I recently put three REO properties under contract for three separate customers.  Boy, what a difference between the three agents and their sellers.  The process by which they handle their business was truly three separate experiences!  Perhaps it's the banks they're working with, but as I recall we're bound by the ethics and rules and regulations of the real estate licensing entity in the State of Florida, not the banks and REO companies who are hiring us!  Remember your license doesn't hang on the bank wall!

What I would like to bring to everyone's attention is the recent change in lending that may tie you and your customer up in an REO closing.  Most banks will not appraise the property until they have a fully executed contract. Seems like a novel idea, right?  Wrong!  It took us well over two weeks to get ANYTHING back from the bank and when we did the customers were HIGHLY ENCOURAGED to use the lender for their mortgage. And, it was STRONGLY ADVISED they use the seller/lender if they wanted repairs completed.  Frustrating to say the least. 

And to add insult to injury, we were to turn the loan around for a 30 day close, but because it took us two weeks to get the contract back there is no way we could make the deadline.  So what does the seller say?  Tough you signed it, you knew what you were getting into and the penalty is $50 a day for every day you don't close.  I think I'll request an extension and HIGHLY ENCOURAGE them to do the right thing. 

Now I ask you, if you thought unregulated short sales were bad, REOs aren't much better!  URGH!  

All agents, whether they deal in short sales or not, are created equal?

FALSE

You wouldn't go to a doctor who wasn't certified would you?  Why deal with an agent who hasn't received specialized short sale training and risk your biggest investment? 

RealtyTrac reported that foreclosure activity increased 75 Percent in 2007.  This statistics can either scare an agent or inspire an agent.  The opportunity to assist homeowners in distress can be professionally and pesonally rewarding.  Now more than ever your neighbors and possibly friends need experts in the field to help them navigate their way back to personal financial health.  That not only helps you professionally, but personally assisting your market back to recovery. 

If you haven't invested a few minutes into www.cdpe.com, please do so.  As a Certified Distressed Property Expert you too can help you navigate short sales and avoid the many pitfalls lenders and unskilled agents bring to the transaction.  You owe it to yourself and your customers to at least have knowledge of this niche in our business.

True or False?

All agents, whether they deal in short sales or not, are created equal?

FALSE

You wouldn't go to a doctor who wasn't certified would you?  Why deal with an agent who hasn't received specialized short sale training and risk your biggest investment? 

As a Certified Distressed Property Expert I can help you navigate short sales and avoid the many pitfalls lenders and unskilled agents bring to the transaction.

The upcoming presidential election is very personal to just about everyone who resides in the United States.

TRUE or FALSE?

I ran across several blogs tonight about the election and debate and wondered, is it risky to blog about your political affiliation and opinions as a realtor? 

What do you think? 

We've heard this question one too many times the past month and are amazed at the number of people who have no idea what is going on in the lending world or where to get information about mortgages.  We are hearing from lots of folks who want to sell their homes and take advantage of this market or buy that Florida vacation home, but fear they can't secure a mortgage. 

If you do not know of a mortgage brokers or bankers, stop by your local bank and inquire within or ask a friend or family member for a referral to a lender.  Despite all the changes in the lending world the past year, there are lots of products available. 

Here are a few facts that are as easy 1.2.3.:

1.  YES, YOU CAN STILL GET A MORTGAGE!Interest rates are fabulous and prices are even better. Why wait and risk losing a good rate?  Or, why wait and risk losing the house you really want at a great price?

2.  YES, LENDERS ARE BEING STRICT ABOUT WRITING MORTGAGES. CONSIDERING WHAT IS GOING ON IN THE LENDING WORLD THEY SHOULD BE IT IS AFFECTING ALL OF US. Just because you walk, talk and breath doesn't mean you'll qualify though. 

3.  YES, CREDIT SCORES AND PAYMENT HISTORIES WILL BE A FACTOR IN QUALIFYING FOR A MORTGAGE.  RESEARCH YOUR CREDIT AND CLEAN UP YOUR REPORT IF NECESSARY BEFORE APPYLING FOR A MORTGAGE. 

4.  SECURING FINANCING BEFORE HOUSE HUNTING IS A MUST IN THIS MARKET! Don't waste your time and frustrate yourself by finding the perfect home before having a plan to pay for it.  Most sellers are skiddish about buyers and the risk of working with an unqualified buyer.

5.  MANY MORTGAGE PRODUCTS ARE AVAILABLE. Some mortgage lenders have products that require very little down payment.  And, some have downpayment assistant programs available depending on your financial or employment situation.

Just like anything else, if you're not sure just ask.  Most lenders will assist you with no obligation.  

Do you smell what your sellers are steppin' in? Do you drink their Kool Aid?  Or, am I the only agent who feels obligated to tell the truth? 

In the Northeast Florida MLS we have well over 20,000 listings.  I know we're all suffering from the decline in the market, but truthfully if you find a seller who doesn't want to face reality there are a ton of others who do. Do yourself and your sellers a favor, stick to the B.S. basics:  

1.  TELL THE TRUTH! Do you really want a listing for 6 months that you've invested your time and money and hasn't sold? They'll appreciate your honesty when you have the data to back it up.

2.  THE NUMBERS DON'T LIE....USE STATISTICS WHEN PRICING USING SOLD LISTINGS, NOT ACTIVE LISTINGS THAT HAVE BEEN ON THE MARKET FOR SIX MONTHS!  

3.  KEEP YOUR PRESENTATION SIMPLE AND EASY FOR SELLERS TO UNDERSTAND.  After all, they already know how bad the market really is, but they didn't realize it was THAT bad!   

4.  TAKE TIME WITH YOUR CUSTOMERS.  Now is the time to spend a little extra time with customers to help them understand the big picture.  Not only is inventory plentiful, especially in the Jacksonville, St. Augustine, Ponte Vedra, Florida markets, but across the country.  It isn't easy being a listing agent in a lot of markets right now.  

5.  REFER DIFFICULT CUSTOMERS.  Don't be afraid to pass off a difficult customer to a colleague who you don't like (just kidding).  No, really, pass off customers who need that extra time if you can't dedicate the patience and time to assist them.  

6.  ESTABLISH EXPECTATIONS of both yourself and the seller.  Be sure they know your marketing plan and timelines.  Remind them too that every showing appointment is an opportunity.   

7.  MLS SEARCH automation services offer instant email information to your sellers so they are aware of what is coming on the market so you don't have to update them daily on the market changes.   

8.  REMIND THEM OF THE PRICE WAR AND BEAUTY CONTEST. Sellers know what's going on, they just want someone to agree with them that their house is the best. Of course they do, its their house!  Just like you think your house is worth more than it is.  See advice #1.   

9.   DON'T ARGUE and don't get emotionally involved with your sellers.  They need your professional advice. We all have that seller who is desperate, but don't let sympathy cloud your judgment.    

10.  AGREE TO DISAGREE WITH SELLERS gracefully.  Those who have unrealistic expectations and who aren't willing to cooperate with a market you have no control over aren't going to listen to you.  Be nice, thank them for the opportunity to work with them, but move on.   

I've heard the phrase, "this is a price war and a beauty contest" so much these days and have caught myself using it as well.  Doesn't it go beyond that now that we are in the thick of interest rate increases, inflation, astronomical MLS inventory and declining values across the country? 

Not only do we have to impress upon our sellers that they have to look good and be the best priced, but they have to worry about low and ridiculous offers, low appraisals, competing with foreclosures and short sales, buyers skiddish to fall off the fence because they're not sure our market is at the bottom and the list goes on.  

Flip that over to buyers.  I just left a buyer who decided that she would "wait out the market" a few more months and get a similar house for even less money.  Despite my best efforts to impress upon her that the house wins the price war and beauty contest, she continues to sit on the fence. 

This market is tough for both buyers and sellers.  The media continues to drive uncertaintly along with the affairs of the world.  No wonder we everyone is so skiddish.  I think it has moved beyond the price war and beauty contest.  What do you think? Any ideas for a new phrase? 

Of course they are and it is our job to give them the correct information about our local markets whether they want to believe it or not!  THE NUMBERS DON'T LIE---WE DON'T MAKE THIS STUFF UP!

I just got off the phone with a colleague who, like me, is frustrated with having to school buyers about pricing. Imagine a buyer wanting to purchase a seller owned property for $100k off the list price?  Okay, sad to say, you can imagine it!  Despite the market, buyers are going to follow the mass media's instructions about throwing low offers, asking for the fridge, the food in the fridge and next week's groceries.

Unfortunately, the mass media has created blanket statements about the real estate market, sending mixed messages about the uncertainty of lenders, foreclosures, home values and the list goes on.  So  what do you do when you're faced with an unrealistic buyer?  This is what we do:

1---KNOW YOUR MARKET BACKWARDS, FORWARD & UPSIDE DOWN (NO PUN INTENDED) Customers are relying on your personal experience and knowledge now more than ever.

2---Prepare your customers with market information.  Give them valid market information about active, pending and sold listings. Give them real numbers and figures they can see and understand in simple format. This is even more important if they are from out of state.  Most buyers coming into Florida think every house is a foreclosure.  Use resources from trusted websites and print media to assist.  Sometimes the information is market specific, other times it isn't.  If you know your market, you'll know what doesn't apply.

3---Educate your buyers in person, face-to-face and verbally convey the information so they understand the difference in values between listings, both active and sold. Allow them to ask specific questions. If you don't know the answer, be truthful and tell them you'll find out. Be sure they have this information before house hunting.

4---Explain the status of your market.....have your prices stabilized in certain neighborhoods, zip codes?  Make sure they understand that each neighborhood is not the same. For instance, in our area, places at the beach have sustained the market much better than those homes located 20 miles west of the coast.

5---Be honest.  Don't fudge reports or speak without confidence and truth about the market.  If you slip, you'll lose your creditability with the customer and loss of confidence could lose you the deal.

6---Be patient.  There is no urgency in the buyer's eyes and they want to exhaust every listing before making a decision.  Encourage them to trust you as to which houses are the best value and price. 

7---Create a business referral network of professionals you can lean on to assist you and your customers.  Make your referral network available to customers to rely upon if they need them.  Nothing better than having another professional at your fingertips to assist.  You can't be an expert at everything, but you can align yourself and stand out in the crowd with a team behind you.   Ask your mortgage or title folks for their input with customers who may have specific questions regarding lending restrictions, property title, etc.

8---Stay positive about the market, the transaction and real estate overall, but make no promises. We don't have a crystal ball and can only interpret what we know, not the future.

9---Use your own intuition about the buyer.  Pre-qualify them with your own guidelines as to whether they are worth your time to educate them.

10---If all else fails, fire them!  You don't have to work with someone who is unrealistic and unprepared.  Some people just refuse to believe the truth.  Your time is too valuable in this market.  Fire them and move on, you'll be happy you did.

If we've made it this far in this market, we can get to the other side!  Stay focused and keep your buyers out of the Kool Aid! 

I know many of you have been faced with the same question or idea.  And, today the mortgage industry and supporting business groups to the industry are lobbying our legislators urging lawmakers to kill legislation that would be too restrictive on their industry.  Part of the legislation requires lawmakers to impose a nationwide licensing system for mortgage brokers and loan officers?  Think about it.  This idea stemmed from the failing lending system and housing crisis across the country.

Owning a home and securing a mortgage is one of the biggest investments an American makes in their lifetime.  Why not have the protections of the government to oversee our lending industry?  Why not have more safeguards in place to support the real estate industry and our customers.  As we get deeper and deeper into the lending crisis and branch out to thousands or new loan products, FHA, VA, assumptions, short sales, foreclosures, the list goes on.

But the bottom line is really do more government restrictions to protect the consumer really restore safety, stability and confidence to the overall housing market? 

I want to hear the arguments and know what others in the industry think. I look forward to your posts.

Jen