Why is Doing it Right Doing it Wrong?

Sometimes how things are done doesn't really matter.  Other times there really is a correct way of doing things.  Why do so many people resist doing things correctly?

Laziness, uncaring, not realizing, not understanding....I don't know why.

In my business, I frequently run across agents, transaction coordinators, escrow officers and others who want to take the "easy way" by not doing something correctly.  Today I spoke with an escrow officer who insisted that his escrow instructions were correct, even though there were two directly conflicting provisions in them.  I pointed them out to him and he explained that the information on the first page would "supersede" the information on the second page and the instructions didn't need to be amended. I said to him that nothing on the first page contains language that it supersedes the information on the second page, and that this could lead to a potential conflict.  He chuckled and said he could redo it "if you want."  What?  If I want?

Why is this standard generally acceptable? Why is it that he thinks it's MY problem? Why does he make me feel that I am being difficult because I want something to be clear and accurate and to avoid a potential issue? How many times have you been on the receiving end of wanting someone to do something correctly, only for the other person to think you're demanding and gossiping about how demanding you are. How many times do you ask for something to be done correctly, the other person blows it off saying it's "no big deal," and later it becomes a big deal? 

I am on the receiving end of this too many times.  I'm not talking about whether there is cheese on my hamburger; I'm talking about things like escrow instructions, bank balances, signing/initialing a contract, putting agreements in writing, etc.   

As a society we let so many things slide and either don't care or don't understand when something needs to be done correctly.  How many serious mistakes could be avoided if people cared about doing something correctly?  What about those people who point out an issue, only to be mocked or made to feel that they shouldn't have said anything in the first place?

C'Mon Buyer, Trust Me or Don't!

Seriously, if you don't trust me, why waste both our time?

Every agent that I know has the same story: you work with a buyer for a long, long time, and then all of a sudden, out of the blue, you get the "Dear John" letter that they've bought a home with someone else.

I've been on the positive and the negative side of that, but either way, I just don't get it.

I educate my buyers up front about how I work.  Do I use a Buyer Broker agreement?  No, not usually.  Most of the time I trust my buyers and they trust me. I am a licensed attorney and practiced 10 years before becoming a full time Realtor.  I understand the need for contractual commitments.  Still, Buyer Broker agreements don't settle well for me.  If someone doesn't want to work with me and I don't want to work with them, why bother?

Still, I get burned every once in awhile and I always question why I didn't use a Buyer Broker Agreement.

Case in point:  I worked with this couple who could afford very little, for about a year. The husband wanted north San Diego County but the wife wanted south San Diego County (about a 45 minute distance difference). I patiently showed them properties in both areas, always meeting them whenever convenient for them.  I listened to the wife complain how her husband wants to keep her in the suburbs while she wanted to be closer to the City.  I worked really hard for the both of them while they figued out what they should do.

I worked with them for a long time until they finally told me that they would wait to figure out where they wanted to be.  Then, they said, they would start looking again.

Agents, you know the rest....I got an "unsubscribe" email from them from the property listings that I had been sending them.  I contacted them since I just knew this had to be a mistake.  Apparantly it wasn't.  They found something they liked and bought it with another agent.  Of course they "appreciated my help" when I asked what happened.

This kind of situation makes me rethink my "trust" issue when it comes to buyers and a Buyer-Broker agreement.  My problem is that I don't really want to work with someone who doesn't respect the time and commitment that I give them.  I have learned to educate my buyers up front, and I rarely have an issue with a buyer just throwing me aside, but it certainly doesn't make it easier when it happens.

So....buyers:

If you work with an agent, realize that the time and energy they give you is all theirs.  They don't get paid for it.  We could be focusing on clients who understand and appreciate what we have to offer.  Or maybe, instead of showing property to you, we could instead relax and spend time with our families.

If you know that you don't want to work with the agent, let them know immediately so they don't use their valuable time helping you when they could help someone who values their work.

Have the decency to discuss any issues you may have with the agent to see if they can be worked out.

And....if this doesn't work....either communicate with them that you don't want to work with them OR ask to sign a Buyer-Broker agreement to commit both of you.

Thanks!

Deb

Virtual Sales....the Waiting Game

After trying to make offers for my clients on short sales, I have "lovingly" termed them "virtual sales."

Like a lot of areas, San Diego has its share of short sales (home sales where the owner owes more to the lender than what the home can sell for). Although the borrower/seller still owns the home, the bank has to approve the contract because they have to agree to take less than what is owed to it.  So many buyers enjoy the idea of the short sale because the price usually looks attractive, but so few actually end up selling.

Three motivated buyers, three different offers, all the same result:

Buyer 1:  We made an offer for the home back in October.  We still have not heard an answer (even to this day), so my clients bought a different (non-short sale) home.

Buyer 2:  We made a full price offer on a home in December.  We never heard anything, except that an answer was "coming soon."  My client got so tired of hearing that, that he recently bought a different home and has now closed escrow.  The area that the short sale home is located in has gone down in price so I doubt that it can be sold for what my client offered.

Buyer 3:  We made a full price offer on a home, also in December.  Finally, after 5 weeks, the bank came back and wanted $30,000 more.  My clients have moved on.

Although I know that a portion of short sales actually sell, it's amazing to me how difficult it is to actually get a bank's cooperation.  I understand that the banks have other priorities and that they need a lot of information before they will approve a sort sale, but if there is a willing, able and motivated buyer, it seems to be in everyone's best interest to actually sell the home rather than let it go into foreclosure, costing the bank more money.

I can only imagine how frustrating it must be for the listing agents too.  I have seen listing agents bend over backwards to get a short sale to be approved only to face the same frustration.

Until banks become more motivated to work to on short sales, I counsel my clients about the pitfalls and risks of those "virtual sales," and let my clients decide whether they want to wait it out. I have to explain that the list price isn't necessarily the price the bank will approve.  More often than not, my best buyers decide that waiting for a bank just isn't worth it and will move on to other properties. 

Are You Paying Too High Property Taxes?

HAS THE VALUE OF YOUR HOME CHANGED? 

With the change in the market, it is possible that your home's assessed value, used to compute property taxes, has gone down.  You may want to consider filing an "Application for Changed Assessment," which will be submitted to San Diego County's Assessment Appeals Board.

Directions for filling out the application are included on the form.  You can also obtain additional information by visiting the County Assessor's website or by calling the Clerk of the Assessment Appeals Board at (619) 531-5777. 

For additional information about Assessment Appeals, you can download the California State Board of Equalization's booklet, "Residential Property Assessment Appeals."

DEADLINE FOR FILING

The application must be filed between July 2 and November 30, and must include data to support the change of value.  If you need data about the homes that have sold in your area, please let me know so I can email them to you.

Is Going Green Real This Time?

In the 1970's, I remember the "energy and oil crisis."  I was in 6th grade and remember television images of cars lining up for gas, everyone talking about needing to conserve energy and look into alternative resources, such as solar power.  I guess that was a fad, because after the crisis people forgot to continue being aware of the need to conserve. Conservation just wasn't that important for many. A few people installed solar panels on their homes and recycling became a part of society. In the following years, corporations like Whole Foods incorporated Earth awareness into its business plan. Although all important developments, there was no general societal consensus that resources needed to be preserved. I joined Greenpeace and supported Earth Day, teaching my son the importance of conservation, recycling and preserving the Earth's resources.

Now, everywhere you go, people are "Going Green." There seems to be a general awareness of environmental issues.  People were starting to ask about Green Features in homes, such as dual-zone air conditioning and Low-E windows. Home developers, such as Pardee, developed energy efficient homes. With great timing, Al Gore's movie, "An Inconvenient Truth," was released, and there seemed to be a Go Green Explosion.

Green information is springing up everywhere. As a real estate agent, I can earn an EcoBroker designation to show my knowledge and commitment to energy efficient housing and community. I plan on earning that designation this year, as that is an extension of my beliefs that I held even as a child. There are now all sorts of continuing education courses on environmental issues.  There is even a directory of Green-friendly toys to help the consumer make decisions. There are more credits and incentives given for using energy efficient appliances and systems.

I took a trip to Seattle this weekend.  I was surprised to see that our very own airport had recycling receptacles. Even more surprising, this past Sunday's NBC NFL studio turned off lights in their television studios for Energy Conservation awareness, as part of its week-long green-themed awareness.

I'm encouraged to see substantial gains in the environmental, green and energy movements.  I hope that it lasts and continues with the great momentum that we're seeing so that Going Green is the norm, not just what we're striving for.

Today's Interest Rate Cut to 4.50%

As predicted, the Federal Reserve cut the interest rate by a quarter point today, bringing the interest rate from 4.75% to 4.50%. This is the second rate cut this year. 

As we saw in September when the Federal Reserve cut the rate down to 4.75%, there was no immediate benefit to consumers hoping to see lower mortgage interest rates. Instead, the interest rates went slightly up in the days following the rate cut and then lowered a couple weeks later. The only loan product immediately reflecting the rate cut was the HELOC (Home Equity Line of Credit).  Mortgage interest rates take longer to reflect the rate cut. Explaining this, John Smyth, President of First California Funding in San Diego said, "It doesn't usually happen immediately because with the rate cut the stock market usually increases taking money out of the bond market, which actually increases rates for a time."

With today's rate cut, what can consumers expect?

Consumers will be able to look forward to future decreases in the interest rates. Smyth explained that, "Normally, the rate cut show up to consumers over the period of a couple weeks.  But, some of the recent earnings reports indicate that the rates should improve faster." 

So we should see rate cuts sooner than expected. Great news for people hoping to buy a home or refinance! 

To get additional information about loan rates and the recent rate cut, contact John Smyth directly at 858-654-4063 or jsmyth@fcfunding.com. As always, feel free to contact me with any questions that you have. 

Time to Fall Back

As the old saying goes, Spring Forward, Fall Back.  Daylight Saving Time is causing us to readjust our clocks and lives THIS SUNDAY. Technically, the change takes place on Sunday at 2:00 am, but if you're like me, you're not waiting at 2:00 am to change your clocks. 

On Sunday you need to adjust your clock one hour backwards. So, if your clock currently says 9:00 am, you'll need to adjust it to reflect 8:00 am. If you don't, you risk sleeping one hour less than you could have and arriving way too early for appointments and work.

For background and history, look at the Wikipedia link above. You can also look at an article discussing how your body never really adjusts to Daylight Saving Time.

Voting is Just Around the Corner

As the end of 2007 comes closer, it reminds me that the time to vote also is getting closer.  The primary election will be on February 5, 2008. 

Here are a few things to remember:

• If you haven't registered or reregistered (if you moved, changed your name or political affiliation) to vote, you have to do so at least 15 days before the election.  If you need to register or register, CLICK HERE. If you're reregistering because you moved but failed to reregister on time, you can still vote by going to your new or old polling place, or by going to the Registrar of Voters office and showing proof of current residence.
• If you would like to become a permanent absentee voter, meaning that you can vote by mail instead of going to a polling place, CLICK HERE.
• The Registrar of Voters is always looking for poll workers. For more information about becoming a poll worker, check out the poll worker flyer and information on the Registrar of Voters website.

Be sure to check out the San Diego Registrar of Voters website for more information.

Address:
Registrar of Voters
5201 Ruffin Road, Suite I
San Diego, CA 92123

Phone:
(858) 565-5800

Email:
rovmail@sdcounty.ca.gov

Temporary Housing Resources for Fire Victims

Many people lost their homes due to the recent Southern California Fires and are now in need of temporary housing.

**If you need temporary housing, please look at these sites:

San Diego Association of Realtors                                           
North San Diego County Association of Realtors 
Pacific Southwest Association of Realtors          
East San Diego County Realtors
San Diego County Apartment Association
HUD's National Housing Locator
Social Serve
Apartments.com

If you need furniture rental, Fashion Furniture Rental is assisting displaced fire victims in San Diego, by providing special services and discounts. Contact Melissa Miller at Fashion Furniture Rental: 858-300-4200 (showroom) or 619-733-4875 (cell).

**If you have temporary housing to offer, please contact the following:

fire@nsdcar.com at the North San Diego County Association of Realtors
Lita LaGuire, 858-715-8005, lita@sdar.com, at the San Diego Association of Realtors
Audrey, 619-421-7811, audrey@psar.org, at the Pacific Southwest Association of Realtors
nmaldonado@prusd.com at Prudential California Realty
http://www.sdcaa.com/ (enter your housing directly on the website)
RentLinx

Add Your Cell Phone to San Diego's Reverse 911 Emergency Call Directory

One way that San Diego notified residents to evacuate their homes during the recent fires was through a "Reverse 911" notification system.  That system called the home numbers in specific areas to let them know of the emergency and the need to evacuate. 

With so many people relying on their cell phones, the Reverse 911 system cannot reach them if they don't also have a home phone.  For those residents within the City of San Diego who rely on their cell phones, their numbers can be added to the reverse 911 system so that in the event of another emergency, they will be able to receive emergency calls.

To add your cell phone number, go to the City of San Diego website at:

http://www.sandiego.gov/ohs/reverse911/index.shtml