Ahh the New year.. And with it hopes, dreams, resolutions and of course GOALS!!  Do you have yours set?  Do you have a business plan?  Last year many Realtors saw a decline in business and are hoping for a more profitable 2009, but you have to do more than just hope.  Now is the time for action.  If you don't have a plan set in place how do you expect to pull yourself out and up to where you want to be financially?

Here are a few tips to get you rolling on your plan for excellence in '09.

First you need to set an attainable  goal and how many sides you need per month to reach the goal.  Your goal may be monetary, or it could be a purchase you have had your eye on, or a vacation, either way a goal is a goal.  That is the easy part, not figure out how you are going to do it and who will make sure you stay on path?

If there is nobody holding you accountable to your day to day practices that will lead you to your goal, how will you possibley stick to the routine?  Share your plan.  Tell a close friend, spose, or business partner what you are doing to meet your goals for 2009 and make a pact to meet with them once a week and discuss not only your goals, but their goals as well, and what they did to reach them.  Usually a business plan for realtors have a certain number of contacts that they have pledged to reach each week, or FSBO's they will call each month, etc..If you are taking a short cut and not reaching out to those people, are you going to call yourself out and ask why? 

It's easy to put the year on paper, but the hard part is sticking to the plan and actually following through. It's like your New Year's resolution to lose weight.  You go to the gym on you own for about a month and then slowly quit going..If you hired a trainer you would be more likely to stick to the plan because someone would be calling you out. 

This year, add some fat to your business workout and train to be your best by making sure someone is jogging along side of you pushing you all the way!!!

Well, as some of you know, I've been busy flipping a house that I purchased from a foreclosure auction.  It's been 4 months since I've purchased the home and I am still working, but getting closer to being finished.

Flipping takes a lot of time, especially when you are working around a full time job!!  Lucky for me, being a Realtor gives me some flexibility.  I still wish that I had finished a month ago, but it looks like I will be working for at least one more before I will say I am totally finished with the project.

I have been blessed by a renter!!  I sold a home for a man and he was not quite ready to move since he had another property out of state which has had trouble selling, so instead of living out of a motel, he has been staying in the home while I am working on it...This has worked well for me since he is helping me with the payment of the house, and he has been there to tell me if something is not working like it should.  We had a problem with the hot water not flowing correctly and so we were able to fix it.  I would not recommend renting a flip to just anyone...I am just very lucky that I know this man and know that he will not sabotage my efforts.  He actually fixes up homes and sells them for a living and knows how important it is for the job to be done.

Extra expenses have popped up..like property taxes!!  I was hoping to be done by now and not have to worry about it...

My child has grown to hate our "Habitat for Insanity" house since we spend so much time there and away from her.  We thought she would want to help out, but it just isn't her cup of tea. 

Habitat for Insanity has been what my Husband likes to call the project.  He sais we were insane to take on such a project..It takes a lot of our free time, money and yes some of our sanity has slipped.  He gets a bit aggrivated at some of the projects, but for me it's been a fun learning experiance.

Well,  I went to the court house to file my complaint about the former owner of my flip not vacating.   After filing a complaint, the woman would have 20 days to respond before going to court..

Heck, another 20 days to wait and more money out the window...

I called the water department and had the water shut off to the house...

Suddenly she is more motivated about moving!!!  Maybe this week end she will be out and I will be on my way to getting the home on the market!!

Okay, When we last left I was excited about my new flip house..actually, my first flip house.

It's been almost a month since the purchase and I have not even started working on the place because the previous owner is refusing to vacate.  She feels she still has a claim to the home, and has a right of redemption.

Here is how it works in Idaho:

If a home is sold at a trustees sale, like the one I purchased every lien holder is notified of the sale far in advance and has an opportunity to bid on the property.  Even the property owner can bid on the property if they have the ability and keep it. 

At the sale, usually if there is a 2nd lien holder, they will show up and bid on the home, take over as the new owner and then the home is eventually put up on the market as an REOproperty.  This will happen if the lien holder believes that they can turn around and sell the property and get their money back.

In the case of the home that I purchased..the first lien was the small one...the secondwas the larger one due to a refinance in 1996.  The second lien holder did not show up for some reason or other..rumor has it that the company is filing bankruptcy and could not come.  The previous home owner feels since she had two deeds of trust on the property and is still making payments to someone for the 2nd she still has the right to the property.

Well, when someone buys a property at a trustees sale, all other liens are erased from the property and the new deed is recorded in the name of the higest bidder..in this case ME!                          

After 10 days the new owner can then occupy the property.  In my case, the previous owner has decided to stay, even contacted an attorney.  We filed a 7 day eviction notice, (only 3 days are required), served by the local sheriff.  After the 7 days were up, they still decided to stay.  The next step is to file a writ, have an attorney sign off on it showing we have legal right to the property.  If they do not get out within the set time, then an officer will come, remove the people, and all their belongings.  Their personal property are then put into storage, and after it is decided how much they owe me, the attorney, and the sheriff, the property is sold at auction and the funds passed out to all who need paid.

I compiled all the information from the title companies, the paper trail showing each lien holder had contact, and everything has been done right.  I informed the attorney that I plan on filing the writ the first of the week, giving them time to move over the weekend before the sheriff comes and they risk losing all their stuff. 

I have thought of turning the water off, but I'd hate to think of the mess in the bathroom that may be left behind...

Oh and as for a right of redemption???  Not with a trustee sale.  None.  Once the house is sold at auction, it is sold and that's that.

I'll keep you all posted on what happens next!!

I'm going to do it...yep, I am flipping a house in todays not so hot market...

I'm not too worried since I got it at a very good price, if it doesn't sell I can alway rent it...but it is still kind of scairy.

The people are still living there, but they are packing...We have not given them the heave ho.  It will probably be easier if we didn't..Who knows what kind of people they can turn into if we were not easy going...so for now we are starting on the yard work and the garbage hauling. 

Lucky for us it is in pretty good shape...I will have to rip out all the carpet and paint over the hot pink living room, and give the kitchen and bath some love...Over all I think it will be a good experiance and if I not only look at it as a way to make some money, but as some family time I think it will all go well.

A house across the street just went on the market last week and I went to look at it which is really going to help me.  Another thing that I have on my side is since I spend so much time with buyers I know what they like and dislike..

Wish me luck!!

As we all watch the gloom and doom on the news about the housing market it makes our buyers and sellers all a little nervous. 

I'd just thought I'd share a bit of good news about our lovely area!

As of May 7th we have 425 homes on the market in the valley.

In the past 6 months, we have had 275 residential sales.  This has been about the same for quite some time.  Not much of a change, thank goodness.

The average sales price has been $167,831, down just a tad from around $168,900. 

Our average days on the market has only been 108.

I tell my sellers not to worry.  As long as the home is priced within reason there is no reason why it will not sell.  If you bought the homw only a couple years ago, don't expect to make big bucks because things are right around the same as they were when you bought it.

Well with all the news about how bad the market is, it is no surprise to me that people in my little community believe that the market is in a slump here as well...

Things are actually going well here.

Currently, there are 315 home on the market in the valley.

In the last 6 months, 217 homes have sold with the average sales price being $164,977.  44 home have sold in the past 30 days.  ( I have several closings in the month of April)

The average days spent on the market is 106. 

Open houses have been very busy with qualified buyers and the phones are ringing.  With interest rates down and the cost of homes leveling out, no wonder that things are going so well here!

I get so tired of reading about how much Realtors make in the news...Today in our local paper an article hit saying that billions of dollars have been made in Real Estate commissions this year..The media makes it sound like we are all sitting around raking in the dough and doing absolutely nothing!!  How untrue..If that was the fact, I'd be sitting on a warm sunny beach right now sipping a drink with an umbrella in it. I'd like to share with you all where your well spent dollars go when you hire a Realtor to market your home.

Let's say your home is worth $175,00..(the average price of a home in the Lewis-Clark Valley)

If I list and sell your home with a 6% commission the fee would be $10,500.

That amount is split between me, the listing agent, and the agent who brings you the buyer..Most people who look to buy a home will contact a realtor to help them. It is my job as a listing agent to not only market your home to the public, but to other Realtors as well...Realtors with solid buyers, not just people who are "tile kickers" as I like to call them...

That makes the commission $5,250 per agent...BUT WAIT!!

That amount will then get spit with the Real Estate companies broker..(the owner or manager of the company who the Realtor works from)..Currently..I keep 70% of the listing side, but it varies per office and individual Realtor..

That gives me about $3500 after the spit...but there is more taken out...

There is the advertising that was done..On average I would say for a property of this price range I would probably spend..about $100 per month.  The average time a home sits on the market is 3 months..so there is $300 spent for ads..making my take only $3200. 

The property may need a little staging..lets say I purchased flower baskets to hang from the porch to attract buyers eyes in the spring, or put some pretty poinsettias on the mantle for the holiday season..

If the home is vacant and it is winter..I may pay someone to come and insure that the heater is in working order..or maybe another Realtors client breaks something, forgets to return the key, etc...there are so many things that come up to list..This also usually comes out of my pocket..

I may on average only gross $2500 from the sale of that property!  This is not in any way a shabby pay check, by far!!  But a long way from getting rich. 

As I stated earlier, we also market to the public.  We try to bring buyers to your property, being our listing, or another agents...We spend a lot of money on buyers as well.  We drive them around going from home to home, and in many cases not sell them a thing!!  We do not get paid for doing that.  We also usually end up buying the home seeker lunch during a full day of home seeking..If they bring the whole family that can get spendy. 

In many cases we have to "pay" for our buyers.  I am a certified relocation specialist..which means I have to pay to keep that certification in order for them to "give" me buyers.  If a buyer or seller is referred to my by another company, I will also have to give them 25% of my commission for that referral.

Don't forget to pay taxes in April!!!  We have to pay our own taxes as well.

Each month I pay for insurance, education, plus dues in order to be able to keep my license.  Being a Realtor is very expensive, in fact.

Then why do I do it?  Why do I risk all that money in order to be a Realtor?

Well, I do make a good living at it, I won't lie about that.  But I also sell quit a lot of homes.  I like to have 3 to 5 deals going each month.  Out of those deals, it seems as if one will fall through before getting to the closing table.  I work very hard to get as much as possible just in case others don't make it.  I also have to save money for the winter months, since it slows down here from October to January..Many agents do not do any business in these months.  If I have a really HOT month, I certainly don't run out and spend all my money, I think about taking care of my family during the months where things cool off.  But I enjoy the winter..I get to spend more time with my family. 

That is the number 1 reason why I enjoy being a Realtor.  I have a lot of flexibility.  I also get a chance to meet a lot of great people, and help in times of crisis.  Many times there is a crisis involved in the sale of a property.  It makes me feel good to know I helped someone avoid a truck load of stress by taking away the burden of a sale of a property during financial woes, divorce, death or a major transfer.

So next time you read an article about how rich us Realtors are, I hope you remember this BLOG.  If a realtor does do really well and makes a lot of money it just means that they work extremely hard.  I just hope that if they are making an extreme salary they are doing some good with it, and not just showing off everything that they bought.

At this point, I want to thank all my past and current clients for making my career choice a real blessing.

I am excited about the things to come in '08!!

I am a firm believer in home warranties.  I have a client who flips.  With each of his remodeled homes, I purchase a home warranty to go along with his listing.  This is a special service I provide to all of my regular clients who are in this business.  It is a great marketing tool.  We closed on a home last month that he beautifully renovated.  On the day that the new owners moved in, they went down stairs to find a soaked carpet.  The water heater, even though it passed the home inspection, failed. And as a coincidence...The drain pipe in the basement was backed up, which was also thoroughly gone through by a professional before my seller even started work on the home!! 

Everybody involved was so happy that the home warranty was there.  The home protection company called & promptly and addressed the problems.  It was such a comfort for the new home owners to know that this problem was going to be fixed, with a minimal cost to them. 

I believe that these protection plans are very important to the marketing of these project houses because they are usually sold to the contractor "as is" with not much of a disclosure.  The person who "flips" the home may have an inspection, and had done the work on the home, but has no real knowledge of the home other than what is on the surface.  This in turn is a great tool if your buyer purchase a home that you know had been "flipped".

The agent who represented the buyers of this particular home said after this turn of events he will be strongly looking into these programs for his sellers and buyers.  It saved a lot of heartache.

A warranty will usually cost around $400.  A mere drop in the bucket when you take a look at the cost of repairs to the home.

• We have all seen the articles about foreclosures being on the rise, and predatory lenders being at the top of the list of shame...but the buyers need to stand up and take some responsibility for what they have gotten their selves into...I have put together what I call the "True ways to avoid foreclosure"
• Remember the old saying "If it sounds to good to be true, it probably is"?   People who couldn't even qualify for a department store credit card were getting loans.  Now with the changes in lending practices, these people are not able to secure a mortgage, lucky for them..But why would a person even attempt to buy a home if this is their case?  Buyers need to be smart..If nobody will lend you money except this one guy over here..there is probably a reason why he is going to do it..YOU ARE BEING SET UP TO FAIL!!!
• Prioritize your Spending  If you just bought a home, most likely it is a starter home, or a step up from that first home, you will have a bigger payment than what you are used to.  Make sure you get used to this new payment before you decide to buy that new car, boat or what ever it is that you think you need.  Don't think you need to keep up with what everyone else has, if you do you may end up with a lot less than what you started with.  Always make sure that your house payment is your number one priority!!  After your mortgage is paid, then pay everything else in order of importance.  If you come up just a little short, it is a lot better to cancel your cable for a month or two, or defer your cell phone bill until the following pay day.
• Maybe it is time to cut loose of an asset  This speaks for its self.  If you have been laid off, or have an unexpected expense that is going to make it hard for you to come up with your house payment, sell your jet ski, or that extra car to store money to make your payment with until you get back to work.
• Find a way to bring in more money  There are so many things out there that a person could do to bring in extra money.  If you have a skill, advertise it!!  Take that overtime when it is offered to you. Are you a stay at home mom?  I know it may be hard for some women to swallow, but if you are a stay at home mom, there are many jobs that you could do and not lose that quality time with your children. 
• Maybe it is time to sell your home If you are so far behind that there is no possible way you would ever get caught up, you sold your boat, you are working so much that you have no quality of life, maybe it is time to downsize.  Even if you owe more than your home is worth, you can still sell.  Contact your Realtor and they will tell you how.

There are many other ways a person can save their home.  Not borrowing against your home to pay other bills, or not taking out a home equity loan, even keeping an emergency savings..there are so many ways to keep your most important asset.