Greater Cleveland Real Estate Blog

4 comments • Svetlana Stolyarova,Local-n-Global Realty, Broker • January 27 2009 07:25PM

Realtors(R) don't charge the home buyers in America, do they? Who pay commission to buyer's agent? Consumers Guide to Agency Relationship: Part 2

People love free stuff. Free is a magic word. Whoever gives something away - for FREE! - feels like a God, like generous, kind, almighty God who makes people happy and smiling. What a gracious life!

You may know this feeling if you are Real Estate agent and work for home buyers in Cleveland or in other parts of America. Why?

Happy buyers - happy Realtor(R) Because here in America home sellers pay Real Estate commission. Buyer's representation is apparently FREE!

Is it really free or it's not?

That's a good question to discuss with your potential clients when you ask them to sign the Consumers Guide to Agency Relationship, which is required by law in State of Ohio. Indeed, the tradition is that the sellers pay Real estate commission. Sellers also authorize their agent to offer part of this commission via MLS to cooperating brokers for allocating the buyer who is ready, willing and able to purchase the seller's property.

According to this tradition, only sale of the property listed in MLS leads to the buyer's agent's commission. Agency relationship itself is not the basis for monetary reward. That's why discussion of Consumers Guide to Agency Relationship is so important for both buyers and Real estate agents.

What buyers can ask?

O.k. dear Agent! You say that I don't pay for your representation. Commission will be paid by the seller. Does it mean that you in fact represent the SELLER's best interest, not mine? What's the point to hire you if any Real Estate agent in your MLS in fact represents the Seller? Does it mean that if I go to the seller's agent directly I can actually save some money and get the same level of representation as you can offer to me? Why then I should be loyal to you? What's the point?

What agent should say about agency and money?

Dear Mr. and Mrs. Buyers! If you need a professional, knowledgeable, experienced Real estate expert on your side, you should hire one. Good news is that more likely it will not cost you additional money. Yes, we get the commission from the seller if you buy the property listed in our MLS. In fact, over 85 % of all Real estate is selling via MLS. There is a real high probability that your dream house will be listed in our system.

There is also a high probability that the listing agent is skilled enough to offer a decent commission split to the buyer's broker. Real Estate is my profession and I do it for fee. The fee structure is favorable for the buyers, so you may end up by paying no extra fee for my services.

However, some properties are offering by owners who chose to offer a very small fee to both listing and buyer's agents. Some owners chose not to utilize the professional services of Real estate agents. I will ask you to sign the Exclusive Buyer Agency agreement if you want me not to limit your choice by considering only MLS properties with adequate Real estate commission. You may be required to pay commission directly to my broker on the top of the home price. I WANT TO REPRESENT YOU DILIGENTLY REGARDLESS THE SELLER'S INCENTIVES OR GREED. Fair enough?

That's how the most confusing part of agency and commission problem may be cleared by simple discussion of Consumers guide to agency relationship.

This post is the second one in the series of posts dedicated to the agency relationship.

In my previous post How to Use Consumers Guide to Agency Relationship we spoke about client's confidentiality and agent's fiduciary duty to keep the client's confidentiality, no matter what happens.

Need to buy the house in Solon, Pepper Pike, Mayfield, Lyndhurst and other suburbs of Greater Cleveland?

Call Local-n-Global 24/7 Real Estate Hotline 877-770-5551.

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8 comments • Svetlana Stolyarova,Local-n-Global Realty, Broker • January 20 2009 07:20PM

Are all foreclosure "DEALS" equally great? The mistery of pricing and call for due diligence.

With such a big inventory of bank owned homes in Cleveland you can expect a reasonable pricing. When I say "Reasonable", I mean priced differently or similarly FOR REASON, not just based on square footage or comparable sales in the neighborhood.

First of all, do they compare apples to apples when price these properties?

Let me tell you the story. Thanks to blogging at Active Rain I've got this wonderful client from overseas who hired me to assist him in distant buying of few investment properties in Shaker Heights, University Heights and Cleveland Heights. I am previewing all these houses which look like great DEALS to me and to my client. I am taking numerous pictures, creating PDF slide shows, composing very detailed reports about the houses, and sending them to my client.

I am freezing outside and inside because there is no such thing as heated GREAT DEAL (a.k.a. Bank Owned Property, or REO) in Greater Cleveland. I am feeling sad while taking the pictures of far-from-prfect bathrooms and messy, moldy ceilings and walls. I am falling in love again and again with amazing architectural details, wonderful wood work, charming fireplaces and smart floor plans of used-to-be-gorgeous Shaker Heights homes.

Shaker Heights

I keep wondering what kind of CMA appraisers and brokers used to price these houses? Let's start from the fact that most of bank owned properties are not in fact the Houses - already or yet. They are the Projects to Become the Houses After Additional Investment of Time, Efforts, and Money. May be it's not true for Florida or California, but it's so in Greater Cleveland.

Why then the house which needs some plumbing check out, painting and re-decoration is priced the same as total mess with rotten window frames, leaking roof and stolen pipes? Only because they have the same square footage and are on the same street?

Banks need a good reality check when they price the houses. They need to categorize their REO better. At least they need to distinguish Almost-The-Houses from Big-Project-to-Do-Before-Bringing-This-Back-to-The-House. It's not correct to compare these two categories of Real estate!

My clients get surprised why I am not sharing their enthusiasm regarding great foreclosure "deals" which they find time by time over the Internet. I was always very precautious about the bank owned and short sale properties on our Greater Cleveland Real Estate market. The reason is simple. We have real winters here in Cleveland!

Real winter in Cleveland

Most of the bank owned properties in Cleveland have been winterized and just few of them have heat and electricity turned on. Without the utilities turned on you have no chance to diligently inspect the property. In Greater Cleveland, You 'd be better assuming the worst while buying the vacant house with no utilities. Although it sounds like a good idea to winterize the vacant house, there is a big problem with winterized properties for the buyers. Unfortunately, we never know when exactly the house has been winterized and how long it stayed vacant before winterization. When it's almost sub-zero, like it's now, there is a big danger of pipes being frozen and water and sewer lines being severely damaged - BEFORE the winterization.

Winterized - but WHEN?

However, we have few very solid bank owned homes in great neighborhoods of Shaker Heights, University Heights or Cleveland Heights, which are priced just right. It's a great opportunity for serious cash investors.

Need a serious, diligent Real Estate agent to represent your interest in buying the investment properties in Greater Cleveland?

Call Svetlana directly 216-548-4663 or call Local-n-Global 24/7 Real Estate Hotline 877-770-5551.

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7 comments • Svetlana Stolyarova,Local-n-Global Realty, Broker • January 17 2009 07:07PM

Why I feel so relaxed when lead comes from Active Rain

Sometimes I have that strange and totally wrong feeling that I do not earn money which I get helping people to buy or sell Real Estate in Greater Cleveland. Why? Because I love doing Real Estate! How can you get paid for love?

I love Real estate Yes, Real estate is my primary business. Yes, I take it seriously and diligently, but -

I enjoy meeting new people, asking all the questions and listening to all these very deep and personal stories which my clients share with me. I feel so rewarded to help people finding a right home for growing family or buying the perfect piece of land to build that Dream house for Mrs. Perfect.

I am thrilled to help selling homes in Solon, Lyndhurst, Mayfield Heights, Aurora, because Web.2.0. marketing helps me to attract right buyers for my listings AND is my favorite activity. Exploring new marketing tools to promote my clients' listings, creating widgets, mini-sites, videos and slide shows is my hobby, my favorite game.

Finally, speaking of blogging at Active Rain. I love Active Rain! That's why when new customer-to be calls me and says that he knows me from Active Rain, I immediately start smiling. Miraculously, I feel relaxed and start speaking with total stranger like he is my dear friend, ONLY because he mentions Active Rain. That's exactly what happened this afternoon when I received a call from wholesale investor from NJ. That's exactly what happened a week ago when I got the call from investor from Finland who eventually hired me to represent him in purchasing few investment properties in Shaker Heights and University Heights.

Calls coming from Active Rain are always very easy and smooth. Interesting but it almost never happens when you follow up on any other Internet leads. Is it just me or it's a trend that Lead Conversion Rate for Active Rain is much higher than for any other Internet portals or sites?

Active Rain has this great side effect, which I call Built-In Trust. Friendly, professional, yet HUMAN environment of Active Rain community is contageous. That's a magic of Active Rain.

Dear Greater Cleveland Real Estate agents! Join us at Active Rain! That's fun. That's help. That's business.

Dear homeowners who need to sell the houses in Solon, Pepper Pike, Mayfield, Highland Heights! Call the Active Rain agents! We are all friendly, relaxed and very professional.

Dear homebuyers! Start your Greater Cleveland MLS Search right here, at Active Rain. And, please call me 216-548-4663 ASAP. Rates are incredibly low and prices are better than reasonable. Time to buy!

Sincerely, Your Active Rain Real Estate Agent

Svetlana Stolyarova

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14 comments • Svetlana Stolyarova,Local-n-Global Realty, Broker • January 14 2009 07:09PM

Pending Death and Future Living. Transparency, Technology, Social Media, Business Strategy, With Some Economics Sprinkled On Top

That's a very serious conversation about the trends, possible outcomes and inevitable changes in our Real Estate industry.

I am very pleased that Active Rain authors allow to re-blog their writings. Please read and share your thoughts about the Jeff Corbett's brilliant essay.

Via Jeff Corbett (ActiveRain):

So, I've been running my mouth about this word called ::Transparency:: for a few years now. When you wax philosophic on a topic for so long, watching it manifest in the main stream elicits redemptive emotions.

What is Transparency? The word has a far reaching and fascinating taxonomy depending on what the corresponding topic is. Generally, its a noun that suggests that the given topic can be seen and understood clearly with little left to the imagination. Transparency fosters a greater sense of awareness around a given topic. Most people will say that greater transparency regarding a given topic is generally a good thing.

So, is Transparency a good thing for business?

On paper, as an ideology, Transparency represents practices performed in a more truthful, enlightened and thus positive light.

In practice, in real life, Transparency tends to compromise established industry's, institutions and individuals ability to continue to function as they traditionally have, more often than not with extreme deleterious consequences to a rigid status-quo.

You can't handle the truth! - Colonel Nathan Jessup.

Copious amounts of raw disseminateable data, a byproduct of our progression into the The Information Age, has catalyzed the virility of Transparency creating fast moving paradigm shifts that corporations and industry stalwarts are simply unprepared to handle. Transparency exacerbates underlying 'issues' and causes rapid disintermediation to legacy industries like ::wait for it:: real estate (and mortgage).

The writing has been on the wall for years now:

From 1997, Clayton Christensen's The Innovators Dilemma articulates that a 'successful company with established products will get pushed aside unless managers know when to abandon traditional business practices.'

From 1999 Blown to Bits states that "the Internet and other technological innovations are changing the basic structures of most industries and simply destroying the remainder." and "Increasingly, your customers will have rich access to a universe of alternatives, your suppliers will exploit direct access to your customers, and your competitors will pick off the most profitable parts of your value chain. Your competitive advantage is up for grabs."

Transparency has brought many an industry to its knees. While it seemed like a good idea at the time, it's clear today that the money that was printed to create the Mortgage Backed Security Market created a bubble that popped. Consequentially bubble based business models are taking it on the chin, drawing out the knee jerk reaction of indiscriminate cost cutting. As a business, trimming unnecessary fat is very prudent right about now, but what shouldn't be ignored is investing in the type of innovation required to compete for future discerning consumers (and agents).

Today, more than ever, its time to 'abandon traditional business practices' if you want to stay in business much less maintain a competitive advantage.

Back in late 2007, I quickly rambled about three topics that represent vanguard of the future of real estate:

Compensation reformation or divorcing real estate commissions is coming, since inter-broker compensation can be handled outside of the traditional MLS...A different version of the same thing isn't a viable solution and mass adoption of isn't probable considering the openness of the technology landscape, 2007-08 forward.

Zillow and Trulia aren't it either...Both well funded 3rd party destination real estate information websites business models revolve around advertising. Advertisers pay money to players like Z & T because consumers are carousing their sites, not an agents or brokerage, so it would seem fair to say that both entities would like to keep the consumer there. This isn't a knock against either company, they do what they do and make no bones about it, however their respective agendas don't line up with the individual agent...

An application (technology, widget, et al.) that allows for a real estate professional to 'share' their valuable information and market their services to others within similar spheres, while insuring an acceptable assurance of reciprocity has yet to be identified...though it should involve a strategy that implements an open Social Networking Optimization framework that allows birds of a feather to flock and fly together...

1) Compensation reform (initially) on the Broker to agent level (CGI splits, desk fees) is manifesting out of brute downward pressures on the market: depressive home values, heavy inventory and lack of credit. These conditions are pushing many agents out of the industry and causing the best agents to become rather brand or franchise agnostic, perpetually asking: What have you done for me lately? Loyalty means little in a Bear market. Broad compensation reform between agent and consumer is an inevitability.

2) My overall point that the agendas of the Zillow's and Trulia's of the world don't line up with the individual agent brokerage is shared and expounded on (far better than I could) by my very smart friend Rob Hahn. How long is it before a critical mass of the best agents adapt to open their own (very virtual) brokerages, adopt these types of sites as primary marketing channels, utilize their superior products and services in place of the expense of affiliating with a broker-franchise-brand that provides diminishing, even negative value?

3) The 'open web' proliferated by the likes of Facebook Connect and Google Friend Connect offer the 'open Social Networking Optimization framework' described above on highly scalable and cost effective levels. Aggregating and sharing granular information has never been faster, easier or cheaper with free communication syndication platforms like blogs, Twitter, FriendFeed and FeedFuze. Agents that have learned to harness these tools and services don't need to work for a major brand to succeed. They are becoming the brand.

Instead of dismissing these thought threads and seemingly diminutive products and services, real estate Franchises and Brokers would be wise to listen, adapt and adopt before they trip the line irrelevant. Over the past couple years a new position within the social spheres of the online real estate industry has popped up: Director of Social Media. It's a fancy name for someone who knows how to communicate online using the products and services mentioned above. Broker-Franchises should also seek 'Social Media Directors' and promote them from within their current contingencies. They represent a worthy investment as these folks have learned how to leverage information and create conversation around themselves and/or their business far more effectively than traditionally expensive marketing campaigns...they represent the future of real estate.

The generation that will pull this recession up from the depths knows nothing but the internet and how to communicate with the world using its cornucopia of social products and services. Tech savvy consumers will only connect with similarly tech savvy real estate professionals.

To tie this all together, I don't believe the real estate market will simply correct without major Transparent changes from and by the people who serve it. With money continuously being printed and infused into our economy, when things do turn inflation will be hard to control. Real estate is usually a sound hedge against inflation, as real assets typically rise in value in relative correlation with inflation percentages. These aren't 'usual' times. When real estate values do stabilize (aka bottom out), monetary inflation will likely increase at a hefty tick, further diminishing the buying and borrowing power of most people. Tough times are still ahead, there is no quick fix. Consumers will demand (and need) great service for less cost, or they simply won't buy.

The agent and business who ends up succeeding in this market will be the one who kept one eye on cutting costs and the other on investing in innovative resources, specifically industry relative content syndication applications like the examples mentioned above, and other similar technologies that promulgate Transparency. On the upside, these tools and technologies are rolling out cheaper and better than their predecessors...evaluate, adapt and adopt...or start looking for a new career.

::Done Rambling::

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10 comments • Svetlana Stolyarova,Local-n-Global Realty, Broker • January 13 2009 08:16PM

Who Says The Market is Slow? Winter Storm in Cleveland Does not Stop Serious Buyers From Touring The Houses

I am so glad that there are still so many people who buy the houses in Cleveland because they need a spacious place in safe neighborhoods for their family, good school systems for their kids, nice back yard for the garden, or finished basement for the home theater.

These are the real reasons to buy. These are the greatest moving forces to work hard, keep credit history in a good shape, save money for down payment and for those comfortable couches to put in front of fireplacea in a family room. These are the excellent motivators to hire a reliable Realtor(R) to make this purchase an exciting, smooth and RIGHT experience. These are the reasons to see the houses no matter what, at least no matter how bad the winter storm in Cleveland is.

That was cool to show the houses to my REAL buyers this morning. It was almost fun which started from trying to dig the car out from under the snow!

We sell homes no matter what!

While most of driveways and sidewalks were buried under snow, some walkways were actually shoveled!

Sometimes I wished I had ski or snowboard! Sometimes I wondered why did I leave Moscow, Russia for Cleveland, Ohio.

All the time I feel grateful to our wonderful city services and to all people from Moreland Hills, Solon, Twinsburg, Gates Mills who work hard to keep the streets and developments in decent and driveable condition today. I mention only these cities because my showings were there. Good job guys! Thank you very much! Without your help my buyers would not be able to see all these wonderful houses.

Greater Cleveland Real Estate Hotline 877-770-5551 - CALL ANYTIME!

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5 comments • Svetlana Stolyarova,Local-n-Global Realty, Broker • January 10 2009 04:15PM

Perfect snow in Cleveland!

Few people called me this afternoon and warned about the winter storm coming to Cleveland tonight. It doesn't look like a storm for me as I am enjoying a warm, calm, nice Friday night with my family.

Tomorrow is planned to be a very busy day for me and my clients: two showing tours with my buyers and one showing on my listing to out of town buyer. Hope, Cleveland winter will not scare our relocating buyers! So far it's simply beautiful.

Snow in Cleveland January 9, 2009

Beautiful winter in Cleveland

Love to enjoy four seasons in Cleveland? Need to buy or sell your Greater Cleveland RealEstate?

Call Local-n-Global Real Estate Hotline 877-770-5551

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Call 877-770-5551 - we are here for you 24/7.

6 comments • Svetlana Stolyarova,Local-n-Global Realty, Broker • January 09 2009 07:11PM

How to use the Consumers Guide to Agency Relationship to build a stronger, healthy relationship between the client and the agent. Part One: Confidentiality

I am very glad that Barb Szabo started the conversation about the Consumers guide to agency relationship. When Ohio adopted this rule many agents in Ohio were releived, as previously we were obligated to sign the Agency disclosure form with our potential clients. Agency Disclosure contains more strong language about representation which many clients considered as obligation to be represented by this particular agent.

Opportunities My point is that obligation to review the Consumers guide to agency with the potential client may be a big opportunity for Real Estate agents to present our services, advantages and professional principles, and eventually build a strong, healthy, professional agent-client relationship with our clients. It also helps to avoid any further confusions, disappointments and liability.

First of all, Consumers Guide to Agency Relationship is the summary of the Real Estate company's policy on agency. Not all Real Estate companies are created equal. Consumers guide is not the same form for each Real Estate company! Each brokerage has its own policy and it is important for the consumers to know the details. The best way is to review the Consumers guide to agency relationship with your agent and ask the questions if you have some.

Dear agents! That's an excellent chance to discuss with your client the advantages of working with you and your broker. That's a very good time to present your Unique Value Proposition to potential client. That's why it's smart to make a discussion of Consumers guide to agency relationship a part of listing presentation or Exclusive Right to represent a buyer presentation.

I think, conversation with potential client about the Consumers Guide to agency relationship is a very good starter because it should happen at the point where the potential buyers or sellers decide whether do or do not disclose confidential information to this agent. Real Estate agents know that confidentiality is the only fiduciary duty which stays with us forever, no matter did our agency relationship with the client end by sale or not.

If you are not comfortable with me Mr.Buyer or Mrs. Seller, I would rather NOT receive any confidential information from you! Agency relationships start not at the point when you sign the Consumers guide to agency. It starts when you tell me about your financial situation or disclose any other confidential infromation.

I am proudly representing many of home Sellers and home Buyers in Greater Cleveland.

Need to sell your home in or condo in Cleveland Heights, Pepper Pike, Lyndhurst or anywhere in Greater Cleveland?

Need a loyal, knowledgeable, experience Real Estate agent to represent your interests in buying a home in Solon, Twinsburg, Aurora, Orange, Mayfield or other suburbs of Greater Cleveland?

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8 comments • Svetlana Stolyarova,Local-n-Global Realty, Broker • January 07 2009 06:15PM

Blogging addict? Believe in Web marketing?

Dear Greater Cleveland Real Estate agents !

If you believe in Web marketing, if you know how powerful blogging is, if you want to earn more utilizing lead generating power of the Web, please discover opportunities offered by young, dynamic Greater Cleveland Real Estate company Local-n-Global Realty.

Thanks to a great SEO power of Active Rain and Localism, our company's web site www.Local-n-Global.com attracts more than 5,000 visitors every week.

Great Google results for Active Rain blog and Local-n-Global.com

We sincerely believe in synergy of combined Internet marketing efforts! If you want to double, triple, multiply your Internet presence and bring more benefits to Cleveland Real Estate buyers and sellers, please call Svetlana Stolyarova directly 216-548-4663 to discuss the broker-agents blogging system. I will be honored to offer one of the best compensation schedules, free marketing tools, proven selling systems to enthusiastic, knowledgeable Real Estate agents and teams who realize the value and power of the Internet for Real Estate industry.

You are welcome! Local-n-Global Hotline 877-770-5551 is available 24/7.

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2 comments • Svetlana Stolyarova,Local-n-Global Realty, Broker • January 04 2009 05:27PM

Why Clevelanders love shopping at Aurora outlets

There are many amazing things about Aurora, OH. I love its old world, vintage, rural charm mixed with comfort of sophisticated new constructions. Aurora is known for its elegant country club life style, golf courses, comfortable Inns, spas. Upscale gated communities of Barrington, waterfront life at Hawthorne of Aurora or Lakes of Aurora, incredible Walden Farms - each community of Aurora, OH has its own character and attractiveness.

Aurora Outlets - fun for the whole family Aurora is also famous for its shopping. Favorite shopping place for many Clevelanders is Aurora Outlets. Located just on Rt. 43, this plaza is for fans of Saks Fifth Avenue, Ralph Lauren, Ann Taylor, and other famous retailers. It's a beautiful place for just walking around the big pond, having fine food, meeting with friends.

Shopping in Aurora, OH I did my last minute New Year shopping at Aurora Outlets on December 30th, 2008. It was a delightful day - warm, sunny, clear and sparkling. I am so gals that I had my camera with me. Enjoy!

Want to live in Walden Farms of Aurora, OH? Ready to build the house of your dream? Call Svetlana Stolyarova, Local-n-Global Realty 216-548-4663 or e-mail to: Realty@Local-n-Global.com.

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