Happy December Folks!
What the heck is going on? Hows business treating you?
If you are like me, your taking this time of the year to reflect back on the year as whole. If your like me, your taking this time to set expectations/new goals for next year, putting together a marketing plan, seeing what "worked" and what didnt work, and continuing to learn as much as you can about upcoming industry changes.
But the most important thing you can do is REVIEW. Review what didnt work, what challenges you faced in 2012, what obstacles you overcame which made you stronger/better, what patterns the market showed us, so that we can as professionals get a better idea of where its going...(Crystal Balls are not cheap lol)
When I look back, the biggest challenge I personally faced was spending a ton of time prequaling my buyers. This isnt as simple of an explanation as the 1 liner sentence I just wrote, its actually more cumbersomer because its a process, and exhausting to explain, but here it goes:
1.) Find a client/prospect
2.) Get Buyer Pre Qualed
3.) Play matchmaker between the new Client/Prospective Buyer and a Local Solid Realtor
4.) Find a Home
5.) Write Offers on Multiple Homes, which get Multiple Offers
6.) Beg Beg Beg the Seller to accept your offer.....Your lucky if the buyer is Conventional because FHA and VA are barely getting accepted
7.) Get into Contract
8.) Pray the property Appraises, Considering now that there were 21 Offers due to the LOW inventory market, so the client wrote high as possible, sellers agent didnt properly inform the seller of possible ramifications of not appraising because they were so happy to get the listing and dont have client control, blah blah blah...you know the drill
9.) Appraisal comes back NOW YOU PRAY even more that the Underwriter signs off on the loan
10.) Ask for an extension of contract, due to slowed turn times due to banks being flooded with loan packages for refinances
11.) Home Inspection Issues arise on VA or FHA. Must now clear Section 1 & 2
12.) Finally Close, but buyer has over payed on home, and they still need to renovate and pay a ton of money to upgrade, and are now overextended!
LOL, If you have read my past blog posts, you know that I have a sense of humor in all my posts, and try to keep things light hearted.
Now if your a Realtor, you just spent weeks, months, sometimes years getting the Buyer into contract or a home.
If you are a Lender, you are stuck with a HUGE bill for credit reports, you have spent a ton of time, and your closing conversion ratio is low, not because of your skill set, but because of the market.
Solution: START SHOWING NEW CONSTRUCTION HOMES ASAP!!!
Everyones answer is going to be different. I was blessed that I was recruited to a local Builder KB Homes. I must say, this has been a blessing.
I have INVENTORY, the Homes are Priced RIGHT!
Its better for the Buyer because:
1.) They dont have to deal with rejection, become unmotivated, become frustrated,
2.) They dont have to worry about fixing the property up after closing
3.) The In House Lender has FUNDS and focuses solely on purchases for that community, so turn times are speedy and approvals are easy.
4.) Your offer gets accepted
5.) The Home is GREEN, Energy Efficient is the way to build
6.) 10 Year Warranty
7.) They can monitor the process of the build, ensuring quality
9.) BMR properties MUST be offered
10.) Easy Broker Co Op
The list goes on and on and on.
I hope this long blog post helps! If you are a Realtor and are interested in ANY information or assistance on New Construction in Dublin CA Call me ANYTIME
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