My next door neighbors’ Maltese and Shit-Tzu dogs recently had a litter of pups. The hybrid pups, called Mal-Shi’s or Malti Tzu’s, were perhaps the cutest pups I had ever seen. Needless to say, I am now the proud owner of Brody, one of the cutest pups ever. Soon after he came home, we took a number of pictures and a video of him under the Christmas tree amidst a group of small stuffed animals titled “Where’s Brody?”. Because one of our daughters couldn’t open up the video file on her Mac laptop, I uploaded it to YouTube so she could view it. Imagine my surprise the next day when I received an email from the ABC affiliate in Phoenix requesting permission to broadcast the video on their news program. But then again, he is perhaps the cutest puppy ever.
At first I was somewhat surprised about this, but then I thought of the pictures, virtual tours and videos of homes that I upload onto the internet that are also seen all over the world immediately after I key them in. I have dealt directly with home buyers from all over the U.S., Mexico, Europe, the Mid East, South America, Canada and Australia, to name a few. Of course, it’s nothing unique to me, it’s just the nature of the real estate business today. Still, the power of the internet instantly transmitting video around the world still amazes me.
Of course, I didn’t have to do much to attract the Phoenix station to the YouTube video of Brody. Puppies pretty much sell themselves. But home photography requires a little more experience and care. To catch buyers’ interest, pictures have to depict a compelling story. Poor quality pictures or a lack of pictures can cause buyers to just pass a listing by and move on to others.
Although professional real estate photographers are available, most agents still do their own photography. Those that do should have good quality equipment along with the knowledge to effectively use it. It doesn’t take an investment of thousands of dollars in camera equipment to make good quality pictures these days. Basic equipment would include a digital camera, a wide-angle lens, external flash and tripod. All of those items can be purchased at a very reasonable cost. Training can be acquired rather easily too. There’s a plethora of books, on-line articles and classes that cover all the basics and more. And finally, expertise requires lots of experimentation and practice, practice and more practice.
A seller’s minimum expectation from a Realtor from a photography shoot is a set of pictures that are well framed, properly lit, and sharp. But the best real estate photographers go well beyond that if they possess some key attributes. First of all, a love of selling real estate is a huge advantage in being a good home photographer. The photographer needs to understand a home’s selling strengths, put together a story line and then capture that story with pictures. Patience is also a virtue as the photographer might have to wait a bit for the lighting to be right, or perhaps catch a boat sailing by. Creativity is also helpful. For example, capturing a rose bud in the foreground in a picture of a lit fireplace can make an ordinary picture appear extraordinary.
Since the real estate industry has invaded the internet, home photography has never been more important in selling real estate. Agents should acquire this skill or hire someone who is capable. I’m fortunate in that my husband has a passion for home photography. When I get a new listing, I love to see his eyes light up as he starts to envision a picture storyboard. Many agents have a similar passion or utilize someone who does.
Meanwhile, I think we’re going to try to get another video of Brody under the Christmas tree. He’s been uploading puppy chow so I had better finish his photo shoot before he executes a download.
Sunday, January 8, 2012
Sunday, November 20, 2011
A Thanksgiving Story
Some time back I listed a home for a couple who was going through a most difficult time. Because of some financial hardships, they had reluctantly decided to pull up stakes. They had a modest home on some great property, but it needed some cleanup and repairs that the owners just didn’t have the time or money to do. Not long after listing their property, they moved out of state and quit making mortgage payments. Before the bank started foreclosure proceedings, I helped them get approved for a short sale.
The condition of the home was a significant negative for most prospective buyers who viewed the home. But eventually a very nice couple contacted me about the property and fell in love with it. The husband was a do-it-yourself type of guy and wasn’t the least bit intimidated about the needed repairs. They said that the house and acreage was the perfect fit for them. And they loved the area as it was close to their family. This property had everything on their wish list and nothing else they had seen had come close. Even the sellers were overjoyed that someone would continue to appreciate the property as they once had.
It sounds like a nice ending to a sad story, but there was a hitch. After contacting their lender, the couple learned that they were some issues that had to be resolved that could take 6 months to a year to work out. The sellers’ bank would not wait that long for them and directed that the property stay on the market in search of another buyer. I felt their pain as this nice couple saw their dream home slip away.
But there just had to be another way. What if an investor purchased the home, leased it to this couple and then sold it to them when the time came that they were able to purchase it on their own? I ran this idea past several investors that I work with and one of them agreed. Working with the sellers, the seller’s bank, the buyers, the buyer’s lender, and the investor, an agreement was reached when all parties were able to get the terms and assurances needed to go forward with this plan.
My clients signed the lease moments after the investor closed on the property. They quickly moved in and immediately began sprucing the place up. It became very obvious that they were committed to doing whatever was possible to purchase the home from the investor as quickly as possible. They worked diligently with their lender and followed her suggestions to the tee. In seven short months, they were able to purchase the home from the investor.
I’m typing this article after leaving the closing table. The joy in the room was contagious. The buyers commented that someone should make a movie about how this all happened. They were still in awe how everyone worked together to help them realize their dream. Along with the lender and the investor, I was happy that I was able to play a part in this story. Hugs abounded and I think I saw a tear or two from some of the folks in the room.
There are so many sad stories these days stemming from the prolonged economic recession we’re suffering from. But there are still some heartwarming stories taking place. As I sit down and give thanks this Thanksgiving Day, I will be thinking of this wonderful couple celebrating their first Thanksgiving Day in their new home.
Dreams still come true. Happy Thanksgiving everyone.
The condition of the home was a significant negative for most prospective buyers who viewed the home. But eventually a very nice couple contacted me about the property and fell in love with it. The husband was a do-it-yourself type of guy and wasn’t the least bit intimidated about the needed repairs. They said that the house and acreage was the perfect fit for them. And they loved the area as it was close to their family. This property had everything on their wish list and nothing else they had seen had come close. Even the sellers were overjoyed that someone would continue to appreciate the property as they once had.
It sounds like a nice ending to a sad story, but there was a hitch. After contacting their lender, the couple learned that they were some issues that had to be resolved that could take 6 months to a year to work out. The sellers’ bank would not wait that long for them and directed that the property stay on the market in search of another buyer. I felt their pain as this nice couple saw their dream home slip away.
But there just had to be another way. What if an investor purchased the home, leased it to this couple and then sold it to them when the time came that they were able to purchase it on their own? I ran this idea past several investors that I work with and one of them agreed. Working with the sellers, the seller’s bank, the buyers, the buyer’s lender, and the investor, an agreement was reached when all parties were able to get the terms and assurances needed to go forward with this plan.
My clients signed the lease moments after the investor closed on the property. They quickly moved in and immediately began sprucing the place up. It became very obvious that they were committed to doing whatever was possible to purchase the home from the investor as quickly as possible. They worked diligently with their lender and followed her suggestions to the tee. In seven short months, they were able to purchase the home from the investor.
I’m typing this article after leaving the closing table. The joy in the room was contagious. The buyers commented that someone should make a movie about how this all happened. They were still in awe how everyone worked together to help them realize their dream. Along with the lender and the investor, I was happy that I was able to play a part in this story. Hugs abounded and I think I saw a tear or two from some of the folks in the room.
There are so many sad stories these days stemming from the prolonged economic recession we’re suffering from. But there are still some heartwarming stories taking place. As I sit down and give thanks this Thanksgiving Day, I will be thinking of this wonderful couple celebrating their first Thanksgiving Day in their new home.
Dreams still come true. Happy Thanksgiving everyone.
Sunday, October 16, 2011
Ever Changing Nature of the Real Estate Industry
I was watching a TV program the other night and saw something that actually made me stop and think for a minute. It was a story about the late Ruth Graham that was told by her husband Billy Graham. It seems that years earlier, they were driving home from an event and encountered a stretch of road that was under construction. When they finally worked their way past it, they saw a sign that said “End of construction. Thank you for your patience”. Mrs. Graham remarked to her husband what a marvelous epithet that would be and directed that it be put on her tombstone after she died. It was told with great admiration and was a great reminder that we should never quit our personal quest in becoming a better person as there’s always something to learn or to do.
OK, I’m a realtor and not a motivational speaker. But Reverend Graham’s story made me reflect not only on my own personal life, but also on my career choice. The real estate profession is continually under construction and has changed drastically in recent years. Like most professions, technology has advanced at breakneck speed and Realtors have had to stay abreast of the changes. This technology has enabled agents to produce a much better product, but at the same time, buyers and sellers of real estate expect much more than ever before. So Realtors have had to keep up or lag behind.
As an example, in just the past few years, smart phones and tablet computers have enabled agents to have a fully functional mobile office while on the go. They can conduct business in a parking lot and give their clients the same information that they could if they were in their office. Agents can respond to their clients more readily and don’t have to wait till they’re back in the office to address their concerns. Or they can be touring the county with clients and download information on properties of interest on the fly. Right outside of a home for sale, an agent can upload pictures and let their clients view them to determine if they want to make an impromptu appointment to tour the home. This makes the task of showing houses so much more productive for clients as well as agents.
Another recent advancement is the QR (Quick Response) code. I suspect many folks have seen the odd little square ink blots but didn’t know what they were. These QR codes have a unique imprint and serve several purposes, but most often represent a website address. Anyone with a QR reader (an app that is resident in many smart phones) can just point their phone at the QR code, and a designated website pops up on their viewer. I recently listed a home that had a number of very unique features. I simply created a QR code for each feature and incorporated it into a flyer placed next to each feature. The QR codes were linked to either a manufacturer’s website for the product, a video about the product, or a customer testimonial. It turned out to be a powerful sales tool.
So what is the next big breakthrough? Many of the things we routinely use today could not have been imagined by most of us just a few years ago. But as sure as the sun will come up tomorrow, I know there will soon be something that will make my profession more exciting and lead to a more satisfying experience for both buyers and sellers.
Obviously, Mrs. Graham was thinking in more grandiose terms that real estate when she chose her epithet and it is certainly more meaningful when thought about in a spiritual, moral, or humanitarian context. But I believe the meaning of the story is relevant in all important aspects of one’s life. Even real estate.
OK, I’m a realtor and not a motivational speaker. But Reverend Graham’s story made me reflect not only on my own personal life, but also on my career choice. The real estate profession is continually under construction and has changed drastically in recent years. Like most professions, technology has advanced at breakneck speed and Realtors have had to stay abreast of the changes. This technology has enabled agents to produce a much better product, but at the same time, buyers and sellers of real estate expect much more than ever before. So Realtors have had to keep up or lag behind.
As an example, in just the past few years, smart phones and tablet computers have enabled agents to have a fully functional mobile office while on the go. They can conduct business in a parking lot and give their clients the same information that they could if they were in their office. Agents can respond to their clients more readily and don’t have to wait till they’re back in the office to address their concerns. Or they can be touring the county with clients and download information on properties of interest on the fly. Right outside of a home for sale, an agent can upload pictures and let their clients view them to determine if they want to make an impromptu appointment to tour the home. This makes the task of showing houses so much more productive for clients as well as agents.
Another recent advancement is the QR (Quick Response) code. I suspect many folks have seen the odd little square ink blots but didn’t know what they were. These QR codes have a unique imprint and serve several purposes, but most often represent a website address. Anyone with a QR reader (an app that is resident in many smart phones) can just point their phone at the QR code, and a designated website pops up on their viewer. I recently listed a home that had a number of very unique features. I simply created a QR code for each feature and incorporated it into a flyer placed next to each feature. The QR codes were linked to either a manufacturer’s website for the product, a video about the product, or a customer testimonial. It turned out to be a powerful sales tool.
So what is the next big breakthrough? Many of the things we routinely use today could not have been imagined by most of us just a few years ago. But as sure as the sun will come up tomorrow, I know there will soon be something that will make my profession more exciting and lead to a more satisfying experience for both buyers and sellers.
Obviously, Mrs. Graham was thinking in more grandiose terms that real estate when she chose her epithet and it is certainly more meaningful when thought about in a spiritual, moral, or humanitarian context. But I believe the meaning of the story is relevant in all important aspects of one’s life. Even real estate.
Monday, September 19, 2011
Separating Fact from Fiction
I have always preferred going into stores where the sales staff informs rather than persuades. Most times I encounter a blend of both styles. When I sense that the information is heavy on persuasion and short on facts, I’ll usually shop elsewhere. But it’s a welcomed relief when I sense that the information is heavy on facts. It starts my relationship with the store on a most positive note.
Establishing a relationship with a Realtor can have similar challenges. Before a home seller selects a Realtor to list their home, they may speak with one or more Realtors before making a decision. A Realtor should be prepared to provide some biographical information, data on the home’s value, home selling tips and a marketing strategy. Here is some factual information to expect:
• Biographical information should include years of experience, certifications, number of transactions, verifiable references and examples of the quality of their work.
• Data on your home’s value should include recent sales of comparable homes. Comparable homes should be in the same neighborhood, similar lot, and with similar amenities. For example, a waterfront home should not be compared to an identical home on an interior lot.
• Home selling tips should be objective, proven and reasonable. Decluttering, paint touchups, and replacing rotted trim can have a positive impact on the home’s impression to potential buyers and can be done without much time or money. A suggestion to remodel the kitchen would also have a big impact, but in most cases would neither be a reasonable suggestion nor a cost-effective selling tactic.
• The marketing strategy should describe how your home will be presented and how the Realtor will get the listing in front of as many buyers and Realtors as possible.
The vast majority of Realtors are professional and stick to the facts. But Realtors are human and every agent wants listings. So here are a few tidbits of information that might be more designed to persuade than to inform:
• Stating that they already have a buyer for your home. Realistically, the odds of a buyer just waiting in the wings for you to list your home at the price you want is not very likely.
• Stating how quickly they sell homes. In 2010 in Montgomery County, the average time on the market was 132 days. A great listing presentation and marketing strategy help move a home faster, but keep in mind that some homes sell quickly simply because they are undervalued.
• Stating that they have buyers from foreign countries. That may sound impressive but in reality all MLS listings are easily accessible by anyone with an internet connection anywhere in the world. It is very common these days for Realtors to work with interested buyers from all parts of the globe.
• Stating that their website attracts more buyers than other Realtor websites. Bear in mind that once a listing is entered into MLS, it finds its way onto a vast array of both national and local real estate websites. The quality of the pictures and narrative are infinitely more important than the power of the website itself.
Montgomery County has a large number of professional, experienced Realtors with the confidence to compete for your listing with factual information and do not feel it necessary to puff up their presentation with vague claims and exaggerations. And it always pays to be a wise consumer, especially in a matter as important as selling your home.
Establishing a relationship with a Realtor can have similar challenges. Before a home seller selects a Realtor to list their home, they may speak with one or more Realtors before making a decision. A Realtor should be prepared to provide some biographical information, data on the home’s value, home selling tips and a marketing strategy. Here is some factual information to expect:
• Biographical information should include years of experience, certifications, number of transactions, verifiable references and examples of the quality of their work.
• Data on your home’s value should include recent sales of comparable homes. Comparable homes should be in the same neighborhood, similar lot, and with similar amenities. For example, a waterfront home should not be compared to an identical home on an interior lot.
• Home selling tips should be objective, proven and reasonable. Decluttering, paint touchups, and replacing rotted trim can have a positive impact on the home’s impression to potential buyers and can be done without much time or money. A suggestion to remodel the kitchen would also have a big impact, but in most cases would neither be a reasonable suggestion nor a cost-effective selling tactic.
• The marketing strategy should describe how your home will be presented and how the Realtor will get the listing in front of as many buyers and Realtors as possible.
The vast majority of Realtors are professional and stick to the facts. But Realtors are human and every agent wants listings. So here are a few tidbits of information that might be more designed to persuade than to inform:
• Stating that they already have a buyer for your home. Realistically, the odds of a buyer just waiting in the wings for you to list your home at the price you want is not very likely.
• Stating how quickly they sell homes. In 2010 in Montgomery County, the average time on the market was 132 days. A great listing presentation and marketing strategy help move a home faster, but keep in mind that some homes sell quickly simply because they are undervalued.
• Stating that they have buyers from foreign countries. That may sound impressive but in reality all MLS listings are easily accessible by anyone with an internet connection anywhere in the world. It is very common these days for Realtors to work with interested buyers from all parts of the globe.
• Stating that their website attracts more buyers than other Realtor websites. Bear in mind that once a listing is entered into MLS, it finds its way onto a vast array of both national and local real estate websites. The quality of the pictures and narrative are infinitely more important than the power of the website itself.
Montgomery County has a large number of professional, experienced Realtors with the confidence to compete for your listing with factual information and do not feel it necessary to puff up their presentation with vague claims and exaggerations. And it always pays to be a wise consumer, especially in a matter as important as selling your home.
Sunday, July 31, 2011
The Sunday Drive
One of the outings I enjoyed as a youngster was the Sunday drive. After church we would go home, have the customary pot roast and if there was nothing else on the agenda, we would sometimes pile in the ’59 Chevy for a drive around the county. I always enjoyed those outings as my dad would usually venture into areas we had never seen before. That made it adventurous and made me more knowledgeable about the area we lived in.
As a Realtor, outings around Montgomery County are a daily occurrence. After being in this business for over 10 years, you would think that I would have seen every nook and cranny. But on occasion, I still venture into an area I’ve never seen before. And I get those same feelings of adventurousness that I felt as a kid. And that is just another part of being a Realtor that I love.
Recently, my web master incorporated a new header to my website’s homepage that features a slide show of pictures. They asked me to provide 20 pictures to display. I already had a number of nice pictures of homes that I’ve listed over the years. But in addition to property photos, I wanted to incorporate a few photos that represented the diverse real estate market in Montgomery County. I seized on this task as an opportunity for a Sunday drive. But to avoid crowds, I chose a Wednesday instead.
So I recruited my photographer / husband and embarked on a road trip around Montgomery County. We left our home off McCaleb Road about 9AM and headed south across the new FM 2854 overpass. Taking pictures along the way, we headed toward The Woodlands. We went to the Cynthia Woods Mitchell Pavilion and strolled along the walkways and took pictures of some of the architecture and sculptures. We then went to Market Square and took a few pictures of the shops and green spaces. About this time, we realized that covering Montgomery County in a day was going to be a challenge.
We headed back north on I-45 toward Historic Downtown Conroe. We took pictures of the Crighton Theatre along with other historic buildings. It was about noon by then, so we grabbed a deli sandwich at our favorite sandwich shop and ate in their dining room situated in one of the historic buildings on the square. After lunch, we headed east on Hwy 105 and took some photos in Cut ‘n Shoot, at the airport and fairgrounds, the Lone Star Convention Center and the new Lone Star College campus. We then headed out to the treasure trove of landscape photos, Lake Conroe.
No slide show about Montgomery County would be complete without a picture of the lighthouse at Seven Coves. The Southern Empress was in dock, so we managed to get a picture of the paddleboat with the lighthouse in the background. We headed toward FM 1097 and went across the bridge to Playa Vista on Lake Conroe. We get a great photo of Playa Vista with the FM 1097 bridge in the background.
We then went to Montgomery, took a few photos downtown and then went to Memory Park in Buffalo Springs. What a relaxing and scenic park. A great place to reflect on what had become a great, enjoyable day. It was now getting late, so we headed back home down FM 2854. But we stopped several times along the way to take pictures of some of the ranches along this scenic drive.
Back home, we found that we had taken several hundred pictures. I soon found out the more difficult part of this assignment is narrowing down the photos to only 20.
With the economy still struggling and gasoline prices still high, it might be a good time for stay local and rediscover the Sunday (or any day) drive. There’s lots to do and see right in our own backyard.
As a Realtor, outings around Montgomery County are a daily occurrence. After being in this business for over 10 years, you would think that I would have seen every nook and cranny. But on occasion, I still venture into an area I’ve never seen before. And I get those same feelings of adventurousness that I felt as a kid. And that is just another part of being a Realtor that I love.
Recently, my web master incorporated a new header to my website’s homepage that features a slide show of pictures. They asked me to provide 20 pictures to display. I already had a number of nice pictures of homes that I’ve listed over the years. But in addition to property photos, I wanted to incorporate a few photos that represented the diverse real estate market in Montgomery County. I seized on this task as an opportunity for a Sunday drive. But to avoid crowds, I chose a Wednesday instead.
So I recruited my photographer / husband and embarked on a road trip around Montgomery County. We left our home off McCaleb Road about 9AM and headed south across the new FM 2854 overpass. Taking pictures along the way, we headed toward The Woodlands. We went to the Cynthia Woods Mitchell Pavilion and strolled along the walkways and took pictures of some of the architecture and sculptures. We then went to Market Square and took a few pictures of the shops and green spaces. About this time, we realized that covering Montgomery County in a day was going to be a challenge.
We headed back north on I-45 toward Historic Downtown Conroe. We took pictures of the Crighton Theatre along with other historic buildings. It was about noon by then, so we grabbed a deli sandwich at our favorite sandwich shop and ate in their dining room situated in one of the historic buildings on the square. After lunch, we headed east on Hwy 105 and took some photos in Cut ‘n Shoot, at the airport and fairgrounds, the Lone Star Convention Center and the new Lone Star College campus. We then headed out to the treasure trove of landscape photos, Lake Conroe.
No slide show about Montgomery County would be complete without a picture of the lighthouse at Seven Coves. The Southern Empress was in dock, so we managed to get a picture of the paddleboat with the lighthouse in the background. We headed toward FM 1097 and went across the bridge to Playa Vista on Lake Conroe. We get a great photo of Playa Vista with the FM 1097 bridge in the background.
We then went to Montgomery, took a few photos downtown and then went to Memory Park in Buffalo Springs. What a relaxing and scenic park. A great place to reflect on what had become a great, enjoyable day. It was now getting late, so we headed back home down FM 2854. But we stopped several times along the way to take pictures of some of the ranches along this scenic drive.
Back home, we found that we had taken several hundred pictures. I soon found out the more difficult part of this assignment is narrowing down the photos to only 20.
With the economy still struggling and gasoline prices still high, it might be a good time for stay local and rediscover the Sunday (or any day) drive. There’s lots to do and see right in our own backyard.
Sunday, June 19, 2011
Making Money the Old Fashioned Way
Very seldom do I get a tidbit of wisdom from a TV commercial, especially something that is still sticking in my head several decades later. It was from a Smith Barney commercial in which the eminent actor John Houseman said of the brokerage firm “They make money the old fashioned way … they earn it.” He gave extra emphasis to the word “earn” in his distinguished accent. Those words rang true to me as the fruits of one’s labor taste so much sweeter when they have been earned through hard work.
In the real estate industry, I feel that it’s especially important to make money the old fashioned way, if you want to have some staying power. Every commission needs to be earned, not just received. So when can a Realtor walk away from the closing table, with a commission check in hand, and feel like they have “earned” their money? Here are a few items that should be on the checklist:
1. The Realtor has kept their client’s best interest in mind at all times by providing them with thorough and relevant information in a fair and objective manner.
2. The Realtor has minimized their client’s stress by being capable, responsive, communicative and proactive.
3. The Realtor has treated all parties involved with respect and professionalism.
4. The Client’s objectives have been met.
With these items checked, the Realtor should feel that the commission has been earned and should have a satisfied client that will provide future business through additional transactions and referrals.
Unfortunately, not everyone has the same concept of “earning” their commission. For example, I represented a client recently that needed to sell their home quickly in order to relocate for their job. It was a great property and after just a few days on the market a prospective buyer expressed interest. Since she hadn’t yet been pre-qualified for a loan, I gave her the names of several local lenders to get pre-qualified. After chatting a while about the property, she said she would call back after getting pre-qualified to set up an appointment to view the property. About a week later, I got a call from a Realtor in Galveston requesting information on this property for their client. Turns out he was calling on behalf of the same prospective buyer that had earlier contacted me. Instead of calling a local lender like I suggested, she contacted an internet lender based in Austin. The lender then directed her to the Galveston agent that he had an alliance with.
As it played out, I learned that the Galveston agent only handled referrals from this mortgage lender, had another full-time job, was inexperienced , and basically had very little time or ability to handle their client’s transaction. Additionally, neither the Realtor nor the lender understood or was willing to learn anything about our local market. In other words, they mostly wanted to “receive” their commission, not “earn” their commission. Unfortunately, the client’s advisors simply couldn’t get it together and were unable to close the deal. So the contract fell apart and the home was sold to the next person in line.
Unfortunately, this scenario is being played out with more and more frequency. Alliances are being formed between the various individuals in the real estate industry. Knowing that they are unlikely to ever get a referral or repeat business, they have to rely on the internet to cast a wide net to get new business. So they invest heavily in an internet website making grand promises to capture clients. But in reality are more focused on generating commissions than helping their clients successfully navigate through a major life decision.
Fortunately, there are many fine local Realtors who still feel that a successful business is built through satisfied clients. And as long as satisfied clients are the mission and the commission is not the mission, everything else will fall into place.
If you are looking for a home, I would love to have an opportunity to earn you business. I can be reached at 936-537-1656 or Claudia@ClaudiaHohlt.com.
In the real estate industry, I feel that it’s especially important to make money the old fashioned way, if you want to have some staying power. Every commission needs to be earned, not just received. So when can a Realtor walk away from the closing table, with a commission check in hand, and feel like they have “earned” their money? Here are a few items that should be on the checklist:
1. The Realtor has kept their client’s best interest in mind at all times by providing them with thorough and relevant information in a fair and objective manner.
2. The Realtor has minimized their client’s stress by being capable, responsive, communicative and proactive.
3. The Realtor has treated all parties involved with respect and professionalism.
4. The Client’s objectives have been met.
With these items checked, the Realtor should feel that the commission has been earned and should have a satisfied client that will provide future business through additional transactions and referrals.
Unfortunately, not everyone has the same concept of “earning” their commission. For example, I represented a client recently that needed to sell their home quickly in order to relocate for their job. It was a great property and after just a few days on the market a prospective buyer expressed interest. Since she hadn’t yet been pre-qualified for a loan, I gave her the names of several local lenders to get pre-qualified. After chatting a while about the property, she said she would call back after getting pre-qualified to set up an appointment to view the property. About a week later, I got a call from a Realtor in Galveston requesting information on this property for their client. Turns out he was calling on behalf of the same prospective buyer that had earlier contacted me. Instead of calling a local lender like I suggested, she contacted an internet lender based in Austin. The lender then directed her to the Galveston agent that he had an alliance with.
As it played out, I learned that the Galveston agent only handled referrals from this mortgage lender, had another full-time job, was inexperienced , and basically had very little time or ability to handle their client’s transaction. Additionally, neither the Realtor nor the lender understood or was willing to learn anything about our local market. In other words, they mostly wanted to “receive” their commission, not “earn” their commission. Unfortunately, the client’s advisors simply couldn’t get it together and were unable to close the deal. So the contract fell apart and the home was sold to the next person in line.
Unfortunately, this scenario is being played out with more and more frequency. Alliances are being formed between the various individuals in the real estate industry. Knowing that they are unlikely to ever get a referral or repeat business, they have to rely on the internet to cast a wide net to get new business. So they invest heavily in an internet website making grand promises to capture clients. But in reality are more focused on generating commissions than helping their clients successfully navigate through a major life decision.
Fortunately, there are many fine local Realtors who still feel that a successful business is built through satisfied clients. And as long as satisfied clients are the mission and the commission is not the mission, everything else will fall into place.
If you are looking for a home, I would love to have an opportunity to earn you business. I can be reached at 936-537-1656 or Claudia@ClaudiaHohlt.com.
Sunday, May 8, 2011
Demystifying Short Sales
There has been an increased interest in “short sales” over the past several years. In 2010, about 2% of all single family homes sold in Montgomery County was identified as short sales. But the number has been growing each year. A short sale is essentially a pre-foreclosure arrangement where a lender agrees to accept a sale’s net proceeds as full payment of the homeowner’s outstanding debt. It is a viable option when a homeowner can no longer make their mortgage payments, their home is worth less than the amount owed, and efforts in acquiring a loan modification have been exhausted.
So how is a short sale different from a foreclosure? To a lender, a short sale prevents the legal costs associated with a foreclosure, eliminates the holding costs associated with owning the foreclosed home, and minimizes the risk associated with an unoccupied dwelling. To a home seller, a short sale has the potential to be less damaging to their credit score and could indicate to future creditors that they were proactive in mitigating their lender’s losses. It is also a less traumatic process for the home seller as it allows a more orderly transfer of the home and enables the seller to make a more graceful exit. Under certain circumstances, the home seller can even qualify for relocation assistance under the Home Affordable Foreclosure Alternatives (HAFA) program administered by the U.S. government. Details of this program can be found at www.makinghomeaffordable.gov.
For someone interested in a short sale, an experienced Realtor can be helpful in navigating through the process. One of the first steps for the homeowner is to contact their lender’s loss mitigation department to discuss their situation and give permission for their Realtor to communicate with them. The bank will expect evidence from the homeowner that a hardship has been incurred, there is an inability to make ongoing mortgage payments, they are unable to qualify for a loan modification, and there are no other assets to pay all or part of the debt. After the bank is on board, a short sale is handled much the same as a traditional sale, but with the bank negotiating offers, not the homeowner. And although there are a few more steps involved, most experienced agents can easily handle a short sale.
There are some things that homeowners should be aware of when considering a short sale. A second mortgage, for example, can make a short sale more challenging. The difference between the lender’s proceeds from the sale and the amount of the outstanding mortgage may or may not be forgiven by the bank, although the merits of pursuing the remainder through a judicial action would appear fruitless considering the documented hardship of the seller. If the debt is forgiven by the lender, the amount forgiven is taxable, unless the home is a principal residence. In that case, the amount is not currently taxable under the Mortgage Forgiveness Debt Relief Act of 2007.
In recent years, short sale negotiation companies have attempted to insert themselves into the process. Their claimed expertise is to handle the negotiation with the bank on behalf of the listing agent. To compensate them for their involvement, the homeowner is typically required to sign a contract requiring any future buyer of their home to pay the negotiation firm a fee. This fee can be significant and along with its unusual nature can sometimes be offensive to potential buyers. Because of this, home buyers looking at short sales should always inquire upfront about any fees that they would have to pay to a short sale negotiation firm, so that it can be factored into their offer.
Fear of losing one’s home is something none of us ever want to experience. But unexpected hardships can happen to any of us. If you are a distressed homeowner in fear of losing your home, be sure to discuss your options with trusted advisors who have your best interest at heart. And if you conclude that you can no longer afford your home and are upside down on your mortgage, be sure to consult with an experienced Realtor who understands and has direct experience with short sales.
So how is a short sale different from a foreclosure? To a lender, a short sale prevents the legal costs associated with a foreclosure, eliminates the holding costs associated with owning the foreclosed home, and minimizes the risk associated with an unoccupied dwelling. To a home seller, a short sale has the potential to be less damaging to their credit score and could indicate to future creditors that they were proactive in mitigating their lender’s losses. It is also a less traumatic process for the home seller as it allows a more orderly transfer of the home and enables the seller to make a more graceful exit. Under certain circumstances, the home seller can even qualify for relocation assistance under the Home Affordable Foreclosure Alternatives (HAFA) program administered by the U.S. government. Details of this program can be found at www.makinghomeaffordable.gov.
For someone interested in a short sale, an experienced Realtor can be helpful in navigating through the process. One of the first steps for the homeowner is to contact their lender’s loss mitigation department to discuss their situation and give permission for their Realtor to communicate with them. The bank will expect evidence from the homeowner that a hardship has been incurred, there is an inability to make ongoing mortgage payments, they are unable to qualify for a loan modification, and there are no other assets to pay all or part of the debt. After the bank is on board, a short sale is handled much the same as a traditional sale, but with the bank negotiating offers, not the homeowner. And although there are a few more steps involved, most experienced agents can easily handle a short sale.
There are some things that homeowners should be aware of when considering a short sale. A second mortgage, for example, can make a short sale more challenging. The difference between the lender’s proceeds from the sale and the amount of the outstanding mortgage may or may not be forgiven by the bank, although the merits of pursuing the remainder through a judicial action would appear fruitless considering the documented hardship of the seller. If the debt is forgiven by the lender, the amount forgiven is taxable, unless the home is a principal residence. In that case, the amount is not currently taxable under the Mortgage Forgiveness Debt Relief Act of 2007.
In recent years, short sale negotiation companies have attempted to insert themselves into the process. Their claimed expertise is to handle the negotiation with the bank on behalf of the listing agent. To compensate them for their involvement, the homeowner is typically required to sign a contract requiring any future buyer of their home to pay the negotiation firm a fee. This fee can be significant and along with its unusual nature can sometimes be offensive to potential buyers. Because of this, home buyers looking at short sales should always inquire upfront about any fees that they would have to pay to a short sale negotiation firm, so that it can be factored into their offer.
Fear of losing one’s home is something none of us ever want to experience. But unexpected hardships can happen to any of us. If you are a distressed homeowner in fear of losing your home, be sure to discuss your options with trusted advisors who have your best interest at heart. And if you conclude that you can no longer afford your home and are upside down on your mortgage, be sure to consult with an experienced Realtor who understands and has direct experience with short sales.
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