwhelm yourself.  

Let Your Agent Do The Work 

• Trulia & Zillow are very informative websites but you should be utilizing a Buyers Agent.  As agents and brokers the information we are able to see on listings are not the same.  We are able to go thru listings and see if the home is a strictly cash deal , in some cases it might be sold with tenant still occupying, or simply temporarily off the market.  You will also see that those sites will have homes listed as "pre-foreclosure" which means that they will not have typical showing instructions because they are not currently listed they are based on foreclosure notice. Allowing your agent to pull the listings for you, not only will you get listings but they will be the kind you are looking for ! 
• You will be receiving hi-lite sheets from all homes, you will want to let your agent keep track of those that you did not like this way their is a record of them, and keep only the homes you liked.  I provide all of my buyers with copies and binder to keep all of the information we receive in, this also helps when it comes to placing offers.  

The best piece of advice I can give to any buyer who is thinking about buying a home is to unitize the experience of a Certified Buyer Representative and sign into a Buyer Broker Agreement.  There are many reasons why we recommend this to you which you can find the blog HERE. 

Who Does Your Agent Work For ?

Many of my readers as well as my colleagues know that I believe in open houses, holding not only my own but for other agents in my office as well.  During these open houses I meet many buyers both whom have agents and ones that do not, and some that don't actually know what they have !

I've written many blogs explaining how and why it is in my opinion all buyers should use a buyers agent and that this relationship is created by a conversation not by assumption.  Many buyers have attended my open house and than come back with their agent but I can see my the representation that they are actually working as a brokers agent.  Often times buyers assume if an agent that takes you into a listing other than their own that they will be representing the buyer but this is not always the case.  

Today's blog I want to focus not on the legal state terms used to decide or explain representation but how the buyer has all of the control of their representation but aren't aware of it.  

When Attending Open Houses, Hosted By Another Agent Who Do They Represent ? 

Just because this agent is not the listing agent does not mean they automatically represent the buyer.  The action of holding an open house other than your own does not make you a free agent, because listings are actually owned by a company rather than agent therefore the representation is Brokers Agent.  This simply means they will still be working for the seller, when attending an open house when you have no representation I say listen more and talk less.   

If your interested in that home and want to put in an offer, the brokers agent can present the offer for  you but be careful of the information you give away. Disclosure dictates that any information pertaining to the sale must be passed along to the seller, so simply not giving away too much information is in your best interest.  

Can That Agent Represent You As A Buyers Agent On Another Listing ?

Absolutely but this shouldn't be assumed, you should call the agent and express interest in meeting with them to discuss what they do when working as a buyers agent, their commission, and most importantly what will they do for you.  

Just like when we take listings our terms and marketing plan are very important so is our plan for our buyers.  There are specific things a buyers agent should be expected to do like find you listings to view, attend private showings of these listings, help you find a reputatable mortgage broker.  These things in my opinion are truly the most important parts of having a buyers agent. 

I Have A Buyers Agent, But They Aren't Doing Anything ! 

Well the great part of taking the time and having a buyer broker means there should be a document stating what they agreed to do.  This also means they will have to either start doing there job or you can find another agent.  The best way to make sure this doesn't happen is give it a test run sign a short contract say 2 weeks to try it out, if it's a good fit and if not simply have the awkward conversation.

Just like with any relationship there are just some that don't work out, you may not mesh well with your agent.  Considering that this is a huge decision and investment I always say find one that is a good fit.  I have worked with a large amount of buyers and sellers, and can admit that there were a few of both over the years that I did not work with because we just weren't the right fit for each other.

In many cases where I see buyers agents not doing what is expected of them is because the assumption was that they were using a buyers agent, and the reality was they had a brokers agent.  The way we can see this is when your agent schedules an appointment they will need to inform our office of who they represent.  I would say in 95% of the cases the dis-pleased buyer was working with a brokers agent without being aware.

Taking the time to have the conversation will outline what you expect of your agent than have it documented, this way all parties are aware of what is expected from one another.  Almost all offices have a buyer broker agreement available, mine is available on my website for PDF Download.  I recommend looking it over and discussing each of the important points with a few different agents and than choosing one that you would like to go see a few homes before committing to a long term contract with them.  

What Actually Takes Place During A Bank Appraisal

With many homes going to contract, buyers and sellers are both going to be having their homes appraised.  The biggest question I receive is what actually takes place and when, so this brief blog will give you a general overview of what you should expect to happen and what your agent should be doing !

When Does A Bank Appraisal Take Place ?

• Typically your appraisal will be ordered within a week or so of your buyer applying for the mortgage, your agent whether your the seller or buyer should contact the mortgage representative to check on the procedures of each bank.  Some of the larger banks prefer to do the appraisal after all the documentation requested of the buyer has been submitted.  Most common banks that leave appraisal towards the end are Wells Fargo, Chase, and Continental Home Loans.  If your using a mortgage broker, than you are more likely to see the appraisal done sooner than later.  

Who Should Be At The Bank Appraisal ? 

• Whether I am working as a buyers agent or as a listing agent, I always attend my appraisals.  It is extremely important in my opinion for both agents to be involved to make sure that the appraiser is getting all the information that is needed, because without the home appraising properly it will not sell.  Appraisers are hired as a third party, so you want to take the opportunity to communicate with them and share your knowledge when you can.  
• The homeowners I often will not ask to leave the home during this process, depending on the appraiser and how thorough they are can take from 30 minutes to an hour.  When the homeowners are there for the appraisal we just ask that you allow the appraiser to walk through the home freely.  

What Does The Appraiser To While They Are There ? 

• The appraiser will typically note the numbers of rooms, size of the rooms, and take pictures to show the bank the condition of the property.  They will also take pictures of certain things specifically the heating system, electrical panel and roof.  They will also take measurements of decking or sheds to make sure the proper permits are in place for the home to have those items.  
• Either before or after, they will also scope out other homes in the area that recently sold which they found on MLS.  Once they have seen those homes although they can't go in, they must fill out a large amount of paperwork for the appraisal to be acceptable to the bank.  They will credit and debit for things as need to come up with the value of your home.   This is why real estate agents always insist on using the comparable homes in the area to determine your list price ! 

When Will The Appraisal Be Complete & Who Will See It ?   

• Appraisals will be sent to the bank within 48 hours of it being completed, remember they are hired as a third party.  The bank should notify the mortgage representative within a maximum of 5 business days as to whether the home appraised for.  
• The only one entitled to see the total appraised value is actually the buyer, as the seller your have the right to know if it was appraised high enough for the sale but not the specific number.  If your home does not appraise and did not include any sort of sellers concession than you will need to speak with your attorney to decide what negotiations you would like to go forward with.  

How Is Your Closing Date Determined ?

Closing dates are often a bit confusing to people, one would think that closing as soon as possible is always the only way to go but there are a few factors you will need to keep in mind.  There are steps to determining the correct closing date for both the buyers and sellers and will be tweaked during the process of getting into full contract.

Presenting An Offer & Your Sales Agreement: - This is when the buyer will be setting the "date" they would like to close, and does specify that is on or about.  However their will be specifics things that should be brought up at this point.

• Does the buyer have something to sell before they would be able to close on the purchase ? 
• Will the buyer be in a position to accommodate a seller whom need to make a purchase ? 

The on or about date can change from the time of your initial offer and contract signing if there was a significant amount of time between the 2 events.  Your attorney will be the one who puts in a "formal" on or about date.  

Contract Signing: Your attorney will be the one who will have the ability to change a closing on or about date if needed.  Typically most buyers and sellers are unaware that their are actually 2 dates in the contracts that will be binding.  

• The mortgage commitment date, is the first aspect of the contract.  This specifies how long the buyer will have to get a mortgage which averages from 30 days - 45 days from the day of fully signed contracts.  
• The true closing date, is what specifies you actually getting the sale finalized.  The reason there are 2 different dates is because not only do you need a mortgage commitment you will also need to obtain a clear title, proper permits, certificate of occupancy, and surveys.  This can sometimes bring some un-expected time delays.

How Long After Your On Or About Do You Actually Have ? 

There are many factors that can come into play during the sale or purchase of a home.  You have a "grace period" from 30 days of your on or about closing date.  There are times where that can be extended past that but clear communication is an absolute must in order for all to go smoothly.  Your attorney and agent should be in touch with one another so that they are aware where in the process all the moving part are.  

Closing Dates On Short Sales: 

Short sales and foreclosures are often a bit unpredictable because although they buyer may have nothing to sell, and the ability to close quickly the paperwork for the sellers is much more involved.  

• You will be in contract longer within a short sale because first you must receive bank approval on the price, but you can not get their approval without me in formal contract.  This is a touch thing to estimate because the bank is not able to give you a timeline of when you should expect to hear an answer regarding your offer.  
• Surprisingly to many people the smaller banks tend to respond quicker than the larger banks, this is attributed to less pending short sales.  Certain banks have now been required by law to respond to offers within a period of time to keep buyers from being stuck for months waiting for a response.  
• Once you have gotten the okay from the bank you can safely assume you will be closing within 60-90 days.  You will need to keep in mind the bank will make no representations, so your agent should be as proactive as possible by checking that the home has all proper permits and COs.  You can do this by filing a FOIL request with the local town or village.  

Relocation 101

Relocation can be a bit overwhelming, but with online shopping become much more common it is not surprising how many buyers we see purchasing homes without ever seeing them until move in day.  There is one thing almost all of these buyers have in common is that they relied heavily on their Buyer Broker to be their eyes and ears during the purchase and the search ! If your considering relocation here are some helpful tips to make your relocation a successful one !

Speak To Your Employer:

• If your relocating for work, many employers have a specific division in the company that can help you find all of the necessary parties to help you make the transition.  As well some companies will pay for some of the expenses of that move.  
• Some companies will often work with actual real estate relocation companies, one of the largest being Cactus Relocation, who only works with the best real estate companies.  Coldwell Banker Residential Brokerage is part of their team for information you can check out our Relocation Site Here. 

Decide On Your Must Haves: This is a bit different than a normal home search because we aren't just talking about bedrooms, baths, or style you will need to think about some other important characteristics.  

• Location: You will be relying on a third party to help you find the perfect location, so communicating how close or far away you would like to be to major roadways, transportation, or even schools is very important information for your agent to know.  
• Amenities: Are you looking for an area with an incorporated Village with private pools or marinas, this is also very important for those who are looking to go into Condominiums, and Townhouse Communities. Each community will offer not only different amenities but also different requirements to purchase, you will want to be aware of this before beginning negotiations.  
• Home Characteristics: Of course you will still want to have specific homes "likes" and "must haves".  Be sure to review this list carefully with your realtor so they understand the physical size of the home so that on move-in day all of your items will fit ! I will often go out and preview the home and take video while I am there so my buyers can get a good feel for the homes flow and size.  If your looking to fit specific size furniture such as large bedrooms sets or wall units asking your Realtor to be sure it will fit before committing to the home is a good idea.  

Get Your Finances & Time Management In Order: 

• Finances: Make sure you specify with any mortgage company that the purchase of your home will be taking place with a more than likely job transition to make sure you will be aware of the additional paperwork that your bank might require. 
• Moving Cost: You will also need to prepare for the move a bit different than the normal buyer, speak with numerous moving companies to find out their pricing and the customer satisfaction once their possessions made it to the new home.  
• Time Management: This covers quite a few different aspects because you will want to coordinate with many different parties from making sure your possessions arrive around the same time you will, as well you will want to make sure your utilities will be in working order when you arrive, and give yourself time to unpack before beginning your new job.  

Most Important Choose Someone To Be On Your Side:

• You of course will need a real estate agent to help you find the home for previewing it, but keep in mind you will also be having home inspections, bank appraisals and final walk-thrus without ever stepping foot in the home.  Make sure you interview more than 1 Realtor until you find someone you feel 100% comfortable with.  My recommendation is always see how they are able to communicate with you during the interviewing process that will give you a good idea how you will be communicating during the transaction.  
• You will also need to find a home inspector and a attorney from the area to help you with the process.  If your working with a Full Service Realtor they should be able to recommend you a few different professionals to choose from.  Choosing local professionals will help because they are a bit more familiar with the area, and the laws that go with it.  

These are just some of the important factors when it comes to relocating, if you are interested in finding out more about what Long Island has to offer please take a refer to the Community Information Page for school information and town amenities ! 

Should You Keep Renting Or Is It Your Time To Buy !

Many of my rental clients will often ask me for my advice when it comes to them renting or should they take the steps to purchase their first home.  There are some specific questions you have to ask yourself when your deciding to rent or to buy.  

1. Do you have enough work history ? You don't need to have worked at the same place but you will want to have worked steadily for about 2 years for most loans, if your applying with a co-signer than your work history can be a bit less if the other person has a good work history. 
2. How is your credit ? The average credit score to be able to obtain a mortgage is about 625, running your own credit to make sure you don't have too much outstanding debt is helpful and it can also help you correct any information that might not have updated on your report.  
3. What kind of savings do you have ?  There are costs that you will have to be able to meet to purchase starting with the down payment, and closing costs but you also home inspections and an attorney. 
4. How much time do you have ? If your currently in a rental and your landlord is not open to you staying on a month-month basis you may not want to rush into a purchase because of those kinds of time constraints.  

Here is a great tool that Realtor.Com provides to help you decide if financially would be better suited to continue renting or making your first purchase ! Rent Vs Buy Calculator 

There are also ways around the financing is some instances, there are options of grants, down payment assistance, flexible mortgage options that can put buyers in a perfect position to buy.  

• State/Town Grants - These are most common in Condo Developments where the State/Town is paying a large portion of the mortgage - Here is a current listing where the actual price of the grant is contributing about $40,000 and the buyer in turn is getting a new construction 2 bedroom condo for under $250,000 - Courtland Square Condo Development
• Down Payment Assistance - There are some programs that will match what you are able to put down on a home, or larger programs that allow your down payment to come from your loan without paying interest on that down payment.  Here are 2 helpful links for down payment assistance: Long Island Housing Partnership Down Payment Assistance - SONYMA Down Payment Assistance 
• Mortgage Options - You have many different mortgage options you can add sellers concessions to help with closing costs, or choose a loan that is interest only, you also have mortgages that increase your payments as it progresses allowing you to pay more when you financially will be able to.  To find out more about your mortgage options, you can fill out the contact for to speak with a Coldwell Banker Mortgage Advisor.  

Of course their are pro's and con's to both so here are a few that you should think about when your deciding which is a better fit for you ! 

Pro's Of Buying 

• Creative Control - You won't have the limitations of decor since it will be your own home to do what you would like.  
• Investment - You are investing in your future with the current market conditions, buying will put you in a great position in the future. 
• Tax Breaks - You have the ability to take deductions that you ordinarily do not get simply just paying rent, even property tax has exemptions for just living in your home, and veterans as well. 

Pro's Of Renting 

• Flexibility - You have the option to move around into different areas, this is important for those who maybe are thinking about switching jobs you can move where your work actually is, moving for those who own can be more difficult. 
• Less Maintenance - The responsibility of general maintenance in most cases does not fall on you, those details are handled by someone else.