7 Bargaining Secrets for Luxury Home Buyers
If this is the worst real estate market (for sellers) in recent history, then surely it creates some of the best buying opportunities of a lifetime as well.
We are seeing smart money aggressively buying in our San Diego real estate market, and hear reports of the same elsewhere. The properties are being bought as fix-and-flippers or are being held as longer term rentals.
We receive inquiries about these homes almost daily; but more recently, we are being consulted about strategies for buying luxury homes at bargain prices. These buyers may not have to sell their existing home to buy another, or are open to exchange possibilities.
Below are 7 strategies we use to help our luxury home buyers (and others) get some of the best luxury bargains on the market.
- Study Market Time: Luxury homes in general may take longer to sell because of pricing, custom features and a more limited pool of buyers. But that doesn’t mean sellers are any less motivated to move on with their lives. At one time, we thought little of $million-plus homes sitting on the market for 90 days or more. These days, we seek buying opportunities if a home has been on the market over 60 days and are seeing some heavy price discounting if days on market goes over 90 days.
- Check Tax Records and other Sources: Is there more debt on the home than what it is worth? Has a Notice of Default been filed that would indicate a looming foreclosure? If so and if this is a home of interest for our buyer, we submit an offer contingent on the successful negotiation of a short sale (where the lender sells the property for less than what is owed). In this case, either we or professional negotiators deal with the lender(s) to reach the best possible price for our buyer.
- Did Owners Pay Cash or Have They Owned Their Home for Longer than 10 Years? These sellers may be in a position to sell at a discount or may be motivated to do so due to life transitions or other investment opportunities. They may also be open to owner-financing for all or part of the home mortgage.
- Are You Open to Remodeling? Homes sold in as-is condition are more likely than others to sell at a substantial discount. Owners, especially when the home has been on the market for some time, are often overwhelmed with the thought of remodeling and updating–and fearful that their decor choices will not suit potential buyers. Especially in the uber luxury home market, older or outdated homes are sometimes sold at land value.
- Foreclosoure Sales: The f-word (foreclosure) is occurring even in the luxury home market. Highly leveraged homes purchased in the last few years are more frequently ending up on the courthouse steps. Foreclosure purchases, which require cash and carry no disclosures or guarantees, offer both great potential for profit–and dire dangers for the uninformed. Bidding should be non-emotional and it is best to have a professional bidding for you–but only after thorough-as-possible research has been done regarding the home’s condition, its history and resale potential. Cracked slabs, structural defects and boundary line encroachments are unwelcome surprises.
- Home Exchanges: This is a rather novel strategy for those trying to sell their luxury home in a bloody market. Life transitions encourage luxury homeowners to make moves. Empty-nesters may wish to relocate from their large estate to something equally posh but far less demanding in upkeep. Others may have expanding families that crave acreage, pools, tennis courts or equestrian facilities. In the Southern California market, Owner-Broker Bob Dyson and Villa Sotheby’s International Realty have set up a property exchange platform that allows homeowners to directly exchange properties and ownership. It is a tactic that helps to support neighborhood values and removes many of the pressures involved in having a home on the market for an extended period of time.
- If the property you want is listed, have your agent check the other real estate agent’s listing history. If that agent tends to have listings on the market for a long time, you may wish to lower your offer. On the other hand, if the agent prices properties aggressively and has short “days on market,” you may consider coming in near to or at list price. You will likely find the listing is already priced at or below market to attract multiple offers.
A combination of patience, perseverance and the ability to move quickly will serve all astute buyers of real estate these days, but the greatest potential of all may lie in the luxury real estate market where replacement value could far exceed the purchase price.
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read comments (17)A Radical Proposition for Real Estate
by Roberta Murphy
I really want to talk about the effect petroleum costs will have on real estate, but first wish to tell a little story:
My grandgather, Adolph Michelson emigrated at the age of 7 with his family from Norway to Deadwood, South Dakota. It required a long, hard journey by steamship. train and wagon to arrive at their eventual home in the steep hills above Deadwood. It was there that they lived with other immigrants and Indians, sharing magnificent views and boot camp workouts as they trudged up and down that steep, steep hill to get to town for work, school, food and other supplies.
Views be damned. This was where the poor people lived.
As soon as the Michelson family could afford to do so, they moved their big family into a home in town, where shopping, school and employment were within easy walking distance. Their decision to move was not based on home features, the quality of the stove, or the number of closets–or even neighborhood amenities. It was based on that single and most basic real estate dynamic:
LOCATION
It is only since the advent of sprawling suburbias and each family having multiple automobiles that we strayed from distinct town and country living. The wealthy may have had homes in both locations, but the average family lived near employment . There were no school buses (or video games because kids had to hike through miles of rain and snow to get to school each day) and gasoline stations were pretty rare at the turn of the that other century. Which all leads me to wonder….
What might be the top priority for the home of the future when gas prices reach $6, $8, $10 or even $12 per gallon?
How about the radical choice of living walking-close to employment, shopping and schools? Or living near a bus stop or transit center where one can commute for work, school and fun?
I am eying real estate differently these days–and am coming around to my ancestor’s way of thinking. Location trumps views, walkable sidewalks trump big back yards and a bicycle pump beats a gas pump–at least for kids who drive or are driven to school (ever seen the long lines of mini vans idling outside our schools at arrival and departure times–or high school parking lots?). Might a more urban lifestyle offer some solutions that would allow for a saner lifestyle?
I am also wondering if Carol Lloyd’s prediction of suburbs turning into Slumburbia might also come true–sooner rather than later due to rising fuel costs? In her SF Gate article, she notes, “In Europe, where the cities never died, the suburbs have long been the homes of last resort for the poor and the marginalized.” This is already occurring in and around sprawling urban centers like Houston, where home prices in and close to downtown Houston are selling at a premium, while homes in once-affluent suburbs are selling at prices far below replacement costs. It is a scenario being repeated all over the country, with slightly different configurations along the coasts.
In San Diego County, where I live and work, we are anecdotally seeing a surge of buyers seeking to live within walking distance of restaurants, theaters, dry cleaners and food or farmer’s markets. They no longer want to battle freeway gridlock, and would happily trade their road warrior status for the peace of riding a train to work. They are also seeking more open communities, where neighbors stroll by and greet one another, where not so much of life is lived in and for cars–or behind mortgaged garage doors.
I am so, so tempted to join them….
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Nouveau Luxury Home Buyers: Instapreneurs
Who are these young and ultra-affluent buyers of homes in Rancho Santa Fe, Palm Beach, La Jolla, Aspen and Manhattan?
Robert Frank, in his best-seller Richistan, calls them instapreneurs (didn’t he coin the term?).
These are the new titans in technologies, who have benefited from a rise in financial speculation and governments that support free trade and wealth.
Instapreneurs are not plodders when it comes to accumulating wealth. They don’t develop companies to last for family generation; rather, they may launch several companies over their career life spans. And the goal for each venture is a lucrative “exit strategy” that will create the fattest windfall possible.
What are these luxury buyers seeking when searching for their trophy home?
1. They are specific in their demands as to age of property, views, room volume, luxury closets, privacy, and entertaining areas.
2. Instapreneurs often wish to be near prestigious country clubs, where they can golf, play tennis and entertain business elite.
3. In San Diego, many of these nouveau uber-wealthy demand ocean frontage, ocean noise–and silent streets. Or the highest penthouse in downtown San Diego. The want what is rare, what is singular.
4. Instapreneurs often have children, and are concerned about the quality of nearby and private schools. How the home works for the kids can be of keen importance. Instaprenerual parents want safety, space and room for kiddie galas.
5. These luxury home buyers often have special room requests, such as a library, multiple offices, servant quarters, guest houses, snoring rooms, home gyms, massage rooms, a conservatory or even a panic room.
6. These busy people often demand to be not far from a major airport because of frequent travel demands and the desire to minimize time spent away from families.
We enjoy working with these interesting folk, not just because we enjoy finding perfect property fits, but also because of the stories we get to hear. Some have been scientists, some movers and shakers in technology, and some who just had the courage to pour everything they had into an idea whose time had come.
They all inspire and the world is a better place because of these producers.
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The Luxury Shower (and 5 Tips on How to Create One)
Once upon a time, the lowly shower offered faint competition for the jetted bathtub.
The bathtub was where one went to luxuriate, while the shower was a functional cleanser.
Not any more.
These days the lowly shower is one of the hottest home luxuries in demand. The shower stall might contain a steam shower, a multi-headed storm of warm water, or simply a place to stand under a rainfall of ambient temperature.
More and more, as we tour San Diego luxury homes, we are seeing the shower stall (or room) overtake the once dominant bathtub. And even if the shower stall doesnt have a steam feature, discriminating home buyers will often stand back and scrutinize the possibilities of extending glass walls to the ceiling so that steam features and functionality can be installed.
What are these luxury buyers seeking? They want oversized shower rooms with a tiled seat and multiple shower heads. They also like the possibility of sharing the luxury shower with others.
Hence, dual shower heads are also popular. On busy mornings or playful evenings, it might be necessary, compelling, or just plain fun to shower in toto.
These days, the luxury bathroom is closer to a luxury spa than the tiled bath with sink, toilet and tub of the last century. Owners now want not only the jetted garden tub, but also a high-performance shower system that can deliver calming massage sprays as well as invigorating jets that might awaken the most sleep-starved soul.
And even if a complete shower overhaul is not possible, there are some alternatives and remedies to consider:
- Consider installing a shower arm extension to raise the shower head. Most older homes assumed that nobody in the home stood over 5² 5³ tall.
- If you are considering relining the shower stall, consider alternatives to the traditional tile. How about travertine or other stone products?
- Is it possible to add a second shower head especially if there is a tub and water supply nearby?
- Be sure to locate shower head products that accommodate your local water pressure. The higher the better.
- Want a steam shower? When remodeling the bath, this might be an alternative to consider especially if the glass enclosure and door can be brought to the ceiling.
Other luxurious appointments:
The Self Service Spa (Do it at home?)
Induction-Cooktop for the Luxury Kitchen
Ultimate Phone for the Luxury Bath
Switchable Mirror Glass Windows
SONOS: The Ultimate Sound System
Haute Refrigerators for Cool Kitchens?
Luxury Wine Storage for Oenophiles
Email Us or call 877-818-8197 or call/text me at 760-402-9101
San Diego Real Estate Exchange
Bob Dyson is a real estate legend who recently launched Sothebys real estate offices in the San Diego, Palm Springs and Las Vegas markets. He has kindly agreed to share some exciting news with us about a new real estate exchange program that is set to rock the San Diego real estate market mid-January.
This program will do much to liberate locked-up equities in homes throughout Southern California.
But Ill not steal his thunder.
by Bob Dyson
How I See It: Lets Liberate Home Equities
With all the alarming issues facing us in Real Estate ownership and all the turmoil in Real Estate lending, I have been searching endlessly for fresh solutions to these problems. What if we could create a new and faster way to buy and sell homes in todays challenging market? What if real estate buyers and sellers could focus on the deal instead of getting lost in the details of granite surfaces, designer amenities and upgrades?
We believe our home exchange program will help stabilize our troubled real estate market and could be a program easily implemented in other cities outside of Southern California.
Quick Facts:
There are more than 25,000 homes for sale in San Diego County. We believe there are also more than 19,000 qualifed buyers who wish to purchase a home in San Diego RIGHT NOW.
So where are the buyers and who are they?
They are home owners living right here in San Diego.
They are home owners with œFrozen Equity – people who want to relocate right now but must sell their home first.
The Media:
Granted, there have real problems with the real estate lending industry . And the media has done an excellent job paralyzing the home buying public, scaring them away from purchasing.
Recent statistics provided by First American Title Company show that in San Diego County, the Palm Desert/Palm Springs areas and Las Vegas, foreclosure activity is centered in small pockets of those communities.
Areas like Rancho Santa Fe, Del Mar, Indian Wells and Summerlin have experienced very little impact from local foreclosures; however, those communities have been brought down by media hype and generalities.
It seems that nobody at the media level, or especially the government level, is paying attention to details. Our congressmen who are holding hearings on these issue dont even know what questions to ask – much less are able to present viable solutions.
Been There, Done That:
In January 1993 – in a similarly challenging Real Estate Market – several of us in the industry began calling our listing clients and we asked them one question: œWhen you sell your home, are you moving up in price, down in price or out of the area?
From that calling session forward, our little group began selling homes at an incredible pace. In January of that year alone, we sold 48 properties.
How We Did It:
We took our clients who had good equity, good jobs and good credit and matched their wants and desires to move up with other clients selling their homes who desired to move down.
We simply exchanged properties. It was actually as simple as œIll buy yours and youll buy mine.
Two purchase agreements were drawn up, each contingient upon the concurrent close of the other. Both clients got new loans and became a buyer in one escrow and a seller in the other.
The process and the response exceeded our wildest expectations. We provided all parties with work sheets, we moved sales prices and new loan amounts around with our lenders and, in most cases, satisfied the needs of both clients.
Exchanging Properties in Todays Real Estate Market:
Today, we are taking our exchange idea of the 90s, dusting it off and are updating it with todays technologies.
What is evolving is an industry-supported effort to help buyers and sellers with good credit, good jobs and solid equity move NOW.
To best understand this new program please click on the following link to visit www.HomeExchangeProgram.com. The site is still under construction, but you can get a feel for how exchanges work.
Real Estate agents and sellers alike can participate in this program. The more of us who participate, the faster this Real Estate market will right itself and and help œAll Ships to Rise.
If you would like to discuss the Home Exchange Program, please give me a call at 858.481.2020 or email me.
And thats œHow I See It.
Bob Dyson
Bob Dyson is the Broker of Dyson & Dyson Sothebys International Realty in Palm Desert/Palm Springs, Calif. and Las Vegas, Nevada and Villa Sothebys International Realty in Del Mar, Calif. With nearly 40 years experience in the Real Estate Industry, Bob has become an industry innovation leader. In addition to his many years in the brokerage industry, Bob is also involved in real estate mapping and development and currently has several thousand acres in various stages of mapping and development in Southern Nevada and Southern California.
About the Company
Dyson & Dyson Sothebys International Realty and Villa Sothebys International Realty were founded in Southern California in 1988 under the name Dyson & Dyson Real Estate Associates. Offering a variety of unparalleled real estate services, the brokerage operates offices in Las Vegas, the Palm Desert/Palm Springs area, and Garner Valley under the name Dyson & Dyson Sothebys International Realty and in the San Diego County area under the name Villa Sothebys International Realty.
Each office is independently owned and operated.
Read also:
San Diego Real Estate Exchange: Barter and Banter
You may also wish to read about or search:
Email Us or call 877-818-8197 or call/text me at 760-402-9101
Commission Conundrum with Luxury Real Estate
A year or so ago, real estate circles were abuzz with argument and discussion about the pros and cons of discount real estate services and commissions. Discounter Redfin had opened with one agent in San Diego, and their CEO Glenn Kelman promised that real estate discounters would turn the real estate brokerage business either upside down or inside out (I dont recall which).
Beating Kelman at his own venture was Iggys House, which would list ones home for free, and a corresponding sales arm that rebates even more than Redfin. In between the two were countless other ventures that vied against each other in real estate commissions and levels of service.
In the ensuing months, we began to see not a decrease in real estate commissions, but instead a rise in commission offerings. Builders and desperate sellers were offering 3, 4, 5, 6, 7 and even 8 percent sales commissions on their properties. (Of course, with inflated commissions we tend to suspect inflated pricing and share this with our clients.)
It is unimaginable to this writer that the U.S. Department of Justice could even think that the real estate industry is capable of controlling anything, let alone commissions. Brokers have long lamented that trying to control real estate agents is no easier that trying to herd cats. If they cant convince agents to attend weekly sales meetings, how could one think that they could possibly œset commissions that their independent contractors charge their clients?
So what is the commission and service situation in todays more challenged real estate market?
According to the National Association of Realtors, the latest survey of buyers and sellers showed that 83 percent used full-service agents last year, while 9 percent used limited-service agents and 8 percent needed only minimal service.
Of course, I cant resist adding my own simplistic opinions regarding the issue of full service versus discounted commission/service real estate brokers. These answers of mine came as a result of one questioners queries on Trulia regarding the advisability of using a discount real estate broker:
Pros: You may save on commission.
Cons: You may not.
Pros: You may gain valuable experience in selling real estate on your own.
Cons: You may never want to go there again.
Pros: It can be a workable strategy in a sellers market.
Cons: It could be disastrous in a buyers market.
(You seriously ask a very good question. I just cant resist simple answers and wish you well regardless of your listing strategy!)
We have been in an indisputable Sellers market in San Diego for some time. Now, more than ever, real estate buyers and sellers need expert guidance in the purchase and sale (or lease) of their San Diego property. Your ultimate success in the purchase or sale of real estate in the San Diego marketplace will depend not only on expert guidance, but timing and flexibility.
Commissions become somewhat irrelevant when 1 percent in value per month could easily be lost to a sliding market. This makes it more important than ever for sellers to employ the services of seasoned and knowledgeable real estate professionals and for buyers to do the same.
And as for luxury real estate representation in this real estate market, I can shamelessly suggest none other than Villa Sotheby’s International Realty at the Del Mar Plaza in Del Mar, just outside San Diego. Sotheby’s service is without parallel, while their commission rates remain quite ordinary.For additional reading abour these real estate issues:
Why You Always Need a Good Buyers Agent
New Real Estate Danger: Cancellation Fees
Encinitas Bluffs, But Its No Joke
Palomar College Beefs Up as Agents Drop Out
Email Us or call 877-818-8197 or call/text me at 760-402-9101
The Luxurious Closet
In our coastal San Diego luxury real estate market, buyers are almost manic about their closets–and especially the ones in the master suite.
Luxury home buyers are most pleased when there are separate closets for each–or if single, closets for the seasons. The compleat closet in the luxury home will be spacious, well lighted and masterfully organized. It is a room where we prepare ourselves to meet the world–or simply the day. The closet holds our clothing, our personal treasures, our shopping triumphs. It’s status in homes has been elevated to be far more than functional storage. People now want to spend real time in their master bedroom closets.
And what are some features they would like to see?
- A staggered hanging carousel for shirts, skirts and jackets.
- A swing rod that comes down and elimates strain from reaching up for hangers–especially in closets with the more prevalent high ceilings.
- Banks of bureau drawers that are fully extendable, and which have super-quiet concealed glides that prevent snaggy contact.
- All shelves are smooth, snag-proof and have vertical dividers that can be adjusted for height.
- A built-in floor or wall safe for valuables.
- A few locking drawers.
- Floor to ceiling mirrors. Natural lighting is often achieved with protected skylights.
- Large spaces for organized shoe storage.
- A dressing bench.
- It is also a plus when laundry facilities are nearby.
Other bonuses and accessories in the luxury home master closet would be rotating show carousels, scarf and tie cellarets, lingerie caches, jewelry inserts, tasteful garment bags, decorative storage boxes, and wicker storage baskets with washable cotton liners.
If your closets come nowhere near this description (and my own do not), the best and first thing you can do (whether you plan to sell or not) is to clear it out and keep only those things that you love–and those which love you by hanging so well on your body. Look at your emptied closet and determine if it needs paint, new rods, shelves, scented shelf paper, or new lighting. Is there room for a mirror? A dressing bench? Might it be organized differently? Is there room to move in a small chest?
(If you follow Feng Shui guidance, this might also be the time to introduce needed elements to the room.)
This closet re-do is one that will yield great benefits to you, whether you intend to sell your home or not. There is nothing that beats the sense of peace and control that comes from having a beautifully organized personal closet that is used day in and day out. And if you are selling your home, it is a feature potential home buyers will appreciate.
The bedroom closet may be a small thing, but is one of the most frequently used spaces in the home.
Email Us or call 877-818-8197 or call/text me at 760-402-9101
Lenders: Pre-Negotiate Your Short Sales
by Roberta Murphy
We are trained and skilled negotiators. Give us a chance, and we could probably get hostages released from terrorists, convince a teenager to leave his tongue unpierced (perhaps)–or successfully negotiate a sale leaseback of the Brooklyn Bridge.
As competent Realtors, it’s what we enjoy doing, and we are passionate about negotiating on behalf of our clients.
Most successful transactions have been hammered out when we account for and respect the needs of both the home buyer and the seller. When we understand what each party really wants, we can begin to negotiate a successful resolution. And though each party to the transaction ( much like a molecule) has different missions, perspectives and requirements, we each function efficiently to facilitate the smooth transition of lives.
Short sales, though, are the real estate market’s free radicals that are contributing so much to its current decomposition and breakdown. And just like the free radicals that attack our health, short sales are unstable, highly reactive, and prone to creating chain reactions when combined with so many other short sales and foreclosures.
One only needs to go through burgeoning MLS inventory in distressed real estate markets to see the effects of this chain reaction:
- Non-negotiated short sales create uncertainty in the market prior to a sale because neither the Realtor nor the buyer/seller knows what price the lender(s) will accept–especially a second lien holder who stands to be totally wiped out because there is no equity to support the loan.
- Realtors have also come to realize that short sales entail much more work than the usual transaction, have a much higher failure rate, and have uncertain compensation if the transaction does succeed (lenders arbitrarily determine the fee). It’s far easier to work with a property that has already been foreclosed upon, or better yet, negotiate a purchase from a motivated seller who is obligated to disclose known property defects and any hidden liens. When a homeowner sells a property, everybody generally knows what to expect. The buyer is advised of repair histories, insurance claims, and other details the seller must disclose. Additionally, the home seller knows what funds to expect at settlement, and the agents who put the transaction together also know they will ultimately be paid. The title company or attorney has checked for liens or other outstanding claims against the property, and surprises should be few.
- Short sales are languishing unsold on the market, while foreclosures and market-priced homes are moving. Why? Because these latter offerings have some degree of certainty (beware of as-is disclosures, though) and time is not wasted trying to negotiate a price before the home goes to foreclosure. What we see happening in the San Diego real estate market is buyers offering less on a short sale than a foreclosure or owner-offered home because of this uncertainty, and not knowing the pricing floor.
Why don’t lenders pre-negotiate their short sales so they never have to go to foreclosure in the first place? Why not set a price prior to or just after a listing is taken? Why not set out clearly defined requirements for all?
It just makes sense.
When a homeowner needs to sell and owes more than what the property is worth, lenders should step in, quickly set a realistic sales price and handle negotiations with secondary lien holders if possible. These junior lenders may be willing to accept pennies on the dollar, rather than being wiped out altogether–and allowing the transaction to fail prior to ultimate foreclosure. Appraisals and BPO’s (Broker Price Opinions) could be done in advance, which would allow for realistic pricing that could compete with foreclosures and motivated sellers.
Additionally, sellers might be motivated to keep up with monthly payments, knowing that there is a resolution in sight. As it now stands, most lenders won’t even discuss a short sale unless the seller is seriously behind in payments.
Lenders, why not encourage some degree of responsibility on behalf of your borrowers?
Instead, agents and buyers are avoiding short sales because of the transaction failure rate. While buyers and their agents wait for lenders to decide what they are going to do, other desirable properties are being snapped up by more fortunate buyers. Though clean transactions are always more desirable, real estate agents would rather represent their buyers in a foreclosure than a short sale because the parties against which they are negotiating are at least known–and in a position to make a quick and positive decision. Not so with most short sales.
Wouldn’t it be better for lenders to take the lead in pricing and get those homes sold, rather than collecting them as REO’s on the courthouse steps?
Email Us or call 877-818-8197 or call/text me at 760-402-9101
What Do Luxury Home Buyers Expect from their Agents?
by This is Part One of an ongoing series about Luxury Home Buyers, their expectations, origins and trends.
This first article in the series will look at these buyers and what they expect from their luxury real estate agents. For some reason, I thought market knowledge and keen negotiating skills would head the list for luxury home buyers, but a recent 2007 membership survey conducted by the Luxury Home Council, and authored by Jim Remley, shows something far more basic.
So what to luxury home buyers expect? According to this survey of luxury Realtors, luxury home buyers want real estate representation that provides, in order of preference:
- 86% Help in finding a luxury home
- 56% Help in managing the transaction
- 43% Expert negotiation counsel
- 34% Advice on purchasing a luxury home
- 28% Assistance with paperwork
- 13% Help understanding the process
- 9% Help locating jumbo financing
Other tidbits?
- The average down payment for the luxury home buyer is 33.6 percent.
- The typical luxury home buyer spends 11 weeks searching for a home prior to purchase.
- Luxury home buyers, on average, look at 12 homes before making a final decision to buy.
- The typical (if such a thing exists) luxury home buyer is seeking a residence with 3500-4000 square feet, 4-5 bedrooms and 3-4 bathrooms. (Note: In the San Diego luxury home market, I believe the average square footage required by our luxury buyers will be higher.)
Like many, I might have guessed that the internet would have diminished the role of the real estate professional in the home search.
That appears not to be the case–and perhaps with good reason. Luxury home buyers, as a group, are more accustomed to seeking professional advice and reap the benefits of that counsel. Local luxury home specialists will understand market and neighborhood nuances that might not be revealed in internet searches. These luxury home Realtors will also, hopefully, have a good working relationship with other luxury specialists and will know of properties that may be available for sale, but may not be listed in the MLS. Those properties, of course, will not show up on any MLS search. They will also know neighborhoods, both private and public schools, country clubs and other factors that would suit a particular luxury home buyer–especially one is is relocating from another area.
Finally, most of us who deal in luxury real estate have found that our luxury buyers already have mortgage financing in place–and from our experience, it generally stems from a trusted professional advisor and financial institution.
The wealthy, it appear, tend to have trusted advisors in their lives–which leads us to wonder: Is that part of their wealth strategy and success?
I am inclined to think so.
Also Read:
Breaking All Barriers: Luxury Homes Reach Nine Figures
United States a Bargain for $1Million Homes?
Ultra-Luxury Home Sales to Soar in 2007?
Luxury Home Management: Ask for the Butler
Montana Luxury Real Estate Coup?
Easy Feng Shui Tips for the Luxury Home
D.Porthault Sheets for Luxury Dreams
Interactive Luxury Home Surfaces
Email Us or call 877-818-8197 or call/text me at 760-402-9101
I must be crazed to write a title like that because we are courted almost daily by San Diego mortgage lenders and brokers who want our real estate business. We deal with a number of home buyers and feel an enormous responsibility to recommend the best mortgage professionals in the business.
I am convinced that the San Diego real estate and mortgage market has far too many loan hacks and sharks; otherwise, how could so many area homeowners be in default? Our clients are doing fine, but way too much of our time is spent cleaning up the real estate messes created by greedy loan brokers and real estate agents.
But that is another article for another time.
The intent here is to clearly communicate what we seek in a mortgage originator. And now when San Diego mortgage professionals call to solicit business, I can refer them to this post.
Non-readers need not apply.
The committed mortgage professional will:
1. Communicate. Be available and return my phone calls–within at least a couple of hours. Can’t talk? How about text messaging? Email works, too.
2. Return my client’s calls even faster. There is nothing more painful than to recommend a mortgage lender who turns out to be non-responsive or unavailable to answer questions.
3. Don’t make promises you can’t keep. Anything that even comes close to mortgage “bait and switch” is a kiss of death.
4. Communicate. Give us email updates. Email our clients, too. We love transparency and knowing what is going on.
5. Be athletic. How about moving really quickly. We sometimes have real estate clients who want to close in ten days–and certainly have clients who do not want to pay additional seller-imposed fees because the lender cannot close on time. Time is truly of the essence.
6. Be imaginative. Be creative. Be legal. Our job is to solve real estate problems and keep our clients safe. This can be a very difficult task at times and is one that requires keen intelligence and integrity. Fools need not apply.
7. Communicate. We don’t ever want to hear from a client that a lender we recommend does not return phone calls–in a very timely fashion. Better yet, how about answering the phone when you are free to do so? We fume at those messages: “I return all calls between 12 and 1 and again between 4 and 5.” And I don’t care what Joe Stumpf or Brian Buffini have to say about that. They’re not dealing with our clients either. Also, when we meet in person, never hesitate to look me in the eye. Enough said.
8. Be honest. Don’t gouge our real estate clients. You are entitled to make a fair profit from the mortgage loan, but we watch closing statements like hawks and know how to spot garbage fees. Our clients trust us for a reason.
9. Be smart. If our real estate clients found you on their own, please take advantage of the opportunity to impress us with your professional skills. Stay in close touch with both the agents and the clients. You just might have the opportunity to earn more mortgage business.
10. Communicate. Answer your phone. Respond to text messages. Reply to emails. We value each client, each real estate transaction and demand an open and timely flow of information between the mortgage lender, the real estate broker, attorneys, insurance agents, escrow and title. A non-responsive link in this chain can endanger an entire transaction.
11. Know how to delegate. If you are going to be out of town or unavailable for any reason, please make sure you have left someone in charge of your mortgage operations who can get things done. I have had lenders take off for a week with no warning. Read numbers 1, 4, 7 and 10 again.
12. Know the mortgage business and stay up to date (and sometimes up-to-the-minute) on local San Diego market conditions. More than ever, it is incumbent upon us to protect the financial interests of our clients.
I see my job as something far more than simply being a San Diego real estate broker. I am a real estate and financial advisor who wants independence in recommendations. We don’t do loans for that very reason (read #8), which leaves us free to scout out the best San Diego mortgage professionals in the business.
Our clients deserve no less.
And if you are interested in knowing who our San Diego mortgage finalists might be, email through this site or call 760-942-9100 or 760-402-9101. Phone solicitors will get the click.
Email Us or call 877-818-8197 or call/text me at 760-402-9101