Not too far back, I wrote a Blog Post asking, that with current market conditions continuing to decline, CAN OCEANFRONT & SECOND ROW PROPERTIES REALLY HOLD THEIR VALUE??? . It was a little over a year ago when I wrote that post and posed that question.
Here we are today, April 20th 2011. The Summer season is creeping up fast and soon many people will be thinking about properties that are for sale up & down the entire Grand Strand. I started wondering again, pondering the idea about Oceanfront Properties throughout the Myrtle Beach areas and asking myself "I wonder how they are holding up this year?"
1130 Parker Dr, Pawleys Island, so far, is the highest priced oceanfront home Sold throughout the Grand Strand year to date 2011. Boasting 6 bedroom and 6 full baths, 3000 Heated Square Feet of living space in a Raised Beach Home design, this wonderful beach home is certainly a catch. But you have to wonder, within a depressed market that we still have, was it really worth $2,300,000 ?
923 South Oceans Blvd. in North Myrtle Beach was a Foreclosure that Sold this year for $525,000. This much older, oceanfront beach home has 4 bedrooms, 2 full baths and 1 half bath. It's interior space is about 1400 Square Feet heated and definitely has much smaller rooms throughout the whole house. It's dated and would need a little TLC to bring her back around. But take into count, even though it's a Foreclosure, this older home hold a certain Beach Cottage charm about it that is becoming increasingly harder to find along the Grand Strand.
Looking at the Statistics above, Eleven oceanfront homes have sold year to date 2011. Out of those eleven, 6 (more than half) of them were Short Sale Listings. Two of them were foreclosures and only three were normal listings. As an average, most of the homes stayed on the market (Listed for Sale) for 11 Months before they were sold. It took close to a year for most of these homes to finally get sold.
Another interesting bit of information for these same statistics, was the Average difference between the Original Listing Price and the Actual Sold Price was almost 30% less! Speaking from the averages, all of theses oceanfront properties listed above were statistically listed 30% above they're given market values and this was after they sold. Considering they sat for sale for close to a year and they showed and average loss of 30% in price, it might be safe to say that oceanfront properties are not even safe from the Down Market were all still stuck in.
Ever since the beginning of the Crash in 2008, the number one question out of everybody's mouth was and is: "Have we reached the bottom yet?" My favorite response was " There is no Crystal Ball. I'm watching the market now and can tell what the current & past situations are, but not the future."
Recently, the South Carolina Association of Realtors released some Historical data that goes back over the past Five years and shows some very interesting details I would like to share with you all. Looking at the Graph below, you will see the timeline of closed transaction for both houses & condos over these past Five Years.
It's easy to see just how "Out of Hand" things got with condo sales at the Height of the summer season in 2005 with closed sales topping out at about 1,150 transactions, WOW!!
As the years roll by, Month after Month, closed transactions begin to decrease with the sharpest drop happening the same year as the highest peak, 2005! One pattern you may notice is that closed transactions consistently peak during the Summer Seasons, then they slide down as we roll into the Winter Seasons. Not uncommon considering our area is such a high traffic Beach Vacation Destination with 60 miles of unobstructed beachfront.
The next pattern I would like to point out & should be of special interest to both buyers & investors: Looking at the above graph at the all thegreen arrows, you will notice that every year, soon after the Month of January, closed transactions increaseconstantly! If the pattern holds true and continues this year in 2011 as it has the past Five Years, we should see an increase in properties selling. Taking in consideration that over the recent past 3yrs, Sales have plateaued, hovering between 200 & 450 Transactions per Month, NOW would be a good time to Buy properties in Myrtle Beach!
Now looking at the graph above, you will see what average sales prices tracked over the past Five Years. The same pattern follows Avg. Sales Pricesas with the Number of Closed Transactions, there are spikes during the Summer Seasons. But one main difference between the two graphs: The number of closed sales started to diminish in the middle of 2006 yet the avg. sold prices continued to rise even higher, reaching their apex around mid 2007 for condos where single family homes peaked several times during 06, 07 and well into 2008.
Myrtle Beach Area Condo Prices have trolled along just above $150,000 during all of 2010, never peaking anywhere near the 200K mark. Our area's average sales price for condos stayed flat through 2010 and continues that way into the 1st part of 2011.Comparing both graphs above, you can see that condo prices are staying Low. Opportunity is HIGH to garner that vacation condo, investment property or retire at the beach like you have been planning year after year. Starting after this January, sales activity will increase but condo prices will remain low.
So, my question is still the same: No Really, Is NOW the Time to Buy Real Estate in Myrtle Beach??
It was Friday night, December 3rd 2010 in North Myrtle Beach. I had just finished dinner with my Girlfriend and was pondering what to do next with the rest of my evening seeing as she wanted to go scour through T.J.Maxx for any new articles she can't live without! I remembered, earlier that night I had read a Post on Facebook from ListenUp Myrtle Beach talking about a Local Area Music School that was having a concert at the House of Blues Myrtle Beach where they would showcase the combined talents of young students and the Bands they had formed. Here's the Article I had remembered: "Latest group of Dino's students set to show off"
The name of the School is called Dino's School of Rock located in the Forestbrook Section of Myrtle Beach just off of Hwy 501.
To quote Dino Capone himself via his website: "It's a place where music students & aspiring music students of all ages can receive one-on-one private Rock 'n' Roll lessons from the instruments of their choice" "It’s a place where music students of all ages gain confidence, accomplish goals, and learn skills that last a lifetime and most of all, Dino Capone’s School of Rock is the place where fun & learning go hand in hand, where students are treated like family. "
which had came out back in 2003 and I absolutely Love It!! So, I don't know if you were as much of a fan of it as I was, but I was extremely curious to see what this local concert was all about. So, with my decision made on what & where,I was off to the House of Blues in Barefoot Landing to see just what these Kids were made of.
The concert started at 8:30PM and as I was arriving, the 1st Band of the evening was just starting their set:
"The School of Super Cool" consist of six band members > Drums- Nicky Corrente- 9yrs old, Bass Guitar- Josh Jordan-14yrs old, Guitar- Matt Maixner-11yrs old, also on Guitar- Hunter Barfield-9yrs old, Vocals- Mikayla Kramer-8yrs old and also on Vocals- Carli Weintraub-12yrs old.
Their Song Set for the evening was:
Rockin Robin - Jackson 5
Fall Back Down - Rancid
Low Day - Capra
Crazy Thing Called Love - Queen
We Got the Beat - The Go-Gos
God Gave Rock - KISS
These Guys & Gals hit the stage and hit it hard, giving the crowd a good heavy dose of what certainly was more to come. As I found my way through the crowd (an estimated 400+ people had showed up) I picked a pretty good spot to the left of center stage. It didn't take long of listening to the first few song sets of this first band: "The School of Super Cool" before I quickly realized just how talented these kids were and knew it was only going to get better. 'Like a bat out of Hell' I reached for my iPhone 4 and immediately started to shoot video because I knew this had to be captured for all eyes to see!
NOTE: Please make sure you scroll down to the bottom of this Blog so you can see ALL the concert footage I shot that night!!
Next on the Stage was the band called "Shattered" where (Evan Parrotta) the lead Vocal had kind of a "John Belushi / Blues Brother" thing going on and made it work. Rather fitting don't you think since their Venue that evening was the "House of Blues"?
"Shattered" consist of Four band members: >Evan Parrotta - Vocals (14yrs old) >Andrew Wert - Drums (12yrs old) >Tommy Meritt - Guitar (16yrs old) >Dennis Fox - Bass (14yrs old)
Their Song Set for the evening was:
Old Time Rock n Roll - Bob Seiger
Shot Through the Heart - Bon Jovi
We're Not Gonna Take It - Twisted Sister
Rock n Roll Fantasy - Bad Company
Paint It Black - The Rolling Stones
The Good Life - Three Days Grace
The next band up was "Scorched" and even though Taylor O'Hara took a little time to get warmed up, once she started singing "I'm Down" by The Beatles there is no denying the raw Talent she and the other band members were bringing to the stage that night!
"Scorched" consist of Six band members: >Taylor O'Hara - Vocals (16yrs old) >Tommy Meritt - Bass (16yrs old) >Adrian Edelen - Drums (17yrs old) >John Stewart - Keyboard (16yrs old) >Garett Randall - Guitar (12yrs old) >Josh Jordan - Guitar (14yrs old)
Their Song Set for the evening was:
Vertigo- U2
Soak Up the Sun - Sheryl Crow
Drift Away - Dobie Gray
I'm Down - The Beatles
California Sun - The Ramones
Love Song - Tesla
The Fourth and final Band to hit the stage that night was "Broken Strings" and man, what a perfect & powerful closer for this night of ROCK!
"Broken Strings" consist of Five band members: >Shelley Sasser - Vocals (12yrs) >Adrian Edelen - Bass (17yrs old) >Heber Fragoso - Drums (10yrs old) >Dennis Fox - Guitar (14yrs old) >Grayson Clark - Guitar (13yrs old)
Their Song Set for that evening was:
Getting Better - Tesla
Hate Myself for Loving You - Joan Jett
Closer to the Heart - Rush
Let There Be Rock - ACDC
Turn up the Radio - Autograph
Johnny B. Goode - Judas Priest
Stone Cold Crazy - Queen
If you enjoyed these kids Rocking it out half as much as I did, please take the time and go see Dino Capone's School of Rock ConcertSunday night, December 19th, 2010 at the Hard Rock Cafe in Myrtle Beach where they will be doing a follow-up to the highly successful Concert at the House of Blues.
Since the majority of Buyers & Investor of Real Estate along the Beaches of The Grand Strand are from out of State, I consistently get asked about how Taxes will apply to the Potential Property consumers are considering to Buy. The information below is from Horry County's Website and you can find the exact information for the Assessor's webpage . I thought I would write a simple Blog Post and get this information out there for more eyes to see and to also have a reference point on my Website for people to read/view at thier lesuire.
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Why do we pay property tax? Property tax is collected by local governments to provide for the many services most of us take for granted. Schools, police and fire protection and public libraries are possible because of revenue from the property tax. We are all asked to pay our fair share of the cost of these services by paying tax in proportion to the value of our property.
How is property taxed? South Carolina's Constitution requires that property be taxed in accordance with the properties value. From the time your property is added to the tax rolls, the tax assessment does not change unless physical changes have been made or a reassessment program is implemented or an assessable transfer of interest occurs. The most recent reassessment was implemented for the 2005 tax year. The next countywide reassessment is scheduled to be implemented for the 2010 tax year. In determining the County's annual budget, County Council sets the tax levy each year. The rate is reflected in "mills" or "millage rate", and one mill is one thousandth of one dollar (.001). The County Assessor appraises real property, the Auditor maintains the property tax rolls and calculates individual property taxes, and the County Treasurer collects the property taxes. All property is appraised at its fair market value and is multiplied by the appropriate assessment ratio for the type of property. All real property is assessed at a four percent (owner occupied primary residence) four or six percent (farm) or a six percent (all other) rate. Therefore, property taxes are determined by multiplying the fair market value, times the assessment ratio, times the millage rate. For example, the tax on your legal, full-time residence in Horry County is determined this way:
This example includes a home located in the unincorporated area of Horry County. (Qualified legal residence)
***Although a taxpayer receives just one property tax bill, there are other agencies that utilize that one tax bill to collect their own taxes. These agencies are itemized out on your bill, which include the School District, municipalities, special tax districts, etc. Any increase by any of these agencies will result in an increase to the overall tax bill.
How do I get the best tax rate on my home? If you own a home, you want to be sure to obtain the 4% assessment rate if you live in the home and claim it as your legal residence. Otherwise, your tax rate will be 6%. To obtain the lower rate, you will need to complete an application with the county assessor. This should be done as soon as you move into your home. Once you have filed the application, you will not need to complete another one, unless there is a deed name change, or use of the property changes.
What is Reassessment? South Carolina State Law requires that each County within the State conduct a countywide reassessment every five years. A one year extension is allowed by County ordinance. During a Countywide reassessment all real property within the County is reappraised at its current market value as of its reassessment date. New Legislation requires that in the year in which a reassessment is implemented each parcel of real property, be adjusted for improvements and losses, and does not increase more than fifteen percent every five years unless an assessable transfer of interest occurs. Horry County is currently scheduled to implement its next reassessment in tax year 2010. Only real property values are affected by reassessment. Values of personal property such as cars, boats and motorcycles are kept current through annual updates by the Department of Revenue.
What if I have other tax questions about my tax notice or other tax matters, who should I call?
Personal Property (Cars, watercraft, aircraft, etc.) Horry County Auditor's Office (843) 915-5050
Real Property (Land, buildings, etc.) Horry County Assessor's Office (843) 915-5040
So late last week, I got a Newsletter via my Association informing me that they had just gotten in the New Adapter for the iPhone where you could now use our iPhones to open/access our areas Lockboxes when out showing Houses.
Listen, I have been waiting for this for quite a while and I was extremely excited to dump my archaic ActiveKey and make a huge step into the 21st Century..!!
So, I hurried down to the Main Association Office and met with Heather Tenney, our Membership Director, to grab my Adapter. Luckily for me, there were still a few available. She wasn't sure what the response would be to this new piece of Technology, so she only ordered 10 of them. I acquire Lucky number 7..!!!
Now, it does require you to Download the App from the Apple App Store ( it's free, Schweet..!! ) and then you get the Adapter from your Local Association. The Adapter is quite small. Big enough to fit on a Keychain, which it's already set-up for!
You then pull off the end piece ( it just snaps out. It's shown separated further down in this blog in a Picture below ) and attach it in the input/female end of your iPhone. You know, where you Charge & sync you iPhone at!!
Then you just access the App, the main screen pops up with several buttons to choose from. Tap the button that says "Obtain Key", another screen pops up asking you for your PIN Code. Key in the code, a few short Beeps and WhamO..!! Push the bottom of your Keybox and out pops the Key.
The reason for the Adapter at this time is because a large Majority of the Supra Lockbox that are out there have Infrared sensors built into them. Soon, very soon, Supra will be producing Lockboxes with Bluetooth instead of Infrared and you can then, ditch the Adapter altogether....!! I know, Too Cool Huh??
Below are a few Pictures I took with the Adapter attached to my iPhone to show you how is looks hooked up and the App running. Below is a copy of the Webpage, giving you details, Links and instructions on how you can both download the App and basic features of the App itself. I hope many more of my Fellow iPhone Lovers / Realtors out there will be using this soon. Feel free to share you experiences so far if you have already been using it
With eKEY software, use your iPhone as your lockbox key. eKEY updates wirelessly so you can do business anywhere.
There are two service levels available: eKEY Basic which provides basic keybox functions. eKEY Professional (coming late this year)adds MLS data saved to your phone, links Google maps to the listings, and delivers showing details to your phone.
eKEY Basic Features
Wireless Updates and Alerts
Obtain Listing Keys
Keep track of all your key boxes right from your phone
Manage and Program your keyboxes
Easily place and remove keyboxes from li
stings using your phone
Change your own shackle codes
Supra eKEY Adapter
We have created a Supra iPhone Adapter which plugs into the 30 pin dock connector. It adds Infrared to the iPhone. It is designed to hang from a key chain when not in use. When you are ready to show a house, just slide it out of its cover, and plug it into your iPhone.
When will eKEY for iPhone be available?
eKEY Basic for iPhone is available now!
eKEY Professional for iPhone will be available in December of 2010.
How much does the Supra eKEY Adapter cost?
There is a one time fee of $54.95 (plus $3.95 shipping and any applicable taxes) to purchase the Supra eKEY Adapter. To use the eKEY software there is a monthly key fee like our other keys. The monthly key fee varies by Organization.
Will the Supra iPhone Adapter require batteries?
No! The Adapter gets its power from the iPhone, thus no batteries to change and it will never need to be charged. It only uses power when a box is opened, thus it has very little impact on the iPhone's battery.
Will eKEY for iPhone work with the eKEY Fob (the one that works with the BlackBerry)?
The eKEY fob used for BlackBerry and Windows Mobile devices will not work with the iPhone. It was necessary to design an accessory specifically for the iPhone. Thus, we decided to create an adapter that would plug directly into the phone. In this way the eKEY for iPhone is a fully integrated solution.
How do I get eKEY for iPhone?
eKEY for iPhone is issued just like the other eKEYs. The Supra iPhone Adapter is available for purchase directly from Supra and from most Boards and MLSs. After you have your adapter, you can download the software from the App Store, and get an eKEY serial number and authorization code from your Board or MLS. Once the authorization code is entered into the software, you are ready to open lock boxes with your iPhone!
Moving from DisplayKEY or ActiveKEY is a very simple process. It will only take a few minutes at your local Board or MLS (whoever issued your current key), and you will be opening lock boxes with your iPhone.
What models of iPhones will be supported?
eKEY for iPhone will run on all current models of iPhone (2G, 3G, 3Gs). It will also run on the new iPhone 4. Note that for 2G, 3G, and 3Gs devices, you must have iPhone OS 3.1.3 or above.
How do I get the software on my iPhone?
The eKEY for iPhone app is on Apple App Store. The download is free. While the software itself is downloaded free, there will be an ongoing monthly charge for the key service. Download it now to check out the demo mode.
Is there a way to see how eKEY for iPhone works before I buy it?
Yes. There is a demo version of the software. It is on the App Store and it will let you check out all the eKEY Basic features. To start using it to open lock boxes you will just need to speak to your Board or MLS and get an authorization code (once the Supra eKEY Adapter is available).
What is it that makes a good Real Estate Agent Great?
Experience? Knowledge? Personality? Business Savvy? Or, maybe it’s a mix of all these blended together?
My Opinion, quite simply…. Relationships!
The relationships that you develop and establish with people throughout your career and life are what make you great. When you interact with people, day in and day out, you establish a Relationship; sometimes it’s seemly insignificant and others are quite crucial. Both with Consumers and Clients as well as fellow Realtors, Attorney’s ,Home Inspectors, Pest Inspectors, Builders and Contractors. Geez, it can be as simply as the Kid that bag’s your Groceries.
Do you believe that one Realtor is better than the other because He/She has more Sales/Transactions than the other ?I don’t think so! Establishing a positive, open and lasting Relationship with other people should be the biggest reward, not having the Most Sales/Transactions in your Area.
Success is not measured by Money. It’s measured by the relationships we have in our Life. It is measure by the Positive impact we have on those people in our lives. Please don’t sit there and tell me that you wouldn’t get a better feeling & sense of satisfaction from help Someone get out of an emotional & painful Financial situation with their House/Property than making the Most Sales in your Office/Area/Association ?
The reason Realtors have acquired such a Negative persona with the General Public is because we (as Realtors) have allow this to happen! When your sole purpose in this business is to gain & gather as much Money as you can from every transaction and then quickly move on the Next deal, YOU are the one helping establish this Negative persona. GREED is not Good!
Yeah, Yeah I know…… “We have to make a Living”….. “We have to make money in order to support ourselves and our families”…… “This is a Business you know!” Blah Blah Blah..!! This is the Old way of thinking and it simply will NOT work anymore!
Connect….Engage…Relationships…. These are the new Dogmas of the business world!! A Real Estate Transaction can be business, but it also involves people!! Yes, Money is conveyed for Services rendered, but what about the people involved who helped make everything happen? Has society established that acquiring Money for a Service provided is the Norm for saying ‘Thank You’? What happened to personal Appreciation? Time and time again, I hear and see that phrase: “There's no better compliment than a referral!” and I would have to agree. If you had a positive relationship/interaction with someone, wouldn’t you want to share that with other people?
Two of the Biggest compliments I could ever hope to receive from people and Clients is both Referrals and True Feedback! The referral is a ‘pat on the back’ and a wonderful ‘Thank You’ gesture. But, True Feedback is the Gold in every relationship! When people dig deep and share with you how they feel or how they’re experience was when working with you or maybe how you could do things a little better; this is the Gravy people!! This is the essence of success! Because if you take this Gift given to you and you use it, you learn from it and you apply it, this is what makes a good Realtor Great
Living and working as a Realtor in the Myrtle Beach / Grand Strand areas has provided me with extensive knowledge & experience in dealing with all types of Investment Properties in a Vacation Destination. As you can probably guess, most of these properties are Condo’s (Condominiums) which tend to be strong Investments based on their individual Rental Income.
Investment Properties by nature are designed to induce an Income Flow by renting out to the General Public. Being that a majority of our properties are “Beach Focused” odds are that your focus will be with either Oceanfront Condos or at least Oceanfront Buildings. Now with that being said, these types of Properties WILL be heavily Rented during the Summer Seasons and even a good bit during the Fall Seasons as well. Planning is crucial when you absolutely need to see the Unit (Condo) of interest.
Typically, Condos throughout the Myrtle Beach / Grand Strand Areas are Booked on either a Daily or Weekly basis. Beginning in March, Rental Season kicks off due to Spring Breaker and Golfers coming into our Area to enjoy the Mild weather before Summer hits. After that, Rental Activity slowly begins to increase throughout the Month of May. A spike usually begins around Mid-June as most Schools are now fully dismissed for Summer Vacation and Families have Booked their Vacation Plans months, if not possibly a year in advance. The Myrtle Beach / Grand Strand Areas comes into it’s “Hard-Core” Rental Season starting July 4th. This is when the entire Grand Strand stretching from as far North as Cherry Grove Beach in North Myrtle Beach and traveling South, down the 60+ Miles of gorgeous Beaches along the Atlantic Coastline to the South End where you find Surfside Beach, Garden City and Murrells Inlet are flooded with Vacationers enjoying all the sights, Attractions and activities The Grand Strand has to offer.
Mid-June and well though September are considered Heavy Vacation Season throughout the Myrtle Beach / Grand Strand Areas. During this time period, condos will be fully rented on a regular and revolving basis making the ability to show these Investment properties close to impossible. South Carolina State Law states that no Properties can be shown by Realtors while Renters are in place. Any Agent that is caught trying to sneak Clients into to see these Properties while Tenants are using them can be fined as well as lose their Real Estate License.
If you are in the Market to Buy any Investment Property and are planning to come visit the Area to research & possibly view these types of Properties, Please give serious consideration to pairing yourself with a local, Honest and Experienced Real Estate Agent who will know the Ends and Outs of Rental Properties throughout our Area and knows the best times to schedule Viewings of these properties. Taking the time to match yourself with a good Realtor can make all the difference in the World. It will save you both Time, Money and Aggravation as well as open the opportunity for you to actually enjoy your planned stay here at the Beach instead of driving all over the place figuring out which properties might best fit your needs.
My name is Thomas Cunningham and I am a Licensed Real Estate Agent in South Carolina; Specifically in the Myrtle Beach area. My coverage area consist of close to an Eighty (80) Mile stretch of Beach that runs from the North Carolina/South Carolina State Line all the way down to Pawleys Island along the Atlantic Ocean.
Everyone has become accustomed to Foreclosure since these types of Properties continue to flood our Markets. I'm sure if you have searched for a Property for sale throughout the Myrtle Beach Areas, you have come across plenty of Foreclosures. But, you may have also stumbled across more and more Short Sales as well.
Let's cover the basics first. What exactly is a Short Sale? A Short Sale is when a property is being marketed For Sale for Less than what the Owner owes on their Mortgage. In most cases the Owner/Seller is in a state of Financial Distress. They are either already behind on their Mortgage payments or they anticipate that they soon will be.
For the first time in US History, a massive number of Real Estate Properties are now worth Less than their Mortgages Balances and people are paying higher Mortgage payments than they can afford. In most cases, they are normal people who simply got caught in the Financial Meltdown of our Country either because they may have Refinanced their home to take advantage of seemly lower rates or were misadvised that they could refinance their Home, pull money out and use it somewhere else in their life. Other people gambled on the Market with it's preceived notions that our Countries Real Estate Market was going to continue to rise and rise with no end in sight. These people took advantage of the Uber relaxed Lending Practices and set out to amass their own Real Estate Empire.
Opinions can vary on the reasons why our Real Estate Market is in it's current state. The most important thing is that you fully understand what a Short Sale really is and what to expect when buying this type of Property. Wikipedia's definition states that the Lender decides that the Property be Marketed and Sold as a Short Sale. But, this incorrect!! Sadly, the Lenders don't really care whether you attempt to sale your home or not, they simply want their Money and that's about the extent of their consideration! You the Owner of the Property have to make the decision to Sell your property, not the Lender.
Now, the big question that is always the First, whether it be from the Seller or a potential Buyer : How much is the Property worth? This is a tough question to answer as there can be Multiple factors that play into the Valuation of any type of Property. The most basic way to Value a property is a Comparative Valuation using almost identical property types (i.e. 3Br/2Ba, 2200SqFt Home with a 2 Car garage) that are both For Sale and have recently Sold within a close proximity to the Subject Property (Owner/Seller's Property)
In the Myrtle Beach Area, most Short Sale Listings are aggressively priced and Marketed and can be a Great opportunity for someone to Buy a wonderful Property for a Low Price. But, you must take in consideration, that all Short Sale properties that are Listed for Sale at that particular Price are all Contingent on a Third Party Approval. I know, you're asking, what Hell does that mean exactly? Well, it simply means that no matter what Price the Seller & Realtor have Listed the property for, the Actual Sale Price of the property will be determined by the Primary Lender.
Make no mistake, it does not matter if you are offering a Full Price, Cash Offer on a Short Sale property, you will still have to wait ( and you will Wait!! ) for the Lender's approval on your Offer. There are too many details to list in this Blog to help you understand why the Banks/Lenders can take so long in their response to your Offer. I will tell you this, the Larger the Bank/Lender, the more time you will have to wait on average. The Sad fact is that all the Banks/Lenders process and deal with their Short Sales almost completely differently than other Banks/Lenders. So far, there is ABSOLUTLEY no Standard Process for Banks/Lenders to facilitate any and all Short Sales. This is what is making things Extremely difficult for both Realtors and the Owners to actually Sale their Properties!!!
I can see that this Blog is going to have to become a Series. There is no way I can fit all that Needs to be said in this one Blog. I will continue to write on this topic of Short Sales and hopefully it will give Consumer a better understanding of both What they are and How to deal with them when you are ready to Buy a property.
Please feel free to ask me any questions you may have. I can be found almost anywhere in the Social Web: Facebook , Twitter , My Website ( a work in progress right now) Email or simply comment on this Blog.
There's no easy way to say this. I've hit rock bottom. No, the bottom isn't found at the end of a needle, a tent under the overpass, or the last few drops in a bottle of cheap booze. The bottom is a familiar place to many agents I suspect. It's cold and dark and not really a fun place to be, but I'm here and I better get used to it or get out of it - and fast!
As you may remember, I won some free coaching with Tom Ferry here at ActiveRain. In the past few weeks, Tom and I have been having some scheduling issues, (on my end) but finally we had another call this week. Everyday, I have had an assignment to email Tom (it's a very specific list of things I have to do in the email) and it has helped Tom see what's going on in my life, both personal and professional. Those emails alone have been one of the hardest things I've ever had to do. It's kind of like email therapy really. I have held nothing back and Tom probably knows more about me at this point than my own mother. He's been a great guide along the way, sending email replies to cover a specific point in an email or sending me something he found that he thought might encourage me, but despite all of that, I've hit rock bottom.
Please note: I do not blame Tom for me hitting rock bottom, in fact, he's probably made the fall a little less painful. The events and thoughts and habits that got me here were in motion before I met Tom.
I'm lost and not quite sure how I got here.
Actually, that's not true. I know exactly how I got here. I can name a million reasons from personal problems to mistakes I've made to the economy to the weather to the fact that I don't like the color of my shirt. As you can guess, they might sound like reasons in my head, but in reality they're little more than excuses. There are some real factors in there - the biggest one being that I didn't learn a valuable lesson early on in my real estate career and I am now paying for that missed lesson. I had a good start with my move to RE/MAX Access and was feeling much more "settled in" to real estate than I did previously - remember I was still a relatively new agent. Along the way, I made one gigantic mistake. I forgot to prospect and continue to grow my client list. I'm sure all of you are moaning and groaning, "Oh Matt, that's number one in real estate!," and probably have a million stories of how and why you have to prospect. That's neither here nor there. This story is bigger than that.
As I forgot to prospect, my business slumped. As my business slumped, I felt depressed about not having any business. As I felt depressed about not having any business, I let my business slump some more. Can you see the vicious cycle that's building there? I let myself slide down the well into this dark hole known as rock bottom. I got here and truthfully couldn't figure out a way to climb back up.
The Well of Souls.
I never gave up, but I think I was starting to get used to my little place down here at rock bottom. Sure, it wasn't the nicest place on earth, but after being on tour for fourteen years of your life, traveling to some of the biggest hell holes on the planet, you find yourself adapting in ways you never thought possible. I wasn't comfortable, but I was alive - and that's always a huge plus in my book.
Tom Ferry could see what was happening through the emails and conversations we had. I'll write a glowing review of him any day, he's a really smart, intuitive guy who (remember, he's doing this for free for me) actually seems to care. It makes sense - if I fail, he fails. He'll be able to walk away, because he has plenty of other clients and he can carry on, but Tom has been more than direct in making me understand that he could walk away and wipe his hands clean, but he's not about to (I think he's one of those people that loves a good challenge).
Tom is brutally honest and it's one of the things I like most about him. Our conversations are open and he doesn't hold back. I mean he really doesn't hold back. Nothing is off limits or too harsh. That's not to say all he does is yell at me, but he has let me have it. Tom is the one who used the phrase rock bottom as we were talking the other day. When he said it, I was a little taken aback and maybe even a little hurt by it, but after a millisecond of thought - I had to agree. I had hit rock bottom and needed some serious help.
Enter the rope of thorns.
In our conversation (our coaching calls are a wide ranging conversation, a style I like and find helpful), Tom threw me a rope with the interest of me climbing back out. There was only one problem. Tom's rope was a twisted mess of sharp thorns and splinters. If I wanted to climb back up, I was probably going to have to go through some pain to do so.
Tom's rope is rather simple and I may write a post about it someday, but for now, I will tell you this. It is not something I was prepared for. It was so specific and exact, that I flinched when he told me and to be completely open about it, I had immediate doubts. Of course, I think Tom knew I would have my doubts - that's a common trait among us hole-dwellers. We discussed the rope and he asked me two simple questions, "Will you climb the rope? Will you do it no matter how much your hands bleed?" I agreed (after a bit of nervous sweating and thought) and he tossed the rope down from the heights above.
With any rope, the climb is only as good as two things; a) the dedication of the climber and b) the strength of the person holding the end at the top of the hole. Tom refuses to let me climb half way, only to say "I can't" and slide back down to the bottom. So he made the climb a bit personal. Ok, a lot personal. The climb might be tough, but he gave me a simple option - climb it or climb it half way and watch him let go of the rope. With a smile. All this metaphor might seem a bit much, but think about it - which is more painful? Cutting your hands as you climb and sweating your way through the blood and tears to get back to where you want to be? Or getting half way there and watching a maniacal Tom Ferry laugh as he waves goodbye and let's the rope slip from his fingers (Did you picture Tom at the top with devil horns and a forked tail? I did.). Of course, Tom isn't the devil in this situation, he's my coach - and he's given me the incentive of a lifetime.
The gentlemen's agreement.
Since Tom and I are not in a paid situation, he doesn't have quite the normal incentives to offer me. He told me some funny stories of things he's used to incentivize clients of his, but I was a different case. Being an inventive and intuitive guy, he came up with a plan. I won't reveal the terms of our agreement, but let me tell you this. If I lose, give up, or don't put everything I have into climbing up this rope, I probably won't be a real estate agent after this is over. I will be destroyed as a real estate agent and probably leave the business. No, Tom doesn't have compromising photos of me that he's going to mail to NAR or anything cop-drama like (or at least I certainly hope he doesn't). However, our agreement and his end of what happens if I refuse to climb is so particularly devastating to me, that I wouldn't be able to continue as a Realtor®. Yeah, it's that bad. And as a man of my word, I'm going to be sending him something today that will give him the necessary key to do exactly what he has said he will do, if I do fail. I could hide this information from him, but it's a gentlemen's agreement and I have no plan to go back on my word. In my email to Tom, I am going to ask him to comment here when he has the keys to the castle, so you all know he has what needs to fulfill his end of the agreement if I do back down.
The first few inches.
This rope is really long, perhaps because rock bottom is really far down. I'm scared out of my mind that this is going to be painful. I'm sweating, I'm nervous, and I'm shaking, but yesterday, I took hold of the rope. As I grabbed it, the sharp thorns gouged their way into my palms and I was already thinking, "this is insane." Who in their right mind would agree to what I had agreed to? It's not the rope, it's the consequence that scares me. The rope hurts as it digs into my skin, but that's the least of my worries. As my hands begin to numb from the constant cuts, scrapes, and the pressure of holding on for dear life; the climb got a little easier. Not much easier, just a very tiny bit easier. I kept my eyes focused about two feet ahead on the rope - I didn't want to look straight up for fear I'd see just how far of a climb it was. Instead, I focused on inching my way up the rope. As I would make some progress, occasionally my hands would slip from the blood and sweat that by now was pouring out of them. A slide down the rope is even more painful than a climb up (as the thorns tear through the skin instead of just jabbing and poking through it). If I slipped a few inches, the pain reminded me that the upward motion was much easier than the downward slide (and of course, the after effect of giving up). So hand over hand I continued.
I made it through the first day. I didn't climb quite as high as I had hoped, but I learned a few things on the way. New ways to grasp the rope in order to make it a little more comfortable and take full advantage of efficient measures to get further, faster. Tom was still up top, calling down to me and giving me some pointers, but for the most part, I was left to my own devices - Tom can't climb the rope for me. I shouted up to Tom and gave him a report on the day's progress as I will everyday (it's so dark at rock bottom Tom can't see just where I'm at without progress reports).
I will make this climb - even if it kills me. I have no choice. Well, I do have a choice, but that's to settle in to rock bottom and make myself a new home there. For some strange reason, that doesn't sound like a good idea to me. I hear there are monsters that live down here and although I might be afraid of the pain of the rope, I'm more afraid of the monsters that lurk in the dark. Today, I tackle a few more feet - one day at a time, I will climb this rope to meet Tom on the edge of the well and when I do, expect me to celebrate. Start gathering your party hats and noise makers, you might want to bake a cake even (I like chocolate, thank you!), I'm not sure exactly when I'll be standing on the edge of the hole that leads back down to rock bottom, but I am working to get there as fast as I can.
PS Despite my own fears, I've decided to make this public content. Some may think that's insane (and maybe I do too), but I have always been open about the successes and failures I have experienced in real estate. Although a consumer might read this and think "why would I hire a struggling real estate agent," I think the reason for the struggle is important. I am an excellent agent - when I have the business to be excellent - but if I'm not generating the business (one of the hardest parts of a career in real estate), I can't show myself to be excellent at all the things we do everyday - writing contracts, negotiating, listing homes for sale, helping buyers find a new home, and all the fun stuff in between. This is about me struggling to be excellent at the consumer-facing-side of real estate, this is me struggling to get in front of those consumers in order to grow my business.
This is an Excellent explanation of Buyers Agency and why it's important to both the Buyer and the Agent representing them! Great Job Ty Lacroix, Bravo!!
What is a Buyer Agency Agreement and what are the Benefits?
Entering into a Buyer Agency Agreement (now a requirement issued by RECO - Real Estate Council of Ontario) has countless advantages and no disadvantages. When you sign a Buyer Agency Agreement, you are simply agreeing to "hire" a personal representative who, by law, must represent your best interests to the best of his/her ability. All of this personal service is available at absolutely NO COST TO YOU! With Ty and the Envelope Real Estate's Associates you get an entire team of real estate professionals devoted to protecting your needs to help you make one of the most important investment decisions of your life - and you don't even have to pay a fee!
You are probably saying to yourself, "this sounds too good to be true! What's the catch?" The "catch" is that you are signing a legal document between you and the Buyer Sales Representative that will establish a legal relationship with duties and obligations on the parts of both parties. Your Representative's obligations are set forth by law, as is your obligation. Your obligation is merely this: you agree to let the Envelope Team represent your home buying needs exclusively throughout the duration of the agreement until you find a home and take title. The duration is a variable you decide. This is to guarantee that the Buyer Sales Representative receives compensation from the Seller's Agent for the work she/he has been doing for you. Signing the Buyer Agency Agreement merely means that you agree that your Representative should be compensated for the services in guiding you professionally through the home buying process.
Of course, the beauty of the situation for the Buyer is that you don't even have to pay a fee. If you do buy a home while under a Buyer Agency Agreement, the Buyer Sales Representative named in the agreement must receive commission compensation. This is established by law to prevent unscrupulous people from taking advantage of the compensation structure of the real estate industry. You are not paying your Representative's commission; there is no advantage to trying to save money by circumventing the Representative's services.
Your Interests are Professionally Represented
Enlisting the services of a professional Buyer Sales Representative is similar to using an accountant to help you with your taxes, a doctor to help you with your health care, or a mechanic to help your with your car. So the first advantage is obvious. If you had the time to devote to learning all you need to know about accounting, medicine, and automotive mechanics, you could do these services yourself! But who has the time. You probably already have a full-time career to which you are committed. This is why you allow other professionals to help you in specific areas of expertise.
The Envelope Team is devoted to perfecting real estate service. Continuous education, market research and vast experience are combined with an excellent Team of Professionals to find you the perfect home quickly. The Envelope Team will guide you through the home buying process and exclusively represent your interests as we help you find a home, present your contract offer, negotiate and close.
Just as your accountant, doctor and mechanic get to know your needs through a steady relationship; your Buyer Sales Representative also gets to know your real estate needs and concerns. This type of relationship is built by open communication at all times and by touring homes with your Representative so they get a good idea of your feedback and concerns. If you try to jump from Representative to Representative, you will not receive the best real estate service possible and you will be violating your agreement with your Representative. There is nothing to gain from trying to find and tour homes on your own and you will spend a lot of time when your Representative can tell you everything about any home before you see it.
It is always better to make an informed decision to buy something than it is to be sold something. When you hire a Buyer Sales Representative, your interests are professionally represented, and you have more control and peace of mind than if you are simply sold any home you find. Buying a home is a big decision. Let your representative act as your specialist, even if you happen to find the perfect home yourself. Finding the home is only one step in the home buying process.
'NOT ALL REALTORS* ARE THE SAME', One call or email to me and you will know why!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
which had came out back in 2003 and I absolutely Love It!! So, 
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