How do you suggest we deal with this problem? There could be a silent killer lurking in our industry... the dreaded voicemail.

Do you get tired of hearing the same message, "Sorry, I am not available to get your call...excuse, excuse, excuse?"

As real estate professionals we are in the communications business. Our primary method of how people engage with us is a huge influence on how our businesses will survive in this market, or any market for that matter. There are a number of choices when it comes to communicating with clients and colleagues... text, phone, email, person to person, and voicemail to name a few.

Yes, voicemail seems to have become a method of communication all in itself, a separate category for communicating by many agents. "You leave me a voicemail and then I leave you a voicemail." Any agents come to your mind? I know you are thinking of at least one.

Is it possible that those using voicemail as their primary source of communication are hurting their business more then helping it? Is it possible that if the majority of professionals are using voicemail in this manner, then the entire industry will suffer?

I think this could be an issue in our industry because one of the top complaints I get from agents concerning other agents is that other agents are failing to pick up the phone. 

We do not use voicemail in our office. Let me clarify...we do not rely on voicemail to schedule when people can talk with us. Call our number during business hours and you will get a live person nearly 99% of the time, and NOT a live person hired via a 3rd party answering service. There is a deliberate reason for this.

Here are 5 reasons why we do not use voicemail (much).

#1  Voicemail leaves a negative message in the mind of the caller. 

"Sorry, I am not available..." "Sorry, I missed your call..." "I am away from my desk or assisting another client..." 

I am sorry. 

I am not available.

I missed you.

I am away.

I am helping someone else.

What you are NOT saying is... "I am glad we have connected and I am here to assist you."

In time, people will make a connection with your words. What kind of perception will people have of you if all they hear you say is ,"I am sorry, not available, helping someone else, away from the desk?"

#2  Voicemail is a primitive form of communication. In other words... it's old school. I know that might be hard to swallow.

All of you social media gurus understand that we are moving towards transparent business models. As much as social media can appear to disengage and depersonalize our interactions, the fact is, the true power of social media is that it produces the exact opposite. Social media has connected people that would otherwise never connect. Why? Because it is personal and interactive. Voicemail is robotic and non-linear. It is by far the least effective means to interact with someone (or even leave a message).  Do you look forward to listening to all the messages you have missed at the end of the day? You probably spend 15 minutes to get about 1 minute of the actual information you need. This does not to mean that voicemail can not evolve and become more efficient.

#3 Voicemail  leaves people with the question of "if" and "when" the recipient gets the message and when they will return the call.

Again, it is much easier to pick up the phone and settle the matter then and there. It usually takes 2-3 hours for people to return voicemail messages, and that is being generous. Sometimes the reason why someone has called is no longer relevant anytime past the actual moment of the initial call. Ever needed to know something about a property for your client while at the property, but only got voicemail? Trying to check on the status of an offer... sorry, leave a message.

Rarely is someone just calling to give you information that requires no immediate response. The return call can be a hassle. The return call also has to assume that the other person will answer their phone. If not, the famous phone tag game begins... nobody wins that game and it's not that fun. 

#4  Voicemail is uncomfortable... unless you are a rock star and like to hear your voice.

"At the beep leave a detailed message of why you called....beep." Now you are on the spot to create a monologue out of what is really intended to be a dialogue. You have just seconds to gather your thoughts and condense them down to a single clear and articulate statement. There are no second chances or retakes, the pressure is on to deliver. This is still uncomfortable for many people, even though we have grown to live with it, it can still be uncomfortable.

#5  Your clients and colleagues do not like Voicemail.

Why use a method of communication people would rather not use? Period.

New slogan for your business in 2010... "I answer my phone. Others don't."  Are you up for the challenge?

How about, "I answer my phone (most of the time)"... okay, baby steps.

Detroit is aiming to be the nations frontrunner in a program that will entitle tenants to live for free or drastically reduced rental rates in foreclosed properties. The program is called ROOF (Retaining Occupancy on Foreclosure). Their mission is to minimize the displacement of former homeowners and tenants and fight off the vacant home crises.  

The developers of ROOF claim that because credit is so tight right now, the sales of REO is problematic and has resulted in the population relocating and neighborhoods destabilizing. They believe that the ROOF program will maintain the integirty of the houses and support a higher value at the eventual sale...that it assuming the occupants living in these units will take care of something that does not belong to them and something they are essentially getting for free. 

Keep in mind, the tenant is still protected under the Protecting Tenants at Foreclosure Act of 2009. The ROOF program will give tenants additional rights to live in the foreclosed units. In fact, the start date for the ROOF program can begin AFTER the extended "lease" under the Protecting Tenants at Foreclosures Act of 2009.

Highlights of the ROOF program:

• Agreement is for 3 months with an option to renew another 3 months, then remain on the property on a month-to-month basis.
  
• The owner can market the property but can not sell it within the initial 3 month period.
  
• The occupant can stay one month after the initial 3 months if property is sold. (4 months minimum "free" rent).
  
• The occupant is responsible for utilities.
  
• The occupant will maintain the yard, perform repairs and keep up the home (* yikes!)  
• The occupant will pay a monthly Availability Fee (a fee set by Owner). 50% of this fee is refunded if the occupant moves out on time. If you are renting, don't you wish your rent worked like this?

* The occupant is a tenant is is still protected by tenant occupancy laws in regards to repairs. The contract also states that owner is responsible for repairs at an inspection prior to agreement, but Owner, at it's sole discretion, may elect not to carry out repairs and terminate agreement. Wow, that's a Catch 22 for the city! I can smell attorney brains churning already.

Think this will only be in Detroit? Think again. The following statement from the ROOF Discussion Draft:

We intend to promote this ROOF Agreement with Federal agencies such as Fannie Mae, Freddie Mac, OCC,  Federal  Reserve and FDIC,  and in the private sector with the American Securitization Forum and the Mortgage Bankers Association, with individual servicers and their law firms, and with housing counselors and homeowner and tenant advocacy organizations and their counsel. We also intend to publicize its efficacy through media promotions and other means so as to encourage communities to consider requesting its use in their vicinity. 

How many times have you checked the license of a Realtor who just submitted an offer on one of your listings? What about the buyer's agent showing your property to clients?

You receive a call from a buyer's agent from a particular agent's office asking to view your listing. You run your lockbox and find out that the key was not in the buyer's agent's name. You then discover that the buyers agent is not licensed... you know, the same buyers agent that just sent over that offer and plans to negotiate the contract. Is this legal? Is this ethical? 

I found out that one of the most "successful" Realtors in our area was using a Buyer's agent with no license. They showed property, wrote contracts, and even negotiated deals until closing. Another Realtor in his office told me that just recently this particular buyer's agent ended up passing his test after the third try and his office threw a party for him. Congrats for getting away with breaking the law! WHO should be held liable... the Realtor, the "buyer's agent", or BOTH?

BUSINESS AND PROFESSIONS CODE SECTION 10130-10149 

It is unlawful for any person to engage in the business, act in the capacity of, advertise or assume to act as a real estate broker or a real estate salesman within this state without first obtaining a real estate license from the department.   

0139.  Any person acting as a real estate broker or real estate salesperson without a license or who advertises using words indicating that he or she is a real estate broker without being so licensed shall be guilty of a public offense punishable by a fine not exceeding ten thousand dollars ($10,000), or by imprisonment in the county jail for a term not to exceed six months, or by both fine and imprisonment; or if a corporation, be punished by a fine not exceeding fifty thousand dollars ($50,000).

BUT WAIT... IT DOES NOT STOP THERE... what about the repairman YOU just recommended to your client? Is he licensed? Is the license current? How many times have you checked on the credentials of a repairman. Who is liable if the repairman is NOT licensed and is found negligible for his work? 

In California, state law requires anyone who contracts to do work to be licensed by the Contractors State License Board, if the total price of the job (including labor and materials) is $500 or more.  If you hire an unlicensed person, you may be financially responsible if injuries, fire, or other property damage results.

A few weeks ago my neighbor asked me to check on the license of a contractor his landlord sent to repair some drywall after a leak, questioning his professionalism. I told him that the information was public and sent him the link to check it for himself. He was surprised to find that this was actually public information. I checked it myself and found that his license expired in 1992. 

With everyone trying to save a buck, how often does this happen? How many agents are using unlicensed "agents?" How many agents are using service providers who are struggling to keep up with their license fees in this economy and letting them lapse, yet still practicing? 

I never thought about buying a banana at a gas station. I was just paying for gas, but noticed the freshest banana I had ever seen at the counter. Just a single banana. Perfectly ripe. I love bananas but usually miss out on the "perfect timing" of eating a banana in its prime. I took advantage of the opportunity, and began eating it while I waited for my change.

Hold that banana thought...

"Buyers in this market are not concerned about property conditions. They are more concerned about buying the property than the condition of the property. Property conditions are secondary, if considered at all." Yes, a Realtor actually told me this yesterday.  "IF CONSIDERED AT ALL."  Am I missing something?

So, using some analogies:

People buying cars are more concerned about buying a car than the condition of the car.

People buying a television are more concerned about buying a television than the condition of the television.

People buying shoes are more concerned about buying shoes than the condition of the shoes.

People buying bananas are more concerned about buying the bananas than the condition of the bananas.

Am I the one going bananas here, or maybe I am not on the same page... but, isn't buying more than "buying?"

...going back to banana sales.

I have been buying bananas for the past year at the same gas station. Yes, a gas station. I never buy them at the grocery store anymore. Just a single banana. Ripe and delicious. The condition of the banana is the most important aspect to buying the banana. Who cares about the price if it's not a good banana? if its too brown..will have to use it for banana bread. Too green... not enjoyable and makes me sick. The condition is everything. When it comes to buying bananas, for me, condition is the primary thing.

Now, being the banana connoisseur that I am, I decided to research some on banana sales and this is what I found, interestingly enough...

In 2005, Chiquita began researching ways to sell more bananas. They found that by keeping individual bananas fresh longer they can be sold in more places and not just in bunches at supermarkets by using convenience stores, gas stations, coffee shops, drugstores and other outlets to increase revenue. They believed they could raise profits if people could buy a single, perfectly ripe banana off the shelf, as they would a candy bar or a bag of chips.

At Chiquita's packaging plants, workers now hand-pick the bananas heading to convenience stores and other fast-food outlets for their ideal size, color, shape and ripeness. The single bananas are laid on top of one another in boxes covered with a semipermeable membrane that allows oxygen to pass through but controls the flow of carbon dioxide to delay ripening until the box is opened.

"This allows shops to sell bananas at the perfect stage of ripeness, that look absolutely yummy — and they can sit on a retailer's shelf and not go mushy and not go ugly," said Gregg Bauer, a vice president at Gen3 Partners.

"If you can come up with a way to make food fresher, it has a ready and willing market," he said.

Lesson learned. Buying is more than buying.

As it is with bananas, so it is with houses.

Caldwell Banker Real Estate did a survey of its brokers last year, the company found just 7 percent who say they’re encountering novices who are willing to look for fixer-uppers to buy at a lower price and renovate. Instead, 81 percent say their first-time buyers want their houses to be in ship shape from Day One.

Do you still think condition is secondary, or not considered at all?

I think it's of prime concern for buyers. In fact, as an agent, focusing on condition can be a great marketing tool in this market. An agent who understands market conditions and house conditions will have an edge over those just looking to get a deal in escrow.

How many times have you taken your buyers out and they complain about the "brown bananas" in the market? It's time to step up and provide solutions. 

I asked a lender who works out of a large brokerage if any of the agents are using the 203k prgram. He told me that most agents are not aware of the program. We even recently started to offer in house financing for rehabs and repairs. How many agents are researching these solutions for their clients? The bottom line, condition is important, very important.... and buying is more than buying.

Here's to fresh bananas... and houses!

Fannie Mae said it would start offering leases of up to 12 months as an avenue to keeping families in their homes. "It's a big step forward," says Dean Baker, co-director of the Center for Economic and Policy Research and a longtime proponent of rent-back programs.

"The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications," said Jay Ryan, Vice President of Fannie Mae. "This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities."

Leases under the new program may be up to 12 months, with the possibility of term renewal or month-to-month extensions after that period.

• What happens when the "new" tenant takes possession and the submits a line item bid to Fannie Mae for all the repairs needed to the property?
• Will Fannie Mae be responsible and held liable to repair these homes?
• Will Fannie Mae eventually adopt a new policy for tenant repair requests?
• Will it ultimately be the taxpayers who manage these properties?
• What happens when the "tenants" do not pay and are forced to eviction? Who pays for that?

As a contractor who specializes in repairing bank owned properties, I can tell you the answer to these questions will leave your liability head spinning. There will be plenty of pre-existing repairs that have been masked (e.g. mold issues) and as soon as the homeowner is an approved tenant, these issues will magically appear and Fannie Mae taxpayers will be forced to provide funds to deal with these issues.

I have so many solid leads for agents that I can not give them out fast enough. Do you want one, please? RESPA has also given me the green light to provide all print materials to you for free, that's right, absolutely at no cost to you. You want postcards sent to your farm area twice a week... no problem, consider it done! I am also guaranteeing that if any one of your buyer leads, qualified or not, do not buy a home with you within the first 3 property views, I will personally buy any home from you within 3 days to offset any wasted time on your end. In fact, just through a couple of listings on a dart board and let's have some fun! Oh, I forgot to mention, I also provide a service to your clients that you might find helpful. I do repairs and fix systems, you know like electrical and plumbing...things that your clients might want to have in good working condition in the house. I'm sorry, what did you say? Oh, yes, of course, I am on your side. I will do exactly what you say to close the transaction. We can deal with the hidden mold problem later. In fact, I kind of see it as just discoloration too. I can not wait to do more business with you! You know what they say how one hand washes the other. I am here to wash your hands. In fact, I am a professional hand washer and your dirty hands need washing quite a bit I see. 

Ok... here is my rant.

I spoke with a Realtor about our services this morning who frankly asked me, "What's in it for me?" Ok, let's start with, "We fix homes, we make sure home systems such as electrical and plumbing, are safe and to code. We cure issues that only a licensed, bonded, and fully insured contractor can do.. legally and ethically. We make sure your clients are taken care by providing a house free from hidden problems in regards to property condition."

Wah, wah, wah, wah... I am like Charlie Brown's teacher... until. Until I drop the bomb... I can market your listing for free on our website by cross linking your site with our new site we are about to launch at the end of the month. All of the sudden, he perks up and I am no longer speaking in a foreign language. This is a pattern taking place with new Realtors that I meet. Why? Is it because someone has told them all service providers are "tools" to close a transaction or acquire more leads? 

I have been meeting with Realtors for years. I have an open door invite into many our offices our area. I am not there to sell my services, nor I am there to sell their services. I am there because we share something in common... people. We work together to serve clients by giving them best possible real estate transaction and experience. We can do this best by focusing on "What can we do for them?". NOT... "What can you do for me?" 

Banks are walking away from properties  that are becoming too much of a liability. They are are doing exactly what the previous owners did to the house... walking away. That's right, they are walking away from the house. Think of the mental and physical abuse the poor house endures, "Does anyone want me, why all the abuse?"  

The condition of the home is so bad that nobody wants the home. The value of the homes has been tagged, vandalized and stripped of all appliances and fixtures. Banks are simply not taking final possession at the end of the foreclosure process and sticking it to the homeowners.  The homeowners are left to figure out what to do with the property. 

The homeowners are still responsible for the loan, but will likely never make another payment. The homeowner will also likely not be able to afford to place the house back on the market as a viable home because the condition is so bad. They will not be able to afford to put renters in it either because of all the code violations. 

Read this story in the New York Times

Working as a preservation contractor, I see these homes go from good to bad to ugly pretty quick. There is no accountability to maintaining these homes. Often times, we service the homes by cleaning them out, but within 24 hours someone has already broken into the house and trashed it again. Who is responsible? Who is going to stop the gang down the street from turning the vacant home into the next party house. 

We see this problem everyday and I predict the trend to get worse as we have another wave of default loans hitting our market. Unless there some changes (quick changes), we will see an unprecidted movement.  

Owner defaults on loan  Pre-foreclosure/ possible short sale No short sale and/or sheriff's sale

 Foreclosure dismissedOwner still responsible party  ??????????????

Keep in mind that while the above is taking place the house is being vandalized and destroyed.

Watch our  video on side panel to the right and see what these properties turn into and why nobody wants them.

What will happen to these homes? Who will ultimately take position of these boarded up homes polluting our neighborhoods? Perhaps the city will take possession of these homes and use them for section 8? Who knows? Any suggestions?

Some legislation (such as Ohio HB 323) is being considered that would be require banks to take foreclosed homes to the sheriff's sale quickly or lose mortgage liens. However, is this a catch 22 given current timeline requirements involved in the foreclosure process?  

I was inspired to write this after reading the blog  Top 10 Sales Tips from "Seinfeld" 

Tip #1

In sales, determination isn’t enough; you also need basic skills, like how to answer an objection.

How many of you have buyers that have objected to nearly every house you have shown them? In fact, you secretley wish they would just go away. Have you thought that maybe the problem is not the houses you are showing them? Perhaps you are not giving them a solution that addresses the reason why they are objecting the houses. 

For example, I had a Realtor say to me that he did not want to work with buyers anymore.

"Why would you not want a buyer? Aren't you in the business of BUYING and SELLING?" I asked.

He said, "Because I can not find them anything they want and they are draining my time. Everything they look at is trashed, needs too much work, and if its priced good and in decent condition, it already has multiple offers."

I asked him what he was doing to handle their objections to the properties that needed repairs, "What about the FHA 203k Loan?"

He responded with, "I don't know enough about it. Don't they have to be FHA qualified?"

This is not a blog about the FHA 203k, but the fact that a Realtor did know ANYTHING about this had me thinking, "Do Realtors really know how to sell homes in THIS market? Do they really understand their product enough to provide solutions to objections?" 

It boils down to knowing your product. The best salesperson will be the one with the most current and relevant information in the regards to the product they are selling. Handling objections is part of sales. This is not about pushing clients into homes. This is not about manipulating buyers using sales "strategies." This is about providing the best quality of service to our clients, knowing the product, and handling objections with right information.