Sequim & Port Angeles Real Estate Blog

Quit Claim Deed or Short Sale or Foreclosure?

Fri, 16 Oct 2009 16:57:11 -0500

Quit claim deed or foreclosure or short sale? Which is better if you are between a rock and a hard financial place? Let's see how fast I can get to the point and cover what is really a very detailed and complex subject.

First, if you are unable to make your mortgage payments, will the bank just let you quit claim deed it back to them? No. Banks have been refusing to do this for decades, although every once in a while I hear a rumor of it happening somewhere. I think it happened in St. Louis in 1987. People talk about it all the time, but it is as rare as Mermaids. Even if it was a wise financial move for a bank to do, they are instructed not to by their legal counsel, in part because if they suffer a loss, they probably cannot recover on their HUD insurance or VA guarantee. They can recover on their insurance for losses only if they go through the foreclosure process, or in other exceptional circumstances. So they won't go there.

Second, what about a short sale? A short sale happens when your home is sold for less than the balance of the mortgage. This is happening fairly regularly in the hardest hit real estate markets in the country, but on the Olympic Peninsula in Sequim or Port Angeles, good luck trying to get a short sale through, unless a local bank actually holds the mortgage (very rare). Seriously, the short sale departments of large banks are typically on the east coast, and there is almost no one to talk to, no one who will return phone calls, and no one will respond to faxes. I'm dead serious. I've had three solid offers accepted by sellers but we could not get the banks to even respond, and trust me, we were communicating with the right short sale departments. I've written elsewhere about the chaos in the banking system when it comes to short sales and foreclosures.

Third, a non-judicial foreclosure in Washington is almost certainly the most likely scenario if you are unable to make your mortgage payments. It takes a minimum of 6 months, but banks typically take 10 months to a year. They cannot come after you for a deficiency if they suffer a loss in a non-judicial foreclosure, but if the bank decides to do a judicial foreclosure, they could come after you for their loss. They only consider doing the later if you have a lot of assets they can chase.

Read more about Quit Claim Deeds, Short Sales, and Foreclosures on Sequim Real Estate News.

Sequim Boundary Lines: Sequim Survey Lines

Tue, 13 Oct 2009 22:26:51 -0500

Sequim boundary lines are often in dispute. This is important if you are a buyer of homes or land in the Sequim area. In many areas of the country, like Sequim, subdivisions and short plats grew out of larger family farms. There are only two dairy farms left in the Sequim area, and we no longer have large scale cattle grazing. What we do have is many subdivisions that were platted by many surveyors and engineers over a period of at least 100 years, and advances in technology have identified some old survey mistakes.

Add to that the overlapping barbed wire fences built in 1947, give or take a couple of decades, and it is easy to have an agricultural area with boundary issues on large or small lots. How can you avoid serious boundary line issues?

First, makes sure your Realtor is sharp on these issues. Second, be sure to have a contingency in your purchase agreement that gives you the legal right to check these boundary lines out before closing. Third, know what you are dealing with. Many buyers have killed a perfectly good transaction because they did not understand the legal issues, and they jumped to conclusions. Don't make a mountain out of a mole hill. If the two feet is irrelevant to your intended use and enjoyment of your three acres, let it go rather than get into a ridiculously stressful and expensive legal battle.

When you purchase a property, know what you are getting into, and that includes the boundary lines and the driveway or other easements that effect your property. Sequim boundary lines are often in dispute, but if you are careful, get good guidance from your Realtor, and solid legal counsel, you will make wise decisions that will bless you for the next 30 years.

Sequim Short Sales Can Be A Black Hole

Sun, 11 Oct 2009 10:58:00 -0500

Sequim short sales are a black hole, or perhaps I should say can be a black hole. The last three Sequim short sales that I wrote up all were great transactions, except they were short sales and the banks refused to make a decision. All three died a natural death because the banks simply would not respond to the price.

Imagine this: you write an offer on a home that is a short sale in which the fair market value is less than the current mortgage balance, so the bank must accept less than what is owed to them. The bank's other option, which is very unattractive, is to foreclose on the home. Foreclosure takes a bank about ten months and a lot of money. The statutory non-judicial foreclosure can be done in about six months, but banks cannot move that quickly. In this example the seller and you sign a Purchase and Sale Agreement, which your agent submits to the seller's bank for approval as a short sale. For example, the mortgage balance is $256,000, but you agree to buy it at $225,000.

Now imagine that you and the seller and your agent and the seller's agent are all waiting for the bank to approve the sale. And waiting. For days. For weeks. For months. Welcome to the world of short sales. By the way, this example is a true Sequim short sale that died simply because the bank never made a decision.

This is why I am suggesting that trying to buy a house as a short sale can be a black hole. You simply never hear from the bank. Meanwhile your Purchase and Sale Agreement deadlines all expire, and your agreement dies a natural death. And everyone is still waiting and wondering what happened, but there are no answers.

There are no answers because there is no human being to talk to at the short sale department of the bank which is on the east coast or somewhere. There is no phone number for you or your buyer's agent to call the short sale department of the bank, and when your agent talks to the seller's agent about this, the seller's agent says, "We don't have any way of getting the bank to move on this. They have the paperwork, but they don't respond. Sorry."

And so you wait. And wait. But nothing happens, and your Sequim short sale dies a natural death.

May I suggest you don't waste your time on Sequim short sales, and go with the hundreds of incredible homes for sale by owners in our MLS. It will save you time, stress, and probably money too. You can start here with SearchSequimMLS.com

Sequim Water View Homes for Sale

Thu, 08 Oct 2009 22:11:26 -0500

Sequim water view homes for sale: this is one of the reasons so many retirees move to Sequim. It is true. We do have many gorgeous custom homes for sale with water views, but how do you define a water view?

You know the old saying, "Beauty is in the eye of the beholder?" There are many water views, but some are better than others, and some are much better than others.

Want to get a peek at some Sequim water view homes for sale? Take a look at these:

Sequim Water View Homes for Sale $400,000 to $800,000

Sequim Water View Homes for Sale $800,000 to $5,000,000

Sequim Real Estate Buyer's Agent

Sun, 20 Sep 2009 11:42:54 -0500

If you are buying real estate in Sequim, Washington, you may want to consider a buyer's agent. More and more consumers are becoming aware of the potential and obvious conflict of interest when a Realtor represents both the seller and the buyer in the same transaction. Is it legal? Yes. Can it be done? Yes. Is it a good idea in most cases? No.

In 1983 the Federal Trade Commission concluded that 72 percent of all buyers believed the agent they worked with was representing their interests. The report was the catalyst for a nationwide legislative movement that forced the real estate industry to disclose who their Realtor represents. By 1988, most states had disclosure laws. This also woke consumers up to the need to be sure they addressed this issue when hiring an agent. Agents began to respond to the need as buyer's agents.

Janet Branton, executive director of the 44,000-member REBAC (Real Estate Buyer Agent Council) said, "A survey conducted in 2001 found 46 percent of home buyers used buyer representation. Buyer representation is not the exception anymore, it's the norm. Consumers now know they have the right to be represented."

Here's something I find interesting. Many buyers from outside the Sequim or Port Angeles area will see a sign and simply call the agent off the sign. That's fine, but here's where it gets interesting. The majority of these callers assume that the listing agent they call can represent them as their agent, too. Many hire that agent to write an offer on that agent's listing without any thought to the inherent conflict of interest. I've interviewed many buyers and other agents, and there is almost never any attempt by buyers to interview their agent, to do their due diligence on experience and knowledge, or to discuss dual agency.

Dual agency is legal in Washington, and it is codified as legal in RCW 18.86. That certainly doesn't prove it's in your best interests. As much publicity as dual agency has gotten (and all the lawsuits over it), and as much as "buyer's agency" has been discussed and written about, many buyers are still unaware of the need to hire their own buyer's agent.

I think a buyer needs his own agent, representing his or her interests and not the interests of the seller. I strongly recommend all buyers find an agent they can trust to represent their interests. Dual agency is a conflict, in my humble opinion.

Enough said today on this subject. Buying a home in Sequim or Port Angeles? I would love to represent you as your exclusive buyer's agent. Twenty years as a real estate lawyer and now a broker, I will bring what you need to the table to negotiate the best price and terms. Email me or call me at 360-775-5424. I'm Sequim Buyer's Agent Chuck Marunde. You can read Sequim's largest real estate blog at http://SequimRealEstateNews.com.

Sequim Real Estate: Sequim Homes for Sale

Thu, 10 Sep 2009 17:41:48 -0500

Sequim home buyers from California, Arizona, Nevada, and around the western states are a pleasure to work with. I love being a Buyer's Agent, and the great news for my buyer clients is that I cost them nothing.

I can say it is a pleasure to work with great clients who understand what they want, know how to do their due diligence on the Internet, know what they can afford, have good credit, and know how to make decisions in a timely fashion.

I created some powerful Internet resources for anyone looking at Sequim, and they are all absolutely free. Here they are:

The largest Sequim Real Estate Blog

A Super Easty to Use Sequim MLS Search Site

A Sequim and Port Angeles Website

Sequim and Port Angeles News Online

I hope these are helpful. From Sequim, Washington,

I am Chuck Marunde, J.D.
Attorney (ret.), Realtor/Broker
Sequim & Port Angeles Real Estate, LLC
360-775-5424

What happens when a lender can’t produce the original note?

Tue, 18 Aug 2009 12:41:21 -0500

Via Rick Misitano (Law Offices of James M. Bosco & Associates):

A growing number of homeowners around the country are using a foreclosure defense that may help them retain their homes. It’s called “Produce the Note” and we want you to know this is not a mere technicality that should be treated lightly by the lender or by the Court.

Everyone needs to understand the importance of this issue. When a lender can’t produce the original note, allowing a foreclosure to proceed puts the homeowner at risk of owing that debt again to another party in the future. Therefore, great caution must be taken before a judge can allow someone who can’t produce the original note to cash in on your home.

What if Your Lender CAN’T Produce the Note?

So, what happens when the lender tells the Court it can’t produce the original note, because it is lost? Let’s start with the basics. If a lender wants to foreclose on a property, it has to be able to show that it is, in fact, the appropriate person to whom the money is owed. That right to foreclose belongs ONLY to the person who has legitimate POSSESSION OF THE ORIGINAL NOTE - not a copy, not an electronic entry, but the original note itself with the original signature of the person(s) who allegedly owes the money along with appropriate raised notary seal and signature. So, if you are faced with a foreclosure, you have every right to demand that the person or entity trying to take your property, first prove to the Court that they have the legal right do to so in the first place by proving they have legal possession of the original promissory note.

In my opinion, an original mortgage note is much like legal tender and should be guarded and protected as such by the person holding such an asset. Loosing an original mortgage note is like loosing a $100 bill or a gift card or a lottery ticket. What if I scratched that million dollar ticket and just stuck it somewhere and misplaced it? Do you think I could just show up at lottery headquarters and claim my prize without having the winning ticket? The same principle applies to the person or entity claiming to be the legal holder of an original mortgage note. He who holds the note holds the key.

What the Lender Must Do

What often happens, however, is that the lender claims it doesn’t have the original note, because that note has been lost or destroyed. If the lender is making such a claim, the law requires the lender to prove all of the following under the “Uniform Commercial Code”, which is a set of laws governing commercial transactions that many states have adopted. It contains a specific provision on this subject (Section 3-309) which states that a person can enforce a promissory note without having the original, BUT only under certain limited circumstances.

1. The person or entity has to swear and attest that it no longer has the original note;
2. The person or entity has to prove that it was properly in possession of the note and was entitled to enforce it WHEN it lost possession of the note;
3. The person or entity has to prove it didn’t “lose” possession simply because it transferred the note to someone else (i.e., it’s not really lost); and
4. The person or entity has to prove that it cannot produce the original note because the instrument was destroyed or its whereabouts cannot be determined or it was stolen by someone who had no right to it.

All of these matters have to be definitively proven by the person or entity trying to foreclose on the property. It is not the obligation of the borrower to prove or disprove any of this. The borrower can challenge the right of the person or entity trying to foreclose and demand proof.

The Court’s Important Role

It is up to the Court to determine whether the lender has satisfactorily proven why it no longer can produce the original note. The Court also has to be satisfied that when the original note was lost, the person trying to foreclose on the property had possession of the note at the time it was lost. Until the Court has been satisfied of all of this, the foreclosure cannot proceed.

It is also important for the Court itself to understand that this issue is not merely a “technicality” and the judge should not be satisfied with anything less than full proof of this issue. The Court itself needs to appreciate the fact that if it should agree that an original note has been legitimately lost (and allows the foreclosure to proceed) it is the borrower who is still at risk.

Why? Because incredibly, even if a Court has found that the original note is lost and the foreclosure sale is finalized, if someone later turns up with the original note and proves that it is the proper holder of the note, and not the person who foreclosed on the property, the original borrower is STILL LIABLE.

That’s right. Someone took your home and the Court allowed it because it believed that the lender proved that the note was lost and it was the proper party. Then someone legitimate shows up in the future with the actual note and you still owe that person the money even though your property was taken with the blessing of the Court. Trust me, this is a very serious issue regarding post foreclosures and post pre-foreclosure short-sales. It has happened to three of our own clients! These homeowners had the need to sell their property by means of a negotiated short-sale (so they could avoid a foreclosure) only to find out that the entity claiming to have the legal right and authority to enter into such negotiations and accept such settlements sold their note to another entity and weren’t even aware of it. Several months later, the newly assigned lenders (now claiming to be the rightful owners of our client’s original notes) have since come forward and have also filed suite seeking to recover their entire outstanding principle balances owed to them (prior to the homeowners closing their short-sale transactions with the wrong note holders).

How fair is that?!?! It’s not! And that’s why homeowners need to start fighting back when someone is trying to take their home by foreclosure, especially since an overwhelming percentage of mortgages granted over the last 3 to 5 years have been packaged into securities and re-sold and re-assigned numerous times since the inception of the borrower's original note and mortgage. In some states, homeowners have better than a 50/50 chance of being successful in defending themselves against a completed foreclosure. Why wouldn’t anyone who owns a home do everything in their power to protect and defend it?

All the Best,

Rick D. Misitano, Senior Paralegal
Law Offices of James M. Bosco & Associates
Methuen Executive Park
240 Pleasant Street
Methuen, Massachusetts 01844
Phone: (978) 687-8804
Fax: (978) 687-8872
boscolaw@comcast.net

The Case Of The Disappearing REALTOR®

Sat, 15 Aug 2009 12:21:01 -0500

Via Kristina Pratt, REALTOR® - JustDuckyHomes.com (St. Louis' Illinois Suburbs - Coldwell Banker Brown Realtors):

Sounds like the title to a tantalizing new mystery book, doesn't it? A book like that might be chock full of suspense with the characters experiencing emotions ranging from confusion to frustration and a maybe even a dash of irritation.

Too bad that what I'm talking about here isn't fiction. For far too many home sellers, this mystery is all too real and common. Every day in our market sellers are wondering "What happened to my REALTOR®?"

Nancy and I handle a lot of sellers who have had their listings expire from the MLS for one reason or another. Sometimes it's price, and other times it's lack of attention from the listing agent. Here's a prime example:

Last summer we visited with a seller that had his home on the market for one year with another agency. His listing had expired and he was interviewing new agents. A really good move on his part - sellers should talk to as many potential agents as possible to find a good fit for both them and the agent. A few days after we talked, he called to tell us that he had chosen another agent but that it was a close call.

His house has now been on the market for over 560 days. When I pulled up the listing history in the MLS, I noticed that the listing had only been touched once over the past year - and that was to extend the listing agreement. In our MLS, agents input prospects to receive listings as they come on the market - the catch is that if your listing is there BEFORE the prospect is entered by the another agent, the prospect doesn't receive your listing. So for approximately 10 months, his listing has sat there unattended and has not been populated into the listing cart of ANY prospect after he was listed.

It's actually sad, isn't it?

The number one complaint I hear from sellers who have had their listing expire is "My REALTOR® stuck a sign in the yard and disappeared. I would have lowered my price if they had taken the time to do a market update every few months. I never heard any feedback from showings, and in the 100 degree summer my house was being marketed with a picture of it with snow on the ground. What gives?"

I believe that there are some agents out there that think the work stops when you get the listing agreement signed. That's just not the case.

The gentleman in my example above took all the right steps, he interviewed multiple agents and he didn't pick his agent based solely on price. So how can Edwardsville and Glen Carbon home sellers avoid becoming the main character in a bad mystery novel? Arm yourself with these 10 questions for any agent you interview.

1. How often will you communicate with me? How will you communciate with me? (If you prefer a call and your agent prefers e-mail, hash that out now. Communication is the foundation for a great team, and you and your agent are a team).

2. How long do you normally take to return a phone call?

3. How long do you normally take to respond to an e-mail?

4. Will you provide me with market updates that compare my house to ones that have closed as well as my active competition?

5. When the seasons change, will you update your marketing materials?

6. Will you set me up in the MLS to receive automatic e-mails when something new comes on the market that my home will be in competition with?

7. Can I deal with you personally when I have a problem, or do I have to go through your assistant?

8. Will you provide me with a monthly status update about where my home is being advertised?

9. Even if you can't reach the other agent for showing feedback, would you please still call me and at least let me know that?

10. Will you change MLS descriptions every few months to give my listing a fresh look?

If you receive an unsatisfactory answer to any of these questions, move on to the next agent. The seller-agent relationship is not like an employer-employee relationship... it truly is a team effort and you must find an agent that matches your style for your home sale to be a success.

Questions about selling your home? Stop by Sacred Grounds Cafe in Edwardsville every Tuesday from 12 - 1 to have them answered. We'll be there talking all things real estate - and we'll even buy the latte.

-----

About the Author: Kristina Pratt is a REALTOR® with the Just Ducky Homes team at Coldwell Banker Brown Realtors in Edwardsville, Illinois. She and Nancy Milton help their customers buy and sell homes and investment properties in St. Louis' Illinois suburbs of Madison and St. Clair counties with special emphasis on the communities of Edwardsville, Glen Carbon, Maryville, Collinsville and Troy. For more information, visit their web site at http://www.JustDuckyHomes.com or e-mail Kristina@JustDuckyHomes.com

Mesa, Arizona - The Buy and Bail Scheme Is Still Alive And Well!!!

Wed, 05 Aug 2009 10:13:24 -0500

Via Mesa, Arizona Real Estate *** Teri Ellis, Broker, ABR,CRS,GRI,ePRO,MRE (Homes Arizona Real Estate LLC):

Recently I received a telephone call from a Realtor from another state. He introduced himself, told me he had found me through Active Rain, and knew so and so, and so and so - yada, yada......

After we had finished with our introductions, he told me he had a client that had a home in Mesa, Arizona, and they wanted to find someone to list it for them. As I began to question him on the circumstances of the sale, he said that the sellers just “needed” it listed. I prodded him further asking if they had taken out a second and if they were upside down. He said, "yes," and basically needed it listed in order to complete their purchase of a home through him.

He further went on to tell me that they didn’t really care whether they sold it or not, and he didn’t need a referral fee. Sound fishy? Yep, to me it did – and it was.

I told him this: “they are buying another home and bailing on this one,” aren't they? He hemmed and hawed, and pretty much acknowledged this to be true - actually he "thought" it "might" be the case, but “he didn’t know for sure.”

I told him that it is mortgage fraud knowing when you purchase one home that you are walking away from the other one!! You see, I have very strong feelings about this type of mind set. (See my previous post written in June 2008 on the Buy and Bail phenomena.) NO WONDER we are in such dire straits in America!! Guess who picks up the tab? US!!! People don’t think twice about their obligations to keep their promises – AND – this agent had never heard of the Buy and Bail scheme. Maybe yes, maybe no!! Hopefully all Realtors are aware of this egregious behavior and DO not assist buyers/sellers with transactions of this type.

Mesa, Arizona Real Estate. Call me at: 480.216-3334 for information on purchasing or selling a home in Mesa, Arizona or surrounding towns. OR email me: Teri@TeriEllis.com. Feel free to visit one of my websites: HomesAzRE.com, ServingMesaArizona, MoveToMesaAz.com or MoveToSunnyAz.com. Or stop by my blogs at: MesaAzRealEstateVoice; or Phoenix Valley Real Estate Blog

Realtors Play Musical Chairs for Sellers

Tue, 28 Jul 2009 16:04:09 -0500

One of the popular games in Clallam County as well as around the country right now is called, "Musical Chairs With Realtors." It's a game that some sellers of homes and land are playing without realizing the tragic consequences of losing. Here's how the game works.

An owner of either a home or vacant land hires a real estate agent to list and sell the property. The agent wants to list the property at a sellable price, of course, because the agent only earns a commission if he actually sells the property. The seller is a strong personality. The seller tell the agent what the property should sell for. The seller asks the agent his opinion, but everyone in the room knows the seller isn't really asking: the seller is telling.

An agent often cannot be certain the seller is wrong, because pricing property is not some kind of mathematical science. It is partly objective, partly subjective, and timing is everything for the right buyer at the right time and place. Often an agent is persuaded that a seller's property could be listed at a price the seller is quite adamant about. Who knows, the seller could be right. There are not any recent sales of anything exactly like this home or lot, so it is hard to definitively prove anything to a seller that will persuade him to reduce the initial listing price. But in so many cases, this agent can testify, as can many other agents, that sellers send strong messages that they are not to be challenged on the price. There are many ways sellers send this message, and those of us in the business know only too well how this works.

An agent doesn't want to be rude or offensive, and without specific mathematical proof that the listing price should be lower, it is hard to say anything real intelligent or persuasive to a passionate owner who justifies every which way up one side and down the other why this property should sell at such and such a price. Sometimes it is just impossible to argue otherwise. Any agent worth his salt knows that if he argues with his client, he loses. We don't argue with our clients. It would be bad form and unproductive.

So the agent lists the property, but after so many months, usually three to six months, the owner has decided it's the agent's fault it hasn't sold, and it's time to try an agent that can sell it. Granted, some sellers don't blame the agent, but still the result is the same in that they hire another agent. (Honestly, even though a seller may say he doesn't blame the agent, he really does, or he wouldn't be listing with another agent.)

And the game of Musical Chairs With Realtors begins. The first agent notices that the new listing price with the second agent is way below the price the seller insisted he list it at. What does the agent think? The agent is thinking, "Wow! Why didn't my client list it with me at that price. I might have been able to sell it." This is an entirely legitimate question. To this some sellers would immediately reply, "Well, why didn't you tell me it had to be listed at this lower price. I would have reduced it and you would still have it listed." Not. Experienced agents try to tell sellers a hundred times that the price may be too high, but many sellers simply refuse to hear it in all the conversations. They don't want to hear it, and they direct the conversation to justifying the price each time.

But it gets better! Wait, there's more, to parrot the famous commercial.

The second listing agent is soon to be replaced by a third listing agent, only this time at an even lower price. Oh, this game of musical chairs is such a fun game for all of us. Who benefits? No one.

The seller is making the job of selling his properties hard for everyone, and he is sabotaging his own goal of getting the properties sold. The seller is also disrespecting every agent he hires and then dumps. And worse, with his property on the market so long, he has made his own property less desirable to buyers who no longer see it, even when he keeps reducing the price.

There may be an occasion when it is appropriate to change agents. Agents come in all different sizes and shapes, so to speak, and education, experience, competence, trustworthiness, and professionalism all play an important part to the discerning seller. (Note the word "discerning.") A seller might find out that his agent is not good at marketing and sales, and with some due diligence find an agent who is. But in the vast majority of cases from my experience, most sellers are playing musical chairs, rather than doing some deep investigation to find out who is the best.

This game of musical chairs is played all the time, every week in Clallam County and around the country. Not all sellers are playing this game. How many are or what percentage are playing is hard to say, but a substantial percentage are playing. It's too bad, too, because everyone loses when this game is played, and in this market who can afford to be a loser.

"THE CLOSER" or How I Learned How NOT to Sell Homes

Thu, 16 Jul 2009 12:02:31 -0500

I've published this post of a friend with his permission. He makes some great points.

Via Brian Block -- Northern Virginia & D.C. Real Estate (RE/MAX Allegiance):

There are lots of books, seminars, websites, and other programs that will claim to teach you how to sell. Some of them are good. Some of them are great. Some... well, not so much. However, nothing is better than the live application of watching a master salesman in practice. There are people out there in the world who can sell the proverbial "Ice to an Eskimo."

Recently on my vacation to Cancun, Mexico, I learned how NOT to sell homes. It was an important lesson and one worth sharing. The education came courtesy of the Mexican timeshare salespeople.

Have you ever been to one of those 90 minute timeshare presentations? You know, the ones were they tour you around the resort, show you a sample unit, and then try the hard sales approach to get you to buy while you watch the clock so you can collect your complimentary gift. If you ever plan to purchase or sell real estate either for yourself or on behalf of clients, it's worth going to see how it's done. Or you can just read about my experience here.

STEP 1 -- NEVER PRE-QUALIFY YOUR BUYERS

If you want to ensure that you don't make the sale, never pre-qualify your buyers.

We were blindsided at the Cancun airport by a friendly timeshare marketing guy. I was ready to leave but my wife wanted to listen to their pitch since the fellow was so friendly. He started by giving us some valuable tourist information and details about various things to see while on vacation. Asked some questions, feigned interest in our life (where are you from? how long are you staying? have you ever been in Cancun before?)

Then he "invited" us to a "free breakfast" and a refund on our airport to hotel transportation if we attended a 90 minute timeshare presentation. And at the end of the 90 minute presentation, we'd get our choice of a tourist excursion valued at close to $300. Sounds like a good deal (in fact it was -- the excursion, not the timeshare).

The only requirements were that we were over the age of 30, married, and had credit cards. No income verification, no proven ability to afford a timeshare, no employment requirement, no credit check, nothing. He didn't even ask if we were interested in purchasing a timeshare property!

The following day when we went for the presentation, the sales guy there asked a few more questions, but certainly did not pre-qualify us -- just made us flash our credit cards and asked us about our careers.

STEP 2 -- BUILDING RAPPORT IS NOT IMPORTANT

People want to buy from people that they like. Thus, if you want to lose the sale, don't worry about building rapport.

Flash a smile, feign interest, interrupt conversation, and stick to a script. This is the sure way to flub it. Relationships take time. 90 minutes is usually not enough. Check out the case of the Cancun timeshare.

We were promised a 90 minute sales presentation after breakfast. Little did we know that the timeshare sales guy would sit with us at breakfast and watch us eat (he had a cup of coffee while we made several trips to the buffet). Talk about uncomfortable. Then he started going down his survey sheet, asking us several questions about ourselves -- our interests, our dreams, etc. However, he didn't really seem to care. More of a smile, an "um hum," etc. rather than spirited rapport-building conversation.

After a 60 minute tour around the timeshare resort, our guide who was presumably in his mind building rapport with us, told us that we were going to meet with "THE CLOSER" Dun Dun Dah. Why in heaven's name would he spend 60 minutes with us only to pass us off to purchase from an unknown to us slick salesman?

This was Step 2 to doing it all wrong. Let alone actually calling the other salesman "THE CLOSER" -- that's still got me laughing today!

STEP 3 -- TALK QUICKLY AND USE SALES JARGON

Gotta get through the script. Make sure to overload people with too much information so that they are overwhelmed. Use lots of fancy words and sales jargon. Throw out tons of numbers without much explanation. Put words in the buyer's mouth. Use leading questions to get the answers you want.

Yep, that's gonna work!

Wouldn't you have loved to have been a fly on the wall in Cancun? Or better yet, relaxing on the beautiful beach eavesdropping over the conversation?

STEP 4 -- DON'T LET THEM DISCUSS IT AMONGST THEMSELVES

Real estate purchases are big decisions involving lots of money. There's no reason to allow couples any time alone to discuss the purchase. Stay in their face. Watch their every move for a buying sign.

When it got to discussing price, we found out that the Cancun timeshare would be anywhere between a $40,000 to a $90,000 investment. Besides the fact that we were in Mexico for a vacation, not to purchase property, this was a large amount of money that they were asking us to spend. Maybe they thought we'd had a few early morning margaritas and would be loose with our credit cards!

They never once told us to take 5 minutes or more and discuss it in private amongst ourselves.

STEP 5 -- PRESSURE A DECISION

Yes or no? Yes or no? What's your decision? We need to know today. Right now. Tell us. Say it. SAY IT! BUY IT! C'MON. Pressure a decision. Make it sound desperate. We're selling out. You need to act now. That's guaranteed to drive people away.

Believe it or not, but that's what the Mexican timeshare folks did.

At the end of 90 minutes, my wife spoke up and said "Our 90 minutes is up. Thanks for the education. We're not interested. No Gracias!"

The rude timeshare salesman, "THE CLOSER" said "I'm not here to educate you. I'm here to sell you something. I'm not a teacher. I'm a salesperson."

Well, not that day he wasn't.

He didn't sell us anything.

Five Things you should know if you work with me as your REALTOR:

1. You will be pre-qualified. I want you to know how much home you can afford. I want you to buy for the right reasons and want to understand your motivations, so that I can help guide you towards the right purchase.

2. We will build rapport. A real relationship. I care about my clients. I want you to know about me. Many of my clients over the years have become my friends. In fact, I just had dinner earlier this week with a couple I worked with a few years ago.

3. I will take time and explain things to you. Whether you are a first-time buyer or have experience, I want to make sure that you understand everything in plain English.

4. You can take the time to weigh the facts, and discuss the the purchase amongst yourselves, with your friends, your family, or anybody else you choose.

5. I will NEVER pressure a decision.

"THE CLOSER" admitted to me that he sells a timeshare to about 1 out of 10 or 12 people with whom he meets. That's not a very high closing ratio.

Maybe "THE CLOSER" needs to remove the letter "C" from his title!

Biggest Buyer Mistake and They Don't Know

Tue, 30 Jun 2009 11:14:46 -0500

A buyer makes a huge mistake, but he has no idea he is making it. He's in a very respected profession, and he's a mature and intelligent man. He has a good friend, and his good friend's wife is a real estate agent. So when he wants to buy a house, he automatically hires his friend's wife. After all, she is a real estate agent. Notice that word "automatically."

This is a true story. As it turns out, his friend's wife is not so competent and not so ethical or professional. The details don't matter for purposes of this brief story, but the bottom line is that Mr. Professional gets less than royal treatment, and that is the understatement of the century. I'm being polite here. At the time Mr. Professional had no idea how his own agent sabotaged his transaction with her incompetence and unprofessionalism. He never knew, that is, until much later, when he subsequently finds out, and later tells me the whole story.

What's the moral of this story? Just because your friend's wife is a real estate agent does NOT mean she is a great agent who will do such a great job for you. Why in the world would someone assume they must hire their friend's wife or sister or friend? I'll tell you why, and when you think about it, it just seems dumb. They hire that person simply because of that relationship. Period. That is the ONLY reason. It's hard to believe, but this happens regularly, and I hear the nightmare stories.

Of course, there's nothing wrong with hiring a friend's wife as your Realtor, if she is truly competent, experienced, professional, and ethical, but for goodness sake, do some due diligence first. Go out and interview at least three agents, and choose those three carefully by filtering through the Internet to first read about them and find the one with the best education PLUS experience PLUS a powerful Internet presence. The first two should be obvious, but don't forget that 85% of all home buyers start their search on the Internet today according to a national survey by the National Association of Realtors, so if your agent doesn't have a powerful Internet presence, go somewhere else.

Honestly, I have heard so many stories from good people who hired a housewife as their agent because she was a sister of someone or a brother's aunt's daughter, and after they have made the same big mistake that so many before have innocently made, they shake their head in disbelief as they talk about it.

Why would I be so blunt and honest in this article? Because I have seen this same scenario so many times as a real estate attorney and again as a real estate broker that I think I'll scream it out--All real estate agents are NOT the same. Hire a good one, not just someone who has a license and is your friend's wife. Many of these agents have no business background, no degree in marketing or sales, no real estate knowledge, other than the little online courses required to pass the test, and virtually no experience in hard negotiating or legal documents, and you're hiring this person to spend your $300,000? Eghad!

Okay. I've said it. Now you have some choices to make. Hire someone who is bold and honest and has the experience, someone who will assertively represent you, or . . . hire Tom, Sally, or Jane who just happens to be a friend of a friend and got his or her license.

Not sure who to hire? Call me and ask me anything under the sun, and I'll answer your questions honestly. Do the same with two other Realtors. Then judge for yourself. If you don't think I'm the man for the job, then hire someone else, but don't you deserve the opportunity to find out for yourself before you hire Jane or Sally automatically?

All Real Estate Agents are NOT the Same

Wed, 27 May 2009 13:20:13 -0500

I recently read a blog by another real estate agent somewhere in the U.S. who wrote that if you are a buyer you can get good professional help in any real estate office by any agent, or words to that effect. I disagree with that statement.

Does anyone think all lawyers are the same? Or how about all school teachers, or football coaches, or dentists, or auto mechanics? Of course they are not the same. Neither are all real estate agents equal. I recently received a very insightful question from a prospective client. I love his question, because it shows me he really is thinking about who he retains as a Realtor, and he knows it makes a difference. Here is his question and my answer.

Hi Chuck:

I have been corresponding via email with a couple of agents in your neck of the woods. All are very helpful. I have read some of your articles and a question came to mind: why should a potential buyer pick you over other agents working diligently in the market? We haven’t visited Sequim as yet, but will in June ’09, and we will at that time decide if this is the place to buy a home.

Thanks, [name withheld in this article]

My response follows:

I love your question. I wish every buyer asked that same question. One of my pet peeves is that I compete with every Tom, Dick, and Jane who got a real estate license, but if clients don't do some due diligence, how will they ever differentiate us? I'm not able to talk too much about my own resume on my blogs, because that would be arrogant and turn people off, including me. [Remember reader, I'm breaking my rule here and answering a question about myself.] My business is client-centric, so I try to write about subjects that clients are actually interested in. BUT since you asked a direct question, "Why should a potential buyer pick you over other agents working diligently in the market?," I will answer it directly.

1. My education includes a B.A. in economics, a law degree with a focus on real estate, and three decades of real estate seminars on legal issues, sales and marketing, and negotiating. But education without more is meaningless.

2. My experience in detail would bore you here, because it includes 30 years in real estate, but suffice it to say that I've handled thousands of transactions as a Realtor in Alaska, Nevada, and Washington, and as a real estate attorney of 20 years. (See my detailed resume.) I just sold a $475,000 house to a buyer from California, and his testimony is probably the best reality check you could possibly get on me. I called him and asked if he would mind if you called him and asked him how it was working with me, and he said he would be delighted to talk with you. He's worked with other agents, too, so he can give you a real comparison. [Client's name and number withheld]

3. As your buyer's agent, I cost you nothing. The seller pays my fee. I love that. I enjoy negotiating for my clients to get the best possible price and terms. In once case I saved a client $80,000. In another recent case, I helped a client as a buyer's agent buy a house for$251,000 in a very intense negotiation that saved him about $38,000. As a buyer's agent, I'm selling a house every other month. There are agents here who haven't sold a house in over a year. By the way, I do no print advertising.

Here are more detailed articles that I've written for your benefit on these subjects:

How to Research Your Next Realtor Dual Agency Can Cost You Dual Agency and the Exclusive Buyer's Agent Chuck Marunde's Detailed Resume

You may have seen my sites, but here are the links: SequimRealEstateNews.com SequimPortAngeles.com Search the Entire Sequim & Port Angeles MLS

[name withheld], I'd love to work with you, and I honestly believe you will get more from me than any other agent. I would recommend you meet with me when you get here, and see if you are convinced I'm competent and trustworthy. I'm looking forward to meeting you and working with you.

Chuck E. Marunde, J.D. Broker/Realtor Sequim & Port Angeles Real Estate, LLC 618 South Peabody St., Suite I Port Angeles, WA 98362 360-775-5424

Sequim Sales and Listing Report

Sat, 04 Apr 2009 22:22:57 -0500

Sequim and Port Angeles home sales activity for the first three months of this year compared to last year is instructive. Here we have a graph of the number of single family homes listed for sale in the local MLS and expired or withdrawn in the first three months for 2008 and 2009 (only the Olympic Listing Service has all MLS listings for our area, the NWMLS only includes some of our local listings, so be sure you are searching with the OLS MLS).

That we have so many listings that have not sold, but have been removed from the market should be no surprise when we look at this graph showing how the actual sales of single family homes in the first three months of this year compares to the first three months of 2008.

Internet Marketing Seminars in Washington

Tue, 03 Mar 2009 11:00:05 -0600

Two local businessmen have teamed up to put their combined career experiences together for a powerful and much needed seminar on "Business and Marketing Strategies" and "Website Marketing in a Changing World." David Schoolfield of Schoolfield Publishing and Marketing and Chuck Marunde of Sequim and Port Angeles Real Estate, LLC will be teaching seminars starting in Olympia on March 24th.

The morning session will be taught by David Schoolfield and will include:

Increasing sales without increasing your budget.
How to buy Yellow Pages, choose directiories and save money.
The importance of Basic 101 training for your staff.
The top ten reasons your advertising fails.
Internet marketing and how to increase your website sales.
Targeting your customers

The afternoon session will be taught by Chuck Marunde and will include:

How to jump on the internet marketing train.
Finding and connecting with customers in hyperspace.
How to avoid being left behind with an outdated marketing strategy.
Using traditional marketing to drive traffic to your internet sites.
Adding the strategic power of the internet to traditional marketing concepts to increase your marketing effectiveness 10 to 100 times!

If you want to learn how to increase your business revenue with effective advertising, how to build a better trained staff, and how to create new customers even during lean times, don't miss this 3-hour information-packed presentation featuring David Schoolfield who has over 35 years of experience in every aspect of business and marketing. David’s clients have included the Missouri Lottery, Hot Springs Arkansas Tourism, Coca Cola, Edison Bros. (The Gap), and many more. He has held positions in sales and executive management in radio, television, newspaper and magazine, including business trouble-shooter and Vice President of major radio groups and Vice President of Braswell & Associates Yellow Page Consultants where he helped save national clients thousands of dollars in Yellow Page advertising.

This is a hard-hitting look at current business and marketing strategies, with David Schoolfield providing practical, no-frills, no-nonsense approaches to increasing your business revenue in any economic environment. If you’re interested in learning the cost-saving inside secrets of marketing your advertising sales reps will never tell you, register today for only $149.00 for this morning session! Bring 2 or more guests and save $50 each.

Chuck Marunde is the owner of a real estate brokerage, a number of lead generating webs and blogs, the founder of an online newspaper, an internet marketing consultant, and an SEO expert. He also brings 30 years of experience in real estate to the table, including 20 years as a real estate attorney. He is a professional writer with articles in magazines ranging from Pacific Northwest Home to Ultimate Grappling Magazine, and has published hundreds of articles on the internet. His websites and blogs are getting over 50,000 unique hits per month with over half a million page views already in January and February of 2009. This is a high-energy 2-hour seminar focused on bringing your business into the Internet age. You can build your Internet presence now and reap the rewards in the future, or you can watch your competition pass you by. Learn the Internet myths you don't need to waste your money on, and learn the strategies that really do work. Register today for only $149.00 for this afternoon session! Bring 2 or more guests and save $50 each.

To learn more about the seminar schedules and to register, go to Seminar Schedule.

Free FSBO eBook Download

Thu, 12 Feb 2009 08:27:00 -0600

Do you have a Sequim home for sale, maybe a FSBO? Retired real estate attorney Chuck Marunde, now a real estate broker, Internet marketing consultant, and writer, wrote an eBook for homeowners who have thought about selling their own homes. The eBook is short and to the point, but with the content and the resources made available in the eBook, there are over a 100 pages of solid content, especially for the Sequim and Port Angeles homeowner.

The subjects covered include topics on arriving at an accurate fair market value, appraisals, advertising and marketing, negotiating like an expert, an MLS tool for homeowners to look at what is for sale now in Clallam County, free classifieds for advertising, a list of document titles for the legal documents that may be needed, and traps for the unwary (like the Form 17 Seller's Disclosure).

Download Free FSBO eBook

FOR VISTA users: If you are running VISTA on your computer, after you download the program, you open it by right clicking on the icon and then clicking on the "Run as Administrator" button. On XP or other operating systems, you don't have to do that, but VISTA is quirky.

Offered as a courtesy of Chuck Marunde, J.D. and SequimRealEstateNews.com. May I also recommend a new online newspaper at Sequim-News.com.

Those Wall Street Tokers

Sat, 07 Feb 2009 13:06:55 -0600

By Chuck Marunde, J.D.

They preached long term investing in the stock market,
the gurus, the brokers, those Wall Street tokers.
I invested my hard earned money
so I could grow old and take care of my honey.

What I didn’t know is they were greedy,
the gurus, the brokers, those Wall Street tokers.
While I chose conservative funding,
they sold derivatives with their cunning.

They lost my savings and my future,
the gurus, the brokers, those Wall Street tokers.
But they went home with billions,
While my government spends trillions.

While I worked 40 years, they partied on their yachts,
the gurus, the brokers, those Wall Street tokers.
I carefully invested in WaMu, GM, and Microsoft,
But then I didn’t count on greed and fraud and Madoff.

So I’ll sing a song, a favorite of my youth to
the gurus, the brokers, those Wall Street tokers.
Hi ho, hi ho, off to work I go, I’m screwed,
I’m screwed, I’m screwed, I’m screwed, I’m screwed,
I’m screwed, I’m screwed, I’m screwed.

Oh, wait, I don’t have a job anymore.

Sequim Online Survey to Help Community

Wed, 28 Jan 2009 10:33:11 -0600

Want to help Sequim and Port Angeles grow in the right direction? Ever wonder what you can do to make a valuable contribution toward that end? Are you passionate about some issues but not others? Do you want to make your opinion count with hundreds or thousands of other Sequim and Port Angeles residents?

Complete this survey and we'll enter you in our monthly drawing for the $100 cash giveaway! (Sequim & Port Angeles Residents Only, see survey for details)

This survey seeks insight into what drew you to move here, what you love most about living here, and what you would change. You'll have simple multiple choice and a couple of essay questions you can choose to answer or not. Tell the truth about how you feel, and identify yourself or remain anonymous. It's up to you.

Now you can help by taking this easy online survey, and the results will be made available to you and shared with decision makers who will hear your voice. The survey consists of 28 easy questions and you can probably take it in 5 to 10 minutes.

Take the Sequim and Port Angeles Community Survey

Results can be emailed to you and will be subsequently compiled here for analysis. This is another community service from your friends right here at Sequim and Port Angeles News Online.

Sequim Climate Between Alaska and Nevada

Thu, 22 Jan 2009 18:30:58 -0600

I finished raising my children in Sequim from 1994, and prior to that we lived in Las Vegas for five years, and prior to that seven years in Spokane, and prior to that 22 years in Alaska where I grew up. I hereby testify that the weather and climate in Sequim is precisely between the two extremes found in Nevada and Alaska.

I do not miss 70 degrees below (Farenheit) in Tok, Alaska, nor the ice fog that greatly reduces visibility on the streets of Fairbanks at 50 degrees below. We burned 10 cords of wood every winter, and guess who had the privilege of cutting and splitting the wood? I loved it.

Nor do I miss 115 degrees in the sunny climate of Vegas. I've been a jogger my whole life, and running daily in the desert heat at 90 to 110 degrees was . . . well, it was sweaty. But I loved it.

But there's nothing like the in-between. We have the Olympic Mountains, we have the rain forest, and we have sunshine down here near the water. Talking about water, we have more beautiful water front property here than any place I lived in Alaska or Nevada.

My son, Bristol, who is a professional mixed martial arts fighter, now lives and fights in Vegas. He called me today to tell me how nice and warm it was there, about 70 degrees. I talked to my folks who still live in Tok, Alaska, and it was 65 degrees below. That's a 135 degree difference on the same day.

What was it in Sequim? About 50 degrees, and this is winter. Home sweet home. You gotta love it in Sequim.

[Photo taken by Chuck Marunde at Four Mile Lake up the Taylor Highway just outside of Tok, Alaska. The only way to the Lake from the gravel road way off the beaten path known as the Alaska Highway was to pull our canoes over moss and muskeg for about two or three miles. We did that with four wheelers. We caught several trout and immediately went to shore and cooked them on a grate over an open fire with a little spice my sister had with her. Wow! Incredible! Anybody want to go fishing up north?]

Port Angeles New Online Newpaper

Thu, 22 Jan 2009 18:24:48 -0600

Sequim and Port Angeles now have a newspaper online with a new and exciting look and content that is driven by local interests, stories, and helpful news. This is bigger than it may sound for several reasons. What sets this newspaper apart from the Sequim Gazette or the Peninsula Daily News? A lot. Here's the short list:

Exclusive Online Newspaper. People are using the Internet for almost everything, including reading the news and searching for information. The Internet is an amazing venue, because it doesn't matter whether a person lives in Sequim or Port Angeles, or in Santa Barbara or Phoenix, all can do the same search on the Internet and read the same news online. Now with a dedicated online news source, Sequim and Port Angeles has joined the rest of the world with an exclusive online newspaper.

User Friendly. This online newspaper is designed for consumers to be easily navigated with news well organized as well as information and classified ads easily accessed. Logical and intuitive navigation is no small thing these days. Sometimes it's hard to find what you're looking for on the Internet, but this newspaper is designed to make it easy and enjoyable to read. Readers will love our articles and the positive focus of our efforts. We seek to educate our readers with solid news, local news, national news of interest, photographs of local activities, opinions and commentaries, good advice, and a free classified ad service online only for Sequim and Port Angeles buyers and sellers. Our readers will receive valuable services, all free, including the ability to search the entire Sequim and Port Angeles MLS (multiple listing service) online without registration. Readers are encouraged to submit news and human interest stories. When was the last time a print newspaper made that offer? Our readers can email news to our editor and submit news of local events and local people. This makes this newspaper something that is essentially owned by Sequim and Port Angeles residents. You can not only read the news, you can be the news.

Free Subscription Online. While print newspapers have to rely upon subscription fees and advertising income, we offer our online newspaper to our readers absolutely free. Not only is our newspaper free online, many of the services that are packaged with our newspaper are free, including a powerful online classified ad service dedicated to Sequim and Port Angeles, MLS searches, and much more to come.

Independently Owned. Traditional business models for print newspapers are completely different creatures. Print newspapers have a lot to worry about, including high overhead and massive fixed and variable expenses, and as a result they have to chase businesses (with some high pressure techniques) to pay for expensive advertising. That is a driving force for print newspapers that a dedicated online newspaper simply does not have. You'll be pleased with our online newspaper, because obnoxious advertising isn't slapping you in the face every time you look at it. What does that mean for consumers? It means news that is focused on what consumers are truly interested in reading without artificial or hidden agendas. It also means we can publish human interest stories and positive news that inspire and encourage its readers. You may wonder who the founder and editor is. That would be ChuckMarunde , J.D. Chuck is a retired real estate attorney, real estate broker, and author. Chuck is an avid writer on the Internet and an Internet marketing consultant. This is another of the community services that Chuck is pleased to offer.

Read, learn, laugh, and enjoy. Sequim and Port Angeles Newspaper online. Let us know if you like what we are doing.

Sequim Homes For Sale - 18 Internet Powerful Resources

Sat, 17 Jan 2009 14:37:13 -0600

Real Estate News Bulletin for Sequim buyers and sellers - FREE. Let's get to the point. Exactly what is free? All 18 of the following incredible resources are absolutely free with no obligation and no required registration on your part, courtesy of retired real estate attorney and now real estate broker and Realtor Chuck Marunde, who has been giving away free help on the Internet in Sequim and Port Angeles since 1995.

1. FREE - Search the entire Sequim MLS and the entire Port Angeles MLS with a unique map feature and beautiful graphics and easy navigation (perhaps the best MLS site in all of Clallam County).

2. FREE - Hundreds of articles on Sequim and Port Angeles real estate, buying and selling, negotiation secrets of an experienced negotiator, legal issues to avoid by an experienced attorney, how the real estate brokerage business really works behind the scenes by an experienced Broker, online marketing tips for selling real estate by an expert Internet marketing Realtor, no holds barred tips for buying real estate for the best possible price and the best terms, and much more.

3. FREE - The most powerful and easy to use mortgage calculators online, figure out how much you qualify for, find out what your monthly payment would be, discover what additional payments will do.

4. FREE - Your own weekly email newsletter specializing on Sequim and Port Angeles real estate issues, prices, market timing, charts and graphs on what is selling, and so on. Subscription is FREE and anonymous (only your email is needed, and you can unsubscribe anytime).

5. FREE - Sequim and Port Angeles Real Estate Videos to help buyers and sellers.

6. FREE - Sequim and Port Angeles Real Estate Law Online covering almost every real estate legal issue that comes up here.

7. FREE - A "content-rich" real estate broker website for Sequim and Port Angeles Real Estate.

8. FREE - The Number 1 Sequim and Port Angeles Custom Home Builder (over 400 homes since 1981) with floor plans, photos, specifications, and much more.

9. FREE - A Home Builder's Blog for Sequim and Port Angeles with the truth about building and price per square foot and much more.

10. FREE - Local Sequim and Port Angeles interest articles and photos!

11. FREE - A Sequim and Port Angeles real estate blog with a national network.

12. FREE - Ezine expert author Chuck Marunde on Real Estate.

13. FREE - Port Angeles Vision, a blog about Port Angeles downtown development and businesses.

14. FREE - Sequim and Port Angeles Classified Ads online.

15. FREE - Podcasts on Sequim and Port Angeles real estate issues of Traps for the Unwary.

16. FREE - Search Sequim and Port Angeles Foreclosures and nationwide.

17. FREE - Referral Fee Sign-up and automatic tracking.

18. FREE - Vacation Accommodations for Buyer Clients (over 100 vacations offered).

Why are all these valuable and content-rich resources offered absolutely FREE? With the real estate market in such a slump, I'm working very hard to give clients real value, and to do what I've practiced my whole life: give and give and give, and eventually it comes back. I'm hoping that clients and prospective clients will see that I'm giving them something of value and asking for NOTHING in return. Of course, they can always email me and ask questions and find out if I am credible and whether they think I can help them. I do love helping people, so I think that makes a difference, and I think people can sense that.

How Many Days Until the Market Comes Back?

Tue, 06 Jan 2009 23:53:32 -0600

There is good news and bad news. Let's start with the bad. We have until April 1, 2010 before the market begins the long process of a rebound to better days. No one wants to hear that, but let's face reality. We are in the worst economic slump, the worst real estate slump, the worst banking and mortgage slump, the worst automobile slump, the worst manufacturing slump, . . . need I go on? The list is very lengthy. But the slump is not just a little corner of the United States, or even a little corner of the world. This is a world wide disaster of major proportions. Every day the news headlines are not just peppered with a couple of corporate challenges, they are full of dozens of disastrous corporate reports of bankruptcies and other leading indications of a depression. Federal, State, County, and City governments are under extreme financial stress, too. Some think the stock market is perking back up, but the stock market has shown an uncanny ability to bounce up and down on political news with total disregard for fundamentals.

Okay, that's the bad news. We all know about the bad news. What's the good news?

The good news is that there will be an end to the chaos, and in my opinion that end will come on or about April 1, 2010. This is not good news just because there will be an end to the chaos, but because it helps us put our current business practices and our lives in perspective and to plan accordingly. If there are this many days left until we once again feel the warmth of sun upon our faces, and the economy shows signs of long term balance and growth, we know that we must plan for a long winter.

A foolish man does not plan ahead, even when the signs of the times are upon him. He will spend foolishly, hoping upon hope that somehow customers will buy his product and he will have the money he needs to make it through the long dark winter. He wastes essential cash reserves on old fashioned advertising that is both expensive and ineffective, because he has not been paying attention to moves in the market. He has not considered the dramatic shifts in consumer preferences and how they shop for and buy products. Such a man has not invested his time or his money in developing new products that will meet his customers' changing needs and desires, and just as important, this man has given little thought to the extraordinary tectonic shifts in marketing and selling that have been happening on the Internet. (We could also insert "board" or "CEO" for "man.") The foolish man is most often an arrogant man who stopped learning long ago.

The wise man, suspecting that the winter may be a long one, will be circumspect in how he exhausts his resources of time and money. He will seek to adjust his product lineup to meet the demand as it exists, not as he wishes it would be. He will pursue methodologies that will reach potential customers in the most powerful and cost-effective ways. The wise man knows he does not know everything, so he will surround himself with wise counselors who can help him. He will develop a strong network and affiliations that are mutually beneficial. He will stop wasting his time on defunct concepts pushed by those on a salary who have never actually been in business for themselves. The wise man has been learning in preparation for such times, so his mind is capable of being stretched and challenged. The wise man is a humble man who constantly seeks to learn and grow.

The foolish man will risk everything upon his expectations, and disillusionment will occur if those expectations are not met. The wise man plans and prepares for the worse, but hopes for the best. It is not the worse case scenario, but it is realistic to expect that our economy and consumer purchasing power will not begin to return with any strength for the long term until April 1st of 2010. (Is it just a coincidence that April 1st of 2010 will be April Fool's Day?)

Does this mean we crawl into a cave and wait until then? By no means. We are living in challenging times, but we are also living in times of great opportunity. That may be obvious to those who are serious about investing in real estate with prices down so far and the inventory so high. But opportunities are going to present themselves in almost every industry right now, and where one door is closed, another door will open. Creativity, open-mindedness, enthusiasm, and hard work are the American ideals that will be the driving forces for the successful business owner between now and the spring of 2010.

What can a business do today? If you lack customers, market, market, market. Reach out to potential customers wherever they might be. Work on refining your product or service. Glean new ways to connect with customers or clients. Figure out how to leave your competition behind while they wallow in the mud. Be excited, because when the market comes back, you'll be ready, willing, and able to meet the demand that you are preparing for now. That's what I'm doing. It gets me up early in the morning and keeps me up late. How about you? What drives you in these difficult times? If you face the challenges with vigor, you may yet succeed, but if you crawl into a cave, you are guaranteed to fail.

Ding! Dong! The Newspaper Ad is Dead!

Mon, 29 Dec 2008 17:51:51 -0600

Via Matthew Ferrara -- Matthew Ferrara & Company ( -- www.matthewferrara.com):

Everyone stand up and CHEER!

In an industry marked by "we've always done it that way" insanity - not to mention dozens of people on Active Rain telling me recently that their calendar and magnet mailings still paid off - there is HOPE for the future!

I'd like to award my first WELCOME TO THE FUTURE AWARD (I just made that up) to Shorewest Realtors of Winsconsin!

First, some disclaimers: I have never worked for their company (yet!!) and I received a copy of their ad from a friend at Coldwell Banker United in North Carolina (which means top competing companies are keeping an eye on each other nationwide). But no matter - as a member of the slowest evolving business industry in the history of mankind - you should all be just as excited as I am to see it.

I wonder if this is what it felt like when the first caveman stood up on two legs?

Other than discovering life on Mars, this copy of the "last" newspaper ad for open houses from Shorewest Realtors is clear evidence that the wheel wasn't just an accident and we can learn from our mistakes.

Unfortunately, for some readers, this news may come too late to be of any help; continued weekly research in my local newspaper indicates that there are many more brokerage-strategy-cul-de-sacs yet to fall off the Fittest Grapevine.

I wonder what Shorewest Realty is going to do with all of the MONEY it is about to save? I can think of a few suggestions:

1. Hire me to do a seminar for their agents on even MORE ways to use technology and innovative sales techniques to sell homes.

2. Buy every one of their agents a Blackberry so they can get all of the buyer inquiries from the online traffic they are about to generate for their listings.

3. Hire a professional photographer to take 20 photos of every one of their listings to increase the "pull" of their online open house advertising (and get some of those agents' elbows out of the bathroom mirror shots...) Oh, and film a real video of the home, too!

4. Hire their next three recruits on salaries and demonstrate how the profit-margin of future brokerages will work for everyone.

5. Hire me to do a seminar for their agents.... Oh, did I say that already?? Grin!

Whatever they do with the money - heck, throw one hell of a "We have arrived in the future!" party - this ad just makes my day! This is the right step for any brokerage, in so many ways: Cutting costs, marketing effectiveness, taking control of the marketing plan away from sellers, tapping into the Gen X/Y purchase preferences, and so many more ways this action represents the right approach for the future.

I'm sure Shorewest isn't the only one out there doing this, but I have to admit I admire their bold approach: Running a big, black-and-white ad highlighting the stark contrast between the old and new business models of the next generation of real estate. Taking a stand on a full page; raising the bar on the competition; and setting the standards of performance for marketing in their area.

I only wish I could have seen the face of the advertising manager at the newspaper when they submitted the copy. It would have been priceless!

As you can see - it's going to be a great 2009 in Wisconsin real estate!

Print Newspapers Say Goodbye

Mon, 29 Dec 2008 17:25:21 -0600

Print newspapers are losing readers to the Internet, and there is a ongoing debate about how many years newspapers can last. The Internet is taking over their business in news and advertising.

"After a century of continuous publication, The Christian Science Monitor will abandon its weekday print edition and appear online only, its publisher announced Tuesday. The cost-cutting measure makes The Monitor the first national newspaper to largely give up on print. . . . John Yemma, The Monitor’s editor, said that moving to a Web focus will mean it can keep its eight foreign bureaus open. We have the luxury — the opportunity — of making a leap that most newspapers will have to make in the next five years,” Mr. Yemma said. [Source: Paper to End Daily Edition]

Web 2.0 is a popular term used to describe the new ways people interact on the Internet. New technology is finding new applications as the costs and methods of selling intersects with consumer demands. This sea change is accelerating a decade old trend. Consumers are losing interest in paying for newspapers, and they're moving to the Internet.

Newspapers exist to make a profit, the goal of all profit corporations. Subscription fees and advertising are their primary sources of income. The overwhelming problem newspaper publishers face is that subscriptions are dropping as people can easily get their news free on the Internet 24/7, and businesses are cutting expensive advertising from their budgets because they cannot afford it, and because it is no longer producing results.

Many newspapers have created an Internet version of their papers, but for most that has been a disaster. For traditional print media there has been a huge disconnect between the printing presses that operate with gears and ink and the Internet that cannot be mapped on Google. Many publishers and editors have attempted to use blunt tools to traverse the chasm between printing presses and the virtual world of the Internet. Many are failing, and the current recession is the catalyst of their doom.

Even Microsoft, which moves very slowly, and only takes on new markets when others have already mapped the way, has been forced to reconsider its strategies involving the Internet. Remember it was Microsoft that refused to admit that Internet browsers were the way of the future, and after Netscape mapped out a large virtual presence, Internet Explorer was born of necessity and became a major MS priority. And after years of refusing to admit that the world will move away from expensive PC software, Microsoft finally capitulated and with some fanfare recently announced their grand plans to pursue cloud computing with Azure. Can there be any doubt the Internet is capturing vast territories?

". . . with the rapid movement of dollars to the online space, [Paul] Martino [CEO of Aggregate Knowledge] believes it's just a matter of time before online advertising dollars will overtake traditional media." View article about online advertising.

"The latest Pew survey reinforces some of the key media chattering-class talking points for the past couple of years: Newspaper readership is declining, young people prefer their news from the Internet, . . . It's definitely cutting into the time of print newspapers, which continue to hemorrhage readers to the advantage of online news" View article from Technews World. Another Pew study during the presidential election concluded:

Many more Americans are turning to the internet for campaign news this year as the web becomes a key source of election news. Television remains the dominant source, but the percent who say they get most of their campaign news from the internet has tripled since October 2004 (from 10% then to 33% now).

While use of the web has seen considerable growth, the percentage of Americans relying on TV and newspapers for campaign news has remained relatively flat since 2004. The internet now rivals newspapers as a main source for campaign news. And with so much interest in the election next week, the public's use of the internet as a campaign news source is up even since the primaries earlier this year. In March, 26% cited the internet as a main source for election news, while the percentages citing television and newspapers remain largely unchanged. [Read Article]

I'm reminded of how Kodak had to shift its decades-long focus on film about five years ago. They actually closed their Rochester manufacturing plant to focus on a whole new line of digital products. Corporations and big shots don't determine what products are produced--consumers do.

"Time Inc., publisher of Fortune, plans to slash 600 jobs, according to a report in The New York Times. Gannett Co., publisher of USA Today, plans 3,000 job cuts, according to Reuters, and the Tribune Co.'s Los Angeles Times plans to cut 10% of its workforce." View article entitled Print Media Companies Slash Jobs as Economy Sputters. The Washington Post reported print advertising dropped 14 percent for the quarter, and was down 16 percent for the first nine months of 2008. View article Washington Post Co. Profit Plummets in Third Quarter.

Why do so many people love their Internet news? Is it because it's free? Or is it because it is easily accessible 24/7, has unlimited search and result possibilities, includes opportunities to interact and participate, or is it because Internet news has both audio and videos? Maybe it's all of the above.

Watch in the months and years ahead as traditional media moguls are humbled by the ending of an era. Who doesn't read most of their news and information on the Internet? After all, you are reading this article.

Why building a new home beats buying an existing home . . .

Tue, 23 Dec 2008 16:11:58 -0600

Building your Sequim or Port Angeles retirement home soon? There are a small number of luxury homes for sale in the area, but the sellers have been frustrated, because they've been unable to sell their homes in the upper price ranges, $500,000 to $900,000. If you are planning your retirement in Sequim or Port Angeles, you may be grappling a little with the choice of buying an existing home or having your next home built by a custom home builder.

What is the biggest single reason people ultimately decide to have their retirement home built? Perhaps some visual aides will make the point best.

Not everyone has the same concept of architectural beauty. Some like a traditional architecture, and others like . . . well . . . something else.

What is your idea of a beautiful custom designed kitchen?

These photos represent luxury homes in the upper price ranges. Unless you fall in love with a unique design, you are unlikely to want to pay for someone else's idea of a dream home.

Some people like log homes, but even among those who do, their tastes and preferences are decidedly different. Does this catch your eye? More than that, would you be willing to pay a high price for someone else's unique log design? It's actually a hybrid of log and frame.

The kitchen is clearly one of the most important rooms in your home, so this is where people tend to customize their design, the cabinets, and the countertops, and it's easy to get turned off by someone else's kitchen plan. Just another reason to build your own kitchen from scratch.

The living room or great room is also a major factor for homebuyers, and buyers are usually impressed, turned off, or feel nothing when they walk into a home for the first time. If the living room doesn't instantly delight you with feelings of comfort and peace, move on.

I've seen some really impressive luxury homes, but not necessarily something I would want to live in. When you buy someone else's design, it never really feels like it's entirely your own. Of course, you can redecorate or rehab or completely rebuild a kitchen, for example, but then you've just bought it twice. Why do that when you can design your own and pay for it once?

Granted, these photos are of unique designs, but they are certainly not wierd or way out. These are designs within the universe of homes for sale.

My point is that any luxury home, or home in the upper price ranges, is someone else's design, and while you may look at something more traditional than what I've displayed in these photos, you'll still have the same issues.

Want to look at more floor plans for the Northwest? For floor plans, photos, and descriptions, take a look at RickAndersonHomes.com. I think you'll be glad you did.

Footnote: There's another segment of the market where a person may be able to buy an existing home cheaper than building, and that is the lower price ranges. Those deals are not necessarily easy to find, but a foreclosure may be selling now for less than the cost to build the same home on a developed lot. Most people who are shopping for luxury homes are not in this segment of the buying population. There is one other scenario, and that is a luxury home for sale at a huge discount, more than the cost to build the same or a similar home. Of course, none this eliminates the issues or main points above.