Homebuyers Can Use a FHA Loan to Purchase Property from an Investor

FHA has been the most popular mortgage used by Wisconsin residents looking to purchase their first home. The relaxed credit standards lower down payment requirement and higher debt ratios has allowed many people to purchase a home through this type of loan. However, investors who were in the business of buying a home to simply turn around and sell it for a profit, called flipping, always steered clear of FHA borrowers. FHA had a rule stating a home could not be sold a second time within 90 days of its last purchase. But that has all changed.

Original Intent

The primary reason for this “anti-flipping” rule was discourage fraud on mortgages. However, as time marched on it became apparent that deserving FHA buyers were being denied a home. Many homes have been bought after foreclosure by investors and repaired to make them ready for resell. The FHA ruling prevented the investors from selling and the market has struggled.

Some Rules to Keep in Mind

Although the FHA administration has decided to lift this rule, there are still other guidelines that must be followed when dealing with one of these investment homes.

• The seller of the home and buyer cannot have any type of pre-existing relationship. This could be as simple as a relative selling to a family member or as complex as a business owner selling to a partner or employee.
• In the event that the new sales price is 20% or more than the price paid at acquisition by the investor the loan may be inspected more closely to ensure the value of the property was not artificially raised.

Keep in mind that the original rule was put in place to prevent fraud. In addition, the original rule only came in to effect when a home was bought by an investor and then resold within 90 days. If the investor waits beyond the 90 day window to sell the home most of these issues will not be present.

Protection against Future Fraud

Most lenders are well aware of the abuse that has taken place in the mortgage industry over the past few years and have stepped up their lending standards to catch fraud and illegal practices. Because of the heightened scrutiny, many high ranking managers among the top lenders do not feel that this change in FHA rules will lead to a sudden burst of bad loans. The tighter appraisal restrictions, along with the general awareness of potential problems, should allow banks and mortgage companies to move forward with new FHA loans without falling victim to a scam artist.

Original Post - Using an FHA Loan to purchase from an Investor

Home Prices in Wisconsin are Stabilizing

Amidst the turmoil and problems of the year, there was some good news about Wisconsin home values in the year 2011; prices have stabilized. Based on a year-end report conducted by the Wisconsin Realtors® Association (WRA), the number of homes sold was slightly better than for the year 2010. And the price drop from 2010 to 2011 has been minor, signaling that we may have found the bottom of the price bubble.

Not Unexpected

However, this trend is not a surprise to seasoned real estate agents. The Federal Homebuyer credit that was so popular during the year 2010 was projected to have a negative impact on the first six months of 2011. This prediction came true. Even more importantly, the latter half of 2011 saw a strong increase in home sales that were higher than the same point from 2010.

Small Signs of Economic Improvement

The best news is the fact that the number of homes selling has increased. While different parts of Wisconsin have seen varying degrees of improvement, the entire state has benefitted from improvements made in the economy. While government has shown a loss in jobs, the private sector is increasing enough in new jobs to offset the government loss. This has led to a drop in the total state unemployment number, down from 7.6% to 7.1%

Lower Prices Main Reason for More Sales

Obviously, when the price of goods drops it usually signals more buying from consumers. The same is true for homes across Wisconsin. Historically low mortgage rates, paired with lower home prices, have enabled more families to buy that first elusive home. While the average home price is roughly 25% to 30% lower today than it was in 2006, the recent trends are promising. Prices will rise with increased demand. As long as unemployment continues to drop and people continue to purchase homes, the prices will eventually rise again.

Everything moves in Cycles

Keep in mind that the state economy is like a giant organism. When something affects one part, another part is affected as well. Case in point, apartments are beginning to see a good recovery. A large number of people have chosen to rent a place for the short term while they make their plans to buy a home. As this trend continues, the price to rent an apartment or single family home will rise. When the price to rent becomes higher than the monthly payment on a typical mortgage, more people will look to purchase a home.

The last few years have been tough on a lot of people. Loss of jobs, drop in home prices and a general feeling of despair have been quite common. However, times are improving, if only slightly. Now is the time to get our financial houses in order and push forward to take advantage of the great home ownership opportunities that lie before us.

Original Post - Home Prices in Wisconsin are Stabilizing

Increased Mortgage Activity

Although the winter months have traditionally been a slow time in the real estate market, business has seen significant improvement across Wisconsin. While it may be premature to proclaim that the recession is ending, these signs do point to an improvement in the overall economy.

Starting Off 2012 with a Bang

Across the state the number of home purchases increased by 11 percent in January 2012 in comparison to the number of homes sold in January 2011. This is a continuation of the trend that began in October of 2011. Although the average home price is still down from the levels of 2006, the improved activity is a good sign.

Refinancing is Hot now

Along with improvements in home sales, refinancing has been quite popular lately. The record low interest rates have caused quite a few people to investigate refinancing their home. Recent reports show that as much as 80% of mortgage applications have been for refinancing.

Primary Key to Fuel Home Sales and Price Improvements

The majority of economists agree that it is too soon to determine if the surge in home sales will last. However, they all agree on one point. A steady, stable growth in the number of people able to return to full time work will drastically help the housing market.

Still a Buyer’s Market

The good news for buyers is the available inventory makes it possible for a buyer to review multiple homes and find the one that is best for their needs. The recent statistics show that the current inventory of homes for sale is quite large, but the numbers are moving down. Along with the incredibly low interest rate this marks a great time for new homebuyers to get in their first home as well as for current homeowners to consider selling for either a bigger property or a home in a better area.

Short Sales and Foreclosures add Properties to the Mix

While home prices have declined in recent years due to the struggling economy, some of the best deals can be found in the case of foreclosures and short sales. It is common for a short sale to be in a much better condition than a foreclosure. Most of these owners were living in the home right up until the time they sold the property and moved on. This means that a home that was part of a short sale has a good chance of being in move-in condition. For the do-it-yourself type of people, a foreclosure could be a way to get a home at a tremendous discount and have the option of adding paint, carpet, and fixtures to customize the home to their liking.

Original Post - Increased Mortgage Activity in Wisconsin

Using FHA 203K Loan to Purchase a Fixer-Upper

Across Wisconsin there are a large number of short sale homes available to buyers.  A short sale is a home being sold for an amount less than the existing mortgage balance.  These homes often have a few cosmetic repairs that need to be made in order to make the home more presentable, if not safe.  For years the issue of repairing a home prior to purchase was a catch 22.  The bank or seller was not willing to spend extra money on a home that they are selling.  The buyer could not make the repairs because they did not legally own the home.  The FHA 203k loan solves that problem with ease.

Two Kinds of Loans

The Federal Housing Authority (FHA) offers a loan called the 203k mortgage, named after the code section where the loan is found in the FHA guidelines.  This loan is offered as a Streamline version and the regular version.  The streamline was designed to offer lower amounts designated for repairs and slightly less paperwork.  Both loans are ideal for Wisconsin homebuyers who wish to purchase a home in need of some repairs.

How the Loan Works

The loan program allows buyers to purchase a home based on the sales price.  In addition, the buyers can borrow extra money to make the necessary repairs. Once the loan is approved and closed, the extra money is placed in an escrow account.  The contractor that is doing the work will receive payment once the work is completed. This protects the borrower and the lender against problems with the repair process.

The amount needed for repairs is added to the loan for the purchase and the homebuyer makes one payment, at one interest rate, on the entire loan.  Since mortgage rates are so cheap right now it is a wonderful way to buy a home that may be priced below market value due to some simple fix-ups.

Loan Amounts

The Streamline 203k loan will allow Wisconsin homebuyers to borrow a minimum of $5,000 and a maximum of $35,000 to be used towards the repairs.  The regular 203k loan allows much more as a percentage of the sales price and the estimated appraised value after the proposed repairs have been made.  The regular 203k loan will need the involvement of an appraiser, home contractor and loan officer from the very beginning to make sure the loan and repairs meet the guidelines of the program

What Can be Done with 203k?

Wisconsin homebuyers often ask about the types of repairs that can be done with the Streamline 203k program.  The following list shows some of the more popular tasks accomplished using this type of loan

• New gutters and a new roof
• New Heating and air conditioning system or repairs to the existing system
• Plumbing updates and repairs
• Electrical updates and repairs
• Bath and kitchen remodels, to a lesser extent
• New flooring of any type; wood, carpet, tile
• Painting for both exterior and the interior
• New windows and doors
• Energy efficient appliances

The 203K loan allows many types of repairs and improvements that can greatly enhance the value of a home and give buyers a chance to purchase a place at a savings. This loan is ideal for Wisconsin short sales or foreclosures.

Original Post - Using a FHA 203K Mortgage for Rehab

This communication is provided to you for informational purposes only and should not be relied upon by you. Rock Realty is not a mortgage lender and so you should contact a FHA lender directly to learn more about its mortgage products and your eligibility for such products.

The Wisconsin housing statistics are now in for December of 2011. Here is an excerpt from what the Wisconsin Realtors® Association (WRA) had to say:

"What is encouraging is to see monthly home sales continue to outpace last year's levels," said Rob Keefe, Chairman of the WRA Board of Directors, noting that home sales in December were 11.3 percent higher than December 2010".

"If home sales are to continue to grow, we will need more robust job growth going forward, but a falling unemployment rate is a welcomed sign" said WRA President and CEO Michael Theo.  The [Wisconsin] unemployment rate dropped more than a half percent over the last two months to 7.1 percent in December 2011.

Below are the number of Home Sales and Median House Prices for the state of Wisconsin, Rock County, and Dane County. These stats include Janesville and Madison. Feel free to contact me if you have any questions pertaining to these figures. As you can see, home sales have been increasing substantially this year. But as you can also see, all prices are dropping in this market.

If you would like some insight into how much your home is currently worth, I would be happy to provide you with a free comparative market analysis. This is a report that gives a close estimate to what your home might sell for in your current local Wisconsin real estate market. Has your home value fallen below what you currently owe? A short sale may be right for your situation. Visit the following page on Wisconsin Short Sales.

The Wisconsin housing statistics are now in for November of 2011. Here is an excerpt from what the Wisconsin Realtors Association (WRA) had to say:

"We are definitely closing out the year on a strong note," said Rob Keefe, Chairman of the WRA Board of Directors, noting that the seasonal pattern of home sales typically slows as winter approaches. "The strong market of the last few months has pulled sales in 2011 nearly even with the 2010 level," he said. Keefe noted that year-to-date home sales through the end of November are now less than 1 percent below last year, and that is without any bump from the federal government to stimulate existing home sales.

"This is clearly a buyer's market, and while inventories are down from October, they still remain high at more than 14 months," said WRA President and CEO Michael Theo. "This means buyers will be in the driver's seat for the foreseeable future. The economy did get a little good news in November with an improvement in the national unemployment rate and even an uptick in consumer confidence and consumer expectations"

Below are the number of Home Sales and Median House Prices for the state of Wisconsin, Rock County, and Dane County. These stats include Janesville and Madison. Feel free to contact me if you have any questions pertaining to these figures. As you can see, home sales have been increasing substantially this year. What I find most interesting in November's data is that Rock County Wisconsin home prices are actually increasing, while Dane County Wisconsin home prices have been decreasing. Both counties continue to have an uptick in the number of homes sold.

If you would like some insight into how much your home is currently worth, I would be happy to provide you with a free comparative market analysis. This is a report that gives a close estimate to what your home might sell for in your current local Wisconsin real estate market.

Wisconsin Short Sales
Madison Wisconsin Short Sale Realtor®
Janesville Wisconsin Short Sale Realtor®
Beloit Wisconsin Short Sale Realtor®

Although it is hard these days to still find a true no money down mortgage loan, there are a few programs that come pretty darn close. Take the HUD|FHA $100 sales incentive program as an example. The loan officers over at Inlanta Mortgage have brought this newer mortgage program to my attention. I have included some excerpts from their HUD FHA $100 Down Mortgage Program blog post below.




 

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Just like every bank out there, HUD has also seen a rash of foreclosures over the last few years. When someone defaults on a FHA mortgage, HUD may end up owning that property since they insured the borrower against default. HUD is not in the business of owning or renting properties so they came up with a unique sales incentive in order to sell these homes.

HUD has offered a program to allow for a qualifying borrower to purchase a single family home with only a $100 down payment requirement. The borrower can finance the cost of the home + the 1% UFMIP as long as the value is supported by an appraisal. The home buyer may increase the offer and ask for a seller credit to cover closing costs and then would only be required to bring $100 to close. This is a great deal if you can find a property that is eligible. We have a link we’ll post below to get you to HUD’s website where these eligible homes can be found in your area.http://hudhomestore.com/HudHome/Index.aspx

The requirements for this program:
Home must be an approved HUD home
Single Family Residence
Owner Occupied
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I'd be happy to help you find the perfect HUD home for you! Don't forget about our home buyer discounts available. Call me at 608-921-8536.

The question of whether to short sell a home in probate used to be rare, but now unfortunately it is not. There are estates where the owner dies, owes more than the house is worth, and a decision needs to be made by the Personal Representative (executor) as to what to do.

My opinion, try it. If it is in the best interest of the bank/investor to short sell rather than foreclose they will do it. If it is not, they won't and will take it to foreclosure.

So who benefits if the home is sold as a short sale?  Well the realtor for sure.  The commission is paid by the bank.

However, if the attorney's fees are put on the HUD1 statement (the statement saying who is paying for what and who is receiving what money) the bank may pay them.  Also, the payment to the personal representative can go on the HUD1. This would make it worthwhile for the Personal Representative to try and do the short sale.  This can be very handy if the representative is a Bank or Professional Fiduciary.

The heirs do not get anything out of a short sale so it does not matter to them if the property is foreclosed or sold short, but it does matter to the neighborhood.  A vacant foreclosed home brings the other homes around it down, while a short sale is cared for by the realtor and even if vacant is not abandoned.

So should you bother?

I think so.

If you have any questions about probate or short sales, please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

Yes, after one agent tries, unsuccessfully, to sell this home 97 days, posting ONE front photo, a 2nd agent tried for another 137 days until finally they sold it for $66,000 LESS than asking price. After I Staged it and relisted for more than $55,000 of what was paid for, we have 4 offers in ONE day, all over asking price!

Here are a few more photos http://www.postlets.com/res/4332472

(link will only be available up to 30 days from this post)

FULL POST BELOW, AFTER PHOTOS

This is JUST ONE example of why sellers should HIRE a STAGER and/or a STAGING REALTOR when selling!

BEFORE & AFTER

The story of this listing goes something like this...

Previous seller & agent, who should remain unnamed to protect their "innocence", try to sell this home for 137 days without any success! And prior to that, another seller/agent tried selling for another 97 days! But that agent could only muster taking ONE photo of the front. Not unusual to see that, right?  I mean, after all it is so difficult to take digital photos because than you have to download, upload…exhausting! Boggles the mind! Anyway, the home looked pretty much the same except it was missing a chandelier and the hood over the stove.

It appears that no one had any ideas as to how to make it look better in order to find a buyer, NOR (may I add) any buyer had the VISION to picture it a little dressed up! Why not?? So, this seller finally sells for over $66,000 LESS.  New, SMART owner enters, hires me (BECAUSE I am a Staging Realtor….see, I told you he was smart!) to relist, at over $55,000 of what he paid for it, and gets even more in ONE day!

This post doesn’t only show (known fact) sellers that the smallest effort in “Staging” their product can make and pay big, BUT also that buyers need to be able to spot potential BEFORE someone comes in and stages it, THEN they’re willing to pay much more, for something that’s not even staying with the property!! Buyer need to keep an open mind when it comes to seeing the potential in homes they’re buying. This staging did not include any heavy furniture or anything. The heaviest thing is the folding patio set!!

The interesting thing is that many agents, like myself, offer our Staging services FREE of charge as part of our service, but in spite of the clear benefit many sellers, especially REO owners, are either not grasping the concept, or their reps simply don’t care. Not sure which is it - maybe someone can comment/clarify. If you, as a seller/AM, are giving 100s of listings to one agent, you clearly aren't interested or focused on maximizing returns for yourself or your clients. This may not be your fault, I know that so don’t get mad!  Maybe your hands are “tied” as to what you can do or who you hire to list your assets, but the fact remains the same - maximizing returns through QUALITY marketing is not at the forefront of how you/your employer does business. Can you change that?  If so, you should at least try! The difference in the quality of service you receive will astound you.

The consequence of doing business based on quantity (as if it needs reinterating), devalues all our homes and hurts communities all across our country, where values are already affecting many people’s lives!

To summarize just this example: No staging =no offers! Staging =4 offers the first day, including cash offers for NO LESS than asking, and others for much more over asking!

Where ever you are, whatever your local market, seek the services of listing agents who offer Staging as part of their service, when possible. If you have a boss, you WILL impress them!!

If you like this post, visit http://stagingrealtors.ning.com/ for other related posts, and to join the group!

The Sky is Falling! Get Your Bucket!! (edit/delete)

The sky is falling, the sky is falling! According to the Chase-shiller index we have entered a double-dip economic recession. Clear Capital reported the same thing for the housing market nearly a month ago. Zillow added that home prices are dropping about 1% per month this year. The headline read, "First Quarter Brings More Dismal News For Housing Market." With that headline you can guess where the article went.

The sky is falling! Well, that's one way to look at it, or it could be the biggest buying opportunity in nearly two decades. A lot of people were priced out of the real estate boom of the early to mid-2000s. The escalating prices of available properties made it impossible for them to buy. So, they settled in and started renting. They have sat back, saved their money and now they have enough money saved to buy the house that alluded them five years ago and they have a nice down payment.

For a lot of these formerly sidelined buyers, this market is ripe for the picking. Many buyers overbought in the mid-2000s, and now the real estate landscape is littered with wonderful upscale short sales and foreclosures. It's a buyers dream.

So, for those Realtors who have been walking around with a sad depressed face, I say, "Take that sad face off, put your 'I'm going to be a top producer' face on and get out there and beat the bushes." First-time buyers and sidelined buyers have the potential to be a major force in this market turnaround.

There is another group evolving in this market. The people who were wiped out in 2008 are stabilizing and coming back into the market. This is a great group to get your investors involved with. If your investors would become short-term mortgage holders that would give this group a hand up. The real risk to the investor is the potential that the buyer may default, but many of these people were swept away by forces other than own fault. They are trying to do everything they can to get back on top of things. The worst case scenario for an investor is that he would have to foreclose. In that case, he would simply have the house he bought anyway. It's a win-win.

So, Realtors, put away that "sky is falling" umbrella, pick up a bucket and catch the rain of re-positioned buyers. The clouds are full of opportunities and it's beginning to sprinkle. We can pull this country out of this hole one buyer at a time. So, everyone, heave-ho!

"Virginia was here on this day." 

On this Memorial Day weekend, I would like to thank all of the men and women who have defended this country from its inception to the present day. It is not without great sacrifice and dedication that you have put your lives in harm's way for the promise of a peaceful return to a more simple life. Those of us who have benefited from your commitment salute you and humbly thank you for your selfless acts.

One of the greatest conversations transcribed during war came at the battle of Gettysburg between Colonel Arthur Freemantle and Brigadier General Lewis A. Armistead (a notable Virginian). That conversation is played out in the movie, "Gettysburg." Armistead reveals, in this short discourse, the very heart of Virginia. But, this dialog could have played out on a hundred battle fields since the Revolution. One of the reasons America is great is reflected in the great men and women who have sworn to defend her.

Col. Arthur Freemantle: I'm told you're descended from an illustrious military family.

Brigadier General Lewis A. Armistead: Who told you that? Kemper?

Col. Arthur Freemantle: He tells me it was your uncle who defended Fort McHenry during the War of 1812, and that he was therefore the guardian of the original "Star-Spangled Banner." I must say, I do appreciate the irony of it all.

Brigadier General Lewis A. Armistead: Colonel Freemantle... it does not begin or end with my uncle... or myself. We're all sons of Virginia here.

Brigadier General Lewis A. Armistead: That major out there, commanding the cannon... that's James Dearing. First in his class at West Point, before Virgina seceded. And the boy over there with the color guard...

Brigadier General Lewis A. Armistead: ... that's Private Robert Tyler Jones. His grandfather was President of the United States. The colonel behind me... that's Colonel William Aylett. Now, his great-grandfather was the Virginian, Patrick Henry. It was Patrick Henry who said to your King George III, "Give me liberty, or give me death." There are boys here from Norfolk... Portsmouth... small hamlets along the James River. From Charlottesville and Fredericksburg... and the Shenandoah Valley. Mostly, they're all veteran soldiers now; the cowards and shirkers are long gone. Every man here knows his duty. They would make this charge, even without an officer to lead them. They know the gravity of the situation, and the mettle of their foe. They know that this day's work will be desperate and deadly. They know, that for many of them, this will be their last charge. But not one of them needs to be told what is expected of him. They're all willing to make the supreme sacrifice... to achieve victory, here... the crowning victory... and the end of this war. We are all here, Colonel. You may tell them, when you return to your country... that all Virginia was here on this day.

I loved Debe Maxwell's post "The Longer the Shelf Life, The Less Chance You Have of Selling Your Home".  I wish I could send it to a couple of my sellers (previous and present).  In that post she demonstrated how a seller can inadvertently derail his own sale by trying to stick to an unrealistic price.  I have that same client today. 

Last year I listed a house that was what I call, "Basic Vanilla."  There wasn't anything special about the house.  It was in an average neighborhood.  It had basic features and no pizazz, but that's OK because there are a lot of people out there that can only afford a basic vanilla house.  No problem.

I receive a very generous offer in  the first 5 days, and I was elated!  The seller countered with a higher price and the buyer countered that with a slightly lower price.  At this point, I'm yelling, "Take the money and run!"  My seller, for some unknown reason, decided he wanted an extra $500.  Deal over!

He called over the weekend asking me to go to the buyer and coach him back into the deal.  The buyer would have nothing to do with it.  He was so aggravated the just wanted to move on.  Deal over, dead, blah! 

Now, 18 months later, he has another  opportunity.  This offer is 20% below the last one.  What will the end result be?  A year and a half has past with no offers.  Will history repeat itself, or will he realize that his rigid attempt to stick with his unrealistic asking price could derail another deal?  I'll let you know, but this time I'm going to be a little more emphatic about the deal. 

Will The New "Point of Contact" Plan Fix The Mortgage Mess?

Washington is at it again.  If you've ever worked with HAMP or HAFA, you already know that sometimes the cure may be worse than the disease.  Now, the U.S. Treasury is pushing a "single contact" initiative to the largest mortgage lenders using the HAMP,  HAFA and Up programs.  On the surface, it sounds like a good idea.  Once a borrower is in the process with the lender he is handled off to one person who handles his file throughout the process.  Borrowers are assigned to one person, one point of contact.  That point of contact makes sure the borrower has two methods of contact for him.  He explains all of the possibilities available to the borrower, and they work together to solve the borrowers mortgage issue.

At first glance, I thought, "This is great.  It will make things so much easier for both borrower and lender."  And then, reality settled in.  Wait a minute.  This is the same lender that loses your short sale file on 3 out of 4 attempts to submit.   It's the same lender that pays the current contact $10 an hour to answer the phone, answer your questions from a script and transfer your call to the next person who is going to hear your story.  What could go wrong?

Think about it.  This point of contact will need to understand the mortgage process from loan commitment through loss mitigation.  He will need to know state laws concerning bankruptcy, foreclosure, short sales and deed in lieu of foreclosure.  Most of the current asset managers I deal with handle up to 300 files at one time.  This person will need to handle an insurmountable number of borrower files, as well as, be the one "expert" dealing each one of those borrowers.  He will need to be available throughout the business day to any and all borrowers on his current file list.  Call centers will need to be divided to accommodate this new division for these consenting lenders.  Most mortgage providers don't consolidate bankruptcy, loan modification, short sales, foreclosure or even delinquent borrowers in the same department. That will mean more hires, more equipment, more locations and more overhead. 

I certainly don't want to pour cold water on an attempt to help with the mortgage mess we're in, but I'm not sure going back to the same people who already make problem loan issues miserable is a good fix.  I definitely agree that somewhere along the line a more streamlined process must be initiated, but is this it?  Beyond the challenges we already face with lenders, is their partner, the US government, who is on the verge of their own bankruptcy the best formulator of a sophisticated mortgage banking shift?  If they can't pay their own bills maybe they need a single point of contact in China.  I guess time will tell.

Things Your Mother Said . . .

Most of us have a list of things our mothers said to us when we were kids.  Some of those things came to pass and some didn't.  Here's a short list of the ones I've heard from my mother and the mothers of my childhood friends.

• Don't go outside without your coat on.  You'll catch your death of cold.  Mom 0 / Kids 1  (Shivered a few times, but no death.)
• Don't climb that tree you'll fall and break your neck.  Mom 0 / Kids 1
  
• If you fall out of that tree and break your leg don't come running to me.  Mom 0 / Kids 1
• Don't run in the street, you'll get run over!  Mom 0 / Kids 1
• Don't go outside with wet hair.  You'll catch pneumonia.  Mom 0 / Kids 1
• Put that BB gun down.  You won't be happy until you shoot somebody's eye out.  (Well, I never shot anybody's eye out, but I was never really happy either.  Just kidding.)  Mom 0 / Kids 1
• Don't make that face.  It'll freeze that way.  Mom 0 / Kid 1
• If all your friends were jumping off a cliff, would you jump off a cliff?  (And bungee jumping was born.  Thanks, Mom) Mom 0 / Kids 1
• Wait till your father gets home.  Mom 0 / Kids 1 (Whew!)
• You've got enough dirt behind those ears to grow potatos. Mom 0 / Kids 1  (Not a single spud.)
  
• When you grow up I hope you have kids just like you.  Mom .5 / Kids .5   (At least they've been entertaining.)
  
• Close that door.  Were you born in a barn?  Mom 0 / Kids 1 (Weren't you there?)
• If you swallow that watermelon seed you'll grow watermelons in your stomach.  Mom 0 / Kids 1   (And I thought I was just fat.)
• If you keep playing with it, it will fall off!  Mom 0 / Kids 1 (I'm not really sure what "it" was, but I'm glad to report that I still have all my parts.)
• Don't ever let me catch you doing that again!  Mom 0 / Kids 1 (Change in venue.)
  
• You should go into Real Estate.  I think you would be good at it.  Mom 100 / Kids 0  Thanks, Mom!

Language Makes All The Difference 

I recently worked with a foreign couple, and we had moments where the language barrier between us brought everything to a crawl. It wasn't that we  were having problems with each other, but the differences in language and customs  caused us to have to take a much slower pace when communicating.

Language is important in real estate. Actually, language is important in all affairs in life, but I wonder if we take our language for granted when speaking to people from other countries.  Let me give you a simple example.   Let's take the word "Time."

We all know that we have limited time, but then again we say, "Don't worry, we have all the time in the world!" How much is that?  What about when your time is up?  Does that mean you're suspended in time?  Can time stand still?  If time stops, how can it speed up?  Or does time really fly? But, I've heard that time can slow to a crawl.  Is something really "only for a time?"  Or does it stand the test of time?  If so, who is doing the grading?  Is it possible for it to sit the test of time?  If we save time, can we use it later?  What about when we make up time?  Is that like 26 o'clock?

When we play sports we have time outs, but when that's over it's time in. We have time on the clock, but where else would it be?  Sports have time keepers.  Does that mean they get to take it home with them, and if so, do they get to keep it for a time?  Or do they have to give it back?  If they keep it, do they store it in a time capsule for a later date?  Or do they save time in a bottle?

We have daytime, but we also have nighttime. Somehow we have figured out how to have daylight savings time, but we haven't figured out how to have nightlight savings time.  Maybe that's because there is no light at night, and you need light to save time.  Is one time more important than another?  Because we have prime time.  Is that daytime or nighttime, or is it neither?  If it's neither, what is it? And, what about when we punch a time clock? Is that some sort of numerical schism between people and time.  I've also heard that time is money.  I thought time was time.  So, which is it?

It's easy to figure out what Summertime, Wintertime and Springtime are, but why don't we call the fourth season Fall-time? Is it because it sounds like an injury?  We all know when it's Christmas time, because it always follows the beginning of Wintertime.  But, Spring break doesn't always follow Springtime. There are time zones.  Does that mean there are zones without time, and if there is no time in some zones does that mean they have no time for you?  Is that a bad time?  Or is it a good time?

We're familiar with Father Time, but I've never heard of Mother Time. Is time sexist?  I know there is a delivery time which would correspond with Father Time, so there must be a mother who doesn't know what time a baby is going to arrive, but she's happy just as long as the doctor is on time and not taking time off.

Well, you see the dilemma I sometimes face when dealing with foreign clients who don't understand our use of language.  It can be real challenge.  I guess I'll stop wasting your time with this blog.  But, I hope you had a good time reading it. Hopefully, it has been time well spent, because time management is important!

What Do You Do To Keep Your Agents Motivated? 

During the early part of the roaring 2000s our office was a selling machine.  Of course, most offices were like that, but when the market began to slide into recession things slowed down.  Our broker, who was a great guy, was managing two offices.  He spent the majority of his time at the other office in a large metropolitan city (approximately 29 out of 30 days).  As the recession became more and more severe our office began to drop sales and agents.

The worse things got with the economy the worse sales got with the office.  Our broker was seldom around to encourage and inspire the office, and the agents found little enthusiasm and motivation to overcome the economic struggle the country was entering into.  Finally, a year ago that office closed.  It really was the right thing to do.  Most agents were doing little to nothing by that time.  In our former broker's defense a dozen or more offices have closed in the area.  So, it wasn't specific to our location.

There were a few of us who were highly self-motivated who simply moved on.  I actually joined that company because I was very self-motivated, and I didn't need the broker looking over my shoulder all the time.  I also didn't need weekly pep rallies to keep listing and selling homes.  I love the job.  When the office closed I started my own company and it's doing well, but my questions for you are,

"What do you, or what does your office do during hard times to keep your agents motivated and on track?  What keeps the agents excited when it becomes a real challenge to succeed in their profession?  How do you deal with the agents who need that extra boost to stay steady during slow time?"