Jay's Phoenix Area Real Estate (and more...)

Can you build "real" relationships through social media?

Jay Thompson (Thompson's Realty) — Sat, 10 Dec 2011 16:10:31 -0800

Update 12/11/2011 - Clint Miller passed away this evening. Godspeed my friend.

Mona Gersky wrote a great featured post yesterday titled, "Are We Losing Something "Real" With Our Obsession With Social Media?".

It's an interesting question, and one that comes up frequently in discussions about social media.

I don't think there is any question that real estate is ultimately a face-to-face, "belly to belly" business.

But, social media platforms can and do provide some amazing tools to facilitate making those face to face relationships happen.

And there is zero question in my mind that very real, very powerful, relationships CAN be established through social media channels.

Below is a short video I made yesterday for my friend (and friend of many on AR), Clint Miller. I'd like you to watch this video. And while you are watching, keep in mind that I have never met Clint "In Real Life". Not once have we shaken hands. Or hugged. But we have talked a LOT via Twitter, Facebook, blog comments and email.

Think about that and watch this video.

When it is over, you tell me -- can you build a "real" relationship through social media?

I think you know my answer...

Warning, contains some "adult language"...

If you're interested in another example of the power of social media that's related to Clint's situation, take a look at this post, Think Twitter is Stupid? This 24 second video may change your mind.

I'm not trying to tell you that social media can replace face to face interaction. It can't.

But don't tell me you can't build real relationships through social media...

Here are some other AR posts on relationships in social media:

Mimi Foster - "Faux or real relationships"

Let's make leaving agent reviews easy at ReviewOurAgnents.com

Jay Thompson (Thompson's Realty) — Sat, 23 Apr 2011 13:13:48 -0700

Look Honey! Another website project...

I know there are people out there that don't like agent review sites.

I don't understand that. The public certianly uses review sites of many flavors. And if you are good at what you do, why would you be opposed to clients saying so on a public forum?

To that end, I've created a website to make it easier for our brokerage's agents to solicit client reviews.

Welcome ReviewOurAgents.com to the Internet.

The concept is simple. Provide an easy to use "one-stop spot" for cleints to read, and leave, reviews for our agents.

Will it catch on? I don't know. But in less than 24 hours, past clients have left reviewa of their agent right on the site itself.

Earnest Money - what, why, how much?

Jay Thompson (Thompson's Realty) — Wed, 05 Jan 2011 18:24:20 -0800

Author's Note: This post was originally published on Active Rain on June 25, 2006 and was recognized by Bob Stewart and other AR founders as the first real blog post on Active Rain. In an act governed primarily by emotion, I deleted it, and all my other AR posts on July 7, 2010. Sometimes I regret that move. Sometimes not. However, Bob personally asked me to restore this post for its "historical interest". And Bob's a great guy. So, here it is...

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Earnest Money – whenever we’re writing up an offer for a buyer, invariably the one thing that generates the most questions is earnest money. What is it, why do I need it, how much, will I lose it – these questions almost always require a lot of discussion and education.

What is earnest money and why do I need it? The “book definition” of earnest money is: “A deposit paid by a buyer to a seller to demonstrate intention to complete the purchase.”

That pretty much sums it up. In Arizona real estate, earnest money is some amount of money, deposited in escrow, which helps show the seller that a buyer is serious. Normally the earnest money is applied to the buyer’s down payment at close of escrow.

Without earnest money, and the possibility of losing it, there is nothing to stop a buyer from submitting offers on multiple properties. Without earnest money, there is nothing to stop a buyer from just walking away from a contract days or weeks after it’s been accepted and the seller has taken their home off the market. Sellers want and need to know that a buyer is serious about the offer on their property.

How much earnest money do I need? The simple answer is, “the more the better”. The complicated answer (and one that’s virtually impossible to know in advance) is, “whatever it takes to make the seller know you are serious”. **Generally** speaking, 1% of the offer price is considered a reasonable amount. But like anything in real estate, there are no hard and fast rules. I’ve seen offers written with as little as $1 earnest money and as much as 100% of the sales price.

An example may be helpful here. Let’s say a seller gets two offers. They are identical in price, down payment amount, close of escrow date, etc. But offer #1 has a higher earnest money deposit than offer #2. Regardless of the true motivation of the buyers, the seller will most likely accept the offer with the higher earnest money amount. A significantly higher earnest money amount may even make a seller consider one offer over another even is there is difference is terms such as price, close of escrow, etc. Higher earnest money amounts signify to sellers that a buyer is serious and more likely to close the transaction.

Can I lose my earnest money? The short answer is yes. The complete answer is maybe. Again, generally speaking, your earnest money is “safe” unless you default on the contract. Should the seller default, your earnest money will be returned. In Arizona, the typical “inspection period” (or “due diligence” period) is 10 days. If the property you make an offer on doesn’t “pass” inspection, or if the seller declines to do requested repairs, the buyer can cancel the contract and get their earnest money back. There are also contingencies in the standard residential resale contract that a home must appraise for the asking price and the buyer must be able to secure financing. If neither of these contingencies are met, then generally earnest money is returned to the buyer.

Most earnest money is lost when the buyer backs out after the inspection period. In this case, the seller will almost always retain the buyer’s earnest money.

There’s nothing to be afraid of with earnest money. If you are serious about purchasing a home, you need to indicate to the seller you are serious. They’ll be taking what is probably their single largest asset off the market if they accept your offer. They need to know you are serious about completing the sale. That’s why a seller wants to see that you can get a loan, that you aren’t “fishing” with multiple offers, and that you aren’t going to back out at the last minute. A reasonable earnest money deposit helps reassure the seller you are serious about buying their home.