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April 2007

Wednesday, April 25, 2007 - Putting out Fires and Prospecting

Jennifer Allen (Denver real estate agent) writes a terrific blog and her post about prospecting (i.e., how we are supposed to get new business) struck a chord in me. I'm terrible at prospecting. I could no sooner pick up a phone and call 10 strangers and ask them for their business than I could...I don't know, cut off my own toes. I. Just. Hate. Doing. It.

 

The theory is sound. If you spend all your time working on your current business, eventually you'll find yourself with several settled transactions and no new business. Our business tends to roller coaster. We go out and prospect, then we get busy, then we suddenly have no more business, then we go out and prospect for more business. This also means that our income tends to follow a roller coaster path, especially when we're new to the business.

 

So, the idea is to put time aside on a regular basis to prospect, even when you're really busy. And it's true, the current transactions tend to need attention regularly. There's always something -- the lender needs forms, the appraiser needs comparable properties, the termite inspector needs to get into the house.

 

Then there are the "fires".  A typical fire might go like this... Everything is perking along fine and then you get an email from the lender, saying that the buyer's loan has been rejected. Yikes! We're two weeks from closing! The buyer is crying, the listing agent is screaming and the lender won't return your calls. So you leap into full fire-putter-outer mode, call every lender you know and work those phones like a fiend. Finally, you get it resolved, the closing is back on track and your entire morning is shot. You feel like you've been through the wringer.

 

Some agents always seem to be in "fireman" mode. One agent asked me recently how much time I set aside a day (a DAY!) to put out fires. Curious, I asked him how much time he set aside. He said, "Two hours every morning. What about you?"  "Well, none."  "None?" 

 

The truth is, I don't have many fires. Once in a while. But not often.  Sure, problems crop up all the time, but I'm seldom blind-sided by them. Frequent communication with everyone involved seems to take care of that. (Whoever invented email is a god to me, by the way.)

 

So back to prospecting. I spent this morning's "prospecting time" writing this, chatting with my husband about our plans for his 60th birthday, and reading the real estate news on the web. Much more relaxing than calling strangers. And I just don't worry about it. Most of my business comes from referrals and I thank each and every one of you who sends your friends and acquaintances my way.  You are all definitely saving me from "prospecting"!

 

(C) Susan Pruden.

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Tuesday, April 24, 2007 - Mortgage Shopping and a Book Recommendation

One of my clients (we'll call him Bill), was working with another real estate agent, who directed him to a particular mortgage company (one, I may add, that doesn't have a sterling reputation among my peers).  That lender told him that, because of peculiarities in Bill's income, he would only be able to qualify for one type of loan and that Bill had to settle quickly, because the loan would probably not be available for very long.

 

Oh yeah, and this guy was the only lender to offer it.

 

Bill fired his agent and came to me a couple of weeks ago, under a lot of pressure to find and settle on a house by the end of April -- he just had this one chance to buy and he didn't want to lose the opportunity that this loan presented.

 

These facts sounded pretty fishy to me, but Bill was adamant. He had to use this lender or he couldn't buy a house. It took me a while, but I finally convinced him to call several other reputable lenders, and a miracle happened!

 

Bill was pre-approved by all three lenders that he called! And at a much much better interest rate! Did I say MUCH better?

 

Most lenders get their money from the same places -- other banks. Lenders buy the money they lend, then they lend it to consumers at a profit. Most lenders have the same loan programs available to them. There are a few specialty programs out there. I remember when I was in the mortgage lending business, back in the 1980s, and B.F. Saul (Chevy Chase Bank) lent its own money and made up its own guidelines. We called it B.F. Saul Funny Money. You had to go to B.F. Saul to get that loan. But for the most part, it pays to shop around.

 

I strongly recommend David Reed's book "Mortgage Confidential: What You Need To Know That Your Lender Won't Tell You". Even after my years in the industry, I learned a lot from this very easy-to-read book. He explains exactly how to shop for a mortgage -- why most of us do it incorrectly. Definitely a worthwhile book to pick up.

 

And Bill? He's getting a great mortgage, the pressure is off, and we should have an answer back on our offer today. Fingers crossed, he'll be in his new home by mid-May.

 

(C) Susan Pruden.

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Tuesday, April 17, 2007 - Buyer: Do I have an Agent or Not???

The following is a blend of conversations with two different buyers over the past week. In both cases the buyers were referred to me and I was told that the buyers were unhappy with their previous real estate agents.
 
Buyer: My agent wrote several offers for me and none of them were accepted. He won't answer my questions and I think I'm getting bad advice.
 
Me: Did you sign a contract for the agent to represent you as your Buyer's Agent? Because if you are currently under contract with an agent, I cannot help you. I can't interfere with your contract with another agent.
 
Buyer: Nope. Never signed anything like that.
 
Me: Are you sure? Because if your agent has written any offers on your behalf, Maryland law states that you must have a written contract stating that he is your agent. Either that, or you have to specifically acknowledge -- again in writing -- that he is representing the seller.
 
Buyer: Nope. We never had any agreement like that.
 
Me: Do you have copies of everything you signed with the agent the first time he wrote an offer for you?
 
Buyer: Yes.
 
Me: Look through those papers and see if you signed a paper called "Buyer Agency Agreement" or something along those lines.
 
Buyer: Okay, but what does it do?
 
Me: Sets out how you are to pay your agent, determines how long you and your agent are bound to one another and lays out your obligations to one another.
 
Buyer: Okay, I'll look.
 
Second conversation.
 
Buyer One: I did sign a contract -- though I don't remember even talking about it. I've called my agent and we've terminated our agreement. I sent him a letter today.
 
Buyer Two: I did sign a contract --though I don't remember even talking about it. But my agent won't let me terminate the contract and I guess I'm stuck with him until the contract expires in another four months. Maybe I'll call you then.
 
This is a really disturbing trend -- that agents are not talking to buyers about their contractual obligations or, apparently, following Maryland law. This conversation should take place (and Agency disclosure should be signed) at the very first appointment between agent and buyer (or agent and seller, for that matter). 
I wish I could think of a solution to this problem.
(C) Susan Pruden.
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Friday, April 13, 2007 - The Maryland House and Garden Pilgrimage Tour

For a real treat, set aside May 5th for the Maryland House and Garden Pilgrimage Tour. Prince George's County is only on the tour about every 10 years, according to the flyer. The boat trip and the lunch require reservations be made before 4/28/07, so be sure to visit the website for instructions. Other counties are involved as well, on other dates, so visit here for more information.

$25 covers the whole tour (or you can pay $10 per house), but wow -- what you get for $25! There are 9 sites on the tour (and a guided pontoon boat trip). For an additional $15, there is a Southern Maryland Buffet at St. Thomas' Parish Hall.

1. BOWIEVILLE, 522 Church Road. Situated on a high point in the “Forest” of Prince George’s County, Bowieville was built 1819/20 for Mary Bowie Wootton Bowie, twice-widowed daughter of Governor Robert Bowie. In establishing this grand home for her nine minor children, she created the most sophisticated late Federal period house in the County. Listed in the National Register of Historic Places, Bowieville has been fully restored to its former beauty and prominence.

2. GROVEHURST, 14307 Delcastle Drive. A local building supplier, Fred Watkins, and his wife Frances, built Grovehurst in 1961 in an earlier Federal style. The property abuts the famous Belt Woods, where the avian density is one of the highest observed on the East Coast and where both the threatened Glade Fern and endangered Wister’s Coralroot grow.

3. MOUNT LUBENTIA, 603 Largo Road. Mount Lubentia is one of the grand old houses of Prince George’s County. It stands on a terraced hill above the old road from Upper Marlboro to Bladensburg. For well over 200 years it was home to many generations of the Magruder-Beall-Bowie families. In the years before the Revolution the property was rented by Jonathan Boucher, the Tory Anglican minister at St. Barnabas’ Church, who preached to his Rebel congregation with loaded pistols at hand. Mount Lubentia, listed in the National Register of Historic Places, is situated on five acres of landscaped grounds, all that remains of the original thousand-acre plantation. Many of the present plantings date to the first half of the twentieth century, reflecting what was once a showcase Colonial Revival garden.

4. GOOD LUCK, 12502 Brooke Lane. Built in 1790 and enlarged in 1840, Good Luck was known as Oakland when built by the Clagett family and later owned by the Brooke family. It is a two-story, gable-roof frame house in three telescoping sections. Situated on a high hill, this elegant home, furnished with a blend of antique and contemporary furnishings and art, is surrounded by ancient oaks, chestnuts, sycamores and massive English boxwood.

5. PATUXENT FARM, 4700 Old Crain Highway. The core of this house - the one-room Patuxent Elementary School - built in 1903 to serve farm children east of Upper Marlboro, had neither electricity nor plumbing. The Robert Hall family, to whom it reverted in 1926, added three rooms to create a residence—an early example of adaptive-reuse. A second story expanded the house in 1933 and in 1938, a Colonial Revival living room wing was added. A 1974 addition included a Neo-Classical dining room, garden room, and terrace. The smokehouse still functions and outbuildings have been adapted to modern life on these former farmlands of the 18th century Clement Hill. Sixty-year-old boxwoods on both east and west sides of the house are descendants of old local boxwoods. The current owners live with an eclectic mix of European and American furnishings, including 19th century Baltimore furniture.

6. ST THOMAS’ EPISCOPAL PARISH CHURCH, 14300 St. Thomas Church Road. The most tranquilly picturesque church in Prince George's County, St. Thomas’ is listed in The National Register of Historic Places.

7. WEST END FARM, 10709 Croom Road. Standing on a hillside on a 10-acre rural property, the West End Farm house still offers a glimpse of its history as the nucleus of a larger plantation. The house is representative of the County’s most typical mid-19th-century dwelling: a main block of wood frame construction, with side-hall-and-double-parlor plan and Greek Revival style decorative detail. The present owners enjoy the wide stone terraces in the side yard which serve both as an outdoor entertainment area and as a cascading walkway to an enclosed pool area.

8. MAGNOLIA KNOLL, 17414 Nottingham Road. Magnolia Knoll, also known as the Turton-Smith House, is a small early-to-mid-19th century vernacular dwelling, well situated on the picturesque Patuxent River in the former town of Nottingham . The owner's collection of antique furnishings and paintings create a cozy atmosphere in this former waterman's dwelling.

9. MOUNT CALVERT, 16302 Mount Calvert Road. At the present time, Mount Calvert is the centerpiece of Mount Calvert Historical and Archaeological Park. The house now exhibits a trove of archaeological finds from the site, representing over 8000 years of Native American, Euro-American and African-American culture. Weather permitting, site work may be observed on the day of the tour. Artifact collecting is strictly prohibited.

9a. A GUIDED PONTOON BOAT TRIP ON THE PATUXENT RIVER. Departing from a landing at Mount Calvert, naturalists and historians from the Maryland-National Capital Park and Planning Commission will take pre-arranged groups on a special narrated boat tour along the beautiful freshwater tidal marshes of the upper Patuxent River and nearby Western Branch. The Western Branch and Patuxent are home to a rich variety of aquatic plants and wildlife, including the Great Blue Heron, the Least Bittern, and the Sora Rail. Several boats will be operating and tours will depart approximately every half hour from 10:00 until 4:00. Advance reservations are REQUIRED to guarantee a seat and may be made up to Saturday, April 28th through Donna Schneider at 301-952-8539 or donna.schneider@juno.com.

(C) Susan Pruden.

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Informal observations about Prince George's County Real Estate and happenings around our local area. I'm Susan Pruden, in Cheverly Maryland and I welcome your comments and participation.

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