It is important that everyone understand that "business as usual" is long over. The new forms will be used. There are major changes in the way the process will unfold.
Come January 1st, 2010, as a REALTOR or a consumer at the closing table things are about to change as far as the Good Faith Estimate (GFE) and Settlement Statement (HUD-1). Links below will allow you to print these out to familiarize yourself with them. Both now are three pages in length. The highlights:
Revised Good Faith Estimate (GFE)
GFE tolerances on settlement costs (1/8 point allowed to be in error)
Revised Settlement Statement (HUD-1)
Revised definitions for application, Good Faith Estimate, and Mortgage Broker
Additional definitions for changed circumstances, origination services, loan originator, prepayment penalty, third party, title service and tolerance
Elimination of 1% origination fee cap on FHA loans
RESPA (Real Estate Settlement Procedures Act) forms apply to federally insured or backed loans such as FHA/VA/Conventional and NOT cash deals. There is also a 30 day cure period to give lenders after closing the ability to meet the tolerance. The closing script is eliminated as it is contained in the revised HUD-1. Average charges can be used by service providers and is not limited to loan originators.
Bottom line is it looks like the new GFE and HUD-1 want the borrower to be as crystal clear on everything related to the loan. It looks like the fastest you could go from app to close is about three weeks. On page three of the new HUD-1 boxes compare GFE and HUD-1 costs. On page 3 of the GFE they clearly in the instructions state what charges CANNOT increase past the GFE, can increase up to 10%, and what charges can change. It is VERY clear. The only thing weird I saw on both the new HUD-1 and GFE is it never clearly says the PITI monthly payment but just principal, interest, and mortgage insurance in the loan terms.
It looks a lot different for most of us, but print yourself out a copy and take a look. January is NOT that far off.
With closings averaging 130 pieces of paperwork both the REALTOR and the consumer need to know about these documents ahead of time. One last tip for both groups in this area, be sure to show up at the table with a U.S. government issued ID with a picture and your signature. This is mandatory for identification purposes. Good luck and happy closings!!!
The night air is turning cooler in the mid-atlantic region. The early autumn warm winds have turned cool as we move closer to Halloween. It is a great time to get outdoors and spend a little time with Mother Nature as she sheds her summer wardrobe and prepares us for the fall.
There is much to be learned from a walk in the park. It is the time of the year when mums strut their stuff. Each plant preening for just one more visit from the butterfly. Most of the butterflys have gone. A wiser man than I might know where they go. I just enjoy them
They don't seem to fly......no, they flit.........from here to there and back again. One day they are here and then....gone again.
I was just sitting on a rock, watching the last butterfly of the season. I thought .... one small creature creating so much beauty and grace as it moves through it's own life cycle.
I realized that love is like that butterfly. It shows up and dazzles you with beauty and grace. You sit in wonder. You enjoy every movement. Days can be spent pondering the ease with which it captures your spirit.
Then the fall comes, as it must. The butterfly is gone.
It was never yours anyway.
Butterflies, like love, are to be enjoyed for the moment. They should never be taken for granted. They should never be expected to more than they are............butterflies. Love is the same.
Don't despair.........fall will turn to winter and winter will turn to spring. Spring will bring flowers and if you are lucky, a butterfly again.
There was a time in the not so distant past when it was a very expensive place to live. Times have changed and homes are affordable in this area. The two hot spots are Fells Point and Canton.
Both neighborhoods are located close to the inner harbor. Both neighborhoods feature an urban lifestyle that has been attractive to young professionals. There are bars, restaurants, shops, galleries, boutiques and cafes. The homes are from another era, cute row homes that feature individual characteristics from days gone by.
Each season brings new experiences. As Autumn turns to Fall, the smell of burning leaves is mixed with the warm scent of bread cooking at the bakery. Winter brings the comfortable scent of wood burning from chimneys and pine roping that adorns storefronts. Spring arrives with fresh smell of flowers in bloom. Summer follows with the unmistakeable aroma of craps steaming.
If you are ready to take a trip to this little corner of the world, give me a call. Prices are now down to the low $100,000 range. Interest rates remain favorable and with or without the tax credit.......these homes are a steal.
I can be reached at 301-509-5111. If I don't answer, I might be enjoying the finest crabcakes this side of nivana, leave a message and I will get back to you.
I have shared thoughts, struggles and victories. I have commented here and there and left a mark or two. I have been brilliant and dull. I have been on target and off base. In so many ways, this piece is me. It was never put to paper at it's inception. I was driving from Silver Spring, MD to Rochester, NY. A friend was sitting next to me. I asked her to write down the words. They just rolled in my head and out my mouth.
That never happened before and never happened again..that i can recall....
This is about blogging, life, friendship, etc. ........... when it was created...I was not aware of how deeply you could appreciate the look in someones eye........
When I first joined here.......I blabbered........I blogged....I learned............ I have grown as a person. In turn I grew as an agent. ...........I have stood at the top of a few hills and wallowed in a few valleys.
100,000 + points later, I can only say that for me............they barely tip the scale of the friends, knowledge and confidence I gained along the way. I share the following because it is what it is and I understand what I was saying so long ago.............thanks for the ride AR...
Old story........drunk man sitting by the curb....dog walks up and sits next to him..............dog says........boy, you sure look terrible. drunk and sitting on the curb in your underwear. .... man never lifts his head...just belches and mumbles........if you think I look bad, you should see it from my side of these bloodshot eyes.
Before humor became misogynistic and bawdy, this sort of story caused a chuckle. There is a great deal of truth in stories like this. We are all usually very guilty of seeing the world and everyone and everything in it from our own perspective. We are apt to claim.......how else can we see things.
Step back...........yes, you see things from your own perspective but don't you think that your current state of mind naturally limits your focus. Isn't it possible that your current place creates your immediate reaction and all the experiences locked away in your memory stay hidden?
Empathy is never immediate. By its very nature it is the opposite of the Darwinian need to survive. It calls on each of us to set aside our perception of right and wrong and what may or may not be fair or proper. It requires that we follow another old adage....
"before you judge a man, walk a mile in his shoes"
How many times have we sat at a listing appointment and been prepared and had all the data about market trends and recent sales. We have had a bag full of graphs. We have been prepared to refute all arguments about price. We have sat and carefully gone over the data.
Then the seller has calmly looked at us and said........"I think we can get more" or any other of the thousand responses that mean "I am not accepting what you have presented".
Stunned ! We scramble and re-do the highlights. We go through the salient points of the presentation. We have the facts and we reinforce our argument. We are the expert here!
Often, we either take the listing at the price the seller wants with hopes of reducing it when traffic does not exist and offers fail to appear. We slink off knowing that we are right and "By God, the market will prove it!"
Come on folks, that is not representation. It may take a bit more time, but effective representation requires that you gain some knowledge about the process from your client's perspective. Fiduciary responsibility is not another term for Agent knows best.
It may surprise you, but getting the listing is not the goal. Your goal is to listen and understand the situation from the client's perspective. You job is to grasp the situation from the client's viewpoint. When you fully understand their position, then and only then can you determine if you can provide a service that will be beneficial to them.
Each and every seller deserves your full attention. Your ethics require that you put their interest first. In a way, you are admonished to put on their shoes for a bit and understand. Then proceed.
Please don't get caught up in the "I don't do this for free" or the "I have to charge a certain fee to do my job.". There is nothing here that precludes your being paid for the service your perform. If a client can not pay you what you desire........walk away. Accepting a listing that is over priced and putting time and effort into a home that will not sell at that price is very much like working for free.
You earn money performing a service. Fact finding is where you determine the situation and see if you can be of assistance. If you slow down and truly empathize with customers........you will find you end up with more happy clients and closed transactions.
Take a clue from the blind.........learn to listen with all your senses. You will be better and the world will be better served.
Last weekend, I had the opportunity to attend the travelling road show "Walking with Dinosaurs". I have to admit that I was thoroughly entertained. Robotics have come a long way. The eyes of the younger children in the crowd grew wide with amazement as life size replica's rolled onto the arena floor. The roar of T-Rex paralyzed young and old alike.
Driving home we discussed the era and how the dinosaurs were wiped out in an instant. The cataclysmic event of a gigantic meteor hitting the earth in the area of the gulf of Mexico created an after effect that ended life at it was know on the planet.
It happens. Many articles have been written using the dinosaur analogy. I have read many. They cast aspersions on those that still do business with napkins, scraps of paper and land lines. They scoff at those that still do business the same way today that it was done 20, 30 and 40 years ago. They miss the mark. They miss the important point. They overlook the obvious.
When the environment changes...
Dinosaurs Die
Now, to be sure, some things remain the same. Homes are staged, prepared for market and listed. Often, the agent will hold a broker's open. They use this to invite agents in to preview the home for their clients. In many markets, this tour takes place right after the Tuesday morning sales meeting.
Agents get in their caravan and drive around visiting these open houses. They then return to the office and pull out their roll-a-dex and proceed to call a few clients. They focus on those that may have a desire to see the home.
On a good day, the agent might speak with two or three clients.
and that my friend...is walking with dinosaurs.
The environment has changed. The telephone is a wonderful way of connecting with you current and past clients. Have you noticed.........it is not just a landline anymore. The telephone can be used to connect with your entire client base, with the flick of your finger.
Say hello to Twitter
This is a new tool available to anyone. It does not have to be used to share your every act. It does not have to be used to share your every idle thought. It is a way that you can let your entire client base know about that open house. It is a way you can share the information with everyone. It is just possible that your three, four, five or more calls never reached the right target. With twitter, you can reach them all.
Say hello to Facebook
This is a new tool available to anyone. It does not have to be used to share you high school pictures. It does not have to be used to share notes to friends. It is a way that you can let your entire "friend" list know about that open house, one of your listings or any of a myriad of things. It is a way that you can share information with everyone on your list. Again, it is just possible that your phone calls did not reach the right target. With Facebook, you can reach them all.
What else can you do with these new toys? You can create the appearance that you too can communicate with today's buying and selling community. Using them moves you from the old environment that is doomed to the new world where business is still being transacted.
Interest rates going down or going up? We all know they are in flux. You can share the information quickly and become the expert within in your sphere of influence with a tweet or a post.
There is always something new in our world of real estate. You can pick one item and share it quickly with a tweet or a post and solidify your position as an expert within your sphere of influence.
You have invested time and effort into your career. You have knowledge. Share it. There is a reason that you are paid a reasonable commission for your efforts. Don't keep that a secret. Take the time to share information with your sphere. You will be the expert they seek. It only takes a tweet or a post.
p.s. - small tip...don't be a pest (modern term is spammer). Only share once or twice a week. Don't post just to post. Don't tweet just to be seen. Quality is valued much more than quantity. With patience and perseverance, you will walk away from the dinosaurs and survive the current climate change.
Everyone should have access to the truth regarding buying or selling a home.
Knowledge requires understanding facts.
The confusion caused by "media" misinformation must be resolved.
Every transaction is governed by real estate law.
In Maryland, every client has the absolute right to representation.
The quality of representation has no relationship to the size of the brokerage.
Sounds pretty basic. As a matter of fact, it is the position every real estate agent or lender should support. So often, causes are created to raise funds. People hope to take advantage of the growing social networks and get donations for things that are important to them.
Tudela-MacArthur created this cause to raise awareness.
If you are a member of facebook, please click on the link and join the cause. It won't cost you any money. We believe that in the long run, supporting this cause and acting accordingly will save consumers thousands of dollars and offer the opportunity of a lifetime of happiness.
I personally have always felt nothing is gained when you don a new pair of shoes to hide your feet of clay. Waxing philosophical seems to be my modis operandi. You see, there is a provable fact that the continuum of our species goes back hundreds of thousands of years.
Millions of people have been born, lived and died. They are dead and gone. All that is left is the memories that continue to fade with each passing generation. It would seem, our greatest impact is now. Our only chance to make a small difference in the stream of life is to admit who we are, and share the good we each have to offer. Life's lessons are replete with lost opportunities and successful actions. The successes can only be realized when measured against the failed attempts.
Failures are just steps that put us closer to success. None of us is perfect. The longer we live, the more we actually see ourselves for what we are. We are just part of a collective group of people, living together in different places and different stages.
The way we view the world around us is the result of our experiences. This is partially revealed in the tragedy of 9-11. The young wanted to take up arms. The middle aged were angry and fearful. The older generation wondered why does man continue to destroy in the name of God. This is a generalization, but it speaks to the way one event is viewed by the cross section of humanity. To a greater scale, one group of zealots cheered the successful attack on our country and another group decried the senseless loss of lives.
When we are young, we fear having our failures exposed because we see them as a weakness. As we age, we see that each failure or mistake is merely a stop on the way to being "all you can be". Certainly, there are some that suffer from mental or emotional illness. They can not see reality. The vast majority of us are healthy and whether we admit our frailties or just ponder them in the dark of the night....we know they exist.
I share my life openly now. I hope that others can maybe see my mistakes, see the pitfalls I encountered and see that they all can be overcome. Regardless of how things appear as they occur, the intent is buried beneath the facade of what we present.
There is an old Waylon Jennings song "I've always been crazy" that has a very poignant line....."I can't say I'm proud of all the things that I've done, but I can say that I've never intentionally hurt anyone." That would be my desired epithet. Put it on my tombstone and let my ashes drift in the wind.
I am human. My profession is a Realtor. I am so much more than that, yet, I am that at all times. I am also a partner, a writer, an artist, a golfer, a dad, a Catholic, a joker, a friend, a patriot, a lefty, etc. All these things make me .....me. I am certainly ashamed of some of my actions and proud of others. I continue to strive towards being a complete person. Sharing posts such as this are another step in my journey. I do not seek sympathy, no, I see disclosure and the shared belief that "the sun always comes up... tomorrow."
A good friend of mine just returned from a 10 day foray into the wonders of a 30th High School reunion. She travelled to her native Peru...Lima to be exact.
Now, for the uninformed, high school classes in other countries are much closer knit than the chew'um up and churn'em out variety we have here in the good ole U.S. of A. These folks stay in contact from year to year. They share their joys and sorrows via visits or emails or telephone. They remain close regardless of the number of miles that may exist between them.
The trip was planned as the 25th reunion came to an end. My friend worked out every detail. She helped organize the lunches, teas and dinners. She helped plan the big party. She carefully plotted child care, travel and other details. As the day drew near, emails, facebook notes, and phone calls were shared. Lists were checked to see who was going to be there. The apprehension of stepping out of her everyday life was over shadowed by the excitement of seeing familiar faces one more time. The fervor of being with her group, going back and sharing and the warmth of belonging called her long before the airline loudspeaker announced her flight.
She had planned to stay with her grandmother, Abue and aunt Elena while in Lima. It was a typical 3 bedroom flat. Did I mention she had not been in Lima since she visited in 2007 to celebrate her grandmother's 100th birthday?
You see, her grandmother practically raised her. Her grandmother, widowed at a young age raised her mother and two aunts and one uncle. She did it alone. She never remarried. She raised her children and when the situation arose, she stepped in and helped raise her grandchildren. The soft scent of rose water brings a rush of memories. When times were happy...Abue laughed. When times were sad....Abue consoled...........when times were hard.........Abue squared her shoulders and moved forward. She taught grace and fortitude by example. She planted the seeds that grew into the behavior and grace and style of my friend. She greeted my friend with a gentle smile. She knew it was the big reunion and sat quietly while my friend left to go meet with her friends.
Laughter, hugs and tears of joy were shared as the group met that night. My friend was delighted to see so many had made the trip this time. They did all the things that you would imagine. They shared stories of families, babies, old love, new love, jobs and life in general. It was if the clock stopped and old friends had been transported back to a time before the ups and downs of life grabbed them. Wistful thoughts of roads taken and roads abandoned were forgetten in the quiet peace of remembering dreams planned
Abue sat in her favorite chair and waited.
My friend rushed home and spent a little more time with her grandmother. Her aunt Elena waited until grandmother was asleep to share that Abue was gravely ill. She had but days or weeks left. 102 years had taken their toll. My friend was devasted. She was torn between the sorrow of losing the woman that has been her role model and source of quiet comfort all or her life and going out and celebrating with her friends.
She went to the party. She went to the cafe. She went to the park.
And she came home every evening and laid down with her grandmother.....her precious Abue......the soft scent of rose water wafting in the air.
She did miss some of the parties.......and she did miss some of the events, telling friends that the trip had worn her down and she needed a little time to rest. I know she really just wanted to stay and comfort this wonderful woman.
The reunion came to an end................the days after were spent sharing and preparing. Then it came time to go. It was time to say goodbye. It was time.
My dear friend kissed her grandmother and posed for a picture, then another and then one more. She kissed her soft fuzzy cheek, inhaled the scent of rose water one more time and walked out the door.
The ride to the airport took her through childhood streets and sounds of yesterday and memories rekindled at every turn.
Now, emails are shared with friends. Photos are posted of the event. Plans are being made for the 35th. My friend is back here, trying to get back into all the things that are going on here. She is trying to focus. She is seeking the strength of that dear 102 woman. She is waiting for her Abue to tug her foot.
Her mind is on her grandmother.........her heart is in Lima.
I only wanted to share..........I do not know her grandmother. I know her. I know her strength in times of struggle. I know her compassion when others suffer. I know her wit in moments of gloom. I know her passion for justice. I know her love of her three children. I know her willingness to accept blame for error and her capacity to get it right. I guess... I do know her grandmother.
I see Abue in my friend every day.
So, if you have a moment tonight, pause and say a little prayer for Abue, that the passing will be soft and the landing gentle. A fine light is dimming but so many jewels are left behind. These things are important to share now...before she is just a memory.
UPDATE: Today, Friday August 14th our dear Abue passed away. She will always be with us, even if now, she is just a memory.
Rumors of my untimely demise are greatly exaggerated. This year has been a whirlwind. I have added an entire group of agents under my wing when I accepted the position as manager ( I never realized how important and constant a helping hand might be. The burden of so many questions and fires to be put out is well balanced by the joy of helping). Then, I have been busy as a Realtor. No, the market is not sizzling, nor is it frigid......it is the market. I have been fortunate and continue to succeed in completing transactions. Then, well, let's just say that my personal life is better than ever and I have enjoyed the rewards of placing those I love first.
So, my dear friend Jenn blogged ...from my heart through her fingers...Happy minds think alike.......enjoy this post.
Visit most real estate training sites and you'll pretty quickly see references to being a Superstar or a Champion or a Hero or a Top Producer or some other high-falutin' descriptive term for a tippy-top level of real estate production. You'll see testimonials from agents who bought whatever system is being marketed claiming to have tripled their income or hit the half-million mark in commissions or sold 167 houses their first month on the program.
Wow. That's something. I'll admit to being intimidated by such marketing, both as an active real estate agent AND a real estate trainer myself. Gee, I never made $500,000 or sold 300 houses in a year. Neither has anyone I've ever coached or mentored or trained.
Do I believe the claims? Sure I do - no real reason to believe that such levels aren't attainable just because I never did it or know anyone who did.
But I don't believe that the majority of agents are going to see anywhere near those production levels, regardless of what system, program or philosophy they follow. No, not even in a good market.
And that's okay! I have a loyal following of several thousand real estate agents who don't want or need to set the world on fire - they just want to make a consistent, comfortable living, doing business in a manner they're proud of, making more people happy than unhappy. They also want to have time for their families, their hobbies and their naps. They don't want to be Power Prospectors who generate business 14 hours a day and then hand it off to their harem of assistants and specialists on their way out the door to drum up even more.
Hey, there's nothing wrong with wanting to be the Top Dog in your office, neighborhood, city, county or state. But if you don't, that's okay, too. There's plenty of room (and commission checks) here in the middle for those with slightly less-grand aspirations.
So, don't fret if you doubt you'll ever be a Superstar. You're in very good company.
It's DONE! The Sequel to Sell with Soul AVAILABLE NOW! Order Here
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.
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Agents get in their caravan and drive around visiting these open houses. They then return to the office and pull out their roll-a-dex and proceed to call a few clients. They focus on those that may have a desire to see the home.
Interest rates going down or going up? We all know they are in flux. You can share the information quickly and become the expert within in your sphere of influence with a tweet or a post.
There is always something new in our world of real estate. You can pick one item and share it quickly with a tweet or a post and solidify your position as an expert within your sphere of influence.
You have invested time and effort into your career. You have knowledge. Share it. There is a reason that you are paid a reasonable commission for your efforts. Don't keep that a secret. Take the time to share information with your sphere. You will be the expert they seek. It only takes a tweet or a post.
;)
;)
