No Day is Typical

Many of our clients ask us what our typical work days look like. The truth is, we don't really know! This is especially during busy season, which has definitely started and will continue until the holidays when the market tends to slow just a bit. Each day is different and often unpredictable, so when we think we are headed to the office at 8:00 a.m. for a quiet day of paperwork, marketing plans, and catching up, we could end up with a new client showing houses on the other side of town or playing phone tag with a lender or inspector all day on a currently pending transaction. Part of the fun of this industry is that no day is "typical" and we truly have to be prepared for anything, but we thought it would be fun to take you through the day of one of our busy agents!

Monday:

5:15 a.m - Wake up and check email and text messages. Make a mental note to respond to all this morning.

5:30 a.m. - Have coffee and work on email responses until it's time to wake the kids for school.

6:00 a.m. - Shower and get ready for work. Round 1 of waking the kids.

6:30 a..m. - Once kids are awake and moving, prepare lunches and make sure all homework and after-school gear is packed. Receive the first text of the day from a buyer with some questions.

7:15 a.m. - School drop off at middle school and high school. Heading to the office.

8:00 a.m. - Arrive at ERA office. Chat a bit with colleagues already at the office and then get to work.

9:30 a.m. - Finish responding to emails from overnight. Begin working on thank you/follow-up calls and emails from Sunday open house guests.  Hosted 2 open houses that were well-attended, so I have about 13 groups to reach out to.

10:00 a.m. - Receive a call from a buyer regarding their home inspection tomorrow. Update calendar for meeting with the inspector at the property tomorrow morning at 9:00 because buyer cannot meet with him.

11:00 a.m. - Work on social media updates, including Facebook, Twitter, Linked In and Instagram. ERA has stressed the importance of connecting with clients and community via social media, so I am making an effort to really put some work into it!

12:45 p.m. - Head out for a quick working lunch (returning texts, emails and calls) before driving to the west side of Evansville to meet with a seller. Also schedule and post some social media content on both Facebook and Instagram.

2:30 p.m. - Listing presentation with a retired couple who want to downsize. After a home tour and my presentation and discussion about marketing their home, we discuss numbers and their needs in the sale. I get the listing so we make plans for me to come back tomorrow evening to take pictures for the listing.

4:30 p.m. - Leave listing appointment and respond to 3 texts and a voice mail received during the meeting. Many agents strictly adhere to no phone calls during meetings with clients. We want to be sure our clients know they are our top priority.

5:00 p.m. - Stop by the office to file the new listing paperwork. While there, I go ahead and respond to several emails I received during the listing presentation (I definitely try not to do anything other than voice calls on my phone while driving -- safety first!).

6:15 p.m. - Arrive at home and help with dinner and homework. Play outside with the family for a bit since it's so nice outside!

8:30 p.m. - Receive a call from the buyer's agent on one of my pending listings. The buyers want all the custom curtains and decorative window treatments, even though it wasn't in the contract.

8:35 - 9:45 p.m. - Spend the next hour or so going back and forth between my sellers and the buyer's agent to negotiate these new terms. Once we reach an agreement, I write up an addendum for the purchase agreement and send to the buyer's agent for signatures. During this time, we go through bedtime routines as a family.

10:15 p.m. - Watch some of the Tri-State local news (have to stay current!). Receive text from buyer's agent letting me know he received the document and will have it signed and back to me tomorrow.

11:00 p.m. - Check email one more time in bed and. Make my to-do list for the next day on my phone -- scheduling a closing for next Tuesday is at the top of the list, along with getting a new listing finished and active on the MLS.

11:15 p.m. - Good night! It's been a busy, productive day and tomorrow is shaping up to be the same!

As we discussed earlier in the post, there is not necessarily a "typical" day, but this is a great representation of what we do each day as agents. Real estate is becoming a 24/7 business and we have to be able to work for our clients anytime, anywhere while still maintaining balance to be with our families, volunteer, and even have a little time to rest and rejuvenate! What is your day like? We love learning about our clients' and friends' career. Share with us some things you do throughout your workday!

Could it be? Spring garden season is finally here?

We are loving the beautiful greenery popping up all over the Tri-State. It's been so nice to see the trees leafing out, grass growing, and flowers beginning to bud. These are the signs of spring we always look forward to! And finally could it be, spring is here? Let's hope so!

Another great benefit of these beautiful plants is that they provide outstanding curb appeal for our homes. A nice yard with well-kept plants makes a stunning first impression for potential buyers.

The next few weeks are ideal for getting your landscaping in order. Our fingers are crossed that we've endured our last frost for the year, so it should be safe to plant  your flowers and herbs if you haven't done so already. Be sure to water and fertilize so they will thrive as summer heat nears.

Our best advice is to piece your garden together a little at a time if you're starting from scratch or making some big changes. Flowers and herbs are pretty affordable, but shrubs and trees can certainly be a bigger investment. Think about what you really want to achieve, and keep a close eye on sunlight patterns and moisture to determine what will thrive in your yard.

You might even benefit from having a local professional come to your home for a consultation. These landscape architects will be able to assess your property and let you know what will work best in your yard. However, if you're just working on sprucing up an already-lovely yard, we have full faith you can do that yourself! 

So where do we go for our landscaping needs? Team ERA is located all over the Tri-State, so we all have our own favorite garden centers. We are really fortunate to live in an area that has a nice mix of "big box" stores and local gems. 

We thought this week's blog was the perfect opportunity to share a few of our favorite places to peruse plants around the Tri-State!

Peckenpaugh's Garden Center -- Westside of Evansville

Combs Landscape & Garden Center -- Eastside of Evansville

Hillside Gardens -- Northwest side of Evansville

Colonial Classics Landscape & Nursery -- Newburgh

SWN Garden Center -- Northside of Evansville

Elberfeld Garden Center  -- Elberfeld

Jim Hipp Nursery -- Haubstadt

Hastings Plants -- Mt. Vernon

Larger chains like Lowe's, Home Depot, Walmart, and Rural King all have nice garden centers as well. These are wonderful places to shop for the greens in your life because they usually have wide selections and good prices. 

Finally, a newer business we continue to hear great things about is Wilde Horticultural Services. If you are looking for a someone to come out and just do everything for you, this group would be an excellent contact. 

What other landscapers and garden centers are you visiting this spring? Share with us, because as always, we love passing along local resources to all of our clients! 

Enjoy the rest of the week, and post some pictures in the comments of this post on Facebook so we can see your garden progress! 

Here's How your ERA First Agent Works for You

This week's topic was inspired by some recent discussions and questions that have been brought to us by our clients, and we thought it would be a fantastic educational opportunity for everyone. Those of you who have moved in the past probably worked with the same agent when you were both selling and buying, but did you know they wear very different "hats" when they are working for you on each side of the transaction? The responsibilities and methods used by your ERA First Advantage agent differ a bit when he or she is working for you as your buyer's agent or seller's agent.

We get a lot of questions about what an agent does throughout the transaction, and first-time home buyers especially are interested in learning more, specifically how each agent gets paid and what they can expect from their agent when they make the decision to buy or sell a home. There are some major differences between working as a Buyer's Agent versus a Seller's Agent, and it takes a great deal of skill to be successful in both these areas of real estate.

To highlight these differences as easily as possible, we are going to take a look at each side of the transaction.

First, let's talk about what your agent does when he or she is working as your Buyer's Agent:

• Represent the buyer, obviously, and only the buyer's best interests.
• Coordinate home showings with the listing agents of houses buyers want to see.
• Negotiate price of home, sales conditions, inspection details & repairs on behalf of the buyer.
• Work with buyers to determine their wants and needs (within budget!) and then search, or even preview, available inventory for homes that meet buyer's criteria.
• Paid by commission, which is settled by the sellers and their agent. Buyers do not pay for their representation unless their agent charges an up-front fee.  
• Buyer's Agent only gets paid when buyers find their new house.
• Agent may ask buyers to sign an agreement that states buyers will not switch to another agent when they find a home. This is simply a way to protect the agent so he or she does not put in many hours of work without payment.
• Once the buyers find a home they love, their Buyer's Agent works with and educates them each step of the way through closing. 

Next, let's outline some ways the Seller's Agent differs:

• Also called a Listing Agent
• Represent the sellers (homeowners)
• Complete a Comparative Market Analysis to determine market value of the home and work with sellers to settle on a competitive list price.
• Once listed, the agent will create a marketing plan to get the house noticed by as many agents and potential buyers as possible.
• Coordinate showings with buyer's agents who have clients who want to see the home.
• Host open houses to showcase the home to potential buyers.
• Negotiate sale price, inspection details and repairs for the sellers.
• Advocate for the homeowners and represent their best interests.
• Negotiate the commission with the sellers for the listing.
• Split the commission with the Buyer's Agent.
• Only get paid if they sell the listing.
•  Inform and educate sellers throughout each step of the transaction to get to the closing.

 Like we stated before, it takes a tremendous amount of skill to do all of these things well for clients. Some agents specialize if they only want to work with buyers or sellers, but most in our market do not specialize. At ERA First Advantage, we want to be specialists in all real estate matters, so our agents are happy to work with clients who want to buy or sell.

 We hope this post has cleared up any confusion you may have about what your Realtor does when he or she works with you. What are some other real estate topics you'd like to learn more about? Share with us because we are here to help you!

Chat with an Expert: Flips and Investment Properties

Welcome back! As noted last week, we have a special blog for you all this week. Since the Tri-State is such a strong investment market, we wanted to share some practical, real-world knowledge from an agent who helps clients build their investment business every day. Becky Demastus is an agent in our Newburgh office who works primarily with investors, and your resident blogger got the opportunity to sit down with her to get some outstanding insight. Becky is a high-producing, award-winning agent who has become our resident expert for transactions involving flips, foreclosures, short sales, and all other situations that fall into the category of “motivated sellers”.  She is a busy agent, so it took a little time to coordinate our schedules, but our meeting was well worth the wait. I am thrilled to share her advice and knowledge with you all, because this world of real estate investing can be competitive, overwhelming, and frustrating. Have no fear though, I am ready to share some wisdom from one of the experts.

I began our conversation by asking how people get started in real estate investing. She answered by stating that if someone has 20 percent to put down on that initial property, plus a great agent who knows the process, anyone can navigate the investment business. The first thing Becky asks her investor clients is “What is your goal?” You need to determine whether you are looking for a property to flip or an income-producing rental. That goal will influence which properties stand out as smart buys. The next consideration is how you are going to pay for the property(ies). Since investors typically buy homes wholesale, through foreclosure and short sales, estates, and sheriff sales, conventional loans are not an option. They are not primary residences for the buyers, and they typically don’t meet safety criteria like homes that have been well-maintained by owners. The most common ways investors finance their properties are through cash and commercial loans. Becky recommended talking to a trusted loan officer who is experienced in handling this particular type of transaction.

My next question started a great discussion. I asked Becky what types of markets are strongest for investing. I have always assumed big cities are the best places to invest in real estate, but she assured me that is not the case. Cities of all sizes have houses ideal for flips and renters, and the Tri-State is no different. Evansville, Jasper, and Newburgh are all especially strong rental markets, and since we have affordable housing in our region, it doesn't take as long to start making a profit on your investment. You just have to take your time to and start slowly so you find the right one that will provide a return on investment. 

In our market, for example, Becky told me that there are a lot of renters and a strong investment market. One thing to remember is that we do not experience the major swings in real estate values like other areas in the country, so we see more real estate investors who buy income-producing properties to rent to tenants rather than property flips. She said it can be a slower return on your investment, but it’s secure, especially if you work with a property management company that handles all paperwork and tenant issues like rent payments, proof of insurance, screening, evictions, etc.

Our conversation naturally led into flipping because so many people are interested in how it works. Do flippers really make huge profits like the shows we see on TV? In some cases, yes, flippers enjoy a profit of 10-20% , but that comes with a great deal of work. Properties that are great options for a flip are not always in good shape. Becky made a great point that when investors are looking at a house they want to flip, they need to use a formula for pricing. Start with the value the home will be worth upon completion and subtract the cost of repairs, taxes, realtor fees, your desired profit, and a cushion for unexpected costs. The number you have after those deductions is the price you can pay for the property. She said it does not matter what the listing price is. This is a business decision, and if the numbers don’t work, it’s not a wise buy.

With a flip, the repairs are probably the biggest variable. Becky recommended having a team in place for rehabbing properties before you ever make an offer. It is also a bonus if you can do some of the work yourself to save on labor costs. Ideally, your contractor should walk the property with you to estimate costs for all necessary and check the condition of the major components of the house like the plumbing, electrical, roof, and foundation. It is critical to do your due diligence on these investments so they do not become money pits. In addition to the home itself, do some market research to ensure the other homes in the area are similar in market value. That will be important when it’s time to sell. Don’t “over invest” to the point that you price yourself out of that particular neighborhood.

Another great topic we covered was negotiating investment deals. I asked Becky if she handles those negotiations differently than primary residence buyers or sellers.  Her short answer was “no”, as she is aggressive and prepared in all her negotiations, but she shared a few tips that have helped her clients get the homes they want when it is a competitive property with multiple offers. The best way to get an offer accepted, especially when the purchase price is lower than asking, is to pay with cash, waive inspections, more earnest money, and a quick close. Those are a buyer’s most aggressive means for getting that property. Just remember that the investment is a business transaction, so if you miss out on some properties, don’t fret. Becky noted that she has clients who make 15-20 offers per week once they’re established because they know other investors are doing the same thing and they will “lose out” on most of the deals (all part of the process).

As our conversation came to a close, Becky reiterated the important of working with an experienced, knowledgeable agent when you’re buying and selling investment properties. You really need someone who is well-versed in the process and can help you make wise, profitable business decisions. I hope you have learned a lot from this series. It has been quite educational for me to write, and I look forward to continuing my research and expanding my knowledge on real estate investing. As always, if you have follow-up questions or want to know more, don’t hesitate to reach out! If you have interest in becoming a real estate investor and would like to talk to Becky directly, please giver her a call at (812) 858-2400.