Dear John, Diary of a Real Estate Professional

First Impressions mean alot.   Even changing the impression of the seller can have a dramatic impact on selling the listing.   If you can get the seller excited about showing their home, that can generate some valuable word of mouth promotion.

A staging consultant is a third party who adds validation to your instruction to your seller.   It takes you out of the equation when talking about those tough topics.   The Staging Consultant will act as unbiased third person who will tell the seller exactly what the home needs get make their home stand out above the competition.

Here are few tips you can use to get that listing into shape.

http://www.realtor.org/rmohome_and_design/architecturecoach/articlearchive/1007_architecturecoach_artwork

We all know someone who got screwed out of a deal.   Maybe it has even happened to you.   Your Buyer gets ready to buy and uses another agent.

I was taught early to make sure you don’t work for free.   I only work with Buyers that agree to a Buyer Agency Agreement.   Even then, some of them choose not to work with me or terminate the agreement.

The important thing is that you enter into this relationship as business relationship.   Your clients need to know that you are operating as a business.

This article sums up why and how to enter into Buyer Agency Agreements with your clients.

Daily Real Estate News

I know it sounds crazy, but actually checking your credit score can lower your credit score and cost you money! You can check your score for free without damaging your score.
Find out how to check yours.

I am a firm believer in technology.   I use it to make my life earsier and improve my business.   Recently I found some odd charges on my cell phone bill.   I have it set up on autopay so i don’t review the bills each month.   Twice in the last 3 months I found that I was being charged for service I did not order or did not even know what they were.   One was a remote fax service for $12 per month.   When I called my carrier, they claimed that they could not help because it was billed by a third party.

I thought, “Wait a minute, its on your bill and its crazy that you can’t help me get rid of it.”   Anyway, I was in no mood to aurgue so they gave the number to call.   They told me I enrolled for their service on-line but could not tell me what site it was.   Apparently, it was in one of those long disclaimers most people click to agree to but never read.

They did agree to credit me for the bills.

I suggest you check your Cell phone bills carefully.   Here is an interesting article that explains how this happens.

Getting out of the office or at least not working 10 -12 hours a day is hard to do.   The nice weather is making it a little easier to enjoy the outdoors.

Margie is itching to get her (and mine) hands dirty in the garden.   I have to admit she is a little more motivated than me to spruce up the yard.   I’m just looking forward to relaxing in the shade having a cold one.

Even with the slow economy, people will be in the yard busy with those outdoor projects.

I always knew for myself but this article validates my thought.   Selling a home is no different than selling anything.   The Buyer has to like what they see.   They want to be able to picture themselves “behind the wheel” or “take it out for a spin”.   It’s hard to do that with a house so you have to help the buyer along.

Staging does that.   As a Real Estate Professionals, its easy to imagine how a house will look when occupied.   We are looking at it with an analitical perspective.   We sometimes forget the Buyer has in an emotional perspective.   They have to love the house first then get analytical.   Staging provides that great first impression.

The numbers don’t lie either.   Take a look.  

Personally, January was good for me.   I had one closing and 2 listings.   February is shaping up to be just as good.   One closing scheduled and 2 listings already and the month isn’t even halfway over!

I hope you are having just as good a start!

Wow.   I spent a good part of last Saturday in a large cold room learning about NACA.   I was really impressed with what I heard.

Generally, I don’t get too excited about these so called Neighborhood Organizers.   Especially with all the bad press about ACORN recently.   But this group has something truly valuable to offer.

They offer low mortgage rates for people who other wise would not qualify for a mortgage.

The Neighborhood Assistance Corporation of America (“NACA”) is a non-profit, community advocacy and home-ownership organization. NACA™s primary goal is to build strong, healthy neighborhoods in urban and rural areas nationwide through affordable home-ownership. NACA has made the dream of home-ownership a reality for thousands of working people by counseling them honestly and effectively, enabling even those with poor credit to purchase a home or refinance a predatory loan with far better terms than those provided even in the prime market.

NACA “ America™s Best Mortgage Program
The incredible NACA mortgage allows NACA Members to purchase or refinance homes with:

• no down payment,
• no closing costs,
• no fees,
• no requirement for perfect credit,
• and at a below-market interest rate.

The best part of this program

I just love this concept and hope other organizations follow this model.

I know I have been busy and it seems like my collegues have been too.   The expected expiration to the First Time Home Buyer Tax Credit motivated buys to take action in October and November.   Now that the Tax Credit has been extended and expanded, we should expect to see the trend continue into 2010.

For nine straight months, pending home sales have risen.   According to RISmedia, the Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, increased 3.7% to 114.1 from 110.0 in September, and is 31.8% above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.

Read more: http://rismedia.com/2009-12-01/pending-home-sales-rise-for-ninth-consecutive-month/#ixzz0YXrQL3RC

It happened faster than I thought it would.  

Watch the current edition of This Month in Real Estate

As a Real Estate Professional, I have a selfish interest in extending the credit but as a conservative American, I see problems with the plan.

I believe the FTHB Tax Credit did prevent deeper negative economic impacts but at what costs?   Did we simply buy future business and artificially impact the natural balance of the market?

Did we also create a current reluctance for buyers to wait till a decision to extend the program comes or when it does end, will buyers wait to see if it comes back and delay buying?

Did we create an expectation that the Government should always pay for some people to buy a home?

Did we place ourselves in a position where to be fair, shouldn’t we give everyone money to buy a house?   A “Where’s my money” mentality.

To think about it, the tax credit is your money.   Is it fair to ask your neighbor to finance your house?   We also did it for the “Cash for Clunkers”.   Where will it end?

Here is an interesting article related to the topic.

A lot of people like to sit on the fence when making major decisions.   Most think the real estate market has not bottomed out yet and still want to wait to get the deal of their life!.   What they don’t realize is that home prices are just one part of the equation.   Interest rates are expected to rise and will impact the affordability of home ownership.

Stare Are Aligned for Buyers- and Time Is of the Essence

I consider myself to be somewhat tech saavy but it is hard to keep up with all the new stuff happening out there in cyberworld.   Social networking has taken on a life of its own and I’m not really sure if there is any real business value in it.   I guess everyone else is doing it so I should too.

But there are pitfalls and legal issues to consider.  

Even a seasoned real estate professional can get bogged down with all the challenges in the market today.   Foreclosure sales present a whole array of issues.   Starting with finding the diamond in the rough.   You can expect to spend more time and energy working a foreclosure sale but the payoff can be lucrative.

If you™re considering the purchase of a home that is now owned by a bank, it™s also important to know at the outset just how much work you™re in for ” and how much it is going to cost you. Many foreclosures are in various states of disrepair; some of the fixes are cosmetic, but some can be extensive.

Read more: http://rismedia.com/2009-10-04/finding-your-dream-foreclosure-what-to-know-when-youre-buying-an-reo-property/#ixzz0T5Mo6oj5

The so called experts were wrong again.   Home sales in February were up an unexpected 5.1%.  

They were wrong about the American economies ability to properly react to market conditions.   Investors are driving the market right now.   As existing home sales continue to rise, prices will stabilize and traditional buyers and sellers will enter the market to capture amazing real estate values.

Tell me what you think.

I am proud to announce that Keller Williams Realty West has found a new home in Cottleville, MO.   We are a launching Market Center which means we are a new real estate sales office.   We were fortunate to have been located in the St Charles Economic Development Center through most of last year.

We look forward to moving in to our new home within the next month.   The City of Cottlevile has welcome Keller Williams in thier family.

Many exciting things are planned for Cottleville in the next couple of years.   I hope you will be a part of too!

2010 Budget Likely Will Target Mortgage Fraud
President Barack Obama™s 2010 budget plan would boost resources for the Federal Bureau of Investigation and the Department of Housing and Urban Development to crack down on mortgage fraud. It would also increase funds for affordable housing…….more form Realtor.com

No Negotiation of Preforeclosure Sales Commission
Servicing Guide, Part VII, Section 504.02: Contacting Selected Borrowers
Effective March 1, 2009, closing of preforeclosure sales may not be conditioned upon a reduction of the total commission to be paid to real estate agents to a level below what was negotiated by the listing agent with the borrower, unless the fee exceeds 6 percent of the sales price of the property in aggregate. Servicers are reminded that they must continue to obtain any approvals that may be required by interested third parties in connection with preforeclosure sales.

I started my week faced with a 4 day trip to Orlando FL to attend the Keller Williams Family Reunion.     Honestly, I was not that excited at the prospect of spending 3 1/2 days sitting in uncomfortable seats listening to a bunch of RAH RAH! non sense.   Nor was I excited about spending my own money for the trip.

Well little did I know what I was into.   It would take me hours to tell you all that I learned and how truely excited I ended up.     I believe it would have cost me more NOT to go in the long run.   I learned so much to jump start my business in those few days.

One person I enjoyed meeting was Wendy Patton.   She spoke about working with Short Sales and REO deals.   She has many vidoes on UTUBE that i suggest you check out.

To end up the week, on the way home from Orlando, I met a guy in the bar who is selling a home in Wisconcsin, and buying a home in Arizona.   I made referrals to agents I met at the FR.   Then I met a buyer prospect on the plane and invited another prospect to my investor group.

A pretty good week!