5 Reasons to Use a Licensed Realtor When Buying Property
Posted at 12:53 PM, Nov. 6, 2008
1) Our services are free to you. Buyers do not pay ANY commissions.
2) Today’s realtor knows how to efficiently search properties online that meet your criteria, desires and needs foregoing long days and weeks driving around in the car looking at unnecessary properties. We search properties daily, so we can find them much quicker knowing which codes and criteria to enter in the MLS narrowing the potential list of “go sees”. AND, a good realtor will preview the selected properties before taking you out, eliminating potentially wasted time for you.
3) The negotiation of the property is our expertise. You need a third party, unattached and knowledgeable professional to keep you from making poor buying decisions for a purchase worth hundreds of thousands of dollars. You may be emotional and may want to make any offer possible to get the property you fell in love with at first site.
We know how to strategically structure an attractive offer to the seller through a fair price, appliances, home warranties, closing cost contribution, etc. With that in mind, we also know how to get you the best possible price. The realtor knows how to accurately assess the neighborhood’s current market value the property is located in to strategically create the right offer.
4) Beyond the negotiation process is the actual transaction. The realtor knows the real estate laws, rules and regulations which will guide you through the transaction. We handle all the paperwork and track time periods so that nothing falls through the cracks. We know when to order a home and termite inspection, what kinds of additional addenda are required, and what additional legal rights YOU have. For example, what’s on the buyer advisory, the value of a home warranty, explaining the Seller Property Disclosure Statement and what to be aware of, explaining what terms like “Superfund or WQARF” are and what they mean to you…etc.
There are also other valuable things your realtor can point out. For example, you have allergic reactions to scorpion bites, and the particular community you are interested in has an abundance of scorpions throughout the area.
5) The entire team that comes with your realtor will all watch out for your best interests. They’re qualified and trustworthy professionals that work with your realtor every day. For instance, a quality home/termite inspector that won’t do a poor job on the inspection that would later come back to haunt you; a reliable mortgage broker that will guide you to the right mortgage program that meets your specific needs so you don’t end up finding a loan officer out to make a quick buck who over approves you, setting you up for a foreclosure in 2 years; an efficient and knowledgeable escrow officer that will guide you through that stack of paperwork your signing at the title company.
Why would you spend hundreds of thousands of dollars, most likely the biggest purchase you’ll make in your life, without using a licensed professional? Would you walk into a trial hearing without an attorney representing you?
Wouldn’t I go to jail if I committed mortgage fraud?
Posted at 3:21 PM, Oct. 23, 2008
The Forgotten Homeowner: What happened to childhood values when we grew up?
My husband and I purchased our home in 2005. This was NOT intended to be our retirement home. However, with the entire neighborhood foreclosing or doing short sales, we’re still down over 50% in our home and we can never leave unless we want to buy ourselves out of it.
We did the right things:
- We put 20% cash down
- We did not take the builder’s offer to add our window coverings into the loan, we paid cash
- As a licensed realtor, I did not take my real estate commission as income, but added it onto the down payment
- We made the choice not to go through the builder for the flooring because they were so overpriced –so we did our research, saved our money and paid cash for our travertine, wood and nice carpet.
We should have chosen the thickest granite, floors with gold trim and the works through the builder.
In school, we’re taught that “good kids get rewarded for good deeds”. We got gold stars for doing the right thing and good grades. What happened to that philosophy when we became adults?
My husband and I elected to do a 5 yr ARM so that we could pay off a land investment within that 5 yrs by paying interest only on our primary. Since lenders gave loans to people that truly didn’t qualify and credit card companies keep passing out money like it’s water, our neighbors are dropping like flies.
Our 5 yr ARM comes due in 2 ½ yrs. Trying to be proactive, we called our lender, Countrywide, and spoke to about 15 different people to find out what our options were. We can’t refinance because our mortgage is still more than the current value of our home.
We asked how we qualify for a loan modification. Countrywide’s representatives consistently said the same comment, “You have money in the bank? You have no credit card debt? You have no car payments? You still have jobs?....” So sorry, but since you can overpay for your home, you will. Unless, of course, you want to do a short sale, we can do that for you.
Do I understand this right or am I missing something? Countrywide would rather lose more money and give my house to a total stranger than work something out that’s a win-win situation and keep a good paying customer and let me stay in my home…..REWARD me for doing the right things.
I’m sorry, did you say it’s MY fault, Countrywide? Weren’t you one of the companies that went out of business by giving out money to people that YOU shouldn’t have? Isn’t it YOUR fault that all my neighbors are leaving their houses through the infamous “buy and bail” or simply foreclosing because they can no longer afford the house and credit cards that YOU approved them for?
Did I hear that the government is bailing out some of these financial institutions? Wouldn’t I go to jail if I committed mortgage fraud? What incentive is there for the good paying homeowner who saved money to buy their house, doesn’t have credit card debts or auto loans, and wants to save for retirement? There isn’t any. So, what’s preventing me from buying another house at a blue light special price and walking away from this house? There isn’t a lot of incentive for me not to, is there?
This principle is broken. They came out with the Mortgage Debt Forgiveness Act of 2007. Why don’t they come out with the “Mortgage Debt Forgiveness Act of 2008” for homeowners that purchased a home in 2005 or 2006, is a primary residence and fully qualifies for their mortgage, and refinance it into a 30yr fixed at today’s market value? Why doesn’t some of that bailout money go there instead of paying for multi-million dollar severance packages and spa treatments for the crooks who committed mortgage fraud?
If I have 20% down for another home, there is nothing to stop me from bailing. Bad credit? Who cares! And, I’m actually now contributing to the decline of the neighborhood by leaving another vacant home that will undoubtedly get vandalized and cleaned out. At least I’ll have my dignity knowing that the only person looking out for ME is ME, and I took action. We’ll be somewhat better off in saving for our long term future than sitting here in a box that’s declining in value daily.
And, now we’re hearing from the most likely Presidential candidate to win that our taxes might actually increase because we should feel so compelled to pay more as an “American” to help the “less fortunate” because we can. So, now the government’s going to pick my charity too. God help us all.
Sarcasm Wins Business
Posted at 12:33 PM, Aug. 8, 2008
OK . . .so I've been feeling like a beaten down rag doll in this market. I've screamed, I've cried, I've quit, I've had a mental breakdown, and then I laughed and took a break.
I started venting with a great friend and fellow realtor and I thought of how funny it would be to post a role-play you tube video of all the things I'd LOVE to say to clients or unprofressional realtors (unprofessional? No, Really?) from time to time.
"Oh really, you don't say...hmmm, your house has been on the market for TWO MONTHS and you've had NO offers, eh? And, you say it's your realtor's fault, hmmmm. Well, MAYBE you shouldn't have bought a house you couldn't afford two years ago and now you're asking TOO MUCH MONEY. MAYBE, it's because your lazy *butt* won't get off the couch and clean it up a bit so it doesn't smell like dog *pee* and look like a tornado hit. MAYBE it's because you're expecting a *darn* miracle from an elf named Sam."
The *words* signify a clean version of what I'd like to say so you can fill in the blanks with your word of choice. wink wink
So, in the end -I have a funny tshirt company and decided to print a few of my sentiments on the front of a shirt and wear it proudly.
Turns out, they're great conversation starters. Turns out, it's a great way to seem like you're a professional realtor with a great sense of humor in trying to survive the market and people want to work with you.
So, it turns out -it's a great way to get new clients who want to take advantage of a great buying opportunity.
You can order them from my site in assorted colors, styles, shapes and sizes and they're shipped directly to you. If you'd like your logo or name on it -this can be done as well. Just email your logo with company policy approval guidelines if necessary and/or your name to Sales@SnoodyBoody.com. More sayings and designs on the way.
If nothing else, remember to breathe. Remember to laugh. And, if you drink...have one or two or three, but not alone. Start a support group and meet once a week at 5pm...at the bar.
Remember there's more to life so don't forget to LIVE a little. Happy Selling, Colleagues!
  
Downpayment Assistance for Home Buyers
Posted at 11:44 AM, Aug. 7, 2008
THANK GOODNESS FOR POSITIVE NEWS!!
It's been a busy week! Seller Down Payment Assistance Programs were eliminated by legislation and signed by President Bush on July 30, 2008. July 31, 2008, bill H.R. 6694 was introduced and sponsored by U.S. Rep. Al Green (TX-09).
The bill would remedy a harmful provision in the new housing law which limits homeownership opportunities for low and middle-income Americans. The legislation is co-sponsored by U.S. Representatives Gary Miller (CA-42), Maxine Waters (CA-35), and Christopher Shays (CT-4) and reauthorizes and reforms charitable downpayment assistance funded in part by sellers, which has helped over one million families and individuals become homeowners since 1999.
Congratulations! WE DID IT. More than 32,000 Americans have called on Congress and the Bush Administration to preserve charitable downpayment assistance over the past year through phone calls, letters, and emails. They join a broad coalition of supporters, including the National Association of Homebuilders, the Labor Council for Latin American Advancement, and the U.S. Conference of Mayors, the Congressional Black Caucus, and the Congressional Hispanic Caucus.
If you haven't yet, I still ENCOURAGE you to visit www.getdownpayment.com and let your voice be heard.
Read More at Ameridream.org. Charitable downpayment assistance funded in part with seller participation has allowed homeownership to grow without using taxpayer dollars. To date, more than one million families and individuals have utilized this downpayment assistance, generating nearly $10 billion in home equity for those families. These working families qualify for FHA insured loans in every respect, but are unable to save the needed downpayment. AmeriDream has provided more than 250,000 gifts to aspiring homeowners, approximately 80% of whom were first-time homebuyers. AmeriDream also has helped educate 60,000 homebuyers through homebuyer education courses, helped 1,200 homeowners retain their homes when confronted with mortgage difficulties, and committed over $30 million to affordable housing development in local communities.
Trends in Housing Design and Features
Posted at 10:30 AM, Aug. 6, 2008
 What's IN and What's OUT
Understanding the current trends and requirements of today's home buyer may help you stage your home better for sale. Consider these new up and coming styles to make your home updated, fresh and desirable to those looking to buy a new home.
What's In
Outdoor Living. Patios, balconies and courtyards are now considered an extension of the home and are viewed as another room in the house. Fireplaces, outdoor kitchens and comfortable outdoor accents and furniture are more popular than ever.
Fully Concealed Appliances. The cabinet fronts and wood-printed covers for the fridge aren't enough. Appliances are now hidden behind hinged doors.
Copper and Bronze Tones. The shimmery metallic finishes are being replaced with softer shades. The built-in refrigerator, oven/stoves, etc.. are outfitted with copper and bronze tones bringing warmth to metallic finishes.
Bathroom Suites. Bathrooms are now multi-functional. We're seeing flat screen t.v.'s, mini fridges, wine fridges, and cappuccino makers! This room will soon have all the funcationality of the entire home!
Freestanding Bathtubs. The claw foot tubs, oversized soaker tubs, or 'bath thrones', have replaced whirlpool baths as the new must-have bathroom piece.
Pet Showers. Clean pets mean clean homes. Who wants to mess up a bathtub when this feature can be added to a garage or outdoor patio area?
What's Out
Living Rooms. This unused room is ceasing to exist. Some floorplans that have the 'living room' space are being turned into game rooms. People are opting for the great room more and more. They'd rather have space in other areas (such as that bathroom suite!)
Cathedral Ceiling Heights. The absurd look and wasted space of 20 ft ceilings in 12x10 rooms is finally wearing on buyers.
Tiny Balconies. Since outdoor living is becoming an extension of indoor living, tiny balconies with room for one chair are worthless.
McMansions. Less is more. Along with the ceiling height, people are not looking at castle size homes like they used to.
With fuel costs rising and a focus on the environment, homeowners have completely redefined the "dream home". High ceilings, huge houses and wasted space just aren't a priority. Saving energy, functionality and warmth are taking a front seat!
How to Price Your House to Sell in Today’s Market
Posted at 8:01 PM, Jul. 30, 2008
How to Price Your House to Sell in Today’s Market
This market is unlike what many realtors who have only been in the business a few years have experienced and has been forgotten by those who have sold real estate for over ten years.
Accurate Comparative Market Analysis
Be sure you/your realtor researches the neighborhood comps accurately. The pending contracts are key to you as a new listing on the market. In a declining market, you MUST be ahead of the activity. This is why pending sales tell us such important information, such as what homes must be listed at to attract potential buyers. They have more current data than the properties that sold a few months ago and are more relevant than the active listings sitting on the market.
Pay close attention to the square footage of the homes under contract in the neighborhood. What is the average dollar per sq foot of those homes? How long was each of the properties with pending contracts on the market?
How quickly do you want to sell? Compare the list price and days on market of the pending sales. Does your home fit into the same sq foot range? If not, how long has it been since a home of your size has sold? For instance, your house is1100 sq ft and the ones that are under contract are all between 1500 and 3000 sq ft.
The active listings are important as well. How many are on the market within your size of home? What is their condition compared to yours? How many short sales and foreclosures are coming up? An abundant amount of upcoming short sales and foreclosures will only decrease the value of your home. Therefore, your home should be priced on the aggressive side to get it sold quicker at a higher price.
Foreclosures and short sales matter. Many clients tell me that those houses don’t count because “their” house is in good condition. Unfortunately, they do count. In most cases, appraisers work for the lenders. They are appraising the value of the home to protect the lender’s asset.
Abundant inventory and upcoming short sales and foreclosures are a factor in the appraisal. Therefore, if you price your home too high because it’s in “mint” condition, and you’ve received an offer (so you’ve had it off the market for about 2-3 weeks as PENDING) and the appraisal doesn’t come in at purchase price, you’ve just wasted another 3 weeks off the market in which the cumulative days on market has increased during that time. YES, it’s true.
What about cash buyers? If you have enough cash to buy a house without a mortgage, I have one question for you. Put yourself in the buyer’s shoes, would you pay more than the appraised value for a property even if you had cash? Probably not, that’s why you have enough cash to buy a property outright.
Price Reductions should be appropriate. If you’ve had more than 10-15 showings in the first 30 days and no offers, a price adjustment is probably necessary. I’m not referring to a few hundred dollars or a couple thousand dollars –this is referred to as ‘chasing the market’ and you will always be one step behind. Talk this over with your realtor and look at the facts. The numbers don’t lie. No one’s “opinion” matters here. If the market won’t accept your asking price or even make an offer, it might not be fair but it is reality. Remember, your house is only worth as much as a buyer is willing to pay for it. How many homes went from Active listings to Pending contracts since you listed? Why did you miss those buyers?
Consider signing a Price Reduction form for your realtor in advance. Your realtor will not reduce the price without consulting you first and mutually agreeing on a new price. If you suspect he/she would, then why did you hire a non-trustworthy realtor to handle the most expensive asset you own?
No Reduced Price Signs! This is a classic and common error on behalf of realtors around the globe. You get stressed out and then your realtor gets stressed out and panics. He/she puts out the PRICE REDUCED sign rider and plasters it all over the MLS and marketing material. This has only informed the public that your house has something wrong with it and won’t sell. Take a proactive approach…..look at the comps again and I bet that price reduction is in order.
Remember, full time licensed realtors sell homes every month whereas you may only sell a few throughout your lifetime. They are trained and educated in the legal requirements and will protect you and the most expensive asset you own. “Home sellers who use a real estate professional can expect to sell their homes for 16% more, on average, than sellers who try to do it themselves.”-- 2005 National Association of REALTORS® Profile of Home Buyers and Sellers
I suggest interviewing three realtors before making your choice.
Upcoming topics:
- Ten questions to ask prospective listing agents
- Home & Design: What’s In and What’s Out
- 10 Tax Changes for 2008
Why the 300 Billion Dollar Assistance Bill Isn’t the Answer
Posted at 12:08 PM, Jul. 27, 2008
The House and Senate just passed the 300 Billion Dollar Assistance Bill that will help current homeowners facing foreclosure if they meet certain criteria. Did this Assistance bill come in to little to late? What about Victims of foreclosure already that would have been able to meet the criteria but lost their homes already? Who is to take responsibility for this Foreclosure Mess?
It's JUST my personal opinion....
They’re rewarding bad decisions and punishing the people who did NOT contribute to the demise of the real estate market by taking away the Down Payment Assistance programs. And, who’s going to pay for it? WE ARE -the TAX PAYERS! So, not only am I making my mortgage payment on a house I overpaid for and I’m losing the value of my property, but now I have to pay to bail out my neighbor? At the risk of sounding like Denise Richard’s potty mouth, ARE YOU %@!*%$@! KIDDING ME???!!!
So, you’re saying that this is the American Dream? Julie Smith bought a house at $600,000 and is making her payments on time every month and can afford her home because she put 20% cash down. Julie’s next door neighbor squeaked into their home with no money down and now they can’t afford their monthly payments…along with 3 other neighbors. So, the four neighbors get bailed out and the values of the homes in the neighborhood have gone down. Meanwhile, the one homeowner who got into her home legitimately (Ms Smith) is still making payments on a $480,000 loan when her neighbors who live in the same floorplan are making payments on a $250,000 or so loan ?
What happened to the principle we’re taught to raise our children with: Reward good behavior, don’t bribe the kid with candy for not repeating bad behavior? Isn’t that what we’re doing? There are consequences for our actions. If certain people are given a “get out of jail free” card, then ALL of us who purchased a home in 2005 should get that same card.
What they should be doing is keeping the DPA programs. They’re punishing the WRONG people! The ones who are keeping our economy going are now being swiped of the opportunity if they don’t have $10,000, $20,000 or more sitting in a bank account.
The question SHOULD be: Why are they taking away a program that allows people who are well qualified with lengthy job history, good credit scores, and good income-to-debt ratios but don’t have a huge chunk of cash sitting in their bank- from buying the surplus of homes that are sitting on the market for sale? There is a big market of first time home buyers, people who are recovering from life changes such as divorce, and multi-cultural US citizens who are buying the inventory. A large percentage of this group does not have enough cash to cover the entire down payment and closing costs.
The question SHOULD be: Why weren’t the appropriate lending guidelines in place to qualify these buyers who are defaulting? If these guidelines are now in place, then why not let the people who do qualify get down payment assistance from the seller who is willing and able to offer it?
We should be focused on that point, not bailing out the people who caused this mess. I was raised with the principle that there are consequences for our actions, whether good or bad.
Instead, go to GetDownPayment.com and click TAKE ACTION NOW to submit a plea to your congressperson to keep the DPA and the American Dream alive.
Otherwise, who will buy the homes on the market? Investors and people with $20,000 sitting in a bank account? If you’re a seller, that certainly LIMITS your buyer pool! Not to mention…the investor will severely low ball the offer price as much as $100,000 below asking price (after all, that’s what makes it an INVESTMENT, right?!).
If you’re thinking of buying real estate, you better start saving…for the next 2-5 yrs or so! And, then, you’ll most likely have missed the BEST buying opportunity in real estate in YOUR lifetime.
They’re adding to the decline of the economy and real estate market by PROHIBITING buyers who are ready, willing and able to purchase a home from doing so if they don’t have $10,000-30,000 or more sitting in a bank account.
I, personally, am helping several buyers who are well-qualified to get into a home, using this program because they simply don’t have the cash sitting in a bank account for the full down payment. Don’t get me wrong -it takes a huge amount of effort on my part to find the right home that will appraise at the purchase price and has a seller willing to contribute up to 6% (or more) of the sales price to the buyer’s down payment and closing costs, BUT I’m doing it and it’s selling homes. I’m willing to earn my paycheck ….and see the happiness of someone who’s getting the keys to their very first home…and it’s not at an inflated purchase price!
”…I’m just saying…”
Kelli Grant, Residential Realtor TRYING to help dreams come true
Buyer Beware! Fuel Economy Technology a Bust
Posted at 11:55 AM, Jun. 12, 2008
Although the topic is not directly about real estate, it is about people and their money. It’s a tough economy and as we're all well aware of, we've seen our share of real estate and lending scams! And, as if the economy wasn't struggling enough, we have yet another way to be taken advantage of through our desire for a better environment or from our stress of continually increasing gas prices.
Have you heard of the Pre-Ignition Catalytic Converter claiming, “The PICC, Pre-Ignition Catalytic Converter is a breakthrough new technology that could get your car up to five times the gas mileage!”
Recently, a family member contacted me who was thrilled that they had found something they thought would be the golden ticket to saving fuel costs . . .and saving the environment. Several phone calls were put out to mechanics about installing this “revolutionary” technology that was sure to be the next big thing, and since it wasn’t well-known yet - they were excited to be getting it at a fair price before supply and demand went through the roof and the cost tripled.
BUYER BEWARE!! I immediately opened my trusty source for everything you want to know and more, the good 'ol Internet. I Googled the term PICC fuel and found all of the following information that supports this is a TOTAL SCAM. What’s most scary is that there are ads in reputable magazines such as Popular Science, so why would someone question its validity? It sure sounds good!
I share this with you because it enrages me as much as any real estate or lending scam would. Taking advantage of people who are completely frustrated and vulnerable in such uncertain times is UNacceptable. So, please click the links and forward to any friend or family member who may contact you with this golden key to the future either because they are passionate about saving the environment or simply cutting their fuel costs in half. And, if all these links still don’t convince you (you’re dillusional), remember that by installing this, you would void all manufacturer’s warranties on your vehicle.
If it’s too good to be true, it probably is! The links below are just a few of the sites that I found with facts, news stories and bulletins about the creator of PICC, Dennis Lee, this so-called technology and other scams he’s created. I encourage you to search the facts for yourself if this was something you were considering!
http://www.funwithbutter.com/search/label/Automobile
http://www.electricitybook.com/dennis-lee-scam/
http://www.phact.org/e/z/dennisLeeonstealsanddeals.WMV
http://www.phact.org/e/dennis.html
http://www.nmsr.org/denislee.htm
http://www.rv.net/FORUM/index.cfm/fuseaction/thread/tid/21034695.cfm
Buying a New House Before Foreclosing
Posted at 2:42 PM, Mar. 21, 2008
Walk Away or Stay?
There are thousands of homeowners facing foreclosure who simply walk away from their properties and their mortgages. The lenders are left to deal with the financial fallout.
It’s starting to become a business decision and not just a financial duress decision causing homeowners to walk away. Many who owe more than their houses are worth abandon their homes and mortgages and it just might make financial sense, especially if you are not too concerned about the hit to your credit score.
Some homeowners are combining that strategy with a new one. They are buying new homes before their old homes go into foreclosure, and then walking away from the old homes and the old mortgages.
What these homeowners hope to achieve is getting out of their current untenable mortgage situations with a new home and a new mortgage. And it appears that so long as the homeowners don’t mind seeing their credit scores tumble, this strategy will work.
The homeowners will need to come up with a new lender and sizable down payment for the new home, but once they’re in, there is nothing that the old lender can do.
Since the new home with the new mortgage, has no connection to the old home and the old lender, the old lender can not come after the new home to collect any debt owed on the old home.
What is also a sign of the times is that there are now realtors who specialize in helping homeowners pursue this strategy and lenders who also specialize in these situations.
Is this the right thing to do? I was raised with traditional values that you should pay back the money you borrowed. However, when a colleague approached me with the concept, I have to admit that it made me think. I have clients who continually ask my advice about the home they purchased in the height of the market . . and when they consider the crushing blow they’re taking, they want to know what they can do.
Some have crunched numbers and it may take an additional 7 yrs to break even...and if there are short sales and foreclosures attracting buyers who can enter the neighborhood for up to $300,000 less than what others entered into - what does that mean to the neighborhood? Are these new neighbors taking care of their homes and their yards in the same manner? Are they upgrading and landscaping to the same level as those that paid hundreds of thousands more for their homes?
Even when the overall market returns, will the neighborhood be an entirely different community than when others purchased the home? And, if you’re at a time in life saving for retirement and the primary residence was supposed to be an appreciating asset - is it better to walk away with a minor ding on your credit for going through a short sale and "starting over"?
I don’t have the answers, but I can say that, suprisingly, this concept made me stop and consider!
10 Common REALTOR Short Sale Mistakes
Posted at 3:21 PM, Mar. 14, 2008
 1. Listing the property at an amount that insures the property will go to foreclosure. (Not negotiating a big enough discount)
2. Failure to disclose that the sale of the property will/may require the lender's approval of a short sale in the MLS.
3. Allowing a listed property to remain on the market after the owner has filed bankruptcy. You must talk to the bankruptcy Trustee to leave it on the market.
4. Failure to have the seller disclosure form completed correctly.
5. Failing to understand that the lender cannot/and will not make a determination until they have received all the hardship package information. (With supporting documentation from the owner)
6. Advertising the co-op at 3% or any number on the MLS. The lender will always determine the actual commission which will be paid. I recommend you put 50/50 for the commission slot in the MLS unless you already have approval from the lender.
(My personal opinion is that the buyer-broker should actually get the full commission and the listing agent take a discount if required. For instance, if I'm the Listing Agent, I'll take 2% if the lender only pays 5% instead of 6%, and offer the 3% to the buyer-broker. It's good business etiquette.)
7. Failure to understand the role of the Loss Mitigation Department and how to best interact with them. " Give them what they need to get what you want."
8. Allowing the property to remain on the market AFTER foreclosure. Watch your listed property and know what stage it's in at all times.
9. Lack of understanding of the foreclosure process and not being familiar with the documents and state and Federal laws, which are applicable.
10. Failure to get the training needed so you don't make the above listed mistakes!
We keep hearing about a "slow" market, blah blah blah. Well, if you really are that slow, there's no better time to improve your realtor skills and knowledge than by taking some time get education on your weak areas. We always need to keep educating ourselves. The only constant is change. Many of us are seeing a side of the market we have not yet experienced so jump in and learn! There are many FREE seminars out there that are extremely helpful. Be the best realtor you can be for your clients, then you will still have a real estate business in 3 years.
Good luck!
Lazy Realtors or Title Reps: What do you think?
Posted at 12:13 PM, Feb. 28, 2008
 I have been extremely frustrated by the fact that title reps or any other partners that provide realtor services (lenders, home inspectors...) have not been successful in organizing realtor tours for our listings!
I have had 2 cancel in the last 2 weeks because they tell me that 6-8 realtors cancelled out. IS it the truth? Are realtors getting lazy and not wanting to get this feedback for their clients who are jumping realtors to sell their house? Or, are the title reps getting lazy or sick and tired of working with realtors?
I don't know the answer, but all I know is that perception is reality. If my sellers see me doing activities in pursuit to sell their home, they will not fire me and hire a new one to sell their house. In a recent article I read, over 50% of sellers go through 2-3 realtors before selling their house. I believe it because I'm getting some of those listings!
Through this frustration, I asked myself the same question I always do when I come across a road block: What can I do to get the feedback I need for my sellers and to get realtors to see my awesome listing.....fast?!
I came up with an idea, started calling realtors myself to organize this, but realized that I needed help. My time should be spent prospecting and following up with existing clients, not calling realtors to organize this tour and manage the feedback. So, I went to 4 people who work for realtors (2 title reps and 1 home inspector, 1 lender). What I heard was a bunch of whining, complaining, and BUTTS....in the name of the "devil's advocate."
Here's my 3 questions to you: 1) What do you think of the idea and 2) would you participate by devoting an hour or so a week? 3) Isn't it worth testing with your realtor database if you were a title rep, lender or home inspector to rise above the competition and offer a VALUABLE service for us to actually keep clients and sell houses?
Without further ado, the idea below was created in an email format with constant contact.
THE IDEA:
12 guaranteed showings + 12 surveys & You didn't have to call for feedback
How would you like to get 12 showings on your listing within 1 month, GUARANTEED!?
AND, get a complete survey of the visit faxed to YOU - WITHOUT having to contact the agent for "showing feedback"?
I WOULD! Are you with me?
Did you know that about 50% of all residential property listings sell with the second or third listing agent?
There are several reasons for this, but one that keeps coming up when I go on listing appointments is that the seller does not think the agent is WORKING TO SELL THEIR HOUSE.
Let's help each other! We must continually change with the economy, technology advances and all the other factors that exist in our industry.
So, this is my idea of the latest and greatest Realtor Tour! You don't have to sit through a boring meeting, caravan around for HOURS just to have some jerk leave the tour before they saw your listing and most importantly -waste half of your day.
What You Do:
- You will get 3 listings in one neighborhood to visit per week for 4 weeks ( You can do that in an hour/week!)
- Complete the surveys of the listings you saw and email or fax back to me by the end of th week.
- Once I get your three surveys, you will get 3 surveys from 3 realtors who all left their business cards on your clients counter top at different times/days AND 3 surveys to hand your clients!
Afraid you're going to lose the listing because it won't sell due to:
- Price?
- It's too cluttered?
- Needs some paint or to be cleaned?
We can help each other by getting those surveys in to your clients, encouraging them to make the changes you already know must be made or you're out the money it cost you to put up the sign, print the flyers, market the home for sale...etc....only to have them jump agents.
Interested? What if one of the agents had a buyer for your listing??Contact me with your listing MLS # (s), addresses, a comp sheet and any notes that you would like us to know. The listing agents who view your listing will be armed with this valuable information as they preview your listing.
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That's it! What do you think??? The realtor partner could manage this "virtual" realtor tour instead of spending all that time organzing realtor tours that get cancelled. They would get our feedback surveys and as soon as we fax/email our surveys for the week in, we get the ones for our listing that we can pass on to our seller. And, we didn't have to beg, steal and hollar to get the surveys!! Feedback please! Am I crazy or what?? Just trying to be PROactive and I'm open to other ideas.
The Rotten House
Posted at 4:18 PM, Feb. 20, 2008
DISCLAIMER: I don't condone this behavior, approve of such acts, or recommend doing this at home....but it sure is funny!! 
The Rotten House
She spent the first day packing her belongings into boxes, crates and suitcases.
On the second day, she had the movers come and collect her things.
On the third day, she sat down for the last time at their beautiful dining room table by candle-light, put on some soft background music, and feasted on a pound of shrimp, a jar of caviar, and a bottle of spring water.
When she had finished, she went into each and every room and deposited a few half-eaten shrimp shells dipped in caviar into the hollow of the curtain rods.
She then cleaned up the kitchen and left. When the husband returned with his new girlfriend, all was bliss for the first few days. Then slowly, the house began to smell.
They tried everything; cleaning, mopping and airing the place out.
Vents were checked for dead rodents and carpets were steam cleaned.
Air fresheners were hung everywhere. Exterminators were brought in to set off gas canisters, during which they had to move out for a few days and in the end they even paid to replace the expensive wool carpeting. Nothing worked.
People stopped coming over to visit. Repairmen refused to work in the house. The maid quit.
Finally, they could not take the stench any longer and decided to move. A month later, even though they had cut their price in half, they still could not find a buyer for their stinky house. Word got out to the local Realtors and eventually even the local Realtors refused to take their calls.
Finally, they had to borrow a huge sum of money from the bank to purchase a new place.
The ex-wife called the man and asked how things were going. He told her the saga of the rotting house. She listened politely and said that she missed her old home terribly and would be willing to reduce her divorce settlement in exchange for getting the house back.
Knowing his ex-wife had no idea how bad the smell was, he agreed on a price that was about 1/10th of what the house had been worth, but only if she were to sign the papers that very day. She agreed and within the hour his lawyers delivered the paperwork.
A week later the man and his girlfriend stood smiling as they watched the moving company pack everything to take to their new home......... And to spite the ex-wife, they even took the the curtain rods!!!!!!
Mortgage Forgiveness Debt Relief Act of 2007
Posted at 11:07 AM, Feb. 19, 2008
Just a little reminder as I'm thinking of doing taxes -wahhoo! You may not know this important information and it will affect your taxes if you have experienced one of the three mentioned below!
 When a borrower is unable to meet the monthly mortgage payments on their home, the borrower will lose title to their home through:
1. A Short Sale
2. Foreclosure, or
3. Deed in Lieu of Foreclosure
But, did you know that under Section 108(a) of the Internal Revenue Code of 1986, a mortgage lender who forgave debt was required to provide a 1099 Form to the IRS stating the amount the borrower had been forgiven? The amount of debt forgiveness on a home is then taxed as ordinary income, for any of the previously three mentioned methods.
For example, you owe $250,000 on a mortgage and the lender reduced the amount owed to $200,000 to facilitate a short sale. Under current tax law, the $50,000 in forgiven mortgage debt becomes taxable income.
Unfortunately, the majority of people in a situation where that can't make the mortgage payments are in financial distress (DUH!) and are unable to pay the additional taxes.
Relief is in Sight!
On December 20, 2007, President Bush signed H.R. 3648, known as the Mortgage Forgiveness Debt Relief Act of 2007. It amends Section 108(a) of the Internal Revenue Code of 1986 to ensure that any amount forgiven on mortgage debt secured by a principal residence will not be taxed. It was effective as of December 20, 2007 and applies to indebtedness discharged on a principal residence before January 1, 2010.
Common Credit Repair Scams & How to Avoid Them
Posted at 11:06 AM, Feb. 16, 2008
 There are many legitimate organizations that help consumers fix their credit, but others are just waiting to take advantage of those needing help.
In today’s world of easy credit, bad credit and heavy debts are not uncommon. For many people, debt and credit problems become unmanageable. If you are looking for help, beware of several common credit-fix scams. First, understand that if there are errors on your credit report, such as debts that aren’t yours, you can fix these errors yourself for free. But, if your report is correct and simply contains information that you wish wasn’t yours, there isn’t much you can do. Creditors can keep debts on your credit report for seven years, and there is no magic trick that will make them go away.
Keeping that in mind, watch out for the following, as presented by Bankrate.com:
1. We speak the credit bureaus’ language or know some secret regulation that can make unappealing items on your credit report vanish.
Remember that there is no such thing as a secret formula that corrects unappealing citations on your report to make them go away. Some companies offering these services will just take your money and disappear. Others will bombard credit bureaus with frivolous disputes, and while these items are under investigation, they may temporarily be omitted from your report, after which they will return. The company, however, will show you your miraculously “clean” report and collect its fee. Also, keep in mind that the Credit Repair Organizations Act forbids any company from accepting money until after it does what it has promised, says Susan Grant, director of the National Fraud Information Center. Remember that scams will usually ask for money upfront.
2. We’ll convince the creditor that you don’t really owe the debt.
This works similarly to the first scam. Companies will concoct a scheme for you to challenge the debt or will claim that they will issue a deluge of procedural requests that will persuade the creditor to drop the claim.“Federal agencies have described these schemes as bogus,” says Deanne Loonin, staff attorney with the National Consumer Law Center. If you believe that you may actually have a defense with regard to a debt, you should consult a lawyer.
3. We will get you a brand-new, clean credit file. Remember that this is always illegal.
Companies may try to persuade you to apply for a new taxpayer identification number or employer identification number for the purposes of building a new credit history. This is a felony. Be especially vigilant of this one, because you may not realize what you are being asked to do because part of the con is not to explain the entire scheme. Besides being illegal, the “new” credit report would still list your name and address, which would still be connected to your old debts.
4. Call our 900 number for details on our credit-fix strategies.
This can be combined with any scam, and more than likely, the con artists will try to keep you on the phone as long as possible, extending huge per-minute charges.
5. We’ll clean your credit fast and use our contacts to get you a credit card, mortgage or loan.
This is a newer scam, and one of the most costly. Consumers who really need money or loans are especially susceptible to this, and can be persuaded to pay huge amounts to the scam. Some companies mimic credit-counseling agencies or mortgage companies, and will hit you up again and again, until you have nothing left. Since there are legitimate non-profit groups that help educate consumers with regard to their credit, it is best to keep a tight hold on your wallet and be wary of any quick-fixes or big promises. A little reference-checking on the Internet should quickly reveal the legitimacy of any companies.
Generally, be wary of companies that initiate contact, outrageous promises or huge fees. You should also be careful of two common mistakes that are not scams, but are costly. Refinancing your home to pay off credit cards is a bad idea since your home is now on the line. Also, since you are entitled to free copies of each of your credit reports annually, be careful of companies that ask you to pay for them.
Andorra Credit Repair Corporation is one reputable agency that you can contact with additional questions.
Your annual free credit report can be obtained at AnnualCreditReport.com. This site is sponsored by the three major credit reporting agencies, TransUnion, Experian and Equifax. You set up a log in and password, and it tracks the date and will remind you to pull your report again on the anniversary the following year.
Finding the Right Neighborhood to Fit Your Lifestyle
Posted at 1:18 PM, Feb. 14, 2008
 It's the e-Harmony or Match.com Strategy for Home Seekers!
"Location, location, location!" When we think of real estate, that phrase is usually the first thing that comes to mind.
Besides the obvious factors that most homeowners wonder about such as schools and crime statistics, how does a homeowner get a true feel for the neighborhood? When you buy a home, you are also buying a lifestyle. A neighborhood can be similar to finding a mate. On paper, the list may look good. The schools may have excellent ratings, the crime statistics may be low, and the curb appeal looks fantastic, but is that really the true tale signs of whether you and your neighborhood have made a love connection? I sometimes hear people complain that they just don't feel as if their neighborhood is their "home." They love their house but they wish they had more of a connection to the area.
So what can a homeowner do to get a good feel of the area? Here are some good ideas that I give prospective homeowners:
* Drive around the neighborhood at different hours of the day. Are people outside enjoying themselves - are they jogging, or taking their kids out with strollers. Are there people washing their cars in the driveways or working on their front yard? People who are usually working on their homes and who are enjoying their surroundings, tend to invest more in their houses because they like the neighborhood.
* Strike a conversation with some of the neighbors that you see. Introduce yourself and let them know that you are thinking of buying a home. Ask them them how long they have been in their current residence and if they like it. If you have children ask them if they know anything about the schools. This is a great way to get to meet your potential neighbors and get first hand information. I once had a client who preferred her privacy and didn't like a lot of neighborly interaction. She was considering buying a house at the end of a cul de sac. She decided to talk to her prospective neighbors and found out that in this cul-de-sac, it was customary for the homeowners to throw block parties and attend social gatherings on the block on a regular basis. This was way too much coziness for her so she decided that this may not be the perfect fit for her desired seclusion.
* Visit local restaurants,malls, theaters, and other businesses. After all, these are the places that you will be frequenting. If you can picture yourself shopping and eating at these local venues, that is a good indication that you will like the area. If you see yourself driving across town because you are not impressed or thrilled about what your area has to offer, you may want to reconsider the neighborhood.
* Check with the local chamber of commerce and see what projects are being developed. Do these stores and commercial developments fit your consumer needs?
The point is to spend time studying the location before you purchase the home. Most people would not buy a car without test driving it first. The same holds true for your home and where you live! When you buy a house, you buy into a lifestyle. Make sure your neighborhood and your lifestyle are a good match.
How to Be Smart Investing in Real Estate
Posted at 10:07 AM, Feb. 13, 2008
 Your Primary Home is First.
Buying your own home gives you a place to live and teaches you the cost of home ownership, financing and market conditions. You receive tax benefits and an asset that you can sell, many times for a profit. You will also learn about property maintenance and build your own network of professionals who can prove to be invaluable when investing. Finally, your first home could later turn into your first investment property! When you decide to upgrade or get a bigger house, you might be able to keep your first home as a rental property. Consult your real estate advisor to find out if your house would make a good rental property.
Knowledge is Key.
Being a savvy investor takes more than just buying up properties. Having a good knowledge base goes a lot further than a “sixth sense” for good deals. Use the Internet, read books by reliable authors, and attend investment groups and college courses. These are all good resources to learning the best investment practices. You should also tap into other successful real estate investors and real estate agents for information.
Professional Help Is Essential.
Although you may not think you need help, a trustworthy and honest professional may be the partner you need. When it comes to spending tens or hundreds of thousands of dollars, I'm sure you want to invest it wisely. You go to a dentist for your teeth, a CPA to prepare your taxes, a doctor when you feel sick....so why would you think a realtor is any less necessary as an important professional to include on your family team? Real estate is usually what people spend the most money on in their lives and yet they'll take short cuts and risk losing thousands of dollars trying to be an expert on their own. Realtors manage real estate transactions every day, whereas you may only handle one every few years.
Management companies take the pain out of property management. For instance, managing a rental property takes a lot of time, and you will need to be prepared to make repairs, resolve issues and advertise for renters if you are taking on the task yourself. In the long run, a management company may be just what you need. Use the referrals of friends, family and associates to find reliable, honest professionals to help you.
Know the Market.
Before you invest, research the local market thoroughly. There is no universal real estate “bubble.” Each market is different, and has different fluctuations and trends. One market may be good for rental income but not appreciation, while another market may be excellent for appreciation but not for rental income. There are endless variables, and it is important for you to know exactly what you’re getting into. Remember that one area is never the same as another area. Even within your local market, different neighborhoods may have their own fluctuations and pros and cons. Turn to your realtor for advice about your intention and what neighborhoods and areas will best reach your goal.
With these basic tips under your belt, you are ready to venture out into the investment arena. Happy investing!
How to Get Your Asking Price in a Buyer's Market
Posted at 12:14 PM, Feb. 9, 2008
In a buyers’ market it can often be tricky to get even close to your asking price. There are, however, a few things you can do to help get a little closer, or even actually get your asking price. A recent Realty Times article discussed some of the following tips that most people can implement to help get the asking price... and sell the house as soon as possible. There are generally three categories that they fall in:
ONE
Finish the unfinished rooms or convert any convertible rooms, such as the basement or a recreational room. Not only does this give an increased amount of usable space, but it can also be used as a selling point since these are expenses that the buyer doesn't have to incur. Not to mention, there seems to be an increased desire for move-in ready homes where the buyer does not have to do a thing to the house.
In houses over $500,000, offer a free media room. With deals, you can probably have one installed for around $5,000. Media rooms are something many house shoppers see as a neat luxury, and could be the difference between someone going for your house or someone else’s. Just over a year ago, Architectural Digest united with Sotheby’s International Realty Affiliates, Inc. in a consumer-trend study to find that 32% of people seeking a secondary home wanted a media room/home theater. For more info on top amenities buyers look for in luxury homes, click here.
TWO
You can make the mortgage on your house more desirable by buying down the interest rate. This is something fairly easy to offer someone, and a lower payment certainly makes your home more desirable!
Rather than offering a cash-specific incentive, you can offer something else like a vacation. Again, this makes your offer stand out from other offers.
Offer seller financing. This is actually not that difficult to do if you can make the deal work, and can actually end up earning you some money. Talk to your realtor about the possibilities.
THREE
Offer to pay their HOA fees for a year. This is a practical buyer benefit. If someone is carefully looking at their budget, not having to include these fees in their monthly expenses can be a big deal.
Offer to pay off some of their debt. If this is done as part of the loan program, then it could lead to the buyer qualifying for a larger loan, or a better interest rate. If just a side agreement, then again, it could mean lower monthly payments, which can be extremely important to the buyer.
Finally, you can always offer to pay the closing costs. These tend to be something that is a big hit to buyers’ pocketbooks, and something people don’t adequately budget for when shopping for a new house.
Unfortunately, other than the few aesthetically appealing things you can do to spruce up the house, real incentives tend not to be cheap. They can mean the difference from having to drop your asking price by quite a few thousand... or actually getting what you want! The key to choosing which incentive to go for is to think about what incentive works best for you AND what is a true attraction for the demographic of buyers looking to buy your house and in the community you're in.
Inexpensive Home Improvements And Tips to Sell Your House Faster
Posted at 4:16 PM, Feb. 4, 2008
Make your home desirable for a buyer. What made you fall in love with your home when you bought it? What are the home's weaknesses? Be clear on both of these and enhance the strengths and minimize the weaknesses. If the house lacks storage space, don't enhance that fact by not cleaning out the closets so when the prospective buyer opens it they get pummeled by your stuff falling on them! Organize the closets and cabinets so everything appears neat and spacious. This doesn't cost anything other than time and possibly a good friend to keep some of your stuff in boxes.
If you can’t afford big-ticket items such as renovating your kitchen or adding bathrooms, consider small improvements that can make a big difference. A recent survey found that a simple hanging storage system in the garage was more valued by buyers than a big kitchen, big backyard or a formal dining room!
Also make sure you do little maintenance things to enhance curb appeal, such as washing the windows, trimming bushes, repairing the driveway, repainting the front door and making sure the doorbell works.
Finally, a dirty house will always put buyers off. If you have to, hire a cleaning service to clean your home once a week while it’s on the market. With so many homes to choose from right now, buyers don't have to see pass the dirt and how a house "could" look like a home. They just want to see the next home on the list!
Pets are the Latest Foreclosure Victims
Posted at 1:13 PM, Feb. 1, 2008
Could you treat your family member like this??
As more and more home foreclosures hit the market, the biggest and most unknown losers are family pets who are being deserted by their owners.
Animal welfare experts say that the United States slumping housing market has led to an increase in the number of abandoned animals. For some of these homeowners, feeding their pets is just not affordable anymore. Many homeowners are having to move in with relatives or find rentals where pets are not allowed.
Pets are being dumped all over the country. Dogs are being found in farms and domestic cats are showing up in feral wild colonies. Even worse, some pets are being left behind in their foreclosed homes without any food and water.
Many foreclosure homes and go weeks without having a showing. An animal left behind does not stand a chance. It can take weeks for an animal to starve to death. Desperate scratch and bite marks are usually found on doors, windows and baseboards.
Recently, the animal rescue group, Paw Placement, was part of a a huge rescue mission to save abandoned cats that were left behind by their previous owners in a demolished apartment building. Many of these cats were starving and sick due to neglect.
Although some pet owners may think they are doing their pets a favor by not taking them to a shelter or the local pound, they are mistaken. Pets get dependent on their owners for food and their well being. They are domestic animals that are not equipped to survive on their own. They have no chance of survival by being abandoned and their fate is ultimately a painful and suffering death.
Homeowners facing foreclosures should be encouraged to bring their pets to the local humane society or Animal Care and Control facility. In these facilities, their pet at least has a good opportunity of being adopted. Although not every pet will find a home and may be euthanized, they still have a chance. As Stephanie Shain from the humane society put it, " They'll be fed, have water and/or have a humane euthanization, as opposed to spending the last days of their lives eating carpet or wallboard."
*** Pet abandonment and pet dumping are illegal in most of the United States. In Arizona, this is a class 6 felony.
How to Stop a Foreclosure
Posted at 9:29 AM, Jan. 30, 2008
On the news this morning, I saw that "foreclosures were up 75% from December 2006 to December 2007." 1 out of every 100 homes are going into foreclosure, with California and Florida hit the hardest. Knowing that this amount of people are entering into the foreclosure process, I felt that providing a few helpful tips on how to prevent a foreclosure was imperative.
For those of you who know me, this one's for you: I am aware that it's not all roses and sunshine in the housing market ('heck', I WORK in it every day), I don't completely have my head in the sand! However, I am a proactive person that looks for solutions. . . so let's get to it!!
If you're starting to miss payments, this is your big neon sign, your red flag, your 2x4 in the head. Pay Attention. This is also an OPPORTUNITY. What do you think the first mistake is? You got it. Homeowners stop answering the phone, returning phone calls or opening the letters from the lender. This is the opposite of what you should be doing. You need to ACT.
Take Action. There are several things you CAN do. Foreclosure begins once you miss three payments. You may have from 3 to 18 months before you actually have to get out of the house, depending on what state you live in. Therefore, you have some options. And, that does NOT include trashing the house. I just don't understand what people are thinking they will gain by doing this. ??
First of all, if you have a variable rate loan and your interest rate is going up and you can't afford the payments, which will get higher each time you miss a payment, call the lender. You heard me right. Reach out to them! Ask for a reduced and/or fixed rate. Realize that the bank loses an average of $59,000 for each foreclosure. Therefore, they might just be willing to negotiate a lower rate with you...especially if you have always been a good paying client until the rate started to increase!
Negotiate a short sale. A short sale is when you owe more than the property is worth. The declining market had something to do with this, but let's face facts. Some of you took out home equity lines of credit for vacations and toys. (It's true. You know who you are.) You will get a bad credit rating still, but you will only show the late payments while the loan is reported as "satisfied".
Apply for an FHA loan. It is a short term, secondary loan that buys you time. You can get up to 12 months of payments. You will have to pay them back, but it buys you more time.
Rent your house . Sometimes, you can rent your home out and move into a less expensive housing situation. Even while your home is in foreclosure, you may be able to do this. If you can get enough rent to cover the mortgage payment and find another alternative for yourself that you can afford, this could be an ideal situation.
Deed in lieu of foreclosure is another option. This is when you give the deed to the lender. You may even able to stay in the house for awhile.
I hate recommending this, but it is a last ditch option. File for bankruptcy. It doubles the time you can spend in your home, sometimes up to four years. Yes, you will have very bad credit. But, you will be able to stay in the house. When you file for personal bankruptcy, you actually keep your credit cards as long as you're making the monthly payments!
If you're starting to miss payments, don't put your head in the sand. Start to look at your options. There may even be 2 or 3 of the solutions listed here that you can take advantage of to prevent you from entering foreclosure and save your credit.
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