George,Cheryl and Ben Brunton's Blog

Short Sale or Foreclosure, Which is Better for Me?

George,Cheryl and Ben Brunton (Walk - In Real Estate) — Thu, 21 Jan 2010 13:21:32 -0800

Short sale or foreclosure what is the difference? Which is better for me. Being in the real estate business and dealing with these two terms all day, it is still a little surprising that so many people are still asking that question. But then, if you have no interest in real estate you probably don't hear much about these two and very different financial situations. More

Why are the banks destroying themselves?

George,Cheryl and Ben Brunton (Walk - In Real Estate) — Mon, 07 Dec 2009 13:10:34 -0800

As a business owner for much of my life and a business consultant for almost 10 years, a quick look that this company's counter offer shows some huge problems ahead for B of A. Large companies have a tendency to create silos of different interests. A silo in these terms means that different departments have different objectives that can conflict with other departments or even the best interests of the company. Bank of American is classic and they must be hurting themselves immeasurable.

Here are a couple for first hand experiences that seem to be occurring with a lot of us Realtors(R). Bank of American responded to saving them from for closing on a residence.
1.It took an average of almost five months to make a decision about a short sale transaction. It can be very tempting to protect the bottom line by putting off the big hit in the inventory with a sale rather than the small monthly payment. In a declining market the big hit keeps getting bigger. Owners get more desperate and do less maintenance. Owners may leave a vacant property that invites vandalism. Delay increases the possibility for counter tops, stoves, lights and fan to be sold on Craig's List.
2.Unable to move the transaction forward without prodding. Call B of A and wait 30 minutes to speak to someone. Call them back and get a different story. Only a bank or a government agency could make a fairly simple process so complicated.
3.No accountability on their employees for their own time lines. It is the impression of every agent that I have heard give an opinion about B of A that Bank of American does not live up to their own process guide lines. If a level one negotiator is supposed to do something in 30 days the escalation takes another two weeks! And expect to do another escalation in level one and/or level two.
4.They cut the commission of the Realtor(R). Realtors(R) should be Bank of America's strongest alleys. The agent who brings a buyer to a short sale is saving the bank a bundle. Their reward – cut commissions. Realtors(R) bringing a buyer to short sale puts the entire commission at risk because buyers get tired of waiting. They need a home. Frequently. Buyers get burnt out and quit! Realtors(R) will have to wait for months for a commission check while Bank of America stares at their navel. Of course Bank of American must have its own paperwork completed perfectly and then demand rapid closings without warning.
5.Double cut the commissions for doing both sides of a transaction. An agent puts two commissions at risk, waits months and months for a simple decision and gets a double hit on the commission. That will make friends. Bank of American doesn't seem to understand that with a double hit on the commission, paying broker fees and the hours spent waiting on the phone of Bank of American, there is no profit margin.

Apparently, they don't understand that many of our buyers ask us for lender information. Attend a meeting of Realtors(R) and Bank of America would be surprised to hear how many agents refuse to do business with them. Gee do you think Bank of American is getting a lot of referrals from agents? Dah!

Some of the greatest accomplishments of a Realtor does not include buying or selling a home.

George,Cheryl and Ben Brunton (Walk - In Real Estate) — Fri, 16 Oct 2009 18:53:29 -0700

Prior arriving at a listing appointment, a quick excursion of the surrounding neighborhood can be quite insightful. On this occasion turning off the main road on to a side street proved enlightening. One block towards the appointment were two homes that could fit into a Jeff Foxworthy joke book. A good thing about Arizona is that tumbleweed usually can not hide a pick-up truck buried in the front yard. These two homes were acting like a neon sign “NO HOA IN THIS NEIGHBORHOOD!” Parking the car across the street from the listing appointment helped conceal a home that rejected its owners many months before this visit. That empty vacant look of a home with no family put sorrow in the hearts of all that passed by.

Crossing the street and meeting the cheerful owner dispelled the negative emotions. A pleasant smile and warn but not too firm handshake began the mood change which continued to accelerate passing the sound of an artificial waterfall. Once in the door meeting the wife and seeing two teenagers sitting on the couch gave the comfort of a nice warm family home. People who had hopes and dreams that were being hindered by lack of information.

Now comes the getting acquainted and what the family wishes to do with their home.

Owner - “We were working with another agent. He has helped us to find another house we want to buy but we need $170k from this home and he says he can only get $161k.”

Why? Owner – “This other home is a bargain! It is 5500 sq ft. It has been listed for months. It is surrounded by mobile homes. But we want this to be our dream home where we can live for years.”

Owner – “My credit score is 617 and I need to get $170 for this house or I can’t get the other one.” Owner – “I only have 2 credit cards with a maximum of $800, no car payment or other credit other than the house..”

Suggestion 1 – The market is the market. Even if a buyer would agree to purchase this home, it will only appraise for about $155k. So a bank will only loan up to appraised value. The buyer will have to come out of pocket for the difference. Don’t expect the majority of buyers to be able to do that.. Since the average price for homes has increased for the last three months, you might consider waiting until the market will pay you the price you must have to move.

Suggestion 2 – Improve your credit score! The home of your dreams is over $300,000 ½ point interest is almost $100 per month in payment and an extra $35,000 in interest. Go to a credit union or bank get a larger limit credit card and a line of credit. Keep all balances under 50% of credit limit at all times. Home seller started the plan looking forward with more home that before the meeting.

Cash Secrets from a Peoria Arizona Real Estate Agent

George,Cheryl and Ben Brunton (Walk - In Real Estate) — Sun, 04 Oct 2009 17:25:05 -0700

Cash Secrets from a Peoria Arizona Real Estate Agent

The cash secrets from a Peoria Arizona real estate agent are proven cash flow techniques. As a Peoria Arizona real estate agent many people think I take people to see houses, write up some forms and collect an enormous check. Actually, the real value of using a professional is the additional experience in other areas and may have some cash secrets that are valuable in real estate.

A Peoria Arizona real estate agent shows homes. But if that Peoria Arizona real estate agent had spend nine years as a business consultant, there is information (secrets) that can be very valuable in your real estate transactions. Relating some recent activities may help illustrate the point. Non-home owners frequently express two main reasons why they aren’t attempting to buy a home. Since the average net worth of a renter was $1,500 verses $175,000 for a home owner, the economic and social improvement makes a very significant improvement to the whole family:

Home owners change jobs less frequently.
Their children are more likely to graduate from high school.
Their daughters are less likely to have children out of marriage.
They are healthier.
They are less likely to be robbed.
They are less likely to be a victim of a violent crime.
They are more likely to belong to community groups

The benefits of home ownership goes on and on and on. This information comes from several studies. One main study was conducted by the National Association of Realtors . So I as a Peoria Arizona real estate agent am always looking to provide even more value than the business ownership and consulting experience. I received training to coach my clients to not only improve their score but how they can better afford their make your home mortgage payments. Additionally, this coaching included tools to help them make their paycheck go farther than they ever thought possible. I am a Peoria Arizona Real Estate Agent not a credit repair person. The improvement in credit score is only a side benefit of the strong cash flow techniques that I as a Peoria Arizona Real Estate Agent share with my clients.

This first video is an introduction to the “Cash Secrets of a Peoria Arizona Real Estate Agent” explains why anyone can feel confident that there is real substance to the video. In addition to being a Peoria Arizona real estate agent, I have a background in financial decision making:

15 years as a franchise business owner.
10 years as a multiple business owner.
9 years as a business consultant.
Elected President of two Professional Associations.
Elected to the Board of Directors to a National Professional Association.
Worked with over 600 businesses.
This experience included working with business owners, accountants and attorneys to make decisions affecting the livelihood of thousands of families.

I as a Peoria Arizona Real estate agent hear two very common themes as to why someone doesn’t purchase a home. 1“My credit score is too low.” And 2“I just can’t afford to buy a house!” So introducing these people to different ways to use what they have their present cash work more efficiently has put several of these folks in homes. Most Realtors® know some credit repair. And I as a Peoria Arizona Real estate agent see my clients better able not only qualify for a better home mortgage, but since credit scores have so much to do with pricing like car insurance, health insurance, home insurance and many other monthly expenses, they save thousands every year.

Here is just one part of the cash flow enhancement program.

There about 25 different ways for people to stretch their cash, get out of debt and pay off a mortgage in a small fraction of the 30 years that most people choose as a mortgage period. All these improvements can come usually with the same income and with very little cutting back on life-style spending. Here is one example of how to help improve a client's lifestyle as a Peoria Arizona Real estate agent. I had a couple, Mr. and Mrs. Client, who were close friends in Sun City West. They were in a beautiful duplex. Mrs. Client, the wife, had impeccable taste and the property was absolutely the best home for showing in the neighborhood. They had family issues with grandchildren that made staying in Sun City West very difficult. They made up their minds to list after the majority of the valley's retirement communities were getting ready to leave for their summer residences in cooler climates. That meant that most of the potential buyers were thinking more about going back home than purchasing a new residence in Sun City West. I as a Peoria Arizona Real estate agent created a killer visual tour.

I as a Peoria Arizona Real estate agent held open houses at various times of the day several days of the week. When I as a Peoria Arizona Real estate agent first started in March I would get about 2-3 showings. In less than 30 days almost no one would come to the door. It looked like they had missed the market and would have to take their home off the market until September when the “Snow Birds” returned. Then one couple who already owned a property in Sun City West came to view the home. They put in a very attractive offer. One of the very nice terms of the offer was that since the buyers were going back to their summer home, my clients could stay and rent their property until they were able to purchase their new home. While all this was taking place, the Phoenix real estate market changed very rapidly. The market went from a buyer’s market to a seller’s market overnight. I as a Peoria Arizona Real estate agent give my clients access to the MLS through a service called Home Scouting Report. This is one of the very few systems where the home shopper can create their own searches, save them in a password protected area, and they automatically get updates on the properties in their notebook and the MLS searches for the homes in the area. My clients can look every day and I as a Peoria Arizona Real estate agent would take them out to see properties. I soon found that properties were listed as active but already had contracts signed by the sellers. Many times either a bank was involved or the bank doesn’t make decision quickly. Day after day, I as a Peoria Arizona Real estate agent would show homes, they would put in a contract and no results. Finally, I started pre-screening the listings. I wouldn’t take them to a property unless the listing agent returned a call and verified that the listing really was still available. Then comes the fateful day when I as a Peoria Arizona Real estate agent call an agent. I would ask him if my buyers could still put in an offer. He said that he would wait until I as a Peoria Arizona Real estate agent could send in an offer. In goes the offer and my clients get their home. Yea!!!!! Now comes the part where I really do my job. Most people don’t know that a real estate transaction takes about 45 people of different occupations to get the transfer of a property done correctly. One thing I hesitate in doing is recommending other professionals. Some times it really makes a difference. For example,I recommended two service providers. The home inspector and the pool cleaner. The home inspector did a great job! I as a Peoria Arizona Real estate agent have been recommending him because he carries the equipment to find problems that other inspectors can’t find. One time he was inspecting a home where I was the buyer agent when he found a water leak IN THE WALL. I was happy when he climbed into the attic and found missing struts. Apparently, when the air conditioning company installed the systems when the home was built nine years before this inspection, they removed some of the roof structure and didn’t replace it when they were finished. This was a good reason to get back to the negotiating table with the bank that was selling this foreclosure. The appraisal was below our offered price and we have a structural problem. Normally, an agent would be very disappointed thinking that commissions were going to be missed because this deal could fall though. I as a Peoria Arizona Real estate agent on the other hand had already discussed with Mr. and Mrs. Client that I hoped we could find a reason to go back to the negotiation table. Since I am a Certified Negotiation Expert and had a good working relationship with an excellent listing agent, my clients not only saw the price of their new home lowered by $15,000, the bank also repaired the roof. All Mr. and Mrs. Client had to do was to clean the carpets, put in granite counter tops and paint the interior of their new home. I was very satisfied that I as a Peoria Arizona Real estate agent had helped them along the way. Another client had just taken a real hit in their stock portfolio and were looking to a way to generate passive monthly income. After many conversations and soul searching they decided that I should help them find rental properties. Now I had the job of not only finding them the home of their dreams, I was to help them replace their lost monthly income. As a Peoria Arizona real estate am not qualified to implement retirement entities, so I introduced them to associates who helped them convert their IRAs and Roth IRAs to self directed so they could buy properties on their own. So while Mr. and Mrs. Client and I were looking for their new home they were also looking at investment properties. I have some experience with investment properties as well as a strong background in business. I have owned as many as three businesses in two different states simultaneously. And I also spent nine years consulting with small business. I knew how to put together a business plan. The Clients really couldn’t make up their minds if they were looking for single or multi-family units. They had decided on real estate as investment because the market had dropped so far that great deals were available and positive cash flow was attainable. The Clients already have another rental property and knew many of the challenges with rental properties. When the finally moved into their new home, they were ready for a rest they have a duplex ready to renovate and a short sale offer on a nice townhouse. Keeping up with the numbers is critical, especially in a volatile market like we are seeing today. As Peoria Arizona real estate agent, I have found "The Cromford Report" to be a great tool. As you can see, a real estate agent does more than show homes and do paperwork.

This Year's Monthly Active Listings and Median Sales Price in Peoria Arizona

George,Cheryl and Ben Brunton (Walk - In Real Estate) — Sat, 03 Oct 2009 20:11:13 -0700

Here is the year's monthly active listings and median sales price in Peoria Arizona

Active Listings Median Price

Jan. 1584 $180,000

Feb. 1586 $184,669

March 1580 $165,625

April 1422 $172,750

May 1231 $169,314

June 1119 $170,000

July 1015 $166,000

August 1030 $166,000

Sept. 1018 $165,000

Does it look like in March prices hit bottom and have stabilized? The inventory has been steadily declining by more than 30%. What does it mean? In today's market, no one knows! Will things change if the tax credit isn't extended? Are the banks intentionally holding back inventory to stop price decline? One thing that is certain, its not the best time to sell? Well, if you are moving up it might be a great time to acquire your trophy home. If your job is secure. This looks like a good year for gamblers and a very uncomfortable year for the timid.

Thank you Cromford Report.

What's Happening in Peoria Arizona

George,Cheryl and Ben Brunton (Walk - In Real Estate) — Sat, 03 Oct 2009 17:32:25 -0700

Here are a few statistics on what is happening in the Peoria Arizona market.

                          Normal Sales Pre-Forclosed Bank Owned Peoria Active Listings 41.67%      44.8%          13.53%
Monthly Sales           27.91%      25.58%        46.51%
$/SF Listings          $153.23      $87.29 $89.50
$/SF Sales             $103.08      $88.29         $75.37
Days on Market        174           127               115
The sales to inventory shows there is 3.6 months of inventory.

The market is considered a buyer's market when the inventory is at least a 6 month inventory.
These statistics are provided by "The Cromford Report." They are the most up to the minute information providers I have been able to find.