Mother & Daughter Blog: October 2007

 Here are the steps from getting ready to buy all the way to closing......

                        so Buyers get a move on and get yourself a new home.

Step 1: Spiff up your credit

Step 2: Start saving for a down payment and closing costs

Step 3: Calculate how much house you can afford

Step 4: Shop for a mortgage

Step 5: Shop for a home

WAIT! Before you start this Step 5: give us a call!

Step 6: Make an offer

Step 7: Sign a contract

Step 7: Take a Close Look at Your House

Step 8: Shop for homeowners insurance

Step 9: Sign papers

(Buyers there are so many really great opportunities out there: Short sales from foreclosures, owner assisted financing, seller incentives, honest financing, bank owned homes, rock bottom prices -- so don't miss out) Get a simple 9 step move to your new home!  Call us if you need good agents in our areas of business. Or look up a good real estate agent.

the Mother and Daughter Realty Team @ Perfect Financial Solutions 866-750-8282

Do you take the 1 step or the 2 step approach to your listings? Do you find that most of the basic information you are trying to share with your sellers are going right over their heads - from fees to fiduciary responsibilities or how to price their home? Did you ever think you were dishing out too much information for one sitting? Too much for the sellers to absorb it all? 

Someone said if its too much for now, save some for later........ this rule of thumb might work in this situation.  If you feel you are losing your clients attention.  Save some of the information and come back to them.  I guess there is a careful tip here: Do lose them completely by putting them off, so you'll have to use your judgement here.

The One-Step listing is when you go to the meeting cover everything you need to with the new client and get the listing and off you go to put the listing on the MLS.

The two step listing is when you meet the clients for the first meeting as a primer on the homeselling process.  At the second meeting, you focus on the specific contributions and what makes you different from other practitioners.  This second meeting is a good time to talk about pricing the house right, how to present it, and how you can make life easy for the buyer.

Or ... you can give your sellers the choice --- you might find that most sellers will welcome the two-step approach once it is explained to them.  The tactic may be good at making sure the sellers get all the information you have to offer and it may help them in making a better choice of agent, the price and any other choices put before them.

Some Sellers are not ready or able to consume all the information we have to offer them in one sitting. 

Have you ever felt this and had to go from the One-step to the two-step approach?

the Mother and Daughter Realty Team @ Perfect Financial Solutions 866-750-8282

It is almost Halloween and I find myself asking that question again.... what will I do this Halloween to promote my business? 

 I am thinking of doing a flyer - rolling it up and putting it in a little plastic halloween bag with a business card and of course some candy or treats that I know the kids love. 

My strategy is the parents will open the little bag and wolla.... they will see my business card and my flyer with what our mother and daughter team can offer them. Our flyer will of course list all our services and information on how to get in touch with us and we will probably put our featured listing on the flyer as well.

We usually have several visitors on Halloween, from our neighborhood and other nearby neighbors, so it just help me to reach someone that I would otherwise not connect with.

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What are you doing this Halloween to promote your business or will you do anything?

  866-750-8282

I am writing this because it comes with no strings, and it was a request of a great blogger friend of mine Mike Mueller.... I love that he asked me to write and just don't even think about it, just write and write about the good things because the bad ones will be there when I get back.  This made me think that I am going on a trip or something and I like to go on trips.  Kinda like a mini vacation of source!

Well, Mike since your asked starting with your post:  What do you Love about your job? and challenged us to write about what we love about our profession.

Dear Real Estate Profession, I love you -- Let me count the ways!

1. I love my profession because .....it allows me to work on my own, helping others and working as hard as I can (even doing overtime that I do not get paid for), I love that I do not have to answer to another about the hours I put in.  Like this weekend I was sick with a cold (just came on suddenly) and it knocked me down and out until just a few minutes ago and I told myself get up and write the reasons why you love your profession! So here I am with a temptature and a hacking cough with a over stuffed nose, writing about why I love my profession.  So if I was back in the corporate world I would be thinking of how my boss will be mad that I am not going to come in to work tomorrow (Monday) because I am sick (again).And while it sort of makes me feel I am working on my own, I know that there is a code of ethics that I must follow and that keeps me in line and structured.
2. I love my profession because ......I have to answer to myself -- a high standard of accountibility - I thought about how I missed an open house today because I am sick and if that was my corporate boss I'd have some pretty strong questions to answer to him and I might get written up! And it allows me to be me - to be the person that I am and it allows me to come from the heart with my clients.
3. I was thinking that I love my profession because ......I can work in my night time clothes or gee no clothes at all as long as I am working at home (behind closed doors and window blinds closed too). And I get to pretty much pick my hours!
4. I love my profession because .....it requires me to be organized and stick to a plan (the plan is usually be open to anything)!
5. I love my profession because .....real estate is something that I have always wanted to do and I think I'm good at it.  I know that I am sincere and open to learning any thing new that will help promote my business.
6. I love my profession because ......of the people that I have met in this business, just a gang of professionals.... just a gang.
7. I love my profession because .....there is always that thought that a sale will close - even in these trying times and I love closures....
8. I love my profession... because it allows me to handle my own transactions, hands on -- being in the know is one of the things I love to do.
9. I love my profession because... I get to meet and help new clients, old associates and other agents. 
10. OK yeah and I love my profession because .....of the hard work required and rewards that you get by helping others and that my dear is priceless.... Priceless because in helping others I am also helping myself!
11. I love my profession because ......it is fulfilling to me and that helps me to be fulfilling to my clients and their needs.
12. Oh did I mention, I love my profession because.... I like helping my short sale clients.
13. I love my profession because ...this is how I found out about ActiveRain and I love this network and the people and subjects that I have read, learned from and yes even helped others by posting....
14. I love my profession because.... I am good at it and I put my heart in it.

15. I love my profession because....I love working with my daughter as the mother and daughter realty team.  That is my number one reason why by strategetically I put it last for a lasting thought! It allows us to work together and to meet other team players and develope working relationships with them.

This is just off the top of my head reasons why I love my profession.  If there was a reward or something I probably could have kept going on and on...... wink wink

Now I am back to reality!!!!!  Come on Market change, come on clients --call, come on sellers give me listings, come on buyers lets get those offers in, come on profession -- plaster that smile back on my face!!!

the Mother and Daughter Realty Team @ Perfect Financial Solutions 866-750-8282

Red Flags may cause delays or other problems within an escrow and Must be addresses well before the escrow is expected to close...  

 Red Flags Examples:

• Buyer or Seller has been involved in a bankruptcy
• The buyer or seller intends the property in question to be part of a tax deferred exchange
• The property is begin sold because of a divorce
• More than 1 seller and other seller will not sign paperwork
• Seller are recently married
• Using a Power of Attorney  and etc...
• Short Sale
• IRS Tax Lien
• Child Support Tax Lien
• Previous deed transfer without title insurance coverage

Do you know of or have you experienced red flags in escrow that just stopped the closing .... and it seemed it would not continue?  Please share.

the Mother and Daughter Realty Team @ Perfect Financial Solutions 866-750-8282

I have spoken to people that are not having much luck with contacting their lender in an effort to work out a payment plan in order to help them get back on track. They call their bank as soon as they miss a payment and try to put together a forbearance agreement, loan modification, or other repayment plan.    They are running into a great deal of double talk, slow walk, and hold ons -- then to be told.... send in all this information and we will review it and get back to you.  Homeowners who rely on only this option to save their homes must often wait weeks or months for the bank to review their application, finding out at the last minute that they have been turned down and are now facing the sale of their homes at the foreclosure auction.

The foreclosure process still goes on as scheduled (90 days + 21 days then auction).  Some if not most are finding out at the last minute that they are being denied and find auction right around the corner. While attempting a workout program should be the first step for homeowners trying to stop foreclosure, not having a more comprehensive plan will ensure that more foreclosure victims lose their homes than is necessary.

Plenty of homeowners have gone through the lengthy situation of locating, assembling, and submitting all of their personal financial data and having the bank take 1-3 months to "consider" a workout program. In the meantime, the foreclosure victims continue missing mortgage payments, the lender continues accelerating interest, late fees, and court costs, and the foreclosure process continues, as well.

Because the homeowners may be so far behind, or have not completely recovered from their financial hardship, the lender's repayment plan may be too expensive and they do not trust that the foreclosure victims will be able to complete the plan and get their mortgage back on track.

What will you do if they turn you down for the repayment program at the last minute? What will you do if the workout plan is so expensive that you know you will only be able to make one or two payments on it before missing another payment and possibly facing foreclosure again ? What will you do if there is another financial setback during the time of the repayment plan and you have not established a savings plan?

When asked, I am telling my clients to go ahead and put the house on the MLS and let the wheels turn in that direction too, just in case they are turned down by the lender for a work out plan.

What are you telling your clients?

the Mother and Daughter Realty Team @ Perfect Financial Solutions 866-750-8282

I wanted to take this time to pay personal tribute to this month of Breast Cancer Awareness.  I tried to get my pink ribbon on my photo but was not successful at getting that and I did not want this month to pass without me showing my support for this great cause.  As many of you know but I am going to share them again:

Here are Five things to tell your friends about breast cancer:

1. All women can get breast cancer - even those with no family history
2. The two most important factors for breast cancer are being a woman and getting older
3. Women have a high chance of surviving breast cancer if diagnosed early, when the cancer is small and has not spread
4. Reduce your changes of developing breast cancer by engaging in regular physical activity, maintaining a healthy weight, and liiting alcohol intake
5. Get a mammogram every year starting at age 40.  If you notice any breast changes, tell your doctor immediately.

If you want to help contact: Reach to Recovery Program in your area, visit "In my community" at cancer.org, or call the American Cancer Society at 800-227-2345.  HOPE Starts here.

THINK PINK! Favor reminder. 

the Mother and Daughter Realty Team @ Perfect Financial Solutions 866-750-8282

Lets list some of the consequences of a short sale that will help pull the information together and help in getting the head out the sand:  

                                                  What types of problems may come up?

Sale doesn't close - SELLER

• Foreclosure
• Potential servicing of two properties (if seller has acquired a new home or rental)
• Costs of failed escrow
• Time and cost of listing
• Alienation of future client

Sale doesn't close - BUYER

• Loss of other purchase opportunities
• Cost of acquisition loan (fees, appraisal, etc) and due diligence
• Sale of previous residence / need to find a new residence
• Costs of failed escrow
• Alienation of potential client

Sale doesn't close - REAL ESTATE LICENSEE 

• Loss of commission
• Wasted effort
• Loss potential future clients

Sales does close - SELLER

• Tax consequences - foregiveness of debt gain
• Credit consequences - short sale on credit
• Where's my money? Everyone else is getting some!

Still and all with all the above consequences, there is still the need for short sales due to the market situation. 

the Mother and Daughter Realty Team @ Perfect Financial Solutions 866-750-8282

RULE OF THUMB:  It's easy to fall in love and get married but difficult to go through the pain and upheaval of a divorce or separation.  In other words, it's easy to miss warning signs when you're focusing on dollars, cents and filling vacancies. 

Owners keep your eyes and ears on the alert for the kind of tenants you rent to.  You never know when the times may get hard and you may need to tell the tenants that you are in trouble with your property mortgage payments and you will have to sell the property or lose it!

Caution: A perfectly good tenant can turn on you!!!! Once they know that you are having to sell and they are having to move AGAIN... they tend to use the Dr. J/ Mr. H turn on you.  Some might say they will turn into the devil and do you wrong!!!!  You can almost guarantee that they will slow down to stop paying the rent, will be the tenants from hell on letting potential buyers view the home and when they leave (in the middle of the night) they just may end up leaving you with a big mess to clean up, repair and replace! Sometimes they mess up the property after a protential buyer has made an offer and will expect to see the house in the same condition it was in when they made that offer if they end up in escrow! So beware of the TENANTS FROM HELL!

This is certainly one problem you do not need to have while say in the middle of trying to do a Short Sale with the lender or do a quick sale to get what you are asking for the house or any number of scenerios that you may find yourself in.

Of all the mistakes that new landlords make, the most common and costly one involves poor screening of tenants.  There are so many possibilities of getting a tenant from hell for the owner, that it makes sense to do your homework far in advance of getting into contract with a tenant that just may cause you loads of money and headaches.

Here are a few Good tips: to follow:

• You really need to dig and have the applicant fill out a very detailed rental application- that includes calling several references, including the previous landlords.
• Approach the tenant-selection process as you would hiring someone to work for your company.
• Think about the "what ifs beforehand" 
• Some people rent on "gut feelings" about the person but will run a credit check and may find that the tenant  have no credit, But can provide a reasonable explanation. But remember: - tenants who have made a career out of scamming often disappear right before they are evicted or ordered to pay - and you can be left with no rent paid and damages that will cost you a great deal to repair and replace. Get at least three references from former landlords.
• Don't be too anxious to rent your place. This can cause you let your critical judgement slip for a moment.
• Call their employer to verify their salary.
• Do a credit check.
• If you don't have the time or know-how to do your due diligence, pay an expert to do it for you.  The small upfront cost of having someone else do proper screening is peanuts compared with the potential costs of renting to a bad tenant.
• Remember:  A great number of tenants tend not to care about the property they're living in

Do not count on eviction to immediately solve your problem of gettting the tenants out.  Because of current city bylaws and tenant protections, it's hard for a landlord to proceed with an eviction. The process takes months and can be costly in legal bills and loss of rent.

Remember:  Disreputable tenants can live rent-free for six months at a time as they bounce from place to place, and wreaking havoc in the lives of landlords along the way.

Agents beware when a seller has rental property, the tenants can turn into the tenants from hell - right in the middle of your sales transaction!

the Mother and Daughter Realty Team @ Perfect Financial Solutions 866-750-8282

Tips on how to determine Your Offer Price:  When you prepare an offer to purchase a home, you already know the seller's asking price. But what price are you going to offer and how do you come up with that figure?

Determining your offer price is a three-step process.

1. First, you look at recent sales of similar properties to come up with a price range.
2. Then, you analyze additional data, such as the condition of the home, improvements made to the property, current market conditions, and the circumstances of the seller. This will help you settle on a price you think would be fair to pay for the home.
3. Finally, depending on your negotiating style, you adjust your "fair" price and come up with what you want to put in your offer.

Comparable Sales

The first step in determining the price you are willing to offer is to look at the recent sales of similar homes. These are called "comparable sales." Comparable sales are recent sales of homes that compare closely to the one you are looking to purchase.

Specifically, you want to compare prices of homes that are similar in

• square footage
• number of bedrooms and bathrooms
• garage space
• lot size
• and type of construction

If the home you are interested in is part of a tract of homes, then you will most likely find some exact model matches to compare against one another.

There are three main sources of information on comparable sales, all of which are easily accessed by a real estate agent. It is somewhat more difficult for the general public to access this data, and in some cases impossible.

Two of the most obvious information sources are:

• public record and the
• Multiple Listing Service

the Mother and Daughter Realty Team @ Perfect Financial Solutions 866-750-8282