Bill's Blog

Short sales....the real story

Bill Fiore (Carlson GMAC) — Mon, 28 Apr 2008 19:42:54 -0500

You have a client who bought a house with less than 5% down a couple of years ago and now they need to sell. It may be very likely that they now owe more on the property than it is worth in today's market. "No problem" you say "We'll just look to do a short sale."

Hold on! You may be missing the essential elements that will qualify your client as a candidate for a short sale. It is not enough just to be "upside down" on a property, you must also qualify as a hardship. If you owe more on a property than it is worth BUT still have the ability to make the payments (and in fact are current on the payments) your lender will probably not agree to a short sale. The condition of hardship is usually demonstrated when a person loses the ability to make payments (lay off, illness, financial loss) and is at least three months in arears. If your client's profile does not contain these elements, they probably will not be a candidate for a short sale. In fact, they may simply be somebody who made (what is now) a bad deal and is stuck with it.

The good news is......

Bill Fiore (Carlson GMAC) — Thu, 13 Mar 2008 12:52:11 -0500

Despite the gloom and doom of the nightly news reports, there are several bright spots in the real estate market, one of which is below.

This is a GREAT time for first time home buyers!

They do not have to sell a home in order to buy.
The large home inventory affords buyers several properties to choose from.
Selling prices continue to be at the most affordable levels in recent years.
Many sellers are facing conditions that make them extremely motivated to close transactions.
Interest rates are low, with many wonderful programs available to qualified buyers.

Recently, I have worked with several first time home buyers. In addition to providing an active market, these clients were emotionally rewarding to work with. They were appreciative of the advise and service I provided and I loved to watch their enthusiasm as they embarked on a new stage of life. These have been true win-win transactions.

Fear Factor. It's not just a Game Show!

Bill Fiore (Carlson GMAC) — Sun, 09 Mar 2008 07:53:07 -0500

There is (or was) a reality game show called Fear Factor. It gathered together a group of contestants and the host challenged them to a series of risky tasks. The contestants were eliminated one at a time until the winner was determined.

The new Fear Factor is the nightly news. Lately every evening when I sit down and turn on one of the national news channels all I see and hear are alarming real estate reports. It seems not to matter which broadcasting company I watch, the news is all the same. The housing market is collapsing. Record foreclosures are forcing people out into the streets. Home sale prices are spiraling downward.

The reports are doing the same as the original Fear Factor. One by one prospective clients are being scared out of the game. The real scary thing is that as these reports continue to be pumped into everyone's mind, they will come true. If the media drives enough potential buyers and sellers to the sidelines all their reports will come true.

I remember after 9/11 many people were asked if that horrible act would change their travel or work patterns. As a country we answered "NO". It is time we showed the same type of courage and not allow these negative reports to change our plans. If we as a nation are able to do this, if we refuse to be scared to the sidelines, the real estate crisis will pass quickly. If we heed the naysayers and shrink to the sidelines, the reports of disaster will come true. Actions (not news reports) control the real estate industry. Lets see some action!

Teamwork - the key to successful transactions

Bill Fiore (Carlson GMAC) — Fri, 29 Feb 2008 07:33:15 -0600

Everyone has heard the horror stories of transactions that failed for any one of many reasons. Financing did not get approved, inspections went bad, the buyers or sellers circumstances changed or an issue developed that could not be resolved. One of the most effective deterrents to avoiding these transaction difficulties is the development of a strong and efficient team.

I'm fortunate that my affiliation with Carlson GMAC provides me the foundation for forming such a team. We are able to provide our clients with many in-house services (if they choose to use them) that smooth the process. We can offer everything from financing to Home Warranty programs to Title Insurance. Real estate studies report that transactions where financing is done through an in-house source are more likely to close than transactions where the buyers use an outside lender. We are very fortunate to be able to offer the programs of GMAC, one of the country's largest lending institutions. Additionally, we are supported by highly skilled administrative assistants who are able to spot problems with paperwork and many times resolve them before they impact the transaction and/or closing.

However, the most important part of my team is my wife Linda, also a Carlson agent We are two very different individuals, who provide our clients with two very different skill sets. My strengths are technology, negotiation, numbers and process. Linda provides vision, communication and client development. It is wonderful to work with someone who is able to provide a perspective that you may not see. It is this simple fact that is the real strength of our team.

I would recommend prospective buyers and sellers seek out agents that can provide them with this type of two-for-one experience. I would also encourage other agents to form similar teams with their colleagues. They would quickly see the benefits for both their clients and business.

Get off of the bench and into the game!

Bill Fiore (Carlson GMAC) — Fri, 01 Feb 2008 15:03:02 -0600

"Put me in Coach! I'm ready to play!"

As a former high school football coach, I heard those words from eager, young athletes many times.

As a real estate agent in Springfield, MA I rarely see this type of enthusiasm from prospective buyers contemplating entering today's real estate market. Instead I hear, "I'm waiting for the market to reach the bottom", and "I'm going to see what happens with interest rates." or my favorite "The experts say this is not a good time to enter the market."

Could you imagine one of those young athletes saying "I'm sorry Coach but I don't think the timing is right for me to enter the game."? NO! They had courage, drive and conviction. Today's buyers need those same qualities AND if they display them they will reap the reward$.

RIGHT NOW is the time to enter the game and below are some compelling reasons.

Mortgage rates are approaching record lows.

The amount of inventory presents buyers with many home choices and often against no competition (remember bidding wars).

Today sellers whose homes have been on the market for many days are highly MOTIVATED to negotiate.

The longer you wait, the longer it will take for you to have the home you want

Lastly, if you wait for the bottom of the market, you won't know it has come until prices start to go back up!

So....GET OFF THE BENCH AND GET IN THE GAME!

Real Estate and the Twenty Dollar Dinner

Bill Fiore (Carlson GMAC) — Sun, 04 Nov 2007 11:07:43 -0600

What does real estate have to do with a twenty dollars dinner? Let me tell you a story.

In my hometown a new restaurant opened up. The opening was eagerly anticipated in the community because this management group had sister restaurants in a neighboring locality and each one had an enviable reputation. The opening day came and all the appropriate things were done. There was a Grand Opening celebration with the town's elected officials present, notices were in the local papers and it was televised by the local media stations. The restaurant was off and running and initially it was difficult to get a seat. However, a few months down the road the restaurant began to flounder. The word on the street was bad! It was too expensive! The service was terrible. The food was inconsistent. These were the comments spreading throughout the community.

The owners were faced with a choice. Keep doing business as they initially began and eventually be closed for dinner OR develop a new business model that would succeed. They tried several different dining concepts with varying degrees of success. Eventually, they tried offering a four course meal for twenty dollars. They did this for a month. It was so well received by the community that the management extended it into the next month. At the end of the second month this new concept had increased business to the point where it was adopted as the new format for this restaurant.

There was now a different buzz in town. What a great deal for only twenty dollars! The service is efficient and well trained. The food was fantastic. By trying different things, re-training staff and acknowledging when something was not working, this management group found a new model for success. It was different from how they began and different from their other properties, BUT the new model worked them in that location.

How does this related to real estate? If you believe that in the current market, methods which used to work may no longer be effective, if you also believe that real estate is local and driven by community needs, then you should be able to apply what this restaurant did to your business.

Review what it is that you are currently doing. Is it effective? Is there a better way? Do you have to re-train? What does your community want? What will your community need? If you take the time to ask and answer these questions you may find a better way to do business. If you keep doing what used to work, you may eventually be closed for dinner.