What We Do For You.

What We Can Do For Sellers!

Advantages of Selling Your Home with Happy Herald Realty
What Seller's Want from
their Real Estate Agents
Show, Market and Sell Agreement
The Changing Real Estate Market
Top Real Estate Predictions for 2009/2010

What We Can Do For Buyers!

Writing Purchase Offers in a Buyer's Market
Who Really Pays the Commission?
Buying with Happy Herald Realty's "Bid on Me" Program

1. Advantages Selling Your Home with Happy Herald Realty
a) Competitive Marketplace
    HAPPY HERALD REALTY’S “BID ON ME” method of marketing creates a form of competition that cannot be duplicated. Each OFFER reinforces the market value of the property. This affirmation of value encourages other participants to continue bidding. Within all of us is a tremendous need to win. In a traditional real estate sale the buyer satisfies this need by negotiating the seller down. WITH MULTIPLE OFFERS the buyer can only win if HIS OFFER IS HIGHER THAN all other OFFERS. The HAPPY HERALD REALTY brings all interested parties into one place at the same time for a single purpose - to determine who will pay the most. All interested parties are "forced" to make a decision. Getting an interested person to act is the most difficult thing for a conventional broker to do.

b) Control
    The terms of the HAPPY HERALD REALTY’S “BID ON ME” are established by the seller. All buyers are OFFERING based on a common set of terms and conditions. The seller stays in the driver's seat throughout the process.

c) Immediate Results
    When the sale is over we will provide to you a signed purchase contract with a deposit check. After the contract is completed, the sale will be closed in about 45 days. The principle of time value of money suggests that a dollar received today is worth more than the same dollar to be received at a later date. The traditional method of sales has little ability to capitalize on this principle. While real estate may never be as liquid as stocks or securities, the biding method increases your liquidity significantly. “BID ON ME” will reduce your cost on two fronts. First, the holding cost of the property is eliminated. “OFFERS” will terminate expenditures such as: interest, taxes, and maintenance. Second, there is the cost of lost opportunities. Consider what investments might be lost while your equity is tied up in unproductive properties. Let your equity work for you!

d) Promotion
    This is one of the strongest advantages of HAPPY HERALD REALTY - the promotion of your property. It is inconceivable to believe that anyone would attempt to sell a product such as a house or other real estate without properly advertising it. However, real estate agents find it difficult to do a proper job of advertising simply because the funds are not available. No one knows when or if the property will sell; therefore, it is difficult to risk a large expenditure on advertising. With HAPPY HERALD REALTY we can effectively determine when the property will sell; therefore, the owner can afford to attribute a certain amount of that sales price to advertising. By using signs, print media, electronic media, the internet and a direct mail campaign we can perform a media blitz that will reach all the prospective buyers. We can put more people across your front door in two weeks time than you would otherwise see in two years!

e) Excitement
    Excitement and motivation are used to the fullest with HAPPY HERALD REALTY’S “BID ON ME”. This sense of excitement works to create the psychology of impending sale, which is so critical to the success of your SELLING PROCESS.

It is the interaction of these five areas, which make HAPPY HERALD REALTY’S “BID ON ME” today's most successful methods of marketing.

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2.What Seller's Want from their Real Estate Agents
Actual Seller Input, Not Our Assumptions: We may think we know what sellers want and need from us in order to sell their home or land. The best way to know is to ask. This was done by the National Association of Realtors in their "Profile of Home Buyers and Sellers". Surveys taken of sellers probably show many of the things we would assume, but possibly not in the order of importance we would think. The requirements here are in order of their importance to the sellers, most important first.

Find a Buyer for Their Home: Helping find them a buyer was, as we might have assumed, the top requirement of sellers, with 28% placing this as their top concern. This tells you that your marketing plan and media are quite important to your prospective listing clients.
Sell Their Home Within a Specific Time Frame: This seller requirement was only 1% below the top one, with 27% of sellers desiring this service from their real estate agent. It's highly related to the first one, with marketing being a very important factor in how fast a property sells.
Price Their Home Competitively: With 17% of sellers placing importance on this requirement, they're telling us that puffing their egos with a fat listing price isn't what they want. They want their property to sell. Do a thorough market analysis and be honest with them about expected results at different price points.
Find Ways to Fix Up Their Home to Sell It for More: This might surprise some, at fourth in importance with a 12% response. Maybe that Home Staging® class would be a good idea. Or perhaps suggesting a staging professional would be appreciated. At the very least, don't be bashful about suggesting things to do to enhance the look and presentation of the property.
Help With Paperwork, Inspections and Preparing for Settlement: Many real estate agents would have assumed this requirement to be higher on the list. However, only 7% of sellers made this a priority need. It is very important, but using this list as a guide, you want to build your listing services presentation around marketing and proper pricing first.
Negotiate and Deal With Buyers: Here again is an item that many real estate agents value more than their seller clients. At 5%, sellers are telling us that it's one of their needs, but down at sixth on their priority list. By all means, tell your sellers about your negotiating skills, but use this list to prioritize your presentation.

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3. Show, Market and Sell Agreement

Dear Seller,

Thank you for providing us with information on your property and your interest and motivation to sell. I would be glad to provide you with a viable selling price that is in line with the demand of present conditions.
I am confident we can perform the task of accomplishing a sale within 90 days from signing the Show, Market and Sell Agreement with Happy Herald Realty.
Apart from the antiquated methods utilized by most Realtors, we at Happy Herald Realty have a refreshing approach to sell your property and with NO COMMISSION charged to you the SELLER.
We provide a full range of marketing tools that will spotlight your property and attract BUYERS.
It is evident that our competitors cannot match our approach. We provide you this service at NO COST.
We are part of a publication company with distribution to over a 1/4 million households in three counties in Florida featuring and promoting only REALISTICALLY PRICED PROPERTIES to generate a platform for buyers.
In the process we familiarize and qualify these buyers like you and provide our services to locate properties from the viable inventory that we create.
Our expertise in pricing properties that are not inflated coupled with the co-operation of a knowledgeable SELLER who is motivated to sell within a short period of time. These ingredients give Happy Herald Realty a superior opportunity to create a SALE in this challenging marketplace.

I am happy to provide you with an EVALUATION of your property which qualifies you for a NO FEE agreement for the next 30 days based on the Evaluation Price below. We will require the following information from you to proceed:

Agreement to Show, Market and Sell your property for 90 (ninety) days with a review of the Selling Price at the end of each 30 day period.
Establish a Selling Price of: Not less than$______ and not more than $______
Registration of all buyers brought to the property during this period of time.
You will not Co-Operate or List with any other Realtors or Agencies during this 90 day period.
If Happy Herald Realty performs in bringing an offer to you as indicated in Conditions of Sale section below and you choose not to perform and withdraw, then you will agree and be responsible to pay a marketing fee of $1,000 to Star Publications.

Conditions of Sale:

Property to be sold in as is condition with buyer paying all closing costs.
Buyer has the right to inspect the property at their expense up to five days from effective date and review all condo or homeowner’s association by laws, rules and regulations, disclosures and all associated documents required to perform their due diligence. If not satisfied Buyer may cancel contract and all deposits will be returned and the contract will become null and void.
The contract is signed as a cash deal with no mortgage contingencies. REAL ESTATE CLOSING on or before 60 days subject to title examination by Buyer’s Attorney or closing agent.
Buyer Pays REALTORS FEES.

Once again thank you for inviting me.
Please feel free to contact me if I can be of further assistance.
Gabriel Palotas Real Estate Manager, gpalotas@happyherald.com
Happy Herald Realty Office: (954) 580-7789 Cell: (954) 562-0110
Corporate: (561) 394-7466 Fax: (561) 395-1313

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4. The Changing Real Estate Market

REALTORS continue to write about the changing market and how practices need to change to keep up with it. What worked during the years of the Real Estate market boom aren’t working now due to falling home values and changing attitudes. Closing on a home, for instance, always had its share of difficulties, but now they start sooner and only get more complicated. Beginning with loan difficulties and finishing with long closing periods with countless delays, navigating a Real Estate transaction takes endless patience and a lot of know how.

“Tailor your offer price to the specific house you want to buy. How much you offer should depend on how much you can comfortably afford to pay, which may be less than what the lender says you can afford. The price should be determined by current local market values, how well the listing is priced for the market, and whether or not you are in competition. HOUSE HUNTING TIP: Buyers making offers in competition should try to make a rational decision regarding how much they’re willing to pay. Don’t get caught up in the frenzy of activity and offer more than your top price for the property. If you overpay, you could get cold feet and back out. In this case, your deposit might be at risk. Buyers who offer an under-asking price can improve their chances of starting a dialogue with the seller if they are pre-approved by a lender for the financing they’ll need to close the deal. The number of transactions that fail has increased in the current market.”
Marketing Can't Sell Overpriced Properties:
You might as well be straight up from the beginning. If you're going to take an overpriced listing, have the nerve to tell your seller that it is overpriced in your opinion. Make sure that you make it clear that you hope to see either a market change or a price decrease in a reasonable amount of time.
Be sure that you also make it clear that no amount of marketing will get their home sold, and that some agents may not even show it if they believe it to be out of the acceptable price range.
Newspaper and Magazine Ads are More for You than for Your Client:
The industry consensus is that most print advertising is more advantageous to the real estate broker than to their listing clients. These ads generate phone calls and possible buyers, but generally do not produce a buyer for the specific property in a given ad.
With a recent NAR survey of actual buyers stating that less than 7% first saw the home they bought in a print ad, it's clear that the consensus is validated.
Let your client know these facts and that they shouldn't expect a big showing response after ads run.
Internet Marketing is Effective, but it's a Numbers Game:
The accessibility of the internet and the ease with which buyer prospects can research properties makes it an excellent marketing media. However, buyers begin their home searches sooner, and with longer time frames between research and a purchase.
If you are reporting web site listing page views or visits to your client, be sure that they understand that there may be hundreds or more that are only mildly interested or are using their listing as research to justify their interest in another property.
No matter the marketing, it won't sell until it's shown. Actual showings will tell the tale.
We Rotate Our Listings Through Various Print Media:
You Haven't Priced Your Home to Sell
Sellers say, "But I don't want to give away my house." Of course, not. You want to sell it. To sell your home, the price must be right. Don't "test" the market or ask an inflated figure because if you do, your home will probably sit on the market and the DOM will continue to tick. Dated listings don't generally sell for list price.
To avoid overpricing your home examine the sold comparable sales. Adjust for square footage, if necessary. If your home has a bad layout or is located in bad location such as next to a school, on or near a busy street or bordering a liquor store, you're not going to get the same price as homes with a good layout and in a good location.
For example, if the last three homes sold at $400,000 but you feel they are not comparable to yours because they don't contain updates -- but they were located on a quiet street and your street is noisy -- your home is probably worth about the same. A plus-$50,000 adjustment for the updates could wash out the minus-$50,000 for the busy street.
In a buyer's market, price your home a minimum of 2% less than the last comparable sale. If you can't live with that price, then don't put your home on the market and set yourself up for disappointment. Overpricing is the worst mistake a home seller can make.

The Worst Home Selling Mistake
Original Price: $1.3 Million
Sold at $695,000.

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5. Top Real Estate Predictions for 2009/2010

Little or No Appreciation as Market Bottoms: The real estate market will bottom out in areas with low inventory but prices will not stabilize. In parts of the country hardest hit by 2007 - 2008 foreclosures such as California, Michigan and Florida, prices will continue to soften. In scattered markets, the bottom will already have been reached by April but media won't report it until late summer, after a trend has been established. There will be no more dramatic price drops such as those 30% to 50% declines we saw between 2006 and 2008. But the market will not stabilize in 2009. Furthermore, consumer confidence will continue to fall, and more people will find themselves out of work. On the bright side, employed home buyers with good credit will find 2009 is an excellent time to buy.
Housing Inventory Will Fall: Sellers will withhold listings from the market or cancel listings that don't sell within 90 days. Although persistent demand will come from first-time home buyers and investors, inventory will fall. Falling inventory will not drive up the prices. The number of homes for sale in states such as California will decrease by 45% or more from the same months in 2007. New home starts will fall by the wayside, and the construction industry will see at least another 10% in layoffs. Although fewer homes will be available for sale, those sellers will be motivated to sell.
Banks Will Rent Out REOs: Instead of taking a loss, banks will begin to rent out REOs, hoping to sell when the market turns around. In an effort to drive up housing prices, banks will slowly release their REO inventory to the market and price those homes at 5% to 20% under comparable sales. Banks will be under great pressure to cut losses and increase revenue. Although state charters prohibit banks from renting out bank-owned homes, banks will find a way to work around this prohibition. By transferring title from BANK OWNED HOMES into holding companies, banks may find a loophole that will allow them to rent out homes instead of putting them on the market. This maneuver will let banks receive income while waiting for the market to turnaround. To rent the homes, banks will be forced to fix them up.
Buyers Will Compete in Multiple-Offer Situation: Buyers will bid up artificially low prices through multiple offers. Due to limited inventory, coupled with pseudo pricing on short sales and foreclosures, more buyers will find themselves competing over the attractive listings. It will not be unusual for sellers to receive 20 or more offers on these listings. Multiple offers may drive up the prices to market value but buyers will refuse to pay over market value. The stiff competition will cause frustration and confusion among buyers who will find themselves going head-to-head with investors. Cash buyers will win every time over buyers who need financing. This means it will be more important than ever for home buyers to hire an excellent negotiator.
REAL Estate Competition Will Shrink: Smaller real estate companies, failing banks and struggling title companies will merge into larger companies, shrinking competition toward a monopoly. One can count only so many sheets of copy machine paper before it makes no further sense to try to cut costs. Although real-estate related companies such as banks, escrow and title have already reduced staff and cut expenses, many will find themselves unable to continue operating without folding their doors or merging with a larger corporation. Real estate brokerages are not exempt and will struggle as well. As a result, competition will shrink toward monopoly and a few corporations will control various aspects of the real estate industry. This will limit consumer choices as the little guys continue to get stomped on. The public will turn the other way as the government steps in to control the banking industry, because consumers will be pushed to the brink of desperation and apathy. Since more real estate agents will be leaving the business, the industry will weed itself of lackluster and inexperienced real estate agents.
Sellers Will Shun Loan Modification Programs in Favor of Short Sales: More sellers will choose to pursue short sales or walk away from their homes in lieu of trying to do a loan modification. Upside-down home sellers may try to modify their existing loans but those efforts will be met with roadblocks as lenders exhaust other options. The LOAN MODIFICATION process will be cumbersome and riddled with conflicting demands within the same banks. Home sellers will ask themselves if they are better off selling their homes on a short sale, absorbing the hit to their credit reports and becoming renters for a few years. Many sellers will turn to a short sale or walk away than try to directly deal with mortgage lenders. Real estate agents who specialize in short sales will see an uptick of business.
Banks Will Pursue Foreclosure Options Over Loan Modifications: Faced with the option to work with home owners by modifying existing loans or file foreclosure, banks will choose foreclosure. Banks will find it is easier and less expensive to foreclose than to attempt LOAN MODIFICATION It is probable that banks will decide it is more profitable for them to foreclose than to rewrite a loan. In that event, banks will prefer to make loans to new borrowers who meet rigid standards. As a result, the number of foreclosures will continue to rise. Many 5/1 ARMS will begin to adjust during 2009 and 2010, causing more foreclosures. But consumers won't see many of those foreclosed homes show up in MLS
Mortgage Interest Rates Will Spike: Mortgage rates will rise in 2009 but will remain historically low. Because MORTGAGE RATES are influenced by mortgage bonds and mortgage-backed securities, not fed rate cuts, I predict interest rates could rise to 7% in 2009. Maybe more if investors continue to worry about inflation and the government adds a new supply of U.S. Treasuries to the market to offset the looming deficit. On November 7, 2008, as I write this, the federal funds rate is 1%. It's not likely to go much lower and, in fact, will probably go up. Mortgage rates are not tied directly to the federal funds rate but that does influence its movement. Historically, mortgage rates exceeded 8% from 1970 to 1992. So while the bad news is rates will rise, they won't surpass 8% Rates Will Increase as Demand Increases: As the demand for rentals increase, rental rates will rise in 2009. Surging numbers of home owners will lose their homes in 2009, which will turn former home owners into tenants. Some HOME OWNERS WILL WALK AWAY from their residences, deciding that home ownership is not worth the aggravation, and return to living in rentals. Because new construction will be at a standstill, existing inventory will serve as shelter. There will be fewer rental homes available than the demand will dictate, which will put upward pressure on rental rates. Sellers who are unwilling to take a hit on their sales prices will put their homes on the market as rentals, but that won't provide enough inventory to fulfill demand.
It's a good time to be a landlord. Tax Breaks for Home Selling Will be Revised: Congress will consider eliminating the tax exclusion on home selling profits, and the tax break for home selling may disappear. Baby boomers who hope to downsize in 2009 may get hit with an unexpected change in the I.R.S. Tax Code Section 121, if Congress revisits this tax break. The law has been exempting $500,000 for married couples and $250,000 for single people from capital gains only since 1997. I predict that the government will try to change the HOME SALE TAX EXCLUSION in 2009, disallowing the free money that up to now sellers have been able to pull out of their homes upon resale. Congress needs cash to refill the treasury depleted by bailouts and continuing military action. Sellers should consult a CPA to determine the best way to avoid taxes upon resale.:

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1. Writing Purchase Offers in a Buyer's Market

Simply put, buyers' markets exist when there are a lot of homes on the market and very few buyers. If inventory--the number of homes on the market in your neighborhood--has been rising, it's likely that the days on the market have been increasing. Couple that with declining sales figures over previous months, and home buyers are in an enviable position to negotiate. Here is how you can write a buyer's offer to your advantage.

Request E-Mail Listings & Updates: Almost 80% of home buyers today start a home search online. However, many buyers are unaware that the data they are viewing could be dated. Many Web sites reboot every 24 hours. On other sites, agents sometimes leave expired and sold listings as active, hoping for ad calls. To avoid wasting your time, ask your agent to register your e-mail address so you can receive daily MLS changes of reduced prices and new listings. This is one way to gain access to the same data agents receive.
Tour Price Reductions: If you're like most buyers, you will want to offer less than asking price. It's just human nature. But if you plan to low ball, you'll probably be unsuccessful at getting that type of offer accepted if the home was just listed. Instead, tour homes that have had recent price reductions or have been on the market for at least 30 days or more. These sellers are more likely to be receptive to a low-ball offer.
Obtain Comparable Sales: When you find a home you want to buy, ask your real estate agent to print out a list of similar homes in the same neighborhood over the last six months sorted by: Active Listings, Pending Sales, Sold. The list should contain the following specifics: Property Address, Age Square Footage, Lot size, Bedrooms & Baths, Sales Price,
Request Contingencies: In a buyers' market, you're in control. Write your offer contingent upon the property appraising at the agreed upon sales price and on obtaining your loan. Check with your lawyer to find out if you can ask for a loan contingency that will protect you all the way to closing. Ask for a reasonable period to conduct inspections and to approve title, geological and pest reports. Ordinarily, during contingency periods, buyers can back out without risking deposit.
Ask for an Allowance or Credit: If you find the perfect home but you don't like the color or condition of the carpet, for example, ask the seller to give you a carpeting allowance in your offer. Check with your lender before you write the offer to find out how to word a credit clause that is acceptable to the lender. You can ask for more than it will cost to repair or replace an item to cover your "hassle" factor. Many lenders let borrowers receive up to 6% of the sales price as a cash credit against closing costs.
Reduce Your Closing Costs: Depending on your local area, there may be fees associated with closing that are customarily paid by the buyer such as title insurance, property taxes, recording fees or escrow. In a buyers' market, you can ask the seller to pay those closing cost. Typically, those costs can add up to one or two percent of the sales price and are often paid out-of-pocket by buyers. Ask your agent if these fees are negotiable. Then ask the seller to pay them.
Renegotiate After Home Inspections: All buyers should obtain a home inspection. Most contracts give buyers the right to cancel a contract if the home inspection reveals repairs or defects that are unacceptable to a buyer. However, if the repairs are minor, you might want to renegotiate the sales price or ask for a credit against your closing costs. Caution: don't ask for a price reduction if the repairs were evident when you first saw the home or the seller might not be willing to negotiate with you.
Request Extras: Sellers realize that in buyers' markets, often they have to give a little something extra to the buyers to entice a sale. Don't be afraid to ask for a home warranty protection plan that covers you in the event an appliance breaks down or the plumbing or heating malfunctions. Normally these plans protect you for one full year from the date of closing.
Ask for an Item You Don't Want: Did you like the sellers' dining room table? China cabinet? Fish tank? Ask for it in your offer and use it as a negotiating tool. Often this draws the sellers' thoughts away from price and directs those thoughts toward the personal property. If the listing stated the washer and dryer are not included in the sales price, ask for them. If the sellers balk, tell your agent to say, "OK, if we leave the washer & dryer, are you then ready to sign the offer?"
Shorten Acceptance Period: There often is no reason to give a seller more than 24 hours to make a decision about your offer. If your agent is presenting the offer in person, she may ask for a decision upon presentation. But don't give them days to talk to Uncle Harry, their neighbor down the street or the coworker who knows everything about real estate. There are a lot more homes on the market and you deserve a fast answer.

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2. Who Really Pays the Commission?

It can be argued and, quite rightfully so, that the buyer always pays the commission. Why? Because it's typically part of the sales price. If the seller did not sign an agreement to pay a commission, the sales price might have been lowered. And therein lies the appeal of buying homes through unrepresented sellers because, given the same logic, those prices should reflect a net sales price without a commission. But those sellers haven't quite figured this out yet which causes potential buyers of those listings to be consistently disappointed.

3. Buying on Happy Herald Realty's "Bid on Me" Program

One of the most noteworthy questions on everyone's mind is, "Is this economic downturn finally over?" I would respond with a vibrant, "perhaps" or "it could be" and then there is my favorite, "I have no idea".
It is safe to state that not a single person really knows. Ask Cramer from MSNBC and he'll articulate that we will discover the bottom in the summer of 2010, yet that is not regarding local markets, it is for the entire country.
One of the best indicators to a bottom is the kind of action Auction Sales acquire. If buyers are capable of purchasing properties at the first offer they present, there is a good possibility there is room for a dip. If the auction becomes a bidding war, then we are watching the commencement of a bottom. Recently, what we've seen at auctions are buyers being outbid on houses they would have recently been able to buy with zero contenders. As this is progressively growing we should see that it is the time to get in.
Auctions for real estate were historically reserved for distressed properties. This is not true anymore. We are now seeing a shift in people's perceptions about the value that a real estate auction can provide.
More and more home sellers and home buyers are realizing the benefits of selling and buying through an auction. It only makes sense. There are not many sales methods that equally favor the seller and the buyer. Auctions offer a win-win situation for everyone involved.
Happy Herald Realty’s “Bid on Me’ Benefits
1. Property is sold at true market value resulting in the highest possible price. 2. The property is exposed to a large number of pre-qualified prospects. 4. Competition among bidders is created resulting in accelerating prices. 5. Property is sold "As Is". 6. There are no lengthy negotiations. 7. Fast settlement and payment reduces carrying and maintenance costs and taxes. 8. Property sells in a very short time period.
“BID ON ME” Is a new way of selling properties developed for Happy Herald Realty. It is a fusion of ideas based on the auction concept without the stigma and negative connotation. “BID ON ME” creates mass interest for the benefit of selling property and receiving multiple-bids. If you would like to know more about “BID ON ME” and how you could sell your home without paying any selling commissions, contact us and we'll be glad to provide all the details to start marketing and sell your home. DECIDE IF YOU NEED A CHANGE. Call (954) 562-0110 gpalotas@happyherald.com.