Hi folks. OK so Wendy and me are now "Official Short Sale Instructors." Even though we are instructing we are also learning. We are learning how to work together and how to market our new business. With any new business venture one of the first things you want to define is your "Unique Value Proposition".
Your Unique Value Proposition is:
Clearly identifying how your products and services are different from your competition.
Basically, you have to know what sets you apart from your competition. Whether you are selling houses, Webinars or widgets, if you don't have something unique to sell, you will struggle. You will get lost in the mix of ordinary.
And.....it's NOT necessarily the product that has to be unique. It could be the marketing (Think Geico). It could be the delivery (NetFlix). Or, of course, it could very well the product (Swiss Army Knife) .
Whatever business you are in you MUST be able to answer the question......
"Why should your ideal customer purchase from you rather than from anybody else?"
On our quest to answer this question, Wendy and I keep getting back to this answer....
"We are both full-time, working Brokers who list and sell short sales, all day, every day."
So what is YOUR Unique Value Proposition? Do you know?
WHAT OUR STUDENTS ARE SAYING
"I’ve completed lots of training but feel yours was most valuable in your method of approach and delivery. The dialogue made it feel like I was in an actual brick and mortar classroom with real live scenario." Wendy Weber, Realtor, Scottsdale, AZ
"Your webinar was very impressive and informative. I feel that it didn't come across as a lecture, but good and clear conversation. The short sale is a very complex process, but you have made it much clearer and there was a lot of useful information." Richard Barton Real Estate Investor
"I am really glad you guys are doing this, I was looking for a class taught by practicing real estate brokers." Jana Hristova
"I enjoyed the SS session 1 yesterday and look forward to the next 4. After Wendy’s comment about the lame duck DOD HAP program yesterday I decided to blast my Congressman and 2 Senators an email blasting DODs inaction as a Citizen, Veteran and Realtor serving military clients." Don Duft, REALTOR®
"I just wanted to thank you again and let you know that you and Wendy did a fabulous job! I’m really looking forward to the next one." Debe Maxwell, Realtor®/Broker
WOW, check out the yard on this end unit townhome in the Winter Park complex, Fort Walton Beach, Florida. This lot is equal or bigger than some single family homes and fenced! New tile, new granite counters in kitchen and master bath, updated fixtures, custom center-isle in kitchen. Brand new HUGE deck for great parties. Upstairs has two balconies, with new wood. New lower roof shingles. Huge master closet. The downstairs has a great open floor plan with a half bath. Upstairs two good sized bedrooms, each with its own balcony. Located in between Eglin AFB and Hurlburt Field, and just minutes to Emerald Coast beaches on Okaloosa Island and Destin Florida. Owners spent $20,000 in improvements- only thing left to do is replace the carpet.
Short sale offered at $73,900
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Call Wendy Rulnick, Broker, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy specializes in Short Sales, Pre-Foreclosure listings, as well as traditional sales and marketing.
Today I was talking with a title agent in my Destin Florida market who handles short sale negotiationsfor agents. He lamented that he had two contracts recently fall apart, with buyers walking.
“Why?” I asked.
“ Well, the agents don’t have the seller sign the contract, so it is just an offer. There is nothing to hold them.”
“Stop doing that!” I told him, “I would never send an ‘offer’ in to a short sale lender.”
Which brings me to my point- " How can you increase the chances of your buyer “walking” from a short sale?"Just follow these tips:
1. Don’t have the seller sign the contract.Thenit is not a contract, just an offer, and the buyer can bail without repercussion.
2. Never ask for an earnest money deposit.Why ask the buyer to put anything on the line to show his investment in the contract? Then he can walk free, usually, with nothing to “lose”.
3.Use a 60 day closing and 30 day short sale approval time line.Sure, that will be enough time to get a typical short sale approved- Not!Oh well, if the time frame passes after hours and days of work invested, and the buyer doesn’t “stay”, you can always start all over on a new transaction.
4. Write in the contract that the buyer can “Withdraw at any time”. That should simplify things.
5. Finally, let the contract be submitted to the lender with others, just like an auction,because the short sale lender will abide by contract provisions and honor the "primary" offer first, right?That tactic will make your buyer stick like glue.
Follow these tips, and you’ll be sure to decrease your chances of closing on a short sale. Or, get a buyer with realistic expectations, a good deposit, one strong offer, and an "executed" contract, and be on your way to a successful short sale closing.
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Call Wendy Rulnick, Destin real estate agent,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.
Debe Maxwell, one of our charter Short Sale Basics students, critiques our first session.... Thank you, Debe!-- from me and Broker Bryant. Next session is July 11, see you then!
Active Rain Family Does it Again--This Time It's Short Sales!
I had the honor of participating in the first of a five-part series on Short Sales with Bryant Tutus & Wendy Rulnick and the class was absolutelywonderful! As you all know, I've been very fortunate to live in an area that did not have the 'bubble' to burst but, the national economy has slowly but, surely 'trickled down' to Charlotte! We had never even heard of short sales in 2007 and now, we are seeing them--and we need HELP!
Bryant (aka BB--TLW's 'other-half'!) and Wendy, fellow Active Rain members, have offered a five-part "Short Sale Basics" course via webinar at a very affordable price. They have both been participating in short sales for manyyears and together, share a wealth of knowledge that they're freely sharing with us! Okay, it's not really 'free!'
After some guidance with my first few short sales from TLW, I realized that anything and everything that I could get my hands on that related to short sales was of utmost importance for my very-near-future--and my clients. With the wave of short sales hitting our area now, it has become increasingly stressful to watch agents who don't have a CLUE, list short sales and then have them turn into nightmares--not only for the sellers but, the buyers who are patiently waiting lender approval--that never seems to come to fruition.
I would just like to thank Broker Bryant & Wendy for so generously sharing their knowledge and helping those of us who do want to become perficient in this process, succeed--and, of course, TLW for getting me started until class was in 'session!' You guys are awesome!
A few of the short sale terms that we touched upon during the first session.
Why would a short sale lender ask for a promissory note or cash contribution from the seller? The emails below, from Bank of America negotiators, will show you exactly why:
EXAMPLE #1: Santa Rosa Beach Florida Short Sale
“ Please be advised, that before we discuss the closing costs you have to talk to the sellers regardingcontribution to mitigate the loss.
The reasons:
* FICO in the high 700, never late on any account, continue to make payments on all credit cards
* good deposits
* good income on tax returns
Requested contribution: Promissory note of 12,000, payable in 8 years, 125 per month, 0 interest.”
EXAMPLE #2: Destin Florida Short Sale
“Seller is currently paying off a car at 453.00 per month and several credit cards paid on time, Seller is getting deposits of 3000 and 2500 every other weeks on her bank accounts. I’m sure she can afford 333.33 per month.
The note is 0% interest for 5 years at 333.33 per month.There is no way we are releasing the liens debts over 684K without the seller contribution.”
Both of these examples show how financial information is scrutinized by the short sale lender.Apparently, good credit, few delinquencies and regular income make the seller a candidate for contributing to the shortfall. In other cases, the lender, servicer, or mortgage insurance company may request a contribution due to its loss amount or policy. It is best to prepare your seller in advance.
Call Wendy Rulnick, Destin real estate agent, to list and sell your home or condo or on the Emerald Coast of Florida: Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.
This week I had my all-time record fastest short sale approval. It took two days.
Here is what happened:
Property: Investment condo - Fort Walton Beach FL
Seller Hardship: Loss of Income
Lender: BB&T
Original Purchase Price: $640,000
Mortgage Balance: $550,000
Contract Price: $380,000
Submitted: 6/22
Approved: 6/24
Conditions: $30,000 promissory note negotiated directly between seller and BB&T
The key to this quick approval was both the lender and the package. Unlike many other lenders, BB&T will start a dialogue directly with the homeowner prior to the short sale listing. They assign a negotiator in advance. They do not suggest a list price. BB&T did not order an appraisal, either, so they must rely on internal valuation models. The package I sent had no missing items, and the buyer, price and terms were strong. After I received the approval, I called the buyer’s agent, a wonderful lady with whom I have worked before. She could not believe it, since we allowed over 90 days for lender approval in the contract. She was stunned. She said:
“Wendy…. Wendy…. Wendy… Oh my!... I don’t usually drink, but I think I’ll have a Margarita”.
I told her “Have two!”
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Call Wendy Rulnick, Destin real estate agent, to list and sell your home or condo or help you buy a home or rental property on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.
A few weeks ago my life started to change. I was asked to step outside my boundaries and outside of my comfort zone. What happened? I “met” Bryant Tutas- otherwise known as "Broker Bryant" on Activerain. You may have heard of him- he’s one of the best-known real estate bloggers around. His writing is insightful, direct, witty and often very funny. He’s got quite a following.
Anyway, in the past several months I started to notice Broker Bryant’s comments on my blog posts and others.I noticed we were “simpatico”, of like-mind, on many topics, notably short sales. We exchanged a few emails, and a couple of months ago, Bryant asked me if I was interested in doing a joint venture. Among other things, he wanted to know if I would do a live webinar with him about short sales.
Well, ignorant me, I did not even know what a webinar was! I had to look it up. If you don’t know– a webinar is an “online live educational presentation”. Bryant and I would teach real estate agents about short sales. That idea scared the heck out of me, but how could I say “no”? I love short sales! I love discussing them, analyzing them, doing them and answering questions about them. I welcome calls from agents in my area or around the country looking for information or direction on short sales. I love helping the consumer with short sales. And that is what I do all day. So does Bryant.
But what would we have to offer that would be different? There are a lot of “classes” about short sales.The difference here is that we are both practicing real estate agents who spend 90% of our time listing and selling short sales. And we do them from beginning to end. Bryant and I do all our own negotiating, we don’t refer out to a law firm, title agency, assistant or loss mitigation company.(Not that there is anything wrong with that). We are the ones on the telephone on hold with the negotiators- every day, getting sales closed. We think that our practical experience with the day-to-day workings of short sales can benefit others. We want to share what we've learned in a forum to provide concrete knowledge.
Enough about that. I am still nervous. We’ve never done this before- although Bryant has appeared on other webinars. So forgive us in advance if we goof up a little, or pause or stutter (especially me). What you will get, I promise, if you sign up for our webinar- is practical, usable, comprehensive information on short sales.
The first session of our five-part series is Saturday, June 27 at 11:00 a.m. Eastern. Join us.
I recently had a short sale contract on one of my listings in Mary Esther, Florida, where the seller had a VA (Veterans Administration) home loan. A VA short saleis called an "Offer in Compromise". The offer price was $120,000, which I thought was reasonable given the condition of the property. Wells Fargo, the short sale lender, ordered an appraisal. Not just any appraisal, but a VA appraisal, called a " Notice of Value" or NOV.
The seller's short sale VA appraisal came back at $135,000, much higher than the offer and fair market price, in my opinion. The buyer backed out due to other circumstances, so I did not contest the value. I informed Wells Fargo that I would not be able to sell the property at the appraised price, and asked how long they would keep that value active. They said "Six Months!" Whoa! I've got one year inventory levels in the Mary Esther FL, and the market is still declining.
It turns out that the Veterans Administration's policy that VA home loan appraisals are valid for six months extends to SHORT SALES, TOO!
Notice the VA information pamphlet above states: "Rapidly fluctuating real estate market conditions may temporarily dictate the use of a shorter validity period". Well, the VA has already formally addressed this concern for new construction master appraisals, which cover the same floorplan being built in new subdivisions by one builder. The bulletin, - "Suspension of Master Certificates of Reasonable Value". was released on May 22, 2009. Here is a quote below:
The VA bulletin states that due to the "rapidly declining market", holding new construction master appraisals for six months is rescinded! (This was reduced last year from 12 months).
Since the VA already acknowledges holding the appraisals valid for too long may be detrimental to the veteran in new construction, is it not reasonable to assume the same with existing construction AND with short sales? Both cases harm the vet by enforcing outdated values.
I hope the VA will issue a formal suspension of the standard appraisal time period for resale purchases and short sales. If they do not, I have enough ammunition to fight the next time!
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
In Destin, Florida, and around the country, as time goes by with short sales, a new problem is growing-- unpaid condo association dues. I currently have two short sales pending with with over $20,000 in unpaid association dues. Short sale mortgage holders are growing weary of paying these huge back-fees to facilitate a short sale. Sure, I've had $10,000 or $12,000 paid to satisfy associations in short sales before. But the longer the short sale or bank action takes, the more the dues will start piling up. Now I have Bank of America balking at paying the association dues on a $300,000 Destin short sale. They want my seller, with no income at all, to pay a promissory note of $40,000 or cash at closing of $20,000, because of the $20,000 past due amount. How am I tackling this problem?
Brainstorming solutions is one of my favorite parts of negotiations. Here is what I found:
The liability of a first mortgagee or its successor or assignees who acquire title to a unit by foreclosure or by deed in lieu of foreclosure for the unpaid assessments that became due prior to the mortgagee's acquisition of title is limited to the lesser of:
1. The unit's unpaid common expenses and regular periodic assessments which accrued or came due during the 6 months immediately preceding the acquisition of titleand for which payment in full has not been received by the association; or
2. One percent of the original mortgage debt. The provisions of this paragraph apply only if the first mortgagee joined the association as a defendant in the foreclosure action. Joinder of the association is not required if, on the date the complaint is filed, the association was dissolved or did not maintain an office or agent for service of process at a location which was known to or reasonably discoverable by the mortgagee.
In my case, there are about two years past due in condo fees. I have asked the association to agree to a compromise to accomodate the short sale. Basically, if the condo goes to foreclosure, they will only be paid 6 months dues by the senior lienholder.
If they could reduce the balance owed in any amount to allow the short sale to occur, then the association will gain by:
1. Immediate income to fund a project already in financial need
2. More than the minimal 6 months past due that a foreclosure action will pay them - at some later date
3. A new owner who will certainly be paying his dues on an ongoing basis, providing immediate cash flow
By agreeing to a lesser amount to allow the short sale, that does not mean the association will not pursue the homeowner separately for the balance owed. But a compromise can allow the short sale process to take place,both benefitting the condo project's financial position, and helping the homeowner solve his dilemma.
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Call Wendy Rulnick, Destin real estate agent,to list and sell your home or condo or help you buy a home or rental property on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.
This site, Wendy Rulnick or Rulnick Realty, Inc. is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax advisor for more information.
My husband and I had to go shopping for a new television last weekend. The old one was about to die - its channel guide was getting fuzzy and my eyesight is already "bat-like". We researched our options online, found one we wanted, then set out for a reconnaissance mission to Sears, Best Buy and yes, Sam's, at my Hubby's insistence.
Right away, at our first store, Sear's, there was our new flatscreen- and it was a lot less expensive than the internet price! I got really excited. The on-duty salesman, Lee, came over and quietly introduced himself to ask if we needed any help. My husband asked if it the t.v. had built-in speakers, and Lee said "Yes". Hubby didn't give signals to talk further (being an engineer), so Lee said to call him if we needed more help.
My husband and I walked up and down the aisles but I already KNEW it was the t.v. we wanted (OK-- " I" wanted). Hubby and I whispered ...."I really want it, let's get it now!" I said. My husband agreed.
I called Lee over and we said "We'll take it". He said he would have to check their inventory (sigh). Sadly, there were none in stock, but if we ordered it then, we could have it in three days.Hubby and I looked at each other. I said "Let's order it", but my husband wanted to finish our mission and go to the other stores.
Before we left, I asked the salesman, Lee, "Are you commission sales?"
"Yes", he responded.
"Then I want you to get credit for the sale if we call or come back to order the t.v. I am a salesperson, too, so I respect that."
Lee then filled out a customer-finder form so we could let any of the other Sears salespeople know we were "his" customers.
Hubby and I completed our research at the other stores. Sears was the best price by far. I sent Hubby to get the t.v. the next day. "Make sure you give the on-duty salesperson Lee's card so he gets credit!" I instructed.
"Why?" he asked innocently, being an engineer, "He didn't do any work. He answered one question."
"Honey", I said, "If someone called me up because they found a house, then grabbed me to write an offer, would I not deserve a commission? Some deals are easy, some are hard. That's just the way it is. Lee might have killed himself with the previous three customers. They might not have bought, or maybe they did not give his card so he didn't got credit when they did buy. Yes, we were ‘easy', but not all sales have to be ‘difficult' to make the salesman deserving."
Hubby went back to the store, and there was a different salesperson there, not Lee. He did a lot of work to take the order from my husband. I asked Hubby what he said when he gave him Lee's card... He said....
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.
Hi folks. OK so 
Posted by 
My husband and I had to go shopping for a new television last weekend
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