Listing Clause...Vesting Sellers

I wanted to pass this on to you. It's a clause that I am having my agents put in all of their listing contracts during this market cycle. Maybe forever. I have found that when doing a listing with a Seller, they are more likely to help keep their end of the bargain if they have something vested themselves. Use it if you want...here's my permission!

Throughout the years, I have found that if Sellers approach the listing process with a "What the heck, it's not going to cost me anything..." approach, you will end up losing money in the long run. Listings, when property marketed, cost money. There's sign placement, printing, advertising, open houses, etc... Then there are wasted showings where the Seller "doesn't find it convenient at the time" or cannot be bothered to answer a showing request for some unknown reason.

  A Listing Agreement is NOT a One Sided Deal!

HOWEVER, a Listing Contract is a contract.  That means it has parts for all the parties to perform. If a party does not perform to his or her part, there are consequences. For so long, the brunt of the consequences have fallen upon the Listing Agent, weather the default has been on the part of the Principle(s) or the Agent.

Therefore, here at Rocky Mountain Realty in Colorado Springs, CO, we have started putting this clause in all of our Listing Contracts:

"In the event the Seller opts to cancel or withdraw this listing before it's term, the Seller agrees to pay the Listing Broker a fee of 500.00 OR actual documented marketing expenses, (whichever is more), within 30 days of termination of this contract. This fee will also be paid by the Seller in the event that the Seller is unwilling to show the property during reasonable times as outlined in this agreement, or in the event the Seller fails to perform to the specifications contained in this agreement."

After all, guys, our consequences take up the remaining 5 pages of the agreement, don't they? I have yet to have one person refuse to sign the agreement. Instead, when I read through the paragraph, I explain, "We have developed this policy because there have been some Sellers, believe it or not, who have caused us to spend all sorts of money on their behalf, only to cancel the listing or refuse to show". They invariably say, "Well that sounds reasonable" or "That's only fair."

Anyway, I think we should all work hard...but then we should ALWAYS get paid something.

Hello California...Where Can I Retire There?

What better place to ask my fellow Brokers for advice than "in the Rain"? My aging parents are looking for a retirement destination and my husband and I are saving toward that iminent goal...(after all, the last 40something years just FLEW by, so the next several will. Every time I turn around, it's my birthday again!)

Lower cost of living is usually a concern for most retirees, but even more so, I think comfort and climate is important. Being a large woman...to put it mildly, :-) I prefer warm, but NOT HOT AND HUMID. California is the logical solution, but it's EXPENSIVE.

We don't want to live in the desert, but are there other reasonably priced places to retire? Let me know your thoughts.

I am also open to hearing about other temperate locations throughout the country. Not TOO hot or TOO cold!

I wonder what property in Wine Country was going for when this fella' lived there?

Bad Press...A One Way Street!

Today there was an article on the front page of our local Newspaper entitled, "Three Real Estate Firms Subpoenaed in Kickback Probe". I chose not to cut and post the link to the article because I happen to know that at least one of the brokers named seems to be a man of integrity and I don't want to give him the negative press. The article DOES go on to say:

 That's the Good Ol' Newspaper for ya!

"The Springs brokerages are not suspected of wrongdoing at this time, said Erin Toll, director of the Colorado Real Estate Division. "...

But the damage is done because of the headline and the accusation. I feel like the newspaper has free reign under the guise of "freedom of speech", yet when I wanted to run an advertisement with a local paper that said somewher in the body, "CHEAPER THAN PRINT ADVERTISING", my ad was rejected by the editor because it was considered "UNFAIRLY COMPETITIVE." How come the pendulum doesn't swing both ways?

You can all but damage the reputations of three Brokers and sneak a little, "but they probably didn't do it" at the bottom of the page, but DON'T say you can find cheaper advertising than the newspaper. Where's MY freedom of speech protected? I was paying for the ad. It violated no Federal Fair Housing, Regulation Z, or RESPA Law...

Something to think about!

Appraisers "FUDGING" The Wrong Way Court Banks At Public Expense

 "INSERT EQUITY HERE!"

We all know there has been some terrific controversy concerning some of the less reputable appraisers that inflated values during the recent market in order to obtain value that just wasn't there.

There are some appraisers that are still riding that last wave until someone stops them...AND THEY WILL. I see several license suspensions on the Colorado Department of Regulatory Agencies web site for both licensed appraisers and real estate professionals.

If I were an appraiser, you can bet that I would be as fair as I could by using viable comparable and actual, documented information pertaining to the properties that I was appraising...now more than ever because there may be some undue scrutiny of even the most experienced, reputable appraisers.

This is the case also in the Real Estate and Mortgage industries as well. The point I want to make is that I feel it is EQUALLY disturbing that this new trend of "low balling" to be on the safe side is popping up lately in the deals that I've seen in my office.

We are small and have just 7 agents, all active to some capacity, so I do have involvement in each of their deals. I notice that the last two VA Appraisals we had have come in EXTREMELY low when they are held up to recent comps of the EXACT SAME model and square foot home ON THE SAME STREET and in the SAME NEIGHBORHOOD. No comps over 6 months old...and in one case, the subject property had been COMPLETELY remodeled and came in at 5k less than it's 4 month old sister-comp directly across the street that had NOT been remodeled.

ISN'T FUDGING THE WRONG WAY TO SAVE THE APPRAISER'S UNCOMFORTABLE SCRUTINY JUST AS DISHONEST AS OVER-VALUATING A PROPERTY? It should be...and perhaps MORE so because everyone is talking about how the former appraisal practices have cost the banks millions of dollars, but the latter practice is costing THE GENERAL PUBLIC and PRIVATE CITIZENS millions of dollars in valuation. Why is this ok? Is anyone else seeing this?

Quick Everyone! Get On The Assessor's Web Site!

Ok, so sick of all of the doom and gloom about the market and how things are soooooo terrible. I'm trying to encourage some of the newbies and some of the oldbies, too. So, many times I ask the question..."do you see any homes in your neighborhood priced at what they were in the 1970's?" It made me think. No matter how bad hair styles got, home values soared!

How much was YOUR home in the 1970's?

  Heeeeeere's Farrah's hair from the 70's

And in the 1980's?

  Everyone tried a little color in the 80's

How about the 1990's?

 Although hair started to be more reasonable in the 90's home prices still climbed!

Seeing a trend here? Oh, sure there were terrible times in some of our local and in the national market, but what inevitibly happens to most all real estate? So then it's just a question of waiting it out and pushing through to the better day. If you can tell me that your house is devalued more than a decade, I might listen to you. (Unless it's in a flood zone or has major structural damage), but other than that...you can't convince me that things aren't coming up and up and up...

Stuff I Don't Mind Paying More For...

  I'm fed up with substandard consumer products!

This is just a fun blog, so if you're looking for a serious debate, you'll have to move along. I was just thinking about stuff that I don't mind buying generic and stuff that I need my name brand of and I was also thinking about how I share that info with good friends. I have some good friends right hear on the Active Rain network, so here's the official list of stuff worth paying more for name brand for:

Hefty Force Flex Trash Bags- They are awesome, have handle ties and stretch without breaking!

Scott Toilet Tissue- More on each roll, lasts twice as long as other brands.

Soda - Any name brand you like...if you have a favorite, the store generic is not going to taste just like it.

Shampoo - Any name brand you like...The store brand or even cheap name brands will wreck your hair and strip color.

Ice Cream - most generics have hardly any choc. chips, nuts, or swirls...Safeway does have a great store brand, though, so they are an exception to most.

Dawn Dishwashing Liquid - store brands are thinner, don't lather as well or cut the grease as well.

Here's some stuff that is FINE in a generic...you'd never tell the difference:

Pretzels and many snacks

Bread

eggs, milk, cheese

water

seasoning

most canned goods and soups

cereal

cookies, (some generics taste even better than brand and are much cheaper)

Well...I've go to go shopping! Can you tell?

Matt Inspired this Independent Brokerage Blog!

 Hi There!

K...we are always hearing about KW, REMAX, EXIT, blah, blah, blah! Now, I have lots of friends who are "franchised at the hip", but we don't hear enough about the importance of Independent Brokerages here in the Rain.

Here's Matt's blog: http://activerain.com/blogsview/328834/Top-brokerage-franchise-by

According to the calculations displayed on Matt's deal, we stand to make up more than HALF of the membership, (66,214 as of today). If anyone has stats on the national sales avgs. of independents vs franchises, I'd love to hear them.

As of this date, just a little over a year after posting my first blog, I am on my 4th PAYING AR lead and I have referred out a couple of deals that have not yet closed. How about you? (BTW...I really don't have anything against franchises and I have referred to KW, EXIT, and some others on the out bound to prove it). I'm just having some fun and PROMOTING INDEPENDENTS.

Today, I want to hear from some Independent and small brokerages and how the rain has helped you! I want to hear how much money each of you saved in franchise fees this year! :-)

Have a great day and don't forget to blog!~

Blaming, Lie Detector Tests, and Other Nonsense

  I AM HERE!

OK...sometimes people on the rain write stuff just to get people's panties in a bunch. I came across one such post the other day and I have to admit...I do kind of have a wedgie right now! Here's the link...it's short so you can check it out:

http://activerain.com/blogsview/324677/Should-Lie-Detector-Tests

Now, it's one of those "blame" posts about the sub prime thing. As I answered his post, I found myself thinking about how far anyone can go in the blame game.  Should we be expected to infringe on people's rights to make bad decisions? They still do that even though there are not the type of sub-prime loans out there that make it easier for bad financial decision makers to get a mortgage.

People still want to overspend in many cases. People who are not in the position to purchase a home because of health or personal issues still purchase. Should we be expected to police them? To deny them our services as buyer's agents and consequently deny them their legal rights because we want to act like God and say how much house they can afford and where and when they should purchase? That's not our job. We are there to help them find the house they want.

Big news...the house they want is going to be, (9 times out of 10), at the TOP of the budget they can squeeze. Whatever they "qualify" for, right?

I told the blame guy that the only people that can truly "AFFORD" to purchase a home are the ones that have cash, (and I should have added and have future cash to keep taxes current), but anyone who needs a loan of any kind, can't REALLY afford what they are buying. Credit cards wouldn't exist if people lived within their means. Neither would mortgages. Like I told Lance, you can die, you can lose your job, anything could happen...

How far do these "blamers" want us to go with our powers of judgment over other people's lives? Should we say if they are mentally and emotionally ready? Should we have final approval over where and when they move and weather we think it's a good decision?

New Way To Get Houses Sold! GHETTO FABULOUS!

They've all done it! Ralph Lauren, Martha Stewart, Laura Ashley...and now, LANIA DEMERS presents:

The Ghetto Fabulous Line, (exclusively available through my Colorado Springs Office)! That's right, the old Aspen White and Lyndhurst Castle classic colors aren't selling homes like they used to, so I've come up with this new strategy...

I'm developing a fresh line of exterior house paints so HIDEOUS, so VULGAR, so OFFENSIVE that the neighbors will chip in to buy your listings just so they can re-paint them and bring their own property values back up!!! Here's just a sample of what I have planned for this spring:

 Pistachio Salad from our "Pot Luck Dinner Collection"

 "Pepto" from our "Coyote Ugly Morning After Collection"

 "GO BRONCOS" from our "Colorado Redneck Collection"

 "Grape Nightmare" from our "Colorblind Designer Collection"

 Be one of the first to order your custom palet and make sure you get those listings next door to the sharpest home on the block for optimum marketing power!!!

CAST THY BREAD UPON THE WATERS? WHAT?

Hi Rainers! The New Year is always such a busy time. All of the Holiday parties and obligations are fulfilled and things are going full swing toward organization for the New Year. Tax stuff needs to be done and it'a a great time for reflection of what we did, what we are doing and what we SHOULD do this coming year.

  Keep writing those deals on the board!

A funny thing happened as I walked by the tree on the way back from the rest room in our office...I noticed that the BOARD WAS FILLING UP with under contract listings and sales! Now that's something we haven't seen in quite a while! I wondered what the reason for that might be. Hmmmmm...is the economy getting stronger? Are relocations to the area picking up? Is one of the agents on fire? Maybe we're coming out of the "slump"?

It could be a lot of things, but one thing I know for sure is that the agent whose name appears on most of those under contract listings, (Robin Cleveland), has been in this office working her little fanny off for month after dry month for the past several. With no deal in sight, she'd come in and sit at that desk and make phone call after phone call...sending e-mail after e-mail, HOPING for a bight and guess what? When the fish started bighting, they bit hard and told their friends where the feeding frenzy was.

 She just kept on fishing when no fish bit...

Now, my formerly discouraged agent/friend is starting this year off with a BANG. And not because she made a resolution and got right on that the first of the year...NO, NO, NO...she started chumming the waters far before the fish were even in the mood to eat, so that as soon as some real estate needs came up, Robin was fresh in their mind, albeit synonomous with real estate and she is listing and selling like CRAZY.

This reminds me of a great Bible verse: 

In case you don't understand the context, I believe it's the Lord's way of telling us that the fish don't always bight immediately...but they do eventually and you have to be there waiting to catch them!

Have a blessed and fulfilling New Year!