Real Estate Magic!

Can Someone Illuminate Me? Probate Properties

2008-08-17T20:13:00Z

I am just beginning my research and it's Sunday and I'm feeling a bit lazy enjoying the beauty of the day . . . :)

Received a call from a former client on Friday. He wanted to enlist my assistance with an exciting new business he and his wife just completed a course of study for.

They say they are qualified and able to procure properties in probate for their investor clients prior to completion of the probate.

They wanted me to comp the properties and in return, I may get the listings when their investors put them on the market for resale.

I told him that I would research and respond later if I was interested.

My first thought was HAHAHA! WHAT are they taking money to teach people to do nowadays?

I'm suspending judgment however as I am really unaware of how this could work. And new things are always happening. So riddle me this . . .

First thing, if a property is going thru probate, isn't the ownership of the property in flux? So how could a clear transfer take place before the probate is completed?

VanceLawyerGumba? Anyone?

Tell me I'm a dumb blonde who is regressing in intelligence daily. I can take it. After all, I'm in real estate and can withstand sharp blows to my battered ego. :)

Or tell me that, and how, it can be done legally.

Then, tell me how there would be advantage for my company to be involved in this.

And if we were, why on earth involve an unlicensed middleperson?

It Goes Both Ways! (no, not AC-DC though different strokes . . .) ;)

2008-07-28T17:18:00Z

We NEED to work together with our vendors in this business. I know, that seems like the height of redundancy. But it seems to need review on occasion . . .

And (sigh) again, as in last month's post, I am referring to the relationships we build and maintain with our mortgage people . . . without whom few consumers would buy properties, and few brokers would get closing checks. :)

I won't lie to you. I prefer Arizona lenders. The more local the better. (I wanna be able to walk to your house with my dog and a gun - KIDDING) Seriously, I've got huge respect for some of our out of state pros who have been above reproach on our deals.

But you gotta:

UNDERSTAND THE AZ PURCHASE CONTRACT

KNOW THE AREA and its properties.

Case in point:

What does a mutual cancellation mean? Duh! The buyer and seller BOTH want to cancel. The property failed to appraise for the sale price. Seller doesn't want to lower the price. She would rather hold for a bit longer.

Should be cake.

One of my agents called me last nite to tell me that the (out of state) loan guy says the deal cannot be cancelled.

Um . . . who exactly died and made HIM one of the principals to this transaction?

They refused to issue a loan denial letter, claiming it's not a loan denial when the seller won't reduce price to the appraised value.

Our Contract calls for the property to appraise for at least the sale price.

My agent was also told that since she ordered the inspections, SHE needed to pay for them.

Our Contract calls for the Buyer to perform inspections AT BUYER'S EXPENSE.

Here's my point:

Time was wasted and grief factor increased because loan people attempted to control the real estate brokers' part of the transaction.

Buyer and seller are both cool and we'll work with both principals again. And we'll provide the buyer with a list of competent local mortgage pros who can assist next time.

Mortgage people, please read our Contract before you tell us OR OUR CLIENTS 'how it works'!

We CAN work together if everyone knows their role . . .

Seat Belt - THEN Crash - Not V/V!

2008-06-20T14:42:00Z

I closed a deal with some absolutely adorable first time buyers last month. A month ago, to be exact.

As is my offices SOP, I employ Docusign which is a wonderful program for electronc signatures. Those signatures are legal and acceptable in lieu of ink signatures 'in most cases' AND we ALWAYS ASK FIRST.

With HUD deals, for instance, they want ink siggies. No problema.

I was shocked and astounded when I received an email from title company day before yesterday. The loan processor FROM A DEAL THAT FUNDED AND CLOSED A MONTH AGO was on the phone shreiking that the contract had 'STAMPED SIGNATURES' on it. Where was she a month ago?

I had specifically asked my loan person if it was OK to use electronic signature when we executed the contract -- and she said she would talk with the loan processor. The loan person told me it was fine. However, apparently, the loan processor was asleep at the wheel.

And now she wants to make it others' fault.

I arranged for these sweet buyers - who did everything by the book - to make a special trip back into escrow and ink sign everything, so we could make the funders happy. They were accommodating, fortunately.

THEN, I got a nastygram from the loan processor about how I had no business submitting something 'STAMPED' and ordering me to correct it.

That loan processor will never be involved in any of my transactions again. And believe me, I will ask.

LOAN PEOPLE: We are not here to make your lives miserable. We want to work WITH you. We appreciate you.

But DO NOT ignore YOUR responsibilities, fail to manage our transactions timely -- and then make it OUR FAULT. That is petty and small. I can deal with anything but I refuse to deal with tiny. Tiny is beneath all of us.

And mortgage supervisors, you may wish to educate your staff about our industry and its STANDARDS which are now electronic.

I know, I am usually nicer than this. But there apparently are still some issues in our mortgage industry. And I won't mention any names. Except that I think this particular company which is nationwide, has closed up shop in many many many locations. Can you guess who it is? :)

YES YOU DO need flood insurance!

2008-06-09T14:39:00Z

I live in Fort Mohave, AZ - otherwise known as "One Big Floodplain."

To us, elevation certificates, raised grades and flood policy declarations are a way of life. Just faxed mine in to my lender a few days back.

The flooding in the Midwest is of course all over the news and my sympathy goes out to anyone we do or do not know who has been affected by it.

I just saw a story about residents in Indiana who said "We don't have flood insurance because . . . we're not in a floodplain."

That is something I have heard too many times. Once is too many to me!

Just because FEMA has not determined that you have a greater than 1 in 100 chance of being flooded does NOT MEAN you will not be flooded.

Your homeowner's insurance DOES NOT cover you for flood damage. Check your policy.

You probably need flood insurance if you own property!

Someone give me an example of where you would absolutely positively NOT need to be covered in case of flooding. (It's early for me yet) :)

The craziest thing I've ever heard is the people who live ON THE RIVER out here in a non-designated floodplain area. They have 500k - 1M+ homes and no flood insurance? There are dozens of those people.

Scary . . .

Summer Summer Summertime!

2008-05-21T14:58:00Z

I am lucky and blessed beyond measure -- I live on the BEAUTIFUL Colorado River where summer is all about watersports and soaking sun with toes in sand.

The most fun thing to do, I think, is float on a huge raft, with radio and cellphones in plastic bags. :)

With my Blackberry which can retrieve faxes, browse MLS and all, it's easy peasy to continue to do business while we enjoy life on the River with our friends. I take pride in that we can ALWAYS be found and are always willing to help.

It's a simple but very gratifying lifestyle here.

So what exciting things are YOU doing this Summer? And how do you keep business going while you enjoy down time? Do you multitask like we do or do you get someone to cover you and just escape?

That's fun (and necessary, on occasion) too . . . recharge the batteries.

Foreclosures, yes. But Appreciation too!

2008-05-17T02:25:00Z

I'm one of those people who can't wait for the ending of the book - I have to read the last chapter first.

Then I enjoy 'retrofitting' and reconciling the ending with what led to it. I probably should have been one of those CSI's - if not for the aesthetics. :)

So I found it quite interesting when I read this (May 9, 08) edition of Gary North's Specific Answers featuring these four maps from the Federal Reserve System starting last quarter of 2004.

You can see where growth and delinquencies began, then veered out of control. No surprise now, but I think back to hearing a president of a very big R Association giving a speech in 2006 - telling a hundreds of leaders of Associations all over the state - quote - "There is no bubble."

Too bad he - and most of us - didn't see the maps from 04 on! It was THERE. Not in black and white, but in RED.

The very last map shows the House Price Indexes.

Correct me if I'm wrong, but isn't MOST of the United States still increasing in value?

Looks that way to me! :)

OK, enough reminiscing. The past is irrelevant (except what we can learn from it).

Time to think ahead!

Where Are The Real Estate Jobs?

2008-05-05T14:07:00Z

While I luxuriated with a cup of strong java this AM, my MySpace Instant Message played it's little 'fly by' alert that I had a message. It was a friend of mine up in the Pacific Northwest who watches the stock market: He said, "LMAO, the govt report on unemployment said Real Estate added 30,000 more jobs last month... What? Repo Men? I think it is propaganda!" My knee jerk reaction was, "Probably in loss mitigation, a la Titanium Solutions , et al." Went to check out some sources. This one from...(read more)

Reminder - The Internet Is Not A Real Estate Professional

2008-02-12T14:40:00Z

I read the following in a newsletter issue from a real estate listings (mostly land) site:

<<CORRECTIONS AND CLARIFICATIONS
In the last issue, we stated that it was not necessary to have a survey if a property was located within a platted subdivision or town.>>

Platted subdivisions need resurveying on many occasions. People encroach and surveyors make mistakes. And it's not all that rare that bad surveys have been recorded. On entire subdivisions. A client of mine lost 18 ACRES when a new survey was done on his land. Not his fault, just more accurate surveying tools exist now than the last time it was surveyed. And still they can be wrong.

I don't believe a seasoned agent would/should arbitrarily state 'a survey is not necessary' to a client unless perhaps the client was buying a condo! The potential liabilities for selling land are more numerous than with improved properties. If the client can't use the land as intended because of undiscovered material facts prior to ownership, they--and the broker--may be in for a world of hurting!

And on many occasions, improved properties may need a 'stake and flag' to mark the boundaries. 'Specially when the next door neighbor's putting up a new fence or repouring their driveway! :)

I think that with regard to inspections in general, you need it until you determine (via advice by a specialist in that area) that you don't. An experienced agent can help locate the specialists that will help a client discover what is necessary, starting broadly (such as home inspection), then pinpointing areas of concern (such as soil test, environmental studies, roof, radon, mold etc.)

But wow, does bad information get around on the internet! I'm sure the editors of the portal didn't intend for the info to be incorrect. But I'd lay odds that the original writer was not a real estate professional. Probably someone who found the info somewhere else and perpetuated it.

How many times do you think that 'burned buyers' were lulled into a false sense of security by the internet, ignored their broker's advice to further investigate - and later, attempted to blame the broker for the buyer's own negligence? Are you, the agent, documenting those times you advised a client to heed your suggestions, not the nameless, faceless internet?

How many times have you seen completely erroneous information on listing portals?

This past week? :)

Even after it's been corrected, the damage is done.

It's like pee in a pool, you can't get it out. :)

I'm The Media Version 3.0

2008-02-07T15:47:00Z

In keeping with my mantra "We're The Media", I want to share a cute little tale about a complaining 'suspect not prospect' who phoned yesterday while I was training a new agent:

First, he called to tell me my flyer box was empty and I had failed to keep current flyers in the box. I had actually removed the flyers because we had rain. Did you want to know the price? (a DUH, or so you'd think)

Negatory -- he was sure it was overpriced because these agents around here don't know how to price properties. And he KNOWS real estate 'cuz he's a BUILDER! In a state nowhere near AZ. (I am refraining from laughter so far)

Well sir, I sold the last house on this street this past Summer for 40k more than this one is listed for. We had no problem with appraisal as there are comps that support the price. This house is actually listed below market right now. (I did not inform him that it just got the OK to go short sale and would be someone's super deal soon)

I smiled my voice. Got him to talk a bit more. Mostly bitching about how agents never call him back (see my other recent blog about red flags!) and the builders are living high from the dollars they made off building cheap and selling high (I didn't have the heart to tell him that builder is probably bankrupt now from a huge loss they took on another subdivision that didn't fly . . . but as a dumb agent, I don't know anything).

And then . . .

He said that for the last 2 years, he's been renting. For 1200 a month! Gasp! Where the market rents are around 800. Maybe he shouldn't have bought but he sure should have moved!

A mortgage on the price range he was looking at would have been around 1000 PITI if he had decent credit and a down payment.

And he basically flushed 30k while he was carping about the market and agents! His landlord should be happy, but I can see why he isn't.

So listen to me, I'm the media!

Check with your agent and do some basic math. You may be ready to buy. You may be overdue!

A new mantra will be chanted soon: "If I had only bought in 08" . . . remember that golden not-so-oldie?

Things That Will Unfailingly Make Me SMILE :)

2008-02-04T16:30:00Z

I have an investor client who's been monitoring listings for a while now. He wrote me to ask about a property that has piqued his interest.

He had a question I couldn't answer, and being unfamiliar with that particular subdivision, I shot an e-mail over to the listing agent at 7 am.

I GOT AN IMMEDIATE RESPONSE, with the answer to my questions AND the gate code should I wish to show the property.

By 'immediate', I mean within 5 minutes. BRAVO!

What a good practice! I checked to see what other listings that agent had. If an agent is this easy to communicate with, they probably will be easy to transact business with. Perhaps I have clients for some of the other inventory! And then there are referrals.

I'm fairly sure I'm not alone in this mindset.

Check your e-mail and respond quickly. Especially to agents. Of course, you should to everyone else too.

You will sure make a friend of me! :)

Risk Reduction 101

2008-01-26T16:35:00Z

To Arizona real estate brokers, Bob Bass is a good guy. He's an Arizona real estate attorney who defends brokers. If you've had the opportunity to sit in on one of his classes, he instructs us on how to protect ourselves and our clients via applied risk reduction techniques. (That's right. We protect our clients, we are all safer.) Here are some of the risk reduction techniques I've employed: Start off with client selection. This is entirely manageable from our end. If you feel 'off' about a prospective...(read more)

So Long, Farewell, Auf Wiedersehen Adieu!

2008-01-15T15:34:00Z

One of my agents worked with a 'suspect-not-prospect' last year to no avail. He recently returned and wanted to again waste her time and my office's. My agent was uncomfortable and consulted me. She and I determined that he had to go. I fired him.

Now before I tell you how and why, let me state that it is not my style to be unkind. We welcome new business and will give the benefit of the doubt a time or even two. I encourage my agents to do their best and try their hardest to accommodate and assist our clients.

But when the red lights flash, we're paying attention.

After a few qualifying questions, I learned the following derogatories about this person:

Needed to sell his house last year, when my agent drove him around for half a day, during which he complained nonstop about our area. House still not on market yet. Did not know when would go on market. "Not worried about it, it will sell fast." House in a state where the market was inflated and is probably not going to sell fast or perhaps at all now.

Already working with two other agents in two neighboring towns, both in our service area. (lied last year to my agent, said he had driven around the area with a friend and had no agent)

Mentioned that he wanted a 'non minority neighborhood'.

Said 'Whoever could convince him their area was the best would get his business.'

I considered this overwhelming evidence against taking on this person as a client.

So I told him I regretted we could not assist him as he was already represented and we did not intend to interfere with an established agency relationship. I wished him well and the very best of luck.

He was not pleased at this 'rejection'. Wrote me a couple of notes designed to insult and condescend that only served to confirm my decision was correct. Then he wrote my agent and told her she should quit working for me so 'he could choose her again'. We got a good laugh on that one.

Why am I writing this? Because in a buyer's market, a seller's market, down or up, real estate professionals will be challenged to keep standards and self esteem high.

We have the right to choose our clients. Every decision we make is a business decision!

Consumers need to understand this and get over the mindset that we are all desperate for business to the extent that we would waste time and resources with non principals, violate laws or ignore ethical guidelines.

And it is not our job to convince anyone of anything -- except when negotiating on our clients' behalf. To try to convince someone to live in our area that may not be ideal, to me, would be a breach of ethics. No area is for everyone. People need to look at the information we provide and resources we direct them to and make their own decisions. Do NOT take anyone's monkey on your back! (ABR 101)

Finally, and this is the bottom line -- while you are wasting time with the wrong client, you are tied up and unavailable for the RIGHT ones.

Give till it feels good - not till it hurts! Safe hunting, everyone! :)

What's Wrong With This Pic?

2008-01-10T17:49:00Z

This morning, I received a beautiful piece of marketing with a BIG BOO BOO.

This was a flyer for a 1M+ home. The photos were gorgeous, the description enticing, all the information I would have wanted was in there.

The flyer mentioned that the seller was an owner/agent.

All the contact info was at the bottom . . . including . . .

AN AOL E-MAIL ADDRESS!

WHA?

An agent who owns a million plus home SURELY can afford to have their own domain e-mail addie?

Agents, be aware that when you use AOL, Yahoo, Hotmail or Google etc for an e-mail address, you are undermining your branding (as these portals are your competition!) and possibly limiting the possibility your message will be read by many viable prospects because of either incoming or outgoing spam filters.

The only time an AOL addie is a good thing is if you travel a lot, because it is more easily accessible in remote areas or foreign countries. So it's good to have as a backup.

The only time a 'portal' addie is a good thing is for when you submit to search engines or send off for anything that will get you back a lot of spam.

Brand yourself. Get a domain and use the e-mail from it.

I sure hope she can sell that beautiful home . . .

How's Your Peripheral Vision?

2008-01-10T16:52:00Z

So I'm sitting at a video Keno machine (Carey, you'll be even more jealous when you find out how much I won!) :) this past weekend, playing 4 card Keno. That game has four cards on one screen, and I noticed that when the numbers are being called, almost invariably the card I'm watching is not the one where the most numbers are lighting up.

What? I cannot bend this inanimate object to my considerable will? Doh! ;)

Got me thinking . . .

How often are we overly focused on one 'main' goal, only to find the really good action going on 'on the sidelines' instead?

There's a saying that where attention goes, energy flows.

HOWEVER, we can also block or even negate that energy by bearing down too much, fixating on a result and attaching to an outcome to the exclusion of all else.

It goes back to being flexible, holding on with a light grasp. Adhering to schedule but also moving around, veering off course for a moment and always keeping your eyes open to what is going on around you. Keeping your life and business fresh.

So I set my goals for the day, week etc like always, but I deliberately break away so I don't miss anything I shouldn't be missing. Try it! It makes you feel more in control and less a slave to externals.

Even if you don't drink coffee . . .

2007-12-25T16:42:00Z

This story, sent to me by a client, is a great reminder to be 'the cause, not the effect'.

In your business and in your life.

It's very easy to feel weighed down by externals.

We so often forget how powerful we are and sometimes, even give our power away.

Usually, a change of perspective and attitude will do the trick. It's amazing how quickly you can transform with that simple awareness.

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A young woman went to her mother and told her about her life and how things were so hard for her. She did not know how she was going to make it and wanted to give up She was tired of fighting and struggling. It seemed as one problem was solved, a new one arose.
Her mother took her to the kitchen. She filled three pots with water and placed each on a high fire Soon the pots came to boil. In the first she placed carrots, in the second she placed eggs, and in the last she placed ground coffee beans. She let them sit and boil; without saying a word.
In about twenty minutes she turned off the burners. She fished the carrots out and placed them in a bowl. She pulled the eggs out and placed them in a bowl. Then she ladled the coffee out and placed it in a bowl. Turning to her daughter, she asked, 'Tell me what you see.'
'Carrots, eggs, and coffee,' she replied.
Her mother brought her closer and asked her to feel the carrots. She did and noted that they were soft. The mother then asked the daughter to take an egg and break it. After pulling off the shell, she observed the hard boiled egg.
Finally, the mother asked the daughter to sip the coffee. The daughter smiled as she tasted its rich aroma The daughter then asked, 'What does it mean, mother?'
Her mother explained that each of these objects had faced the same adversity: boiling water. Each reacted differently. The carrot went in strong, hard, and unrelenting. However, after being subjected to the boiling water, it softened and became weak. The egg had been fragile. Its thin outer shell had protected its liquid interior, but after sitting through the boiling water, its inside became hardened. The ground coffee beans were unique, however. After they were in the boiling water , they had changed the water.
'Which are you?' she asked her daughter. 'When adversity knocks on your door, how do you respond? Are you a carrot, an egg or a coffee bean?
Think of this: Which am I? Am I the carrot that seems strong, but with pain and adversity do I wilt and become soft and lose my strength.
Am I the egg that starts with a malleable heart, but changes with the heat? Did I have a fluid spirit, but after a death, a breakup, a financial hardship or some other trial, have I become hardened and stiff? Does my shell look the same, but on the inside am I bitter and tough with a stiff spirit and hardened heart?
Or am I like the coffee bean? The bean actually changes the hot water, the very circumstance that brings the pain. When the water gets hot, it releases the fragrance and flavor. If you are like the bean, when things are at their worst, you get better and change the situation around you. When the hour is the darkest and trials are their greatest, do you elevate yourself to another level? How do you handle adversity? Are you a carrot, an egg or a coffee bean?

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Mmmm! I smell double espressos!

Happy Holidays All! :)