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?  :)

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 . . .

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.

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!

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 the NY Times Business Section did mention down toward the middle:

"Construction added 27,000 jobs, health services added 32,000 (though none in hospitals) and finance, insurance and real estate added 27,000, the most robust of three straight advances."

So what do YOU think those new real estate jobs consist of? Or is it propaganda?

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. :)

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?

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!  :)

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 client, ask more questions before you agree to do business with them. This is a critical time to make a good business decision that could have far reaching implications in either direction. And it's a lot easier to do early than late.

Here are some of my red flags where prospectives are concerned: As Jeff Foxworthy would say, "They might be a problem if . . ." :

They badmouth agents.
They are not willing to talk to a lender or show their source of funds.
They brag about suing, having sued or being willing to sue people.
They indicate they know more than you do about your business.
They declare 'their business' none of yours.

Please feel free to add your red flags if you wish! :)

To avoid misrepresentation, which is the most often-named in claims against brokers, be the provider of sources of information, not the source itself. Anything you pass along to consumers needs to be factual, which is a 'duh' but checking and double checking is a good practice. Every property is unique. It is feasible that one lot in a subdivision may require different utilities or have different zoning, even than the one across the street! Do your homework and pass the findings--with where from, who you talked to and their contact info--along to your client.

Learn to edit your e-mail communications and especially text messages.  We zip those puppies off at stop lights or between meetings and sometimes in the midst of distractions. That won't excuse us should those words be recorded by you client (and they can be!) if they are ambiguous or misleading (and they can be!).

Remember:

Your words do not recede into the past after you hit the 'send' button. They advance into the future. Make sure it is not to haunt you. :)

Negligent referrals are a concern, We are all networking and our reach is very wide. Make sure it is clear to your client that you are suggesting, not endorsing. Advise your clients that they can search for an expert on their own and provide some search points to start from.

Failure to disclose is another hot spot for liability. If you are in doubt, talk to your broker. But the general rule is if you wonder if you should disclose, you probably should.  :) Document disclosure and confirmation that your recipient received it.

Another really sticky issue is 'how much you should help as opposed to the client doing for themself' which goes to fiduciary duty but is also a huge liability risk. We are conditioned to be helpful and indeed, that is our greatest skill in this business. But the moment we begin doing for our client without their participation, we are on a slippery slope.

But we work with busy people who rely on us to keep it together, and THAT is our duty as well. How to do it all safely?

Whatever you are doing on behalf of your client or as part of a transaction, DOCUMENT it and ADVISE your client in writing. Get their acknowledgement in writing or document the date and time of your efforts. Track your e-mails and stay organized.

Use the 123 rule: Tell your client what you're gonna do--do it--then tell your client you did it.

Keep the time and date stamp on your computer accurate. Make sure you're in the right time zone (I know, another 'duh' but computers can get amnesia after an error or system restore. Be aware of what's going on in that lower left hand corner of your desktop. :)

Home Warranty.
Home Inspection.
Survey.

Three of the best risk reduction applications of all!

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! :)

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 . . .

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.

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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WOW! I love guts. Big, happy, all-in, GUTS! Chutzpah. Cojones. Stones.

Check out this cool STORY about the owner of Facebook, a 23 year old who dropped out of Harvard to give his all to his dream, THEN took a huge entrepreneurial risk in turning down the mother of all birds in hand to see that dream through long-term.

Of course, he may be too young at 23 to understand the difference between 240 million and a billion dollars. I don't think I would have had any idea at 'half my age'.

He also may be less aware of the value of time than those who have watched it fly by in later years and seen that it's not infinite in supply.

He may not care about either.

Or is that even the issue? Isn't it more like "in for a penny, in for a pound?" Is there really a price tag at all on excellence and living your bliss?

So many questions came to my jumbled, holiday-partied mind while reading that story:

Do you believe in what you're doing enough that you would refuse a billion dollar offer? How about a million? Can you see 'down the fairway' with key choices you make? Are you looking that far ahead?

Since the future does not exist in the present, is it healthy to focus on the long term to the exclusion of all else? Are we alive if we're not risking every day?

IS BEING OFFERED, THEN TURNING DOWN A BILLION BUCKS THE BIGGEST RUSH?  (I will let you know when I find this out!) :)

Do you believe in what you're doing enough that you would keep going, even if you were in the negative cash flow stage? Many are at this point in many businesses, and certainly in our industry.

Who has the guts and love for their profession to ride out the bumps and keep going? See the stumbling blocks as stepping stones? See why the Chinese character for 'crisis' is a combination of 'opportunity' and 'riding the wind'. Crisis is opportunity blowing your way!

This statement from the article was key for me:

"When you live in alignment, and take responsibility for the choices you make, when you live each day with focus, and make choices that are aligned with your dreams, hopes and visions, then you will own your life."

Anything else is a distraction.