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More Great News for Florida Real Estate Agents!

Posted: Thursday, September 2nd, 2010
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You already know that I don’t watch the news… but there’s been some amazing stories that seem to keep finding their way on to my radar screen… just wanted to take a minute to share some of them with you!

After the first ever DECLINE since the 50’s in Florida’s population in 2008-2009, we’re showing an increase again!!! (Except in MY county… That means more people will need to buy or rent houses! To see the full story, Click Here.

American’s Economic Confidence is Up… we’re still low, but it went up a few ticks when analysts expected a decline… Incresed consumer confidence = people spend money = people buy houses! Read the full story HERE

Florida’s economic confidence is up 1 point but has stayed fairly stable. Here’s the Story!

Pending Homesales rose 5.2% in July! For the story, Click Here

These are all stories and facts that you might want to share with your clients… please understand I am NOT saying our troubles are over… but at least you can show a little bright side of the market to your clients!

Enjoy!
Andy

Do you have your DREAM business?

Posted: Friday, August 27th, 2010
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I had the wonderful pleasure of hearing Wendy Kurtz speak at a meeting I was at this week. Wendy consults with some of the top speakers and authors in the country on building their brand and selling more books. Since I’ve been tossing around the idea of writing a book, I figured I’d hear what she had to say… and boy am I glad I did! (find out more at www.WendyKurtz.com)

One of the things she shared right at the end was her “DREAM Principle” which is an easy to follow 5-step process for business success… and even though she was talking about authors, my mind kept applying them to my real estate business, so I figured I’d share them with you today.

DREAM is an acronym which stands for:

Define your business. Develop your core business because it’s the foundation of your success. What can you help your clients with. If you try to be everything to everyone you’ll end up with nothing.

Recognize your strengths - establish a competitive advantage based on your unique skill (why should they pick you instead of agent B?)

Evaluate your opportunities - don’t take every gig you get offered, make sure it lines up with your goals (this is a lesson I’ve RE-learned lately… if you don’t get a great feeling from a potential client… don’t work with them! We have choices and don’t have to work with everyone that walks through the door!)

Assess your feedback. And remember that feedback does NOT EQUAL criticism… it’s a business building tool. If a client has complained about something… don’t get defensive immediately… slow down and look and see if there is some truth in what they’re saying and see if you need to remodel your office policies & practices to ensure it doesn’t happen again.

Manage your reputation/brand - it strengthens your brand and unlocks your full business potential (her example was an author who researched an organization thoroughly before agreeing to take them on as a sponsor)

I hope this hits you like it did me… I’ve been so busy working IN my business that I’ve not taken the time I should to work ON it… time to refocus!

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Today Fannie Mae launched a new consumer education website on foreclosure options…

Posted: Wednesday, August 4th, 2010
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Today Fannie Mae launched a new consumer education website on foreclosure options.

The way I found out about it was when I received a call from the Orlando CBS affiliate, Channel 6 News asking if they could interview me about the new site… www.KnowYourOptions.com
So while he was asking me questions about the ramifications of a foreclosure on your life (credit, jugdments, etc.) I pulled the site up quickly to take a peek! It’s actually a pretty good site!

A lot of the information they are sharing is similar to the info I put on MY info site, www.BeforeYouShortSale.com which is for Orlando Short Sale Homeowners info.

They cover the options for when you want to keep your home, including something they call “Deed-for-Lease” which is where you deed your home to the lender (called a deed-in-lieu of foreclosure or dil) and then they will rent it back to you for a specific period of time for current market rent value. The other options when you want to stay in your home are: refinance, repayment plan, forebearance, and modification and on the site they explain what each of these are and the benefits. But remember… if you want to stay in the home you will need to be able to qualify for the payment, so if you are without income you will most likely not qualify to keep your home.

They also cover the options for when you can’t or don’t want to keep your home. These include Deed-in-Lieu and Short Sale and cover the what’s, how’s, and benefits of these options for your family.

Within an hour of my “phone interview”, the reporter from Channel 6 was here in my office with his camera guy to do an interview and find out more about what options a homeowner has in Orlando if they are facing a challenge with their mortgage or facing short sale or pre-foreclosure. The spot will run tonight on Channel 6 between 6-7pm and I’m figuring will be re-run on their website www.clickorlando.com

If you are a homeowner facing trouble with your mortgage, check out the site: www.KnowYourOptions.com it has some really good information that might make your decision easier. And if you are in Seminole County or the Orlando area… give me a call!

If you are an agent, check out the site and consider using it as a tool to share with your clients. It will answer most of their questions and the info is coming from a 3rd party credible site.

See you next week!

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Halfway through 2010… what’s your year look like?

Posted: Thursday, July 22nd, 2010
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Here we are… halfway through the year. Time to take a look back at the last 6 months and see where you’ve been and what your results were. Set aside at least a half hour to complete this…

1. Look at your closed transactions so far this year: How many? Average transaction size? Average gross commission? How many buyers vs. sellers vs. both? How many short sales vs. REO’s vs. “regular”? This will give you an idea of what “niche” you’ve been working whether you realize it or not!

2. Look at your marketing: How often did you send out a mail piece? What were the results? Did you send a newsletter? Where did most of your closed transactions come from? Did you Blog? If you see a trend for where your business is coming from, step it up! Do More! It obviously worked!

3. Look at your personal self: How many hours did you work? Did you eat right? Did you excercise? Did you take a vacation (even a weekend?)? Did you partake in your favorite hobbies? It’s important to balance work and home!

I just did this exercise myself and it was kind of shocking! So far year to date I already have 1 more closing than ALL of last year!!! Yayyy!!! Except the Gross Commission Income is almost exactly HALF of last years! Booo!!! So I can honestly say I’m working twice as hard for half the pay!

Why is that? Because my average transaction size is so much smaller. Those $20,000 condos really take your average down! (but take the same amount of work!)

Based on this information, I’m going to tweak my marketing for the next 6 months. And that’s what we’re going to talk about next week… what to do with this info and make positive profitable changes for the rest of the year!

See you next week!

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Cruddy, Useless Mortgage Pre-Qual Letters and How to Spot Them!

Posted: Wednesday, July 14th, 2010
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There has always been a lot of incompetence in the mortgage business, but when the money was flowing it really didn’t matter because if you had a heartbeat you could get financed, so inexperienced mortgage brokers could still be successful. But now that money has tightened up, you can’t risk your deals on a mortgage broker or an approval that is bogus.

This deal was kind of funny. When the buyer’s agent submitted the offer, they included a very weak pre-qualification letter. When I called the loan officer who’s name and number was at the bottom to ask for some clarification, they had disappeared! POOF! Gone. (Imagine that!)

I told the buyer’s agent and she said “Oh My!” So today I get a different preapproval letter from a different company and broker. This is what prompted our lesson for today. So first, go take a look at the letter HERE. (it is in .pdf format and you can print it or just look on the screen. I have blacked out the client’s and company name and cut off their logo header and their signature at the bottom. Nothing else has been changed)

Got it? Ok, here we go:

Right in the first paragraph is says: 1) he has been pre-approved then 2) this loan pre-qualification and 3) This is not a loan approval. So which is it? Is he approved or not? Then it goes on to say that “Loan approval is subject to completion of a mortgage application… WHAT!?!?! I read that to say he hasn’t even made loan application yet! I’m sure that’s not the case, but I’ve got to give this letter to the lender I’m trying to negotiate the short sale with…and that’s how THEY’RE going to interpret it!

Let me suggest what you SHOULD be seeing in a pre-approval letter. I look for things like:

“Mr. Smith has made loan application with our company and we have received a preliminary approval from automated underwriting. This approval is subject to verifications and full underwriter approval and is subject to change” or something loosely resembling that. It will also usually list things like: satisfactory appraisal, title, seller contribution of X%, etc.

Here’s the real scoop: A good loan officer can take a full 1003 loan application (pronounced “ten-oh-three”) in 5-10 minutes. It then takes all of about 5-10 minutes OR LESS to run it through automated underwriting system. So from first contact, a good loan officer can have a REAL approval letter to you in 10-20 minutes. There. Now you know the truth. This includes FHA and VA loans.

The other thing that I didn’t like in this letter was the 4th bullet point: “LTV 97% financing and buyer will need 3% in down payment assistance from seller”. Two things jump out at me.

1. As of 1/1/09, FHA loans are now 3.5% down, so the LTV would be 96.5%, UNLESS the case number was assigned prior to 12/31/08, which if it was already assigned, I would probably have received an APPROVAL not a pre-qual.

2. There has been no such thing as “down payment assistance from the seller” since October first of last year when programs such as Nehemiah and Ameridream were squashed by FHA guideline changes. Did they really mean to say 3% closing cost assistance? Don’t know, but again, I have to provide this letter to my negotiator, so it must be very clear that the buyers are qualified or my short sale will get de-railed.

These things SCREAM inexperience to me. I wrote a few months ago about the importance of having an experienced FHA lender doing your deals, and this is just further proof. A broker with 10 years experience costs your borrower about the same as someone with 10 hours experience, so please be careful who you’re referring your buyers to.

Hope you enjoyed today’s lesson!

Andy

P.S. I answered Tim’s mortgage line yesterday while he was out at an appointment and it was one of the agents that gets this newsletter every week calling to see if anyone would even answer the phone! It seems she had given out 3 mortgage broker names to clients over the weekend and 2 of them were out of business! Can you imagine if they went out of business mid-stream in one of your deals? Wow! So the answer is YES, Tim is still in business and (usually) answers his phone!

UPDATE:

There are several reasons why as a BUYER’s agent you want a strong pre-approval:

you know that you are dealing with a qualified buyer (not wasting time)
you know that you are showing them homes in the right price range
you will structure your deals properly for the financing approved for (ex: get an FHA/VA addendum, ask for closing costs or other contributions, etc.)
you’re not taking an absolute stranger into a vacant home and risking your life (car dealers ask for a drivers license before you can test drive a car but most agents will meet a stranger at a vacant house based on a 2 minute phone call! amazing!)
your offer will be taken more seriously
you’ll be able to put offers in quicker and even nights and weekends without having to get a mortgage person on the phone

As a LISTING agent, you won’t be pulling your seller’s house off the market for someone that can’t really buy it!

Happy Selling!
Andy

“Positive Thinking” and “Law of Attraction” are Malarky! Here’s why…

Posted: Wednesday, June 30th, 2010
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Stop Thinking so Positive all the time…

I think some of the “Positive Thinking” and “law of attraction” ideas have been taken a little too far. Don’t get me wrong… I completely understand AND implement the concepts, but IT DOESN’T WORK if you’re sitting on the sofa watching TV at the time!

“Luck is what happens when preparation meets opportunity” Seneca

Some people have said that I’m “just lucky”. I don’t agree with that statement. My “luck” would not exist if I didn’t spend so much time at networking groups, learning new skills, and implementing new ideas in my business. I attribute my success in this crazy market to several things: good marketing, good thinking, and yes, a dose of good luck.

“I’m a great believer in luck, and I find the harder I work the more I have” Thomas Jefferson

I know many agents are struggling right now and many more have left the business. But for those of you that are left, it’s your DUTY to your clients to be the best you can be and to serve them well. You can’t do that if you’re worried and stressed and full of “Stinkin Thinkin”. If you think everything’s going to go wrong in a transaction…guess what? It will!!! Then when something does pop up on a deal you are going to make it a bigger problem than it really is.

I think that’s one of the strengths in myself, my husband, Tim (the mortgage guy) and my brokerage partner, Jeff. When one of our agents comes to us with a problem on a deal-we just find a way to solve it! Every deal is closeable-it’s sometimes just a matter of looking at it 3 different ways before you see the solution-but you’ll only see it if your eyes are open and looking for it!

“PATIENCE AND PERSEVERANCE have a magical effect before which difficulties disappear and obstacles vanish” John Quincy Adams

SO YES I want you to think positive. But I also want you to ACT positive! Surround yourself with people that are doing and thinking good things-and you’ll find yourself doing great!

One last thought…

“Opportunity is missed by most because it is dressed in overalls and looks like work.” Thomas Edison

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How “Bad Andy” has made me a better agent

Posted: Wednesday, June 23rd, 2010
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When you play the Nintendo Wii video game, you start by setting up a “Mii” which is your character you’ll use to play many of the games. I first set mine up as a cute blonde with blue eyes… “Andy”. The problem with “Andy” was she kept losing to “Tim” at all the sports games! So I went back in and set up a new Mii… “Bad Andy”. Black hair, black clothes and cat’s eye glasses-she’s a gothic alter ego to “Andy” and she’s waaayyy better at sports! Something about stepping into a different persona makes you think, feel, and act differently.

This phenomenon can also allow a shy person to be outgoing, a scared person to face their fears or an aggressive person to tone down when talking to a client. It’s really a lot like acting. Actors have to step into their roles each time and make us believe the character - even though it might be 180 degrees different then the last role we saw them in.

W.W.B.A.D? What would “Bad Andy” do?

Any time I’m facing a challenge on a deal or with a client I take a deep breath and think about the situation and how it might be handled. I once heard a trainer say that if you’re in a situation that you don’t know what to do about, ask yourself “If I DID know what to do…what would it be?” Sometimes just asking the question a different way will show you the answer!

One way I’ve been using theses techniques lately is in my new role as partner at my brokerage firm. I’m being faced with lots of new tasks and challenges that I’ve never had before, such as now being involved in the property management side of the business and the hiring of new agents. Anytime I go into a new situation I just ask myself; “what would an experienced property manager do in this situation?” and usually the answer becomes clear.

Try this technique the next time you’re in a pickle and let me know if it helps!

P.S. “Bad Andy” will take you on at Wii anytime…but “Andy” will beat you at Trivial Pursuit!

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How to take back control of your time… in meetings and other interactions!

Posted: Wednesday, May 26th, 2010
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This morning I made a BIG change in our property management meetings here at the office. On the big plasma TV we have in the conference room to show listings on… I set up a 15 minute countdown timer (just google it). When everyone came in for the meeting I said “we’re trying something new today, from now on our meetings will last 15 minutes” everyone laughed, but guess what… we were in and out quicker than we’ve EVER been (we took about 20 minutes, but that’s because we decided to revamp our filing system so that took a few minutes longer). When people know they have a deadline or a time frame, theysay their piece very concisely and cut out all the fluff!

Here’s what I like about this: meetings suck! Everyone hates coming to meetings. But they’re also important! We all need to know which properties are gone, what’s new, rent price changes, legal updates, etc. I want our meetings to be a HELP to our business bottom line, not a distraction from what you should be doing!

I foresee that this change will do several things:

They’ll get to the meetings on time because they know they’ll be short
They’ll be prepared with the updates they need to give because they know they’ll only have a short time
They’ll advise us in advance of any major thing they need to go over in case they need more time
They’ll LOVE the meetings because they know they’ll get in and out quickly and get the info they need to go make money

How can you use that in YOUR business or day to day life? I can see a few ways…

How about that customer/friend/co-worker that tends to turn what should be a 2 minute call into a 30 minute blah-blah-blah and on and on… (go ahead, laugh, I know you’ve got one or two of those people in your life!). The next time they call you can START the conversation with “I’m glad you called, but I’ve got a (conference call, client meeting, webinar, etc.) that starts in 5 minutes so we’ll have to make it a quick conversation”. This sets the rules for the call right up front so if they DO talk on and on it won’t appear rude when you say “oh, it’s 2 minutes until my webinar and I’ve still got to log in!”

When I meet with clients they will often say “how long will it take to do the papers?” and my answer is “that depends on you and how many questions you ask and if you want to chit chat or just get down to business! I’ve got some clients that have bought lots of houses before and they don’t want me to go through every single document, those take about 15 minutes, other clients want me to read every single line to them and that can take an hour or more… how long should we allow for your appointment because I’m OK either way?” Their answer will give you a good idea of what type of client you’re dealing with.

Lastly, If YOU run a meeting… ANY kind of meeting at all, respect the start and end time. In my women’s networking group that meets once a month, everyone gets 30 seconds to stand up and do their “info-mercial” and we have a timer that beeps at 30 seconds, but many of the ladies were ignoring it and would continue talking even after it beeped. If you say something during or after the presentations, then it looks like you’re pointing a finger at someone in particular and may create hard feelings. I’ve started now telling them the “rules” of the 30 seconds BEFORE anyone takes their turn and it goes something like this: “Please keep your introduction to 30 seconds… each lady will get the same amount of time. Just to let you know up front… if you keep talking after the beeper goes off, nobody even hears what you say because they now are just wondering if you didn’t HEAR the beep or if you are just that disrespectful of their time” It’s amazing how EVERY SINGLE intro stays under the 30 seconds when we do it that way! And nobody is embarrassed because you didn’t mention it AFTER they took too long! (yes, it’s very firm, but when you RUN a meeting, you are expected to keep the meeting on track. That’s your JOB!)

Next week I’m going to implement the time clock in both my Sales Meeting AND my career night presentation! Can’t wait! It’s going to free me up so much more time to be productive! (or just some more ME time to work out, grab some sushi with friends, or maybe play some Wii!)

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How’s YOUR follow up system?

Posted: Tuesday, May 4th, 2010
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We’ve all heard it for years, the key is in the follow up… most sales are made after the umpteenth follow up… follow up is critical… got the picture?

Well, I agree 110%. But I practice only about 50%. I know that is the weakest part of my business and I am working on improving that part. We get busy and all of a sudden that post-it note on our desk is 2 weeks old and we wonder whether it’s too late to even bother calling…

Yesterday I saw first hand an EXCELLENT example of great follow up… and it’s probably going to result in a sale!

Yesterday my husband, Tim, forwarded me an email with 6 quotes for car insurance from AAA. One quote was from AAA company and the other 5 were from other companies they represent. They ranged anywhere from $1200 per year to over $2,000 per year. (we’re paying about $1,800 right now). I called him and said “I didn’t know you were shopping for car insurance” and he said “I thought YOU did it!”

So here we are, we have no clue why we’re looking at this price quote, but it looks GOOD!

Then when I got home last night there was a message on the machine from the agent at AAA. He said that last year about this time we had requested a quote so he knew we were coming up for renewal and he just wanted to provide us with some updated quotes and to call him if we have any questions.

HE KNEW WE HAD REQUESTED A QUOTE A YEAR AGO AND HE KNEW WE WERE COMING UP FOR RENEWAL AGAIN!!!!

That’s follow up! The only thing that would have been better would be to put that story in the email that he sent so we knew WHY we were getting the email.

What type of follow up do YOU have? If one of your potential buyers decides to rent for a year instead… are you following up with them about 9 months later to see if they’re ready? Are you following up with listings you DIDN’T get and contacting them again when they expire?

I know, it’s a lot of work, but GETTING the leads is the hardest part in most businesses. If someone has stepped forward and even HINTED that they’re interested in buying or selling, stay in touch with them until they DO! (or they call the cops on you… that’s a good time to take them out of your tickler file!)

p.s. the $1,200 a year quote is for the SAME coverage we have and it’s with a very reputable company… I think we may be switching! J

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NOW I’VE SEEN EVERYTHING…

Posted: Thursday, April 29th, 2010
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One of the other agents in our office is working with a buyer that is purchasing an REO from… hmmm… let’s change the names to protect the idiotic… let’s call them “Big Bank in America”. Anyways, the person that signed on behalf of the seller does not show up on the “authorized to sign on our behalf” list, which was provided by the seller’s title company. The buyer’s lender obviously wants to know that they have a valid contract, so when they questioned this and said they needed to see a more updated list that includes Joe Signer as authorized… this is the response that came from Joe Signer:

“That’s not going to happen. You act like I can just add my name to the list. The list is very controlled and I am not authorized to be on the list. My closing officer is and that should be sufficient for the underwriter. Who honestly I don’t think know what they are doing. I’ve never had this issue persist. If the underwriter balks then the buyer will have to find another lender who underswtands REO property signing authority.”

Yes, that’s a direct quote out of “Joe Signers” email. He actually says “I am not authorized to be on the list” which would be the list that says whether you are authorized to sign contracts on behalf of the bank… which is the exact point we brought up to start with…

I am so glad that we have such competent and friendly people helping our real estate market rebound!

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ARE YOU READY TO HIRE AN ASSISTANT?

Posted: Wednesday, April 21st, 2010
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Ok, it’s official: real estate has been tough over the last few years. But now many of us that are left are finding a whole new challenge… NOT ENOUGH HOURS IN THE DAY!!! I talk to agents all the time that are swamped and are considering if it’s time to hire an assistant, so I thought I’d discuss that a little bit today. Here’s some food for thought (cookies!):

In many communities over half of the agents have left the business, but the closing volume continues to climb. However the prices of homes have also cut in half so therefore our commissions! What’s left is overworked agents making half the money for 4 times the work! How do you know if you’re ready to take on an assistant?

- Are you making enough money consistently to put someone else’s family’s livelihood at risk? Once you hire someone your are somewhat responsible for them, especially if they leave another job to come work for you.

- Have you considered “outsourcing” some of the duties you need covered? For example, you can outsource just about everything these days (yes, they cost money, but so does hiring an employee and being responsible for their payroll taxes too!): Closing Coordinators, processors, short sale negotiations, newsletter mailings, social media updatings, website/blog updates, personal assistant duties, virtual tour pics/setup, just about anything you can think of!

- Do you really need an assistant? or do you need a buyer’s agent or a listing agent? Maybe you can team up with a newer agent whose business isn’t as steady as yours and share the commissions on your referrals. If you’re not following up with leads timely, you’re losing them… half of something is better than all of nothing!

- Are you at a point where having the assistant would allow you to take your business to the next level? Maybe you have marketing that’s not being done due to time constraints, maybe your filing isn’t getting done… having someone else do the little stuff can free you up to go do what you get paid to do: sell houses!!! (keep in mind when you’re filing, etc., you are doing minimum wage tasks. when you are selling you are making well above minimum wage. do more of what pays you well and outsource/hire the rest!)

- Have you considered starting with someone part time? Or maybe sharing an assistant with another agent in your office? Just a thought!

If you are ready to take the leap, there are tons of very well qualified people out there. When we recently hired a new real estate secretary, I was amazed at the quality of applications I received. Right now I’m interviewing for a new property manager and I’m getting bombarded by VERY well qualified resumes. It’s overwhelming!

And to save you a little bit of money, Washington has announced some new incentives to spur people on to hire new employees. To read what Kiplingers had to say about the new tax breaks, CLICK HERE

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What’s a Good Closing Gift for a Real Estate Client?

Posted: Wednesday, April 14th, 2010
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Since I’m now a partner in our brokerage I’ve taken on a lot of new roles… manager, recruiter, garbage can empty-er, trainer, bottle-washer… I think you get the picture! It’s been an exciting year so far, and I think that the questions my newer agents are bringing to me might be some that you have too, so I’m going to take some of my writing ideas from them!

Today I want to talk about closing gifts. Recently one of our agents asked me about what’s a good closing gift to give to a client. I gave him a quick answer on the spot, but I’ve really been thinking about this a lot since then because this might be a deeper topic than it first seems!

At a time when so many agents are struggling financially, you’ve really got to weigh the options for whether you even WILL give a closing gift! So let’s look at why you might want to:
Pro: You want to build long-term rapport with them and be seen as a “friend” that gave them a housewarming gift… just like their parents and friends will at the housewarming party. This is great for relationship building. (and referrals!)

Con: They were the type of clients you DON’T WANT to build a long term relationship with! (come on… we’ve all had one or two of those! I seem to have had a lot lately!) Save your money!

Seriously though, I’m a big believer in “it’s the thought that counts” especially in a time where so many agents are watching their pennies very closely. Here’s what I mean:

If you get them a $50 or $25 or even $100 gift certificate to a hardware store or a restaurant, they are able to put an exact dollar value on your gift (”they made $3,000 commission off me and all they gave me was a lousy $50 gift card!).

If you buy them a THING then you are risking that they won’t even like it. Quick story, when Tim & I bought our first house our agent gave us a THING to hang on our wall… it was some kind of grape-vine wreath with feathers sticking out of it, basically it was not at ALL our style. In this case a gift actually served a negative purpose because I wondered if she had gotten to know us at all during this time. (no, I never hung itup!)

But if you LISTEN to your clients during the time you spend with them, you might just hear them mention something that they might LOVE!!! Here’s 2 recent examples:

I found a young couple a beautiful house that had been nicely remodeled, was in a gated community, and had an amazing pool in the back yard. They fell in love with it right away. During the home inspection they wandered around deciding what furniture would go where and they mentioned that there were no garage door remotes and kind of sighed that they would have to figure out what kind to buy. Guess what their closing gift was? Exactly! Two garage door remotes. You should have seen her face… I don’t think that I could have picked a better gift! (by the way, she had no idea what I spent and I bet she didn’t even care!)

Another buyer that I’m working with right now has mentioned a few times that he wants an herb garden when he gets into the new house. BINGO! I’m going to get him a gardening kit with some tools, pots, and seeds to start his new garden. This will probably cost under $30 but will make an impression worth many times more than that!

Now do you understand what I meant by “it’s the thought that counts?” When you give your client a gift that is exactly what they wanted and didn’t even know that’s what they wanted… you’ve done a great job that they’ll remember you for.

I’d love to hear your thoughts on client gifts and share your stories of a great gift that you got for a client.

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Are YOU using all of the tools you’ve invested in? Part 2!

Posted: Tuesday, March 16th, 2010
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My last article on this subject got GREAT feedback, so I thought that I’d readdress the topic and discuss it some more! (If you missed the last one, CLICK HERE)

As agents, we face many changes in our business… the migration to the Internet, texting, declining prices, lower commissions, and sometimes working with the same client for a year before getting a paycheck! While it is frustrating (I often say we now work 3 times as hard for 1/2 of the pay!) it is also a great opportunity!

Here are some of the changes I’ve had to make to “keep up” in my business, please comment and share some of yours!

I TEXT! I am new to the texting world, in fact, like last week! I just got a new iPhone, and it’s GREAT! (once I figured out not to type my message in the first line… only the 2nd!). I had texting on my old phone, but I very rarely used it, I only saw the expense associated with it, not the benefit (maybe seeing my friend’s get 50 texts during a gator game from their spouse at home is what scared me!) In fact, one client I worked with last year I actually caught myself telling them “I don’t text… either call or email me.” Do you believe that? I might as well get out my walker and reading glasses cuz that’s what someone ‘over the hill’ would say! Here’s what you DO do in your business… WHATEVER THE CLIENT WANTS!!! So far in just the last week I’ve texted to confirm showings, I’ve texted clients after hours (too late to call, but they were up and texted back!) and texted people I know are in a meeting but needed to get a message to. COOL! (AT&T has a plan for $5 you get 200 messages a month… I think I can swing $5.)

I Build Virtual Tours! I think in this day and age if you don’t have a virtual tour you’re doing your seller a dis-service (of course unless it’s a junker property or not suitable for a virtual). Don’t fuss about the money… how’s $5 sound? I’ve been building mine at a site called www.UBuildTours.com they charge $5 for a tour and it’s up for a whole year and they give you both branded & unbranded tours AND some really great stats reports!!! (if you decide to try it, put my name in and I’ll get a free tour). Yes it takes a little effort on my part, but it pays off! You’re seller appreciates it and so do the buyers. I have a showing on one of my listings tomorrow that called and said “I watched the virtual tour… I like it… when can we see it?”

I’m now Videoing! I bought a Flip Camera (or you can use your phone, or maybe even your regular digital camera) and then you can upload videos of your houses to your website, or YouTube, or Facebook or any other site! I just uploaded a quick video about my new iPhone and the cool case I got for it (of course, there’s also a marketing lesson in there for you!) Watch the 90 second video HERE (by the way, limit your videos to under 4-5 minutes max… much longer and they won’t even watch it)

I’m building a team! Our office has associated with a new franchise and I am bringing a few agents onto my team. I’ve realized that I can only get so much accomplished in the hours that I have available, so I am restructuring to let other people help me in my business AND they’ll make more money too! Look at how many hours in a day you have. How many listing appointments can you go on? How many showings? Based on that activity, how much CAN you make? I am better off sharing my leads with another agent and then I get a little bit of the commission instead of 100% of nothing because I didn’t have time to get to it. John D. Rockefeller is quoted as saying: “I would rather earn 1% off a 100 people’s efforts than 100% of my own efforts”. I’ve also outsourced some of my work virtually and have become better at delegating. YOU CAN’T DO IT ALL (and you’ll kill yourself trying)!!! LET other people help you and you will all be happier, healthier and wealthier!

By the way… as I uploaded the YouTube video I also showed our receptionist how to do it… so next time SHE’LL upload it instead of me! See? Delegation is Cool!

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Are YOU using all of the tools you’ve invested in?

Posted: Tuesday, March 2nd, 2010
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Recently while teaching a class I was discussing how I had just gotten a new listing which had been on the market for quite a while with a different agent. I told the class that when I Googled the address only ONE listing came up… Homes&Land… NO Zillow, NO Trulia, NO Craigslist. Just Homes & Land.

Well, that little lesson about how the old days of just sticking it in MLS and it will get sold are GONE turned into a polite email from the publisher of Homes & Land. It seems that many of her advertisers were in the class and called her up and said “you told us that our houses automatically go to all of those sites! What’s the deal?”

So here’s “the deal” which will be promptly followed by “the lesson”

After a lengthly phone call with the publisher AND her making a phone call to her programmers/techies, here’s what you need to know:

“The Deal”

First and foremost, I was NOT talking bad about H&L. We advertise with them. Have for as long as I can remember. We get calls. We get leads. Period.

Secondly, their listings DO get “pushed” to 23 different websites, (including Zillow which up until January you could advertise for free on but now they charge if you go direct). More precisely, the homes in the magazine AUTOMATICALLY go to those 23 sites UNLESS you specifically check a little box that tells them NOT to. For your listings that aren’t in the magazine, they do an MLS feed to the 23 different sites, but for these you have to check a little box that says you DO want them syndicated to the listings.

“The Lesson”

KNOW YOUR TECHNOLOGY!!! It amazes me how many agents are investing in tools and not using them to their fullest! In this market of decreased commissions, decreased sales prices, and fewer buyers, we need all the help we can get! If you are paying for leads, advertising, virtual assistant, voicemail, websites or ANYTHING else in your business, call up your representative or go through their online help/tutorials and make sure you’re using all of the bells and whistles. This other agent was paying for a service and missing one of the big benefits of it… the syndication to the 23 websites!

The other lesson? Be mature enough to admit when you’ve made a mistake… I was scared to make the call to the publisher to clear up the situation, but as soon as I did and we discussed the situation, I felt a whole lot better not having that hanging over my head. This is a small world… word gets around… both when you do the “right” thing and when you don’t. Your reputation is critical. Swallow your pride and make that call… I’m glad I did!

RESOURCES:

For Real Estate Agents: Subscribe to my weekly e-zine at www.AndyTolbert.com

For Homeowners: BeforeYouShortSale.com and SeminoleCountyForeclosureBlog.com

For Investors: IRCFlorida.com

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Is 99% Satisfaction Good Enough? (archive: July 2008)

Posted: Wednesday, January 27th, 2010
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(archive: July 2008)

Today I had a listing appointment with a client that was referred to me because of my skills in “Alternative Financing” and moving properties that nobody else has been able to sell.

Anyway, as I printed the Mapquest to his house, there was an ad at the top of the printout that was for Genuine Hewlett-Packard Ink for your printer. It said: “1 out of every 4 refilled inkjet cartridges will fail. Trust HP inks for 99% quality” or something along those lines. Their point was the they only have a 1% failure rate as compared to 25% failure rate among refills.

It reminded me of a handout that I shared with my Women’s Group a while back, and I wanted to share it with you today .

First, look at your mindset and your business, what quality level would YOU accept if you were put in charge of a product or service? 90%? 95? 98? 99? How about 99.9%? Many big companies think that a 99.9% quality rate is good, in fact, Motorola commits to acheive “Six Sigma” which is less that 3 rejects per million items produced!

Here’s some examples of what a 99.9% quality level would equal:

-12 newborns would be given to the wrong parents every day
-114,500 pairs of mismatched shoes would be shipped per year
-18,322 pieces of mail will be mishandled per HOUR
-2 Million documents will be lost by the IRS this year
-2.5 Million books would be shipped with the wrong covers
-315 entries in Webster’s dictionary would be misspelled
-20,000 wrong drug prescriptions would be written
-5.5 million cases of soft drinks would be produced with no fizz
-3,056 copies of tomorrows wall street journal would be missing a section
-880,000 credit cards in circulation would have the wrong info coded on the magnetic strip

Does that make you think a little differently about your acceptable levels in your business? Just a thought!

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What happens if you list a short sale too low?

Posted: Wednesday, January 6th, 2010
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Anyone that’s been in the field at all over the last year has seen it: a home that is in a $120,000 neighborhood is all of a sudden listed as a short sale for $75,000. I just saw that very situation first hand in a neighborhood that I own a rental property, in fact it’s the first home I ever bought and Tim & I lived there for 3 years before turning it into a rental, so over the years I’ve tracked the values in there VERY closely, it’s kind of my temperature gauge for the real estate market.

After I got over my initial anger over how someone could POSSIBLY list a property that much below market value in MY neighborhood, I started thinking rationally about why this might not be a good practice. Here’s a few ideas that I came up with and I’d love to hear any others you might have.

Bank turns the short sale offer down. Come on… banks aren’t stupid (oops, sarcasm!). If a house is solidly worth 120 and the BPO comes in at 120, they’re going to turn down 75! Yeah, you’re going to get offers, pretty quick and probably multiples, but if it’s never going to get approved you’re wasting YOUR time, your BUYERS time (and their agents’), and you’re not only wasting your seller’s time but maybe also costing him his house. You’ve gotten his hopes up that his credit will be saved and his home will be sold, but alas, it was not meant to be because his agent didn’t understand the short sale process.

Another thing is often the bank will ask you for listing history such as:
How long has it been on the market?
How many offers have you gotten?
What price(s) has it been at and for how long?

If I had listed that same property at $129,000 then lowered to 125 then 120 then 115 then 110 and then we get an offer at that point for 104, I can very reasonably show the lender that we TRIED to get more but this is the best offer we were able to get. If I list it at $75,000 and get an offer the next day for $74,000 then the bank is going to wonder if we COULD have gotten more for the property if we had marketed better, priced better, marketed longer, etc.

On the other hand… maybe some how, some way, the bank DOES accept the ridiculous low offer. How does that play out? Well, I’m glad you asked!

The lower the property sells for, the larger the 1099 “phantom income” or deficiency judgment will be. That’s right, to calculate out the 1099 Cancellation of Debt amount OR a deficiency judgment, they take the amount you owe the bank minus the amount it sells for and the difference is how much you technically still owe them. So the lower the selling price, the larger the amounts they still owe. This also applies to the lender asking for personal notes or cash brought to closing. (do you think the “lowball lister” explained this to their seller?)

If that property DOES close at $75,000, you’ve just set a new Market Value for the neighborhood. Typically short sales sell for fairly close to market value, so if you do get one through, the market takes notice. When you list yours for 75 then other sellers in the neighborhood feel pressure to lower their prices too. This results in the continued decline of market values.

I think that deep down in their hearts, EVERY real estate professional wants our values to stabilize and stop this awful downward spiral (hey, did you ever notice that a downward spiral is EXACTLY like a toilet flushing?) When an agent lists a property low like this, that stabilization seems less and less likely.

Your commission is lower. Yes, that’s a complete sentence and a complete thought. Don’t get me wrong… I NEVER make decisions based on the commission amount, but in this case, a higher price is not only better for YOUR pocket, but is also better for the Seller and their lender. If you are acting as a single agent for the seller, lowball listing prices are probably not in the seller’s best interest.

Although the buyer’s might love you! Oh wait, probably not. Not once their agent explains to them that you listed it low to try to “drum up interest” and get multiple offers and you expect them to come in over asking price. Buyers don’t like that line any more:

If you really want the house you’ll have to bid $20,000 over the asking price…

Uhhhh… that’s what got our market in the pickle that it’s in! Slight difference now though… we’re not telling them to go in over MARKET value like in the boom, only above ASK price (but still at or below market). We know that, but the general public is VERY gun-shy about this right now…

These are just a few I came up with in my head… what can you think of that I missed?
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FORBES list of most declining value cities… Good News or Bad News?

Posted: Wednesday, December 23rd, 2009
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Recently Forbes Magazine/Forbes.com released their lists of which cities had been hardest hit by home price declines, measured from peak to now (See the full report by CLICKING HERE)

They have it broken into Regions like Midwest, South, Etc. but judging from the 9 cities listed in the South category, Florida was the only state included in the category!

Of course on the surface this list shows everything that is wrong with our market right now… the top city, Merced California, had a 62.11% decrease from THEIR peak in the 2nd quarter of 2006 (that was the other interesting feature of the list… it shows the quarter and year the city reached their “peak”)

Here are 2 ways that I see you can use this info… I’m sure there are many more, and feel free to share them in the comments section.

1) Useful tool to show to sellers who are having a hard time absorbing the listing price you just suggested. I don’t know about where YOU are, but here in Florida we still have people that think they can get 2006 prices for their homes. This list is hard-fact, 3rd party proof of current value trends.

2) Useful tool to show YOU where the market is and what niches you might want to pursue… short sales and investor buyers are 2 that pop to mind right away!

As usual… I’m keeping it short and sweet today! Enjoy!

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What can an FBI Profiler Teach You About Real Estate?

Posted: Wednesday, December 9th, 2009
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While Tim & I were in France we had a lot of time to relax and do NOTHING at all. This wasn’t a glamorous sight-seeing trip, it was Thanksgiving with the side of the family that just happens to live very far away!

Anyway, just like everyone’s Thanksgiving there’s a certain point where the TV gets turned on, only there nothing’s in English! So Tim’s Mom had the DVD’s of the CBS show “Criminal Minds” about a team of FBI agents that help catch criminals by profiling them. I had never watched the show and got kind of caught up in it. Not because of the gruesome crimes, but rather by the methodology by which they figured out who the bad guy was. (by the way, of the ones I watched, THREE were set in Florida! What are they trying to say?)

Most “crime” shows look at the evidence, the “surface” stuff, but this show they get into the MIND of the criminal. As an example, in one scene the killer had gotten into the house through the back window. One of the FBI agents actually crawled in the window and based on how he had to maneuver he deducted that the killer was small framed and athletic. Everyone else just said “he got in through the window.”

How is this like the real estate business? When a client says “I want a 3 bedroom with a payment under $900″ do you take that “surface” information and try to base your entire case on it? Or do you dig deeper to find out WHY those things are important? Maybe a 2 bedroom with a den would also work if it was in a neighborhood that they REALLY liked… or maybe their budget could go up to $950 if they found a home closer to work so their commuting and gas costs were reduced…

For you to do the best job for your clients, sometimes you need to dig a little deeper to find out the REAL Why for their situation. You need to walk a mile in their shoes and learn what REALLY motivates them. Once you know this and work with them, you truly will have a client for life that refers their friends to you.

The 3 Foot Giant… How Tall Are You?

Posted: Tuesday, November 10th, 2009
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I just got back from a full morning of appointments and was all ready to write to you about the USDA/Rural Housing loan programs and how buyers can get ZERO down financing with NO M.I. But first I checked my email… offer on listing (print), closing confirmation for Friday (put in calendar, 1pm), email from my friend Nick: Hmmmmm…. he usually has some great insight to share for my business… let’s take a look! What I found was quite amazing, so I’m covering USDA next week, this week, I want you to meet Sean Stephenson. Author, Motivational Speaker, Therapist, and an amazing role model.

If you’ve felt down AT ALL about where you are in life or about the hand you’ve been dealt, then WATCH THIS VIDEO right now. It’s about 3 minutes and might just give you a different outlook on your lot in life.

Especially in real estate we’ve faced a few challenges over the last few years… watch the video and it might just kick you in the A$$ and start making the money you deserve again!

Don’t forget to put 10pm Sunday in your schedule and turn on the Biography channel (or in my case I’ll Tivo it!).

Andy

p.s. if you want to get Nick’s weekly business email tips, go to www.NickNanton.com and join the newsletter…

Lessons I’ve Learned…

Posted: Thursday, November 5th, 2009
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You might have read the poem by Robert Fulghum, All I Really Need To Know I Learned In Kindergarten… You know, share everything, play fair, clean up your own mess, etc.

Well lately I’ve been pondering where I learned some of my childhood lessons that have made me the person that I am today and I want to share some with you (who knows…maybe you’ll get some ideas!)

This may come as a surprise, but I actually am a country farm girl. No, really. My family had farmland and cattle. My first job was selling watermelons out of the back of the truck at an intersection.

My sister and I got taken on some unconventional “field trips” as kids. We went to both a slaughterhouse and a milking facility to see where our food came from (tip: if you ever raise an animal for food, name it something like T-bone or burger so you don’t get too attached) and an early visit to the landfill to see where your garbage goes (if you want to see bald eagles… Go to the dump. Not very regal, but they’re always there!) We also worked at charities and fundraisers for as long as I can remember (I’m great at the concession stand and to this day can make change in my head!) I’ve learned that by helping others you can help yourself (maybe that’s why I ended up specializing in short sales and teaching others)

As I got older I worked in the family retail business. We were in an industry that had a lot of competition from mail order so I learned to buy from local merchants whenever possible…even if it costs a few dollars more. I also learned payroll, advertising and accounting when it was all done by hand… which gives me a better understanding of how it works on the computer today.

My life has not been perfect. There have been definite highs and lows and I know that there always will be… But it’s what you do with the lessons you’ve learned that show what kind of person you are.

I hope that some of the lessons that I’ve learned and shared with you through this newsletter have made a difference… both in your real estate and your outlook on life.

Andy

p.s. Thanks Mom!

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PROOF of Bank of America’s new Streamlined Short Sale Process!

Posted: Tuesday, October 27th, 2009
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A few weeks ago I wrote about the NEW streamlined process on short sales at Bank of America (If you missed it, CLICK HERE) I also got lots of comments from people that just don’t believe it!

Well, today it was confirmed. We had a buyer fall out on one of my approved shorts and when I contacted BofA for resubmission they sent me a note that said we had to follow the new procedure and they sent me a “brochure” as they called it.

Here’s the link to see the new Bank of America Short Sale Brochure… it’s so new that this appears to be a proof that the mitigator sent me!

The client/seller will now call BofA directly, give them some info, and a file will be setup on REOTrans.com for the short sale. Then you as the agent will be able to login to this online portal (if the seller authorizes you) and upload the documents needed such as HUD 1, contract, etc.
Supposedly you will be able to see status updates real time and know exactly what’s going on… sounds like we’re in a dream! (or a drug-induced coma!)

Can’t wait to get this first one started under the new program! It can’t be any worse than their old method (knock on wood!)

Anyone involved in the new process yet? I’d love to hear how it’s going!

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Instructors, Please Control Your Class!

Posted: Wednesday, October 21st, 2009
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Please Control Your Class!

I’ve been leading trainings for almost 10 years now, and the longer I do, the more “Bad Andy” rears her head (in case you didn’t know, Bad Andy is my Mii Avatar when I play Wii) When I first started training, I hoped that everyone liked me, I hoped everyone learned something, and I hoped that everyone would give me a good review. After the class I always went straight to the reviews and read every single one, and 99% of them could be rave reviews, but if even 1 said anything negative at all, it would send me into a funk that would sometimes last for days…

At some point, Tim & Stacy (my husband and my assistant) realized this and forbid me from even reading them. You see, they reminded me that you can NEVER please everyone all of the time, and some people were only put on this Earth to complain (sound like anyone you know? maybe in your family or in your office). Don’t get me wrong, the feedback is VERY important to me and Stacy would go through them and share any suggestions and we would find a way to implement the ones that made sense, but the “bashing” ones were filed away.

I also tried to be the “neutral reporter” that just stated the facts but didn’t necessarily say one view was better than the other, for fear of offending someone. All that has changed over the last few years. I do take a stand. I do voice my opinion. I HOPE someone disagrees with me… at least that means they were paying attention! (by the way, to everyone that REALLY knows me, you know that this paragraph only refers to my CLASSES, in my personal and business life I have ALWAYS been very clear on where I stand and what I believe and have never been shy to make it known)

Now that you have a reference point, I want to tell you a story. I recently attended a training myself. I actually go to quite a few seminars every year, everything from communication styles to real estate techniques to how to be a better trainer… from $free to over $6,000! And don’t get me wrong… this training was great, the mindset and techniques are very in line with my business beliefs and practices, so I have nothing bad at all to say about the content. I also enjoyed the teaching style of the instructor… it was very similar to mine (stories and humor, etc.)

But all was not perfect or I wouldn’t be writing this. There were a few people in the class that felt like having their own conversations in the room during class. It is very distracting to have 3 conversations fighting for attention while the instructor is speaking. We also didn’t always start and end on the times that were promised. As I was sitting there, I just kept thinking to myself “wow, I hope my classes aren’t like that”

So I did some soul searching on the way home and here’s my vow to you:

-I will do whatever I can to start and end all classes and breaks on time. You’ve paid to be in my course, you deserve it.

-I will be more aware of “side conversations” going on and politely get their attention back on the training. If that does not work, I will politely talk to those parties during break. You’ve paid to be in my course, you deserve it.

-I will continue to update the course materials, handouts, and presentations to reflect the latest data and will strive to make even the most confusing topics understandable. You’ve paid to be in my course, you deserve it.

-I will always be open to constructive suggestions. I am not perfect. Bad Andy is closer, but she is not perfect either. You’ve paid to be in my course, you deserve it.

-I will continue to monitor the market and the changes happening to continue to bring you the latest techniques and information. You’ve paid to be in my course, you deserve it.

-I will never lose sight of YOUR needs. You are the reason that I train. (well, you and all of the thousands of families that I can help by helping you!). You’ve paid to be in my course, you deserve it.

I hope anyone that reads this that ever conducts any classes, trainings, webinars… anything, wil realize what might be happening in their own classes and be more aware.
And if you come to a future class with me… thank you for trusting me as an advisor in your business. I won’t waste your time you’ve invested!

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HOLY COW! Can It Be True? Bank of America Really has Streamlined Shortsales? Finally?

Posted: Thursday, October 8th, 2009
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I just got off the phone doing my “status calls” on my short sales… and there might be hope!

First of all, “Michael” looked up my first loan number (the one we’ve been working on since December) and he said “can you hold on for a minute?” then about 10 minutes later he came back and said “I had to double check because the notes didn’t make sense… you’ve skipped phase 2 and we have investor (FannieMae) approval while you were still technically in phase 1! I’ve never seen that before!”

Now, I already knew we had “skipped” phase 2, but I didn’t know that fannie had already come back with our approval.
This is the 2nd file since September that I’ve “skipped” phase 2. Don’t know why or how, but I’ll take it! YAYYY!

Then I gave him a new loan number… on a listing I just took. He pulled it up, obviously there was no activity in the notes, and I told him that I was just giving him the heads up that I had taken the listing. Then he proceeded to tell me that when I DO get an offer, as of last week there is a new procedure for submitting the file…

Are you sitting down?

Ready?

Fax in your contract and YOUR contact info. That’s it.
Then a negotiator will send you an email with a link to the REOTrans website for your file where YOU will upload all of the other documents into their system. No more faxing into La-La land and wondering if it got there! You’ll be able to see INSTANTLY that the docs were uploaded!

My husband is a loan originator and they’ve been using a similar system for YEARS… and it’s VERY easy!

Oh, and then he also said that website is where you’ll go in the future to get status updates!

Could it be?

“Michael” also mentioned that he thinks they brought in a bunch more negotiators because he’s been seeing a lot of new names lately in the notes…

IT’S ABOUT TIME!!!
Anyone else having a similar experience?

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It’s the 4th quarter and you’re down by 14… what do you do?

Posted: Thursday, October 1st, 2009
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Have you ever watched a football game and one team is losing for the entire game and then in the 4th quarter they come back and win? Isn’t it exciting to watch?

Well guess what… it’s OUR 4th quarter. The 4th quarter of 2009!

If you’ve been struggling this year, here’s your chance to come from behind and WIN! And if you’ve already been winning this year, here’s your chance to run up the score and win BIG! What are YOU going to do in the 4th quarter of the real estate game? I’d love to hear your plans!

Here are some ideas that I thought of:

-Master a new skill or niche: Short sales, REO, Blogging, Social Media… whatever it is you want to master, if you spend just one hour per day researching, reading, and learning… you’ll have it down in no time! I’ve decided that I want to learn more about HUD homes. My first rehab deal I ever did was a HUD home, and I made about $14,000 profit on it… 10 years ago!!!

-Sit down and look back at the last 9 months and see what you’ve accomplished. But I want you to be BRUTALLY honest with yourself… did you REALLY work your business? Did you put in the time you should have? Did you go to networking meetings? Did you call your past clients? Did you do WHATEVER IT TAKES (on the right side of the law of course!)?

-Find a mentor in a niche you’d like to learn more about… John… you out there?

-Consider investing in the current market, it is DEFINITELY time to buy some of these crazy low priced houses and condos!

-Commit to a set amount of time for marketing each week, and stick to it! Whether it’s blogging, social networking, or in person networking… calling past clients… getting a booth at your city arts festival… starting back up your newsletter… whatever it is, JUST DO IT!

PLEASE share your thoughts on my AR blog… I’d really like to hear them (maybe I’ll get some ideas too!)

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Why I Think Short Sales Will Be Around For A Long, Long Time

Posted: Wednesday, September 16th, 2009
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I get asked that question probably more than any other… “Andy, how long do you think this is going to last?” And unfortunately, you won’t like the answer.

Florida Realtors sends out a daily email with news updates… I don’t know if you read it or not, but I like to. It keeps me up on the happenings. In today’s, they had a really good article about loan modifications and how the majority of the homeowners that get a loan mod end up re-defaulting. They also talked about how most people that get a modification actually find their payments go UP and their balance go UP! How does that help? In an economy where people believe that it is going to get worse (notice I said they BELIEVE it to be true, not that it is!), we have probably just begun to see the modification/short sale/foreclosure iceberg. Here’s a few reasons why I believe this:

FIRST: We can’t deny the unemployment situation, and that doesn’t take into account the people that have had overtime cut, hours cut, benefits cut, and other things that will take their toll on the family budget. Most homeowners burn through their life savings to keep current on the house, and we will see them default sometime in the future when the savings run out!

SECOND: We are just now facing the “Pick-a-payment/option arm” payment adjustments. When these folks have their mortgage payment go up $1,000 or more a month… they’re a default waiting to happen!

THIRD: Almost all of the loan modifications that are being done are lowering the homeowner’s interest rate, but not the principal balance. Here’s why that might come back to bite them & us.

If they haven’t paid a mortgage payment for a while, then they also haven’t paid into their escrow account. Even if their lender reduces the interest rate and lowers the payment, as soon as the escrow account gets reviewed and they find a shortage, they will increase the payment to cover the shortage… DING DING DING! Payment goes up! Maybe even higher than it was!

Many of these loan mods are a temporary interest rate reduction. So they are lowering your payment &/or interest for 2, 3, or 5 years. What happens at the end of the term? That’s right, your payment goes up! The banks are trying to stick a wad of gum in the leaky dam and hoping it will fix itself. In 5 years when their payment jumps up, they’ll be calling me for a short sale.

What happens if they lower the payment, but then next year they get laid off of work? Or what happens if they need to move out of the area? They’re still upside down on the house (meaning they owe more than it’s worth). Exactly! They call me for a short sale.

See a trend?

I’d love to get feedback, ideas, and even rants and raves from you about this situation! Let’s see the comments!

To Comment on this article, please go to ActiveRain by Clicking HERE

p.s. to see the Florida REALTORS article, Click Here

Want Your Offers To Be Accepted The First Time? Just Follow Instructions!

Posted: Thursday, September 3rd, 2009
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In today’s wacky market, many listings are asking for very specific things to be included with an offer to purchase a property. This may be things such as a certain contract form, or a set amound of escrow deposit, or a certain type of loan pre-approval.

Whether you like it or hate it, the seller gets to set the parameters under which they will accept an offer and sell their house. We especially see this in bank-owned or “REO” properties as well as pre-foreclosures where the lender will need to approve the sale.

(Personally, I’m frustrated with all of the REO’s that require you to PQ with them before even submitting an offer… if you have a client that keeps shopping for houses and not getting them, they may have 10 credit inquiries racked up and that can kill thier score!)

When I am selling a property, I always put in the listing that I want offers on a Far/Bar form only. This is because this is the contract that I am most familiar with and understand all of it’s clauses. When an agent submits an offer on any other form, I immediately have doubts about the brain-power of an agent that can’t read simple instructions, and I start to doubt whether this agent is savvy enough to get his/her buyer to the closing table or not.

Please don’t be the one the listing agent is wondering about…read the listing and follow the instructions that are spelled out. If you or your buyer aren’t WILLING to give what the seller is requesting, then move on to another house.

By the way, if it’s your listing and the seller is asking for silly things, keep in mind that you may have a harder time finding a buyer…in this market they can just go find something else where the seller is being more reasonable! Explain to your seller why what they are requesting might be unreasonable and may even cause the property to be show to less buyers.

And if you as the listing agent are making it unusually difficult to comply with your “requirements” please consider if this is truly helping your seller or hurting them!

If you are the buyer’s agent, all you can do is explain the situation to your buyer and explain the pros and cons of complying and what their other options are!

To Comment on this article, please go to ActiveRain by Clicking HERE

OMG, Bank of America to take over servicing of Taylor Beans 180,000 loan portfolio

Posted: Friday, August 28th, 2009
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OMG, Bank of America to take over servicing of Taylor Beans 180,000 loan portfolio

I think anyone that has dealt with BofA on ANY type of loan servicing situation in 2009 (short sale, loan mod, answering the phone…) knows that BofA does not need any more loans to deal with.

Why would the servicing portfolio of a company that has been taken over by the feds be turned over to THE company that is probably the #1 cause of all complaints in the country right now???

I just don’t understand, can anyone help me understand this?

Here’s the link to the Orlando Business Journal Article

RESOURCES:

For Real Estate Agents: Subscribe to my weekly e-zine at www.AndyTolbert.com

For Homeowners: www.BeforeYouShortSale.com and www.SeminoleCountyForeclosureBlog.com

For Investors: www.IRCFlorida.com

The latest in the Countrywide/BofA short sale fiasco… “you’ve been randomly selected…”

Posted: Friday, August 28th, 2009
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The latest in the Countrywide/BofA short sale fiasco… “you’ve been randomly selected…”

Yep, that’s the words still ringing in my ears… We’ve been working on this file since DECEMBER 2nd! The home has been vacated for almost a year… this is DEFINITELY a short sale deal… C’wide/BofA has already approved and closed the identical house in the same subdivision for the SAME SELLER months ago… and yet

“Your file has been randomly selected for a new Fannie Mae program where they will review the file for a possible modification. They’ve sent a letter to the homeowner with some further info that they need, financials, etc. and if he doesn’t respond within 30 days, they will stop working on the modification and it will get assigned back to your same negotiator.”

Wwwhhhhaaattttt???!!!???

So what you’re telling me is that I’ve been taken OUT of the short sale que so we can see if a modification is possible on a home that the seller has already abandoned?

By the way… the “letter” they sent my seller was sitting at his front door the other day when I went to check on the property… why would FedEx leave a letter at the front door of an obviously vacant house? The front doors are all glass and you can see right in that it is vacant!

I’ve having my seller respond to their “letter” in the negative, as in: “I don’t want a $^#$%& modification! I want my #$%&^#$%@ house sold! We’ve been trying for 9 months, we’ve found you 3 different buyers, you’ve done 8 BPO’s and 2 full appraisals on this house, and yet here we are still discussing it! Move me back into the short sale department… NOW!” ( I anticipate that he will put it more gentle when he talks to them… he’s actually a very GOOD communicator, but I know that’s what he’ll be thinking!)

They say that might get me back in the short sale department in less than the full 30 days. we’ll see.

Anyone else experienced this yet? If not… I guess I’ve warned you!

AAAAAAAAARRRRRRRRRGGGGGGGGGHHHHHHHHH!!!

RESOURCES:

For Real Estate Agents: Subscribe to my weekly e-zine at www.AndyTolbert.com

For Homeowners: BeforeYouShortSale.com and SeminoleCountyForeclosureBlog.com

For Investors: IRCFlorida.com

I Can’t…and a good story from a TV star I know

Posted: Tuesday, August 25th, 2009
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I Can’t…

Have you ever caught yourself saying those words?

I can’t make it to your party…
I can’t find any buyers for this house…
I can’t finish a half-marathon…
I can’t… I can’t… I can’t…

Think for a minute what you are telling your subconscious… “you might as well not even try because we already know we can’t succeed anyway…”

Last night I was watching one of my “guilty pleasure” shows on TV… you know, the ones you’d never admit to your friends that you watch? Well, here’s my confession.  Tim & I watch “Merlin”  It’s the story of Merlin as a youngster, and King Arthur before he becomes King, and Camelot… (my FAVORITE movie about Arthur and Camelot is still Monty Python’s Holy Grail, but “Merlin” is pretty good too!).  Anyway, last night Arthur was poisoned and Merlin went to talk to the Dragon and said:

   “I can’t save his life!”  and the Dragon quickly replied “You don’t know HOW to
    save his life!”

This reminded me of a quote I’ve heard several times in the past…

“There is no such thing as can’t, only won’t or don’t know how to”

If you re-read the statements above and apply this idea to each of them, do you see how it changes the perspective?  If you WANTED to come to the party, you’d make it happen.  I know you WANT to find a buyer for your house, so it must be that you don’t know how… I used to think that I couldn’t do a half-marathon, but with the right training and support, I finished on my first try!

Every day we hear stories about people that have overcome seemingly unsurmountable odds to accomplish something BIG.  This morning I read about a man that swam the entire length of the Amazon River, even got attacked by piranha once! (that would fall under my “don’t want to” category!).

You may know that my friend Than Merrill was the guest speaker at my real estate investment meeting last week.  Than is a former NFL football player (Bears & Bucs) and is the star of A&E’s “Flip this House”.  I wanted to share an email that he sent a few weeks ago.  It really got my attention when I read it, and then he talked about the same thing last week here in Orlando.

What a Super Bowl Winning Coach told me… and why I live with regret. (by Than)

“There is nothing worse than not living up to your potential.”
- Tony Dungy

The first time I spoke with Tony Dungy this is what he told me. At the
time I was a 7th round draft pick who was fighting for a roster spot.
The sad part is…I didn’t believe him.

10 years later I look back on that team, which went on to win a Super Bowl
the next year without me, and wonder what if?

What if…I had been willing to take more risks as a player?

What if…I had just been willing to sacrifice just a little more?

In business, like athletics, most people play it safe. Most people choose
to live a life of mediocrity instead of abundance, mainly because
they let fear control their lives.

Fear limits people…

Please don’t end up asking yourself these questions years from now…

What if I had just spent a little more time investing in myself?
What if I had just applied myself a little more?
What if I had just had enough confidence in myself to follow through?

Thanks for reading!  If this message helps just ONE person today, then I’ve done my job!

Andy

To Comment on this article, please go to ActiveRain by Clicking HERE

I Got Lucky… Again! (Don’t Tell Tim!)

Posted: Wednesday, August 12th, 2009
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I have a short sale listing in one of those communities that has very strict guidelines on what color/size/etc. your sign panel needs to be, so I had to order a new sign panel.  The sign company took so long getting it ready that I had the house pending already by the time they had it done!  My office picked it up, and I noticed they had not drilled holes to hang it with, so I had to go BACK to the sign store and get holes drilled.  When I told them I didn’t even need the sign any more because I already have the house sold, the girl said “Boy, aren’t you lucky!” to which I replied… “luck had nothing to do with it!” 

I did a good job for my seller.  I want the credit for that.  I don’t want to chalk it up to some cosmic force that my listing went under contract!  Mr. Luck doesn’t diligently follow up on the short sale every week.  Mr. Luck didn’t spend 2 hours pulling comps to come up with a true market value in a market that has undeterminable values.  Mr. Luck didn’t spend hours on the phone with the client answering all of their questions about the short sale process.  And I don’t remember Mr. Luck taking the time to upload the property to all of the different websites that I market on.

Take the credit that you deserve!!!  When a customer tells you that you did a great job for them, don’t say “Oh, it’s nothing…”  say: “Why Thank you for noticing!”  and next time someone says you must be lucky, politely say “luck had nothing to do with it”

We work very hard for our customers.  We go to trainings to be better at what we do.  We take pride in a job well done and I KNOW you feel great when a family sits at the closing table with a huge smile on their face because YOU helped them with their home.  Take the credit you deserve… we don’t get enough “atta-boy’s” any more in today’s society, so sometimes we have to give them to ourselves!

I love to do Sudoku puzzles, where you fill in the numbers from 1-9… anyways, I think they keep my mind sharp and they’re fun (and sometimes frustrating!)  In my Sudoku puzzle book I’m currently working on, I realized one day that the completed pages represented a TON of brain cells all working together to solve a problem (much like our real estate business these days!) but then I realized that skill was going unrecognized and unrewarded… so now every time I finish a puzzle, I write some kind of Atta-Girl across the top, thinks like:

Yaaayyyyy!
Yippee!
Woo-Hoo!
Fastest One Ever!

And a H-U-G-E smile comes across my face as I write it.

So the next time someone in your office has a closing, stick a note in their box or on the bulletin board congratulating them for a job well done… and if nobody does that for you… write yourself a note and stick it on your computer monitor!

See you next week!

Andy

Watch what you say…Twitter user sued for $50,000 in real estate libel suit.

Posted: Wednesday, July 29th, 2009
1 Comment

$357 per character.  That’s $50,000 divided by the 140 characters that Twitter.com allows in a tweet.
Amanda Bonnen is being sued by Horizon Realty Group in Chicago over a tweet that she posted about living in a moldy apartment.

Here’s my one piece of advice.  Don’t put it on your twitter, Facebook, MySpace, or any other page if you wouldn’t want it in public records or used against you in a court case.  Even if you go back and remove it later, there are still archives.  In this case, in reading her other posts on the archive, she sounds like someone that just needs to complain about everything, and even if her gripe IS true, she’ll be made out to the jury and judge as a troublemaker that can’t ever be satisfied.

Be careful what you tweet, it may just come back and peck you!

Here’s the first article

Here’s the second article 

Comment on this post by clicking here.  If you’re not on ActiveRain yet, you can join by clicking Here

Social Media: Fans, Tweeps and tinyurl’s

Posted: Wednesday, July 22nd, 2009
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I’ve really become quite fascinated with “Social Networking” and I’ve been learning everything I possibly can.  I think I’m going to schedule a webinar for you to show you some of the great (and free) ways to use these tools to grow your business, but today I just wanted to give you a quick crash-course/to-do list so you’re ready before the webinar.

First: Go to twitter.com and register, preferably with your name.  That way your link will be www.twitter.com/yourname.  Upload your picture, put the link back to your page, write a short 1 sentence bio. that’s it.  you’re done.  Now go find some of your friends and colleagues that are already on twitter and start following them.  Ok, that’s it for twitter right now.

Second:  Go to facebook.com and register, preferably with your name.  Upload your picture and fill out the bio information that you want.  Right off the bat, you might want to join some “groups” such as your college alumni association, or your local Realtor association.  Search for friends and colleagues that are already on facebook and invite them to be your friend.  You can also send a friend invitation to people NOT already on facebook, but be careful, if you invite your whole contacts list and someone replies to facebook that they don’t know you, you might be banned or your account restricted (by the way, thanks to whoever said that they didn’t know me after I invited them!)

Third: Go to YouTube.com and register.  You’ll see why later. For now, just do it.

And of course, if you haven’t done so already, go to ActiveRain right now and join.  This is a social network JUST for the real estate industry.  It also has tools to reach the consumer, so just Click Here right now and register.
More to follow on what to DO with all of these places!

FHA Purchase Updates… and mistakes we’re still seeing on contracts

Posted: Thursday, July 9th, 2009
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It’s been about a year since I shared some of the FHA changes with you, and there have been more changes, so I figured I’d update you! (and Tim still keeps seeing contracts come across with errors…)

*3.5% down payment.  Can come from savings, gift from a relative, employer or union, or a grant from a non-profit. There is talk of some new programs that will advance loan them the $8,000 tax rebate, however it is not clear whether it will be allowed to count towards the 3.5% down. It will also be a very short window to use it before 12/01/09.

*”Seller Gift Charities” are still NOT OK for now.  This is where the seller “gifts” 4% to a charity which in turn “grants”  3% to your buyer (Nehemiah, etc.)

*Who pays closing costs is now completely negotiable between buyer and seller except the $75-100 tax service that must be paid by seller (this is addressed in the FHA/VA Addendum to contract, see below)

*Property is no longer scrutinized under a microscope.  Major health and safety issues will need to be repaired, but most cosmetic and minor issues will be ok to close, usually boils down to what the appraiser puts on the appraisal.

*Appraisals are NOT covered under the new HVCC appraisal system… your loan officer will be able to order their own appraisal (with some lender exceptions)

*No more mandatory well, septic, and flat roof inspections (but underwriter can require it)

*They’ve made the 203k Rehab loan easier to work with, so your buyer can roll repairs into their purchase loan. (ask your loan officer about the 203k “streamline” where you don’t need the engineer reports and inspections, up to $35,000, no structural repairs allowed)

*FHA has no minimum credit score requirement; however most lenders are requiring a 620 or higher. No score is OK too (must build alternate credit)
*2 years out of bankruptcy, 3 years out of foreclosure (exceptions in rare circumstances)

*Loan limits: Standard is $271,050

Central FL = $353,750
Sarasota = 442,500
St Lucie = 375,000
Tampa area = 292,500
Jacksonville = 387,500
Melbourne = 291,250
Complete list can be found at: www.Hud.gov
*Condos MAY be spot approved as long as it is under 50% rental occupied.

And here’s a few tips to make your FHA offers and contracts fly through the process:

*Make sure your buyer is pre-approved before you start showing them homes.  Your lender should be able to run them through the automated underwriting system and get an answer within 15 minutes.  This will make sure you’re not wasting your time or your client’s and your loan officer will also be able to tell you if you need to ask for the seller to pay closing costs  and how much.

*When asking for closing costs, you can either ask for a percentage (ex. “up to x% of purchase price”) or a flat amount.  Make sure you word it correctly to cover closing costs AND/OR prepaid items otherwise your client might not get full credit.  By the way, 6% is the maximum seller contribution. 
Here’s a sample that you can use:
     Seller to contribute $4,000 towards buyers closing costs and/or prepaid items.

*Have the clients AND YOU sign the FHA/VA addendum right up front (there’s a place on it for both the listing agent and the selling agent to sign and date).  There are many different versions of the form floating around, the correct one should have 2 sections:

 1)  FHA Amendatory Clause:
A section that says the appraisal must come in at least at the purchase price (fill in the blank with the purchase price)

 2)  Real Estate Certification:
“Certification” that all parties certify that this is the true and correct contract.

It is estimated that 35% or more of all loans closed this year will be FHA, so it is absolutely CRITICAL that you know how to handle them as a real estate professional.
 
To comment on this article on my ActiveRain Blog, Click Here but if you’re not a member of ActiveRain yet, Click Here First

By the way, I am scheduling for classes in the Summer and Fall, so if you would like me to come to your area, just pass my contact info along to your Realtor Association.  Thanks for all of the support you’ve given me!

See ya later!
 
Andy Tolbert
Compass Publishing

She’s Just Lucky…That’s Why She Has So Many Closings…

Posted: Wednesday, July 1st, 2009
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Do you believe that’s actually what someone said about me?!?!?

I couldn’t believe my ears when I heard that, I started laughing uncontrollably!

I see 3 different types of agents in the field right now…

First: those that sit around and hope something happens
Second: those that go out and make something happen, and
Third: those that wonder what just happened!

Let me explain my self, and I’m actually going to lump 1 and 3 together.  This morning I was at a closing at a “Traditional” real estate office, and since I was running a little early, I sat in the lobby and “observed” the activity.  You know those little vacuum robots that go in a straight line until they hit a wall or furniture and then they change direction until they hit something else? Well, one guy reminded me of that, except with WAY less energy!  He was just walking around the office, probably waiting on the magical phone call that was going to change his life (or at least his Tuesday morning!).  A few others were milling around, some with cell phones to their heads, and a few looked like they were actually doing something important.  It actually reminded me of the person that made the comment that I am “Lucky” who just sits around the office waiting for the phone to ring.  He once asked me how I got so much business and I quickly answered: “do you ever see me sitting in the office waiting on the phone to ring?” Which brings me to number 2:

Let me explain the “luck” involved in these 3 closings:

#1: was a short sale where every time I turned around the buyer was talking about walking away… this would be the same buyer that I actually found but then all of a sudden had a “buyers agent” who wanted 3%.  But that’s OK, the deal was what was best for the seller, so I made it happen.

#2 was a short sale with Countrywide/B of A that I’ve been working on since about January, need I say more? (there is NO luck in drawing a Cwide/BofA shortsale deal, unless you believe in BAD luck!)

#3 was a transaction where I represented the buyers, a friend from college and his new, pregnant wife.  I guess it was lucky that I negotiated for the seller to install a new roof based on the home inspection, and lucky that I could call in a favor from my roofer to get it done, and lucky that it took the seller a week to sign the NOC so we could get the permit, and lucky that I’m a notary so I could drive across town and get the release signed, and lucky that I was able to track down the buyer at the Altamonte Mall because the title company forgot to have them sign something and we couldn’t get the funding number

#4 (hey, someone as lucky as me has more than just 3 things going on!) I got a new listing in Casselberry (nice waterfront condo) from an out of town seller that I’ve been conversing with for about 4 months (lucky I was able to stay in touch until he was ready to list his mom’s condo!)

#5 Got another short sale listing under contract today… lucky my sellers were smart enough to know what documents I would need for the submission, and finally

#6 & 7: Lucky enough to be open on Thursday to set 2 more appointments to meet with sellers about listing their short sales

By the way, out of these 7, 6 were referrals from my sphere of influence, and one was someone I overheard talking about short selling their house at Sonny’s BBQ and handed a business card to.  I sure am lucky that so many people trust me enough to refer their friends to!

So which one are you?  Are you sitting around the office waiting for the phone to ring and when someone in your office has some closings you say they’re just “lucky”? Or are you out at networking groups, Chambers, real estate investment associations, and even Sonny’s BBQ, beating the bush for your next deal?

I can’t wait until the 4th of July when Tim & I will be volunteering for the Sanford Rotary at the fireworks in downtown Sanford.  I’ll be working my tail off all day in the Beer Booth (stop by and say Hi!) to help raise money for Rotary, and maybe if I’m lucky, someone will notice my REALTOR pin on my shirt and will ask me about real estate!

To comment on this article on my ActiveRain Blog, Click Here but if you’re not a member of ActiveRain yet, Click Here First

2 cool resources I just found

Posted: Tuesday, June 16th, 2009
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I’ll keep this short and sweet today…

I’ve been coming across several resources that I’m going to be using in my business, so I thought I’d share some of them with you!

Today’s 2 are:

FIRST:  A link to a self-analysis of whether you have “Chinese Drywall” in your home.  It asks several yes or no questions and also has good pictures of “normal” and “problem” systems.  (this would be a good link to send out to your farm list)  CLICK HERE

SECOND: By now, I KNOW you’ve heard of loan modifications, and you’ve probably been approached about doing them as a business, the problem with that is most of these companies charge THOUSANDS of dollars in fees, AND they are very controversial (whether they’re legal or not, they probably soon won’t be!)  Obama AND the Florida Attorney General are telling consumers: “if you have to pay, walk away” and telling homeowners to do their own modifications.  Great!  Do you know anyone that’s tried to do their own?  One friend of mine was offered by their lender to take the $8,000 in delinquency and they’d make it a balloon payment due in September.  WOWZA!  That’s generous!  (if he doesn’t have the money now, what makes them think he’ll have it in a few months?).  I told him to go back to them, tell them that’s unacceptable, and ask “what’s my next option?”

Here’s a good solution where you can make a little bit of money and help your friends and clients with their modifications, totally hands off!  There’s a company that has written a “How To” guide to doing your own modification.  It sells for $199 but there’s a $20 discount for online purchasing, so it’s only $179.  If you refer a client, they’ll give you $50 of it.  That’s it!  No work, just send the ordering link to the client and it’s done!  (also, if you refer 3 clients, you’ll get the kit free, and if your clients refer other clients, you still get a little commission too!).  It costs nothing to sign up to be an affiliate, so what do you have to lose?  I’ve already signed up and started attending their training webinars (they have webinars both for reps AND training for people doing their own modifications)  CLICK HERE for the site, and the promo code is R201738 (they’re also going to be doing a live 3 hour training in Altamonte Springs in July… it’s $199 and includes the manual/kit)

Andy

p.s.  Tim’s being given an amazing award tonight by his Rotary group… he doesn’t know it yet, and it’s the highest honor his chapter gives to a member.  In other Rotary groups, people that donate a certain amount of money are given the Paul Harris Fellowship Award, but in the Sanford Lunch Rotary, the group votes and awards it to a member and pays their donation for them.  I might even wear a skirt for the occasion! (don’t tell anyone).  As you read this, we’re probably just starting “cocktail hour” and mingling.  If you want to congratulate him, his email is: Tim@TimTolbert.com

p.p.s.  Follow me on Twitter… www.Twitter.com/andytolbert … I DO know why, and I’ll be sharing it with you soon!

102% Financing with no monthly MI? 620 min score? Does your listing qualify?

Posted: Wednesday, June 10th, 2009
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I know, I know, that sounds like a headline from the crazy boom days, but it’s real and has been for a long time.  It’s been called Rural Housing and USDA financing (when I see USDA I think of a big t-bone steak!).

But don’t be fooled by it’s “rural” name… there are many beautiful subdivisions that qualify!

Eric in my husband’s mortgage office just closed a beautiful townhouse overlooking a golf course and IT went USDA financing!

Here’s the quick skinny:  620 minimum score, no monthly MI (but there is up front “guarantee fee” of 2% that can be rolled into the loan), they’ll actually finance up to 102% of APRAISED value (not purchase price) so it could actually be the purchase price plus all closing costs if the deal is structured right!

Interest rates are just a smidge higher than an FHA rate, but without that pesky MI or 3.5% down!

Imagine getting your client into a house for nothing down AND they get $8,000 back!  Whew!

Many MLS systems have a “financing available” field, so check if the property is eligible and then update your listing!

Here’s where to check:  USDA Property Eligibility Link If the property is listed as eligible, you’re good to go!

In fact, go check all of your listings right now and start marketing the eligible ones with 102% financing!  I’ve even seen it marketed on 1/2 million dollar loans! (there is no official “loan limit” but the borrower needs to be UNDER a certain income level… so it would be hard for someone to qualify in this instance)

But don’t be discouraged… the income limits are much higher than you might expect!
Talk to a knowledgeable mortgage broker right away. (In Florida you can call my husband Tim or Eric in his office at 407-831-2277)

Hope that helps!

Andy

To comment on this article on my ActiveRain Blog, Click Here but if you’re not a member of ActiveRain yet, Click Here First

What’s Loan Product Got To Do With ShortSales and Loan Mods?

Posted: Wednesday, June 3rd, 2009
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Quite a bit, actually.  Loan product can refer to several things, FHA, VA, Fannie, Subprime, Adjustable Rate, Negative Am, credit line, etc.

Each loan product has specific guidelines as to what can be done for shortsales and loan modificatons.  Make this a standard question that you ask your clients when you first meet (and then confirm the info… I recently had a client tell me his loan was VA, but when I called the VA office, they said it was not).  Once you know some details, it will better guide you in the options your client has.

FIRST AND FOREMOST:  If your customer wants to keep their house, AND financially they are able to do so now (or could with a small interest rate reduction) then talk to them about a modification… yes, you will not get your 3% commission, but you will get them in the future and EVERYONE they know as a referral because you helped them out of a problem.

I say small rate reduction because it needs to be within reason.  If your seller has a $3,000/month payment, it’s not likely that the lender is going to reduce their payment to $600 (although that would be nice!).  The biggest success in modifications is where the current loan is an ARM and the lender can convert it to a fixed rate, although I am now seeing many fixed rates get reduced too (often these are just for a 5 year period).

DO NOT let your customer agree to a payment arrangement that they can’t fulfill!  One of my clients recently came in to Tim’s office and said his lender was going to lower his payment by $100 for 6 months and at the end of 6 months he would have to pay $8,000 in a single payment to make up for what he is past due!  Come on, if he was having a hard time with the monthly payments, where’s he going to come up with $8,000 in a few months?  All that type of arrangement is doing is delaying the inevitable… if your seller can’t comply with the terms, they shouldn’t agree to it to start with. (by the way, after leaving our conversation, he called his lender back, told them that was unacceptable and they are now working on a real modification for him).

Now, on to short sales… if your client cannot afford the home any longer or needs to leave the area, then short sale is their next best option (yes, better than a deed in lieu as far as future credit goes).
Knowing the loan product can help you in several ways:

1st, if it is a Fannie Mae loan, your commissions will not be cut below 6%.  Yayyy!  They MAY even approve higher, give it a try!  It’s nice to know that you’re not going to do 10 times the work for less pay.  This also allows you to prepare a HUD that you know is somewher close to reality. (to find out if it is a Fannie Mae loan, go to the Fannie Mae Loan Lookup Site)

2nd, if it is an FHA or VA loan, the loss mitigation guidelines are posted on FHA and VA’s websites… not a big secret! (actually, so are most of FannieMaes, it’s called the Seller-Servicer Guide… go on, google it!)

3rd, just KNOWING this info will make both your seller AND the other real estate agent have w-a-y more confidence in your ability and knowledge level.  One of the challenges with short sales is that EVERYONE is an expert, even those who have never closed a single one!  It actually creates animosity between agents when one is clueless about the process yet pretends to know what they’re doing.

Right now I hear a lot of agents complaining that REO’s are hard to break into because you have to have experience before you can get listings and the only way to get experience is to work for someone already doing them… I think this would be a great model for shortsales!  You have to apprentice under an experienced short sale agent for at least 5 transactions before you’re allowed to take one as a listing yourself.  What do you think?

Today I’ve just been able to scratch the surface, but don’t worry, there’s more to come!
Andy

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Does your attitude determine your success? You Bet! (Revisited)

Posted: Wednesday, May 27th, 2009
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(This week’s article is a reprint of one that I wrote back in June of 2007.  I thought it was very relevant for what’s happening in our market and why some agents are succeeding and others are failing.  Hope you don’t mind the reprint… I’m studying for my brokers state exam tomorrow at 8am!)

This week we are going to discuss how your attitude determines your success, this takes shape in many different ways, but today we’re going to cover one of the more critical ones:

Self Talk:  If a five year old child heard every day “you’re stupid, you’re worthless, you’re never going to amount to anything” do you think that would hurt their chances of being a successful adult?  Of Course!  So why do we do it to ourselves every single day?  When someone makes a mistake they say “I’m so stupid” or when their business is not going well “I’m never going to be successful, I shouldn’t have even tried”  they are setting themselves up for failure just like that 5 year old.  Can you imaging if every day that 5 year old heard “You’re so smart, you’re going to be very successful when you grow up, the world is lucky to have you”  Do you imagine that child might turn out a little differently?  Certainly!  What are you telling yourself every day?  The next time you make a mistake, say “Hmmmm, that’s interesting, what can I learn from that?  or better yet, the next time you catch yourself doing something right, celebrate it!  Say “Wow, I’m a genius!  The world is lucky to have me!” and see how your outlook changes.

Exercise:  For one week, celebrate everything that goes GREAT in your life, whether it’s a big commission check, getting a great parking spot at the mall, having a good hair day, or seeing a beautiful sunset.  Celebrate It!  At the end of the week I think you will notice a difference and will continue to celebrate the successes forever!

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Yet Another Countrywide Short Sale Fiasco… You’ll Laugh… You’ll Cry…

Posted: Thursday, May 21st, 2009
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I know, I really shouldn’t let it get to me, but this one just takes the cake!  I’m running out of room for notes for all the times I’ve called them on this one…  These are NOT all of the notes, but it will give you a rough idea… my favorites are the ones in the last 2 weeks.

Now, before you read on, please realize how I take notes… I write the info down in my log with a date, person’s name, and details of their comments, THEN I repeat back to them my notes like this: “so if I understand correctly, you said that…” and double check my notes, dates, and comments.  Enjoy!

12/2/08: submitted FULL financial package and offer to Countrywide.  (BPO’s were ordered on 12/2, 12/9, and 2/9 that I know of…)

12/30/08: Mary Fleming assigned as negotiator, could be another 30 days for answer…

3/6/09: Still no answer on short sale (yes, we’re over 90 days). Buyer walks.
     However “Angel” assures me that as soon as I have a new buyer it won’t go ALL the way to the beginning… just back to the phase one.

3/11/09: Got new offer, $20,000 HIGHER, submitted all docs for new offer. I am told that a negotiator will be assigned within 5 days.

3/24/09: 2 appraisals came back.

4/17/09: (yes, that’s over 35 days later!) assigned to Mary Fleming. (YAYYY!  She was so speedy the last time!)

Here’s where it REALLY gets fun:

5/4/09:  “Catherine” tells me that Mary Fleming is a 3rd level negotiator and we should have an answer by Friday the 8th, suggests I call EVERY day for status update, payoff demand has already been ordered, she tells me.  Yayy!, of course, I update the buyer’s agent.

5/8/09: (oops, forgot to write her name down!) no updates in computer, she’ll request an “escalation”, meaning Mary Fleming will only have 5-7 business days to respond.

5/11/09: “Anthony” tells me that Mary Fleming is reviewing the file with management.  But Mary is NOT a phase 3 negotiator, don’t know why someone would have told you that, she’s a phase 2 negotiator.  Should have an answer within 5 biz days.

5/18/09: (too mad to ask her name…) Don’t know why they would have told you that… Mary is a phase 1 negotiator, and there’s no such thing as “escalation”

Today (5/20/09):  Had to do it.  As I was sitting here typing this, I figured I’d call again, just for laughs (guess I’m a glutton for punishment).  Ready for this?  she said phase 1 should have only been 15 days!  And we absolutely should have escalated it.  She read some of the past comments in her computer and SHE said she wonders what planet they’re on!  She’s escalating it, she’s sending an email to Mary Fleming, she also gave me Mary’s direct number AND Mary’s manager’s name AND direct phone number.  Holy Camoly!

Why do we do this again? someone please remind me…

p.s.  wanna hear the kicker?  This same seller has another property, also with Countrywide, same exact floorplan, same exact subdivision.  Lost my buyer on that one around the same time as this one.  Got a new buyer the same day as this one.  Also over $20,000 higher the 2nd time.  Submitted the full file to Countrywide the exact same day.  Know What?  That one I got approval on last week.  This one? still stuck in phase 1!  Happy Day!

Gotta Go!  Have to send an email to Mary and her boss!

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WDYT about GenY @TEOTD?

Posted: Wednesday, May 13th, 2009
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Last week I was able to attend a VERY interesting presentation put on by Jeremy Conaway from Recon Intelligence at our board office.

He shared some of the major factors and differences between the Baby Boomers, the Gen-X’ers (that’s me! Yayy!) and the Gen-Y’ers.

WOW!!! I had no idea!  I often talk about how every successful business person needs to be on top of trends and market changes and go with the times, but this presentation made me stop and realize that in many ways, I’M behind the times!

It’s not about ME or what I want, it’s about the CUSTOMER and what THEY want! ( I know that, I teach it, but I realized that I was guilty of it:  I am not a “texter” but more and more of my clients are, and I actually caught myself telling a client “I don’t text, just call me or email me!” ((luckily a long-time friend as well, so he cut me some slack)) HOLY COW!  How can I be so blind?  I guess it’s time to get with the times and start TXT-ing.   (If you’ve had any problems reading any of this, go to www.NetLingo.com)

Here’s some statistics he shared with the group (yayy! Stats!)

Baby Boomers, currently aged 44-65, there are 81 million of them, and most have lost their entire nest-egg recently

Gen X, currently aged 32-44, there are 47 million of them

Gen Y, currently aged 18-32, there are 79 million of them.  Yes, 79 million.

What do we know?  A lot, they are the most researched group in recent history.  They are the most powerful group right now.  They pretty much single-handedly just elected a president.  They are also “Green”.  The X & Y are collectively called the “Net Generation” and they will basically control our market from here on out.

They want certain things from you and your company in a transaction:

Simplicity.  Have Realtors made the process complicated to justify their fees?

Innovation.  The opposite of innovation?  GEEZER!

Speed. (guess they’ve never tried to do a short sale!)

Relationships.  Self, Family/Friends, colleagues and neighbors, citizens/markets

Entertainment.  Make the process FUN and enjoyable!

Collaboration.  Old way: we’re all against each other.  New way: how can we work together and help everyone more?

Transparency.  If we have ALL the facts we can make a better decision

Integrity.  Old way: “OK, you got me this time, but I’ll get you back next time”

Scrutiny.  No secrets anymore… they have the ability to research EVERYTHING

Customization.  Old way: this is how we do it. Period.  New way: let’s see what we can do to make it fit for you better

Freedom.  1/3 of the Gen Y will remain renters because they have more Freedom.

Community Service.  Tell them what you do for your community to make it a better place.  And they want you to DO something, not write a check!

If you want to be competitive in this emerging market, it is critical that you look at these 12 items and see how you can integrate them into your business right away.

Jeremy pointed out that so many agents are just trying to stay afloat right now that they’re not paying attention to the major market shift and when the market returns to “normal” we will all be left wondering what happened to “normal” because we will never be able to go back to the “old ways” of transacting business.

Hope some of these items opened your eyes to what the new market wants and expects from us, I know I’m making some changes already (TXT!)

CUL8R

Andy
 
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Would YOU Answer This Job Posting Ad?

Posted: Wednesday, May 6th, 2009
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Professional wanted.  Must be good with numbers, excellent with people, and willing to work long hours on a straight commission basis.
 
As a bonus, you will be required to allow the State licensing bureau to pull your credit report, and if it’s not clean for the last 3 years, your license will be denied and/or revoked.  Said credit report will also be made a part of the public records of the State in order to give every identity thief in the world easy access to it.
 
Also, you will be working in an industry that now has a lower public opinion rating than used car dealers.
 
Once you have located a prospect, you will submit your deal to one of the few sources remaining and your file will go in a queue to be handled in order of receipt, often 30 days or more, by which time you will have multiple parties (usually the buyer, seller, and both of their real estate agents) yelling at you daily to hurry up.
 
In the end, the short sale on the property will be denied and/or the property will go to auction, or something will have changed in the buyer’s credit file, or the lender will have eliminated the program you were submitting the file under, all resulting in the same thing.  Nothing.  After months of working the file, it will be placed in your turn-down file and you will not receive any commission for your work.
 
So, what do you think?  Wanna be a mortgage broker? The Florida House and Senate passed a bill (SB 2226)  that is going to make this scenario an absolute reality at the end of this year.  First estimates were that 50-75% of all mortgage brokers would be out of the business because of the 3 year clean credit requirement (how many Realtors could pass that right now? Or better yet, how many politicians?) but now even the ones with GOOD credit might opt out of the business because they don’t want their credit reports made public record! 
 
The only place that will be left to get a mortgage loan will be… the big banks!  The ones that started all of this mess in the first place…got Zillions of dollars in bailout money… paid their people BIG bonuses… and now they will 100% get every bit of the mortgage market as their punishment.  When a monopoly is created, costs to the consumer go up.  Period.
 
By the way, mortgage brokers account for something like 75% of all originations.  That means they do all the work, package the file, and all the lender/bank has to do is approve it.  Without mortgage brokers, all of those other steps will have to be now handled by the lenders that are already short staffed (tried to do a short sale lately?) and not set up to handle those types of tasks.
 
Just my rant for the day!
 
p.s.  As a Realtor, you SHOULD care about the future of the mortgage industry.  Did you ever get a client referral from a mortgage broker? That would be gone!  Remember when big banks tried to get into real estate?  They’re not going to refer clients to you…they’re going to try to figure out a way to bring it in house for their own benefit!

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A Real Estate Lesson - Something Out Of The Ordinary? Report It!

Posted: Wednesday, April 29th, 2009
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I love real estate… without it I couldn’t come up with all of these crazy stories that I like to share with you! (nope…it’s all real!  I couldn’t make it up!)

Yesterday my husband Tim & I went out and previewed 16 houses for the Blue Jeans Rehab Bus Trip that starts Friday evening, and in the garage of one of the Bank Owned/REO properties, we stepped into the garage and here was a stripped our car! (that’s me giving the listing agent the VIN number so she could call the police)
This car was completely stripped out: steering column busted, radio gone, NoS system gone (nitrous oxide…makes it go really fast!) obviously the wheels, and all of the interior panels were ripped out and they even slashed the seats up!

I immediately called the listing agent and asked if she KNEW there was a car in the garage and of course, she said no.  The crazy thing is that she said the house had been shown several times and nobody else even mentioned the car!  She reported it to the police and had to meet them out there to let them in (Tim & I didn’t stick around… to much to do! although we were curious. Oh well.  But we DID tell the listing agent to tell them that we did NOT touch anything!)

I’m going to turn this into a real estate lesson, of course

If you are EVER in any house and see ANYTHING that looks out of the ordinary, report it to the listing agent IMMEDIATELY.  Don’t wait, just pick up the phone and dial it now.  We’ve seen:  Dogs tied up in the back yard of an abandoned house with no food or water (we called Animal control on those… we’ve seen it more than once), fire sprinkler heads in condos covered up with paper cups and tin-foil, evidence of “squatters” and drug use, and now, stolen cars (sorry, ALLEGED stolen cars…)

If it was your listing, you would probably want to be informed, wouldn’t you?  do the same for the listing agent on the houses you look at… we all need to help each other out!

I’m Leaking a Secret Internal Title Company Memo…

Posted: Wednesday, April 22nd, 2009
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Secret Internal Title Company Memo about Short Sales!

One of my friends at a title company forwarded this to me this week.  It’s an internal memo from their title underwriter about (more!) pitfalls of shortsales and what title companies are being warned about in short sales.  Just wanted you to know!

RE: Short Sales
Dear Associates:  
 
Approvals and/or instructions given by a lender for a “short sale” may include unacceptable instructions that make the transaction uninsurable. The following are examples of unacceptable conditions: 

°  “There are to be no transfers of property within 30 days of the closing of this transaction.  Escrow instructions must contain a clause that if such a transaction takes place then the title/escrow company must notify Lender.”  
Problem: A title company closing a short sale would not know if the property was transferred again within 30 days after the short sale. 

°  “If the property was acquired by any means of fraud, Lender reserves the right to pursue any and all actions available to it to offset its losses.  If it is determined that Seller(s) and/or Buyer(s) participated in any way to the fraud, this short sale will be void, and the Note and Security Instrument will remain in full force and effect.” 

Problem: This condition may make the short sale voidable. 

°  “Lender requires full disclosure which includes all details of the transaction on both the Seller and Buyer side of the HUD1.  If Lender finds full disclosure was not made at the time of the approval, the approval becomes null and void.” 

Problem: This condition may make the short sale voidable. 

Read short sale approvals and instructions meticulously.  Do not sign or accept instructions that contain any of the above, or similar, provisions if you are issuing a Stewart Title policy, unless the instructions are revised to remove the objectionable provisions.
If you have questions relating to this bulletin, please contact (name removed) Legal Services or your local underwriting personnel.

What’s the *#&@%$ Problem with BPO’s?

Posted: Tuesday, April 14th, 2009
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Seriously?

Sometimes I wonder if the people doing BPO’s even know how to work the MLS!!! (well, a lot of them don’t, but we’ll talk about that in a second!)

Let’s start by going over why the BPO is so critical in your short sale deal, and I don’t care whether you represent the Buyer or the Seller, this is good info to know.  The 2 agents in these deals really should work together to get these short sale deals closed because we all know it is the best option for our market, our seller, and our buyer.  Actually, maybe you don’t know that, so I’ll cover that next week!  But for now, just go with me!

The BPO is this magical figure that your ENTIRE deal is based around.  The loss mitigator calculates ALL of their formulas around the BPO value and will approve or deny your offer based on it.  Most lenders have a set percentage of the BPO value that they are allowed to take, and anything under that will have to go to a different approval process.  For example, if the BPO comes in at $100,000 and the lender is authorized to take 85% of BPO value, then as long as your NET offer is over $85,000, you will be approved!  That also means that if the person that does the BPO brings it in at $120,000, the offer would need to be at least $102,000.  See the difference that the BPO makes to a deal?

Now here’s the problem with the entire BPO system boiled down to a simple statement:

You want the BPO to come in LOW and the Lender wants it to come in HIGH!

Now do you see the problem?  The lender hires the person that does the BPO.  The person that does the BPO has a carrot dangled in front of them that if they bring it in nice and high to make the lender think they can get more money for the house than the short sale offer is for, maybe they’ll get the listing when it’s an REO!

Back in the 90’s when I was a brand new licensee and new NOTHING, my broker came to me and said “do you want to do this BPO for me?  You just pull some comps, drive over and take a picture, and they’ll pay you $75 and bring it in nice and high and sometimes you’ll get the listing after it forecloses!” …….   Woo-Hooo!  $75 bucks!  I’m IN!   (see the problem?)

Let’s go over some of the challenges with the current BPO system:

BPO stands for BROKER PRICE OPINION, so maybe it should be done by a broker?!?! Or under the direct supervision of a broker, by a licensed agent, and signed off by the broker, kind of like how appraisers do it when they need a second signature.  Last year I met an “agent” at one of my listings for a BPO and found out that the agent didn’t even come out himself…he sent an out-of-work roofer to the property to take pictures and inspect the property!  There are several problems with this: first, I’m sure the lender didn’t know that it was an unlicensed person doing their work for them, second, if I hadn’t met him there, he probably was using the agents MLS key (which probably violates some rule somewhere!), and third (in this particular case) the home was a nice 2-story block home in a neighborhood of small frame homes and mobile homes.  Now any AGENT knows that this affects the value, but an out-of-work roofer who just comes in, takes pictures, and leaves, doesn’t understand this (and since the pictures look ok, the agent doing the BPO report would bring the value in too high).  Luckily, I always attend my BPO’s so I can counteract things like this and I gave him a 5 minute lecture about how the value is lower because of the neighborhood and I made him drive through the neighborhood as he left to see it in all of its glory!

They don’t pay $75 any more!  They expect the agent to do all of this work, drive to the property, take all of the photos, spend hours doing the back research to come up with a valid value?  Yeah, Right!  To survive on $40-50 per report, you have to do a TON of them, which means you do them as quick as you can and you’re not as diligent on coming up with a real value.  There’s a reason appraisers charge $300+ for an appraisal…they’re a lot of work!

If it’s a Fannie Mae loan, they’re not supposed to use BPO’s anyway!  The Fannie Mae Seller Servicer Guide states that they’re supposed to have an APPRAISAL done!

BPO Agents seem to live on another planet when it comes to values!  I’m fighting with one right now that’s come in at a $280,000 BPO when I’ve had 3 of the exact same floorplan in the same subdivision that I’ve had listed for over 6 months WELL below the $280 mark (last listing price was $239,900, and of course most properties are under contract less than list price!)  Here’s the first thought that comes to Bad Andy’s mind:  IF IT WAS WORTH 280, I WOULD HAVE SOLD IT FOR 280, AND IF YOU THAT AGENT THINKS IT IS WORTH 280 THEN I WILL GLADLY GIVE THEM THE LISTING…LET’S SEE HOW THEY DO WITH IT!

So Please, Please, Please, if you are doing BPO’s, please, realize that you hold the entire deal in your hands.  If it’s been listed for a certain price for several months, it’s probably NOT worth more than that!
Next week I’ll tell you why short sales are better for our seller, our buyer, us, and the market as a whole!

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Short Sales May Still Owe Income Taxes!

Posted: Thursday, April 9th, 2009
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This is a topic that I hear over and over every time I’m meeting with agents and investors, and it is a big misconception that the tax law changed and ALL short sales don’t have to pay taxes. That is absolutely NOT true! I have reprinted this article (with a little more in-depth explanation for you, so even if you already read it, please take a minute to read it again) and I will probably re-print it every quarter until we’re out of this mess! Please feel free to forward it to the other agents in your office, title companies, mortgage companies, everyone that you feel might benefit!  (This is also part of what will be covered at the seminar next week)

On December 20th, 2007, then President Bush signed into law a measure that will change the tax effects for a homeowner in foreclosure. These are critical changes that may change your client’s outlook on a deal.

In a nutshell: If a homeowner who was in foreclosure worked out a short sale agreement with their lender, the amount of debt that the lender “wrote off” is considered as ordinary income to the seller. That means if you negotiated a $50,000 reduction in the payoff to help get the property sold, that seller would have to claim that $50,000 as taxable income on their tax returns (resulting in a potential tax bill between $7,500 and $17,500).

Some sellers decided NOT to sell on a short sale for this very reason…but that’s where this new law comes in!

It makes that “income” from written off debt NOT TAXABLE to the seller under certain circumstances! Here’s some key points:

- Only applies to their principal residence, not 2nd home/vacation/rentals/speculation. So many of our clients that are in an upside-down situation on non-owner occupied properties may still owe income tax.

- Effective for debts discharged between Jan 1, 2007 and Dec. 31, 2012 (was just extended, it was 2009)

- It applies to debt for acquisition, construction, or substantial improvement to the property. This means that if someone had refinanced and taken cash out or paid debts off, then the forgiven debt WILL be taxable. Think about it…they DID get cash out of the property that they never paid taxes on…..now they will have to.

- Forgiveness is limited to $2,000,000 (I think we’re OK there!)

- The amount of forgiven debt will be reduced from the sellers basis in the house. Most sellers will still be able to sell with no capital gains bill as long as they’ve lived in the house for at least 2 years, but people in their homes less than 2 years may still have a surprise! And for investment properties, they will either pay long or short term capital gains based on how long they held the investment.

Please remember, I am NOT an accountant, and I am not giving you or your clients legal or accounting advice, and neither should you! Anytime you have a client that asks you about the tax ramifications of ANY deal, refer them back to their CPA or attorney for advice.
To read more on the IRS website, Click Here

My Rambling Business Notes from Sidney Biddle Barrows, the “Mayflower Madam”

Posted: Wednesday, April 1st, 2009
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Last week I had the opportunity to hear Ms. Barrows speak on sales and business success.  Like I said in my last email, one summer when I was 12 or 13, her book was one of the only books I could find in English while overseas, so I read it.  Maybe that’s what gave me the entrepreneurial spark at such a young age!  But, back to my notes…she squeezed a 90 minute presentation into about 45 minutes, so she was talking very fast and I was writing to keep up, so I hope these notes make sense to you!  (I’ve condensed, edited, and cleaned them up a little!)

You must build “the customer experience.”  Since most companies don’t provide ANY, so if you do ANYTHING, you’re better!

What is your USP (unique selling proposition)? Why should they do business with you instead of your competition?
How do YOU KNOW what’s the best experience for YOUR customer?

When she first started getting asked to do consulting work for businesses, she had NO CLUE, so she ASKED them: what are your challenges? what do you need help on?  (she had Fresh Eyes on their business, I have often consulted with agents on why their listings aren’t selling based on this same concept!)

Have a “Blueprint” for you biz/customer experience (advertising, decor, staff, etc.) then everyone can follow it just like a builder uses blueprints.

1. What biz are you in? example: NOT dentistry, Yes: attract a mate, get a job, feel younger, etc.  (often others can see this better than you)

2. ask WHY are my customers buying?  the emotional reasons - be in the business THEY want you to be in.  if you don’t know what they’re coming to you for, you can’t build an experience around it!

3. develop you “story” or plot (you are now in the “mental movie” business

4. start developing your “script”? everything they hear about you, see in advertising, experience in the office, etc… What movie are they seeing NOW?

5. compare and contrast: what movie the client wants vs. what you have playing now

6. compare and contrast: what movie you have now vs. what you want to be playing

     A. opening credits:  advertising - catchy name, does your ad attract what you want? ask for the next step, informative enough?

     B. 1st point of contact: voicemail hell vs. live answer (think about when YOU call a biz, do you like automated?)  does your website load fast? to the hotlinks work? answer emails promptly.  Face to face: greet at office, have an intake procedure (think of a doctors office).  do you make it easy to do biz with you?  have a good sales presentation (sell the BENEFITS, not the features!) (give an outline/highlight script to your phone people)

     C. visual impression: EVERYTHING they see: ad, bags, employees, displays, packaging, etc. must all support the movie you’re playing (example: upscale, discount, “green”, family friendly)

     D. (i missed this point somewhere in my notes…it was probably the billion $ secret!)

     E.  choreography - psychological OR physical - influence (manipulate) the client’s perception of your biz.  ex: do you want to be on the mailing list? NO!  do you want to be on the VIP list?

     F.  repeat biz & referrals: example: after plastic surgery-send bouquet of flowers show appreciation.

find out from your customers what they don’t like about your industry?  then form your story around it
I asked specifically what people in the mortgage and real estate industry could do… she said that since there’s so many horror stories (mostly unfounded!) but it’s absolutely critical to MAKE CLIENTS FEEL SAFE WORKING WITH YOU!

Hope that you like some of the ideas… ignore the industry she was in (unless you’re looking for a new career!) and look at how you can apply these ideas for YOUR business!

Personal History With The Mayflower Madam? (No, It’s NOT That!)

Posted: Friday, March 27th, 2009
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Wednesday I’m going to a luncheon at the Heathrow Country Club in Lake Mary to hear Sydney Biddle Barrows, better known as the “Mayflower Madam”, share some of her strategies about sales and marketing.

Now, before you go off the deep end, think about not what industry she was in (escort service) but rather the amazing business she was able to build with absolutely ZERO advertising! (she couldn’t exactly take out a TV ad now could she?) Many real estate professionals are working on VERY limited budgets right now, so I’ve decided that I’ll take good notes and share a few of her highlights with you in the next email.

Want to hear my personal history with the Mayflower Madam? (no, it’s NOT that!) When I was a kid, my sister and I would spend summers in Switzerland with a family friend. They lived in a little farming community that had: 1 bar/restaurant, 1 bakery, a post office, and 1 little general store (like a 7-11) That’s it! I worked in the bar serving beer & wine and got to keep my tips!

Anyway, when I was young I was a voracious reader, and I quickly went through all of the books I had brought with me. We went in to town one day and I found 2 used books in English (just 2, that’s it!) One was the Mayflower Madam’s biography and the other was David Niven’s biography (he was a famous actor back in his day, and I’ll tell you, he was NOT saint!) So those were the two books I read that summer, I was probably 11 or 12 at the time. No wonder I’m not “normal” these days, eh?

I don’t have that old ratty used paperback anymore… but if I get a chance I’ll tell Sydney my story!

What Advice Would You Give…

Posted: Tuesday, March 17th, 2009
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I’ve been asked to speak at a conference next week for about 100 college juniors and seniors that hold leadership roles in their sorority.  They’ve asked me to speak about what they can do to succeed in today’s tough job market besides just getting their degree.
 
I’ve really been thinking about this a lot.  What a big difference I might be able to make in these young ladies’ futures!  It’s an awesome responsibility that I’ve agreed to bear. 
 
I think I’ve come up with a few things to focus on…see if you agree with me and please, forward me any other ideas you have.
 
When I first graduated college (we won’t mention the year!) we were in the middle of bad economic times as well.  Florida’s unemployment rate hit 8.2% and over half of the employers didn’t show up to the campus job fair.  I know what it’s like.  I know it’s been many years since I’ve been “in the job market”, however, I think after all of these years in the real world, I know a little bit about what it takes to be successful.
 
You’ve got to set yourself apart from the rest of the thousands of college graduates that are looking for a job.  I personally would rather hire a B or C student that was very active in extracurricular activities than a straight A bookworm that has no knowledge outside of the classroom.  Here’s some things that I personally would like to see on a resume:

~If you worked while a student, was it in your desired field and what skills and responsibilities did you take on? (as opposed to flipping burgers, or if you flipped burgers, how did you do your job better than anyone else and what extra duties did you do?)

~What clubs and associations were you active in and what leadership roles did you hold?  Everyone always thinks that President is the best position to hold, but when you’re looking for a job, that just tells me you were popular and had a lot of friends, it doesn’t tell me how capable you are.  I’d rather hire the vice president that usually does all of the work, the treasurer that watches the budgets, the membership chair that’s a great recruiter, or the secretary responsible for keeping it all straight.  (Although if I’m hiring a sales person, I’m probably going to look at the president, they sure can talk their way into things!)

~Did you make the most of your elective credit choices?  I’ve always thought that the “underwater basket weaving” type classes are a complete waste of your time and money, but if you are well rounded by picking up things like public speaking, a foreign language, or even a sport (I took Volleyball I & II) you will make a more balanced employee.

~What specific skills did you need or gain in the positions you held?  And how will those help my company?  For example, I didn’t know how great it would be on my resume at the time, but my senior year I was editor of the Panhellenic Recruitment Magazine.  The entire magazine was a giant sales pitch for joining the Greek system, and I was responsible for: recruiting and selecting my “staff”, coordinating photo shoots, selling advertisements to help with the budget, negotiating with printers, and working with the design staff on the layout.  How’s that for “real-world” training?

~What were you active in OFF campus?  Church, Charities, Chamber of Commerce? (wow, that’s a bunch of C’s!)  That shows that little bit of extra “drive” that I want from my employees.
The next thing I’m going to suggest is that you do whatever it takes to get your foot in the door.  And once it’s in there, make yourself invaluable to the company.  I first took a part-time job at a store at the mall and showed them what I could do and then quickly moved up.  No, it was not my dream job by far, but hey, I had to pay the bills!
 
How can you make yourself invaluable once you’re in there?  Well, keep this in mind:  If money’s tight and I need to lay someone off, will it be the person that COSTS me money or MAKES me money?  Exactly!  So do whatever you can to MAKE your company more money.  That means help bring in new clients, even if that’s not your job description!  Any employee at any level in any company can always do a part in increasing revenue, whether it’s “selling” your product at every opportunity with your friends or researching some potential new clients for your boss.  The other way to help put a dollar figure on your value to the company is to keep your eyes out on a way to cut costs for the company.  One place I worked had an employee make a small suggested change and she saved the company over $250,000 per year on overnight mail.  She has made herself valuable to the company.
 
Another way to make yourself invaluable is to learn all of the systems and be able to perform multiple jobs within the company, it’s called Cross-Training.  If you are able to cover different positions and run different programs, you will be less likely to be laid off.
 
The third thing I want to suggest is that you learn whatever you can about selling skills and communication skills.  These are probably the two most critical things that you can do in ANY field you want to go into.  As you become a better communicator you will quickly see how it will get you where you want to be, not only in your career, but in your personal life as well.  (by the way, one of my favorite books on this subject is “Instant Rapport” by Michael Brooks.  It’s about $10 at the bookstore and at Amazon.com)
 
I know many of you will argue that you’re not going into “sales” so you don’t need selling skills, but you will quickly discover that EVERYTHING in life is sales… dating and interviewing you are selling yourself, want to take the lead on a new project at work? Better sell your boss on the fact that you can handle the responsibility!  Want your husband or kids to do the dishes?  Yep, that’s selling too… see what I’m getting at?  Even if you’re not IN sales, you’re IN sales.
 
And of course, I’m going to talk about the joys of entrepreneurship (can’t help it, that’s who I am!)
 
I would like to give the ladies a handout with some of my key points, and I want to share some of your golden tips with them as well.  Please send me a 1 or 2 sentence piece of advice that you would give to someone graduating in the next year and going out in the real world.  I will put all of our golden tidbits on a handout for them to keep as inspiration.  See the p.p.s. below for the link to my AR blog page, leave your comments there, and then I will give the ladies the link to go read them there!
 
Thanks for reading today, it’s kind of a long one, but I’m really excited about it!
       
p.s.  If you read all the way down to here, I hope you noticed quite a few things that you can implement in YOUR career too!

p.p.s.  To leave a comment on this post, go to my ActiveRain page.
 

More Market Updates…some good, some not so good!

Posted: Wednesday, March 4th, 2009
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I’m sure by now you’ve realized that the market changes on a daily basis.  Since my husband is in the mortgage industry, I get to hear about many of these things before the “general” real estate public, so I want to share with you when I hear things that might change the way you do business…here’s a two that have happened over the last few weeks.

1.  FHA has announced revised loan limits for the remainder of 2009 (this is probably GOOD news for most of you!).  These loan limits apply to people who are credit approved during ‘09.  That means that it could potentially close in early ‘10, but the process would have to be started in ‘09.  You can go to www.Hud.gov and find the information.

2.  Got Condos?  Sorry!  If you’ve been in the business for a while, you remember the days when you couldn’t GIVE a condo away…well, they’re back!  Many parts of Florida are bombarded with vacant condos on the market and here’s the kicker…even if you find a buyer for it, they probably won’t be able to get a loan!  Many lenders have now just announced a blanket policy of “We don’t lend on condos.  Period.”  So even if you have a condo that DOES meet FHA/VA or Fannie approval guidelines for the community, good luck finding a lender!

Tip: for starters, think long and hard before taking a listing of a condo…if you can’t get it sold, the seller will be mad at YOU.  One thing you can do is look in public records to see what’s sold in the last few months in your association and see what lender financed them and then see if they’re still financing currently.  The only other option is to talk to your seller about owner financing or lease/optioning the property.

Stay tuned for more updates!

Andy
p.s.  To leave a comment on this post, go to my ActiveRain page.
 

5 Crazy Things That May Be Making Your House “Un-Buyable”

Posted: Wednesday, February 25th, 2009
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In my recent adventures working with several buyers looking for homes, I have seen a few things that have been a little offensive, disturbing (to both me and my buyers) and even a little scary!

Whether you are a listing agent or a seller, there are several little things you can do to make your house look better than the thousands of others that are undoubtedly for sale in your city.

#1  Excorcise the “Pet Cemetary” in the back yard.  Yep, seriously.  I showed a foreclosure the other day and in the back yard is a little wooden cross with a name on it.  My buyer did not feel comfortable with that AT ALL.  She liked the house enough that she has gone to contract on it anyway, but she still asks what she’s supposed to do about the “grave.”  I hope you realize that some people would have seen that, and based on their personal beliefs, not purchased that home.  Period.  Tip:  Talk to the seller about removing.  (I just thought of something!  I hope is was a pet, and not the ex-husband!)

#2  Your home should be inviting and friendly, but NOT “420 Friendly”  Last year someone responded to one of my Craigslist postings for a rental and asked if we were “420 Friendly” and since I didn’t know what that meant, I Googled it.  It means is ok with Marijuana Smokers in the house.  Last week I went to meet with a potential listing, and in one of the teenager’s rooms painted in black high gloss paint were the numbers 420 on the wall.  I don’t know if the father knows what that means or not, but I told him it needs to go (as well as all of the pictures of girls in g-strings hanging on the wall.

#3  Don’t make us feel uncomfortable if you’ll be home during a showing.  A few weeks ago we had an appointment to see a house and I had been told that the parent and child were home sick (but it was ok to show).  When I knocked on the door, nobody answered, so I thought they had gone out to leave the home empty for us.  When I came in I even called out “Hello!  Anybody Home?” and there was no answer.  We walked all around the downstairs and the back yard and then when we went upstairs, we heard someone moving around in one of the bedrooms that had the door closed and the hall bath had the door closed and the light and fan were obviously on.  We felt very uncomfortable and left quickly.  Tip:  If your seller will be home at a showing, coach them on how to act:  Answer the door politely and just tell the agent/buyer that you will be in the back yard/living room/whereever if they have any questions.

#4  Go Gators!!!! But not when selling your home.  Take down things like collegiate and pro team paraphernalia (what if your buyer is for the “Other” team?  we don’t want ANYTHING to turn them off of your home), Political references (same reason), and “stuffed animals” like deer heads on the wall and mounted fish (some people are highly offended by these items, not me, but I’m not willing to risk a sale over it!).  Tip:  When I list a property, I walk through the house and point out everything that I would like to see packed away.  I explain to the seller my reasoning behind it, and they are usually just fine with the idea once explained.

One listing I previewed for my clients via photos in the MLS has a bonus room (converted garage) that the photo had every inch of the walls with beer signs and other posters and a pool table in the middle of the room.  Hanging over the pool table was:  a taxidermy shark with a skull in it’s mouth and a rebel flag on the ceiling.  I don’t know of anybody that would look at that picture and say “Honey, let’s go look at that one…it really looks nice!”

#5  What’s that smell?  2 weeks ago we had an appointment to show a property and the sellers were leaving the home before we got there.  When I walked in I was slapped in the face with the strongest perfume smell in the world.  Not air-freshener, PERFUME!  I think the seller had walked around the house and sprayed perfume right before they left.  Great!  I know you want your home to smell good, but remember, many people are allergic or sensitive to perfumes!  They can’t look at your house if their eyes are watering and they have to leave the house to sneeze!  Tip:  Coach your sellers.  Vanilla seems to be a fragrance that smells good and most people are not affected by.  My favorite is the plug-ins or the oil-plug ins in the vanilla fragrance.

Hopefully you read these 5 tips and say “Duhhhh” but obviously there are at least 5 realtors out there that need to read this (and maybe you have someone you’d like to forward it to!)
 

Dan Kennedy’s “Phenomenon”

Posted: Sunday, February 22nd, 2009
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How to accomplish more in the next 12 months than you have in the last 12 years…

Pretty strong title, eh?  If you don’t know who Dan Kennedy is, than I strongly suggest you go look him up.  He’s an absolute marketing genius, and he’s written several books and authors a great monthly newsletter with tips and techniques to help grow your business.

Following are some highlights from a recent visit Dan made to Central Florida.

“Everyone gets good & bad bounces…if you’re playing the whole game waiting on the good bounce, you’re not really playing the game very well, are you?” (sounds a lot like our industry, doesn’t it?  for many years we only had “good bounces” and even an idiot could make money, but now that the market has thrown us some “bad bounces” we’re seeing only the good players able to succeed in the current real estate game)

Module 1:  Foundations.  You must model what others are successfully doing.  You must move fast, and don’t wait!  Even if your store burns down, you can still market for when it reopens!  And your resourcefulness is more important that your resources (when someone says no, don’t take no for an answer, ask how CAN you get it done?)

Module 2: Triggers.  You must have a sound means of making money and be ready to change if what you’re doing is not working.  Make sure you are “making deposits” in both your present bank and your future bank (this means to plan and invest in the/your future through education and building your skills and business AND work on today’s income needs).  You should always have multiple streams of income…max of 20-25% should come from any one stream.  How you behave is most important…go implement now.  START NOW!

Module 3:  Marketing.  Marketing is the root of everything you do.  Do it fast and do it well.  Expansion (fast) vs. Growth (slow).  Systems vs. Random Acts (which do you have?).  And: Direct Response Marketing is the ultimate competitive advantage to the user.

Module 4: Liberation.  Break free from the work/money link.  Stop trading hours for dollars and figure out how to leverage your time.  Outsource what can be outsourced.  Labor vs. Leverage.  Break free from the price/product link.  Price is governed by WHO is buying and selling and how it is sold, NOT just what is sold.  Give people a “deluxe” or upgraded option, they will take it 20% of the time.

I know these notes may not make total sense to you (although if you’ve been reading my emails for any length of time, it probably looks a little familiar!)  Go back and read it again, very slowly, and see if it sinks in the second time.

To sum up, ask yourself 3 questions:

1)  Where are you at now?
2)  Where do you want to get to?
3)  What’s it worth to you?

If you can find out these 3 answers from your clients… you can sell to them every time!

Happy Marketing!
 

WE HAD THE BEST DAY OF FISHING TIM HAS EVER SEEN OVER THERE!

Posted: Sunday, February 15th, 2009
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This past Sunday, my husband Tim had a guided Redfishing charter all set up to go with his buddy, David, over in Mosquito Lagoon in Volusia County.

On Friday, David started hinting that he may back out. Saturday at about 8pm he backed out, with some lame excuses like:

- I talked to some other people and they said the fishing hasn’t been good
- It’s too cold
- The water’s too shallow
- We won’t catch anything
- Yada, Yada, Yada….

Tim called a few friends, but they all already had plans. We didn’t want to back out of a commitment that Tim h
We got on a school of 300 fish and they would bite at anything you threw in front of them! Captain Joe Porcelli even put a piece of grapefruit peel on his hook and caught  a fish on the 2nd cast! It was crazy! We had caught our limit of Red Fish within the first hour (and I caught a big Trout too!) and then just kept having fun.

There were a few other boats around us that weren’t catching ANYTHING! One was  a metal-hulled boat that anchored the wrong way and the waves kept beating against their bow making a deep bass-drum sound every time that was probably scaring the fish away!

We even came up with a new slogan for Captain Joe… “We Make Your Lies Come True!” (since everyone always lies about how big the fish was or the one that got away…with him you don’t have to lie!)

So as I sit here with my face burning (yes, you can get a sunburn in February.), I was thinking about how much this experience has been like the real estate market lately:

-David had “heard” that it was bad, so he decided not to go. Just like if you’re hanging around with negative people talking bad about the real estate market, you may decide that the market is bad.

-The other boats around us must have been doing something wrong…they were sitting right on the same 300+ school, but not hooking up! Was it the wrong bait? The wrong tools? Maybe they weren’t using the right reeling techniques. Sound like the real estate market? Agents everywhere are whining about how business is down, no buyers, can’t get anything closed, Whaaaa-Whaaaa-Whaaaa!

They’re sitting on top of a HUGE school of buyers and sellers, including REO’s, short sales, investors, and a bunch of 1st time home buyers. Maybe they’re even scaring away clients with their attitudes!

Why is it that some agents (myself included) are already having their best year ever and others are wondering when they’ll ever see a commission check again! If you’re not closing what you want to be closing then you’re either using the wrong bait, the wrong technique, you’re in the wrong spot, you’re on the wrong kind of boat, or you’ve got the wrong Guide!

David missed probably the best day of fishing he ever would have had in his life because he “heard” it was bad. Don’t let that same thing happen in your business…

Andy

p.s. Once you pull that first fish in, it’s like a rush…you want more! Just like the feeling of your first commission check you ever got… if it’s been a while since you’ve had a closing, put your bait back in the water and see what it’s like!

p.p.s. If you want to reach Captain Joe and catch some reds for yourself, you can get his info here (and see some pictures!)

http://www.cyberangler.com/fishing-reports/florida/mosquito-lagoon/long-14500.htm

Top 7 Million Dollar Ideas to Turn Your Blog into an ATM Machine!

Posted: Wednesday, January 21st, 2009
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If you’re not already writing a blog, it may be time to consider it… if you already are, you may be running out of topics right about now, so here’s some tips to kick around.  Remember, you are aiming your blog at CONSUMERS, so think about what a consumer considering buying or selling a home in your farm area would be interested in.

1.  Write compelling headlines, or they’ll never read any further.  Did my headline for this article get your attention?  I hope so!  Think of how you read the newspaper (if you do!) or how you scan your email subject lines.  If the headline doesn’t get your attention, you don’t have time to read it.  You’ve got to capture them QUICKLY!  Here’s an example:

New Farmer’s Market Opens in “Your City” 
            vs.
Where I found the freshest, cheapest, best selection of produce I’ve ever seen, right here in  “Your City”

Which one makes you want to read the rest of the story?  Try a catchy headline on your next Blog!

2.  Show some personality!  It takes a very special type of person to be in our industry.  We have to be outgoing, love people (for the most part!), and in today’s market, have a great sense of humor!  Remember the old saying, “People do business with people they like”?  To create a relationship through a blog, you’ll need to share some of your personality and your personal life (but not too much!)  Look at how I squeeze in little bits about my doggies, my husband, and even the Gators!  Your readers will like the fact that you have humorous things happen in your everyday life too!

3.  Try to mix your blog up with a little bit of real estate stuff and a little bit of community stuff.  If you write a lot about your community and events, your readers will not understand if you know REAL ESTATE or not.  If you write about ALL real estate stuff, people will never get to see your personality.

4.  Talk about charities, special events, and happenings, but talk about them from EXPERIENCE!  Volunteer to work on the events and invite your readers down to meet you in person at the “such & such” booth on Saturday afternoon.  You will be promoting a worthwhile cause AND inviting them to meet you in person (and solidify your relationship!)  Clue:  I’ve mentioned such things as the Sanford 4th of July festivities…come see me at the Budweiser Booth by the main concert stage!

5.  Network while you research for your blog.  When you go to a new restaurant,  don’t just sit, eat, and leave.  Introduce  yourself to the proprietor and explain that you’re a local real estate specialist and you often review local businesses for your community blog.   You are NOT fishing for free food!  I want you to get to know the manager and your wait staff (remember, they could be potential clients!).  Then when you write your blog about it, it will be way more interesting, like: 

     “When Tim & I recently ate at the new L’ Frenchie Restaurant, we had the opportunity to chat with the owner, Pierre, who grew up in the Champagne Valley of France.  In fact, his first job was dusting off bottles in the “Caves” of Mumm’s Champagne!  When we asked him where he got his inspiration for the menu, he said that they are all old family recipes that have been passed down through the generations and now he wants to share them with “your city”
Now doesn’t that sound like an interesting place to go eat?  By the way, when you write your blog, be sure to forward a link to Pierre to read!  In fact, bring him a printed copy!  Maybe he’ll hang it on the wall as his first “review” (and when he needs real estate help, who do you think he’s going to think of first!)

6.  Write a few blog posts and keep them “in the can” for a rainy day.  No matter how prolific of a writer you are, you will have a time where you are too busy, too tired, or sometimes just forget!  Notice I tell people I send my newletter “somewhere around Tuesday of every week” and 95% of the time I’m on it…  if you have a few generic (meaning not time sensitive) blog posts then you can keep them and post on short notice if you don’t have anything to write. (And no, today’s was not “in the can”  I’m sitting here at 9:47 pm writing and watching Tim play Wii Tennis!)

7.  Anytime you are going to use numbers in your headline, like the “Top 7 Million $ Ideas to Turn Your Blog into an ATM Machine” it is best to use odd numbers (3,5,7,9, etc.)  Don’t ask me why, but marketers have done studies and odd numbers catch your attention the best!  Exception to the rule:  Top 10 lists are always good!

8.  Give more than you promised, such as item number #8 and #9 on this list!
9.  Have a CTA (Call to Action).  Unless you are INSANE, you are not doing all of this writing for the fun of it!  You want to get some business too!  End each blog post with a CTA such as:  Call me today to find out what your house is worth! and ALWAYS have your contact info in EVERY blog.

Thanks for reading today!

Andy

P.S.  To thank Andy monetarily for her awesome and motivational writings each week, just shove a bunch of money in an envelope and send it to her at PO Box 952674, Lake Mary FL 32795.  (there’s my CTA.  Hey, It works for those “put all your gold jewelry in an envelope and mail it to us and we’ll send you a check” people!  I figured I’d give it a shot!)

Should You Have An Alter-Ego?

Posted: Thursday, January 15th, 2009
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Tim and I got a Wii for ourselves right after the holidays.  We also got a Wii Fit.  It is a whole ton of fun and you actually do get a pretty good workout on the Fit (and you find out exactly how un-coordinated you are!).
 
If you’ve never played Wii, here’s the overview:  It is a video game system that actually interacts with your body movements.  So to play tennis, you need to swing the controller just like you would swing a racquet.  Doesn’t that sound like fun?  Anyway, when you first set it up, you build a “Mii” which is an avatar of yourself.  So I set up “Andy” who is dark blonde with big blue eyes and a big smile.  Sound familiar? (by the way, you can name them anything you want, and even pick their favorite color.  Andy’s is purple, so she’s usually in a purple shirt).  Now Andy tries to play sports, and she loves playing, but she’s not all that good, in fact, Tim-Mii knocked her out in boxing!  Well, after a few days of getting beaten in every sport (even Hula-Hoop!!!) I decided it was time to take massive action.
 
Introducing…Bad Andy.  Bad Andy is my new Mii.  She kicks butt.  She has black hair, big pointy glasses (like from back in the 50’s like a cats-eye), wears black all the time (to intimidate her opponent), and she is GREAT at every sport.  In fact, last night Bad Andy challenged Tim-Mii to a game of NCAA College Football.  She even let Tim-Mii be the Gators!  And guess what, She Won!  Not only did she win, but she Skunked Him (that means he got Zero points!). 
 
Now why is it that just by changing my Mii to a kick-butt, no excuses, take-no-prisoners attitude avatar, I can also play the sports better?
 
Hmmmmmmm.
 
What if we took that same experience and flipped it over to our careers?
 
What if every day we woke up and said “I’m Best Realtor ___ ” and faced the day with that attitude.  When I’m playing Wii, I continually psych myself up by taunting Tim-Mii with things like “Look out, Bad-Andy’s gonna shut you down”  and “Bad-Andy’s the best skier, you don’t stand a chance!” 
 
How ’bout “Look out short-sale lender, you’re dealing with Best Realtor/Negotiator Matt , so you might as well just sign off on my deal right now!” or maybe “You might as well just list it with me, I’m going to sell it anyway!” 
 
Who do you think would be more likely to get the listing…Best Realtor Andy who thinks she’s going to get it, or…
 
Meek/Broke/Desperate Realtor Bob who goes in thinking “They’re going to hate me.  They’re going to know that I’ve never listed a property before…if I don’t get this listing I’m going to have to get a J-O-B… man, maybe I should just cancel the appointment.”
 
Many people dream about being someone else.  There’s an entire web-world called “Second Life” where people set up avatars of who they wish they were but either physically can’t or are afraid to be in real life.  The internet has made it possible to be whoever you want to be.  In fact, there’s a cute country song out right now by Brad Paisley called “Online” that goes like this:
 
I work down at the Pizza Pit And I drive an old Hyundai
I still live with my mom and dad, I’m 5 foot 3 and overweight
I’m a scifi fanatic, A mild asthmatic…
But there’s whole ‘nother me That you need to see, Go checkout MySpace
‘Cause online I’m out in Hollywood, I’m 6 foot 5 and I look darn good
I drive a Maserati I’m a black-belt in karate
And I love a good glass of wine…
I’m so much cooler online.
 
(yes Ethan, I’m quoting country songs again!)
 
Tomorrow, you can make the decision who you will be.  Will you be Meek/Broke/Desperate Realtor Bob?  Or will you be Best Ever ___ in the history of the world?
 
I hope you choose well!

Cruddy and Useless: Mortgage Pre-Qual Letters and How to Spot Them!

Posted: Wednesday, January 7th, 2009
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There has always been a lot of incompetence in the mortgage business, but when the money was flowing it really didn’t matter because if you had a heartbeat you could get financed, so inexperienced mortgage brokers could still be successful.  But now that money has tightened up, you can’t risk your deals on a mortgage broker or an approval that is bogus.

This deal was kind of funny.  When the buyer’s agent submitted the offer, they included a very weak pre-qualification letter.  When I called the loan officer who’s name and number was at the bottom to ask for some clarification, they had disappeared!  POOF!  Gone. (Imagine that!)
I told the buyer’s agent and she said “Oh My!”  So today I get a different preapproval letter from a different company and broker.  This is what prompted our lesson for today.  So first, go take a look at the letter HERE.  (it is in .pdf format and you can print it or just look on the screen.  I have blacked out the client’s and company name and cut off their logo header and their signature at the bottom.  Nothing else has been changed)

Got it? Ok, here we go:

Right in the first paragraph is says:  1) he has been pre-approved then 2) this loan pre-qualification and 3) This is not a loan approval.  So which is it? Is he approved or not?  Then it goes on to say that “Loan approval is subject to completion of a mortgage application…   WHAT!?!?! I read that to say he hasn’t even made loan application yet!  I’m sure that’s not the case, but I’ve got to give this letter to the lender I’m trying to negotiate the short sale with…and that’s how THEY’RE going to interpret it!
Let me suggest what you SHOULD be seeing in a pre-approval letter.  I look for things like:

“Mr. Smith has made loan application with our company and we have received a preliminary approval from automated underwriting.  This approval is subject to verifications and full underwriter approval and is subject to change”  or something loosely resembling that.  It will also usually list things like: satisfactory appraisal, title, seller contribution of X%, etc.

Here’s the real scoop:  A good loan officer can take a full 1003 loan application (pronounced “ten-oh-three”) in 5-10 minutes.  It then takes all of about 5-10 minutes OR LESS to run it through automated underwriting system.  So from first contact, a good loan officer can have a REAL approval letter to you in 10-20 minutes.  There.  Now you know the truth.  This includes FHA and VA loans.
The other thing that I didn’t like in this letter was the 4th bullet point: “LTV 97% financing and buyer will need 3% in down payment assistance from seller”.  Two things jump out at me. 

1.  As of 1/1/09, FHA loans are now 3.5% down, so the LTV would be 96.5%, UNLESS the case number was assigned prior to 12/31/08, which if it was already assigned, I would probably have received an APPROVAL not a pre-qual.

2.  There has been no such thing as “down payment assistance from the seller” since October first of last year when programs such as Nehemiah and Ameridream were squashed by FHA guideline changes.  Did they really mean to say 3% closing cost assistance?  Don’t know, but again, I have to provide this letter to my negotiator, so it must be very clear that the buyers are qualified or my short sale will get de-railed.

These things SCREAM inexperience to me.  I wrote a few months ago about the importance of having an experienced FHA lender doing your deals, and this is just further proof.  A broker with 10 years experience costs your borrower about the same as someone with 10 hours experience, so please be careful who you’re referring your buyers to.

Hope you enjoyed today’s lesson!

Andy

2009 Power Planning For Real Estate Agents

Posted: Sunday, January 4th, 2009
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This is a tool that I’ve been using in my business for many years… I wanted to share it with you and hope it will bring you more success in 2009.

Click the link HERE to view.

Don’t “Slack Off” In Real Estate

Posted: Wednesday, December 17th, 2008
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What effect does “slacking off” at the end of the year have on your business? Well, if you’re not careful, it could be devastating!

I’ve mentioned this to some of you before, but I felt it was important enough to dedicate a whole “weekly tip” column to it…

Many entrepreneurs approach the last 60 or so days of the year with an attitude of “nobody will buy my product/service because of the holidays (obviously I am NOT talking to you if you are in retail!). And to that I say “Phooey!” Here’s why you should NOT slack off at the end of the year…

1. You’ll lose momentum! In your marketing, sales, networking, whatever it is you do in your business, you will lose your forward momentum if you let off…then come January you will realize you have to start ALL OVER AGAIN from scratch and it will be very depressing for you.

2. YES, people buy houses (and other stuff) in December…in fact, December has always been a pretty good month for me! Investors often want to either buy more by the end of the year or get rid of stuff by the end of the year, and they will be looking to you for help! If you slack off, your competition will get those deals and you will be left out in the cold. I know a Realtor that was doing floor time on Christmas Eve a few years back and someone walked into the office and said they needed a house before the end of the year. They were a cash buyer and this agent got the deal because they didn’t give up, even on December 24th.

3. Is your business set on auto-pilot so checks are coming in even if you’re not working? If so, then don’t shut down that machine…it’s a money maker! Does Bill Gates “close” Microsoft in November and December? NO! Because he has a machine to make money even if he’s not there.

IF YOUR BUSINESS IS NOT AT THIS AUTO-PILOT LEVEL: Then maybe these last few weeks of the year could be spent focusing on getting your systems down and implemented so that next year will be even better.
4. You’ll get depressed and down because you won’t feel like you’re accomplishing anything. If you INSIST on taking December off, why don’t you look into volunteering for a local charity for a few weeks…they could really use a hand and it will keep you busy and feeling productive.

5. Last One: A friend of mine, Chris Hurn, just made the Inc. 500 list and he said “There’s no way I could have gotten my company on Inc.’s list if I decided to slack off in the 4th quarter of each year…” so take a lesson from a very smart and successful young man and…

Get to Work!

Mortgage Stuff Every Realtor Better Know…Or Else!

Posted: Tuesday, December 9th, 2008
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OK, you know that I first got in the mortgage business in 1995, so I’ve been doing this for a while, but for the last few years I’ve focused more on the real estate side.  But my husband, Tim is very active in the industry, and since I share an office with him and Eric, I get to hear all of their ranting and raving about the silly things that Realtors do in connection with their deals.
 
So, I figured I’d share some of their pet peeves AND some tips to be more effective in your success: (and whoever you’re using for your loans, they’ll thank you for these tips too!)
 
First:  Unreadable contracts.  In the old days (before fax and email) agents had to run all over town or mail contracts all over the place to get everyone’s signature.  The result?  All signatures on the original contract, nice and neat and very readable.  Nowadays, they are faxed and emailed back and forth so many times that they are usually unreadable by the time they get to the lender.  Many underwriters are asking for cleaner/readable copies of the contract as an approval condition, so go ahead and work on getting it. (fax what you have to your lender to get started, but then work on getting a cleaner copy).
 
Second:  Incomplete contracts.  Most standard contracts at the bottom say “page __ of __”.  If it says there are 4 pages, your lender will need all 4 pages.  Also, they will need ALL addendums to the contract.  One of the ones that is usually missing is the FHA/VA addendum and the amendatory clause.  Such a large percentage of deals these days are FHA, it is probably better just to get it up front just in case.  Also, believe it or not, we often get over contracts with major information missing, such as the sellers name or the address!  Yeah, seriously!
 
Third:  Get your client PRE-APPROVED before showing them houses, otherwise you may be showing them properties that are WAY out of their league.  And once they’ve seen $300,000 houses, a $175,000 is going to look like a DUMP in comparison.  The other reason that this is so important is you will also know if you need to ask for seller paid closing costs and how much.  And yes, you CAN ask for closing costs to be paid even on short sales and REO properties!
 
Fourth:  When you get the pre-approval information from you lender, Stick To It!  One of the big variances we see right now is in the property taxes.  There are many properties that a buyer can pick up very inexpensively right now, but the property taxes are so exorbitant that they don’t qualify for that particular home.  Don’t just ask your lender what price range to shop in, also ask them what property tax figure they used in the pre-approval.
 
Fourth and a half:  Stick to the property type that the buyer was preapproved for, or run it by the mortgage lender.  If they were approved for a single family home, switching them over to a townhouse or condo could jeopardize their approval in 2 ways:  1) the HOA/Condo dues makes their payment higher and they now might not qualify and 2)  Townhouses and Condos are different underwriting guidelines with many lenders, especially if the Condo is not on the FHA/VA approved project list.  BIG difference in the approval here!
 
Next: Don’t put unrealistic closing dates on your contracts.  There is nothing more frustrating than getting over a contract that you only have 2 weeks to close and the property is a shortsale that isn’t even approved yet!  You will just end up with an unhappy client.
 
Along those lines…make sure you are very clear with the property condition with your lender.  If you are doing an FHA/VA contract on a property that needs work, it is most likely NOT going to pass the appraisal.  If your buyer is FHA, you have 2 choices:  1) find them a house that is in good condition (minor cosmetic stuff is ok, but missing kitchens, A/C units, etc. are most likely going to be a problem) or 2) use an FHA 203K streamline loan where some of the repair costs can be rolled into their loan (watch a future column for details on this loan program).  If it is a VA buyer, you have one choice:  find a house that is in good condition. 
 
Next week I’ll share with you how the new FHA guidelines will affect your buyer’s when they go into effect on January 1st (and some lenders are already implementing now!)

Why I’m RAISING the price significantly on a house that hasn’t sold for 445 days

Posted: Thursday, December 4th, 2008
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Why a perfectly good house didn’t sell, even after 445 days!

And call me CRAZY…I’m RAISING the price!

So did my headline get your attention? Good, it did it’s job. And it’s true. This week I got a listing that has been on the market for 445 days! Here’s a little background, I’ll try to keep it short. The sellers had a new home built and figured there would be no problem selling this one when the time came, but they didn’t count on the market tanking. Their agent just kept saying “it’s the price, we’ve got to lower it.” But nothing worked. They were complaining to their financial planner about how maintaining 2 house payments was getting a little old when he suggested they talk to me.

I chatted with them on the phone and did a little research into the comps and guess what I found? Mistakes! Mistakes and missed opportunities.

-First, it was listed as 2098 square foot when it is actually 2378, shorting them 290 foot (they weren’t counting the loft/bonus room/office) Do you realize that at $100/ft they were potentially losing $29,000!

-2nd, it was THE CHEAPEST house in the neighborhood at the time. If you see in MLS a house that’s 10-15% under market value, what’s the first thing that goes through your head? EXACTLY! Short sale and the agent’s too stupid to even know it or disclose it properly! If you have a good listing that is NOT a short sale, PUT IT IN YOUR DESCRIPTION! Not a Short Sale!

-Next, under financing available, it only said Cash or Conventional. Remember, all year long FHA has had increased loan limits and this house would have qualified for FHA financing, and most likely VA too, so any buyer’s agent that searched for houses eligible for FHA financing would have missed this one.

-4th, the loft can easily be converted to a 4th bedroom. I asked the sellers if that was a deal breaker, would they pay for the conversion and they said “absolutely” so my listing says that…

-Next, I did a walk through of the house and gave the sellers a “honey do” list that was just a bunch of minor things, but they looked bad to a buyer:

-take off the rusty screen doors on the sliding doors and store in the garage
-plug the holes in the concrete patio from the termite treatment 10 years ago
-repair the rotten wood around the bottom of the patio beams
-clean the windows in the cathedral ceilings and the top of the fan you could look down on from the loft
-take down the “dead fish” hanging on the wall in the office (it doesn’t bother me, I have a deer over my fireplace, but it may bother your buyer!)
-move the 2 computer desks out of the living room and put one in each secondary bedrooms
-and a few other minor cleaning things

I’m also going to go over and “stage” the home a little bit with some nice brightly colored towels, a welcome mat, some candles around the master garden tub.

Wow, this is going to be a great house to sell!

Here’s the best part, since we’re listing it at $289,900 and we already know he’s flexible, it looks like I have a seller willing to hold back a second mortgage to help a buyer get into the property! Cha-ching! Owner Financing Baby!

Oh, I almost forgot, after we discussed at length all of the different ideas I had and the ways I was going to market it, Mr. Seller said “Andy, I don’t want to offend you, but are you a “regular” Realtor? Because I’ve never heard of some of the stuff you’re talking about” And when I asked him why he left it listed for 445 days with an agent that wasn’t getting results, he answered honestly that he didn’t think it made any difference whether ABC realty’s sign was in the yard or XYZ’s, he thought we were all the same. At least until Brian referred him to me!

So if you have a buyer for an amazing house in Oviedo, the seller is willing to: Owner Finance, Lease Option/Lease Purchase, Hold a second mortgage , convert the loft to a 4th bedroom, pay closing costs, or even take much less for a qualified buyer that can close quickly, then call me right away.

If you don’t have a buyer for that, please take this for the helpful lesson it was meant to be and go review YOUR listings for mistakes and missed opportunities right now… (and if the agent that had the listing for 445 days is reading this, thank you, you’ve made my job easier!)

2 Stories to Share

Posted: Friday, November 28th, 2008
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The first is just a fun one…Tim & I went to a wedding on a Cruise Ship this weekend!  Our friend from college, Scott, got married to Kelly on the Carnival Legend.  Tim was his best man.  We all got on the boat, had lunch at the Lido buffet, the at 1pm we met in the Satchmo Lounge (that’s Louis Armstrong to non-jazzies) for the actual ceremony then went to Medusa’s Lair for the reception.  It was awesome!  Except at 3 they kicked us off so Scott and Kelly could go on their honeymoon!

My second story today is a little more serious.  Remember last week when I wrote in my Commandments that “Thou Shalt be Truthful, Even When It Hurts?”  Well, last week I followed my own advice.  Here’s what happened:  Last Sunday, I was supposed to meet a client at his house in Longwood while he was in town.  My Outlook somehow didn’t save the appointment (I’m sure I did something wrong!) so I forgot and missed it.  On Wednesday, the person that had referred the client saw me out at lunch and said “what happened with so-and-so?”  I had messed up…big time!  I called the client and apologized first, and then, instead of making up excuses and stories (which I was VERY tempted to do!)  I said:

“I dropped the ball.  I’m very sorry.  What can I do to make it right?”

You won’t believe what happened next…nothing!  He said it was ok, he understood, and we’re still going to most likely be working together! (if he likes my solutions for his property).  WoW!  We expect the worst and get all worked up and then BAM!  Nothing bad happens after all when we’re just honest and human.  In high school I had a neighbor that would ALWAYS tell lies, and eventually she would forget what she had told you and she would step all over her own story and you would catch her.  That’s just way too stressful for me to remember who I told what to…it’s easier to remember the truth.  And yes, as I was trying to build up the courage to call him to tell him what happened, the irony of the article I had just written the day before did sure hit me!

America’s Top 100 Growth Markets According to BizJournals.com

Posted: Tuesday, November 25th, 2008
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America’s Top 100 Growth Markets According to BizJournals.com - Florida has 4 in the Top 20!

I just finished reading an article about the top 100 growth markets in the USA, and I was pleasantly surprised to see Orlando as #14!  When McCain was running for President, he said “The fundamentals of our economy are good” and he got torn apart for that comment, however, I agree with him.

Our house prices are TOO LOW, our umemployment is TOO HIGH, and our consumer confidence SUCKS!  These are not based on reality and they are NOT right!  Our market fundamentals support much better, but it is America’s PERCEPTION of things that has gotten us to where we are now…we have BECOME the quintessential self fulfilling prophecy.

Now, I will share with you the article that backs that up with real numbers… expected growth rates in population, per capita income, and private sector employment.

Click Here to go to the Article and Report of the top 100 Growth Cities.

And promise me this… if you are excited about what it says as I am, please forward it to everyone you know!

Andy’s 10 Commandments of Closing the Sale

Posted: Tuesday, November 18th, 2008
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Super-Duper Tips from Andy…Part IV

If you’ve missed the first 3 installments, Click Here

#4: Thou Shalt be Truthful, Even When It Hurts.

Ok, we’ve all done it.  You messed up.  Maybe you missed a deadline, overestimated a value, or just forgot to call a customer back when you promised.  Many people try to make up some elaborate story so they don’t look so bad, but usually that story gets unraveled and you end up looking even worse.  Even though it is painful, tell the customer the truth.  They may be a little upset with you at first, but in the long run your reputation and their feelings will be the better for it.  To soften the blow, maybe you could start with something like this:

“Mr. Seller, I feel that in every relationship, honesty and trust are critical, so I really need to share something with you… (explain what happened), HOWEVER, here’s how I feel we can best fix this (share your solution).  I know I could have just avoided this or pretended it didn’t happen, but I respect you way too much for that, and it wouldn’t have been professional.

The other part of this is that we sometimes want to hide the truth from a client because we are afraid that it will hurt them somehow (example: “No, I don’t think the purple and orange kitchen cabinets will be a challenge to sell, I think they’re GREAT!).  The truth is, you are doing them a DIS-service by not being truthful in this situation.  I often will ask clients right up front:
“do you want me to be gentle or do you want to hear the truth” and most of them will say they want the truth.  Then later, when you have to spring something on them, you can start with “remember when I asked you…”

#3:  Thou Shalt BE the Truthful You.

Be yourself.  Be “real” and be yourself.  Don’t try to keep up with the Joneses, don’t take on a fake accent to sound cooler, don’t try to be what you’re not.

I would rather work with one client that likes me for the “real” me than 10 who think I’m something that I’m not.  But here’s the secret…the one’s that like you for the “real” you have friends that are just like them!  You will get referrals to more people that you’ll like and enjoy working with!

I am myself.  I show up to listing appointments and showing appointments in my Jeep that probably has a nice layer of mud thrown up the side and YES, I’m really wearing jeans, (unless it’s hot, then I might be in Shorts!).  I’m known for telling it just like it is with no sugar coating, sometimes that’s good, sometimes that’s bad, but that’s who I am.  Not everyone likes me for it, but hopefully they RESPECT me for it.

I think the country singer Toby Keith says it best in his song, “Love Me If You Can”

I’m a man of my convictions
Call me wrong, call me right
But I bring my better angels to every fight
You may not like where I’m goin’
But you sure know where I stand
Hate me if you want to
Love me if you can
See you next week with the next installment!

Super-Duper Tips from Andy…Part III

Posted: Friday, November 7th, 2008
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Andy’s 10 Commandments of Closing the Sale

If you’ve missed the first 2 installments, Click Here

#6: Thou Shalt Be a Shining Beacon For Our Industry

The general public is a little leary about the real estate market right now, and it is up to us to reassure them that it is STILL a great time to buy a house.  One of the ways we can do that is by staying on top of REAL market statistics, trends, and variances.

Today I went to a women’s networking group here in Orlando.  It is not a real estate group, just a general topic group.  One of the ladies saw that I was in real estate and she commented “I heard that sales in Orlando were up last month…that’s great!”  I quickly replied to her that yes, sales were up last month, and that they’ve steadily been increasing each month since January!  Amazing that the media is just now mentioning that we’re on the rebound in closings when WE’VE known it all year!

The more you go out and spread the word, the sooner the buyers will get off the fence and once again be buyers.  This is the ONLY way for our market to get back to normal…people need to buy.  It’s your job to tell them that.  GET TO WORK!

#5:  Thou Shalt Be A Master At Your Trade

Things go wrong in closings.  Period.  Everyone knows it’s true, and if you don’t warn your clients up front of that fact, you will be left with egg on your face later when it actually happens.  So part one is…prepare your clients for realistic expectations (especially with short sales!)

How you will become THE go to person for your client and all of their referrals for the rest of their lives will be in how you handle those things that come up.  This is where mastering your craft comes in.

A real estate transaction really is a house of cards.  Each card is a separate party to the transaction:  Buyer, Seller, Home Inspector, Mortgage Broker, Underwriter, Title Company, Insurance Agent, Termite Inspector, the buyer’s parents, the list goes on… a bad “feeling” or report from ANY one of them can send your deal tumbling to the ground.  The more knowledge and experience you have in EVERY part of the transaction, the easier (and more likely) it will be that you will be able to fix the problem and save the deal.

I’ve invested HOURS and HOURS to learn as much as I could about the OTHER parts of the transaction and how they all play together and it has DEFINATELY saved many a deal both for me and for the real estate agents I was doing the funding for.

So the next time you see a course at the board office on appraisals, or understanding title insurance, just take a few hours out of your day and go…it will make you thousands of dollars in the long run.

Your clients will appreciate this level of expertise, and because of it, they will send you referral after referral, and we all know that referrals are easier to close because it’s already been done for you!

See you next week with the next installment!

McCain or Obama…what about our real estate?

Posted: Thursday, October 23rd, 2008
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We’re almost to election time…and I’m about to share a very dear secret about who gets elected and how that affects the housing market and the rest of the economy in general…

I don’t think it matters!

Yep, you’ve heard me correctly. I’ve been in the real estate market for many years now, and in both 2000 and 2004 I got stuck with some investment properties that I couldn’t sell. My mom said “don’t buy houses in election years…the economy is always worse because people don’t buy things until they know who’s elected” and I said…”Phooey!” and bought houses anyways, and got stuck with them. As soon as the election was over, and it didn’t matter WHO got elected (in fact, one year they’re not even sure WHO got elected!), my houses went under contract almost immediately.

I’ve said a lot lately: those of us in the real estate field that can get through this JUNK will come out on the other side smelling like roses & rolling in the dough…I predict that the other side is getting closer and we’re going to see it shortly after the election… and for those of us left standing…we’ll do EVEN BETTER because a lot of the not-so-serious people who only got in the business when times were good have weeded themselves out. (the Orlando board has dues of over $500 due this month…I predict we will lose a HUGE amount of Realtors in Central Florida this month)

Stay tuned…I’m watching with you!

Super Duper Tips from Andy - Part 2

Posted: Wednesday, October 22nd, 2008
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Andy’s 10 Commandments of Closing the Sale

Last Weeks: (you can read them in full  HERE if you missed last week)

#10:  Thou Shalt Find Out Thy Customer’s Needs and Fulfill Them
#9:  Thou Shalt Ask A Lot Of Questions And Explain Why That’s Important to Them

This Week’s Installment:

#8:  Thou Shalt Become A Master Communicator

Clients are getting more and more savvy to the old fashioned “salesy” conversation and they don’t like it.  They want to do business with people that they know:

-are experts in their field
-care about more than just the commission
-are honest and up front when the chips are down

So, how do you show them that’s you?  You need to learn to be a great communicator who can get accross the fact that you can be a tenacious pit-bull when needed and a warm-huggy-fuzzy person when needed.  Attend a class at your local adult ed center (in Orlando it’s The Knowledge Shop) or a book that I recommend is “Instant Rapport” by Michael Brooks (available everywhere, including Amazon.com, about $10)

#7:  Thou Shalt Master the Art of Reading Your Client’s Hidden Meanings and BodyLanguage

This goes hand in hand with #8, however I feel it is important enough to be it’s own commandment.  It is said that we have 2 ears and 1 mouth because we should listen twice as much as we talk.  Many people will talk just to be saying something because they think they are “controlling” the conversation and the sale.  I’ve found that many times I learn the most about the client and their needs just by sitting back and listening, in fact, sometimes I can be spotted sitting in the corner just soaking it all in…people think that I’m staying out of things, but I’ve picked up more from my “corner” then the other people that are actively “in” the conversation.  When you are truly listening, you will hear much more than just the words…words actually account for a VERY small portion of human communication, the majority is:

tone/speed/etc:  Say out loud “I HATE You” like you are auditioning for a movie part (go ahead, do it!)  No really, I want your words to DRIP with hatred…ok, got it?  now say it the exact same way, but say “I love you” instead.  If someone said those WORDS to you but with that tone, how would you interpret it?  See how important tone is?

body language:  again, say out loud “I hate you” while holding up your fists like you’re ready to fight and scowling your face like you’re growling..got it?   Now do the same motions and say “I love you” instead.   See how the words are trumped by the body language?  In fact, if your face was scowling  and your fists were up, I’m probably not even listening to you words, I’m looking for an escape route!

Now hopefully you realize how body language and tone is more important than words…remember this both when you are the TALKER and when you are the LISTENER!
 
Join me next week as I bring you more of “Andy’s 10 Commandments of Closing the Sale”

Super Duper Tips from Andy… (part I)

Posted: Tuesday, October 14th, 2008
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I’m always talking about low-cost and even free marketing techniques to get people beating down your door wanting to do business with you.  We call them “prospects”.  But that’s ALL they are until you convert them to paying customers.  Then we’ll call them “clients” (and we’ll put some money in the bank!).
 
As of today, there are tens of thousands of Licensed Real Estate Agents in Florida, and even more Licensed Mortgage Brokers.  What makes YOU better then the other 99,999?  If you can’t convince me of why I should work with you, I won’t.
 
For the next few weeks, I’m going to share with you some techniques to turn prospects into paying clients and “close the sale”.  Here’s Part I in the series:
 

Andy’s 10 Commandments of Closing the Sale

 
#10:  Thou Shalt Find Out Thy Customer’s Needs and Fulfill Them
 
I know, seems like an obvious one, but I can’t tell you how many people get this wrong!  Tim & I recently went through the purchase of a new car.  We hadn’t decided exactly what we wanted, but had narrowed it down to a small SUV, truck, or another Jeep.  When we told this to the salespeople, some of them tried to steer us over to a car.  Don’t make your job any more difficult than it is!  If they tell you they want a truck, you will most likely NEVER sell them a car! 

This holds true in real estate as well, but be careful to distinguish between their wants and their needs.  They may WANT a 3-car garage and a 5 bedroom with a pool, but would also be very happy in a 4 bedroom with a 2 car garage and a community pool for $50,000 less.
I usually ask it like this: “what’s the least amount of bedrooms that you can get by with” or “is a 3-car garage an absolute necessity or if I found the perfect house with only a 2-car, could you make that work?”
 
Have a heart to heart with them about their wants, and then talk to them about the price difference between that home, and the one that meets their NEEDS.  In today’s market they will probably take the more conservative approach.  Yes, your commission may be a little smaller, but you won’t lie awake at night wondering how long until they can’t afford those big payments anymore!
 
#9:  Thou Shalt Ask A Lot Of Questions And Explain Why That’s Important to Them
 
Buying a home is usually the largest purchase your clients will ever make, so it is critical to your success that you help them find the BEST home for their needs (see #10).  The best way to find out their needs is to ask a ton of questions to get to the core of their desires; however they may feel uneasy with your line of questioning, so it is also important to explain to them up front WHY you ask so many probing questions:

“Mr. & Mrs. Buyer, in order for me to find the perfect home for you, I may need to ask you some questions that are a little different than you might have anticipated, however rest assured that your answers will give me a better feel for your lifestyle both now and in the future so I will be able to best fit a home to your needs, such as do you run a home based business or do you have a child in college that might move back in with you when they graduate, those are things that might change the type of home I look for.  If at any time you don’t feel comfortable with any of the questions, just say so!”
 
Join me next week as I bring you more of “Andy’s 10 Commandments of Closing the Sale”
  

FHA and MI and Disclosures, OH MY!

Posted: Thursday, October 2nd, 2008
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Lots of changes in the industry take place this month…here’s a summary:

First let’s discuss FHA, since it is pretty much going to be the #1 way to finance deals in this market (you’ll see why a little further down).

FHA has increased their MIP factors just a little bit, from 1.5% up front to 1.75 and from .5 monthly to .5 or .55 depending on LTV.

The Seller Funded down payment assistance is gone as of today (Oct 1, 2008).  Please note, there are some actions in Washington to bring it back, so stay tuned, and the county/state downpayment programs ARE still ok, as are gifts from a family member, church, boss, etc.
FHA will no longer allow a “non-occupant co-borrower” IF the primary borrower does not have a “traditional” credit file.

PLEASE READ THIS IMPORTANT WARNING:

As FHA becomes a bigger and bigger player in the finance market, mortgage brokers who are not approved start getting creative at how they can close FHA loans even though they are not approved.  BE SURE that whoever is doing the mortgage REALLY IS FHA approved!  Here’s 2 reasons why this is important:

1.  Some brokers will have their “spouse” be an “employee” of an FHA approved lender so they can put the loan through them.  I recently worked as a buyers agent on one of these and our closing was delayed by about 2 weeks because nobody knew what was going on and the processor was out of another state and it was a REAL mess, AND, the buyer got a really high interest rate because so many people had their fingers in the pie.

2.  There are some companies now that have found a loophole in the FHA rules and they CAN help a client get an FHA loan and get paid for it, but they cannot get paid to originate the loan, they can only get paid as a “consultant” AND they can only get paid out of the borrowers own funds, up to 2%, so this means there will be an EXTRA 2% FEE that your buyer will have to pay, above and beyond the normal fees and closing costs.

3.  You CANNOT originate FHA loans if you are a Realtor, insurance agent, or title agent.  If your company is letting you do both, be careful!

It’s OK to interview your mortgage company and make sure they are properly licensed an approved to originate FHA loans.  This will make your closings go smoother, your customers happier, and your bank account fatter!

Also just announced today…2 of the big Mortgage Insurance companies are rolling out some changes:

GE/Genworth:  Eff. October 6th:  All loan transactions in FL, CA, AZ, NV will require at least a 720 score and a maximum debt ration of 41% (regardless of what the computer approval says)
Radian: Eff. October 20th, Radian will only insure up to 95% in stable markets and 90% in declining markets (yes, Florida is one of them)

Please note!  This does NOT mean that your borrower must have a 720 score and 10% down, this is NOT a FNMA change, each insurance company sets their own guidelines, but expect that we will begin to see more of these types of changes in the coming months!

And of course, don’t forget, the new Florida Foreclosure law goes into play TODAY!!! Make sure you’re disclosing to your sellers AND tracking if they GO into foreclosure while you have it listed.
If you have any questions about these changes or any loan scenarios, please call Tim, Eric, or Myself right away at 407-831-2277!

Mortgage Update: News You Can Use!

Posted: Tuesday, September 30th, 2008
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News you can Use!

This week FHA announced a new way they are going to handle this situation:

Your client is buying a new home and wants to keep the old one as a rental.

Before, you could get a copy of the lease and we could use the rent to offset their payment, but because of the proliferation of people buying the new house and then letting the old one go, FHA now requires that they make enough income to cover BOTH payments as if there were no rental income.  There are a few exceptions to this, but it’s important that your client’s lender knows about the WHOLE deal up front so they can structure it in the best way possible to get the deal done.

In the mean time, if you need Tim, Myself, or Eric to answer any mortgage questions, please call us at 407-831-2277.  We can brainstorm on scenarios and what-if’s to help get your listings sold and your buyers closed!

You Have a New Law To Comply With on October 1st!

Posted: Monday, September 29th, 2008
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Is your listing in foreclosure?  Do You Know?

Last week I had the pleasure of presenting the Keynote Address on the “Risks & Rewards of the Foreclosure & Short Sale Market” at the annual meeting of the New Smyrna Beach Board of Realtors.  It was a beautiful room, overlooking the marina, and it made me want to go outside and jump in!  But all of that turned ugly real fast when I started talking about the new Florida Foreclosure Law (HB643) that goes into effect on October 1st.  Most of them had NO CLUE what I was talking about!
 
So that’s what prompted today’s (long) article.  I believe that a very poor job has been done in informing agents about the new law, and it DOES affect you!  In fact, here’s a clue of how poor the information has been:  one of my friends that is a broker here in Orlando called the FAR Legal Hotline to ask some questions about complying with this new law, and the attorney on the other end didn’t know that the law had been passed!  Do you believe it?
 
So this article is a brief outline of the law and some of the things you might need to consider when dealing with listings that are in foreclosure (or GO into foreclosure during your listing!).  Please keep in mind that I am NOT an attorney nor do I play one on TV, so it is always advised to get professional advice from your attorney.  This will give you a primer on some of the things you may want to talk to them about.

If you’re an insomniac, Click Here to read the whole bill!

First of all, the law covers 2 basic “classes” of people:

1.  Equity Purchaser:

Any person who acquires a legal, equitable, or beneficial ownership interest in any residential real property as a result of a foreclosure-rescue transaction (which is defined as buying the house AND the homeowner maintains a legal or equitable interest in the house, including: a lease option, an option to acquire the property, an interest as beneficiary or trustee to a land trust, or other interest in the property.  Please note: one attorney has pointed out that if the seller stays in the house even for just a few days after closing, they may be deemed to have retained an interest, so make sure the property is vacated before closing or even your regular buyers who intend to move into the property could get caught under this one!)

2.  Foreclosure Rescue Consultant:

a person who directly or indirectly makes a solicitation, representation, or offer to a homeowner to provide or to performs, in return for payment of money or other valuable consideration, foreclosure-related rescue services (which is defined as “any good or service related to, or promising assistance in connection with: stopping, avoiding, or delaying foreclosure proceedings concerning residential real property; or curing or otherwise addressing a default or failure to timely pay with respect to a residential mortgage loan obligation)

Both of these classes have exclusions listed in the law that you can read about.  One of them, the exclusion of persons under s. 501.212 MAY exclude Realtors, but it is not spelled out as such, so most attorney’s I’ve spoken to recommend that you comply with the law anyway.  

A few other clarifications they make:  
- “Homeowner” means any record title owner of residential real property that is the subject of foreclosure proceedings
- “residential real property” means one to four family dwelling units, one of which is occupied by the owner as his or her principal place of residence
- “in foreclosure” means against which there is an outstanding notice of the pendency of foreclosure proceedings recorded (i.e., a Lis Pendens has been recorded)

At the very core, many agents are arguing that they are not acting as a “foreclosure rescue consultant” or any such thing, they are acting within the scope of being an agent, however the minute you pick up the phone to negotiate with their lender to get an offer approved that doesn’t cover the payoff in full, or ask them to delay the sale a few weeks because you have a buyer, you’re probably acting as a consultant to stop, avoid, or delay foreclosure proceedings, aren’t you?

The law calls for several things:  You must have a written agreement, in at least 12-point uppercase type, signed by both parties.  You must give them the agreement at least 1 business day before they sign it to give them time to review it.  They will have 3 business days to cancel it without any penalty or obligation (and this can’t be waived under ANY circumstances). AND, you must give them a copy of the signed agreement within 3 HOURS after they sign it.  The agreement must spell out who the parties are, the exact nature and specific detail of each service to be provided, the total amount and terms of charges to be paid by the homeowner for the services, and the date of the agreement.  It must also have the specific cancellation language as set out in the law text.  You are also prohibited by law from collecting any money, property or other payment until all promised services are complete. ( I don’t know how that’s going to affect IndyMac and their $300 up front fee for a short sale!) 

One of the BIG things the law addresses is when someone purchases a home in foreclosure and then rents, sells, or lease-options the house back to the original owner.  If any of your clients are considering this, PLEASE get them with an experienced attorney to structure it.  There are very strict limits on what the resale price can be and it is actually treated as a financing transaction that is subject to usury and other lending laws, so BE CAREFUL!  (by the way, I have NEVER recommended this as a good business practice, I always make the seller vacate when I have purchased a home in foreclosure).

OK, that’s a lot to absorb, and one of the things to consider is that when you take the listing the home might not BE in foreclosure, but it has a Lis Pendens filed while you have it listed.  Some people are suggesting that you get a “Notice to Homeowner’s NOT in Foreclosure” disclosure where you pre-notify them just in case!  Isn’t this crazy?  You never know which clients will and won’t, so don’t pre-judge.  If your office decides to disclose to everyone, disclose to EVERYONE!

Summary of Points from the ORRA Law Symposium on September 16, 2008

Posted: Thursday, September 18th, 2008
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The Orlando Regional Realtor Association held their annual “Legal Symposium.”  Many things were discussed, some were wayyyyy more interesting than others, but I’ve picked out some of the highlights that I thought were important to keep you informed about, especially if you are dealing with any clients in a short sale or pre-foreclosure situation (remember, all foreclosures are NOT short sales!)

1.  If your seller tells you that they are current on their mortgage(s), do NOT believe them!  Always verify.  You will need an Authorization to Release Information where the seller gives you permission to talk to their lender.  Then call the lender and find out the true situation. (Remember, after October 1st there are new laws to follow if the seller is in foreclosure, so you need to be very careful to find out if they are or not!)

2.  Be extra careful anytime the “seller” that you are talking to is not the owner of record in public records.  There are a lot of scam artists out there right now, and you don’t want to be drug into a legal battle!

3.  Ask the seller if they have signed ANY paperwork at all with any other real estate agents, investors, or short sale companies.  If they have, it might have been a quit claim deed and now you have a big problem…your seller doesn’t own the house any more and he doesn’t have authority to list it or sell it!  They will most likely need an attorney to straighten this mess out!

4.  If your seller is in Bankruptcy, they may still be able to sell the house.  They recommend talking to the seller’s attorney to clarify the situation.  You may need written permission from the bankruptcy trustee to sell the property.

5.  Can your client continue to rent his properties while they are in foreclosure?  The simple answer is YES, he still owns it (for now) and has all of the rights that come with that ownership, however it is possible that the lender may step in and take the rent money. (It’s called and “assignment of rents” and it was probably included in their mortgage docs that they signed, although very few lenders do this)

6.  Under the new “foreclosure fraud” law that goes into effect on October 1st, 2008, are Realtors exempt from complying

7.  Also, FYI, Florida is still #1 in the country for mortgage fraud.  To protect yourself, they suggest verifying EVERYTHING in a transaction, and if it “smells” then go with your gut feeling.  No commission is worth JAIL! (as of October of last year, mortgage fraud is a 3rd degree felony, and if you know about it, you could be in trouble!)

8.  They also recommended doing more of your business (escrow checks to title companies, etc.) by wire transfer…there’s a big problem even with forged cashier’s checks going on right now!
Whew, that should be a brain-full for you right now… and a few things to be aware of in your day to day business.  I’ll keep ‘em coming!

Mortgage Update: News You Can Use!

Posted: Thursday, August 28th, 2008
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As I announced last week, I’m pitching in to help Tim & Eric with the volume of the mortgage business right now (Tim’s my husband).  Tim is the branch manager for Alternative Mortgage, so I guess that makes him my BOSS!  (don’t tell him that I’ve realized that…it will be our little secret!)  Can you spell I-N-S-U-B-O-R-D-I-N-A-T-I-O-N?

Anyways…

Don’t forget, as of October 1st the seller funded downpayment programs like Nehemia and Ameridream will be GONE!  Several lenders have already announced that they will not close them anymore effective now.  They are afraid that if they close them now, they may have problems getting them insured by FHA. 

IF YOU HAVE BUYERS UNDER THIS PROGRAM…GET THEM A HOUSE AND GET THEM CLOSED NOW, DO NOT LET THEM SIT ON THE FENCE AND LOSE THEIR CHANCE (and your commission!)

On a different note, Tim just got signed up with a lender that is allowing seller held second mortgages  again!  This means that if your buyer doesn’t have  their downpayment money, the seller can hold a 2nd mortgage and get the house sold!  This is a perfect situation when the seller is willing to take 5-15% less than asking  price, this way they get full asking price AND a little monthly income from it! (remember, most houses right now sell for about 92% of asking price, so instead of discounting, your seller can get paid!)  We are approved to close loans in every part of Florida.

If you’d like some help setting up a transaction like this, or just running a scenario by us, call  407-831-2277 or email Tim@TimTolbert.com

How ‘Bout Team USA!

Posted: Wednesday, August 13th, 2008
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Are you watching the Olympics?

I’ve been watching some, and I’ve learned a few interesting things:

(first of all, you can watch EVERYTHING live and recorded at www.NBCOlympics.com)

1.  In soccer, statistically, the other team is more likely to make a goal in the 5 minutes after you make a goal.  Do you think that’s a technical fact? or do you think that’s a mental thing… “Oh no, they scored, we better kick it up a notch and score one on them!”  So let’s apply that in our business:  “Susie Realtor had 3 closings last month…I better kick it up a notch and score 4 so I can win the medal!…I mean so I get paid!”

2.  Horses in the equestrian events have their own “Horse Passports” and some horses travel more on airplanes than most humans!  Oh, and horses DO get jet-lag!

3.  “Trampoline” is an Olympic Sport!  (yes, the thing you bounce on!)

4.  So is Badminton

5.  One of the announcers for the Men’s Gymnastics made this comment after one of the (I think) Chinese team messed up.  He said:  “It matters more how you perform in your NEXT event, how you re-compose yourself, than it matters when you make a mistake.”  I saw that in one of the American’s floor excercises…he messed up on one of the stunts and then he lost his focus and got shaken up and then he messed up on several other stunts AND stepped out of bounds.  How do YOU react when you make a mistake? 

6.  Ping-Pong is also an Olympic sport.

7.  Maybe Wii Games will be next! (if you’re not hip, that’s the coolest video game system EVER!)
Keep Watchin’ and learnin’ about what TRUE dedication to your craft can look like and then look inside and see if YOU are truly dedicated.  If not, maybe it’s time to move on.  But don’t ever give up on your dreams.  This year there is a 67 year old Olympian competing in the equestrian events!  by the way, the equestrian competition is one of only 2 where men and women compete together (the other is yacht racing!)

Is 99% Good Enough?