A recent newspaper article lamented the fact that many first-time home buyers seeking to purchase properties with a modest amount down and a mortgage loan are being outmaneuvered for the same properties by investors with cash. The article stressed that often the cash offers are less than what it being offered by the mortgage-borrowers but sellers view is that 'cash is king'.
One thing the article didn't say is that most of these mortgage-borrowers, 1st time buyer's in particular, are asking for 'concessions' from the seller. By concessions I mean 'give backs'! The buyer wants the seller to give them up to 6% of the contract sale price to help cover the buyer's closing costs, the vast majority of which are associated with the loan itself. That's a big chunk of money any time, but especially now when sellers are already feeling used and abused by the falling market. That additional 'concession' amount is huge in comparison to what most sellers already see as a loss. The problem begins with FHA allowing and approving of this practice and ends with loan officers at every lending institution who push this as a way to get more house for less money.
My take on it is this: if you can't afford it , don't buy it. Relying on rebates other than the governments tax credit bill to get you into the next 'level' home is absolutely absurd. We got into this economic mess because people bought what they couldn't afford, thanks to sub-prime loans and the practice of issuing 1st and 2nd mortgages at the closing table with no money down. Now the issue is called 'concessions from the buyer' but it's still part of the same problem.
If you can't afford it, don't buy it. FHA accepts as little as 3% in downpayment. If you have more than that, either put it down on the home, use it for remodeling or repairs, or save it for a rainy day. But don't expect the sellers to come up with money you don't have. The average seller is making little or no money on the sale of their property these days and a request for them to give a buyer even more just doesn't fly, especially as compared to cash! When a seller gets cash there isn't any need to worry that the buyer won't ultimately be able to get the loan.
I tell all first time buyers or those seeking 'contributions' from the seller to be prepared for a stormy ride. And I tell sellers to weigh the options before making a decision. An offer is hand, even with concessions, is often worth more than continuing to have a property languish in a slow market. But it is rarely worth more than cash.
Friday, December 18, 2009
Saturday, December 12, 2009
It is as it is...'AS-IS' !
This was an article in my June '09 newsletter and I'm publishing it to the blog for a more permanent record. If you've already seen it, then hopefully it will refresh your knowledge of the ever growing trend to buy and sell property AS-IS.
During the past month I’ve written more purchase offers than ever before in such a short time period. Most of them have been negotiated successfully and now sit in ‘contingency’ limbo, awaiting the results of inspections, appraisals or loan approvals, or in the ‘pending’ file, waiting for the paperwork and closing date to come. But, two fell out immediately upon inspection, clearly demonstrating the true buyer benefit of contracting for properties in ‘As-Is’ condition, while reserving the right to inspections of the property.
The Florida Association of Realtors (FAR) and the Florida Bar Association (BAR) work together on the compilation of standard contract forms that are relatively easy to understand, even if the print is small and the terminology isn’t familiar to the general public. One of the most widely used and best, from the buyers standpoint, is the FAR-BAR ‘As-Is’ Contract for Sale and Purchase.
I know it sounds like there’s something amiss when you hear the phrase, ‘As-Is’, but that isn’t always the case. Many home sellers list their properties ‘As-Is’ in order to bring them to the market at a lower price, and for fear of being ‘nickeled and dimed to death’. And often Realtors recommend making purchase offers ‘As-Is’, since it allows the buyer to conduct inspections during an agreed upon time period (often 10 consecutive days from the date the contract is signed), and gives them the option to walk away, without penalty of any type. If those inspections reveal anything that isn’t acceptable, at the buyer’s sole discretion, the buyer can halt the sale process. All that is required to ‘bail out’ is a letter of cancellation, delivered to the seller within that inspection time period. It’s a buyer’s ‘loop-hole’ and it saved further cost and hassle for two of my buyer clients this month.
One buyer couple found numerous structural and building code issues when their chosen property was inspected. They decided that those repairs, plus all the desperately needed cosmetic work, made the house much too expensive in the long haul. (I had my doubts that the home would have appraised anyway, but that’s a topic for another time). The other buyer clients were dissuaded from going ahead with a cash purchase of a newly remodeled oceanfront condo when the initial inspection found environmental issues (which could have cost hundreds of thousands to mitigate), necessitating multiple additional, invasive inspections to arrive at a definitive answer. Both of these contracts were cancelled within the prescribed time frame and the buyer’s deposits were returned.
In some instances both the buyer and seller will agree to negotiate a new sale price and the deal can be resurrected. When contracts are cancelled, sellers are disappointed, especially if they aren’t aware of anything seriously wrong with their properties. And the buyer is disappointed because their ‘dream home’ wasn’t a dream after all.
No house is perfect, not even if it’s new, and realistic buyers understand they have to assume some responsibility. Most of the home inspections reveal only minor or cosmetic issues that buyers agree to fix or redo once they own the property. But when there is an unforeseen problem revealed by the inspections, the As-Is contract gives the buyer a clear advantage. Those inspection costs are money well spent to avoid years of problems and discontent.
For me as the Realtor, well, sure I’m disappointed when that happens. It’s a lot of time and energy expended without compensation. Hopefully, we’ll try again, and both of these clients will work with me to look for another property.
If at first you don’t succeed…it ain’t over ‘til it’s over!
During the past month I’ve written more purchase offers than ever before in such a short time period. Most of them have been negotiated successfully and now sit in ‘contingency’ limbo, awaiting the results of inspections, appraisals or loan approvals, or in the ‘pending’ file, waiting for the paperwork and closing date to come. But, two fell out immediately upon inspection, clearly demonstrating the true buyer benefit of contracting for properties in ‘As-Is’ condition, while reserving the right to inspections of the property.
The Florida Association of Realtors (FAR) and the Florida Bar Association (BAR) work together on the compilation of standard contract forms that are relatively easy to understand, even if the print is small and the terminology isn’t familiar to the general public. One of the most widely used and best, from the buyers standpoint, is the FAR-BAR ‘As-Is’ Contract for Sale and Purchase.
I know it sounds like there’s something amiss when you hear the phrase, ‘As-Is’, but that isn’t always the case. Many home sellers list their properties ‘As-Is’ in order to bring them to the market at a lower price, and for fear of being ‘nickeled and dimed to death’. And often Realtors recommend making purchase offers ‘As-Is’, since it allows the buyer to conduct inspections during an agreed upon time period (often 10 consecutive days from the date the contract is signed), and gives them the option to walk away, without penalty of any type. If those inspections reveal anything that isn’t acceptable, at the buyer’s sole discretion, the buyer can halt the sale process. All that is required to ‘bail out’ is a letter of cancellation, delivered to the seller within that inspection time period. It’s a buyer’s ‘loop-hole’ and it saved further cost and hassle for two of my buyer clients this month.
One buyer couple found numerous structural and building code issues when their chosen property was inspected. They decided that those repairs, plus all the desperately needed cosmetic work, made the house much too expensive in the long haul. (I had my doubts that the home would have appraised anyway, but that’s a topic for another time). The other buyer clients were dissuaded from going ahead with a cash purchase of a newly remodeled oceanfront condo when the initial inspection found environmental issues (which could have cost hundreds of thousands to mitigate), necessitating multiple additional, invasive inspections to arrive at a definitive answer. Both of these contracts were cancelled within the prescribed time frame and the buyer’s deposits were returned.
In some instances both the buyer and seller will agree to negotiate a new sale price and the deal can be resurrected. When contracts are cancelled, sellers are disappointed, especially if they aren’t aware of anything seriously wrong with their properties. And the buyer is disappointed because their ‘dream home’ wasn’t a dream after all.
No house is perfect, not even if it’s new, and realistic buyers understand they have to assume some responsibility. Most of the home inspections reveal only minor or cosmetic issues that buyers agree to fix or redo once they own the property. But when there is an unforeseen problem revealed by the inspections, the As-Is contract gives the buyer a clear advantage. Those inspection costs are money well spent to avoid years of problems and discontent.
For me as the Realtor, well, sure I’m disappointed when that happens. It’s a lot of time and energy expended without compensation. Hopefully, we’ll try again, and both of these clients will work with me to look for another property.
If at first you don’t succeed…it ain’t over ‘til it’s over!
Do you want fries with that…?
Throughout my varied career in real estate, I’ve only once, briefly, been associated with a franchise. And I’ve thought long and hard about the pros and cons of those relationships.
My decision is that some of the large, well known franchise names can benefit the real estate agents by driving clients to them through their closed system for national referrals. I honestly don’t believe that the franchise name benefits clients or customers. Buyers and sellers may think they are getting some inside track or special services, but I’m not sure that’s always true.
As an independent contractor based at an independent firm, I think I provide as much or more benefit to buyers and sellers .And here’s why...
- With the Internet being the primary place that buyers look for property, they can find me and my listings on dozens of sites and search engines. I advertise in Realtor.com, as well as HomesandLand.com (the largest nationally syndicated real estate magazine), TCPalm.com (local Scripps website for the Treasure Coast). Plus I have my own website, GetaFloridaLife.com, and the company website CompassPointRE.com. All those listings are circulated to various search engines and can be found on Zillow, Front Door, and the Florida State fed information data exchange (IDX). Often I have a listing featured in The Wall Street Journal. My listings are everywhere they need to be to be seen. That means both buyers and sellers receive a high level of service.
- Buyers and sellers can count on me to provide them with referrals to qualified real estate professionals in all areas of the country without regard to issues of loyalty to a company brand. I belong to a number of professional organizations that supply members with referral guides. I am then able to identify and interview real estate salespeople and narrow the field to a few who might work best with a particular client or customer.
- I personally do more advertising and marketing of my listed properties and my personal brand than most other agents. I can design and produce marketing materials that work best for each property without having to follow instructions from corporate headquarters. I make certain to disseminate the listing details to agents in other areas of the state and country with whom I’ve done business or who might have the appropriate client for a specific listing. And I also write a 'market condition' report for both Vero Beach and Sebastian on Realtor.com. That gets my name out there, driving more traffic to my website getting more potential buyers to see my listings. I publish this monthly electronic newsletter which keeps people coming back to my site and listings! All for the mutual benefit of buyers, sellers and me, as their real estate agent.
You, as buyers and sellers, don’t need a franchise to get good service. And I don’t need to be part of a franchise firm to give it. Bigger isn’t always better.
My decision is that some of the large, well known franchise names can benefit the real estate agents by driving clients to them through their closed system for national referrals. I honestly don’t believe that the franchise name benefits clients or customers. Buyers and sellers may think they are getting some inside track or special services, but I’m not sure that’s always true.
As an independent contractor based at an independent firm, I think I provide as much or more benefit to buyers and sellers .And here’s why...
- With the Internet being the primary place that buyers look for property, they can find me and my listings on dozens of sites and search engines. I advertise in Realtor.com, as well as HomesandLand.com (the largest nationally syndicated real estate magazine), TCPalm.com (local Scripps website for the Treasure Coast). Plus I have my own website, GetaFloridaLife.com, and the company website CompassPointRE.com. All those listings are circulated to various search engines and can be found on Zillow, Front Door, and the Florida State fed information data exchange (IDX). Often I have a listing featured in The Wall Street Journal. My listings are everywhere they need to be to be seen. That means both buyers and sellers receive a high level of service.
- Buyers and sellers can count on me to provide them with referrals to qualified real estate professionals in all areas of the country without regard to issues of loyalty to a company brand. I belong to a number of professional organizations that supply members with referral guides. I am then able to identify and interview real estate salespeople and narrow the field to a few who might work best with a particular client or customer.
- I personally do more advertising and marketing of my listed properties and my personal brand than most other agents. I can design and produce marketing materials that work best for each property without having to follow instructions from corporate headquarters. I make certain to disseminate the listing details to agents in other areas of the state and country with whom I’ve done business or who might have the appropriate client for a specific listing. And I also write a 'market condition' report for both Vero Beach and Sebastian on Realtor.com. That gets my name out there, driving more traffic to my website getting more potential buyers to see my listings. I publish this monthly electronic newsletter which keeps people coming back to my site and listings! All for the mutual benefit of buyers, sellers and me, as their real estate agent.
You, as buyers and sellers, don’t need a franchise to get good service. And I don’t need to be part of a franchise firm to give it. Bigger isn’t always better.
Friday, December 11, 2009
Time to Give Thanks and Praise....
During this time of year it's nice to acknowledge the people who help make my professional life easier. So here goes:
- Everyone needs a good handyman and I've finally found one. His name is Paul Chapline and he does home repairs and maintenance at very reasonable prices. His number is 772-360-9756.
- For pressure washing and painting I count on Glen Pacicca. His number is 772-480-1636.
- When I have scrap metal to be hauled, like old appliances and such, or even big furniture items to be moved to the dump, I give Dennis Mitchell a call. His number is 772-480-1843.
- For moving information, be it local or national, I can always depend on Mr. Small Move at 772-770-2689.
-For keys and door locks in Vero I use Benson Lock Service at 772-567-5968. In Sebastian for keys, door locks and safes I count on B & J Locksmith at 772-589-7528. And the mobile service of Mark Fischer at Guardian Locksmith is fantastic. That number is 772-581-2724.
- Tom Davis does lawn care and maintenance. And he's great at spiffing up old neglected landscaping. He's at 772-321-9497.
- For a maid or cleaning service Life-Maid-Easy at 772-562-7417 makes life easy.
- For useful and usable large items like furniture or appliances to donate, I call St. Vincent dePaul. They do everything possible to accommodate schedules and provide the receipt for tax purposes on the spot. Their Vero number is 772-567-6774 or in Sebastian 772-589-3338.
- Several mortgage lenders deserve kudos for being efficient and pleasant at the same time. I'm delighted when I find that buyers are working with them to obtain loans and appreciate knowing I can call on them for clarification on all types of mortgage issues.
Lucy Kranker - PNC Mortgage 772-360-3096
Shannon Pohl - PNC Mortgage 772-770-6985
Susan Callahan - Bank of America 772-473-0031
Katherine LaLime - Seacoast National Bank(Indian River)772-231-4402
Ellen Falk - Seacoast National Bank (St. Lucie) 772-342-7701
Lisa Amorosa - Wells Fargo Home Mortgage 772-231-3767 X 1004
Greta Pierpont - Chase Mortgage 772-243-3977
- Home sale closings can be done by title companies here in Florida. There are a few we can count on and like to work with.
Elite Title 772-231-5560 (Darlene Larabelle Pegg and Melissa Haywood)
Oceanside Title 772-234-0700 (Dottie Emmons)
Stewart Title 772-569-7603 (Cindy Silverstein and Carole Adams)
- When buying a home you should ALWAYS get an inspection done by a qualified home inspector. These guys are great to work with.
Greg Bertaux - IM Home Inspections 772-569-2141
Dakota DeLuca - WIN Indian River 772-228-9201
Jerome Young - Spector Home Inspection Service 772-564-0191
Joe Fersch - Amer Home Inspections 772-770-3661
William Powers - CGC 772-873-9701
- When I'm faced with a property without hurricane protection and need an estimate for the installation of storm panels, I call Joe Fersch, Licensed Contractor, at 772-770-3661.
- And I'd be remiss if I didn't mention the all important AAA! they have come to my aide innumerable times and I'm very grateful when they 'rescue' me, especially when I lock my keys in the car! American Automobile Association's emergency road service number is 800-222-4357. I know it by heart.
I'm posting this to the blog and not to the newsletter so you can return here to find these names and numbers if you need them. While I can't legally 'recommend' them, I can say that from personal experience, I'm please to know them and work with them whenever possible. Please check back often. I will update this resource page from time to time to keep current.
And, as this started out, THANK YOU to all named herein. You've made my professional life better through your hard work and diligence. Wishing everyone a prosperous New Year.
- Everyone needs a good handyman and I've finally found one. His name is Paul Chapline and he does home repairs and maintenance at very reasonable prices. His number is 772-360-9756.
- For pressure washing and painting I count on Glen Pacicca. His number is 772-480-1636.
- When I have scrap metal to be hauled, like old appliances and such, or even big furniture items to be moved to the dump, I give Dennis Mitchell a call. His number is 772-480-1843.
- For moving information, be it local or national, I can always depend on Mr. Small Move at 772-770-2689.
-For keys and door locks in Vero I use Benson Lock Service at 772-567-5968. In Sebastian for keys, door locks and safes I count on B & J Locksmith at 772-589-7528. And the mobile service of Mark Fischer at Guardian Locksmith is fantastic. That number is 772-581-2724.
- Tom Davis does lawn care and maintenance. And he's great at spiffing up old neglected landscaping. He's at 772-321-9497.
- For a maid or cleaning service Life-Maid-Easy at 772-562-7417 makes life easy.
- For useful and usable large items like furniture or appliances to donate, I call St. Vincent dePaul. They do everything possible to accommodate schedules and provide the receipt for tax purposes on the spot. Their Vero number is 772-567-6774 or in Sebastian 772-589-3338.
- Several mortgage lenders deserve kudos for being efficient and pleasant at the same time. I'm delighted when I find that buyers are working with them to obtain loans and appreciate knowing I can call on them for clarification on all types of mortgage issues.
Lucy Kranker - PNC Mortgage 772-360-3096
Shannon Pohl - PNC Mortgage 772-770-6985
Susan Callahan - Bank of America 772-473-0031
Katherine LaLime - Seacoast National Bank(Indian River)772-231-4402
Ellen Falk - Seacoast National Bank (St. Lucie) 772-342-7701
Lisa Amorosa - Wells Fargo Home Mortgage 772-231-3767 X 1004
Greta Pierpont - Chase Mortgage 772-243-3977
- Home sale closings can be done by title companies here in Florida. There are a few we can count on and like to work with.
Elite Title 772-231-5560 (Darlene Larabelle Pegg and Melissa Haywood)
Oceanside Title 772-234-0700 (Dottie Emmons)
Stewart Title 772-569-7603 (Cindy Silverstein and Carole Adams)
- When buying a home you should ALWAYS get an inspection done by a qualified home inspector. These guys are great to work with.
Greg Bertaux - IM Home Inspections 772-569-2141
Dakota DeLuca - WIN Indian River 772-228-9201
Jerome Young - Spector Home Inspection Service 772-564-0191
Joe Fersch - Amer Home Inspections 772-770-3661
William Powers - CGC 772-873-9701
- When I'm faced with a property without hurricane protection and need an estimate for the installation of storm panels, I call Joe Fersch, Licensed Contractor, at 772-770-3661.
- And I'd be remiss if I didn't mention the all important AAA! they have come to my aide innumerable times and I'm very grateful when they 'rescue' me, especially when I lock my keys in the car! American Automobile Association's emergency road service number is 800-222-4357. I know it by heart.
I'm posting this to the blog and not to the newsletter so you can return here to find these names and numbers if you need them. While I can't legally 'recommend' them, I can say that from personal experience, I'm please to know them and work with them whenever possible. Please check back often. I will update this resource page from time to time to keep current.
And, as this started out, THANK YOU to all named herein. You've made my professional life better through your hard work and diligence. Wishing everyone a prosperous New Year.
Monday, November 30, 2009
Pet peeves aren’t always about pets but that’s a place to start
I saw a great article this week on how home sellers having pets can be a 'griping point' for prospective home buyers. Not only did they talk about the mere presence of animals during showings, but they went into the issue of pet smells, dander, and damage. This got me thinking about the things that seem to matter most to buyers, besides price, of course.
The #1 ‘red flag’ for buyer prospects is the condition of the house when it’s shown. Sure, people understand that laundry piles up, dishes need to soak and mail piles up the house is currently being lived in. But it gets to be a bit too much they have to step over mounds of ‘stuff’ to get across the room. And dirt is different from clutter…it it’s dirty, they won’t come.
The need to repaint immediately, be it for covering nicks or to tone down the wall color makes buyers uneasy. Sure, it is cosmetic. But cosmetic re-dos cost money, too. Most buyers want to envision their belongings placed and livable immediately, not after they spend hours and/or mucho dollars redoing the walls, baseboard and trim. And pray that there isn’t wallpaper anywhere because I can’t think of a single buyer during my entire career who wanted to keep someone else’s floral print in the bath or the sea shell border in the bedrooms.
For better or for worse, we live in hurricane country. We need to be prepared and have supplies on hand and an exit strategy ready if we need to move fast. And we need storm protection for the windows and doors. If a house doesn’t have that it’s a detriment to the sale. First and foremost, the insurance rates will be much higher for a home without storm protection for all openings. And buyers are aware that the cost to add the shutters, panels or windows is high so they shy away from homes where that protection isn’t’ already installed.
Homes without some curb appeal don’t attract buyers. If the shrubs need trimming, trim them. If the driveway and walkway is black with the typical mold and mildew we get here, remove it with a good pressure wash. You can do it yourself or hire someone for under $100 to do the job. Same goes for the house itself.
Sellers can’t physically move their homes to different lots, neighborhoods or towns, but they can be aware of the issues that buyers raise when looking at properties and attempt to mitigate the issues described above that are in their control.
And…buyers might do well to rethink some of the issues that are strictly cosmetic. Even new homes have their problems. No house is perfect and brand new homes need something, too. Why, the cost of window coverings alone can make your head spin.
Life has its challenges…so does real estate.
The #1 ‘red flag’ for buyer prospects is the condition of the house when it’s shown. Sure, people understand that laundry piles up, dishes need to soak and mail piles up the house is currently being lived in. But it gets to be a bit too much they have to step over mounds of ‘stuff’ to get across the room. And dirt is different from clutter…it it’s dirty, they won’t come.
The need to repaint immediately, be it for covering nicks or to tone down the wall color makes buyers uneasy. Sure, it is cosmetic. But cosmetic re-dos cost money, too. Most buyers want to envision their belongings placed and livable immediately, not after they spend hours and/or mucho dollars redoing the walls, baseboard and trim. And pray that there isn’t wallpaper anywhere because I can’t think of a single buyer during my entire career who wanted to keep someone else’s floral print in the bath or the sea shell border in the bedrooms.
For better or for worse, we live in hurricane country. We need to be prepared and have supplies on hand and an exit strategy ready if we need to move fast. And we need storm protection for the windows and doors. If a house doesn’t have that it’s a detriment to the sale. First and foremost, the insurance rates will be much higher for a home without storm protection for all openings. And buyers are aware that the cost to add the shutters, panels or windows is high so they shy away from homes where that protection isn’t’ already installed.
Homes without some curb appeal don’t attract buyers. If the shrubs need trimming, trim them. If the driveway and walkway is black with the typical mold and mildew we get here, remove it with a good pressure wash. You can do it yourself or hire someone for under $100 to do the job. Same goes for the house itself.
Sellers can’t physically move their homes to different lots, neighborhoods or towns, but they can be aware of the issues that buyers raise when looking at properties and attempt to mitigate the issues described above that are in their control.
And…buyers might do well to rethink some of the issues that are strictly cosmetic. Even new homes have their problems. No house is perfect and brand new homes need something, too. Why, the cost of window coverings alone can make your head spin.
Life has its challenges…so does real estate.
Sunday, November 15, 2009
Just when you thought you'd heard everything...
Of all the tales that have been told about short-sales gone wrong, this one takes the cake! It was reported by the Florida Realtors in the daily news and events last week on Friday the 13th!
It seems that a Realtor in Orange Park was working on a short sale for one of her listed properties. She faxed the required short sale package, a large volume of documents pertaining to the sellers financial situation and sale contract, to Wells Fargo where the home owners got their mortgage.
Apparently Wells Fargo couldn't match the loan number with the property, although it was indeed correct. Instead, they looked up the real estate agents name and matched that to a Wells Fargo loan.
That giant company couldn't match up numbers, but they can compare names. Too bad for the Realtor that she had her own personal mortgage loan with Wells Fargo, too.
You guessed it...she is now in the fight of her life! She was never late on payments, never asked for loan modification, never signed nor sent in any documents regarding her property or her mortgage. But they now have her file assigned to the Loss Mitigation Department of Wells Fargo, and claim to have both listing and sales contracts for her personal residence WITH HER SIGNATURE on them!
You can't make this stuff up!!
Last night on the news they reported on a family who was pretty surprised when the moving van arrived and people started trying to enter their house with furniture and boxes. They said "STOP!" and asked what was going on. The other folks replied that they had purchased this very home as a foreclosed property from Chase.
Yep, Chase messed up big time with this one! The owners of the house were not late on any mortgage payments. They, too, never asked for a loan modification and never communicated with Chase except to send in their mortgage payment monthly...and on time. They were never notified that there was any type of problem, nor that Chase had any issues with them, much less a foreclosure. But sure enough, Chase did foreclose on that house and sold it to the folks arriving with the moving van full of home goods!
Some attorneys are going to get mighty rich on cases like these.
And you wonder why I complain about working with mortgage lenders these days?
It seems that a Realtor in Orange Park was working on a short sale for one of her listed properties. She faxed the required short sale package, a large volume of documents pertaining to the sellers financial situation and sale contract, to Wells Fargo where the home owners got their mortgage.
Apparently Wells Fargo couldn't match the loan number with the property, although it was indeed correct. Instead, they looked up the real estate agents name and matched that to a Wells Fargo loan.
That giant company couldn't match up numbers, but they can compare names. Too bad for the Realtor that she had her own personal mortgage loan with Wells Fargo, too.
You guessed it...she is now in the fight of her life! She was never late on payments, never asked for loan modification, never signed nor sent in any documents regarding her property or her mortgage. But they now have her file assigned to the Loss Mitigation Department of Wells Fargo, and claim to have both listing and sales contracts for her personal residence WITH HER SIGNATURE on them!
You can't make this stuff up!!
Last night on the news they reported on a family who was pretty surprised when the moving van arrived and people started trying to enter their house with furniture and boxes. They said "STOP!" and asked what was going on. The other folks replied that they had purchased this very home as a foreclosed property from Chase.
Yep, Chase messed up big time with this one! The owners of the house were not late on any mortgage payments. They, too, never asked for a loan modification and never communicated with Chase except to send in their mortgage payment monthly...and on time. They were never notified that there was any type of problem, nor that Chase had any issues with them, much less a foreclosure. But sure enough, Chase did foreclose on that house and sold it to the folks arriving with the moving van full of home goods!
Some attorneys are going to get mighty rich on cases like these.
And you wonder why I complain about working with mortgage lenders these days?
SAFETY ALERT!!! Water Can EXPLODE in the Microwave!!!
I'd read about water 'superheating' in the microwave but never took it very seriously until now. Please read this and take heed.
Last week my mother put a cup of water in the microwave to shortcut the process of making a cup of tea. She's done this every day for years. But last week the outcome was pretty dramatic. To hear her tell it, she walked to the other side of her kitchen and heard a very loud BOOM! As she turned around the door of the microwave blew open and scalding water came blasting out across the room. Boiling water was all over the floor, stove top and island. The cup was sitting int he microwave, still intact.
Luckily, my mother wasn't standing in front of the microwave, tapping her foot to hurry up the heating process...something I'm known to do. Thankfully, she wasn't burned, nor was the cat who had been eating his kibble just a few feet away.
This same thing happened to a friend of hers last year. On that occasion, the woman did sustain severe burns to her hands and arms when her counter top microwave burst forth with scalding water. It might have been far worse if she'd had the over-the-stove mount that is pretty standard now.
Below is a link to a site called "Steve Spangler Science, Making Science Fun". It describes the process of 'superheating' and cautions not to boil water alone in the microwave. I've stopped doing it and I urge you to do the same.
Yesterday was my folks wedding anniversary. I bought them a new tea kettle.
http://www.stevespanglerscience.com/experiment/exploding-water-in-the-microwave
Last week my mother put a cup of water in the microwave to shortcut the process of making a cup of tea. She's done this every day for years. But last week the outcome was pretty dramatic. To hear her tell it, she walked to the other side of her kitchen and heard a very loud BOOM! As she turned around the door of the microwave blew open and scalding water came blasting out across the room. Boiling water was all over the floor, stove top and island. The cup was sitting int he microwave, still intact.
Luckily, my mother wasn't standing in front of the microwave, tapping her foot to hurry up the heating process...something I'm known to do. Thankfully, she wasn't burned, nor was the cat who had been eating his kibble just a few feet away.
This same thing happened to a friend of hers last year. On that occasion, the woman did sustain severe burns to her hands and arms when her counter top microwave burst forth with scalding water. It might have been far worse if she'd had the over-the-stove mount that is pretty standard now.
Below is a link to a site called "Steve Spangler Science, Making Science Fun". It describes the process of 'superheating' and cautions not to boil water alone in the microwave. I've stopped doing it and I urge you to do the same.
Yesterday was my folks wedding anniversary. I bought them a new tea kettle.
http://www.stevespanglerscience.com/experiment/exploding-water-in-the-microwave
Tuesday, November 10, 2009
Sometimes the truth hurts...
Last week I went to a listing appointment and came away empty…by choice. The potential sellers weren’t prepared for the statistics that go with this current real estate market and just couldn’t bear to sell their lovely home for at or below their original purchase price. But that’s the name of the game if you bought property in 2005 or 2006. So long, farewell, Auf Wiederschauen , good bye….those prices are long gone.
Nearly every day I’m faced with home owners desperate to move, but not desperate enough to face facts. The only consolation is that even though they bought at the high point, if they sell now they can buy again, this time at the low point. A loss is still a loss, I know, but if you’re going to move on in life, find something positive to hang on to.
I also lost a listing last week to an agent who told a lovely couple what they wanted to hear. I’d worked with them months ago as they looked at condos on the island. They dream of downsizing and being free of lawn care and the like. But when I did a CMA to see what the best possible price was that I could get them for their current home, everything ground to a halt. I told them the truth…their home is absolutely charming and unique in it’s decorating style. Plus it’s nicely situated with a great view of the community pond. But it’s older and doesn’t compete with the new, more ‘decked out’ homes that flood the market in that price range. It simply won’t appraise even if they get a buyer prospect that falls in love with for its decorating and cache.
I had hopes that they would eventually come to see the situation for what it is and finally list with me. Instead, after a couple of months, they found an agent who told them what they wanted to hear…and they listed the house with her for at least $60.000 over fair market value.
I’ve seen this before. And, in fact, even from the same agent who listed that home. The houses don’t sell and the sellers get frustrated, eventually beaten down. At least half the time they give up and blame the devil for messing with their lives. Instead they should blame the agent who just wanted to beef up his/her listing inventory.. After all, listings are what get us calls…and the reason for the old adage ‘you’ve got to list to last’.
It’s those agents that give us all a bum rap. I and others work hard and long for our clients and try to give them the correct information and advice. But with agents ‘blowing smoke’ just to get the foot in the door, we all suffer, as does the client.
I don’t know what cliché or tag line I can use without sounding like a sore loser. It’s against the code of ethics to speak ill of other agents so those of us who play by the rules have to sit still, wait and watch, When those overpriced listings expire we get called back in to save the day. As #2…you try harder.
Nearly every day I’m faced with home owners desperate to move, but not desperate enough to face facts. The only consolation is that even though they bought at the high point, if they sell now they can buy again, this time at the low point. A loss is still a loss, I know, but if you’re going to move on in life, find something positive to hang on to.
I also lost a listing last week to an agent who told a lovely couple what they wanted to hear. I’d worked with them months ago as they looked at condos on the island. They dream of downsizing and being free of lawn care and the like. But when I did a CMA to see what the best possible price was that I could get them for their current home, everything ground to a halt. I told them the truth…their home is absolutely charming and unique in it’s decorating style. Plus it’s nicely situated with a great view of the community pond. But it’s older and doesn’t compete with the new, more ‘decked out’ homes that flood the market in that price range. It simply won’t appraise even if they get a buyer prospect that falls in love with for its decorating and cache.
I had hopes that they would eventually come to see the situation for what it is and finally list with me. Instead, after a couple of months, they found an agent who told them what they wanted to hear…and they listed the house with her for at least $60.000 over fair market value.
I’ve seen this before. And, in fact, even from the same agent who listed that home. The houses don’t sell and the sellers get frustrated, eventually beaten down. At least half the time they give up and blame the devil for messing with their lives. Instead they should blame the agent who just wanted to beef up his/her listing inventory.. After all, listings are what get us calls…and the reason for the old adage ‘you’ve got to list to last’.
It’s those agents that give us all a bum rap. I and others work hard and long for our clients and try to give them the correct information and advice. But with agents ‘blowing smoke’ just to get the foot in the door, we all suffer, as does the client.
I don’t know what cliché or tag line I can use without sounding like a sore loser. It’s against the code of ethics to speak ill of other agents so those of us who play by the rules have to sit still, wait and watch, When those overpriced listings expire we get called back in to save the day. As #2…you try harder.
Wednesday, October 7, 2009
Short Sale Rant
I'm seething this week because the short sale situation is abominable and it looks like it will be around for a long time to come.
On Monday I went to a foreclosure hearing at the courthouse on behalf of a client who lives in New Jersey and couldn't be there to speak for himself. I had the full inch-thick short sale package with me that had been submitted to his lender, Chase, over a month ago. The package includes a bona fide contract for a cash purchase of the condo unit he owns here. And no one at Chase has bothered to answer our frequent calls for months...even now that we have this offer ready and waiting. But now I know why....seems that Chase assigned the mortgage to Fannie Mae but never notified the owner or anyone else for that matter. There I stood in front of the judge, responding to papers that said this was a hearing of Chase vs. my client, when it turned out to be Federal National Mortgage vs. my client, instead. The judge told them to go back to the drawing board so the foreclosure was stopped. But for how long? And who do we talk to about this offer now? Who's on first?
Then on Tuesday I got a chilling call that a fantastic short sale offer had been rejected by the lender due to their misunderstanding of some paperwork...and that's partly because the office representing my clients lender sent the wrong documents forward for review. Now I have to do a more elaborate tap-dance to try to get this thing worked out.
I'm dying here...this is so unsatisfying for someone like me, who thrives on procedure, process and rules. In short sale land there are none!
I had long discussions this week with colleagues regarding the way they handle multiple short-sale offers. There is a clear path defined for multiple offers when the only one to have a say on price and terms is the owner of the property. But all that great good common sense goes out the window when it comes to multiple offers on a short sale property. Since the lender gets the final say on price and terms in short sales, anything goes. Some agents present everything to the seller-owner and that seller only signs one offer and holds the rest back for later if needed. Others, often at the request of the bank involved, send in everything that comes along so the bank can pick from the pool of offers. So whenever you're working with a buyer on a short sale now, you have to phone the agent and ask how the offers will be handled. It may not matter that you send them an offer thousands of dollars higher than the 1st one they got and sent. You'll only know after months of waiting. Or not...I've seen the whole thing have to begin again because the person working for the bank moves to another position or quits and the files are so stacked up and backlogged they just toss them all out and start over! Imagine running a business like that?!!
I honestly don't know how many more of these I'm willing to do. I want to help sellers and buyers through the quagmire, but there is just so much I can take. I'm well trained in what is supposed to be the process of short sales. But there is no such thing. I've taken at least a half-dozen courses to prepare myself and even got 'certified' to handle them. But it's a giant free-for all! Many of the 'analysts' working for lenders in Loss Mitigation are totally untrained and unprepared. It should be called Loss Agitation...all they do is stir up anger with long waits, unreturned phone calls, misinformation and incompetence. UGH...short sale my foot! These deals are anything but short.
On Monday I went to a foreclosure hearing at the courthouse on behalf of a client who lives in New Jersey and couldn't be there to speak for himself. I had the full inch-thick short sale package with me that had been submitted to his lender, Chase, over a month ago. The package includes a bona fide contract for a cash purchase of the condo unit he owns here. And no one at Chase has bothered to answer our frequent calls for months...even now that we have this offer ready and waiting. But now I know why....seems that Chase assigned the mortgage to Fannie Mae but never notified the owner or anyone else for that matter. There I stood in front of the judge, responding to papers that said this was a hearing of Chase vs. my client, when it turned out to be Federal National Mortgage vs. my client, instead. The judge told them to go back to the drawing board so the foreclosure was stopped. But for how long? And who do we talk to about this offer now? Who's on first?
Then on Tuesday I got a chilling call that a fantastic short sale offer had been rejected by the lender due to their misunderstanding of some paperwork...and that's partly because the office representing my clients lender sent the wrong documents forward for review. Now I have to do a more elaborate tap-dance to try to get this thing worked out.
I'm dying here...this is so unsatisfying for someone like me, who thrives on procedure, process and rules. In short sale land there are none!
I had long discussions this week with colleagues regarding the way they handle multiple short-sale offers. There is a clear path defined for multiple offers when the only one to have a say on price and terms is the owner of the property. But all that great good common sense goes out the window when it comes to multiple offers on a short sale property. Since the lender gets the final say on price and terms in short sales, anything goes. Some agents present everything to the seller-owner and that seller only signs one offer and holds the rest back for later if needed. Others, often at the request of the bank involved, send in everything that comes along so the bank can pick from the pool of offers. So whenever you're working with a buyer on a short sale now, you have to phone the agent and ask how the offers will be handled. It may not matter that you send them an offer thousands of dollars higher than the 1st one they got and sent. You'll only know after months of waiting. Or not...I've seen the whole thing have to begin again because the person working for the bank moves to another position or quits and the files are so stacked up and backlogged they just toss them all out and start over! Imagine running a business like that?!!
I honestly don't know how many more of these I'm willing to do. I want to help sellers and buyers through the quagmire, but there is just so much I can take. I'm well trained in what is supposed to be the process of short sales. But there is no such thing. I've taken at least a half-dozen courses to prepare myself and even got 'certified' to handle them. But it's a giant free-for all! Many of the 'analysts' working for lenders in Loss Mitigation are totally untrained and unprepared. It should be called Loss Agitation...all they do is stir up anger with long waits, unreturned phone calls, misinformation and incompetence. UGH...short sale my foot! These deals are anything but short.
Sunday, August 30, 2009
The wheels of the bus go round and round...
Real Estate is a business like any other, but it hits 'closer to home' than most because it's all about HOME!
I have to walk a line between business and personal relationships, as do my clients. Many are long-time friends who know me well enough to accept what I say as truth. They know that if I'm not familiar with something or don't know the answer to the question, I'll say so. And they also know that I've spent countless hours being educated in this profession and thoroughly research the subjects I talk about. So it's always a shock when one of those 'inner-circle' clients just throws me under the bus.
I am trying my best to help everyone, whether personal friend or not, to find their way through the quagmire in this real estate market. It isn't easy telling a client and/or friend that they can't afford a particular property they have their heart set on or that their current home can't sell at high enough a price to even cover the current mortgage. It is all personal stuff. But they can't take it personally.
One of my dearest friends and former client had a meltdown last week over the size of the offers we received on her vacant home that's been listed for sale on and off for nearly 2 years. She was flabbergasted that the market value of her home had decreased before her very eyes and that the appraisal from 30 days ago for a sale that fell apart won't hold up now.
After several lively discussions over a weeks time, she sent an email , stating that she has decided not to sell, wanted the home taken off the market and removed from MLS. She offered to pay for the advertising we have done thus far, knowing that is part of any early withdrawal obligation. At that point I hadn't decided to pass on those fees and needed to speak to my broker to determine if he wanted his share of the costs generated by our extensive print and Internet advertising.
Imagine my surprise when I went to the property to remove my sign and lockbox...there was a 2nd sign in the yard from another real estate firm, announcing the home's availability for rent!
I could feel those bus wheels crunching.
I'm still shocked and saddened that she could do such a thing...heck, she didn't even give me the chance to find the tenant and recoup some costs through a commission. She just phoned someone else...as though I hadn't done my job and wasn't capable of renting her home since I couldn't sell it at a price that pleased her. Yes, I took it personally.
Both she and I were then at an emotional high point. Business and personal were so finely entwined that I couldn't see a way to separate them for nearly 12 hrs.And that bus kept rolling over me every other minute.
After a night of restless sleep I was able to become calmer and just 'let it be'. I wrote to her that I'd removed my lockbox and sign and mentioned that the home's AC wasn't functioning when I entered the property. Then I alerted another agent who had looked at the home for herself as to it's rental potential. And I gave her the owner's contact information so they could deal directly. That would save the owner a commission. After all, money is bus fuel, and I just wanted to stop that bus.
I haven't yet figured out the amount we've spent marketing this home, but it's substantial and way more than she will want to pay to make up for running me over. I'd been keeping the listing all this time because she was a friend and I've spent way too much on it's marketing to make the arrangement profitable, even if we had completed a sale.
So clearly, I hadn't been unemotional, as I preach to others. If I had been, I wouldn't have renewed the listing so many times. I just didn't want to toss her into traffic.
Each time I've found myself under a bus, I've wondered where the problem lies. And now I know it's with me. Learning not to take it personally isn't easy for anyone on any level.
I have to walk a line between business and personal relationships, as do my clients. Many are long-time friends who know me well enough to accept what I say as truth. They know that if I'm not familiar with something or don't know the answer to the question, I'll say so. And they also know that I've spent countless hours being educated in this profession and thoroughly research the subjects I talk about. So it's always a shock when one of those 'inner-circle' clients just throws me under the bus.
I am trying my best to help everyone, whether personal friend or not, to find their way through the quagmire in this real estate market. It isn't easy telling a client and/or friend that they can't afford a particular property they have their heart set on or that their current home can't sell at high enough a price to even cover the current mortgage. It is all personal stuff. But they can't take it personally.
One of my dearest friends and former client had a meltdown last week over the size of the offers we received on her vacant home that's been listed for sale on and off for nearly 2 years. She was flabbergasted that the market value of her home had decreased before her very eyes and that the appraisal from 30 days ago for a sale that fell apart won't hold up now.
After several lively discussions over a weeks time, she sent an email , stating that she has decided not to sell, wanted the home taken off the market and removed from MLS. She offered to pay for the advertising we have done thus far, knowing that is part of any early withdrawal obligation. At that point I hadn't decided to pass on those fees and needed to speak to my broker to determine if he wanted his share of the costs generated by our extensive print and Internet advertising.
Imagine my surprise when I went to the property to remove my sign and lockbox...there was a 2nd sign in the yard from another real estate firm, announcing the home's availability for rent!
I could feel those bus wheels crunching.
I'm still shocked and saddened that she could do such a thing...heck, she didn't even give me the chance to find the tenant and recoup some costs through a commission. She just phoned someone else...as though I hadn't done my job and wasn't capable of renting her home since I couldn't sell it at a price that pleased her. Yes, I took it personally.
Both she and I were then at an emotional high point. Business and personal were so finely entwined that I couldn't see a way to separate them for nearly 12 hrs.And that bus kept rolling over me every other minute.
After a night of restless sleep I was able to become calmer and just 'let it be'. I wrote to her that I'd removed my lockbox and sign and mentioned that the home's AC wasn't functioning when I entered the property. Then I alerted another agent who had looked at the home for herself as to it's rental potential. And I gave her the owner's contact information so they could deal directly. That would save the owner a commission. After all, money is bus fuel, and I just wanted to stop that bus.
I haven't yet figured out the amount we've spent marketing this home, but it's substantial and way more than she will want to pay to make up for running me over. I'd been keeping the listing all this time because she was a friend and I've spent way too much on it's marketing to make the arrangement profitable, even if we had completed a sale.
So clearly, I hadn't been unemotional, as I preach to others. If I had been, I wouldn't have renewed the listing so many times. I just didn't want to toss her into traffic.
Each time I've found myself under a bus, I've wondered where the problem lies. And now I know it's with me. Learning not to take it personally isn't easy for anyone on any level.
Sunday, August 9, 2009
Friendship and Real Estate
This entry has very little to do with the real estate market and everything to do with Friendship. Long term or short...real friendships are necessary for nurturing the soul.
I just got to spend nearly 6 days with a woman I've known for more nearly 40 years. We were young then, she younger than I, and idealistic to the max. We weathered the storms in both of our lives, the losses of her parents, my marriage, our innocence. We've triumphed with moves to distant climes, new relationships, jobs, marriages, and family stresses. And we're still friends...silly girls giggling at side jokes, sharing the old memories and telling tales, making new ones.
Like any good friend, I'd love to have all my closest friends living right near-by. so naturally during her visit I did show her a house or two that might work if retirement to Florida was at all appealing to her or her totally agreeable husband. I'm planting the seed...buy a home in Florida now while the prices are lower so you'll have your stake in the sun when the time comes. And it's working...they're discussing the ins and outs of buying when they have 6 years to go. Rental? Vacation? Chuck it all now and just have fun in the sun? I'm crossing my fingers that one of these discussions yields a "let's go for it". I've already gotten the 'compound' started, when one friend retired from Miami to Vero in June. I hope to 'import' more!
So, in honor of friendship, and having nothing to do with real estate whatsoever, here is the email I received today from yet another old friend on How to Stay Young...
1. Try everything twice.
On one woman's tombstone she said she wanted this epitaph:
"Tried everything twice.loved it both times!"
2. Keep only cheerful friends.
The grouches pull you down.
(Keep this in mind if you are one of those grouches!)
3. Keep learning:
Learn more about the computer, crafts, gardening, whatever.
Never let the brain get idle.
'An idle mind is the devil's workshop.'
And the devil's name is Alzheimer's!
4. Enjoy the simple things.
5. Laugh often, long and loud.
Laugh until you gasp for breath.
And if you have a friend who makes you laugh, spend lots and lots of time with HIM/HER.
6. The tears happen: Endure, grieve, and move on.
The only person who is with us our entire life, is ourselves.
LIVE while you are alive.
7. Surround yourself with what you love:
Whether it's family, pets, keepsakes, music, plants, hobbies, whatever.
Your home is your refuge.
8. Cherish your health:
If it is good, preserve it.
If it is unstable, improve it.
If it is beyond what you can improve, get help.
9. Don't take guilt trips.
Take a trip to the mall, even to the next county, to a foreign country,
but NOT to where the guilt is.
10. Tell the people you love that you love them, at every opportunity...
and then say it over again.
I just got to spend nearly 6 days with a woman I've known for more nearly 40 years. We were young then, she younger than I, and idealistic to the max. We weathered the storms in both of our lives, the losses of her parents, my marriage, our innocence. We've triumphed with moves to distant climes, new relationships, jobs, marriages, and family stresses. And we're still friends...silly girls giggling at side jokes, sharing the old memories and telling tales, making new ones.
Like any good friend, I'd love to have all my closest friends living right near-by. so naturally during her visit I did show her a house or two that might work if retirement to Florida was at all appealing to her or her totally agreeable husband. I'm planting the seed...buy a home in Florida now while the prices are lower so you'll have your stake in the sun when the time comes. And it's working...they're discussing the ins and outs of buying when they have 6 years to go. Rental? Vacation? Chuck it all now and just have fun in the sun? I'm crossing my fingers that one of these discussions yields a "let's go for it". I've already gotten the 'compound' started, when one friend retired from Miami to Vero in June. I hope to 'import' more!
So, in honor of friendship, and having nothing to do with real estate whatsoever, here is the email I received today from yet another old friend on How to Stay Young...
1. Try everything twice.
On one woman's tombstone she said she wanted this epitaph:
"Tried everything twice.loved it both times!"
2. Keep only cheerful friends.
The grouches pull you down.
(Keep this in mind if you are one of those grouches!)
3. Keep learning:
Learn more about the computer, crafts, gardening, whatever.
Never let the brain get idle.
'An idle mind is the devil's workshop.'
And the devil's name is Alzheimer's!
4. Enjoy the simple things.
5. Laugh often, long and loud.
Laugh until you gasp for breath.
And if you have a friend who makes you laugh, spend lots and lots of time with HIM/HER.
6. The tears happen: Endure, grieve, and move on.
The only person who is with us our entire life, is ourselves.
LIVE while you are alive.
7. Surround yourself with what you love:
Whether it's family, pets, keepsakes, music, plants, hobbies, whatever.
Your home is your refuge.
8. Cherish your health:
If it is good, preserve it.
If it is unstable, improve it.
If it is beyond what you can improve, get help.
9. Don't take guilt trips.
Take a trip to the mall, even to the next county, to a foreign country,
but NOT to where the guilt is.
10. Tell the people you love that you love them, at every opportunity...
and then say it over again.
Sunday, July 5, 2009
Her 4 and 1 of my own...Constants in Real Estate
Ilyce Glink, who writes a syndicated column, ‘Real Estate Matters’ (distributed by Tribune Media Services, Inc.), wrote about some constants in the ever changing real estate market. (http://www.thinkglink.com/article/2009/06/26/the-more-things-change-the-more-things-stay-the-same-location-location-location)
The article is so good I've decided to quote her here and to add come comments of my own.
Her 1st unchanging concept is “Real Estate Agents are still a Good deal for home buyers”. She goes on to describe that knowledge of the neighborhoods, shopping, schools, government, etc., plus experience is some of what a real estate agent brings to the table. And she stresses the benefit of “finding a smart, highly qualified real estate agent to assist you in your purchase…”, even when buying from a builder in a new home community.
I add here that ‘highly qualified’ is important and even though we all had to start somewhere, don’t entrust the purchase or sale of your property to you friend or relative just because they’ll cut you a deal, to an agent working outside their home territory, or to a brand new licensee unless they are working under strict supervision.
For #2, Ilyce Glink says “You’ll get the best loan if you shop around”. She advices that buyers should talk with at least 3 or 4 different types of lenders when looking for a mortgage and stresses the need for an explicit breakdown of all costs associated with the loan to better understand what you’re getting into. And, she briefly mentions that getting preapproved for a loan is far better than just being prequalified.
My additional thoughts are that you should work with someone you can see, meet, and is trusted and recommended by others. One of the biggest hurdles in every sale, outside of price negotiations with the seller, is working with the mortgage lender who is responsive and approachable. If they are only a voice on the phone or an email presence, rethink your choice, no matter how attractive their rates and terms might be.
Ilyce’s # 3 constant is “Home prices may rise and fall, but maintaining a home isn’t cheap”. She then emphasizes the need for a professional home inspection and warns buyers to be mindful of repair and general maintenance costs when making purchase offers. BRAVO, Ilyce!
In my experience I’ve found that some buyers develop an emotional attachment to a property without consideration for the time, energy and money it will take to maintain and/or restore it. In my July newsletter (http://realtytimes.com/c/BonitaBellCoulson ) I wrote about the absolute need for inspections of all types and the benefits to buyers when using the FAR-BAR “As-Is Contract for Sale and Purchase”.
Ms. Glink’s 4th and last concept in the article is that the cliché is true and “It’s still all about location….There’s nothing you can’t change about a house, except its location. So be sure you get to know it before you make an offer”.
I’d like to add here that locations can change, too. I built my home in 1996 in a small community on a cul de sac lot that backed up to acres and acres of fragrant grapefruit groves. It was tranquil and private for 10 years. And then one day the grove was sold to a developer, the trees were ripped out by the roots and a new subdivision was platted. I now have a view over the fence of a road, a lake and acres of sodded lawns. The first house is being built as I write this. I mourn the loss of those peaceful groves, the sweet smelling blossoms and privacy buffer they gave me. My house is now nearly 13 years old and has lost its true ambiance.
And concept #5 from my point of view alone is something I learned from a fantastic Realtor and Instructor from St. Augustine, Marcus Wally. The concept is SWSWSWN. It stands for: Some Will. Some Won’t. So What? Next! It was meant to provide inspiration for Realtors when sellers don’t hire us or when buyers don’t buy anything after months of looking. But it can be inspiring to buyers and seller’s too. Some deals come together and some don’t. The last great real estate deal hasn’t happened. Something else will come along. If it’s meant to be it will be. And don’t take it personally. I have it on a sign in my office…SWSWSWN!
The article is so good I've decided to quote her here and to add come comments of my own.
Her 1st unchanging concept is “Real Estate Agents are still a Good deal for home buyers”. She goes on to describe that knowledge of the neighborhoods, shopping, schools, government, etc., plus experience is some of what a real estate agent brings to the table. And she stresses the benefit of “finding a smart, highly qualified real estate agent to assist you in your purchase…”, even when buying from a builder in a new home community.
I add here that ‘highly qualified’ is important and even though we all had to start somewhere, don’t entrust the purchase or sale of your property to you friend or relative just because they’ll cut you a deal, to an agent working outside their home territory, or to a brand new licensee unless they are working under strict supervision.
For #2, Ilyce Glink says “You’ll get the best loan if you shop around”. She advices that buyers should talk with at least 3 or 4 different types of lenders when looking for a mortgage and stresses the need for an explicit breakdown of all costs associated with the loan to better understand what you’re getting into. And, she briefly mentions that getting preapproved for a loan is far better than just being prequalified.
My additional thoughts are that you should work with someone you can see, meet, and is trusted and recommended by others. One of the biggest hurdles in every sale, outside of price negotiations with the seller, is working with the mortgage lender who is responsive and approachable. If they are only a voice on the phone or an email presence, rethink your choice, no matter how attractive their rates and terms might be.
Ilyce’s # 3 constant is “Home prices may rise and fall, but maintaining a home isn’t cheap”. She then emphasizes the need for a professional home inspection and warns buyers to be mindful of repair and general maintenance costs when making purchase offers. BRAVO, Ilyce!
In my experience I’ve found that some buyers develop an emotional attachment to a property without consideration for the time, energy and money it will take to maintain and/or restore it. In my July newsletter (http://realtytimes.com/c/BonitaBellCoulson ) I wrote about the absolute need for inspections of all types and the benefits to buyers when using the FAR-BAR “As-Is Contract for Sale and Purchase”.
Ms. Glink’s 4th and last concept in the article is that the cliché is true and “It’s still all about location….There’s nothing you can’t change about a house, except its location. So be sure you get to know it before you make an offer”.
I’d like to add here that locations can change, too. I built my home in 1996 in a small community on a cul de sac lot that backed up to acres and acres of fragrant grapefruit groves. It was tranquil and private for 10 years. And then one day the grove was sold to a developer, the trees were ripped out by the roots and a new subdivision was platted. I now have a view over the fence of a road, a lake and acres of sodded lawns. The first house is being built as I write this. I mourn the loss of those peaceful groves, the sweet smelling blossoms and privacy buffer they gave me. My house is now nearly 13 years old and has lost its true ambiance.
And concept #5 from my point of view alone is something I learned from a fantastic Realtor and Instructor from St. Augustine, Marcus Wally. The concept is SWSWSWN. It stands for: Some Will. Some Won’t. So What? Next! It was meant to provide inspiration for Realtors when sellers don’t hire us or when buyers don’t buy anything after months of looking. But it can be inspiring to buyers and seller’s too. Some deals come together and some don’t. The last great real estate deal hasn’t happened. Something else will come along. If it’s meant to be it will be. And don’t take it personally. I have it on a sign in my office…SWSWSWN!
Sunday, June 14, 2009
Remember the Golden Rule, PLEASE!
Recently I was contacted by a prospective buyer from out of the country regarding his desire for a specific type of property coupled with unusual financing needs. We communicated via email quite a few times and I spent hours researching the area for places that would fit his criteria. And I placed calls to 5 different local area lenders regarding his financing issues. I also found agents in other parts of Florida for him to work with, should this county not be to his liking. It was a lot of work, but done to insure that he was comfortable with the information provided. I understand that people working with me on-line don’t know who they are dealing with until there has been some sort of comfort level established. He was incredibly complimentary regarding my professionalism and made arrangements to work with me on his trip to the US in July.
Then just a few days later, I received a call from another local agent asking if I was working with this person and she called him by name. It appears that he had engaged many agents in this very small town in the same search, and that one of the lenders I spoke with on his behalf recognized the circumstances when approached by this other Realtor on the very same issues. The other agent and I discussed the situation and I agreed to pull out since she had already arranged to meet him in Europe in June in his home country, from where, coincidentally, her husband hails.
So I wrote him to relay that since he had arranged to work with agent #2, I would no longer be communicating with him. I explained that we are all independent contractors, working from the same pool of listings on the MLS. And in this small area of Florida, we are all well acquainted and for the most part, collegial. I wished him well in his search and thought it was the end of the story.
Imagine my surprise to receive an email berating me for not embracing his demand to have many of the best people working on his behalf. He stated that he intended to buy from whoever could show him the right property first. Like this business is one big contest with a ticking clock and water pit below for whoever falls off the log!
This wasn’t a cultural difference or a misunderstanding of how our job is done. This was just an ego-centric wanna-be investor who showed no regard for other peoples time or professional knowledge.
The messages between us ran fast and furious for another few days. But just as it is his prerogative to work with whomever and as many agents as he chooses, as a business woman it is my prerogative to not work with those who do not show a level of loyalty from the start. So I fired him.
I’m writing this now to clarify for anyone who doesn’t already know the process, but each real estate agent is their own business, regardless of what company name is on their card. We work at brokerages that give us a desk and services for a fee and we share out commissions with the broker of that firm when a sale occurs.
I do not get paid any hourly wage or weekly draw for my time, talents, or knowledge, nor for the advertising and marketing, technology and services, education tuitions, materials and gasoline that I use to do this job properly. Everything I do is at my expense. And I have no guarantee of recouping those costs unless a buyer buys or a seller sells.
In order for me to have the buyer or seller’s best interest in the forefront of my mind each day, I must have some sense of loyalty from them. For me to continually put myself and my money out there, I have to know that I’m not being ‘played’.
NO, it's not OK to withhold that you’ve already contracted with a builder and are using me just to see if you’ve gotten a good deal. NO, it's not OK to have me spend weeks doing searches and driving you around for days looking at houses and then have you go into an ‘open house’ and buy on the spot. NO, it's not OK to call me for a free market analysis when you have no intention of selling or you planned all along to sell it yourself without my help. NO, it's not OK to work with me one day and another agent in town the next. NO, it's not OK to make appointments with me and not show up. NO, it's not OK to have me show you properties you cannot afford and have no intention of buying. NO, it's not OK to have me show you homes and then have your relative who's licensed, but lives in another area, write up the offer. NO, it's not OK to blame me for your house not selling when it's you who won't accept that the market has changed and prices are down. No, it's not OK to have me show you a house because your agent is too busy that day.
NO, it's not OK to waste my time!
I am good at what I do because I’m focused on what each client needs and dedicated to providing them with really good service. In return, I expect loyalty.
Please remember the Golden Rule!
Then just a few days later, I received a call from another local agent asking if I was working with this person and she called him by name. It appears that he had engaged many agents in this very small town in the same search, and that one of the lenders I spoke with on his behalf recognized the circumstances when approached by this other Realtor on the very same issues. The other agent and I discussed the situation and I agreed to pull out since she had already arranged to meet him in Europe in June in his home country, from where, coincidentally, her husband hails.
So I wrote him to relay that since he had arranged to work with agent #2, I would no longer be communicating with him. I explained that we are all independent contractors, working from the same pool of listings on the MLS. And in this small area of Florida, we are all well acquainted and for the most part, collegial. I wished him well in his search and thought it was the end of the story.
Imagine my surprise to receive an email berating me for not embracing his demand to have many of the best people working on his behalf. He stated that he intended to buy from whoever could show him the right property first. Like this business is one big contest with a ticking clock and water pit below for whoever falls off the log!
This wasn’t a cultural difference or a misunderstanding of how our job is done. This was just an ego-centric wanna-be investor who showed no regard for other peoples time or professional knowledge.
The messages between us ran fast and furious for another few days. But just as it is his prerogative to work with whomever and as many agents as he chooses, as a business woman it is my prerogative to not work with those who do not show a level of loyalty from the start. So I fired him.
I’m writing this now to clarify for anyone who doesn’t already know the process, but each real estate agent is their own business, regardless of what company name is on their card. We work at brokerages that give us a desk and services for a fee and we share out commissions with the broker of that firm when a sale occurs.
I do not get paid any hourly wage or weekly draw for my time, talents, or knowledge, nor for the advertising and marketing, technology and services, education tuitions, materials and gasoline that I use to do this job properly. Everything I do is at my expense. And I have no guarantee of recouping those costs unless a buyer buys or a seller sells.
In order for me to have the buyer or seller’s best interest in the forefront of my mind each day, I must have some sense of loyalty from them. For me to continually put myself and my money out there, I have to know that I’m not being ‘played’.
NO, it's not OK to withhold that you’ve already contracted with a builder and are using me just to see if you’ve gotten a good deal. NO, it's not OK to have me spend weeks doing searches and driving you around for days looking at houses and then have you go into an ‘open house’ and buy on the spot. NO, it's not OK to call me for a free market analysis when you have no intention of selling or you planned all along to sell it yourself without my help. NO, it's not OK to work with me one day and another agent in town the next. NO, it's not OK to make appointments with me and not show up. NO, it's not OK to have me show you properties you cannot afford and have no intention of buying. NO, it's not OK to have me show you homes and then have your relative who's licensed, but lives in another area, write up the offer. NO, it's not OK to blame me for your house not selling when it's you who won't accept that the market has changed and prices are down. No, it's not OK to have me show you a house because your agent is too busy that day.
NO, it's not OK to waste my time!
I am good at what I do because I’m focused on what each client needs and dedicated to providing them with really good service. In return, I expect loyalty.
Please remember the Golden Rule!
Saturday, May 30, 2009
The Good Scout is Always Prepared
Who says Florida doesn't have seasonal changes? Of course we do. The standing joke is that we have 'Tourist Season' in place of Winter. And June 1st is our marker for the beginning of 'Hurricane Season'...UGGGG!!! Well, that can be good news, too.
This is the opportunity for everyone living in range of tropical storms to gather in supplies, clean up the yard and make a plan. It's all about being prepared.
Florida isn't the only place bothered by these nasty weather fronts, but it is the state that everyone seems to think of first when the tropical depressions start to swirl, probably because the whole dang state dangles out there in the waters. We've had lots of practice dodging those bullets...and then sometimes we didn't get by unscathed. But the weather knows no boundaries and all the Atlantic and gulf coastal states, including those in New England, have had their share of disruption in the past. So we're not alone in this, but maybe, just maybe, we're better versed in how to prepare 'just in case'.
The National Hurricane Preparedness Center has an amazing website that details everything from the basics and hurricane history to marine safety, wind speeds and forecasts. Click ont his link or copy and paste it to your browser http://www.nhc.noaa.gov/HAW2/english/disaster_prevention.shtml and you'll be on the section of that site called "Be Prepared".
In the meantime I, and many others, will be sprucing up the yard to eliminate dead branches and palm fronds; washing windows and dusting off the storm shutters, making certain that the hardware is all there if it's needed; loading up on batteries and non-perishable food stuffs, water jugs; locating the portable radio, fans, camp cooking supplies; as well as making a plan for departure, if need be.
It's just another change of season, like when the first snowfall sends drivers in the North rushing to get those snow tires on. The 1st of June alerts us to be prepared, 'just in case'.
I wish you all a calm and peaceful 'season' and think the best we can all hope for is that no storms touch the shores of the US and all stay out to sea. That way we can have a giant 'canned food' buffet on December 1st when Tourist Season begins again!
This is the opportunity for everyone living in range of tropical storms to gather in supplies, clean up the yard and make a plan. It's all about being prepared.
Florida isn't the only place bothered by these nasty weather fronts, but it is the state that everyone seems to think of first when the tropical depressions start to swirl, probably because the whole dang state dangles out there in the waters. We've had lots of practice dodging those bullets...and then sometimes we didn't get by unscathed. But the weather knows no boundaries and all the Atlantic and gulf coastal states, including those in New England, have had their share of disruption in the past. So we're not alone in this, but maybe, just maybe, we're better versed in how to prepare 'just in case'.
The National Hurricane Preparedness Center has an amazing website that details everything from the basics and hurricane history to marine safety, wind speeds and forecasts. Click ont his link or copy and paste it to your browser http://www.nhc.noaa.gov/HAW2/english/disaster_prevention.shtml and you'll be on the section of that site called "Be Prepared".
In the meantime I, and many others, will be sprucing up the yard to eliminate dead branches and palm fronds; washing windows and dusting off the storm shutters, making certain that the hardware is all there if it's needed; loading up on batteries and non-perishable food stuffs, water jugs; locating the portable radio, fans, camp cooking supplies; as well as making a plan for departure, if need be.
It's just another change of season, like when the first snowfall sends drivers in the North rushing to get those snow tires on. The 1st of June alerts us to be prepared, 'just in case'.
I wish you all a calm and peaceful 'season' and think the best we can all hope for is that no storms touch the shores of the US and all stay out to sea. That way we can have a giant 'canned food' buffet on December 1st when Tourist Season begins again!
Sunday, May 3, 2009
ONLY Work with Local Agents
I receive calls from out-or-area real estate professionals at least two or three times a week. Most often they are offering me a referral to a buyer or seller in Indian River County. But recently those out-of-area broker/agent calls, seeking some basic information on the area and our property sales, have increased. Why? Because they do not have access to our local MLS and come begging for data on certain communities and subdivisions in this county. They are attempting to work with buyers, mostly investors, who want 'deals' and see Indian River County as the place to buy. But sometimes what they're buying is pretty scary...all because the real estate broker they're working with doesn't know this territory well enough to help them to make educated decisions.
Here, like everywhere else, we have a significant number of partially-finished developments, many in various stages of the foreclosure process. Prices in those communities have plummeted and the majority of properties for sale in them are short-sales or foreclosures. Those homes may or may not be good buys. There's plenty of 'downside' to owning a property in a neighborhood that's in financial collapse, mostly occupied by renters, and with many vacant lots left to fill.
A local Realtor can help buyers make better decisions based on their comprehensive knowledge of the area. I don't advise anyone to work with a Realtor who doesn't live and work in the area where the property is located.
If you're a property owner, sincerely seeking to get your home, land or condo sold, hire an agent with real knowledge of the community where that property is located. That way you'll get more accurate and up-to-date information on pricing and other issues effecting the market, and the property can be properly marketed and shown. There's nothing worse than listings that are not able to be shown because the agent isn't within a quick drive or doesn't have the correct directions, photos or property details to accommodate the buyer prospect. If some of the property owners here knew what poor service was being given by the agent they've hired, they would be appalled. I am often unable to show homes to my buyer clients due to lack of response or incorrect information from an out-of-area listing agent.
And for those of you looking to buy a property, work with a local agent and save yourself the trauma of driving around with someone who might have a GPS but can't tell you enough about the community once they get you there. They don't know the school district, the shopping areas, the county government issues or any of the rest of what can and could effect your purchase.
Do yourself a favor and only work with a local agent. If your sister, cousin or neighbor is a Realtor in another area and bugging you to work with them instead, have that person give a local agent a call and offer you up (sounds like a sacrifice, right) as a referral. Your relative or friend can collect a sizable referral fee if a sale occurs (yes, we are allowed to pay a portion of the commission earned to licensed real estate professional who supplies the name of the buyer or seller). And you are better served.
Just ask the countless buyers who are now stuck with properties in failing communities that they purchased long after the development started to fail. They weren't given all the information available...because it wasn't available to the out of area agent they worked with. I get those calls now, too, from people deep 'under-water', strapped with properties worth way less than what they recently paid. I'm always happy to try to help them, but often I'm biting my tongue, trying not to say "You should have called me before you bought it".
Here, like everywhere else, we have a significant number of partially-finished developments, many in various stages of the foreclosure process. Prices in those communities have plummeted and the majority of properties for sale in them are short-sales or foreclosures. Those homes may or may not be good buys. There's plenty of 'downside' to owning a property in a neighborhood that's in financial collapse, mostly occupied by renters, and with many vacant lots left to fill.
A local Realtor can help buyers make better decisions based on their comprehensive knowledge of the area. I don't advise anyone to work with a Realtor who doesn't live and work in the area where the property is located.
If you're a property owner, sincerely seeking to get your home, land or condo sold, hire an agent with real knowledge of the community where that property is located. That way you'll get more accurate and up-to-date information on pricing and other issues effecting the market, and the property can be properly marketed and shown. There's nothing worse than listings that are not able to be shown because the agent isn't within a quick drive or doesn't have the correct directions, photos or property details to accommodate the buyer prospect. If some of the property owners here knew what poor service was being given by the agent they've hired, they would be appalled. I am often unable to show homes to my buyer clients due to lack of response or incorrect information from an out-of-area listing agent.
And for those of you looking to buy a property, work with a local agent and save yourself the trauma of driving around with someone who might have a GPS but can't tell you enough about the community once they get you there. They don't know the school district, the shopping areas, the county government issues or any of the rest of what can and could effect your purchase.
Do yourself a favor and only work with a local agent. If your sister, cousin or neighbor is a Realtor in another area and bugging you to work with them instead, have that person give a local agent a call and offer you up (sounds like a sacrifice, right) as a referral. Your relative or friend can collect a sizable referral fee if a sale occurs (yes, we are allowed to pay a portion of the commission earned to licensed real estate professional who supplies the name of the buyer or seller). And you are better served.
Just ask the countless buyers who are now stuck with properties in failing communities that they purchased long after the development started to fail. They weren't given all the information available...because it wasn't available to the out of area agent they worked with. I get those calls now, too, from people deep 'under-water', strapped with properties worth way less than what they recently paid. I'm always happy to try to help them, but often I'm biting my tongue, trying not to say "You should have called me before you bought it".
Thursday, April 30, 2009
Vero Beach City Utilities vs. FPL
Ever wonder what the City of Vero Beach was doing as the middle-man for electric services? Well, it's to make $$$$! And it's going so well that they can pay dividends to the stockholders. Those stockholders, the city and it's residents, add up to only 39% of the electric accounts within the city limits. 61% of the City of Vero Beach electric customers are OUTSIDE of the city. and for that, they pay over 21% MORE for their electric than if they were serviced by FPL!
There is a growing push for the city to get out of the electric business altogether, especially since they merely buy and resell it, rather than generate the power. And some would like to give those outside the city limits an opportunity to switch to FPL if they so desire. Others, chiefly city officials on the cash reaping end of this situation, think it's all just fine the way it is. And get this, those outside the city limits have no voting rights on the issue, even it were to come to a city-wide referendum.
Whatever side of this you might stand on, it IS something impacting some of the real estate transactions in this county. Now, about 30% of the time, I'm asked what entity provides the electric to the address BEFORE I'm asked the list price of the property! I am continually faced with both buyer and tenant prospects seeking to avoid the excess charges for electric from the City of Vero Beach.
Let's hope that when VB's contract begins on January 1st, 2010 with Orlando Utilities Commission, the new power provider, the bills for those receiving electric service from the City can be negotiated to fall more in line with what it would cost through FPL.
There is a growing push for the city to get out of the electric business altogether, especially since they merely buy and resell it, rather than generate the power. And some would like to give those outside the city limits an opportunity to switch to FPL if they so desire. Others, chiefly city officials on the cash reaping end of this situation, think it's all just fine the way it is. And get this, those outside the city limits have no voting rights on the issue, even it were to come to a city-wide referendum.
Whatever side of this you might stand on, it IS something impacting some of the real estate transactions in this county. Now, about 30% of the time, I'm asked what entity provides the electric to the address BEFORE I'm asked the list price of the property! I am continually faced with both buyer and tenant prospects seeking to avoid the excess charges for electric from the City of Vero Beach.
Let's hope that when VB's contract begins on January 1st, 2010 with Orlando Utilities Commission, the new power provider, the bills for those receiving electric service from the City can be negotiated to fall more in line with what it would cost through FPL.
Monday, April 27, 2009
National Law Week
From April 27 through May 1st, 2009 the Indian River County Bar Assosciation is participating in National Law Week, including 'Ask a Lawyer' which is FREE to all county residents.
Sponsored by the IRC Bar Association, the IRCBA Young Lawyer's Division, and the IRCBA Laywer's Auxilary, there are a number of ways to get free information on legal matters this week.
* Face-to-Face: Monday, April 27th
In the Law Library at the Indian River County Courthouse from 9AM to 5PM, lawyers will be on hand to answer questions covering nearly all areas of the law.
* Live TV show: Wednesday, April 29th
On Comcast channel 28 from 7PM to 9PM phone your questions to a panel of lawyers at 772-564-4800.
* FAMILY LAW CLINIC: Thursday, April 30th
In the IRC Courthouse Law Library from 12 noon to 5PM, lawyers will be available to the public "for assistance and guidance regarding family law issues."
*During the week lawyers will go into local schools to talk about the importance of the law and discuss legal issues
Sponsored by the IRC Bar Association, the IRCBA Young Lawyer's Division, and the IRCBA Laywer's Auxilary, there are a number of ways to get free information on legal matters this week.
* Face-to-Face: Monday, April 27th
In the Law Library at the Indian River County Courthouse from 9AM to 5PM, lawyers will be on hand to answer questions covering nearly all areas of the law.
* Live TV show: Wednesday, April 29th
On Comcast channel 28 from 7PM to 9PM phone your questions to a panel of lawyers at 772-564-4800.
* FAMILY LAW CLINIC: Thursday, April 30th
In the IRC Courthouse Law Library from 12 noon to 5PM, lawyers will be available to the public "for assistance and guidance regarding family law issues."
*During the week lawyers will go into local schools to talk about the importance of the law and discuss legal issues
Saturday, April 25, 2009
The New Sub-Prime
The proliferation of FHA loans that are being pushed on buyers, making them believe they can afford more expensive homes if they get the seller to pay up to 6% of the closing costs, has just gotten out of hand!
Nearly every buyer coming through the door, with a pre-qualification letter from a lender, is expecting the seller to absorb a large portion of the costs traditionally charged to buyers. And why is that? Well, it's really back to the issue of banks not wanting to loan money, whether they got bail-out funds or not. They're looking for government backed loans to carry them through. And they have no difficulty trying to push buyers into properties they really can't afford. Time was when Realtors were blamed for that...now the truth comes out!
FHA loans do ALLOW for up to 6% of the sale price of the home as a CONTRIBUTION from the seller. But now most of the buyers can't afford the homes without this infusion from the seller...and it amounts to blackmail. A contribution is something traditionally considered to be voluntary. But the way the banks are getting hold of the borrowers and morphing their buying power puts the seller into a situation that's anything but voluntary.
In this terrible market for sellers, where there are loads of homes listed for incredibly low prices, often well below what they cost years before, the sellers are being told to bite the bullet even harder. If they don't accept these conditions then the buyer moves on, looking for someone else who is desperate and will 'cave'.
This practice is painting an untrue picture of actual sales prices. If the seller is forced to give the buyer 6% back on the sale price, is it fair to report the full contract price in the county records and to charge the seller for title insurance and transfer tax on the deed at the full price? This misrepresentation just skews the tax rolls and inflates the recorded prices. If you look up past sales and think a particular home sold for $200,000, think again. If the seller had to give back 6% or lose the deal, then the sale price just sank to $188,000. Do the math at any price point you like. It's a huge chunk for sellers to give up, especially now.
Haven't we, as consumers, learned out lesson yet? I know that giving each other a helping hand or a leg up is part of the wonderful American spirit. But this 6% 'shakedown' isn't right. Approximately 3% will usually cover the buyer's necessary closing costs. Most sellers understand that and, if they are able, are often willing to go that far to help make a deal come together. But why 6%? What's the other 3% for? The other 3% is going toward covering all the costs built into the loan...all those charges due to the lenders...who keep this charade going!
It's the new 'sub prime'.
Nearly every buyer coming through the door, with a pre-qualification letter from a lender, is expecting the seller to absorb a large portion of the costs traditionally charged to buyers. And why is that? Well, it's really back to the issue of banks not wanting to loan money, whether they got bail-out funds or not. They're looking for government backed loans to carry them through. And they have no difficulty trying to push buyers into properties they really can't afford. Time was when Realtors were blamed for that...now the truth comes out!
FHA loans do ALLOW for up to 6% of the sale price of the home as a CONTRIBUTION from the seller. But now most of the buyers can't afford the homes without this infusion from the seller...and it amounts to blackmail. A contribution is something traditionally considered to be voluntary. But the way the banks are getting hold of the borrowers and morphing their buying power puts the seller into a situation that's anything but voluntary.
In this terrible market for sellers, where there are loads of homes listed for incredibly low prices, often well below what they cost years before, the sellers are being told to bite the bullet even harder. If they don't accept these conditions then the buyer moves on, looking for someone else who is desperate and will 'cave'.
This practice is painting an untrue picture of actual sales prices. If the seller is forced to give the buyer 6% back on the sale price, is it fair to report the full contract price in the county records and to charge the seller for title insurance and transfer tax on the deed at the full price? This misrepresentation just skews the tax rolls and inflates the recorded prices. If you look up past sales and think a particular home sold for $200,000, think again. If the seller had to give back 6% or lose the deal, then the sale price just sank to $188,000. Do the math at any price point you like. It's a huge chunk for sellers to give up, especially now.
Haven't we, as consumers, learned out lesson yet? I know that giving each other a helping hand or a leg up is part of the wonderful American spirit. But this 6% 'shakedown' isn't right. Approximately 3% will usually cover the buyer's necessary closing costs. Most sellers understand that and, if they are able, are often willing to go that far to help make a deal come together. But why 6%? What's the other 3% for? The other 3% is going toward covering all the costs built into the loan...all those charges due to the lenders...who keep this charade going!
It's the new 'sub prime'.
Let the Games Begin!
Good News ?!?!
Well, here goes... I'm creating this blog site to keep up-to-date on recent events that I believe can effect the local, state and national real estate markets. I'll post commentary every week, sometimes every few days. I hope that this, along with my monthly newsletter, will keep you all informed and maybe even entertained.
OK, so for the first of the commentaries is the news that our revered Dodgertown has been 'leased' to Minor League Baseball for $1 per year, along with their agreement to maintain the facility to the tune of approximately $100,000 per year. The contract was forged for an initial 5 years and is apparently renewable.
Is Minor League Baseball in Vero Beach a good thing? Who knows? Will it draw the interest and loyalty of visitors that came for the Dodgers? Will it be a boon to our ever-so-slow economy? Will it help to stem double digit unemployment here in Indian River County? Will county residents flock to the practice fields to watch and find any enjoyment there again, after decades of the Dodger connection?
There is talk of the golf course being revitalized. It was a shame to let it go in the first place. But now, with the economy slow and fewer visitors showing up during 'season', why do we need another golf course? So that the minor league players can relax on the links, along with those attending the proposed fantasy camps, United Football League practices, umpire training and grounds keeper training programs? Is this all sounding a bit honky-tonk to you, too?
Seems a shame. At a time when the county could have aimed high, going after another Major League team, instead they just aimed. Let's hope that this deal doesn't leave us all out in left field.
Well, here goes... I'm creating this blog site to keep up-to-date on recent events that I believe can effect the local, state and national real estate markets. I'll post commentary every week, sometimes every few days. I hope that this, along with my monthly newsletter, will keep you all informed and maybe even entertained.
OK, so for the first of the commentaries is the news that our revered Dodgertown has been 'leased' to Minor League Baseball for $1 per year, along with their agreement to maintain the facility to the tune of approximately $100,000 per year. The contract was forged for an initial 5 years and is apparently renewable.
Is Minor League Baseball in Vero Beach a good thing? Who knows? Will it draw the interest and loyalty of visitors that came for the Dodgers? Will it be a boon to our ever-so-slow economy? Will it help to stem double digit unemployment here in Indian River County? Will county residents flock to the practice fields to watch and find any enjoyment there again, after decades of the Dodger connection?
There is talk of the golf course being revitalized. It was a shame to let it go in the first place. But now, with the economy slow and fewer visitors showing up during 'season', why do we need another golf course? So that the minor league players can relax on the links, along with those attending the proposed fantasy camps, United Football League practices, umpire training and grounds keeper training programs? Is this all sounding a bit honky-tonk to you, too?
Seems a shame. At a time when the county could have aimed high, going after another Major League team, instead they just aimed. Let's hope that this deal doesn't leave us all out in left field.
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