Home sales up in Savannah Ga for November

I've noticed an increase in homes sales in Savannah -- this NPR report confirms it:

There was a 3.5 percent increase in the number of "pending" home sales in November from October, the National Association of Realtors just reported.

Those are home sales where a deal has been signed, but not yet closed. Since hitting a low in June, they've risen over the past five months — but remain 5 percent below the level of November 2009.

Still, NAR chief economist Lawrence Yun says the data signal a gradual recovery into 2011 in the housing market. Gradual is the key word: Yesterday, S&P/Case-Shiller reported that home prices fell 1.3% in October from September — a sign that if there is a recovery, it remains soft

We've still got a long way to go, but the fact that home sales are increasing is a good sign that recovery in real estate is happening.

Baby boomers and Savannah real estate

I'm a baby boomer, but I have it made, I can retire in a place I'd likely choose if I didn't live here -- Savannah, Ga.

When the economy improves and homes start selling more briskly, the baby boomer retirement movement will proceed at a healthy pace. I can recommend Savannah to anyone living in large, cold industrial areas -- Savannah has a lot to offer retirees -- an interesting downtown community, art, music and plays, the beach, gated communities with good golf courses and the ability to play almost year around.

Exclusive buyer agency works for retiring baby boomers -- one thing we have learned is that good information is powerful, and that's what exclusive buyer agency is about -- providing good, objective information so that a buyer can make a well-informed decision.

Moving out of state doesn't have to be an anxious experience of not knowing the ins and outs of the real estate market in which you'll be moving -- buyer agents understand this and offer services to remove the anxiety. You can do all your upfront research over the internet, and if you get the right buyer agent, you will know everything you need to know about a place like Savannah Ga before ever looking at a home.

Using a buyer agent is the smart way to buy a home. Baby boomers should find the experience a fun adventure rather than an anxious hassle. In today's market, good information is critical. Having a good buyer agent you can trust is much better than going fom listing agent to listing agent, each one attempting to sell their listings -- not that there is anything wrong with listing agents trying to sell their listings, because they represent the seller and that's what they are supposed to do -- but you are the buyer, and you need representation, too.

Buyer Agents in the Information Age

In the Information Age there are many, many sources of information -- good information and bad information. In Savannah real estate, as in real estate anywhere with internet connection, a buyer can find just about any home on the market by searching the web.

As a buyer agent I serve clients to make that information useful and to sift through the bad information. Real estate, especially buyer agency, is becoming less about selling and more about information management and service. As a buyer agent my job is to research and gather useful information for my clients, use my specialized knowledge regarding real estate and the area, and to represent the client's interest through the whole transaction, then follow up afterwards to tie up any loose ends.

I work with many out of town buyers who are unfamiliar with Savannah, so the first order of business is get the client familiar with the options and to zero in on an area. Then it's a matter of finding the right home and providing the information necessary to make a good informed decision. My goal is for the client to find the best house, at the best price with the best terms and conditions. This is much different than selling listings. Since I don't list any homes for sale, I search the whole market and look for the best home for the individual buyer -- no conflicts of interest, no selling.

Why would a Buyer Agent negotiate for a lower price

If a buyer agent negotiates a lower price for a home, it reduces the amount of the buyer agent's commission, so what motive does a buyer agent have to get the buyer a lower price?

Good question. Let's answer it in a round about way that better explains the mindset of an exclusive buyer agent. First, after the commission split, a difference of $10,000 or $20,000 in the price is not going to amount to that much less in commission -- maybe a couple of hundred dollars. But even if it's $300 or $400, it doesn't matter. It's worth it. I want that reputation -- an agent who wants to get the buyer a lower price on the home so I can lose commission money. Crazy, but true.

An exclusive buyer gets business by doing a good job protecting the buyers' interests and doing what he/she says he/she is going to do, including saving money -- word of mouth is the best form of advertising -- so consider that $200, or whatever amount, as advertising costs. If a satisfied buyer refers just one buyer in the future, which most of them do, I consider losing that $200 or so a good investment. The more I lose, the better satisfied is the buyer and the more likely I'll get referrals in the future. That's cheap advertising, because, I don't know about other area, but here in Savannah Ga, magazines and such stick it to agents. I feel like I've saved money and invested it well.

An exclusive buyer agent has to have a mindset that focuses on saving the buyer time, money and hassle. Listing agents get awards based on the dollar amount of their sales based on the total of the prices of the homes they sell. When I first started as an exclusive buyer agent, our company gave awards based on the total amount of dollars we saved buyers in the transaction. My last year with that company I got the highest award by saving buyers more money than anyone else in the company.

It's a different mindset -- it has to be, to be good at it.

The difference between a buyer agent and a listing agent

A listing agent is a real estate agent who works with home sellers to list and sell their properties. A listing agent represents the seller and has fiduciary responsibility to the seller. Traditionally, this was how real estate sales were conducted -- a real estate agent would list a property for sell then attract buyers and attempt to sell them on the property.

Over a decade ago, now, it became apparent that buyers were at a disadvantage because they had to depend on the agent representing the seller, so some agents started offering buyer agent services to represent the buyers. Exclusive buyer agents work only with buyers and do not take listings, so there is never a conflict of interest.

The listing agent, when they put a home on the market for sale, offer to split their commision with any agent who brings a buyer, so when a buyer has buyer agent representation, the buyer doesn't have to pay out an extra amount to pay for the agent's services.

When I represent a buyer, I look for the homes that meet the buyer's criteria and then when we go out looking at homes, I look at each home from the eyes of the buyer -- what repairs does it need? Is it overpriced? How will it do when it's time to sell the home? What is the area like and what kind of changes are happening in the area that could affect home prices?

This is part of the value of having a buyer agent -- you have someone who knows the area and the market and is on your side. Plus, you develope a trusting relationship with the buyer agent and it's a more pleasant experience not having to talk with numerous listing agents who are trying to sell you on their listing.

In the next couple of days I will answer the most common questions asked about buyer agency.