Atlanta Real Estate Blog - Jim Crawford REMAX Greater Atlanta

Mortgage Fraud 101 – Short Sale Fraud

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Fri, 10 Jul 2009 04:40:13 -0500

All too often in real estate we focus on the sensational stories and neglect the most obvious abuses of mortgage fraud. Since fraud is involves stealing something that's not yours there are many ways to take something that you are not entitled to. It starts with deception, and ends with the possession of ill gained goods. Since short sales en-masse are so new, everyone assumes the process is transparent and legal. I am taking the position it isn't, and it is mired in deception and fraud.

Real Estate has always been know for change - it is our only constant. Right now in real estate the current item we are now dealing with in most of our markets is short sales. All of a sudden everyone is an expert and a negotiator. Just a few years ago short sales were the oddity and seldom seen even by the most experienced agent. they were not worth the time to deal with in our every day business. Today short sales have become a house hold word - they are trite. "Short sales" are the new buzz word in real estate.

In the past, agents that normally would not get involved in a short sale because there was no guarantee of commission or that the deal would even close. It is already identified at the beginning of the lising that there is no money even to pay them a commission if the home could be sold at full list price. So a really bad taste is left in your mouth when the deal closes and it is anticlimactic. For those agents that devoted months of their life concentrating there efforts in a high anxiety game and then find out their reward was only a fraction of a commission - it's depressing. It was not worth the effort given the odds of successfully closing a short sale were only less than 1-in-20 after the lender made your life unbearable for 7-8 months. Such an event would not be repeated by most agents.

OK here is where the crime begins. Many agents thinking they are creative, but in fact they are actually criminal - devised a way around this. Enter the agent that contacts you on your listing and asks if your seller would mind giving their buyer / investor an option on short selling your listed property. The pitch is that they will take your short sale, and negotiate directly with the bank and negotiate the short sale. After all they are already skilled at negotiating short sales. Sounds OK so far? OK here's where it gets interesting.

Your seller owes more than the home is worth. They owe 150K on a home that worth 120K - 140K. The investor / buyer negotiates with the bank to accept 100K and explain they have a buyer. The buyer is ready to go and will pay them 100K. What the investor / buyer neglects to tell the banks and the owner is that they are in a position to buy the home for 100K and sell it immediately to the buyer they have for 145K. This fraud contains a lack of proper disclosure issue. There is willful holding back of pertinent information the same way a con man would do it. The lender does not realize they are being set up for a pre-meditated fraud. Short sale fraud is now on a list of growing mortgage fraud for the FBI. When you think of it...this type of fraud is no different than a real estate agent telling a buyer client that they have a great property for them, and the price is 500K. As a buyer you show up to your real estate closing early and find out your agent has just finished purchasing the property for 250K and is going to flip it to you within the next hour for 500K. This fraud is punishable for a loss of licenses in most if not all jurisdictions. There is not difference except that a Federally insured banks is not give all the details.

Many of the new fraud cases regard tweaking old cons and repackaging them to fit the times. These are old schemes with new twists and combinations of fraud that include property flipping, builder-bailouts, short sales, and foreclosure rescues. They prey on those in dire need, yet still target the lender that is not in a position to take on more losses. Short sale fraud is now recognized by the FBI as real estate fraud, and persons involved will soon be prosecuted for this type of fraud and the willful taking advantage of others. They have cheated the banks and the current owner by failure to disclose their true interests and intentions. Nothing is more heinous than taking advantage of those in our society that are under pressure and unduly stressed out.

Many agents are participating in this fraud and just because they do not understand their role maybe in for a very unpleasant surprise shortly. Ignorance of the law is not bliss when you are breaking the law and defrauding banks.

FBI MORTGAGE FRAUD REPORT

"Short-Sale Schemes:Short-sale schemes are desirable to mortgage fraud perpetrators because they do not have to competitively bid on the properties they purchase, as they do for foreclosure sales. Perpetrators also use short sales to recycle properties for future mortgage fraud schemes. Short-sale fraud schemes are difficult to detect since the lender agrees to the transaction, and the incident is not reported to internal bank investigators or the authorities. As such, the extent of short sale fraud nationwide is unknown. A real estate short sale is a type of pre-foreclosure sale in which the lender agrees to sell a property for less than the mortgage owed. In a typical short sale scheme, the perpetrator uses a straw buyer to purchase a home for the purpose of defaulting on the mortgage. The mortgage is secured with fraudulent documentation and information regarding the straw buyer. Payments are not made on the property loan causing the mortgage to default. Prior to the foreclosure sale, the perpetrator offers to purchase the property from the lender in a short-sale agreement. The lender agrees without knowing that the short sale was premeditated. The mortgage owed on the property often equals or exceeds 100 percent of the property's equity."

From the FBI "2008 Mortgage Fraud Report "Year in Review""

My 500,000 Point Post!

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Thu, 09 Jul 2009 00:09:08 -0500

A lot of emotion comes with milestones, and this post will mark 500,000 points in ActiveRain Posts. I've come to learn that Blogging isn't an obsessive compulsive activity as many claim. Rather it is a production tool and a real estate net-worker's dream that places my name, my resume and my knowledge out to other real estate professionals across the USA, Canada and the public at large! Active Rain works well because it is real estate-centric, and that is what makes it so great. The AR platform allows participants to learn from other agents, brokers, inspectors, appraisers, loan officers, stagers and others in our related fields. It allows me to stay up-to-date on current and emerging real estate issues, and trends that directly impact my business and the needs of my clients. In short, Active Rain allows me to be a better real estate professional.

My participation in Active Rain began in January of 2007. It's been a lot of fun! I would also like to share that I have made loads of new friends here on Active Rain. I touch base with many of those new friends on a regular basis, and some I have even met when I am on a speaking engagement. The fantastic thing is I cannot name all of those new friends because there are just too many new friends that can be made here. I like that. I am never short of new ideas from fabulous posts that can be found here on Active Rain each and every day.

As a direct result of my Blogging activity on Active Rain and the Active Rain Juice...I also receive regular interviews from the local newspapers, radio TV and evening news as a direct result of my AR Atlanta real estate Blog! I also enjoy closing AR generated referrals from other Bloggers or agents, working those buyers, listing and selling homes, and yes I even sold my own home from Active Rain in August of 2007 in 4 days from an Active Rain Blog. I cannot forget to mention that I have referred out a lot of business from Active Rain. It is easy to choose a good competent agent here because you can always see who is active, who understands real estate, and those that do not. I look forward to my next major milestone, a Million points in the coming years! All I can say is thank you Active Rain, and yell out a big southern "Big hey!" to all my Active Rain Friends!

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Yet Another Stimulus?

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Tue, 07 Jul 2009 21:23:20 -0500

Wall Street took a dive today, the reason? Well the sentiment is that maybe we are not headed toward recovery, and maybe we just got way ahead of ourselves. When word got out that Congress and the administrations was talking about additional government stimulus...it kind of gave them the jitters My thoughts? Let whoever is going to fail.... fail!

First I would like to know what all the previous stimuli has done to get the economy going again? Is that too big a question to ask? The administration promised after the last massive budget busting stimulus money grab that it would prevent us from going to 9% unemployment this year. Guess what? They lied. We have already surpassed the administrations and all the advocates of the massive bailout projections of dire consequences if it was not passed. We are now near 10%. None of the interventions have increased the sale of anything but distressed properties, foreclosures are still rising, and buyers that area afraid to take the plunge in case they are next to be let go on their own job. As far as the new stimulus talk....someone must have told the politicians we are not totally broke yet.

As far as all the monies that have been spent thus far....has happened so that all those that contributed to the politicians elections have been rewarded at our expense. Obviously, in keeping with the way things are done in Washington DC.... the stimulus monies are not tied to performance...just empty promises and paybacks.

Helicopters on Lake Lanier?

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Tue, 07 Jul 2009 10:10:26 -0500

I received an email today that I thought was very important and timely. It is worth sharing to all. It concerns helicopters flying to our Beloved Lake Lanier. In my own opinion, it would be an intrusive nuisance to all that live their and want to escape the noise and din of the city and enjoy the natural beauty and solitude.

"On June 15th the Hall County Zoning Board voted to recommend the approval of a helicopter landing in a South Hall residential neighborhood so one family from another county can visit their vacation home on Lake Lanier. I am opposed to the negative impact helicopters' loud noise, and potential danger, have on the peace and serenity of Hall County and all Lake Lanier property.
I think this precedent setting decision can only hurt the real estate values on the lake now and in the future.

On July 9th at 5:00 pm the Hall County Commissioners will meet to make a final
decision. Please email ALL the Commissioners ASAP to voice your concern."
toliver@hallcounty.org
bbanks@hallcounty.org
bpowell@hallcounty.org
sgailey@hallcounty.org
abell@hallcounty.org

Do You Check Your Referring Web Traffic? You Should!

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Mon, 06 Jul 2009 20:07:02 -0500

There are many agents and brokers that have websites but very few of them actually understand the mechanics of the web. I suppose many think it is just magic, but it doesn't have to be. Like many other agents, they are most probably paying more for the web per month than the we is returning to them in income. Most likely they purchased a website from a company, and never took the time to properly set it up. Perhaps they purchased the web at a seminar or from a meeting held at their brokers office. After all it seemed like the right thing to do at the time, and besides everyone else was signing up. Too bad in life euphoria eventually gives way to reality.

The agent then received a few leads in the last month, and maybe closed a deal or tow, but they are clueless to where the users coming from, what keywords or keyword phrases are they using, what search engines the viewers are using, and what search engines are or not referring any traffic. If they did check the data their web statistics provided, they may be surprised that their web performance can be turned around.

If you have access to web statistics for your website it is really worth taking a look at. Strong areas of lead generation can be analyzed and expanded to other pages, and weak areas of poor web performance can be mended. There is always a reason why one web page is found easily and that it rises to the top of the search engines...while another page lays dormant. each day our Atlanta real estate clocks over 1000 unique visits every day with the majority of visits coming from Google. www.ActiveRain.com comes in a strong #3 and accounts for more web referral business than Yahoo. Our website www.AtlantaBestHomes.Com has accounted for over 85% or our business for over 12 years. Paying attention to the causes and effects has been very worthwhile. The Internet works. Consumer search phrases for have paid our bills for years. Do you have a website or do you own an on-line business? The more buyers that come to your website means that more business can... and should follow. The only question should then be... how do you convert the leads? If you can demonstrate to a home seller that you can sell their home more quickly with greater marketing exposure on the web, or show them the buyer leads you have developed as a result of your high web visibility...it should make working with you a common sense decision. You will be able to blow away the competition with your web statistics. Have you checked your web statistics lately? You should.

Search Engines	Referrals	Percentage
www.google.com	4,087	72.89%
www.bing.com	343	6.12%
activerain.com	148	2.64%

Annoying Holiday Phone Calls!

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Sun, 05 Jul 2009 19:59:46 -0500

It is amazing that each set of holidays there are loads of phone calls that come in from persons that want the services of a real estate agent, or further explanations about a property. Some callers are serial callers, calling on the hour or half hour. It is not unusual for callers to call either after 8:30PM or before 8:30AM. This year the phone calls seemed to be more than usual. That means a lot of other agents must be asleep at the wheel or on the beach in Destin. Many of these phone calls come in over VOIP where every 5th word may be audible, and many leave a message but forget to leave any contact information. It is most annoying. However what is more annoying are the callers that mention over the phone that their agent is useless and want us to do the work for them. They are brazen enough to ask for free information, to have home shown to them after the fact they mentioned they have a buyer's agent that cannot be reached. Sometimes they mention their agent is just too busy...could we help them. Other times they will mention they are in a signed contract and need advice. Last time I looked real estate agents are not attorneys.

It is amazing that these callers do not mind bothering others on a holiday weekend, waking us in the early morning, and disturbing our free time. I wish my clients respected me that much that I would have their unyielding loyalty, but I do not. Since I respect agency, and am a person of ethics... I have no intentions of running interference with another agent and their agency agreement with their principal...I feel it is not wise to engage them in conversation because they just want what they want...and I am not a willing participant.

The July Real Estate Doldrums? Where are the Atlanta Buyers?

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Sun, 05 Jul 2009 16:14:03 -0500

Many agents are asking me lately why things are so dead, but to my relocation...July has always been a very slow month for real estate sales in Georgia. Since we no longer have large groups of buyers relocating in we are now forced to deal with a local market. The local market is always dictated with he ending of one school year, and the beginning of the next. Since summer vacations are in full swing, and to start the month everyone is out of town for the 4th of July..The Atlanta area is pretty much a Ghost town!Atlantan's are probably soaking up the rays at Alpharetta on the beach in Destin Florida this time of year! The other item that makes a case for slow sales in July in Atlanta...is that school starts here early in August. Persons that wanted to purchase before the school year begins have already purchased. The school year official begins with the first day of school in Fulton County on August 10th. So if a person want to buy a home...this is the week will if they want to close it within 4-5 weeks.

Happy 4th of July to All!

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Sat, 04 Jul 2009 09:45:32 -0500

The 4th of July is a great day for all in the United States. As a nation we demonstrated resolves to rid ourselves of a tyrannical government that wanted to usurp all from the new colony! The United States has grown into a great nation over the years, and will continue to do so for a long time to come. God bless all and have a great and safe holiday! "God Bless America!"

Dress for Success - Have we Become too Casual?

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Wed, 01 Jul 2009 21:22:16 -0500

Years ago in real estate I can remember the phrase "Dress for Success" was a major component of sales presentations. There was not a seminar you would attend that did not stress the fact. A trip into the office confirmed that there was a "Dress code" that complimented the professional image of the company you were associated with. This was not limited to just one company, but in several companies that I was associated with. The first reason was that we represented our clients in the biggest possible transaction of their lives. Their home or purchase represented their dreams, a fulfillment of their goals, the sweat of many hours working overtime and saving to achieve those goals. Dressing up, made clients feel at ease that someone competent was assisting them. Those were the times that a real estate agent actually qualified the buyer financially before giving them to a loan officer. Buyers and sellers listened to our advice, and out opinions were respected.

In the early 2000's professionalism waned when catering to the more casual "Dot com and Tel.Com" crowds. Dress and appearance gave way to a more casual attitude with this easy money crowd. This casual crowd were not bankers, or corporate biggies that climbed up the ladder. The tech crowd was a group of buyers and sellers that took the elevator to the top floor. These were not blue collar workers that clocked double shifts to get overtime pay to buy a home. They started off with 6 figures when they graduated college and we offered major stock options. This was a crowd that made big money very quickly and wanted to use credit to purchase their homes and use excess cash to keep their investments making money and funding their 401Ks or SEP IRAs. Casual ruled the day, and everyone made money. The experienced and professional real estate agent was now a dinosaur and a hairdresser, golf pro or personal trainer took the place as the real estate agent...and no one batted an eye.

Now we are in a different time in real estate. Monehy matters again, nad easy credit does not pull the wieght. For the consumer we have gone full circle in our importance. Knowledge and experience are the only way out of the mess we are in. Buyers and sellers both need assurances, they need something more than a dressed up manaquin assure them you have the skill set and solid experience they need to assist them. Dressing professional may also give you an edge in negotiations. Appearances and perception is everything.

Do you think it is time we revisit "Dressing for Success?"

Numbed to the News!

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Wed, 01 Jul 2009 20:42:18 -0500

Today's Headlines..."Mortgage Applications are Off By 19%" places fear in the hearts of many. I confess, it is beyound scary even if the news shrugs it off and the stock markets climb higher. That is not where I want to place my money. I think it is safe in real estate...at least at the end of the day at least I own something.

The question is are you really surprised at any of today's news, even if in your hearts you already know the answers to the stories may be hald truths or just totally wrong. Each day bad news is released and we are inundated with senseless news stories do not include the reason why this is all happening. YOu could learn more from reading a lable on a can of soup than reading the spin.

First of all rates are rising when they should be dropping to absorb the excess inventory. But hey...it is political payback time for the politicians to reward all their supporters with your tax dollars. Second. Buyers are going to remain cautious with spending in this current economy. The words 'frugal' and 'cautious' come to mind.

Consumers are like "Deer in headlights" at this moment in time. They are worried about their jobs, finances, 401K's, their retirement and stocks. Can they make their next car payment, keep the utilities on and put food on the table is their primary concern right now. We cannot help it if the news doesn't think that 473,000 more persons laid off is a good thing, nor do we have the stomach to spin it good news. We must make allowances for our clients, and share some local good news to counteract the national headlines and offer solutions not commiseration.

Todays Business Headlines:

Putting Yourself in Your Clients Shoes - Empathy and Sales.

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Wed, 01 Jul 2009 20:16:34 -0500

All too often in real estate the rush is one for the sales and ringing up the closings on the office board. In real estate many are consumed with their deals, but forget their clients needs and fears. If you haven't noticed, we live in epic times. Many clients have lost jobs, or are afraid they are next on the chopping block. There are those also that lost retirements, 401K's, and much of the equity in their homes or second homes. Many buyers were just in the wrong place in time when they had the misfortune in being relocated by their company for a job that no longer exists. These situations are not new in real estate, we frequently are made to deal with the sale of estates, the death of a spouse, a divorce or major life event changes such as a catastrophic illness. What is different today is that we are in a tsunami of events that we have become numbed to...that we are accepting of all the events on a subliminal level..or at least profess we are. We wonder why sales have slowed, and self doubt creeps in. We feel we have lost our real estate Mojo! We haven't.

We mustn't lose sight of the fact that buyers and sellers are also numbed to the news. They know less about real estate than a full time professional, and on some levels do not know how bad things became in the last few years. The average homeowner that buys a home on the average of 1 every 8 years does not get it. Unlike the real estate agent that does 30-40 deals a year - they cannot comprehend the magnitude of the change. They are still looking at last years sales in the neighborhood, and don't know why you are so negative in pricing. Buyers are no different. They see other workers being laid off, and local retail establishments closing. Perhaps they are the victim of a bank closure and lost some funds. They are paralyzed in place. They read the headlines in the paper and they are reluctant to make a purchase even though mortgage rates are still at historic lows. Can you blame them? Or are you ticked off that the buyer you are working for the last 4 months and showed 140 homes cannot commit? Do you resent the fact your seller is demanding 'open houses' everyweekend and ad placements in useless real estate publications?

The secret in this market is don't rush your clients into making a hasty decision. Do not judge them from your position as their agent. Try putting yourself in their shoes...instead of your next closing.

If you were a buyer:

Would you buy right now?
Would you buy the home they are looking at?
Would you pay the price the seller is asking?
Would you buy the home in the condition it is in?
Are their better deals out there?
Are you buying wholesale or retail?
Are their better deals in foreclosures?

If you were a seller:

Is it the right time to sell?
Will the market come back next year?
What else are the buyers looking at?
Will next year be a better time to get your price?
If you were a buyer, would you buy your home?
What is the home lacking?
How does your home compare to the competition?

Atlanta Home Prices Down - Average Atlanta Home Prices Decline 14.8%

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Tue, 30 Jun 2009 18:18:10 -0500

The latest Case Shiller Index index was just released today and everyone has out a magnifying glass trying to read the 'real estate tea leaves' and predicting it isn't all bad. The truth of the matter is that home prices in the Atlanta area fell almost 15% from last April. If I was a seller that isn't good news. 15% can add up very quickly. Sellers need to realize that if they purchased a home in the last few years in teh Atlanta Metro area, it will be almost next to impossible to break even. No, no one is giving away your home, it just may not be worth the same.

$100000 - 15% = 85K Net (a loss of 15K)
$200000 - 15% = 170K Net (a loss of 30K)
$300000 - 15% = 255K Net (a loss of 45K)
$400000 - 15% = 340K Net (a loss of 60K )
$500000 - 15% = 425K Net (a Loss of 75K)

Real Estate Double Talk

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Tue, 30 Jun 2009 09:10:16 -0500

There is an old saying that says "Ice Cream has No Bones!" It does not mean anything but in real estate we are inundated with nonsense everyday in negotiations. Slight of hand works great in a magic show, but not in contact negotiations where it paves the way for fraud and deception. Despite our own innermost warnings, we have become so numbed to gibberish and doubletalk we sometimes move forward into a deal that we should not. Such actions redefine the word "Trust" and only can be likened to the wolves gaurding the sheep. New homes builders seem to abuse this issue the most, but the issues are not limited to new homes. The signs are almost routine for anyone with expereinced in real estate. The usual suspects quickly arise: undisclosed fees, and conditions seem to surface out of nowhere when an agent is in counter. Just when you think you have the costs nailed down another surprise or addional fee pops up. The hidden fees are quoted to you as Gospel, as if you cshould have known all along... yet they are no where to be found anywhere in writing or disclosed in any fashion. It is like playing a board game and making up the rules as you go along. Lot premiums, credits and elevation upgrades are all ways to shake more money out of your clients pockets. More often than not the photos used in in the builders MLS photos are really homes that are priced about 350K more. At this juncture, the builder would say.."Oh, you want a brick front? We can do it! The addional costs will be...XXXX!" They do not even disclaim these are 'to be built' models or the photo of a similar home or 'Demo' home. The final product that is sold in no shape or form looks like anything similar to the displayed product. The only words that come to mind are "bait and switch!" The buyer often feels like they have been had! This is not a good position

The only way to protect your clients and yourself is to make sure that every option, each elevation, every additional upgrade, all paid closing costs, terms, and credits are placed in writing are signed off by all parties. Promises of "You can trust me", ...or "I promise I will do it" should never be accepted by anyone. In just about every state the statute of fraud demands all contracts, and terms be fully exucuted by all parties and it is wise to be in unambiguious language. This should also apply to all counters in negotiations, and not signed off on until the parties acknowledge all that was agreed upon is in writing, and that the totals for services and upgrades are placed side by side the itemized items.

Snag-It A Great Tool For Real Estate

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Sat, 27 Jun 2009 21:36:47 -0500

In real estate these days more of our life has become digital. We send contracts in .pdf file formats, use digital camera, email digital photos, write contracts on line, network by Blogging and drive business to ourselves via the world wide web. Time is truly of the essence these days where we communicate with sellers around the globe, sharing inspection reports, video tours as soon as they are in our possession. A cell phone call can instantly confirm a receipt or a transmission sent.

One of the tools I use the most in the last year for Blogging, web development and sharing information and reports with clients, inspectors, home buyers, sellers and handymen is Snag-It! It is a reasonably priced program. You can do so many things with it, mark up a photo, enhance a craph, create graphics and headers and so much more. It is worth taking a look at f you have not tried it. There is a free download trial avalable, and you can purchase it for $49,95

Below is a mark up of an an inspection for items requested for repair.

Wasting Time at the Expense of Others - A Real Estate Passtime?

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Sat, 27 Jun 2009 21:12:47 -0500

I read an interesting article recently that talked about real estate agents that really just do not get it. Many of their actions are self defeating to say the least. They spend a lot of unproductive time needlessly pursuing businesses that is totally counterproductive. They will list overpriced homes that they will never sell. These are so improperly price that no other seasoned agent will show, it will not appraise if they do get an offer. We cannot compensate in price when sellers are upside down. These agents will work short sales for months while the odds are probably 20-to-1 that it will never close or they may not get paid on. In the end they will be so stressed out with so little compensation they will find it is now their own life that is in a financial shamble. It is important to realize that we are not social workers, bankruptcy attorneys or miracle workers.

These agents have not sat back and taken a personal inventory of what they are doing, is it cost effective and will it pay the bills? I personally know of some agents that have listed over 15 homes and not one are under contract. In fact many have only have less than one sale to their name...yet boast they are experts or real estate consultants. They are playing real estate at the expense of others and do not have the ability to change their destructive obsessive compulsive behavior. As homes go unsold sellers have let the clock run out and are in a certain death overtimes...sellers are doomed to roll into foreclosure as the financial noose tightens around their neck. Where there was time to sell a home, all is lost if an agent is consumed with winning or buying the listing at any cost. It is more important to tell the sellers the truth and not sugar coat the facts so they alone will win the listing. It is the seller's money we are talking about here, not a dreamed about commission.

I've been in real estate for quite sometime and realize sometimes there are no easy answers. I have a conscience and tell sellers all the options even if it means I do not get the listing. For some sellers they come to the conclusion that it may be better to postpone the thought of selling a home until times improve. For others is is a hard pill to swallow when they realize that they are upside down. A visit to an attorney may provide more solutions. For marginal sellers with some equity - it is wise to prepare them for what they are up against. Paint, appearance and price may allow them to get out from underneath the mess they are in...because lies won't! "Honesty is always the best Policy!"

NAR Standard of Practice 1-3

REALTORS^®, in attempting to secure a listing, shall not deliberately mislead the owner as to market value.

North Fulton Homes Sales and Price Trends Area 13 - May 2009

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Sat, 27 Jun 2009 20:42:02 -0500

In our Georgia MLS systems the west side of north Fulton County is referred to as "Area 13!" To the south side it is bounded by the Chattahoochee River, to the East it is bounded by the GA 400 and to the north... Forsyth County and to the west Cherokee and Cobb Counties. Sales in Area 13 have long led the Atlanta area and contain sought after cities of Roswell to the South, The City of Alpharetta, and the City of Milton. Recently homes sales as in many areas of the United States have fallen off dramatically, and home prices are softening. Home sellers and buyers need to be aware that what homes were selling for in the last few years, have no bearing on today's prices.

City of Alpharetta Postpones New City Center Due to Soured Economy

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Sat, 27 Jun 2009 19:43:28 -0500

Anyone that lives in Alpharetta GA knows that the talk of the town for several years was the redevelopment of downtown Alpharetta and the new City Center was just around the corner. The plans was to have included would have included a new City Hall, retail and office space, underground parking, and 5 acre town park. It has just been announced this week that things have changed. The new city hall and neighboring development will just have to wait until the economy improves. Neighboring business and new homes developments were disappointed in the announcement. New town homes neighborhoods sold their homes with the promise of the new developement and the changes it would bring to down town Alpharetta. The city of Alpharetta has most likely seen much of its anticipated revenue disappear with the slowdown in new construction, vacant retail real estate, and the now abandoned or stalled development of the Prospect Park development and anchor tenants.

Most Real Estate Agents Are Doomed to Fail.

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Sat, 27 Jun 2009 18:59:36 -0500

Even in good times, real estate is an industry where over 80% of the agents will not make it. Most agents never survive in real estate because they did not enter the business with their eyes open. They became real estate agents because they assumed you can make quick easy money and a lot of it. They were enamored with a false image without looking at the reality of what it takes to survive. Long hours, and many dissappointments do pave a pathway for success. We can learn by our mistakes and no repeat them in the future. Those that cannot grasp it sometimes takes many months to close a buyer when there is an excess of inventory, and that is almost impossible to sell a home while interest rates are high and no one is looking to buy a home...will just not make it. Instead of saving money when times were good, many agents spent whatever they earned and more on expensive cars, dining out and vacations with no expenses spared. The reality of real estate is quite different than watching an easy home sale on TV. There are times where we have many months of no closings, followed by a great month where just about everything we earn is due on maxed out credit cards, estimated taxes, catching up on bills. For survivors in the industry, success has always been built on common sense. Having separate charge accounts for personal life and business, for keeping a set of books to see profit and loss, keeping spending in control, placing funds aside for taxes and expenses and most importantly lead generation.

The false notion that times are just around the corner and magically fall into their laps has caused the demise of many an agent. They assumed that their sphere of influence, referrals, relocations would pull their butts out of the fire at the last moment, and are easily disappointed when once loyal clients list or buy with someone else. The secret of surviving and making a great living in real estate has always come from being a self starter and consistently developing your own leads. It is built on actual sales knoweldge, and understanding the fundimentals of marketing and sales. Success cannot be purchased at seminars, with real estate software or even Blogging. If you have no real estate skills of plans, and don't really understand the basics of real estate...Blogging is not going to help. Success starts with a plan, a budget, a purpose and a solid source of lead generation that delivers good and bad leads to every day. Do you understand real estate? Do you have a plan? Those that do will survive, and their clients will not be dissppointed. Better yet...these agents will prosper even in tough times!

2 More Bank Closed in Georgia!

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Fri, 26 Jun 2009 21:23:16 -0500

Along with 2 other banks in the US Regulators closed the Community Bank of West Georgia (located in Villa Rica) and had another branch in Kennesaw GA...and Neighborhood Community Bank, located in Newnan, GA. Community Bank of West Georgia had total assets of $199.4 million and deposits of $182.5 million, according to the FDIC who was appointed as receiver of both banks. This comes on the heels of last weeks bank failure in Southern Community Bank in Fayetteville, GA. This is the 11th bank failure in Georgia since the failure of Netbank in Alpharetta on September 28, 2007.

FDIC Failed Bank List

Real Estate School is Out Forevah! True Story!

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Fri, 26 Jun 2009 21:04:38 -0500

Recently, my son expressed an interest to go to real estate school and join us in the business. I advised him that there are several options to qualify to take the real estate test including: on-line, and classes at several real estate schools. I also mentioned to him that many real estate companies also run a real estate school, and that it was probably a good idea to check them all out and make up his own mind where and when he would like to attend. On one of the schools run by a major national real estate company he was told they no longer run a real estate school. My son asked "Why would you do that?" Their response was "No one wants to be in real estate anymore...you can't make a living!" My first thought was that my son was just joking, but then I realized he was not kidding.

Pocketing the Listing - Unethical Behavior

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Thu, 25 Jun 2009 18:00:02 -0500

In many real estate markets some listing agents think they are clever advertising ‘pre-listings', or the latest one I've seen on some yard signs as a rider that says "coming soon!" Upon further investigation, you'll find these listings are not entered into the MLS system. Under most state real estate license boards it is illegal to advertise a property for sale where the listing agreement has not yet been signed. Implied representation is deceptive and fraudulent. For most Realtors® and MLS board members there is an agreement and understanding that all participating brokers will place all their listings into the MLS systems, and do so within a predetermined time-frame which is usually 24-48 hours. The reasoning is obvious; the listing agent will have an unfair advantage in having a listing all to themselves when the listing agreement is predicated on an exclusive right to sell MLS agreement where all members will have an opportunity to sell the listing. Such behavior is referred to as "Pocketing the listing!" Such behavior should be cracked down by the principal broker, and the behavior is totally unethical, and most probably illegal.

Atlanta Home Sales - Most Recent Market Update for Atlanta Metro Home Sales May 2009

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Thu, 25 Jun 2009 09:44:08 -0500

The latest FMLS statistics for the metro Atlanta homes for sale were just released the other day. There were 4,009 closings for all single family in May a decline of 24.7% compared to May 2008. There were 3,481 closings for single family detached in May a decline of 23.1% from May, and there were 528 closings for single family attached homes (Condos, lofts, and town homes not fee simple) in May a decline 33.6% from May 2008 and a 60% decline from May 2006.

The average sale price for single family detached Atlanta homes in the Metro area in May 2009 was $199,668. May 2009 average is still $75,000 below May 2007's average sale price. The average price for single family attached was $145,312 in May a decline of 20.1% from May 2008.

What Constitutes a Real Estate Trend?

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Wed, 24 Jun 2009 23:48:54 -0500

It's very interesting when you read real estate Blogs or business news these days when they talk about the market recovery. One month of improved sales does not mean a bottom has been hit and we are on the road to recovery. Yes increased activity at open homes could be signs of the market picking up, and it can also be the spring markets were so anemic this year that any activity looks good. I have followed real estate statistics for some time now in several markets. The amazing things is that yes... sales are up, but compared to previous years they are way off their peaks. Sales are off by as much as 50% in some markets, and prices are substantially lower. I know that many homeowners are not doing cartwheels that the numbers of sales are up but that their home is worth a 100K less than 2 years ago. What we all need to see in our real estate markets is many months of back to back increases in sales and price stabilization. Other than that a few months do not constitute a trend. It's just wishful thinking.

The Busy Season is Upon Us!

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Thu, 18 Jun 2009 23:48:14 -0500

Many here on Active Rain must have realized that I have not been Blogging much recently. I have also been taking care of my health...losing weight 30 pounds, and getting in shape. TI was also busy because I was actually busy closing real estate deals for a change. We have several more closings on the books which is a great thing in this market. Our deals these days are mostly buyers that are mostly Internet related deals, and a few from Active Rain!

My favorite line is from the Sapranos when Carmella asks Tony to do something for her, and his response is "You know it's the busy season!" No one knows exactly why Tony was busy, or what he was doing, but for me it was just real estate. Never-the-less it is the busy season. In real estate we used to have a very marked and pronounced season for sales, that is no longer true. Relocations, and home sales at the end of the school year seem to be just a memory of years gone past. This year we are seeing a few select relocations of choice, and first time home buyers that want genuine advice to guide them through the maze of possibilities.

Whatever the reason for buying a home, it is a great time to buy. Sellers are willing to negotiate, and rates are still fantastic.

Atlanta Condos and Town Homes Sales Remain Sluggish

Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) — Thu, 18 Jun 2009 22:12:38 -0500

The Statistics for Atlanta attached homes does not seem to be improving much. Even though a quick glance in the statistics do not look disastrous but he reality is much more bleak there are loads of town home communities, and high rise condos that are not entered into the MLS systems. Condos, including once hot new projects are sitting unsold for years, and most real estate agents are resisting listing them because they are so upside down and just do not sell. I was recently asked for advice on a condo where a buyer had purchased one last year for 185K with a steep discount and the blast email I received recently was bring us any offers. Many units have sold in the low 100K's recently.

According to the most recent statistics for Atlanta attached homes posted in our FMLS last month, there were onely 448 sales of Attached homes in April. When you think about it..that represents over 25 counties. Those are some stark numbers for a metro area the size of Metro Atlanta. Last month in-town Atlanta was quoted as having a 40 year supply of new condos given the current rate of almost no sales. It will be interesting to see Junes numbers which will be posted next week.