Realtor Diane Bell's Hilton Head and Bluffton Real Estate Blog

NEWLY LISTED IN OYSTER REEF CROSSING, HILTON HEAD PLANTATION

Tue, 28 Jul 2009 06:32:44 -0500

This lovely hard coat stucco home, located at 14 Pearl Reef Lane in Hilton Head Plantation constitutes an excellent value. Lovingly maintained by present owners, the home has 3 bedrooms and 3 full-baths, 2 living areas that flow from a convenient open floor plan plus a screened porch that overlooks a serene tropical lagoon setting. Additional ameneties include 2 fireplaces, hardwood floors and ceramic tile.

OWNERS HAVE VERY REALISTICALLY PRICED THIS HOME @ $509,000. AT PRESENT, THERE IS AN EXECUTIVE TENANT IN PLACE WHO WOULD BE HAPPY TO STAY IF FUTURE OWNERS DESIRE A SHORT TERM RENTAL IN PLACE PRIOR TO MOVING.

EASY TO CLOSE--NOT A SHORT SALE OR FORECLOSURE BUT PRICED FOR TODAY'S MARKET!

FOR MORE INFORMATION, PLEASE CONTACT ME THROUGH MY WEBSITE . I LOOK FORWARD TO INTRODUCING YOU TO HILTON HEAD PLANTATION, LOCATED AT THE NORTH END OF HILTON HEAD.

CELL PHONE: 843-247-5419

It Ain't Easy...Being Green: Earth Day 2009

Thu, 23 Apr 2009 19:39:57 -0500

Via Claire C. (ActiveRain Corporation):

Today is Earth Day, and where most of the world chooses to focus on recycling and global warming today, I am focusing on something much, much more important.

My great-grandmother used to say to me, "Red, use it up, wear it out, make it do or do without. That's the way we did it during the Depression, and that's the way you should do it now. Any other way is wasteful and does a disservice to your family and neighbors."

Growing up, that's exactly what we did. My great-grandmother was big on finding deals and discounts, using something until it was dead, and extending the life and quality of the things we already have. This, of course, was from back before being "Green" was in style, before global warming was even on our social radar, and before people thought frugality was just a fad.

It was sometimes amazing to hear her stories about a time that was simpler, a time where community was so much stronger, and a time that money wasn't everything. She lived simply even in her old age when money was more plentiful and she could do more than play Bridge with her friends or go down to the Bingo Hall.

Sadly, my great-grandmother is no longer with us today, but every Earth Day, instead of rolling my eyes at the harping on recycling or buying into the "Green" products that stores are touting, I think about what I could do to live more simply. What could I use up? What could I wear out? How can I make do? Can I do without that XYZ item at the store?

Many don't know this about me here on the Rain, but in my off-time, I'm also a Frugality Blogger. I teach classes to those who want to live a simpler life, to those who either want or need to make do for a while. I run articles at least three times a week about how to simplify. What's my point? My point is that I'm not trying to talk out of my *** here, but to pass on a very valuable lesson from my dear ol' great-granny and those days so long ago where they didn't have the choice to follow this advice.

Here's some simple things you can do to simplify today, and every day:

1. Instead of running to the store (wasting time, gas, and money) for one ingredient, find something to substitute in your meal. Use AllRecipes.com's ingredient search to try a new recipe, or if you're brave enough, swap your asparagus for the broccoli that will die a horrid death in three days.

2. If you have barely used clothing that is still in style or that you love, but it's a size too big or too small, learn how to sew. For those of you who aren't handy, invest in a tailor; generally, alterations are much less costly than new clothes, and you're not tossing perfectly good clothing into the black hole that is Goodwill.

3. If you're out of shaving cream, use conditioner (this is one of my favorites!). Use lemon and baking soda to clean wooden cutting boards. Vinegar and water cuts grease in the kitchen (especially that awful black stuff that comes from cooking there for a year)!

4. Use used dryer sheets to dust off electronics. They're soft enough for the screen (after use) and they eliminate that awful static cling that attracts dust!

5. Use those single lost-mate socks to help clean up spills on the rug. You're not going to wear them anyway, so spray your spot cleaner on the spot, pull the sock over your fist, and use twisting motions to sop the stain right out!

The main lesson here is to really think about what you're throwing out, donating, giving away, or leaving behind: Can you repurpose it? Can you substitute something else in its place? Can you use it up before you have to throw it away?

Happy Earth Day 2009, everyone! Here's looking forward to a simpler life.

Top 10 Things I Love About Real Estate!

Thu, 23 Apr 2009 19:39:17 -0500

Via Christa LaFarlette (Keller Williams First Coast Realty):

I just feel the need today to blog about the top 10 things I love about real estate. I am sitting here in the aisle of our church sanctuary watching my daughter dress rehearse for her weekend performance, and enjoying my wireless (yet again!).

I'll go backward in true Letterman style:

10-I can update my files while eating ice cream and sitting on the floor!

9--I can market my listings in the middle of the night, giving new meaning to flex hours:-)

8--I was at my son's Special Olympics Torch Run today, when most were working, discussing strategy with my Team Leader! We really do have great tools----

7--I told my husband I needed a new laptop with tablet that would fit in my purse, so I could take it with me everywhere---and he bought it for me (I love you honey:-))!

6--Commission checks ROCK!

5--I get to go into the most fantastic homes, and NO ONE assumes I am burglerizing! And I'm not, so it's all good.

4--Did I mention that commission checks ROCK!

3--Passive income through referrals. Having a lazy week? No issues--refer away!

2--I can write off my mileage and gasoline expenses--for the most part! Love that!

AND THE NUMBER ONE REASON----

1--I always have a reason to start talking to total strangers! And they always have something new to chat with me about! AND--I call that prospecting, and so does my Team Leader (does that mean I can write off my gym membership?)

But really, I do love what I do, and I hope it shows. As I have never known another type of market--this one is working for me, and successfully. So, I am joyful and it is good! Just thought I'd share. Now, check out my new One Team-Keller Williams First Coast fan page on Facebook and let me know your thoughts!

Respectfully---Christa

(who is watching the choir leader slowly lose her mind----too many kids, not enough parents)

YEO - Numbers That Mean Something

Thu, 23 Apr 2009 19:38:11 -0500

Via Jeff Turner (Real Estate Shows):

Last Thursday I wrote about Why Twitter Follower Counts Mean Nothing.

The post touched off some interesting public and private discussions. The number huggers are everywhere and their logic, in a very comfortable, that-sounds-like-something-i've-done-before, kind of way, can certainly appear sound. They ask questions like, "Why broadcast to 10 people when you can broadcast to 10,000?" Who could argue with that, right? <raises hand> The clue to the answer lies in the question itself.

Broadcasting?

Is that really what we're doing in the social media space? Some think so. I don't. I received a direct message from Matt Rathbun this morning that contained a link to a page selling a Twitter Mini-Course Book. I'm not sharing his site. I'm not giving Snake Oil salesman link love. Matt wasn't kind in his analysis.

The people who will succeed by treating Twitter, Facebook and other social networks like electronic direct mail are people who are selling “magic” solutions for growing your business to people looking for “easy” “I want results now” answers. And those successes will be short lived. Because that’s not how effective social media marketing works.

Engagement Is The New Marketing Metric.

Engagement through Social Media is aligned with how trust is built, how real relationships form and transactions result. "Working to build relationships (over time)" is not as easy to sell as "attract more customers now!" But those who see its wisdom will profit in the long run.

In 2008, Forrester Research rightly stated that "engagement" was the new marketing metric. "Using engagement, you get a more holistic appreciation of your customers' actions, recognizing that value comes not just from transactions but also from actions people take to influence others. Once engagement takes hold of marketing, marketing messages will become conversations, and dollars will shift from media buying to customer understanding."

All the numbers that really matter are related to engagement. Forester proposed a four "I" concept for measuring engagement.

Involvement tracks site visitors, time spent, page views and more (old-school stuff)

Interaction measures the contributions to blogs, photo and video creation and uploads, and purchases

Intimacy tries to understand consumer attitudes, perception, and feelings about a brand through surveys or monitoring technology as well as applications providing an interactive environment between brand and consumers

Influence measures the likelihood that consumers will recommend or advocate products or brands

I'm not against numbers per se. But the numbers must mean something. Would truly engaging with 10,000 be better than truly engaging with 10? Of course. But the key to the value in that statement is the word "engaging." How many people can YOU truly engage? It's going to be a different number for you than for the next person stumbling onto this post.

YEO (You Engaging Others) is not focused on YOU. It's focused on OTHERS. YEO is about communicating in a way that allows you to be heard above the noise. It’s about listening more than talking. And it's impossible to listen when all you're doing is broadcasting.

The Squeeze Play...In Baseball Or Real Estate...!!!

Tue, 14 Apr 2009 17:14:30 -0500

Via Fran 'The Title Man' Gaspari Title Insurance-PA & NJ (Patriot Land Transfer, Inc.):

There's a play in baseball they call the 'squeeze play'...rather than explain it with Xs and Os...Let me just say that it contains elements of surprise, bunting, quickness, timing, and a whole lot of luck...

When it works (about half the times it's tried) it looks impressive and ingenious and results in a run scored...when it doesn't work, however, it looks awful, stupid, too risky, bush league, and desperate...

Now, let's look at real estate...

Real estate is often like that...there are many 'squeeze plays' in real estate...when the risks seem to outweigh the advantages...but a lot of real estate results are unpredictable...that's why we don't get paid by the hour...

Trust is very important in a 'squeeze play'...the runner at third must trust that the batter will make contact with the pitch, otherwise the runner will be tagged out foolishly at home...

How often is 'TRUST' misplaced in a real estate transaction...or how often is someone, just learning, made to look like an expert, but, in reality, is a novice at best...

I can think of many 'squeeze play' stories in my career in real estate...some are funny, and some are not so funny...

Personally, I love the 'squeeze play' in baseball, but when it comes to messing with someone's largest life investment or tinkering with some family's American Dream, I'd rather not take the risk...!!!

'SAFE', is the only call for a true Real Estate Professional...!!!

MOTION FOR SUMMARY JUDGMENT OF FORECLOSURE - DEFEATED! AND HOW I DID IT

Tue, 14 Apr 2009 17:09:18 -0500

Via Richard Zaretsky, Florida Real Estate Attorney (Richard P. Zaretsky P.A. ):

Today I used a new technical defense to successfully defeat a motion for summary judgment for foreclosure and I wanted to pass it on to other attorneys (or those who know attorneys) helping homeowners in foreclosure.

This happened in Florida, but other states' rules could provide the same type of relief.

The bank filed its foreclosure some months ago and the homeowner tried to represent himself and did a poor job of it because there were several deficiencies in the pleadings filed by the bank. Then I came into the picture just 8 days before a scheduled court hearing to grant the bank's Motion for Summary Judgment of Foreclosure, at which time the public sale date for the house would have been set.

As with most foreclosure suits the promissory note could not be produced so the bank was going to produce at the hearing an Affidavit of Lost Promissory Note. This is permitted under a special state statute that creates a mechanism to prove up a financial instrument that was lost by the holder.

However, the Rules of Summary Judgment say that any pleading to be used by the moving party (here, the bank) must be filed with the court and provided to the other parties at least 20 days prior to the hearing.

The bank complied with the lost note statute (they had the lost note affidavit to give to the judge), but not the court rule about the 20 days, I argued -- and the judge agreed and denied their Motion for Summary Judgment.

This whole exercise was not to create a delay so the client can live in the house for free -- it was obtained so the client can complete a short sale (he still needs a buyer) and avoid a foreclosure deficiency judgment that will haunt him for the next 20 years.

I pass this on in the hope that this customary practice by the lenders will be recognized by attorneys and used to help out those needing more time to find a better solution than foreclosure.

Copyright 2009 Richard P. Zaretsky, Esq.

Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website www.Florida-Counsel.com. See our easy to find articles at Need Short Sale Information? - These Articles Probably Answer Your Question

Google, Yahoo and Microsoft are staging the web

Sun, 15 Feb 2009 14:00:30 -0600

Via Maureen McCabe - Central OH homes (Real Living HER - Worthington office):

We talk about staging homes here on ActiveRain, a big part of home staging is de-cluttering. The good news Google, Microsoft and Yahoo are getting together for some spring cleaning and de-cluttering of the web.

"Google, Yahoo and Microsoft Collaborate to Clean Up Web" by reporter Miguel Helft in the Bits Column on the New York Times site quotes Matt Cutts:

"There is a lot of clutter on the Web and with this, publishers will be able to clean up a lot of junk,” said Matt Cutts, an engineer who heads Google’s spam fighting efforts. “I think it is going to gain traction pretty quickly.”

This is not about fighting malicious spam on the web though, it is about naturally occurring "duplicate content," non malicious duplication that the search engines sort through the best they can, now. They've just decided to collaborate and use a new tool to de-clutter the web. The Big Three (search engines that is...) are cooperating to sort through the kind of duplicate content that is not trying to game the search engines.

It's a new web standard. I first read about the collaboration on Search Engine Land in "Google, Yahoo & Microsoft Unite On “Canonical Tag” To Reduce Duplicate Content Clutter" yesterday. It is way over my head.

Each of the three big search engines announced their intent to combine to clean up the Web on their own site. The Google Webmaster Central Blog has their announcement "Specify your Canonical" using a Swedish Fish example.

The canonical url is the real thing. It's authoritative.

I think the explaination on the Microsoft blog is the easiest to understand:

"... Live Search has partnered with Google and Yahoo to support a new tag attribute that will help webmasters identify the single authoritative (or canonical) URL for a given page. The link tag defines a relationship between a document and an external resource. In this case, that resource is the canonical URL. The following is an example of the new link tag attribute for canonicalization:
<link rel="canonical" href="http://mysite.com"/>  "
ActiveRain

There's been worry about duplicate content on ActiveRain since the beginning. When Localism was first introduced "duplicate content" became a worry for some... Same content showing up under two diffferent URLs. Then ActiveRain introduced "Outside Blogs" or the "antiquated and hilariously dilapidated" Outside Blogs which have now been replaced with "Individual Blogs." Three urls same content. Then there's "re-blogging" which some members think is evil. Applicable?

Think of it from the point of view more of it being easier for you to find things via the Internet than something to put on your list to do... or even to understand.... Google, Microsoft and Yahoo are going to do all the heavy lifting, the people behind the scenes will work on the details for those of us who are clueless and confused.

The web will look better for the clean up.

A four letter word

Sun, 15 Feb 2009 13:58:32 -0600

Via Federico Astiz (The Pepper Group Diversified):

I hate to admit it, but "bank" has truly become a four letter word.

I was sitting at my desk a couple of days ago, when one of my co-workers going thru the MLS, rhetorically asked: "price increases?....who the heck increases their prices in this kind of market?" I was busy and did not respond, but the question lingered in my head, bouncing around my skull like a shout in an echo chamber.

It was later that evening when checking e-mails, that I recognized the address on one of the"auto-prospecting" messages. Sure enough, it was a listing where one of my buyers had a $1,000 over LP seller-accepted offer waiting for seller's lender's approval.

I opened it up, and to my amazement, the listing price had been increased from $120,000 to $126,300, and under "Agent Remarks" it read: "original buyer canceled - send all offers"

I couldn't believe it.....the question in the cob-webs of my mind had been answered! ....it was the banks, trying to squeeze every drop of blood out of their "soon-to-be-theirs" inventory....and it was My Buyer!

......they just weren't content with selling the property at market value, they wanted to see if they could get juussst a little bit more!.....and they didn't even give us the professional courtesy (right or wrong) of notifying my buyer and I!!

Maybe in an up-trending market, this kind of strategy would've made sense, but under current conditions, with the seller already in default, and knowing that out here in the west, the foreclosure fuse is only about 90 days long, they just sentenced the seller to a foreclosure on his record.

Not to mention the extra cost of the foreclosure, additional selling time trying to find another buyer, and the potentially detrimental effect on their solvency, of having yet another piece of property on their books.

One other point comes to mind, they just indiscriminately walked away from a contract without even a hint of additional negotiation ..... if you provide the seller with an offer by a willing and able buyer, at full listing price or above, and the seller rejects the offer, ....isn't the seller liable for a commission?

The bank could argue that they were not the seller and that "they", had not signed the listing agreement, therefore, claiming innocence. They might even encourage you to take "Joe the seller" to court and try to get your commission money.

But, isn't the bank acting as "seller de facto" when they step-in at the end, and make ALL the decisions that are rightfully a seller's to make?....final sales price, any give-aways or concessions, closing costs, choosing the Title company, COE dates, how much commission to pay the Realtors, changing the listing price on MLS, changing the locks on the property, etc., etc.

It would be interesting to see how this scenario pans out in a court of law .... I guess I will soon find out when I send the bank the bill for my commission.

I guess the banks just don't care. Not content enough with utterly ruining their industry, they are now stepping-in and trying to upset ours. They make their own rules as they go, ....they are ignorant of real state law, and regard the MLS/Commissioner's rules with contempt.

In short, they are tromping on the delicately balanced world of real estate law and ethics, with the carelessness and clumsiness of a neanderthal. They handle themselves in a most unprofessional, unethical and illegal manner.

They need to be made accountable....they need to be stopped....they are out of control...they got us into this mess! If we go along with them, we will be just as guilty of messing up the real estate industry as they are of the financial system collapse.

Kind of reminds me of the joke about the color gentleman (politically correct?), on his way to get a vasectomy and his friend asks him: " Why are you wearing a tuxedo to go get a vasectomy?" and he responds: "If I'm gonna be impotent, I wanna look impotant!".

So, if the banks want to act like the sellers, they need to become the sellers.

The records show that 3 out of 4 short sales fail, and more and more of them are becoming foreclosures due to the inadequate, time-consuming and cumbersome system used by the banks. It only follows, that short sales need to be done-away with altogether, except in the most necessary of cases.

A Short Sale is only a notch above a foreclosure, and it is at par with a Deed in Lieu of Foreclosure.

So rather than the usual walk thru the fog, dictated by THE DEPARTMENT OF REDUNDANCY DEPARTMENT, where we list the property, get an offer, get it accepted by the seller, and then, we start all over again with the bank as the seller, to find out if they'll counter or even approve a contract weeks down the road ....

.......why couldn't we just eliminate the middle man, allowing the seller to DEED the PIQ to the bank IN LIEU OF FORECLOSURE, and then just treat it like a normal REO?

At the very least, we would be now clear who the owner is, ....we would know that the bank is signing the listing agreement, ..... the commissions would be set as a percentage or a flat fee ahead of time, ....and the banks would be a lot more motivated to get off their butts and move that property OFF their shelves!!!

The days when banks were regarded with awe-inspiring admiration, pillars of our society, are long over.

Today, their image has been reduced to that of bottom-feeders in the lagoon, no longer able to stand up to the greatness they once commanded.

"So far the industry hasn't shown any kind of foresight. One reason foreclosures are so rampant is that banks and their advocates in Washington have delayed, diluted, and obstructed attempts to address the problem." Quote from: How Banks are worsening the foreclosure crisis ...read 2/13/09 article here http://news.yahoo.com/s/bw/20090213/bs_bw/0908b4120034085635

There seems to be something sinister and perverse about the way the banker's minds' operate....and please excuse the frivolity with which I use such blanket statements, I know that individually there are many good people trying to make a living at these institutions.

It could be the intoxicating effect of swimming in so much money .... maybe it is the God-like power they exert over people's lives .... where they can improve or ruin somebody's life with the stroke of a pen .....maybe it's just ignorance or lack of empathy....

....it reminds me in a sick way of a serial killer's profile, where the crime is committed not for the destruction of life, but for the feeling of absolute control over someones life.

Like that old chinese proverb reminds us ..... "we can't put fresh tea in the cup, until we ger rid of the old tea" ...... so I say, ....cut the rope and let the dead weight fall to the bottom....most of the banks are walking dead already.......as Realtors, let's stand up for our industry and regain our sesnse of professional pride.

Stimulus Bill Extends Energy Efficiency Tax Credit

Sun, 15 Feb 2009 13:57:11 -0600

Via Stephanie Edwards-Musa, Realtor ® Spring/Woodlands, TX Real Estate (Prudential Gary Greene, Realtors ®):

Because negativity, whining and otherwise just Chicken Little type complaining makes me tired I always try to find the positive side to things. Since the Big News has been the Stimulus Package the past couple days, that's where I was trying to find something positive.

It should be no surprise that Energy Efficiency and Green Collar Jobs have a potential WIN with the Bill. I ran across an article on CNET that laid out much of this information and MORE

Tax Credits for projects that have Electricity derived from Biomass, Landfills, etc. were extended through 2013.

Which we will Desperately NEED because they are now offering a $7500 Tax Credit for Plug In Electric Vehicles. That should put a nice little strain on some already Taxed Grids throughout the US.

The $2000 Cap on the 30 percent Tax Credit for Solar Hot Water was lifted and now matches the 30% on Solar from the October Bailout.

Which Homeowners in Houston TOTALLY wish they had during Hurricane Ike last year when we had no power for weeks on end!

$30B to spend on Smart Grid, Advanced Batteries and Energy Efficiency

Although much of the Energy Efficiency will go toward Federal Buildings - Advanced Batteries for Solar Systems is Fantastic!

All of that is great, but probably the ONE thing that I am personally the MOST excited about is this- According to the article that I read on CNET:

"To retrofit existing homes to be more efficient, the bill extends and expands tax credits for purchase "such as new furnaces, energy-efficient windows and doors, or insulation," according to the committee report. The House and Senate versions extended these credits to 2010 and increased the level to 30 percent with a cap of $1,500 on combined purchases, according to Environment and Energy Daily (subscription required)."

These credits were set to expire at the end of 2009. With much education still in order for Homeowners on how to Make the Homes more Energy Efficient, I am THRILLED that this was in there.

So, you have another year to replace your Furnace, get new insulation and all that other SEXY GREEN stuff that makes your electric bill lower!

How Much Should You "Put Down"?

Sun, 15 Feb 2009 13:56:10 -0600

Via America's #1 Mortgage Broker/858-777-9751:

Down payment requirements, for mortgage loan programs, have increased over the past 12-18 months. Here are some examples:

FHA hiked the statutory down payment to 3.5%

Piggy-back mortgages, using second liens, are all but dead. Conventional loans, with down payments of less than 20%, require private mortgage insurance (PMI). PMI companies have hiked down payment requirements.

State loan programs, like the CalSTRS loan program, suspended “no-down” programs

Jumbo loans require hefty down payments

The larger down payment requirements were implemented to “limit loss exposure” to the lenders and guaranteeing agencies/insurers. That’s good right? Well, not necessarily good for you, the borrower. Low down payment loans, while more expensive, help to limit buyer losses in a down market. Low down payment loans transfer market risk from the borrower to the lending institution; it makes the borrower “too big too fail”.

That’s EXACTLY what these big banks and brokerage firms did; they borrowed so much that they became “too big to fail”. Former Labor Secretary, Robert Reich, outlines the conundrum we face by consolidating the companies who were “too big to fail” into larger institutions that are…REALLY “too big to fail”.

What’s that mean to you, the would-be home buyer?

You never want to borrow money you can’t afford to pay back…BUT…a low down payment loan just might give you some insurance against a declining real estate market. It gives you LEVERAGE with the lender when things get…a bit dicey.

Why do banks rush defaulted loans, against homes with lots of equity, to foreclosure while they are more apt to “negotiate” a loan modification with a delinquent borrower who is “underwater? Banks have to deposit a “loan-loss reserve”, with the FDIC, when mortgages become delinquent. If the prospect of recovery is slim, some banks simply “write-off the loan” (to avoid that deposit with the FDIC) with hopes that they’ll recover SOMETHING later.

If higher downpayments “protect the lender” against market risk, it is only logical that the market risk is transferred to…the borrower.

That’s you.

Tips from Our Mexican Taxicab Drivers on How to Develop a Referral Only Business

Sun, 15 Feb 2009 13:54:14 -0600

Via Ryan Shaughnessy, Broker/Attorney - Your Lafayette Square Real Estate Partner (PREA Signature Realty - www.preasignaturerealty.com):

On occasion, it seems that we are so overloaded with everyday tasks that we sometimes fail to see how simple marketing can be. The best advertisement for our services is our existing customers. Good customer service generates more word-of-mouth referrals and repeat business than 100 advertisements. So, when it comes to marketing, you don't need to have a large budget. You just need to focus on your customer.

Recently, I spent 10 days in Acapulco and Guanajuato, Mexico. During both legs of our wonderful vacation, I encountered Mexican taxicab drivers who had wonderful insights on how simple marketing can be. Both taxicab drivers indicated that referrals and repeat business were the secrets of their success. Their approach was simple - standout from the crowd, add value, and deliver as promised.

Here were their secrets to developing a referral only business:

Be the Best: To be the best, you don't need to have a huge marketing budget, the best connections, etc. Rather, you need to be committed to being the best. It all starts with with the right attitude. To succeed in business, you can't wait for business to come to you. You need to promote your business and go after it. It isn't good enough to say that you are the best. You need to show that you are the best and it all starts with great customer service. Both taxicab drivers understood that repeat business was a better revenue source than waiting at a taxi stand for the next call. To these two drivers, success and repeat business started with a customer-centric approach.

Be Honest: When you deal with the public, you must develop a rapport with the customer. It all starts with being honest. There is no sure fire way to destroy rapport than by simply saying what the customer wants to hear, misquoting the price or costs of a service, etc. Customers want to know how you are getting paid and the costs to them at the outset. When we first arrived, we were a bit jaded. We were waiting for the usual time-share, resort hustler-type approach. When our plane landed, we were set to meet our driver at the exit. We had a "helpful" person direct us to our driver only to learn that he was directing us to a counter to receive a sales pitch for another resort. Now, it may have been a great deal and the resort could have been fabulous. However, when we understood we had been snookered, the merits of the deal were meaningless and the sales pitch fell on deaf ears.

Add Value: In any business, it is important to provide a service with added value. In the case of our taxicab drivers, they weren't simply the safest drivers, the most likable drivers, etc. Rather, they added value. They weren't just drivers. They were tour guides and concierges who made recommendations on dining, shopping and sites to see. They explained the cost differences between shuttle services and their taxicabs or why using a concierge from the hotel to call a taxicab involved a fee split and was often more expensive than hailing a taxicab on the street. Simply put, they saved us time and money.

Exceed Customer Expectations: It is important to exceed expectations. When we got into the taxicabs, we expected to be driven from Point A to Point B for the quoted price. However, in Acapulco, when the taxicab driver arrived at the local market, he didn't simply leave. He offered to wait for no charge while we shopped in the local market. He suggested reputable vendors. Whether we went to the recommended vendors or not, he kept a watchful eye over us and intervened on occasion to negotiate a better price. Similarly, in Guanjuato, the taxicab driver could have dropped our bags at the curb at the airport. However, he didn't stop there. He insisted on carrying our bags into the terminal to the airline counter. It was this type of above and beyond the normal service that attracted our attention. won our repeat business, and generated more income (both in the form of repeat business and tips).

Communicate - Talk to Your Customers: If you want to have repeat business, you have to be willing to talk to your customers. Being prompt is not enough. Delivering a service at the best cost is not enough. You have to develop rapport with the customer. When you talk to your customers, you develop rapport. When you develop rapport, you establish a connection or bond and you increase loyalty. By developing a loyal following, you increase the likelihood of referrals and repeat business. We used the same taxicab drivers throughout the trip when they were available. However, these taxicab drivers would not have obtained the repeat business if they had simply remained silent and delivered us to our destination. Doing your job is good; but doing a good job and connecting with your customer is better.

Use Testimonials: As we talked to the taxicab driver in Acapulco, he explained his services and told some great stories. Now, I initially didn't believe all of his stories about his famous customers. During the conversation, he pulled out a 3-ring binder. In the binder, he had a series of letters from his customers from the average tourist to politicians, movie stars, etc. Well, if Kissinger and Stallone felt obliged to send letters of thanks, I thought we must be in good hands. The 3-ring binder with customer testimonials created instant credibility.

Make It Easy: Before we exited the taxicab, both drivers provided us with their business cards. In Acapulco, the business card included the estimated costs for point to point deliveries from our hotel. He had a box with pre-printed cards for each hotel zone. In Guanajuato (a smaller town), the taxicab driver didn't just give us his card. He left a note for us at our hotel that we received the next day indicating his direct telephone number and offering to drive us to the airport. He even suggested a timed delivery and offered to pick us up at a specific time.

In conclusion, it doesn't matter if you're a taxicab driver or real estate agent, the simple fact is that your business depends on relationships and if your clients and customers aren't staying with you for the long haul and referring their friends, there may be a flaw in your system.

At PREA Signature Realty, we believe in focusing on the customer and want to be your Realtor for life. We want your business and your referrals. If you a looking for a customer-centric, value added approach from the person representing you in the purchase or sale of your home, please contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381 or by email to Ryan@PREASignatureRealty.com.

The Constipation Effect of Short Sales

Sun, 15 Feb 2009 13:50:24 -0600

Via Kristal Kraft ~Denver Real Estate~303-589-2022 (The Berkshire Group Realtors):

Not that I need it, but validation in always nice. This week I wrote about short sales in the Denver metro market. Today John Rebchook of the Rocky Mountain News follows with a good article discussing short sales along with quote from fellow real estate associates.

There are agents who make a living chasing the short sale and foreclosure markets. They of course are advocates of the process. Many others feel the opposite, short sales to them are a waste of time.

Jim Smith, owner of Golden Real Estate, had this to say about them this week in his online real estate column: "Having listed a short sale myself, I have experienced this colossal waste of time, and I'm no longer willing to list such homes."

Smith said banks won't tell you the amount they will accept until you bring them a "live" contract, and the deals usually fall apart because it takes such a long time to get an answer from the lender.

Lou Barnes, principal of Boulder West Financial, agrees. There are so few short sales being completed that they aren't worth the effort, Barnes said.

"I was teaching a real estate class and I told my students that they would be better off doing their laundry than wasting their times on short sales," Barnes said.

I believe the entire short sale process is congested with unrealistic bids on properties. True to the business, the bottom feeders come out, placing bids on properties that have no chance of ever getting accepted. Yet these bids are presented to the banks and gain a position on the desk of the short sale administrator.

What happens next takes forever. The time involved to get to the file often fends off real buyers. This sort of frustration causes a ripple effect that resonates through all parties in the transaction.

No body want to waste time, money and effort on a useless cause. It gives the industry a black eye.

What needs to happen with the banks is more efficient organization. A front-end traffic cop that looks at the file, knows the banks break-even, bottom line number and immediately sends the offers without a breath of hope packing.

Get the useless crappy offers off the desk!

By making sure only the bids that have hope and potential of getting accepted you loosen up the time restraints on the over-worked administrators. Giving them an opportunity to do focus on getting their job done will help the industry. It will save countless wasted hours, many disappointed buyers and send near-bankrupt and distressed homeowners away so they can rebuild their lives.

We need one thing right now.

That is consumer confidence.

May we have some Please?

Welcome to Denver Dwellings Blog! If you enjoy reading about Denver real estate and things to do in Colorado be sure to add this blog to your feed reader, just click on the RSS puzzle to the left.

Are you looking to buy or sell a home? Contact me directly or click on these icons to either search all the homes for sale in the Denver metro market or to request a market analysis on your home. Thank you for stopping by my blog, leave a comment or two, I'd like to hear what you have to say.

Credit Scoring - Balances (3 of 6)

Fri, 30 Jan 2009 19:11:42 -0600

Via Steve Kappre, Gloucester County, NJ Loan Officer/Mortgage Planner - 856.419.3561 (Treasury Mortgage):

One of the most misunderstood areas of a credit score is the "balances" part of scoring. I say that it is misunderstood not because it is complicated, but because people tend to have no idea why their credit score is low, when in fact they are carrying very high balances on their credit lines, a common factor in a low credit score.

I've seen credit reports where people were never late on a payment, yet their scores were in the 580's. That isn't exactly a score to get excited about. The credit scoring model views such a person as a higher risk, and grades them accordingly.

Your balance-to-credit limit ratio makes up 30% of your credit score, only second to that of payment history. Here is an example to understand how your balance is calculated: You have a $1,000 limit on your VISA card, and your current balance is $500, so you are at a 50% ratio. The higher your balance is to the limit, the more it affects your credit score. It is even possible to go above your credit limit, which can really hurt your credit score.

PRICELESS TIP ... Assuming you have two credit cards with a $10,000 limit for each card; It is better to have a $10,000 balance divied up between twoo credit cards, having a $5,000 balance each, then it is to have the same $10,000 in debt on one credit card (leaving the other card with a $0 balance). Use this system to maximize your credit score.

CAN WE FIX IT?
YES WE CAN! - Some fix-its for some common problems.

You can transfer balances from one card to another to "balance out" your debt ratio per card. Depending on the scenario, this could improve a score by 50+ points.

On occasion, a creditor will not report your credit limit. Therefore whenever you have any balance on that account, your score is calculated as having credit accounts over the credit limit, negatively impacting your credit score. What can you do to remedy? Ask for your creditor to report your limit to the credit bureaus. This should usually work. Another option is to max out your card and immediately pay it off. When you do this your credit limit will be reported at the dollar amount you just used your credit card up to, and your balance ratio will then be accurate. If utilized this second way, your "new limit" should show for about 13 months. NOTE: Do not max out your card if you do not have the money to immediately pay it off. This will do far more harm than good.

Ask for a credit limit increase every 6 months. If you have paid your accounts on time, and a creditor hasn't automatically raised your credit limit, you can call and ask that they do so. Sometimes they will automatically do it, and sometimes they will say that they have to pull your credit. I would suggest you don't have them pull your credit, as it would hurt your score.

Doing a balance transfer to a business credit card that is not reported on your personal credit profile is one way to raise their score. Often business credit is not on one's personal credit profile.

This article is number 3 in a series of 6. Don't miss the other important factors in the credit scoring model, including many other ways to inrease your credit score.

Many scenarios are delicate and very specific action should be taken. Incorrect action can have a negative affect on your score. Contact me directly to discuss your options and next action steps to improve your score or to qualify for your new loan. ~ Steve Kappre

Credit Scoring - What Makes Up My Credit Score? (1 of 6)

Credit Scoring - Payment History (2 of 6)

Credit Scoring – Balances (3 of 6)

Credit Scoring - History (4 of 6)

Credit Scoring - Payment History (2 of 6)

Fri, 30 Jan 2009 19:09:28 -0600

Via Steve Kappre, Gloucester County, NJ Loan Officer/Mortgage Planner - 856.419.3561 (Treasury Mortgage):

The most important factor regarding your credit score is your payment history. Your ability to pay your accounts on time reflects 35% of your credit scores. The credit scoring model certainly wants to know that you are paying your accounts as agreed. The last 6 months are the most important time frame. As time goes on older accounts and reportings have less weight to your score. Although many factors come into play, a very recent hit to your credit could drop a score 50+ points

A credit report will usually show at minimum these catagories;

Past Due

30-days late

60-days late

90-days late

Collections

Public Records, such as Judgments, Bankruptcy, Tax liens

Past due accounts are accounts that are 1 day past due. They will negatively affect your credit score while the account shows "past due". If the account reports as paid before hitting the 30-day mark, then the past due amount will not show past due, and you won't have a long term credit hit as you would for a 30+ day late.

Credit reports have no "memory". It is snapshot of what appears at the time the report is requested.

30-day lates and greater are more permanent dings to your credit score. The worse the late period the more damage it does to your score. For example, a 90-day late is worse than a 30-day late. Accounts that go beyond 90+ days may eventually show up as collections or judgments.

Collections are among the worst for a credit score. If you are looking to maximize your credit score, here is a rule of thumb. Collections less than 2 years old pay off, as it should benefit your credit score. Collections 2 years or older, leave alone until you can pay them off at settlement (assuming you are buying a home). Very Important - paying a collection over 2 years old will negatively hurt your credit score. Essentially what happens is the account is brought to a current status, and as stated above, the more current the derrogatory mark, the more it hurts your score. In all cases, be certain to obtain proof of the account's pay-off in case it is needed in the future.

A few more notes regarding payment history ...

The highest weight is attributed to the highest pay account. For example, a 30-day late on a mortgage for $2,000/month is worse for your credit score than a 30-day late on a JC Penney card for $10/month.

Judgements, bankruptices, and tax liens do not keep you from purchasing a home. Even someone in a bankruptcy chapter 13 can, with permission from the trustee, obtain a home mortgage. For more information regarding judgments, bankruptcies, tax liens, and anything else regarding credit just call or e-mail me. I have great respect for people who take the time to restore their credit, and I will do my best to help. And if you are working hard to make it better, work equally hard to make sure you are doing it RIGHT! ~ Steve Kappre

If you missed the other installments on credit check out "Credit Scoring -What Makes Up My Credit Score?"

Credit Scoring - What Makes Up My Credit Score? (1 of 6)

Credit Scoring – Payment History (2 of 6)

Credit Scoring - Balances (3 of 6)

Credit Scoring - History (4 of 6)

Credit Scoring - What Makes Up My Credit Score? (1 of 6)

Fri, 30 Jan 2009 19:08:43 -0600

Via Steve Kappre, Gloucester County, NJ Loan Officer/Mortgage Planner - 856.419.3561 (Treasury Mortgage):

I've worked with clients all across the board. Some who had "perfect" credit, and some who upon seeing their credit report, found themselves a second job (fixing their credit). I'll help you understand what makes up a great credit score, and how to alter any situation to improve the credit scores.

Let's lay some ground-work.

Three bureaus evaluate your credit scores

Equifax

Trans Union

Experian

Credit scores will be different among the three bureaus because not all creditors report your data to all three bureaus. Even if your data was reported exactly the same to each, the three credit bureaus don't use the same model to evaluate your score. Typically your three scores range within 50-60 points from high to low. On some occasions you will see a score drastically higher or lower than the other two. For this reason, many creditors will pull all three scores and use your middle score for qualifying purposes. The middle score is assumed throughout these articles when we talk about one's credit score

Credit scores range from 350 - 850. The higher the score the better. What is a great credit score? In today's market you want to have a 720 or better. Even higher is better for qualifying purposes, although it probably won't get you a better rate.

"Good" Credit Scores. You can still finance a home with a lower score, but it becomes more expensive either by way of a higher interest rate, or by way of higher fees (usually points*). Stepping down from that 720 score, you will experience what is call Risked Base Pricing. Each 20 points lower could cost you in rate or fees. Today Fannie Mae, Freddie Mac, and FHA all have some form of risked base pricing. So literally one point in your credit score could be a huge savings to you.

"Poor" or Low Credit Scores. Your options shrink real fast as you dip below 580. Although many mortgage guidelines allow for scores below 580, many lenders/investors (as of this writing, 10/22/08) incorporate their own guidelines on top of these main guidelines. So in some instances, going to another lender that offers the same type of loan, for instance an FHA loan, may allow you to finance your purchase or refinance instead of being denied.

Now that we have a basic knowledge of credit scoring, look out for the next part of this series, Credit Scoring - Payment History (2 of 6) where we will start to talk about the reasons scores are what they are, and how to get your credit score higher and keep it there.

For questions or a personal credit review, contact Steve Kappre at 856.419.3561 or at www.stevekappre.com

* A point is equal to 1% of the loan amount. i.e. One point on a $100,000 loan is $1,000.

Credit Scoring – What Makes Up My Credit Score? (1 of 6)

Credit Scoring – Payment History (2 of 6)
Credit Scoring – Balances (3 of 6)
Credit Scoring – History (4 of 6)

Credit Scores? What to do in Your Scenario ...

Fri, 30 Jan 2009 19:08:17 -0600

Via Steve Kappre, Gloucester County, NJ Loan Officer/Mortgage Planner - 856.419.3561 (Treasury Mortgage):

I'm sharing this great testimonial that I recieved last night because I know many people are in the same boat. The questions regarding credit scores are numerous, varied, and frankly getting them answered correctly makes a HUGE deal regarding many other areas in life. Maybe you can find the same helpful information below in the credit score links.

"I am very grateful to you for taking the time to help me (fix my credit) even though I am doing the work. The fact that you have laid out the steps for me to follow is the best thing that anyone has ever done for me. It is easier to understand now what I need to do to get to where I need to be. Before reading this and talking to you, all I honestly knew was that as long as I paid my bills on time and got them under the limits my score would go up. Having the whole equation makes it so much easier. Thanks again!" - H.S.

I couldn't have said it better!

If you need some questions answered regarding your credit score, spend a little time reading these articles below. They should shed some light on just about anything you want to know. And if you still have questions, just call, text, or e-mail me.

Credit Scoring – What Makes Up My Credit Score? (1 of 6)

Credit Scoring – Payment History (2 of 6)

Credit Scoring – Balances (3 of 6)

Credit Scoring – History (4 of 6)

Credit Scoring – Mix of Accounts (5 of 6)

Credit Scoring - Inquiries (6 of 6)

Becoming Greener - What can you do?

Fri, 30 Jan 2009 19:07:35 -0600

Via Alan Langstone (Carolina One Real Estate):

How can we become Greener?

There are several different levels on the route of becoming greener.

They start with the simple things we can do every day to become greener.

This is not a definitive guide to all things green, it's more a thought provoking list to inspire you to think about and make little changes. These can help the environment and your bank balance.

Step 1 - Easy as changing a light bulb!

Change your light bulbs for compact florescent light bulbs ones. These use 75% less energy and last up to 10 times longer than incandescent bulbs.

Turn lights out in rooms when you leave and turn it back on when you come back in.

Save water, don't run facets longer than you have too.

Recycle as much as you can. Think about a composter for the garden. Instead of sending your green scraps to the landfill you can easily make your own compost for your garden.

Use re-useable bags available at the grocery stores rather than disposable plastic ones that you throw away.

Check around your doors and windows for drafts. This can be easily done using a hairdryer and a candle or just a candle on a windy day. Repair any gaps by caulking them up or installing draft excluding strips.

Turn down the thermometer on the heating/cooling system. One degree can equate to up to a 5% reduction in your heating bill.

unplug any chargers used for phones, mp3 players, etc when they are not being used. Saves electricity and removers a potential fire hazard.

Don't use a screen saver on your computer, turn your monitor off.

Turn off computers, televisions, etc when not in use rather than them being on stand by. This could add up to a 5 - 8 % reduction in the electricity you use.

Only use the dishwasher/washing machine when full.

Do the washing up by hand if it's only a few items.

Dry clothes out doors (where practical) rather than using the dryer.

Buy products that are made of recycled material or are recyclable when used or that the packaging is recyclable over other comparable products.

When you have finished with something, can it be sold or given away rather than just putting it in the trash. You can sell just about anything using the likes of Ebay.com, craigslist.com or your local web sales sites like Yahoo group lemonade-stand here in Charleston, SC. Most of these are free or at a low cost. Consider taking stuff to your local Goodwill store.

Lower the temperature on your water heater to a 120 deg F. It's safer if you have children and is nromally still hot enough. (Check that your dishwasher has a booster heater if it requires hot water at 140 deg F for optimal cleaning).

Take a shower instead of a bath.

Install water saving shower heads can reduce the water you use from 3.5 - 5.5 gallon per minute down to 2.2 - 2.5 gallon per minute. Saves water and saves heating water.

Step 2 - A little more effort!

Car share/pool for your trip to work or to collect the kids from school.

Walk or take the bicycle to the neighborhood pool or shops instead of your car.

Collect rainwater for use in watering the garden.

Add motion detectors to outside security lighting or replace with solar lighting with motion detectors.

Check and/or add insulation to your roof space. 12 inches of insulation is recommended.

If you are replacing a household appliance, check into it's green or energy saving features.

Stop junk mail or unwanted catalogues . See web sites like Directmail.com, 41pounds.org, greendimes.com and many others for information on how to go about this.

Repair or replace a dripping facet.

Maintain, service your car to keep it's engine fuel efficient.

Keeping vehicle tires at the recommended pressures reduces fuel consumption.

Undertake an Energy Audit to find and improve your homes efficiency. You can find details on this by searching the web or sites like wikipedia.com will have information.

Step 3 - A lifestyle change!

Downsize your car or change your car for a model that is more fuel efficient.

Install a rainwater collection system to use rainwater for flushing the toilets, etc.

If you are carrying out home improvements or a remodel, think about using renewable, recyclable, energy efficient materials. Recycle your waste, don't just send it to the landfill.

Install water saving toilets.

Replace old water heaters, air conditioning and furnaces with energy efficient ones.

Step 4 - As big as a house!

Have a green house designed and built .

Sell your car and use public transport for travel.

I have not included many items in Steps 3 & 4, this is for two reasons. Firstly they are major steps and can involve major costs and lifestyle changes and secondly, anyone who is looking to carry out this level of change is going to be researching the subject, hopefully.

Again the above is not a definitive list and not all changes are practical for everyone, but it doesn't take a lot of research or effort to make simple changes and these add up in savings for you and a cleaner environment.

How can this not be a good idea!

As a little teaser, we recently applied a few of these changes to our own home a couple of months ago. This has resulted in an approximate reduction of $50.00 per month in our electricity bill (compared to the same period last year. We will be making further changes.

Alan Langstone

Real Estate Agent

Langstone Team

Carolina One Real Estate
1951 Clements Ferry Road
Charleston, South Carolina, 29492

Work: 843-284-1932

Mobile: 843-709-8123

Fax: 843-202-8675

alan@carolinaone.com

www.langstoneteam.com

"Trust, Integrity & Service"

Visit MyBlogLog and get a signature like this!

Home Staging/Redesign Question of the Day

Fri, 30 Jan 2009 19:06:54 -0600

Via Mary Cockrill (The Perferfect Design, LLC):

Here is the Home Staging/Redesign Question of the Day--I hope you enjoy reading it, and commenting on what you use in your own entertaining area--I'd love to hear from you!

What is the one piece of furniture that is at the "heart" of your entertaining area in your home that you really shouldn't (can't) live without? Hint: It serves many functions, and makes you comfy, organized, and serves you without ever complaining!

The answer is, of course, your coffee table! It holds your beverage or food while you are watching your big screen tv. It politely holds your books, magazines and newspapers for you. It can be a fun "game table" for monopoly, chess, or a sponstaneous game of checkers. And, it keeps your cell phone, keys, wallet, etc. off of the floor while you are relaxing. It can, also, store items such as games, toys, a cozy throw for those cool evenings, or other items that you can "hide" in the middle of your entertaining area and pull out in an instant!

How Do You Like Your Marshmallows Toasted?

Fri, 30 Jan 2009 19:01:58 -0600

Via Michael Thornton - Nashville, TN area Home Inspector (Complete Home Inspections, Inc.):

There is nothing better than an open fire, friends and a bag of marshmallows. Some folks like to take their time and get them a golden brown, while others like to torch them to a crisp. Kinda fun to blow the fire out and eat the hot gooey mess... So what do rehabbed properties and marshmallows have in common? Read on...

Rehabs generally pose challenging situations for home inspectors as they are a blend of old and new constructions methodologies. I totally understand that neat stuff like granite counter tops, new hardwood floors, fresh paint and the like create an ambiance and eye candy that make the house more appealing to the buyer. This is great, and will certainly entice people to put a contract on a house, but is all this money wisely invested?

Granted, granite countertops are vogue and sexy - whereas a new electric panel is not. Get Real!!! Folks just don't oh and ah and rub their hands over a sleek new electric panel. No, we don't design our decor around the beauty of the grey cover. At best, we find a picture to cover the thing up! Both cost about the same amount of money, but a new counter top will not burn your new home down - a poorly wired and overloaded electric panel will.

Such is the case of this fused panel. Most all the circuits were overloaded. Years ago, when a fuse blew, it was replaced it with the same size fuse. If the fuse kept blowing, it was not uncommon to see folks install a size larger. If that didn't work, the size was increased until the demand on the circuit was satisfied. So what if, the wiring was glowing cherry red and you could toast your marshmallows? The fuse didn't blow!

I pointed out to the rehabber that the panel was badly overloaded and needed to be reviewed by an electrician - possibly replaced. After some discussion, his reply was that replacement would cost him about $800.00 - the same price as the granite counter top! C'est la vie, a bag of marshmallows costs about $2. Come to think of it, it has been awhile since I have toasted some...

Wishing all my fellow drips and tweeps a great day... 8-)

Follow me on Twitter...

By TwitterButtons.com
You can follow me on FaceBook too....
© 2009 michael thornton | complete home inspections, inc. - your building consultants for life | brentwood, tn | 615.661.0297 | www.completehomeinspectionsonline.com

No More Banks or Mortgage Bankers Needed?

Fri, 30 Jan 2009 18:59:01 -0600

Via Fred Glick B.S., ePro® REALTOR®/Mortgage Brkr (U S Spaces, Inc & U S Loans Mortgage LLC):

If you caught my CNBC segment the other day, I briefly mentioned the idea of eliminating a few steps in the process of getting a loan.

Since the federal government now controls most of the mortgage underwriting standards in the US anyway, let's try something new and less expensive for the consumer!

1. Combine Fannie, Freddie, FHA and VA into one agency. Make a set of underwriting guidelines that everyone can follow and be consistent.

2. Have the U S government guarantee every mortgage because of a small mortgage fee on every loan (like .25 of a point in fee, a la the NY mortgage tax). This way, if a loan goes into default, the balance of what is not covered by foreclosing is paid in by the fund.

3. Licenses, train, bond, background check and check up on loan originators. Then the licensees can originate a loan and have the government agency fund it directly. The Feds can then sell the loans off as new-age Mortgage Backed Securities to investors.

4. Currently, homes that go to foreclosure that are "rough" can only be bought, in cash, by investors. How about a program that gives people money to fix the home and a mortgage/inspection contingency so that homeowners can buy more homes!

5. Instead of the $7500 credit, how about a direct 5% down payment that is paid back over 15 years with 4% interest for the government. Then, if you default on the mortgage, your rate would go to 12% and it would come out of your tax refund.

This way, we can get people into homes with low down payments again, but with a real hammer if they don't pay!

6. We can offer a 100% program a la the way VA does it. Again, if you default, the top 5% would come from your tax refunds!

7. If a loan has to go to foreclosure, there will be a limit as to what a loan servicer gets (including legal fees) and when a loan goes more than 60 days, the servicing fee would be shut off unless certain guidelines are met.

We need the entire mortgage business restructured, streamlined and made more practical.

These items above get it going.

Wanna Impress Your Sellers? (and Buyers, too)

Fri, 30 Jan 2009 18:56:37 -0600

Via Margaret Woda, Maryland Real Estate (Long & Foster REALTORS, Crofton Office):

Sellers don't ask much. They just want you to sell their home. That's all. Nothing more.

Cough, cough... Did I say "nothing more"? I forgot to mention they also want you to make their home into a rock star.

Sellers want to see their home in full color on a flier to be distributed at their home; in a full-page ad in the local newspaper; on billboards (Times Square in New York would be even better!); plastered all over the Internet; on film in a starring role...

Actually, all it takes is a Real Estate Show for their house, and they're blown away. Many ActiveRain veterans know and use this product, but some of you may not have discovered it yet. This is for YOU! (And some of you who do use it may not have fully explored its capabilities.)

The obvious: It's a virtual tour, like the one I created for my newest ActiveRain listing, 8200 Hortonia Point Drive)

You choose the photos and the music, of course, but you have so much greater flexibility: You can change the order of photos after they're uploaded, or even replace them. You can move the camera focus to any point on your photo - the default could fall on the electric outlet under the table , for example, and you want it to be on the flower arrangement on top of the table. You can change the camera movement from "in" to "out" or "left" or "right". You type in the title, if you even want one, and you can choose the style and color of font. And you can make this a 30-second, 60-second, or 90-second tour that can be used on many MLS systems, made into a CD, or posted in your blog.

Almost as obvious... It's a flier. Yes, just type in the amenities, price and a few more details to create a flier, and now you can post that flier online with the touch of a single key to google base, oodle, trulia, zillow, vast, hotpads, geebo, viewr, clickapost. Talk about impressed... wait 'til your sellers hear about this! (No need to tell them how easy it is.) The best part of this flier? Your virtual tour is included in the body of the flier!

For a long time, that was all I needed to know. I was sold. Sign me up, please.

Then I took the time to view a Real Estate Show from the perspective of a home buyer, and started clicking on the links in the left navigation bar. Try it - go back and click on the sample show for 8200 Hortonia Point Drive and you can see more reasons why sellers will love you for creating this masterpiece.

Location takes you to a google map for the property, with a bubble indicating the precise location of the property.

Print provides an option to print out the flier - something you want buyers to do, right?

Mortgage takes you to a mortgage calculator with the sale price of this property already filled in. How easy is that?

Schools actually lists both the public and private schools near the property address. Can you believe that? I never have to look up that info again, I can just find out by looking at my own real estate show.

Email makes it easy for buyers to forward a copy of the show (with all these great links) to their spouse, mom, best friend, real estate agent...

Why will sellers love this? Because they know BUYERS will love it!

There have been many earlier posts on Real Estate Shows by Jeff Turner (Founder, CEO, Pres), Sarah Cooper and others on ActiveRain, so be sure to check them out. You may even find the discount code for ActiveRain members in one of those posts. In the meantime, sign up for a free 30 day trial.

P.S. There are no rules that say real estate shows can only be used for real estate. I created one for the Christmas decorations at my daughter's house, for example, or you might use one to show off a new baby in your family. I made one to promote the idea of a "staycation" displaying things to do in my neighborhood, and posted it in a blog. They even have some pre-made shows that provide the flexibiity to customize by substituting photos or changing the text.

Real Estate Shows

Someone Has to Pay

Fri, 30 Jan 2009 18:52:42 -0600

Via Tim Maitski "Secret Agent Guy" (HomeAtlanta.com):

The bursting of the housing bubble has created huge losses in wealth. Many are now upside down on their home and feel trapped without any good solutions.

A popular line in one of my kid's favorite movies, National Treasure, is "Someone has to go to jail".

When asset bubbles are burst, "Someone has to pay". It's even more of a cold, hard reality because there is no one who can simply sign a pardon and get rid of all the losses. The losses are real and aren't going away by executive order.

The big question is, who pays?

In the free market usually the parties who freely entered into a contract with each other assume all of the risks along with all of the rewards. People take out mortgages to buy homes, many with the hopes that they will be able to eventually sell for a higher price and make a nice profit. What a great deal. Instead of throwing their money away in rent payments, they become owners and make mortgage payments instead. If they get 100% financing, it looks like a complete no-brainer decision. Just by living in a home, one can become wealthy. Many people did. Many people envied the home owners who made hundreds of thousands of dollars just by being an owner instead of a renter.

But with opportunities for rewards, come the risks of being an owner. Sure, many people ignored the risks of home prices actually going down. Most thought that that was an impossible scenario.

Now many people owe $300,000 on a home that they might be able to sell for only $200,000. They're in a real bind if they have to sell right now. I feel for them. It really stinks to be in that situation.

People are looking for solutions to get people out of this unfortunate situation. Unfortunately, someone has to pay.

Some people seem to think that the government or banks should bail the homeowner out.

Either by giving them the $100,000 to cover them for their negative equity so that they can now sell at the market price of $200,000, or

they want the banks to reduce their mortgages down to $200,000.

A third alternative would be to give the potential home buyer an extra $100,000 so that they can pay the seller the full amount, $300,000, in order to pay off the mortgage. This would keep homes prices at bubble prices and we can just make believe that nothing ever happened.

Any one of these sounds wonderful at first glance. But step back and figure out where the money is coming from. If the government gives out money, they have to get it from somewhere. Government doesn't create any wealth or real money.

It can only take it from one group and give it to another. So it can collect taxes from the many and give it to the fewer homeowners in trouble.

It can borrow money which places the burden of repayment, with interest, on to the next generation.

It can just print more fiat money which then eventually devalues all of the current dollars in circulation. This is basically just another form a taxation but it's more invisible and harder for people to pinpoint the blame.

One way or another, someone has to pay.

Forcing the bankers to forgive the $100,000 usually sounds good to many people. But follow that through and see who really takes the hit. All of those mortgages were packaged into securities that were bought by investors. Many of the investors were people like you and me who were just trying to make a little interest off the money that they worked so hard to save. Many have retirement accounts that have funds that invested in these "safe" bonds. So if you require the banks to reduce the mortgage amounts, then all of these securities get reduced accordingly and anyone with any exposure to these securities takes the losses.

The next thing you would need then is to have the government step in to guarantee all of these mortgage securities. With what money? See the paragragh above about how government gets their money.

I'm sorry to say that there just isn't any clean and easy solution to this mess.

I have confidence that when government steps aside, the true free market process is the most efficient mechanism to get things where they need to be.

Government has it's role, but not as the entity that decides the winners or the losers or the one who tries to spread the losses around. Their role is to prosecute fraud and to provide transparency in the markets so that people can make the best informed decisions.

Doing nothing sounds so lame and unresponsive. But many times doing something just for the sake of trying to look helpful, actually worsens the situation and prolongs the agony.

The sooner the losses are taken, the sooner we can get back to some sanity.

Just Announced - Good News For Renters and Owners of Homes That Get Foreclosed Upon That Are Freddie Related.... Freddie Mac Will Allow Renters to Stay in a Foreclosure

Fri, 30 Jan 2009 18:50:46 -0600

Via Rick Hauser ABR GRI Managing Broker/Owner (Relocation Advisors Group Inc.):

Yahoo Finance Article

On stuff like this - it pays to read more than one article - as each article has extra info... So - I've provided the articles out there thus far...

Mortgage finance company Freddie Mac said it will allow some borrowers to rent out their homes after losing them to foreclosure.

*** Comment -- the foreclosed upon owner gets to keep the rent after they officially lost the house???

It goes on to say....

The goal of the new policy is to prevent properties from becoming vacant so they won't fall into disrepair.

***Comment - now - I really don't think that renters will be kicking in anything to repair the owners property. But it would help in keeping the heat on during the winter vs. having to winterize it etc. and keeping the snow shoveled - and help prevent vandalism. Since some renters can't count on a distressed owner fixing something critical such as a furnace - my bet is that a renter in that situation might just get the fix done to have the heat and then deduct it from their rent payment... (not always authorized of course - in their rental contract) But per another article - Freddy is going to allow owners to rent back after being foreclosed upon - at market rates. Even then - it is debatible how much of a repair they would spring for. So - Freddy is now getting into the landlord business....... Wonder how much in govt money and new hires that will cost to administer...

The article goes on to say....

Freddie Mac said it will allow renters to remain in their homes even if their landlord enters foreclosure. Freddie currently has about 8,500 properties in the foreclosure process, but many of those are vacant.

"Keeping foreclosed properties occupied and in better repair will support local property values and promote a faster recovery in the housing market," said Freddie Mac Chief Executive David Moffett.

Fannie Mae said it has stopped about 20,000 foreclosure sales and halted 6,300 evictions of owners or renters this winter.

"Under Freddie Mac's new policy, tenants and former property owners need to demonstrate that they have enough income to pay the rental bill."

*** Comment -- former property owners?? They aren't paying the rental bill. I think someone mis-worded this in the release....

It goes on to say....

Freddie Mac also said it would consider reinstating a mortgage for those borrowers who can qualify for a modified loan.

Both Fannie Mae and Freddie Mac also said Friday they would extend a previously announced suspension of evictions through the end of February.

***Comment -- (Presumably - to keep people from having to move in the cold? More likely - perhaps they just want the heat to remain on during that time....)

But a Marketwatch article - states that is is March - not Feb (like the Yahoo Finance article) - in the headline - but not in the body of the article. Go figure!

Marketwatch Article

And that article states:

"It may be that a borrower can afford a market rent price but can't afford all the ancillary costs of maintenance," said Freddie Mac spokesman Brad German.

*** Comment - Which is precisely my point. Why would they kick in for maintenance?

It goes on to say..

"This would get them a smoother transition to find a new home or until Freddie Mac sells the home."

*** Comment -- Well - they sure won't be buying a new home after that! Renting one? Perhaps - if they have more than a few months deposit to put down.. since their credit will be trashed. "Place to live" would have been better words to use (such as in a USA Today article)

"Fannie Mae will also provide financial assistance for a "transition" to individuals that decide to vacate the property."

*** Comment - I wonder how the owner will know about this. A mailing by Fannie to them?

However, he argues that program will have costs. Fannie Mae and Freddie Mac will likely need to hire property managers to collect rent. "Fannie Mae is not set up to be a landlord," he said.

*** Comment - exactly my point from above....

USA Today Article

Details of the program:

•Leases will be on a month-to-month basis.

•Tenants and homeowners will only have to pay market-value or existing lease rents, not the mortgage payments. Freddie Mac will hire a property management company to determine that amount.

•Tenants and homeowners must be able to show proof that they have enough income to pay the monthly rental amount.

•Freddie Mac will also explore loan-modification options that might be available for some borrowers.

In mid-December, Fannie Mae also rolled out a policy that allows renters in a property that is being foreclosed on to rent that home rather than be evicted. It does not include homeowners. Up to 10,000 families are expected to be helped by Fannie's rental policy; Freddie expects about a 30% acceptance rate.

The Federal Reserve this week announced a policy to help some distressed homeowners avoid foreclosure. The Fed said it would work with companies servicing mortgages now owned by the Fed to modify qualifying mortgages of homeowners that are 60 days or more delinquent on payments.

Fannie and Freddie combined own or guarantee about half of the $10.6 trillion in outstanding U.S. home loan debt.

7 Things I Need My Buyer Clients To Know...

Fri, 30 Jan 2009 18:49:31 -0600

Via Kim Daugherty, McKinney TX REALTOR, Broker (d + b real estate):

I have been in real estate since 2001. Since then, I have spent a good part of my time in my career devoted to being a BUYER'S AGENT. I know buyers. I like buyers. I LOVE first-time home buyers. But with every client I work with, I am continuously reminded how little the general public knows about how real estate agents operate.

Myths abound as to the secret lives of Realtors. So, in an effort to clear things up, I decided to let you in on a few important facts about my career.

1. I don't can't work 24/7. If I did that, I would be no good to you. I have a family. I like to get to bed at a decent hour. I celebrate holidays. This would seem like a given, but I've had clients call me at 11:30 at night. Would you call your CPA at that time? Your doctor? No. Please respect the time of day you call. I'm happy to listen to your message, but understand that it might be during normal business hours that I get back to you.

2. Not all Realtors are Millionaires. We do not work on salary. If we don't sell something one month, we don't bring home any money. We are not paid hourly, by the mile, or by the number of showings we do. So, when you wonder why we ask a few "intrusive" questions before putting you in our car to show homes, it's just that we want to make sure you can actually afford to buy a home, and that we aren't wasting either of our time by looking at the wrong homes.

3. Clients are not HANDED to us. Our company does not simply hand us clients ready to sign a contract. This was a big misconception that I had to overcome. When I left RE/MAX and Keller Williams to start my own brokerage, some people said - "Well, where will you get your business from?". Answer: the same place I've always gotten my business - through referrals,networking, and smart marketing. I like to ask my clients when I first begin working with them to keep me in mind for anyone they know who needs my services. That way, I'm not spending all of my time working to get more business, I can focus on the clients I have and do a better job for them in the end.

4. My Crystal Ball is Not Working. Oh, wait...I don't have a crystal ball. I don't know what price the seller will take. I don't know how long it will take a home to sell. I don't know how many houses we'll have to look at before you find the right one. It is my job, though to find out as much information as possible and give that to you. It is my due diligence to research a property, to obtain disclosures and as much info as I can get from the other agent to help you make the most informed decision possible.

5. I'm working for YOU! Now, I know there are some not-so-truthful agents out there that spoil it for the rest of us, which is why you need to do a thorough job of selecting your agent. It is my JOB to protect YOUR best interests. I will not go behind your back. I will not lie or decieve you. It is not in my best interest. It would only hurt my relationship with you, in turn, stopping any kind of referrals you might send my way. I'm bound by the Realtor's Code of Ethics on this one!

6. I can sell homes not listed by me or my company....That is the benefit of belonging to the local MLS. By being an MLS member I participate in broker reciprocity - we can all show each other's listings, thus allowing us to uphold our duties in #5.

7. ...And in other cities OUTSIDE of the city that my office is located in. Just because my office is physically located in McKinney, TX, doesn't mean I can't sell outside these limits. Ask your agent what areas they serve. Chances are, they can help you in that city or help you find a reputable agent that does.

Whew, now that I've got that off my chest I feel a lot better.

Bottom line is this - I love my job. I do my job well. I just want you to understand the basics of how I work, so I can help you better! So let's do it - interest rates couldn't be better, and McKinney, TX and the surrounding areas are a Buyer's Market right now! Now is the best time to find your dream home...

“Crunching the Numbers To Find the Turnaround” - from Friday at Inman NYC

Tue, 13 Jan 2009 21:32:52 -0600

Via Scott Sambucci (Altos Research):

(Author's note: This article was also published on Seeking Alpha on 1/13/08.)

At last week’s Inman News Real Estate Connect NYC 2009 conference, several key suppliers of real estate market information participated in a panel discussion – “Crunching the Numbers To Find the Turnaround” - moderated by Alison Rogers, Licensed Salesperson and Author of Diary of a Real Estate Rookie. The participants discussed:

Key Real Estate Market Indicators

Advice for President-Elect Obama

Inflation

Projections on the Housing Market Recovery

Here are the notes of the key comments provided by each panelist:

Michael Simonsen, CEO, Altos Research Corporation

Key Indicators – Focus on non-traditional real estate market statistics beyond price information such as time-on-market, number of current properties with price reduction, and current inventory levels by zip code and price level. By mapping out a number of key determinants, a more comprehensive view of the real estate market’s real-time conditions is available. Everyone knows the price headline – “What else can be used to give buyers and sellers the opportunity to make an intelligent decision?” (Altos Research releases a national housing report each month that is available for free.)

Advice for President-Elect Obama – Any rescue plans should focus on the acute problems – chronic problems that require longer term and structural changes. Short term programs designed to stave off foreclosure for six months will not solve the systemic economic problems. The path to jobs is economic growth, which means investments in education, and allowing for innovative people to enter the United States and contribute to future economic development.

Jonathan Miller, Co-Founder, Miller Samuel Inc.

Key Indicators - Look at transaction activity, as the level of sales activity gives you a clue on the direction of the price. About 18 months ago, there was a contraction in the number of transactions. While credit stabilization will be a key indicator, it may take another 18 months for the credit market to stabilize.

Advice for President-Elect Obama – The last seven years have been a mortgage boom more than a housing boom. The housing sector is what manifested the mortgage boom. The new administration should focus on smart regulation – comprehensive regulatory structure. There has been an increase in regulation every year for the past five to seven years, but they clearly have not been effective. Get agencies in sync to create a stable and safe playing field. Missing piece right now is the trust.

The Recovery – A more stabilized credit environment is necessary first. Every month that passes in getting things settled, inventory rises and consumer confidence falls. If one assumes improvement in second half of 2009, then the recovery will begin in another year or two with a full recovery in “several years.”

Leslie Appleton-Young, Vice President & Chief Economist, California Association of REALTORS

Key Indicators: Look at the number of foreclosures in the next 30-, 60- and 90-day periods. Remember that many markets are bipolar - Distressed/REO/foreclosures versus rest of the market. (Here’s a good example from Los Angeles, CA – comparing price trends by price level. Strength at the top of the market and price weakness elsewhere.)

Inflation - There’s a tremendous amount of liquidity in the market right now and it’s only going to get bigger with the stimulus package. Down the line, we’ll see a return to a very significant level of inflation compared to what we saw. On the upside, high inflation has historical spurred the housing market.

The Recovery – In terms of transactions, California was at the bottom in 2007, as transactions increased 12% in 2008. While year-on-year prices are down 40%, it’s clear that much of the action is in the distressed part of the market. Markets work, markets clear. With the current economic environment, there’s now more risk in the high end than there was a year ago.

Terry Loebs, Managing Director, MacroMarkets LLC

Inflation – “The forecast calls for pain” because of the pending stimulus package. While perhaps necessary in the short-run, the plan will come at a cost.

Advice for President-Elect Obama – Develop better transparency in home pricing because huge inefficiencies exist in pricing market assets.

Pete Goldey, Chief Information Officer, Onboard Informatics

Key Indicators – Stay local because real estate is local – it is difficult to look nationally to see one indicator, therefore local real estate market data should be a primary source. In California, transactions are largely distressed properties. What happens when those clear? Once distressed properties leave the marketplace, there is a better chance to see what is really going on in the traditional market.

Advice for President-Elect Obama – Mortgage rescue programs are bad. While it is important for people to stay in their homes, those not requiring assistance will ask – “but what about me?”

Alan Langstone Real Estate Agent Langstone Team Carolina One Real Estate 1951 Clements Ferry Road Charleston, South Carolina, 29492	Work: 843-284-1932 Mobile: 843-709-8123 Fax: 843-202-8675 alan@carolinaone.com www.langstoneteam.com
"Trust, Integrity & Service"
Visit MyBlogLog and get a signature like this!

Realtor Diane Bell's Hilton Head and Bluffton Real Estate Blog

NEWLY LISTED IN OYSTER REEF CROSSING, HILTON HEAD PLANTATION

It Ain't Easy...Being Green: Earth Day 2009

Top 10 Things I Love About Real Estate!

YEO - Numbers That Mean Something

Last Thursday I wrote about Why Twitter Follower Counts Mean Nothing.

The Squeeze Play...In Baseball Or Real Estate...!!!

MOTION FOR SUMMARY JUDGMENT OF FORECLOSURE - DEFEATED! AND HOW I DID IT

Google, Yahoo and Microsoft are staging the web

A four letter word

Stimulus Bill Extends Energy Efficiency Tax Credit

How Much Should You "Put Down"?

Tips from Our Mexican Taxicab Drivers on How to Develop a Referral Only Business

The Constipation Effect of Short Sales

Jim Smith, owner of Golden Real Estate, had this to say about them this week in his online real estate column: "Having listed a short sale myself, I have experienced this colossal waste of time, and I'm no longer willing to list such homes."

Smith said banks won't tell you the amount they will accept until you bring them a "live" contract, and the deals usually fall apart because it takes such a long time to get an answer from the lender.

Lou Barnes, principal of Boulder West Financial, agrees. There are so few short sales being completed that they aren't worth the effort, Barnes said.

"I was teaching a real estate class and I told my students that they would be better off doing their laundry than wasting their times on short sales," Barnes said.

Credit Scoring - Balances (3 of 6)

CAN WE FIX IT? YES WE CAN! - Some fix-its for some common problems.

Credit Scoring - Payment History (2 of 6)

Credit Scoring - What Makes Up My Credit Score? (1 of 6)

Credit Scores? What to do in Your Scenario ...

I couldn't have said it better!

Credit Scoring – What Makes Up My Credit Score? (1 of 6)

Credit Scoring – Payment History (2 of 6)

Credit Scoring – Balances (3 of 6)

Credit Scoring – History (4 of 6)

Credit Scoring – Mix of Accounts (5 of 6)

Credit Scoring - Inquiries (6 of 6)

Becoming Greener - What can you do?

Home Staging/Redesign Question of the Day

How Do You Like Your Marshmallows Toasted?

No More Banks or Mortgage Bankers Needed?

Wanna Impress Your Sellers? (and Buyers, too)

Someone Has to Pay

Just Announced - Good News For Renters and Owners of Homes That Get Foreclosed Upon That Are Freddie Related.... Freddie Mac Will Allow Renters to Stay in a Foreclosure

7 Things I Need My Buyer Clients To Know...

“Crunching the Numbers To Find the Turnaround” - from Friday at Inman NYC

CAN WE FIX IT?
YES WE CAN! - Some fix-its for some common problems.