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What this Credit Crisis means to me…My two cents…

By
Managing Real Estate Broker with Howard Hanna Real Estate Services

The news shows are full of opinions, and as the old adage goes ‘everybody's got one.'  So, here's mine.

In a market like we are facing with lenders going out of business, and Buyers finding it harder to qualify for mortgages, and FHA and conventional underwriting rules changing almost hourly (sorry, over the edge there...) I have never been stronger on a listing appointment (that one is a fact!).

I learned this strategy very early on, that I was a valuable advocate to home owners, and this value has nothing to do with advertising their property or holding their home ‘Open' on Sundays.  It has everything to do with risk management. In a nut shell, I anticipate as much as possible what can go wrong in a situation with a potential Buyer and help the Seller manage or even avoid the risks; creating a much higher probability that the sale will go to settlement and escrow will close.

If you aren't providing this level of professional service to the homeowners you work for you're going to lose the listing to someone like me every time.

Let me give just one example of this. The Seller receives an offer on their home.  If it's just faxed in or delivered to you, or even if the Buyer's Agent will be presenting it to you and the Seller makes no difference to this strategy.  This strategy starts with my listing presentation, where I explain this strategy that they insist that I have spoken to the Buyer's lender to get the answers to several questions.  I recommend they not make any decisions on offers until I have that for them.  Why would the Sellers want to take their home off the available market for two weeks while the lender gets the Buyers fully qualified?  These questions, developed during various market conditions, give the Seller lots of insight into the viability of this mortgage and the real status of the Buyer.  You've all seen the generic Buyer qualification letters.  What I want the Sellers to know is, have the Buyers actually sat down and handed over paystubs and other financial information yet, or was this done over the phone, among other things.

There's lots more to this obviously, but that should get you thinking for now. Go out and make it a great day!

Show All Comments Sort:
Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

Knowledge is key to all business decisions, these days.    Slapdash or wishful thinking no longer cut it.    Good post!

Sep 26, 2008 03:47 AM
Jim Fischetti
The Fischetti Group/Keller Williams - Wake Forest, NC

Jim:

 

Good post, thanks for sharing and good insights.

 

Jim

Sep 26, 2008 03:49 AM
Randall Schrader
Competitive Insurance of Dundee - Dundee, FL

You need to work with a great mortgage broker like me!  I had a buyer come to me with a ton of rental income, mostly from "Free and Clear" properties.  He wanted to make a small loan from his current residence which was also free and clear to buy yet another rental.

He provided a rental roll and a good credit score, so I asked for his tax returns for 2007 and 2006.

Boom!  Not a nickel of rental income.  Case closed, next potential client please.

Sep 26, 2008 03:49 AM
Brenda Harmon
Century 21 Beal, Inc College Station, Texas - College Station, TX

Randall,

Before I began as arealtor I tried to sell my house myself.  Found a buyer right off the bat.

She owned a laundry.  Guess where all the nickels went?  Don't know.  She couldn't get a loan

because none of it showed up on her tax return.  I listed my house and sold through my neighbor

who was a realtor.   So I know what you mean.

Sep 26, 2008 06:37 AM
Jim Gainer
Howard Hanna Real Estate Services - Hershey, PA

Thanks for visiting and sharing the horror stories.

Randal you're right, we all need a good partner in this storm.

Brenda, your story is all too often repeated even with agents involved. I wrote a post about protecting sellers and managing the risks foir them. Please let me know what you think of the tips I gave there.

Oct 08, 2008 01:16 AM