The Importance of Communicating with Your REALTOR

I had taken a listing back in October 2007 and at that time, I knew the seller had priced the home too high for the location BUT despite my advice, the seller was adamant about setting it as such. So, of course there had been no activity. After several months of sending market information to him, he did reduce the price by $4K...not much, but better.

Again, a couple of months go by and because of the seasonal real estate pick-up, we started to have showings...more than I expected. Needless to say, he was pleased. Now, here comes the kicker...

This past Sunday, he received an offer...it was from a couple using a corporate relocation company and they had to move in within 3 weeks. Not a problem because they have stellar credit, already pre-approved, and the offer was full price with only one contingency...the home had to appraise at or above purchase price. Now, I always write the same language into my purchase agreements so to me, this was the cleanest offer one could possibly hope for...HOWEVER, I know how properties are appraising and I also know that the list price was above the area homes...finding comparables was going to be almost impossible for an appraiser to justify the purchase price.

I had mentioned my concerns to my seller and said everything in the contract was perfect although I was truly concerned that the property was not going to appraise. He understood my concerns and we continued with our conversation.

On Monday, I reviewed the contract with him and I provided a Net Sheet for him showing him the finances of the transaction with the statement that I was not aware of his loan payoff amount. He was thrilled and signed the purchase agreement contract. I faxed the accepted offer and told him in order for him to get a true picture of his final net amount, he could call his lender and obtain that payoff amount.

On Tuesday, the Buyer's agent set up the home inspection for Friday and asked how soon could my seller be out of the home; could he be out by July 18th? She mentioned the lender for the buyer could have the deal ready for closing by then and her buyer was itching to get in. After consulting with my seller, I told the Buyer's agent that it wouldn't be a problem. So, this deal was heading full steam ahead.

Fast forward to Thursday - I receive a call from my Seller. He is distraught. After asking what was he so upset about...that's when the baseball bat hit me upside the head (figure of speech, O.K.). What he told me I was not expecting at all. He told me he just found out from his lender that his payoff amount was $8K more than he thought and that based upon the Net sheet I provided, he was short $7.5K for the transaction. He THEN proceeded to tell me he had gone through financial hardships earlier this year and that his lender packed all of the late payments, interests, and penalties to the back end of his mortgage.

I was stunned to say the least and he was asking what it all meant for him with this deal. After picking up my marbles off the floor (and finding my voice again) I told him he was in a legal, binding contract and the buyers are moving forward with their terms of the contract. I told him he two choices: 1) Find someone to loan him the $7.5K he was short and proceed to closing or 2) Call an attorney. At this point, there was nothing I could do...he was in a legal, binding contract and I was not an attorney.

Clearly, both of us were upset. There was nothing I could do and he was terrified. Now, this client of mine is a young man with a wife who is pregnant with their second child and they are getting ready to celebrate their first child's first birthday this month. They are a young family with not much. I was distraught as well. I wished he had told me he was having financial problems in the past few months...I could have saved him from the predicament he now was in by withdrawing his home from the market until he got back up on his feet. But, I didn't know because after the conversations we have had over the past months, he never mentioned a thing.

Friday rolls around; I have a splitting headache. I lost sleep the night before worrying about this young family. Wracking my brains wondering what he was going to do knowing he didn't have the money let alone the money to hire an attorney. I decided I needed to eat and picked my daughter up from her work and we went to lunch together. While we were talking...I stopped mid-sentence and could feel the blood rushing to my head. Goose bumps ran over my arms up my neck and every hair on my head stood up. I just thought of an out for my client and my heart was racing.

I picked up my cell phone and tried to call everyone, anyone to get confirmation on my out. Of course, since it was lunch time, I couldn't get a hold of anyone.

I rushed through lunch with my daughter, dropped her back off at her work and made a bee-line straight to my office. I ran in and approached the office's accountant. I blurted out, "Did the Buyer's agent bring in the Earnest Money for my listing? I need to know...I need for you to make absolutely sure that Earnest Money has NOT been delivered to our office - that it hasn't been posted to the escrow account!"

She checked, re-checked, double-checked, and checked again...the Earnest Money had not been delivered to our office within two banking days therefore, according to the contract, the Seller could terminate the purchase agreement.

My heart was pounding in my chest. I was running frantically around the office locating my Broker to notify her of the "out" I had found for my client and making phone calls to get a hold of my seller.

Finally, reaching my Seller while drafting up a termination letter to the Buyers and the Buyer's Agent, I tell him of the news and what happened next I wasn't expecting. He asked me if I could wait until Monday because he "knew" his lender would accept the offer. Well, first of all, Short Sales have to be disclosed to potential buyers before they write an offer with knowledge that their offer would be subject to a lender's approval; second, this tactic was completely backwards to how lender's handle short sales - it is the proverbial "putting the cart before the horse" scenario; third, he could not "know" that the lender would entertain this offer. To his lender, he was now in good standings and because they had packed everything to back end of his mortgage, he was no longer in pre-foreclosure status.

I couldn't believe that I was handing him an olive branch and he didn't jump on it. I explained to him he now had three choices and at 5:00 PM the inspector was showing up to his property to conduct the inspection for the buyers. I said the buyers were moving forward and once money had been applied to the transaction, he would then be subject to move forward as well. I told him he had a legitamate "out" from the contract. After literally two hours on the phone and 45 minutes before I had to leave to meet up with the inspector, my seller finally decided to terminate.

With it being Sunday now, I know that my client still does not appreciate how close he came to being in a world of trouble. He didn't have the money, couldn't afford an attorney and was dealing with a relocation company who has attorneys on staff. Let alone, the fact that the Buyer's Broker would sue for their portion of commission, the buyer's would sue for specific performance, and my office could sue as well in that we performed to the terms of the listing contract. And until I thought about the earnest money clause, there was absolutely nothing I could have done for him.

I feel pretty good today...I have never worked so hard to get a contract terminated; I have never worked so hard to protect my client and not make a nickel at all.

There is more to this story but it doesn't matter today...I have withdrawn his property from the market until conversations can be had with his lender so I know exactly how to proceed to help my client. Today, my client is at home with his young wife, celebrating their son's first birthday with family and a roof still over their heads. The cross-hairs targeting them for detrimental circumstances have been removed and today, I feel pretty good about a job well-done.

Feeling the Squeeze! Chicago is Leading the Nation!

It is official!
As of today, July 1, 2008, Chicago has implemented the highest sales tax in the Nation, even higher than NYC!. It is a whopping 10.25%!
Now, where I'm located (LaPorte, IN) is about 1 hour 15 minutes from downtown, the Loop, and many of my current and past clients have relocated to my area because, in comparison, a person gets way more bang for their buck. This move by the Cook County Commissioners is bound to drive businesses and therefore, jobs, right out of "CHI" town. The reasoning behind the hike? To cover the huge, top-heavy city employee base, their medical and pension benefits (retiree's too) and other benefits the commission failed to budget. Instead of streamlining, they increased the tax.
Only months ago, the CTA (Chicago's transit bus/trains) was at the point of shut-down because the commission failed to recognize the system's financial needs and ultimately caused several routes to be shut down, diverted, or run less frenquently. They also increased the fares.
With many of the city's population relying on these services, it really is unbelievable that such a huge, powerful city can't manage itself but yet there is always a job or position for the city's family and friends...Their solution...raise taxes.

Floor Time and the Crickets are Chirping!!!

When I first started in Real Estate, as a newbie, the goal was to get the chance to work “Floor Time”. The ultimate indicator of your performance was landing one of the Floor Time shifts on Mondays. You see, Mondays are coveted because in our market, all real estate offices are closed on Sundays and on Saturdays, they typically close by 1:00 PM. So by Monday, the phones would ring off the hook with callers wanting information on a property they saw while driving around over the weekend or by sellers who decided over the weekend to list their home and needed an agent to come over. Monday calls had always been the most fruitful therefore, most desired. But Floor Time, not just Monday Floor Time, wasn’t just handed to you – you had to earn the right and privilege to answer those incoming calls. If you didn’t know how to handle those calls, you simply wouldn’t get that opportunity. And seeing it from a broker’s perspective, why would they want to put someone on those calls who didn’t know how to handle the standard, blind-callers echoes…“I’m just calling for the price” or “I’m calling for my son, daughter, friend, etc.” or “Just tell me what’s your commission – I don’t want to give you any info yet”…when they spend a lot of money to have that phone ring? Learning to cultivate those blind-callers into a closed transaction is continuously a challenge and is not for the faint-hearted.

Well, I’m not a newbie anymore and have been working Floor Time for several years with great success however, as of late, all I seem to be doing during my assigned Floor Time (Mondays included) is fielding off callers who want to sell me personalized pens or advertising space in the local sports calendar or talking with callers who are looking for rentals because they are being “kicked-out” by their landlords. The crickets are chirping and its 8:30 in the morning!

Long gone are the blind-callers…I would love the challenge of building their trust (because blind-callers don’t trust any of us);…Long gone are the buyers who saw a property over the weekend and want to know more about it….I would love to talk with a first-time home buyer and bring them in to sit down and really go over the whole process (but alas, there are none because of the knee-jerk reactions the lenders have imposed, making it nearly impossible to get pre-approved); Long gone are the sellers…I would love to talk with those sellers who really need to sell (but can’t because of, yes, the knee-jerk reactions of lenders who aren’t pre-approving any buyers). Grudgingly, the callers I don’t want to talk to are the bottom-dwellers and they seem to be the only ones who are calling…you know the ones…those who feel that because a sign is in the yard, they “know” the sellers must be desperate therefore, write offers that are completely disrespectful.

Floor Time has become exhausting, dreadful, and probably the most unproductive time of my day. My heart goes out to my broker, who most certainly is vexed by this whole situation, and to myself as I spend these hours up close and personal with the effects the media has pounded into the minds of so many. What is one to do except to keep their axe to the stone, work Floor Time again on Wednesday, and hope the crickets stop chirping.

Keeping It Real

CNN, FOX, CBS, NBC, ABC....the News Media Giants....they all broadcast stories on a continuous loop throughout the day, everyday, regarding how dismal things are...whether it be global warming, the price of oil sky-rocketing, salmonella in our tomatoes, more troops being killed in Iraq, and of course, my industry - Real Estate - which is lumped in with the dooms-day news loop....the list goes on perpetually...

The motive behind the fear (the Chicken Little Syndrome I call it) is to sell you something. Take for instance an automobile that boasts 22 MPG highway with the strongest emphasis on the navigation system which comes with specially equipped vehicles for those with "exceptionally pristine credit". This is, of course, only discovered if one has the ability to see font size on the TV screen smaller than 4. Or what about that new mutual fund that, statistically, has performed better each year over the last? Be sure to read the prospectus before investing, though, unless you like to loose your hard, earned retirement money which, by the way, is also disclosed in size 4 font. And let us not forget the new pharmaceutical drug that has been shown to either make your dual personality into one cohesive person, sleep through the night (because you're not sure you can make that $750/mo payment on your new navigation system), or make you feel like a man again "when the moment is right" while lounging in side-by-side bathtubs. The media is the marketing industry's playground and we are drawn in to their fold.

You may be wondering where I am going with all of this...I do have a point and this is it.

In the past 2 months, I have worked with 4 different buyer-clients who have definitely been watching too much TV and seem to think they are in an extreme-sport's windfall. They honestly feel they can "score big" on real estate because the media says the real estate market is so terrible right now. This is based upon observation of their behavior, knowledge of their "reasoning", and being a participant to their motives. As their REALTOR, I am obligated to perform my fiduciary responsibilities, and I do so with great care and professionalism. So, it is because of the seriousness I feel with my chosen profession that I declare to those, who are of the same mind-set, this statement, "Every seller who has home, which is currently listed on the market, is NOT in a dire, desperate position to sell!" It is true, sellers do want to sell and definitely wish to entertain any reasonable offer and, often times, will even offer an olive branch of help to the buyer. However, "fishing" for a steal of a deal without any heed to a professional's experience, market and inventory knowledge, and/or advice is completely disrespectful...on so many levels.

Here is my caveat to the aforementioned: I am speaking from a perspective of my own market and I am not making generalizations of all buyers or sellers.

Now with that said, my time is an intangible, valuable asset - never to be recaptured. Spending time with a person who is not serious is a waste of my asset and is disrespectful to those who are truly serious, i.e. (1) myself, as a REALTOR, (2) other buyer-clients who appreciate my services, and (3) to the property owner(s) . To place an offer on a property at 55 to 60 % of the list price and expect favorable results is ludicrous and the embarrassment I endure on their behalf is uncalled for. Unfortunately, I am not clairvoyant nor a mind reader so the intentions of these buyers are not known beforehand.

Additionally, I do wish to note there are properties out there that can be very valuable acquisitions: these properties ARE in the deep, discount-potential arena and would include foreclosures, REOs (bank-owned properties) and fixer-uppers. These are identified with the listing information. And there are properties where there might be a distress situation, i.e. short sales. Again, these too are usually identified as such with the listing information (maybe not in public view but to agents only). These are the properties that should be the focus for those buyers who are hoping for deep discounts (not to imply they will get them).

Finally, I wish to touch on the doom's day loop, the Chicken Little Syndrome of the real estate market...it is public knowledge that some regions/areas are hurting and that other regions/areas are in the process of correction BUT...(and I want all to understand this)...this is NOT a national phenominum that the media would lead you to believe - it is centralized to certain areas only. Hence, it should not be grossly generalized and assumed down to the local level. Unfortunately, the media does not provide statistical evidence to the contrary of their message because the marketing industry would have a heck of a time selling their cars, mutual funds, and pharmaceuticals - Keep in mind, there never is size 4 font messages with positive things.

Ever Wonder What Those Letters Mean?

I often look at business cards of professionals from a whole array of industries and wonder...What do those letters (usually capitalized) after their names really mean?

I know THEY know what they are and how hard it was to obtain it but, from an outsider's point of view, I can't say I know the significance behind what PLS for the surveying, CIC for the insurance, or FAAO for the medical industries really might be.

So, I decided to help those who might have pondered the same question when looking at the letters behind a REALTORs name. For instance, I have the designation of GRI following my name on all my materials. I realize, though, unless you are in my industry or are very thorough with research, I doubt most might know what that means. The designations really do have value and a better understanding of what they are can only help the public when it comes to a Seller or a Buyer making a consideration of using a REALTOR for their real estate needs. Therefore, although it comes across as a dry read, I've posted a link that defines what those designations are and how a REALTOR obtains them.

I hope this is helpful to you as I'm sure at some point in time, you have looked at those letters and wondered if they were made up or are really significant.

http://www.realtor.com/FindReal/DesigsPop.asp

Real Estate Photography 101 - For Sellers!

A few comments about this article:

1) There was a home seller quoted in this article who said he had his property listed with a real-estate agent who took only one or two photos - I say, Shame on that agent! Clearly, that agent felt inconvenienced by doing the job he/she was hired to do....!!!

As a REALTOR, not to be confused with a real estate agent, this type of performance, or lack thereof, just gets my pot boiling....

2) Another statement in this article caught my attention and compelled me to share knowledge I know to be true to help you avoid claims of deception. The last tip, Tip #6, talks about editing your photos....BE VERY CAREFUL with the extent of the editing you do to your photos! You can not alter photos to eliminate true and factual features of a property because you are "afraid" it will drive buyers away. Keep whatever it is - in the photo! Therefore if you do happen to get an offer, sight unseen, from a buyer who then, eventually, reviews the property physically, you are not liable for claims of false or fraudulent practices.

And Finally,

3) I totally agree that you should request to see a REALTOR's photography performance...You must be represented with the property's best face forward and an extreme amount of photos for the internet savvy buyers...they do spend countless hours pouring over properties to consider without making the actual move to physically view the properties until much later in the game. Don't let your property get passed over...hire a competent REALTOR and ASK, ASK, ASK for qualifications...I can help you with that as well. Send me an email at Tracy.Williams@C211stTeam.com and I'll send you information on how to hire an expert REALTOR.


http://realestate.msn.com/Selling/Article_wsj.aspx?cp-documentid=5414351&GT1=35000

The 100 Biggest U.S. Markets

I have an article with statistical information and thought you would be interested to know how the market has been effected closest to your hometown here in the USA. I pulled this info from the June 2008 Money Magazine - Email me if you would like for me to send you a copy at Tracy.Williams@C211stTeam.com.


On a personal note, I am clearly upset by the lending industry's irresponsible business practices that have dramatically effected so many families. Additionally, I am disgusted by their knee-jerk reaction to the mess they created by tightening their lending practices so much so that it has cut off the real estate market circulation, and has ripped away the American Dream for so many honest families.

I just had to get that off my chest...

Tracy

4132 W Crestview Lane, LaPorte, IN

You will be thrilled and delighted as you enter this beautiful 3 bedroom, 2 full bath ranch located in the Crestview Subdivision. Approximately 1,600~sq. ft. of living space includes a living room, spacious kitchen that includes all the appliances and an informal dining area brightened by a sliding door providing access to the summer deck. An additional finished room in the basement adds to the living space. Over 1/2 acre lot is wonderfully landscaped, fenced, and includes an above-ground pool, deck, plus an attached 2~car garage. Conveniently located AND country living at it's best! Call today to schedule your private showing and enjoy all this home has to offer!

474 W Hwy 20, LaPorte, Indiana

Nearly 33 Acres of luscious land available - 27 acres are wooded. There are 2 ponds - the first is 1/4 acre; the second is a full acre which was stocked in 2004. Two creeks pass through the land and feed the 1 acre pond. A 600' driveway takes you to the back where the larger pond is located and the new bridge over the creek was installed 3-4 years ago, specifically engineered to handle heavy operated equipment for a beautiful future homesite construction overlooking the stocked pond. There is a Pole Barn, 26' x 54', in good condition which lies beyond the 1/4 acre pond. There is also a 2-bdrm cottage to the front of the property but carries no true value. Located only 60 miles from Chicago; 5 miles from I-80/94; 6 miles from I-90. Come Home to Paradise!

212 Holly Drive, Walkerton, Indiana

Peaceful, Quiet, Country Living. Almost an acre of land with woods. At night, you can see the stars - no city lights to wash them out! Wonderful surroundings to this 3 Bedroom, 2 Full Bath home with 10 foot ceilings on the upper level. On cooler nights, enjoy the warmth of your fireplace or on warmer days, sit outside on your wood deck off the kitchen. Plenty of room in this 1,778 sq. ft. home with areas for storage and a walk-in closet in the Main bedroom. Come out and see how beautiful and wonderful country living can be...

212 Fieldstone Drive, LaPorte Indiana

Beautiful Hillside Ranch overlooking almost an acre of luscious vegetation and landscaping. Fruit baring trees as well as Concord Grapes can be harvested from your own back yard! Located just minutes from everything, this Brick 4 Bedroom, 2.75 Bath home has everything for entertaining and can be suited for Related Living needs. Dual French Doors open out to the huge 378 sq. ft Patio where friends and family can sit on the brick benches, enjoy the company, and smell the food cooking on the Gas Grill. The main level kitchen has been completely remodeled to include your own built-in Temperature Controlled Wine Cabinet. Solid Oak Flooring! Lower Level has been finished and includes a dual closet bedroom and a second full-service kitchen with a full-length entertainment/bar counter, a recreation area with a woodburning stove, and a Game Room which can double as a Dining Area. You've have got to see this beautiful home, ready for your family! Make your showing appointment today!

Home seller's checklist - Selling Your House - MSN Real Estate

Overhere you will find a checklist in order to sell youir home faster
Home seller's checklist - Selling Your House - MSN Real Estate

REALTOR.com: Find a REALTOR® Search Options

Over here you will find a way to get a REALTOR in your locale in order to either buy or sell your home. If you are looking for real estate in the Northwest Indiana region, I can certainly help you with all of your real estate needs...please keep me in mind...I am here to help. You can visit my business website at www.LaPorteHomeSearch.com to see all of the listings on the MLS for Northwest Indiana Region.

REALTOR.com: Find a REALTOR® Search Options

Selling Your Home: Ideas to Help Sell Your House - MSN Real Estate

Any idea to sell your home nowadays would really help anybody out.
Selling Your Home: Ideas to Help Sell Your House - MSN Real Estate

Buy a House: MLS Listings & Home Buying Tips - MSN Real Estate

Any idea to help buy your dream home you will find overhere;-).
Buy a House: MLS Listings & Home Buying Tips - MSN Real Estate

7 deadly landscaping sins - Lawns & Landscaping - MSN Real Estate

Overhere you will find new idea's in order to help sell your home with landscaping.

7 deadly landscaping sins - Lawns & Landscaping - MSN Real Estate

MSN Real Estate: Home Buying & Selling Tips, MLS Listings, Rentals & More

More tips to either buying or selling your home.
MSN Real Estate: Home Buying & Selling Tips, MLS Listings, Rentals & More

Anxious home builders pile on incentives - MSN Money

The homebuilders are getting creative with incentives overhere
Anxious home builders pile on incentives - MSN Money

Facing foreclosure? 9 options - MSN Money

Are you facing Foreclosure do something about it.Since Congress approved the newFHA Secure Initiative Bill, you have options to turn your adjustable interest rate into a fixed FHA rate
Facing foreclosure? 9 options - MSN Money