Dave's Blog

The best advice I ever received…..

Dave Rosenmarkle (Highland Realty) — Thu, 01 May 2008 08:55:55 -0500

In doing the business of real estate, we often reach decision points as to when certain types of information or issues will need to be disclosed. Early in my career, my then Broker, Ben Zurun said, “When you least want to say something to your buyer or seller about something that may dramatically affect the transaction, that’s when you need to clearly and considerately say it”. I can’t tell how many times that advice has kept me from being sued, saved deals, and guided me in maintaining my professional integrity.

If you were sitting with a rookie agent and could only offer one piece of advice to have the “best” career possible in real estate, what would that be?

Dave Rosenmarkle

Broker Owner

Highland Realty

Arlington, VA

Agent feedback calls: Nuisance or Necessary?

Dave Rosenmarkle (Highland Realty) — Wed, 30 Apr 2008 19:22:47 -0500

Over the years, I have found the quantity and quality of calls requesting feedback to wax and wane inversely with the level of activity in the market. From 2000 to 2005, I could count on one hand the number of requests for feedback calls I received per month. Now, I’m getting called before I get my seatbelt fastened to move on to the next property.

Do you make or respond to requests for feedback on listings? What do you consider effective strategies in seeking feedback? Do you return calls asking for feedback? What situations really annoy you?

Some of my pet peeves:

If you want my insights, call me directly; no assistants, automated queries or emails;
Don’t wait a week after I have been through and expect me to remember lots of details;
If you want my opinion on price, don’t be insulted when you receive it;
Don’t argue with me about adjectives I use to describe the dump you called “a diamond in the rough”;
Don’t keep me on the line for 15 to 20 minutes hoping to find ammunition to lower the price;
Be professional and polite.

Dave Rosenmarkle

Broker Owner

Highland Realty

Arlington, VA

Short Sale Contract Language Challenging not just to Foreign-Born Agents

Dave Rosenmarkle (Highland Realty) — Mon, 28 Apr 2008 14:53:05 -0500

If you are a Office Broker, manager or team leader and you have foreign born (English as a 2^nd language) agents working short sales or foreclosures, I hope you are working with them carefully as the nightmare addendums and paperwork comes through the office.

I consider myself fortunate to have several really capable native Spanish and Vietnamese Realtors working with me, who are quite fluent with English, but are no match for the addendum language being generated by foreclosing and short-sale lenders of record who are “sort of” trying to divest themselves of a growing and unwanted inventory of properties. I say “sort of” because I have difficulty believing they actually expect people to totally surrender any and all purchaser rights in the transaction. I also understand the concept of “as is”, but if you don’t read every line, every word of the addendum, you and your agent could be setting the purchaser up for a financial disaster.

This is problem enough for educated American-born agents, but, from what I have experienced, it is a serious problem for those 2^nd-language folks who do not understand 20% of the terms used and 50% of the implication of the twisted terms and conditions proposed in the counteroffer.

For example:

One of my Spanish-speaking agents submitted a 25-page offer for contract on a property being advertised as a short-sale. A week after the offer was submitted, she received a 26-page addendum full of legalese in counter to the offer presented. Essentially, it minimized or eliminated any remaining purchaser rights after he agreed to buy the property “as is”. One section of the addendum addressed homeowner association documents. It specified that the seller would not provide them and that the Purchaser had 11 days to remove the contingency or forfeit the right to review. In Virginia, the HOA’s have up to 14 days, by statute, to prepare and deliver the documents. Hmmm. Something didn't add up here.

On behalf of my selling agent, I contacted the listing agent and asked how they planned to compel the HOA to prepare the documents and provide the purchaser with the Virginia State mandated three-day period of review to accept or decline the documents. After a long pause, he said, I guess we could write in an amendment to extend the timeframe…. After paying $312, the Purchaser received the documents - one day before closing (There was another provision that the seller could require closing immediately following loan approval). Two of the several reasons you want to see HOA documents relate to dues not paid and architectural committee inspection results. Both convey with the property if not caught by the new lender or remedied by the current owner.

We found out that there was a $2,200 dues arrearage and $1,500 worth the exterior maintenance to be completed. Before closing, we required a seller credit for same.

This is just one hideous example of what is happening to buyers in short sales. I almost forgot to mention: there was another provision that stated that the seller could terminate the contract at any point prior to closing without cause (like if they receive a better offer). The purchaser would have no recourse and waived all rights to sue for performance or recover fees and expenses paid to date. The only recognition would be to refund the purchaser’s earnest money deposit. No reimbursement for any inspections, appraisal. survey and other related fees.

Many of these deals are really complicated. I would urge you to work closely and carefully with all of your agents, not just the ones who know another language better than they know English.

Are my agents just picking the wrong properties or are any of you having similar difficulties? Where do you draw the line in giving up purchaser contract rights? Any success stories or other examples we need to watch out for?

Dave Rosenmarkle

Broker Owner

Highland Realty

Arlington, VA 22202

Divorcing: who gets the mortgage?

Dave Rosenmarkle (Highland Realty) — Sat, 01 Dec 2007 10:30:26 -0600

With many areas around the country still experiencing property values in a downward direction, a new problem is emerging: who gets the mortgage when a couple is divorcing? A must-read article appeared in today's Washington Post discussing this growing problem with not a lot of solutions in sight. It's actually causing some couples to re-think their divorce plans! What many others are finding is that with values going down and rates going up, where two had qualified before, the remaining soon-to-be-ex-spouse is not able to qualify to carry the note alone. Most mortgage companies are refusing to remove or release liability for the departing spouse, putting the mortgage payment continuity at risk plus it's always better to have two incomes to go after if there is a resulting deficiency judgment.

So, who gets the mortgage? It depends mainly on the remaining spouse's ability to qualify to refinance the other party off the note, the current property value and the equity position to sustain the refinance. What experiences have you had in working with divorcing couples? What went well and what problems could not be overcome?

Dave Rosenmarkle

Broker Owner

Highland Realty

(703) 538-2566

Is there a "best" way to handle a lease with option-to-buy-contract?

Dave Rosenmarkle (Highland Realty) — Sun, 25 Nov 2007 20:02:30 -0600

I think the "best" way may depend on who you are representing in the transaction. I had a very good agent approach me today with a combination form he was thinking about using for one of his listings. If he had been representing the tenant/prospective buyer, I might have encouraged him to use it.

Over the last 10 years in a range of different markets, I have seen law suits periodically arise over lease-with option-to-purchase contracts, usually over money, price and equity. Many of the suits are a direct result of well-intentioned, but sloppy writing by Realtors and/or attorneys.

In brief, if I were a listing agent receiving an offer of a lease with-option-to-purchase contract, I would counter with two separate documents: a lease for the agreed upon period of time and a sales contract, to be executed whenever the tenant's financing is approved and ready to close. You can also spell out credits and other terms mutually agreed to, but the tenant must successfully perform on the lease, then purchase the property.

If I were the leasing agent, I would probably try for the combined document approach and try to lock the seller into as favorable terms as possible. Although, I might not want to lock the price in if the market is still projected to decline. If this were 2000-2005 and I asked the seller to lock the price for 12 or 18 months, he would probably hand me some windex to clean my third eye as he wondered which planet I was from. If the seller agreed to execute an agreement giving my client the option tp purchase, I would also have my attorney record the option in the county land records.

It may be different in other parts of the country, but it is rare for a lease-purchase contract to actually close in the Northern VA market.

How do you handle lease-with-option-to-purchase in your market area? Does it happen often?

Dave Rosenmarkle

Broker Owner

Highland Realty

(703)538-2566

We give thanks....

Dave Rosenmarkle (Highland Realty) — Wed, 21 Nov 2007 10:25:51 -0600

Friends -

All across America, we gather in our homes this week with the people we love to give thanks for the blessings in our lives. We are grateful for our freedom, grateful for our families and friends, and grateful for the many gifts of America.

Thanksgiving is also a time to share our blessings with those who are less fortunate. Americans this week will gather food and clothing for neighbors in need. Many young people will give part of their holiday to volunteer at homeless shelters and food pantries. On Thanksgiving, we remember that the true strength of America lies in the hearts and souls of the American people. By seeking out those who are hurting and by lending a hand, Americans touch the lives of their fellow citizens and help make our Nation and the world a better place.

From our home to yours – have a happy, safe and friend-filled Thanksgiving holiday.

Dave

Not what we say about our blessings, but how we use them, is the true measure of our thanksgiving.
- W.T. Purkiser

And for those who can't be home this Thanksgiving, we give thanks for your dedication and service to our country. Stay safe and come home soon.

Best software for creating flyers and house brochures?

Dave Rosenmarkle (Highland Realty) — Sun, 18 Nov 2007 19:50:23 -0600

I was recently approached by a couple of new agents who do not have much of a technical background and, who were struggling with a couple of different types of software that were supposed to help them prepare flyers with ease. After three hours, they had housing brochures that you would want your competitors to use.

What cost-effective, easy-to-use software would you recommend?

Dave Rosenmarkle

Broker Owner

Highland Realty

(703) 538-2566

Use our affiliate or else.................

Dave Rosenmarkle (Highland Realty) — Tue, 13 Nov 2007 19:42:06 -0600

What do you means, you don't want to use our affiliate?

I just read an article about the brouhaha over at Long & Foster over whether or not agents should be using the affiliate owned companies for mortgages, insurance, closing, etc. Wes Foster claimed there was no pressure by anyone, ever! I'm not so sure that Wes' managers ever got that message! One of the reasons I went out on my own was the informal expectation that, while we know you are an independent contractor, we would like you to support out profit structure and use our affiliates. I was amazed at how many different ways they would make the suggestion. And while they were not supposed to retaliate against the non-users, guess who was a top producer in the office and who was passed over for the plum referrals and two-windowed office????

Anyway, what's your take on broker pressure, informal or otherwise to use company affiliates. As a business model, it makes sense for the owner. For the lazy, brown-nosing agent who wants to be the team player or worse yet - the next sales manager, it leads to unending management gratitude. For independent professionals, it's better to leave. Period.

Dave Rosenmarkle

Broker Owner

Highland Realty

Happy Veterans Day!

Dave Rosenmarkle (Highland Realty) — Sun, 11 Nov 2007 08:20:34 -0600

The song you are about to listen to (click on link below), was sung at a Las Vegas Diamond Rio concert. Although Diamond Rio has never before done a statement song, they felt compelled to record "In God We Still Trust."

Sadly, major radio stations wouldn't play it because it was considered politically incorrect. Consequently, the song was never released to the public.

So, America, see what you think. If this offering speaks to your heart and you feel you would like to share it with veterans, friends and loved ones, please do.

Click on link.

http://www.windomnet.com/web/nls/InGodWeStillTrust.wmv

In case you've forgotten, people in the military are just like many of us, except they serve their country every day, not just on holidays.

Thank you for your dedication and service.

Dave Rosenmarkle

USN (1964-1967)

“Plowing” the competition underground

Dave Rosenmarkle (Highland Realty) — Tue, 23 Oct 2007 12:48:05 -0500

If you are a “farmer”, do you get annoyed when an outsider lists a home in a subdivision or area you would like to consider your turf? You’ve been sending out CMA’s and area sales data for months and then, they go and list their home with someone you know is considered the village idiot by peers and, who hasn’t sold a listing for two years. As we have all experienced, sometimes you just can’t get them all. So what do you do?

I think you should use the competitor’s new listing as a prospecting tool and take away any advantage gained by having the listing. Unless you are up against someone like Bryant Tutas, who's Lovely Wife may assist you in an early exit from real estate, there are options to use this listing to your long-term advantage. Once the listing has been placed in the MLS, as a licensed member of this system, you are invited to sell the listing and be compensated for selling it.

Dedicated farmers are going to use this invitation as a reason to knock on every door in their farm and provide each homeowner with a flyer on the new listing. As long as you don’t imply you are the listing agent, most MLS systems consider this a fully acceptable practice. Why do it? Because this may encourage other homeowners to consider putting their property up for sale – with you!

In addition, you would probably want to call each homeowner in the farm to let them know the new listing has become available. Some good news here is that at least 8 out of 10 listing agents will never make those just listed calls. This then creates a true opportunity for you!

Remember that by combining a mailing with a phone call, you increase your response rate by a factor of four!

Finally, some agents also provide a monthly market highlight report to each of their farm members. This report includes all of the newly listed homes, just sold homes, and recently pending homes. Of course, release of this information is subject to your local MLS rules. Home owners absolutely love these reports, and it provides you with an opportunity to show yourself off as an expert in the market area.

So the next time you lose a listing in your farm, turn that lemon into gatorade!

If you farm, have you tried this? Results? Recommendations? What other ways do you establish yourself as the subdivision expert?

Dave Rosenmarkle

Broker Owner

Highland Realty