Barb's Blog

Secret to Short Sale Success

2008-08-05T23:30:41Z

The best advise I ever received when dealing with the bank in negotiating a Short Sale is "Don't take NO for an answer". "No" doesn't mean "no", it means not now. There is always someone who will say "Yes". Even if it means recalling the Loss Mitigation Dept. immediately following a phone conversation with a representative that you got nowhere with. Persistence, without obnoxiously bothering everyone who picks up the phone, will bring results.

Occasionally, I hit a wall. Then ask for the manager or the person who heads the department.

Little tricks of the trade like dialing the 5 digit extension number changing the last number until a human actually talks to you.

Then there are the out-sourcedcalls to India where the person on the other end is reading a script, takes all your loan information more than once just to torture you and then transfers you to Customer Service. Refuse to give them the information and ask to be transferred directly to the Short Sale Dept. I always compliment them for their fluent attempt at speaking English when I can actually understand what they are saying.

There have been incidents that there is no way around the systematic routine of going through several transfers before you find the person who can answer your questions. Always pleasantly enjoying the experience, I ask questions along the way to help me understand that particular banks process because they are all different. When I am interested in their job they are more apt to give me the information I need to help me with my job.

Sometimes accidents happen. I was told by a colleague that one time he accidentally pushed option number 2 for Spanish speaking. He decided to wait on the line and after telling the representative what his objective was he found he had actually connected to the only US based office that could easily connect him to the person he needed to talk to. You just never know!

Please share your tips. I would love to hear them. I am always learning.

Support Your Local Tour!

2008-02-17T20:05:00Z

I went on a couple of Realtor Home Tours this week. The tours were well-organized and very professionally run. I was disappointed to see that only about 1/2 of those who sign-up for the tour actually attended. I appreciated the ones that did. This gives me the perfect opportunity to network with my fellow agents and glean ideas from them on how to use their fresh ideas to constantly improve my own business techniques. Maybe no one on the tour had a buyer for any of the homes we visited but it provided both the agents and their clients valuable feedback about their properties and a chance to learn something new from each other. Building relationships with our resource people can also serve to benefit Realtors by special offers, swift and loyal service, and a referral base. Plus, the food was great!

We have Hit BOTTOM!

2008-01-16T20:20:07Z

This is how I see it. . .This is the time to seriously consider making a purchase. The Feds are due to lower the prime interest rate on the 30th of this month to 5.25%. It will take a couple of weeks for this change to effect the bond market which will in turn lower home mortgage rates. The government is doing this to head off a major recession and stop the decline of home values. When this rate is established the price of houses will begin to increase in value once again because monthly payments will become more affordable. Already home builders in the Valley have discontinued their buyer incentive programs and have slightly raised the prices of their newly released models. I hope you see where I'm going with this. Now is the time to act. While you still have some bargaining power as a buyer, I would consider making at least a $20K offer less than list price on a certain property. I know you really like this home and that you would be happy with the purchase once you got moved in. (This was addressed to my non-committal buyer who is waiting for the prime rock bottom time to buy) You will be on your way to building equity!

Let me know what you think out there in AR world!

Seller Concessions - What's you Favorite Flavor?

2007-11-02T16:37:00Z

I am always trying to keep up on the latest real estate marketing strategies. My Managing Broker and I are working on a listing proposal that includes a Seller Concession being made with a full price offer up front as part as of the public remarks on the MLS profile sheet. I have seen some of these promoted on the MLS in the Phoenix metro area as incentives to attract buyers. They come in a variety of flavors. Maybe the seller will pay the first year of HOA fees, possibly the first few months mortgage payments or 3% towards closing costs. Sellers are willing to consent to these concessions with the hope of holding onto a higher than average list price and getting it!

In a market where bargain hunters abound, do you think these kinds of incentives are realistically figured into the bottom line by the buyer? Can they see beyond the list price in bold print? Tell me of your experiences with this marketing concept.

Candy Reels Them In! . . . The Rest of the Story!

2007-10-28T23:10:41Z

I held an Open House today in a condominium complex in an highly trafficed upscale neighborhood of Scottsdale, Arizona. Thinking Sunday afternoon was prime time, I had high expectations of drawing a crowd. To my dissmal dissappointment I only had one neighbor stop by. He was one of the original owners, mind you these units were built in 1964. Every neighborhood has one of these guys. He stopped by to chew the fat, eat all the candy out of my candydish and clue me in on the real estate market trends. First off, I had the property priced way to high (the seller dropped the price $40,000 off the original list price) and told me I would never sell it for that. He continued to inform me that in todays market there were to many homes on the market and to few buyers who could qualify for a mortgage. This situation would cause the value of homes to continue to plummet. After all, he was an expert because he had worked as a commercial mortgage lender (before he retired an eon ago). Then he went on and on about his kids and their nearly perfect FICO scores. . .

Needless to say, I had a very uneventful afternoon. One thing I have learned to do as a real estate professional is to respect the opinions of others and never discount them. I thanked him kindly for his insight as he left with my last piece of candy.

Who really got the sweeter piece today?

The answer to the question is: I DID! Later on that evening, I got a phone call from an agent who had an offer to fax over to me on the condo in Scottsdale. The offer was higher than the last one I had received. The buyer is putting up $5000 in earnest money, 20% down with a conventional loan and on a solidly backed LSR. It's a SWEET DEAL!

Mr. Rogers is welcome anytime at my Open Houses!

Message to Fire Victims included in our ranks. . .

2007-10-23T17:31:30Z

My heart goes out to those who have lost structures and damage to properties in the Southern California area fires. I especially send my heart-felt thoughts to those who are amongst our ranks of Active Rainers. The real estate agents, brokers, lenders, title agencies, home inspectors, handymen and the list goes on and on of those who depend on the real estate market for their livelihood. Please know that this Arizonian is a native Californian and is sad to see such devastation to my birth-land. I truly feel your loss.

Commission Split 50/50?

2007-10-21T20:27:51Z

I am thinking out loud! How is it that the SELLER in a real estate transaction carries the burden of the cost of both sides of the real estate commission? Why isn't it split equally between buyer and seller's agents and distributed at the close of escrow? Wouldn't that help level the financial disparity for both parties allowing for a more active market? Both the buyer and seller enlist a real estate practitioner to negotiate in their behalf and exercise their expertise in securing all legal details of a transaction, then why does the SELLER pay all the commission?

Sign on the dotted line!

2007-10-10T18:26:36Z

I came across an interesting selling technique that goes beyond the box. He called it a Reverse Offer. When an interested buyer visits an Open House or is considering your listing along with another, shortly after present him with an offer, just as a buyer would, from the seller spelling out all the terms of the contract, including the purchase price. Actually receiving a physical document in writing with the buyers name on it may be just the nudge he needs to make a decision.

Has anyone tried this? I would like to know if it works.

Winter Wonderland

2007-10-07T21:26:39Z

With the onset of the winter visitor months, Arizona is the haven for out-of-state residents. The weather has cooled to a pleasant daytime 85 degrees and will only drop about 10 more degrees in the next 8 months. The days are warm and the nights are cool, perfect for many outdoor activities such as, GOLF, tennis, hiking, bike riding, watching the sunrise or experiencing breath-taking desert sunsets. Life doesn't get much better than this! To make life in the Valley of the Sun even better this year, we are hosting the Super Bowl along with various other bowl games and then there is always the TPT golf tournament. This is an invitation to join our fine state for the festivities that are endless. I would love to help you arrange for your accomodations either temporarily or permantly.

Floor Time?

2007-10-04T22:51:01Z

I work in the Corporate Office of Independence Realty Professionals, Inc. in Tempe, Arizona. The designated broker is very pro-active in creating tools for his agents to use in furthering their business. He has put together a lead-generating website, www.Homes4SaleAZ.com to use as a referral network for his agents and is now organizing an advertising campaign to attract prospective buyers into a telephone lead capturing station manned by agents who have signed up for "floor time". I need some feedback as to whether or not this is worth the effort. I am struggling with the thought that this form of marketing is "behind the times". Please let me know if you have had success with this in your office.

Thanks a million!

The Credit HIT on a Short Sale

2007-09-28T13:01:47Z

Foreclosure: Worst 7 years on Credit Report - 4 years recovery FICO drop 200 to 250 points

Deed In Lieu Of Foreclosure: Better 7 years on Credit Report - 3 years for recovery(questionable) FICO drop 150 to 200 points

Short Sale: Best 7 years on credit report - 18 months to 2 years recovery FICO drop 100 to 120 points

Although a Short Sale isn't pretty, it's the best option with minimal consequences, even if the seller walks away with no money and/or financing the difference at an affordable payment.

Where's The Justice?

2007-09-27T21:20:13Z

SHORT SALE SCENARIO

I have a Seller who has gone into Default on their mortgage payments. The current value of the home has dropped 50K below what is owed. They are considering doing a short sale to redeem their credit before more damage is done. After contacting the bank, Suntrust Mortgage, I have been told that they would consider all offers on the home as payment towards the pay-off. The difference, however, would not be forgiven but still owed to the bank. Here is the dilemma: let's just say the bank did forgive the difference and wrote the couple a 1099 for the amount forgiven. They would have to claim it as phantom income on their tax returns and pay 32% back to the government for the gain. Does this make sense? Either way, it seems to be a lose - lose situation. What am I not seeing?

Where's The Justice?

2007-09-27T21:19:50Z

SHORT SALE SCENARIO

Be A Listing Presentation Winner!

2007-09-26T22:23:37Z

One of our fellow Active Rainers, Michael Klijanowicz, responded immediately to my request for marketing strategies that he uses to successfully secure listings even in situation when a possible client is enlisting the presentations of other real estate agents besides himself. This is how he comes out a winner:

1. Step-by-Step Listing Presentation Agenda

2. 10 Step Marketing Plan

3. Questions for potential sellers to find out exactly their real estate expectations and help open discussion to educating them on current market trends, thereby setting a realistic list price.

To contact Michael and receive this valuable information, he can be contacted Michael.Kiljanowicz@longandfoster.com or visit his website at www.IsellMDhomes.com

I hope you don't mind me passing this info along, Mike? It is very helpful. Thank you for being so willing to share.

Scottsdale's OCTOBER Events Calendar

2007-09-17T10:36:33Z

O C T O B E R

October 4-10 Scottsdale Classic Futurity & Quarter Horse Show, Westworld, Tickets: 520-749-9418

October 6 BRIO Faculty Art Exhibit & Sale, BRIO Fine Arts Center, 480-941-8310

October 6 Obesity Walk, Scottsdale Community College, 7-10am, 480-312-2771

October 6-November 17 Music in the Garden Fall Concert Series, Desert Botanical Garden, Tickets:480-941-1225

October 11-14 Heard Museum Film Festival 602-252-8840

October 14 Tour of Scottsdale Cycling Adventure 480-460-5052

October 18 Western Art Walk, Old Town Scottsdale, 7-9pm FREE

October 20-21 Scottsdale Stadium Sleepover, Tickets: 480-312-2856

October 31 Fall Festival, Eldorado Park, 6-9pm FREE

What's your life worth?

2007-09-15T18:51:54Z

As I was crawling down the freeway heading for home yesterday, I noticed the Cadillac Esplanade in front of me was randomly swerving into the left medium only to quickly correct itself. Then it would surge forward followed by slamming on the brakes to come to an abrupt stop. This erratic behavior drew my attention and I peered into the rear window to investigate. The driver had a cell phone propped up on the steering wheel where he was texting feverishishly. He would laugh and continue on again. I am positive the person who was receiving his messages was fond of him. He was quite enjoying the conversation. How would the person on the receiving end feel if all of a sudden the messages stopped and the phone became silent? How would that person feel by distracting the driver for a split second he crossed over the medium plummeting into oncoming traffic killing himself and possibly someone else? We, as real estate agents, are trying to take advantage of every minute. It is easy to pick up the cell phone while driving to make calls that we just haven't had a chance to get to all day. It maybe a course of business for you. Please consider the risk you take.

Please invest the minimal cost of a BlueTooth and talk hands-free. There are people depending on you. They love you. Your life is worth it!

Dear Miss Manners,

2007-09-13T10:01:13Z

In the real estate world when fudiary responsibility is so emphasized as a given to our clients, do we return the same courtesy to our fellow agents? Standards are set by the National Association of Realtors as a Code of Ethics to spell out our duties and conduct to one another. This is how I read Article 16:

ROBBERS (Realtors) shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other ROBBEES (Realtors) have with clients.

It's all about respect, trust and professionalism treatment to our fellow Realtors. Take a good hard look at your practices and see if the GOLDEN RULE needs a little polishing!

Mentality Adjustment

2007-09-10T22:42:33Z

I feel like I just got pistol-whipped by a buyer this weekend! I have a reasonably priced condo in a centrally located Phoenix neighborhood listed, that after being on the market for 12 days a buyer made an offer. He offered $15,000 below asking price with $500 earnest money, wants seller to pay 6% of the closing costs, and have the seller pay for the appraisal. It was everything I could do to stop my seller from turning on me for presenting such an offer. Don't shoot the messenger! A return bullet of diplomacy fired at the brain helped bring the seller to his senses. What do you have in your arsenal to take care of these situations? Is there any way to control these random acts of buyer apathy?

Buyer's Revenge

2007-09-08T11:32:39Z

Buyer's are feeding off the glut of properties on the market. For those who restrained themselves during the real estate feeding frenzy that drove home prices to new caloric highs are now feasting on the skinny seller who is suffering from stretch marks left by his quickly deflating bargaining power. "In a lot of communities, smart shoppers can actually get more house for the same money than they could a year or two ago" says Sid Davis, the author of A Survival Guide for Buying a Home. How can we, as real estate practioners, best negotiate in the best interest of our buyer's and seller's? I welcome your comments!

Scottsdale REALTOR Home Tour BBQ

2007-08-15T22:52:02Z

Focus On Fall to get back into the real estate rhythm by attending the Scottsdale Realtor Home Tour put on by Independence Realty Professionals. All agents and their guests, residents, and interested parties are invited to participate, Wednesday, September 12th, to view Scottsdale's finest showcase properties. Meet at the Scottsdale Independence Realty Professionals Scottsdale office, 9449 N. 90th Street, Suite 102, Scottsdale, AZ 85258 at 9:00 am promptly. Each home will be exquisitely displayed and formally visited. Tour will conclude at the Rio Mountain Estates gated-community situated in the beautiful high desert of the Rio Verde foothills with a complimentary BBQ Luncheon.

To submit listing for tour or R.S.V.P. attendence, please contact Barbara Merrill Barb@BarbMerrill.com

Please plan to attend the full tour. Transportation will be arranged.

STOP the Madness!

2007-08-04T12:49:42Z

ATTENTION fellow real estate agents of Arizona! If you have money to burn, there is a worthless marketing campaign out there just for you. It might seem like a small investment to satisfy your sellers with absolutely no return. I'm refering to the endless array of email flyers about numerous listings that fill my inbox every night. Every morning when I sit down at my computer the first thing I do is empty my inbox with a big fat KABOSH on the delete key. We are in the business to make money not give it away, especially in this market. Please be more resourceful with the use of your money and time. It is time to go back to the old fashion practice of building relationships and using creative imaginations to attract visitors to actually step foot into the properties we have listed. I have faith in the quality of individuals involved in this industry. Strive for a higher level of professionalism. You can do it!

LIVE EARTH! Green in Arizona

2007-07-12T20:54:23Z

That's right! Green as in money, green as in golf courses and green as in energy efficient alternatives for desert living! The state of Arizona is going green! Those alternatives are right under our feet. With the cost of energy rising as fast as heat off the desert floor, it only makes sense (cents) to build below ground. Basements are not just for the mid-West anymore they have a significant contribution to make in the Southwest. With land becoming more expensive and less available in the metro area, builders are starting to notice the value of building down. However, only 20 - 30% of Valley homes utilize this valuable resource. Basements no longer take on the dingy dungeon atmosphere that go with their reputation. Today they are built with 9 foot ceilings, expansive window wells to allow for natural light, outside access complete with patio areas (imagine even a water feature!), exterior private staircase and feature the better-than-being-there home movie theatres. Who wouldn't want a basement? The cost to maintain is minimal and adds valuable square footage. It's easy being GREEN!

What Goes Around Comes Around

2007-07-08T00:15:10Z

"Nice job guys!" as quoted by Yahoo.com in their explanation of what builders, mortgage, and the resale real estate industries have done to flatten the real estate market reputation in the media. They have deflated its value in the economy. It just isn't a quick 'n easy fix 'n flip market as it was a couple of years ago. No instant gratification here! However, let me remind everyone that real estate is the essential safe investment over the long term. Real estate has a consistant cycle. When there is an over-abundance of available houses for sale there will be downward pressure on sales prices. As homes are consumed, competition intensifies for the dwindling reserve thus sending home prices into orbit. More homes are built or dumped back into the market, thus creating an over-abundance, and on it rolls. Simply put, if you understand that, you understand real estate. Those who coordinate buying and selling to best profit from this ever- turning cycle have the greater advantage. My final words, "Rock n' Roll guys!"

Could the World be FLAT?

2007-07-04T09:57:32Z

With summer upon us here in Arizona, like most outdoor enthusiasts, I turn indoors to reshift my priorities into an alternative source of aspiration. I have to admit, I love real estate! I was disappointed this past Sunday when I read the article in the Arizona Republic proclaiming that real estate is flat. I am here to emend that stale term and suggest that it is round! In fact it is so round, it has been known to bounce around all over, depending on the location, price and/or age of property. My experience with real estate in the state of Arizona is that the only constant flat characteristic is that it will change. There is plenty of activity out there. However, this round real estate market does present it's challenges. Please share your triumphs and difficulties to improve the image of our otherwise shapeless real estate market.

Just call me Ms. "Bill" Merrill!