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The Short Sale Boomerang! 

I'm starting to see a boomerang affect from the high volume of short sales in our area.  I recently had a client who wanted to buy a property.  I met with him and his wife, and I had them get prequalified with their lender and they qualified for a nice property.  Off we went in our search, and after a couple weeks we found a great house.

The only issue with this house was that it was an REO and required a certain lender do the pre-qual before the seller would consider a contract.  So, I sent my buyers off to a friend who worked at that lender with the expectation that they would be back shortly with another prequalification letter.  It would be easy since they had already been prequalified, right?  That's what I thought, anyway.

After the interview, the lender called and asked how much my clients had shared with me about their financial history.  They had only discussed what their bank said in their original pre-qual letter.  The lender couldn't share their personal information because of confidentiality, but with their approval, she told me that they had a short sale last year.  In the days that followed, I confirmed that my buyers had done a short sale the year before.  When asked what led to the short sale they explained that they didn't like their neighborhood or the trend it was following, and they wanted to move out of it so their children wouldn't grow up there

Wow!  That was information that needed to be shared up front in the beginning of our interview process.  Later, I emailed them to get the name and number of the lender that had prequalified them prior to our visit with the second lender.  I'm still waiting on that info three weeks later.  That experience has made me a little more cautious about taking someone at his/her word.  I know it's necessary to trust, but I believe I will need to start a "trust, but verify" policy with new clients. 

"Short sales for convenience" are going to catch a lot of people off guard when they start their next property search.  There are ways to buy when you've had a short sale recently, but it will likely be with investor tactics and not through FHA.  People who are contemplating a short sale should be advised that short sales are not a "get out of jail free" card.  When a seller is trying to balance the options and a short sale is considered we need to be completely honest with them if it's not a true hardship situation.  Choices have consequences. A short sale may be the only route some sellers can take, but it should never be used to blow off a mortgage commitment that is not a hardship situation.  IMHO.

Someday, Your Kids Will Think . . .

No matter how successful and accomplished you are, or how many degrees you earn, or how widely respected in the community you are, at some point in your life your kids will think you're a goober.  I remember growing up watching my mom as technology began to make very rapid advances, and she was totally unaware of them.  So, whenever conversation turned to the latest technological advances her contributions to conversation were often classic. 

But, it doesn't have to be technology that gets us parents that broad smile from our children.  It can be something very simple.  This week I was grocery shopping.  I love cookies, and my favorite cookies were on sale.  Each pack was $1.00.  Wow!  One dollar seemed like a steal for the extra yummy cookies.  So, I loaded up a few packages of cookies, and then I noticed a little sale sign that said 5/$5.  Wow!  Another great deal!  I can buy one for $1 or I can buy 5 for $5. 

In my totally unconsious state, I loaded five into my cart and headed to the checkout.  About two isles over I had an "ah ha" experience.  Wait!  One for $1 is the same as 5 for $5.  Ding!  A goober moment.  I could have taken them back and only purchased what I really wanted, but I really wanted all of them.  So, I checked out and headed home. 

Of course my lovely wife couldn't wait to tell my sons about the great deal I got on cookies.  And, in that brief moment, I was no longer the brilliant accomplished business owner.  I was the "goober" dad they have come to love.  It was OK.  Actually, I laughed first and thought the same thing about me.

If this has happened to you don't fret.  It's a stage of life I call "Mental Pause."  All of us go through it at some point.  It's not terminal, it will pass and you'll be back to normal.  At least until the next moment when you have a bout of "Mental Pause."

You Might Be A Realtor, If . . . (edit/delete)

During a recent real estate class I realized that Realtors speak in code.  As I watched the poor newbies in that class I wondered if they felt like they had fallen into a black hole and popped up in some foreign land where they didn’t speak the language.  Those of us who were experienced in the field rattled off conversation that left the new realtors looking bewildered and lost.                 
                   
This revelation led me down one of those spontaneous rambling thought processes that often leads to my blog posts, and it looked something like this:

●    You might be a Realtor if your dining room table doubles as a desk.
●    You might be a Realtor if your car cigarette lighter doubles as a charging station for your laptop or Ipad, Smartphone, GPS, etc.               
●    You might be a Realtor if your idea of a short sale is a contract that ratified in 12 hours or less.
●    You might be a Realtor if your broker is your first emergency contact.
●    You might be a Realtor if you have a wireless printer stored in your car trunk.
●    You might be a Realtor if you have a vanity license plate that says BUYNOW, combined with a window decal “www.SuperRealtor.com.”
●    You might be a Realtor if your first child’s initials are EMD.   
●    You might be a Realtor if you’ve learned to put on eye shadow, eat a sandwich and set up your next appointment while driving down the highway.
●    You might be a Realtor if you’re an REO Specialist with no foreclosure experience.
●    You might be a Realtor if your sales team includes your spouse, kids and the dog.
●    You might be a Realtor if the string of initials after your name would make a PhD green with envy.       
●    You might be a Realtor if your Christmas cards include a business card.
●    You might be a Realtor if every up or down real estate news feed inspires you to post, “It’s a great time to buy.”
●    You might be a Realtor if you have interchangeable sign riders that say, “It’s a buyer’s market. Buy today!” or “It’s a seller’s market. Sell today!”
●    You might be a Realtor if you have mastered the art of describing a pole barn as “Beautiful country setting, spacious property with plenty of room to expand and wonderful views of wildlife.”
●    You might be a Realtor if every listing description ends with “This won’t last long.  Act today!”

You get the idea.  So, what would be on your “You might be a Realtor” list?

Are We Falling Apart? (edit/delete)

Is it just me or are we as Americans falling apart?  I've noticed a trend on TV lately that has me a little worried.  Let me give you an example.  There is a commercial of a middle-aged lady who can't find her car in a parking lot because she can't remember where she parked it.  Been there, how about you?  Fortunately for her there is a wonderful company that has created a miniature digital recorder she can carry on her key-chain, and if she remembers to record her location before she leaves her car, bingo!  Problem solved.

In another commercial, I saw that same lady, but this time she couldn't hear.  In this commercial she got another small device, I believe it was called "Loud and Clear,” that helped her listen to her pastor, and birds and even her TV while her husband sleeps soundly beside her.  It looks a lot like a cell phone wireless earpiece.  So it blends right in, in bed.   I did find it a little strange in the same commercial that the same lady was walking around in the woods looking at nature while a guy is hunting nearby who also can't hear without the device.  That really seemed like a scenario for disaster, but I digress.

It didn't stop there.  The same lady shows up in another commercial unable to cut paper on a straight line.  She was so bad with scissors that she had to be isolated in a separate room on craft day.  So, some brilliant company created a cutter just for her.   So now, she can find, hear and join the happy crafters on craft day.  Oh, but her tale of needs weren’t over yet.  She eventually she took to farming.  Yep!  She's growing tomatoes.  Upside-down!  On the porch.  But, here again, she doesn’t know how to water them.  So, another clever company made a ball with a spike attached that automatically keeps her tomatoes watered.  And, if you’re horticulturally challenged, this is your ticket!

Her life is obviously full of challenges because eventually she started having trouble getting out the car that she can't always find without her little digital recorder.  Another entrepreneurial sort inventor created a little round swivel block that gives her the ability to rotate on her seat and out the door she goes.  Best of all, she never wrinkles her slacks.

Just when you think technology has done just about everything they can for her she realizes she can't sit on the sofa and watch her favorite movie without having body parts exposed to the elements.  What woman likes cold toes?  Or, if her toes are warm toes her shoulders are cold.  So, Snuggie created the ultimate comfort item for her, a human sized fleece bag.  Now, she's nice and toasty.

I have a feeling one of these nights I'm going to see her snuggled up on the sofa staring at her favorite show, and then the announcer will break in and tell the consumer that she would enjoy her favorite show more if she could hear it.  But, she forgot her little digital hearing device that she was wearing at her craft class.  If she could just remember that she got two little digital hearing devices for just $19.95 because they doubled her order when she called right away.  But all is not lost.  She can rotate off the sofa, find the zipper on her Snuggie she can use her new cutting tool to slice her tomatoes and have a nice snack while she looks for her extra hearing device she got with separate shipping.  Like I said, I’m a little worried about us as a country, but I do see a lot of opportunities for witty inventors on the horizon. 

60 Seconds! What Would You Grab? (edit/delete)

My life is full of phone calls, meetings, appointments, contracts, leases, emails, returned phone calls, more emails,  deadlines, etc., etc., . . . you get the picture.  It's probably a lot like yours.  I was just thinking, "What would I do if I had nothing to do?"  What a wonderful question to ponder.  I need to spend more time thinking about that one because I definitely think it's worth exploring .

That made me think of another question I heard in a movie last year.  In the movie, "Leap Year" Matthew Goode (Declan) asks Amy Adams (Anna) what she would grab if she only had 60 seconds to escape a burning building.  Hmmm, what would I grab?  Now, I'm assuming that is knowing that the family and the dog are all safe and away from the fire. 

What would I grab?  I don't think it would be my files, lead lists, smartphone or laptop, digital camera, storage media, etc., but what would it be?  I'll have to admit I'm a little stumped.  Once my family and the dog are safe there isn't much else that would rise to that critical level.  With online backup programs, dropbox and other resources where a tech savvy modern business person can keep important documents, photos and contact lists, and so on, there isn't much I would need to be back up and running in a day or so.

So, I pose the question to you.  If you only had 60 seconds to escape a burning building what would you grab on the way out? 

Reflections in the Mirror (edit/delete)

While catching up on my blog reading I had a thought.  Of course blog reading should conjure up all kinds of thoughts or you're wasting your time, but this was an "outside of the blog reading" thought.  Or at least I think it was.  It doesn't matter. It went something like this, "Are we attracted to people who are like us, or do the people who are like us feel an attraction to us?" 

I've had a lot of people involved in my life over the past . . . . well, good while.  One of the consistent things about the people who end up closest to me is that they tend to be pretty smart, funny, clever and witty.  I'd like to think that's because they are a reflection of me, but is that the way it is?  Regardless, do I gravitate to them, or do they gravitate to me?  Or, do we meet somewhere in the middle by chance? 

If you've ever watched Winnie-the-pooh you know the character Eeyore.  Personally, I like Eeyore, but I've always wondered why he seems so, well, Eeyorish.  He has all these great friends around him that are full of life and energy, and yet, it doesn't seem to bring him up or cause dancing and singing.  I guess he just has an Eeyore kind of personality. 

In my life, I don't have many Eeyores.  Most of my friends, family, associates, cellmates (OK, I just threw that in there to see if you were still reading) and clients tend to be more Winnie-the-Pooh, Tigger and Piglet than Eeyore.  Of course I get an occasional Eeyore, but I noticed that if they are like Eeyore that they are either smart, funny, clever or witty or some combination of them all.  If they're smart and Eeyorish, I can deal with it because I learn something.  If they're clever and Eeyorish, I can deal with it because they catch me off guard and make me think.  If they are witty or funny and Eeyorish, I laugh and find them amusing.  But, if they are none of these things, I find them draining.  Is that because they are not like me, or because I'm not like them?

I go back to my original question, "Are we attracted to people who are like us, or do the people who are like us feel an attraction to us?" Now, the tricky part.  Are the people who are attracted to you more like Winnie-the-Pooh, Tigger or Piglet, or are they more like Eeyore?  I hesitate to use the word "vibes", but are the vibes that emanate from you attracting the people you want to attract?  If there is a big dark cloud outside your front door I have a feeling Eeyore is rounding the bend.  But, if the sun is shining and there is singing and dancing going on you might be attracting a Pooh, Tigger or Piglet.  They all have something to offer your life, but if you're a Tigger kind of character too many Eeyores will wear you down.

If you're a Eeyore kind of character Tigger will get annoying eventually.  Knowing which character you are will help you understand what kind of characters you will attract.  If you're in business and you're an Eeyore character, you may have to put on your Tigger face during interactions to keep customers coming back.  Remember, Eeyore wasn't under a cloud all the time.  Sometimes he was Eeyore, but no cloud. 

One final thought.  There is a 3 to 1 ratio at Pooh-ville.  That is probably a good ratio in your life if you're going to be healthy, happy and balanced.  You can only have so many Eeyores in your life before they start bringing you down.  On the flip side, if you're an Eeyore, you need to surround yourself with Poohs, Tiggers and Piglets to help bring a little extra sunshine to your life.  All four personalities can work together, but knowing which character you're most like will help you determine who you need to spend more time with. 

I'm Firing My GPS! (edit/delete)

I have a love/hate relationship with my GPS.  I'm thrilled to have it, and it has gotten me to many locations I was totally clueless about.  But, then again, it has  taken down roads that were no where near my destination.  Sometimes it has led me to places I have been totally unfamiliar with.  So, you see my love/hate situation.

My GPS has multiple voices.  After listening to each one, I picked Mandy.  Mandy has a lovely British voice that is sometimes a little more formal than most of my driving warrants, but she was better than some of the other choices.  After a few mishaps with Mandy I thought "I need a new GPS.  Better yet, I need a new GPS voice." I brought this up to my wife and that launched a long brainstorming session of potential new voice candidates.  Here's a sample of our list:

• Mr. T - "I pity the fool that doesn't turn right!"

• What about Dr. Phil -  "Alright, so your life is on a straight path, but you've got to turn right up here.  How's that make you feel?  Turn right!  OK, you didn't turn right.  You're going the wrong way.  You know that don't you? You do? Well, how's that working for you?
• Paula Dean - "Hey, y'all . . . we're fixin' to turn right just up ahead there, so keep your eyes open . . . "
• Farmer, "Go to the oak tree on the south-side of the 'Y' up there. Turn right at the new fence posts.  You know, since that city slicker ran through the fence last September that fence has been down.  Don't know why it's taking so long to get it fixed.  Do they think the cows are gonna stay in there because they're loyal?"
• Mushmouth (from Fat Albert) "Hey-ba man-ba turnin' rightca up here . . . man ba.
• Jack Bauer (24) - "I Know this is a lot to deal with right now, but you have to focus.  There's a right turn up ahead.  You need to take that.  When you get to the corner, turn right and keep going.  Don't look back!"
• Clint Eastwood - "There's a right turn up ahead, so you have to ask yourself.  Do you feel lucky?  Well, do ya, punk? Take the turn.  Go head.  Make my day!"
• Ozzy Osbourne - "Mumble, mumble, mumble, mumble . . . SHARON!  You missed the blooming turn again."

Well, you get the idea.  As an independent realtor, I need good directions to make my work flow smoothly.  My GPS has been an essential part of that work flow, but if it's going to keep getting me lost I'll settle for an entertaining voice.  Mandy, your days may be numbered.  Who's on your list?

Here's Your $4.00 Fine! Now stop that! (edit/delete)

The local paper in Winchester does an interesting page every Monday.  On Monday they publish articles from 100 years ago, 75 years ago, 50 years ago and 25 years ago.  I'm always most fascinated with the 100 years ago.  Since I wasn't here to remember them they tend to be the most enlightening and entertaining.

This past Monday the first story was my favorite.  It seems that the postmaster had complained to the local city government that too many men were spitting tobbaco on the floor.  There were spitoons all around, but these uncouth city slickers had taken to spitting wherever and whenever they wanted, and since the postmaster was also the custodian of the post office this had to stop!  Besides, it was a health issue.

Local laws had to be amended to make spitting on the floor of the post office a fineable offense.  It could cost up to $4 if the offense was severe enough, and in 1901 $4 was a lot of money.  Well, the story got me thinking.  What would I fine people for if I could stick a $4 fine on offenders?  Here's a partial list:

• Wearing pajamas anywhere but in your home - cha-ching!  $4.00 please
• Non-handicapped parking in handicapped only slots - cha-ching!  $4.00
• Sitting right beside my table in a completely empty resturaunt - Cha-ching!  Move over.  Leave your $4.00 on the table!
  
• Wearing too much cologne anywhere - teary-eyed, sneezing cha-ching!
  
• Driving 10 miles under the speed limit in the passing lane - cha-ching, cha-ching!
• Talking loudly on your cell phone - we all have them - nobody is impressed - cha-ching!  Hand over the $4.00 and use inside voices!
• Trying to impress me with your intellect while using bad grammer - cha-ching!  That should be $8.00, but I did set a $4.00 limit.  Your lucky day Sparky!
  
• Not returning important phone calls, emails or text messages - cha-ching!  Ante up, $4.00.
• Playing your music so loud in traffic that my car vibrates - cha-ccchhhhiiinnnnggggg!
  
• Chewing with your mouth open - cha-ching!  What was that?  $4.00, spit it up!
  
• Butting in line anywhere - cha-ching!  Back to the end of the line Bub.  Oh yeah,  $4.00 please.

You see my dilemma.  There are just to many things to fine people $4.00 over.  Of course we could use these fines to settle the national debt.  What do you think, two weekends?  We should be there in two weekends, maybe three.  Anyway, what's on your $4.00 fine list?  I may need to take out a loan if this ever becomes law!

A Diamond in the Rough and a Labor of Love (edit/delete)

Every once in a while you find a diamond in the rough.  Last summer a good friend called to see if I would help him bring an old distressed Victorian back to life.  I'm always up for a challenge, so we met up and surveyed the property.  Whew!  Distressed was an understatement.  He had already cut all of the overgrowth away from the house so you could actually see it, and I'm not 100% sure why he didn't leave right then.

Removing all the trees around the house gave an amazing view of a house that had been idle for 12+ years.  Windows were broken out, the porches were falling down on both front and back sides of the house, the roof leaked, birds lived in the attic, and that was just the beginning.

Inside wasn't any better.  The first floor bathroom was missing its floor.  Rain, snow and birds had been passing through the second story windows for years, and they had left their mark.  The walls and ceilings were crumbling throughout, and those were the good features.  But, there was something about that house that had us intrigued.

Strother Adams is a craftsman.  Strother and his brother Davey have rescued more than one structure, and this was surely to be a test beyond most.  For months after that, Davey scraped paint, fixed windows, repaired doors, repaired plaster, built bathrooms with floors, sealed up leaks and did a hundred things I never saw him do.  Strother coordinated plumbers, HVAC contractors, insulators, roofers and others.  My electrical company went in and made the old wiring safe while replacing the majority of it with new 21st century circuitry. 

The kitchen was completely replaced, one bathroom was restored, one more was added and one was cleaned up.  The floors were sanded, plaster finished and walls painted, new trim installed or old trim repaired.  New plumbing and a heating/cooling system was installed, and finally it was finished. 

This ugly duckling had become a beautiful swan.  We had more fun with this property than most we work with.  It had nooks and crannies that most houses don't have.  You could sense little children hiding in the voids between the walls, and you could see a level of 19th century craftsmanship that rivals the best craftsmen of our day.

I love the whole process of buying and selling real estate, but every once in a while a house comes along that begs for a second chance.  I know as realtors, we are in the market to help others buy or sell homes, and that is exciting.  But, I also have the good fortune to be an electrical contractor.  When a diamond in the rough comes along like this one, I often get to be a part of its rebirth.  Then, the buying and selling becomes a second thought, an end result. 

The real joy in finding a house like this is seeing it rise from the dust of blight and decay to become a fully restored home where a family will live and kids will grow, songs will be sung and meals will be shared.  People will fall in love with all of its vintage 1800s features while enjoying the comforts of our upgrades, and they won't be inconvenienced by outdated wiring, plumbing, heating and cooling systems.  No, they will be free to enjoy a piece of history.  They can absorb its strength that helped it survive the ravages of time, and they will sense the families that once walked through its hallways.  It is a diamond in the rough, and what a diamond it is!

Double-Check Everything!  

 

Here's the odd part.  Both the buyer and I had double-checked every form online.  Every form had the appropriate checks and other data.  But, when we printed them out they were slightly different.  There weren't any major changes, but there were a number of odd minor changes.  In our haste to get the offer to the listing agent's client we simply accepted what we could see online and printed, signed and initialled. 

The moral of the story?  Double-triple-quaddrupple check everything.  It didn't hurt anything this time, but it did reveal a problem either in my computer or in the software that could have devastating consequences if not caught.  I approach my computer and this software with great suspicion now, but that's probably a good thing.

What was I thinking? (edit/delete)

OK, I recently had one of those "What was I thinking?" moments, and it reminded me of something.  When my wife was pregnant with our first son she received a piece of advice that I found extraordinary.  It went like this, "Don't do anything once that you don't want to do forever."  Of course we had no kids at the time, and we didn't realize how relevent that would be one day.

Well, we made it through two boys without violating the "Don't do" policy, but then we got a dog.  It's amazing how relevent that same advice would have been if I had followed it with my dog.  While I was at a conference my wife and sons went to PetSmart and rescued a 115 lb Rottwieller.  He was called "Hoss."  He was so tall that his head was above our dining room table.  At 115 lbs he looked kind of skinny, but within a year he was 185 lbs, and then he looked a little like a large black tube with legs and a head.

Eventually, we got him on a better eating plan and he has slimmed down to a nice 145 lbs, and he looks healthy.  Now, here's where I violated the "Don't do" policy.  He is very smart.  So, we all have been teaching him tricks.  It really has been fun, and he plays along willingly.  One day he was standing at the kitchen doorway and I asked him, "What do you want?" I taught him how to walk in and tap his treat bag to let me know what he wanted.  He liked it because it ultimately ended in a treat.  He is very food motivated.  I thought it was cute, and I was very proud of our accomplishment.  Then, before I knew it, he had taken the new trick to the next level.  Instead of waiting for me to ask what he wanted he would come in and tap on his bag of treats.  Before I knew it, he was like a rock and roll drummer.  What I thought was fun and cute had turned into a nightmare.  He had to go back on his diet, and we measure the treats out from an undisclosed location now.

What does this have to do with real estate?  Clients can be like Hoss.  It is our responsibility to help our clients find the perfect house, get the best deal and ultimately walk away feeling like they had a good experience.  But, once some cleints learn that we know where the treat bag is, they start tapping.  What was once offered as an extra benefit or a simple favor for a client becomes an expectation with a commissin attached.  Most of my clients have been amazing, but every once in a while I get one that asks for a little extra, and then a little more, and a little more until they are dominating all of my time and keeping me from other more pressing and more profitable business.  I learned with the boys and Hoss that boundaries and balance keep us all happy and sane, and I have found that the same rules apply to real estate clients. So I leave this helpful advice, "Don't do anything once that you don't want to do forever."

Have a great sane and happy weekend.

Peanut Butter and Technology 

Late one night this week I was getting ready for bed, but my stomach was growling.  What could I eat that wasn't too heavy and was quick and easy?  Peanut butter.  I know, anything right before bed could lead to dragons and one-eyed sloths dragging me off for a midnight snack in my dreams, but the growling stomach was going to keep me awake anyway so it was worth the risk.  A quick sandwich and I was off to bed.  No dragons or one-eyed sloths, but a thought did come to mind.  Do you ever outgrow peanut butter?  I know, what does this have to do with real estate, right? 

I posted the question, "Do you ever outgrow peanut butter?" on my Facebook page.  I was surprised at the large response I received from my FB friends.  It's unanimous.  Peanut butter is a staple, and it's here to stay.  Now, what does this have to do with real estate?  It made me think of how we do business today.  I'm a techno-geek so I love all the electronic ways we conduct business today.  I love all of the smartphones, ipads, zooms, electronic lockboxes, drip campaigns, auto-responders, electronic signatures, etc., etc., etc.  But, the reality is that real estate still needs a good dose of peanut butter. 

The peanut butter of real estate is getting to know your client.  It's putting their needs first and making sure they find the best house at the best price.  It's protecting their interest and seeing that they are not taken advantage of by a buyer or seller.  In our electronic environment, the personal touch is still the glue that creates the deal.  No matter how tech-savvy we become, clients need contact, understanding and an advocate.  That's the peanut butter of real estate, and it's here to stay.  Now, if I can just figure out what the jelly is I'll be set.