This is a wonderful post!  I just wanted to share it again.  Often times one of the many 'cogs' in a deal, sometimes two might "get it", but in this instance everyone got it ...what's the it?  ....That this business is about PEOPLE.  I love this story, it gives me hope and inspiration to keep on keeping on with trying to do the right thing for the right reason.  If you ever need an agent in Florida, I would highly recommend Michelle Gibson. 

Read what she writes below...and be blessed as I was.

 

So many of the post I read in Active Rain deal with the dilemma of short sales, REO sales and the frustration that surrounds them.  Listing agents not returning phone calls, buyers agents being unreasonable, banks being just plain awful.

Here is an idea...Let's all just be courteous to one another

It's simple.

It immediately diffuses a situation.

It empowers you.

It often empowers the one with whom you are communicating with to reciprocate likewise.

It allows for solutions instead of adversity.

It allows you and others to sleep better at night.

It's free and the return is great.

 

The person who can demonstrate control and decorum in a difficult situation is the person always one step ahead of those who let emotion and carelessness for others control their actions....think on it. 

 

 

We do a lot of transactions that involve buying or selling properties that are ‘distressed’ properties.  The dictionary defines distress as:  a state of extreme necessity or misfortune.  A distressed property might be anything from a vacant, bank-owned home, a pre-foreclosure that involves tenants being forced to move, or a traditional sale where the sellers are forced to sell and must walk away from a large down payment that has been lost to them in a declining market.  Currently, 60%-70% of all homes closing in the Phoenix Metropolitan area would fit into this category.

Distressed sales are never ideal for the sellers or residing tenants and can introduce a myriad of possible problems at close of escrow for a potential buyer.  What happens if the property is damaged or ‘trashed’ before Close Of Escrow (COE)?  What if the occupants leaving take appliances, fans, or fixtures that are supposed to convey or stay with the property?    What if a vacant property has had vandalism that has altered the condition of the home? 

What remedies do you have as a buyer of a home if one of the above problems arises shortly before close of escrow (COE) or recordation?

There is a short answer to this question and a long answer.  Most people want to know if they can refuse to close until the property is ‘whole again’ or demand some kind of compensation for the damage before close of escrow.  So here is the short answer:  Just because the other party has breached the contract, doesn’t give you a legal right to breach it as well.  How can you be breaching the contract by refusing to close escrow?  You agreed in the contract to close on a specific date.  Remember your mother telling you two wrongs don’t make a right? – Yep, it’s still true.

This post was originally 5x the current length it is now, because I started with the long answer.  The long answer involves taking a detailed look at the purchase contract we use in Arizona to define what the parties have agreed to in terms of:

1. the condition of the property
2. the inspection periods
3. the seller warranties
4. the seller’s obligation to inform the buyer of changes in the property
5. remedies the non-breaching party has against the breaching party

Suffice it to say that there is much that can be discussed and a great deal of detail along with different ways to circumvent through the above mentioned items.  It is imperative that your agent has extensive and skilled knowledge at trying to pro-actively address and protect you as much as possible.  For instance, my partner and I feel it prudent to conduct 2 walk-thrus of the property before close of escrow. The first walk-thru should be completed about 6 or 7 days before close of escrow and then a second one done a day or so before the close of escrow, after any occupants have vacated the property.  Will this earlier walk-thru guarantee discovery of a potential problem? - No, not necessarily (especially if the breach hasn’t occurred yet).  Might it help you discover a problem  before it’s too late to put into action some of the built-in remedies allowed for a breach of contract – specifically a 3 day cure notice delivered to the seller? – Absolutely!

Ultimately we will tell you this, when the property isn’t handed over in the same condition as it was when the contract was agreed upon, the solution is not as easy as the buyer refusing to close escrow and you could be forced to make some tuff decisions at the last minute.  Make sure you are prepared for the possibilities and realize that this is one of the inherit risks of getting a great home at rock bottom prices.

Thanks for reading!  

 

I received an email today for a local agent in town today that I found very interesting.

This agent looked to have sent out an email ‘blast’ most likely purchasing a list of email addresses from one of the many companies selling such things. The email was titled “Touching Base”. The title and subject clearly infered that I had a relationship with this agent, which I obviously do not, but it’s a hook to get you to open the email – breed familiarity. Salesmanship 101. I have no problem with that, although I don’t use those particular tactics myself, to each his own.

My problem came with the body of the email, it read as follows:

“I wanted to touch base to see if there is anything I can do for you. As your local real estate expert and economist, I am here as your resource for information and updates.”

“Economist”…..now THAT is interesting.  I wonder what our Real Estate commissioner would think about that statement? In Arizona we are strongly encouraged not to advertise or work outside of our area of expertise. Clearly passing a real estate license exam does not constitute the expertise of an “economist”. Outside of our own local licensing laws in Arizona, this agent is a REALTOR and subject to NAR’s professional standards which holds a REALTOR to be honest and not mislead the public.

I just thought this was a stretch, and a poor one at that.

 

UPDATE: I checked this agents website just to make sure they did not hold a degree in economics and then I sent the agent involved an email as a professional courtesy to let her know that she might be advertising herself outside of her scope of expertise and to be cautious.

The response I got from the agent in it’s entirety was this: "The e-mail sent was from the Keller Williams 33-touch campaign, not something we ourselves wrote"

...And obviously not something they thought to proofread before sending out or feel a need to correct? Hmmmm.....

I know what a lot of you are thinking. “They are just trying to let there client’s know that they are on top of this crazy economic upheavals, stimulus incentives, etc… They are trying to be relevant to their sphere.” There is relevant and then there is overstating the facts, and let’s just say it, lying.

We have clients that are desperate for help right now, not just needy or curious, but actually desperate. Is it fair to communicate to those folks seeking professional advice that you have a higher degree of expertise than you have? Couldn’t an agent be taking advantage of an extremely volatile client? Maybe, maybe not….but why take the risk? Let’s hold ourselves to a higher standard of care to the public.

Thanks for reading.

UPDATE 2, March 13 2009:  Still on the drip e-mail program, even after informing them that I was an agent.

 

2009 Housing Stimulus Requires Response From Banks

Providing Incentives for the bank to modify loans with troubled borrowers is all good and well if the banks will respond. The reality is that banks have been living with the necessity to deal more efficiently and effectively with the short sales and foreclosures for years and have not responded.  Can/Should we expect a different response now?  The phone is ringing and ringing …will the banks pick up?

  

 

 

Some New Home Builder's in the Phoenix Valley like to offer front yard landscaping as part of their incentive package when purchasing a home from them. Many builders don't charge extra for this, but include it in the price of the home in several of their subdivisions across the valley. Great Right? There is so much to do when moving into a home, so many things to purchase (window coverings, appliances, shelving/storage for the garage, back yard landscaping, etc...) One less thing to do...one less thing to pay for...one less hassle...except that everyone’s house looks the same. Is that such a bad thing? YES< YES< YES!

When a builder puts in everyone's landscaping they normally will have a few different variations of landscape plans to choose from, picking out your landscaping is much like picking out the elevation on your home... do you want A, B or C? Now they normally will allow you to 'upgrade' or customize your landscaping a bit for a fee...and lets face it, by the time you get to landscaping haven't you already spent more upgrading the home than you wanted to? Landscaping you can always change later, but that bay window has to be upgraded now. Some builders will even let you specify for no additional charge which trees and bushes you would like out of their approved list...ooh boy! Now your neighborhood is going to be limited to the same plants, same color granite (landscape rock), same general layouts repeated over and over and over.... There is no creativity, no different color granite, no elevation changes - everything is flat, and looks the same - YUK! It won't be as noticeable when the neighborhood is new, but as it matures, it will make a difference in how your neighborhood feels to potential buyers. Even though you are going to be living in the home for several years, there is a 98% chance that you will be selling this home someday and you need to consider resale and marketability of the home and neighborhood you have purchased. Let's take this a step further.... it's human nature that when we create something ourselves there is a sense of pride in that creation. (Have you met many new parents that aren't proud of their new bundle of joy?) We will protect and nurture something that we created more so than something that we have no personal investment in. When folks design their own visions of what a front yard landscape should look like they are more likely to want to maintain that vision for years to come. I am telling you from experience that when I am driving through multiple sub-divisions with buyer's they notice how the neighborhood 'feels' before they ever consider the floorplan. I can't tell you how many times I have heard a buyer say, " I don't know what it is, but I just don't like the way this neighborhood feels." My husband and I purchased our first home in Gilbert. It was all of 1298 square feet and definitely considered an entry-level home. Our builder, Dave Brown, wanted to offer help with the landscaping but instead of putting it in for us, they offered a $1500 rebate once we completed our landscaping. It was great! We had a unique varied neighborhood, and got assistance with the cost of our landscaping. We had to meet standards and have the landscaping inspected before we received the re-imbursement from the builder which insured a minimal quality throughout the neighborhood was met. That sub-division, which is now nearly 15 years old, is still a neighborhood that I would be proud to buy, sell or live in. The neighborhood still ‘feels good'. Make sure your builder is creating a neighborhood that will 'feel' good for years to come by letting you do some creating yourself. Consider it...Thanks for reading.

I received a 'panic-call' from a frenzied mother the other day.  Her adult child had wandered into a new home community and signed a contract to purchase a home.  A phone conversation was completed with the builder's lender at which a conditional loan approval was given to the potential buyer based on income from a job she was most likely going to get when she finished her schooling in the next 6 weeks. 

The adult daughter has since learned she is pregnant.  She will have 2 babies under 18 months old and will not be able to afford the childcare on her minimal income plus a house payment.  She wants out of the home.  Mom wants me to give her advise on how to get her daughter out of this contract.

It gets better.  This buyer only put down $200 earnest money and agreed in writing to pay the remainder of $800 within 30 days.  That agreement was signed approx 60 days ago and the additional monies have not been paid.  The buyer is already in breach of contract.  The contract states if any breach on the part of the buyer occurs and the buyer is unable or unwilling to fulfill the terms as promised the remedy shall be 10% of the base purchase price of the home plus 50% of any upgrades.

Now I am not a lawyer and wasn't consulted before this young lady decided to go looking at homes.  My advise to this Panicked mother was to contact a real estate attorney.  However, had this been my client - I would have had one of the best known Real Estate attorneys in the state of Arizona to consult with as my broker has this lawyer on retainer.    As my client, this young lady would more than likely be able to navigate her way out of this contract and would have done so with much less stress than she is in now enduring and will continue to endure.  There is more to our value then just driving people to new home developments when representing a buyer on a new home - Get the word out!!

I have been away for a few weeks.   

Life happens and much has been going on.  I have been doing my annual 'scram' to get all my 2007 year-end receipts and records ready for my accountant.  In addition my husband and I are once again seriously considering selling our own home of which I now have a very lengthily list of items that I would like to get completed. (More on that later).  Business is picking up as it always does in the spring.  In addition, I am staying in close contact with folks that have been waiting to sell/buy and for some of them we are getting close and starting the process.   

My hectic schedule is not anything unique to what anyone else in life has....we all have busy periods in life. 

What I am faced with though, is the reality that blogging takes a lot of time.  To post a blog entry a day takes me at least one hour.  In addition, to keep up with other people's blogs that I follow, another hour (this I do wether I post to my blog or not - just too much good information).  There are times I just don't have 2 hours per day to give to it.   The market is changing so quickly right now to, and their are so many things I would like to share with everyone, sometimes I lay in bed at night right before nodding off and think, "I wish I would have had time to write about ______ today".  Sometimes it just doesn't happen though.  

So blogging is a commitment, one I am trying to get in the habit of doing because I believe it provides value to my client's and the industry as a whole.  Please be patient with me as I learn and grow.   

Thanks for reading.

I got a call from a potential buyer on a listing I have in Gilbert, Arizona.  This buyer had seen one of my advertisements and wanted to view the home.  As I always do, I asked if they were working with a REALTOR.  There was a pause and then the buyer, a gentleman, said, "Yes".  I then politely asked this buyer if there was a reason he was calling me to show him the home instead of his agent.  His response was, " well, my Dad will be representing us, but has his license in-active right now.  He will have someone to hang it active with in a couple of days."   

So, I am in the business to sell homes - and I will be showing this gentleman my listing tomorrow. I wanted to explain what could and often does happen in similar situations in Arizona and across the nation.  This topic has spawned volumes of discourse, lengthy discussions and pages upon pages of procedural standards and precedents.  I will try to explain in simple, admittedly not complete, terms why agents have a problem showing properties to other agent's clients.  You are already familiar with procuring cause if you have ever looked at a new home community and seen on the door, "If you are working with an agent, they must accompany you on your first visit."  

If an agent spends the time and money to market a property, shows and educates a buyer about a property and then the buyer decides to buy the property.  The agent that helped to get the buyer to the point where they were ready to say, "I want to purchase this home", is the one that should earn the commission for selling the property to the buyer.  In the real estate industry we call this "Procuring Cause".   Simply writing up an offer to purchase a home on the buyer's behalf, even though you might be negotiating the deal does not entitle you to a commission.  This type of agent essentially is having other agent's do the footwork and incure the cost for him/her and then they want to get paid for the work.   Let's think about this, is it fair for someone to do all the leg work, spend the time and money to get the buyer there, spend time with the buyer at the property providing them with pictures, information, etc. and then have someone else step in and get paid for the first agent's work?  If an agent is representing a buyer, shouldn't they be showing them homes?  How are they going to speak to, and consult a buyer in contrasting homes, neighborhoods, etc...if they haven't viewed these homes?

National Association of REALTORS has a Code of Ethics and procedural standards in place to try to protect the public, our clients and to try to ensure agents treat each other in a professional manner.  The Golden Rule is specifically spelled out at the beginning of the document.  Do unto others as you would have them do unto you.   

If you want a specific agent to represent you in the sale of the home - let them represent you from start to finish.  If you shop for homes without your agent there is a very good chance your agent won't get paid and you won't get the benefits of true buyer representation.  

Thanks for reading.

US Census data released today shows Maricopa County was the fastest growing county in the United States from July, 2006 - July, 2007.  Maricopa County consists of Phoenix, Mesa, Scottsdale, Tempe, Chandler, Glendale, Gilbert, Peoria, or what others commonly refer to as the Metro-Phoenix area; if you live here, we just call it the "Valley" which is short for the "Valley of the Sun".... 

The second fastest growing County is outside of New Orleans where people are continuing to move back after cleanup from Hurricane Katrina continues.  The third fastest growing county is....you guessed it - Pinal County, Arizona.  Pinal County is where a lot of folks flocking to the Phoenix metro-area have settled down because the housing is more affordable if you don't mind the extra 20 mile commute to the Phoenix-Metro area.  Pinal County cities of Casa Grand, Queen Creek, Apache Junction, Gold Canyon and Maricopa (yes, the town of Maricopa is in Pinal county, not Maricopa county) are popular suburb alternatives to housing in the Phoenix-Metro area. 

                    

7/2006 - 7/2007 Maricopa and Pinal Counties combined attracted over 130,000 new residents. 

I am admittedly biased as a fourth-generation Arizona native, whom I might add, is also married to an Arizona native. Here are some of my thoughts on why people love to live in Arizona in 2008. 

• Low Unemployment Rate (4.3% in 1/08 compared w/national rate of 4.8%)
• Golf
• ASU, U of A, NAU, Embry Riddle Aeronautical University, Thunderbird International Graduate School (rated number 1 MBA International program for 11 consecutive years by US World and News Report)
• Sedona
• Great Dog Parks
• Affordable Housing
• Super Bowl 2008, Phoenix Open, Barrett-Jackson Car Show/Auction
• Premier Resort Destination
• More than 330 days of sunshine a year!
• Grand Canyon
• Live in the Valley in the winter, visit or have 2^nd home in pine/snow country only 2-3 hour away!
• The Most Beautiful Sunsets anywhere and every evening!
• Intel, General Dynamics, Boeing, GoDaddy.com
• Hiking, fishing, cycling
• Beautiful Sonoran Deserts
• 6 hour drive to Disneyland or Las Vegas - take your pick!
• Canadians like Arizona
• No Natural Disasters
• Art, Culture, Friendly Folks, Sunshine, Great Schools and Employers, and Still Affordable!!