Realtor Diane Bell's Hilton Head and Bluffton Real Estate Blog

We talk about staging homes here on ActiveRain, a big part of home staging is de-cluttering. The good news Google, Microsoft and Yahoo are getting together for some spring cleaning and de-cluttering of the web.

"Google, Yahoo and Microsoft Collaborate to Clean Up Web" by reporter Miguel Helft in the Bits Column on the New York Times site quotes Matt Cutts:

"There is a lot of clutter on the Web and with this, publishers will be able to clean up a lot of junk,” said Matt Cutts, an engineer who heads Google’s spam fighting efforts. “I think it is going to gain traction pretty quickly.”

This is not about fighting malicious spam on the web though, it is about naturally occurring "duplicate content," non malicious duplication that the search engines sort through the best they can, now. They've just decided to collaborate and use a new tool to de-clutter the web.  The Big Three (search engines that is...) are cooperating  to sort through the kind of duplicate content that is not trying to game the search engines. 

It's a new web standard.  I first read about the collaboration on Search Engine Land in "Google, Yahoo & Microsoft Unite On “Canonical Tag” To Reduce Duplicate Content Clutter"  yesterday.  It is way over my head. 

Each of the three big search engines announced their intent to combine to clean up the Web on their own site.  The Google Webmaster Central Blog has their announcement  "Specify your Canonical"  using a Swedish Fish example.

The canonical url is the real thing.  It's authoritative.

I think the explaination on the Microsoft blog is the easiest to understand:

"... Live Search has partnered with Google and Yahoo to support a new tag attribute that will help webmasters identify the single authoritative (or canonical) URL for a given page. The link tag defines a relationship between a document and an external resource. In this case, that resource is the canonical URL. The following is an example of the new link tag attribute for canonicalization:

<link rel="canonical" href="http://mysite.com"/>  "

ActiveRain

There's been worry about duplicate content on ActiveRain since the beginning.  When Localism was first introduced "duplicate content" became a worry for some... Same content showing up under two diffferent URLs.   Then ActiveRain introduced "Outside Blogs" or  the "antiquated and hilariously dilapidated" Outside Blogs which have now been replaced with "Individual Blogs."  Three urls same content.  Then there's "re-blogging" which some members think is evil.   Applicable?

Think of it from the point of view more of it being easier for you to find things via the Internet than something to put on your list to do... or even to understand.... Google, Microsoft and Yahoo are going to do all the heavy lifting, the people behind the scenes will work on the details for those of us who are clueless and confused. 

The  web will look better for the clean up.

I hate to admit it, but "bank" has truly become a four letter word.

I was sitting at my desk a couple of days ago, when one of my co-workers going thru the MLS, rhetorically asked:  "price increases?....who the heck increases their prices in this kind of market?" I was busy and did not respond, but the question lingered in my head, bouncing around my skull like a shout in an echo chamber.

It was later that evening when checking e-mails, that I recognized the address on one of the"auto-prospecting" messages.  Sure enough, it was a listing where one of my buyers had a $1,000 over LP seller-accepted offer waiting for seller's lender's approval.

I opened it up, and to my amazement, the listing price had been increased from $120,000 to $126,300, and under "Agent Remarks" it read: "original buyer canceled - send all offers"

I couldn't believe it.....the question in the cob-webs of my mind had been answered! ....it was the banks, trying to squeeze every drop of blood out of their "soon-to-be-theirs" inventory....and it was My Buyer!

......they just weren't content with selling the property at market value, they wanted to see if they could get juussst a little bit more!.....and they didn't even give us the professional courtesy (right or wrong) of notifying my buyer and I!!

Maybe in an up-trending market, this kind of strategy would've made sense, but under current conditions, with the seller already in default, and knowing that out here in the west, the foreclosure fuse is only about 90 days long, they just sentenced the seller to a foreclosure on his record.

Not to mention the extra cost of the foreclosure, additional selling time trying to find another buyer, and the potentially detrimental effect on their solvency, of having yet another piece of property on their books.

One other point comes to mind, they just indiscriminately walked away from a contract without even a hint of additional negotiation ..... if you provide the seller with an offer by a willing and able buyer, at full listing price or above, and the seller rejects the offer, ....isn't the seller liable for a commission?

The bank could argue that they were not the seller and that "they", had not signed the listing agreement, therefore, claiming innocence.  They might even encourage you to take "Joe the seller" to court and try to get your commission money.

But, isn't the bank acting as "seller de facto" when they step-in at the end, and make ALL the decisions that are rightfully a seller's to make?....final sales price, any give-aways or concessions, closing costs, choosing the Title company, COE dates, how much commission to pay the Realtors, changing the listing price on MLS, changing the locks on the property, etc., etc.

It would be interesting to see how this scenario pans out in a court of law .... I guess I will soon find out when I send the bank the bill for my commission.

I guess the banks just don't care.  Not content enough with utterly ruining their industry, they are now stepping-in and trying to upset ours.  They make their own rules as they go, ....they are ignorant of real state law, and regard the MLS/Commissioner's rules with contempt.

In short, they are tromping on the delicately balanced world of real estate law and ethics, with the carelessness and clumsiness of a neanderthal.  They handle themselves in a most unprofessional, unethical and illegal manner. 

They need to be made accountable....they need to be stopped....they are out of control...they got us into this mess!  If we go along with them, we will be just as guilty of messing up the real estate industry as they are of the financial system collapse.

Kind of reminds me of the joke about the color gentleman (politically correct?), on his way to get a vasectomy and his friend asks him: " Why are you wearing a tuxedo to go get a vasectomy?" and he responds: "If I'm gonna be impotent, I wanna look impotant!".

So, if the banks want to act like the sellers, they need to become the sellers. 

The records show that 3 out of 4 short sales fail, and more and more of them are becoming foreclosures due to the inadequate, time-consuming and cumbersome system used by the banks. It only follows, that short sales need to be done-away with altogether, except in the most necessary of cases.

A Short Sale is only a notch above a foreclosure, and it is at par with a Deed in Lieu of Foreclosure.

So rather than the usual walk thru the fog, dictated by THE DEPARTMENT OF REDUNDANCY DEPARTMENT, where we list the property, get an offer, get it accepted by the seller, and then, we start all over again with the bank as the seller, to find out if they'll counter or even approve a contract weeks down the road ....

 .......why couldn't we just eliminate the middle man, allowing the seller to DEED the PIQ to the bank IN LIEU OF FORECLOSURE, and then just treat it like a normal REO?

At the very least, we would be now clear who the owner is, ....we would know that the bank is signing the listing agreement, ..... the commissions would be set as a percentage or a flat fee ahead of time, ....and the banks would be a lot more motivated to get off their butts and move that  property OFF their shelves!!! 

The days when banks were regarded with awe-inspiring admiration, pillars of our society, are long over. 

Today, their image has been reduced to that of bottom-feeders in the lagoon, no longer able to stand up to the greatness they once commanded.

"So far the industry hasn't shown any kind of foresight. One reason foreclosures are so rampant is that banks and their advocates in Washington have delayed, diluted, and obstructed attempts to address the problem."  Quote from: How Banks are worsening the foreclosure crisis ...read 2/13/09 article here http://news.yahoo.com/s/bw/20090213/bs_bw/0908b4120034085635

There seems to be something sinister and perverse about the way the banker's minds' operate....and please excuse the frivolity with which I use such blanket statements, I know that individually there are many good people trying to make a living at these institutions.

It could be the intoxicating effect of swimming in so much money .... maybe it is the God-like power they exert over people's lives .... where they can improve or ruin somebody's life with the stroke of a pen .....maybe it's just ignorance or lack of empathy....

....it reminds me in a sick way of a serial killer's profile, where the crime is committed not for the destruction of life, but for the feeling of absolute control over someones life.

Like that old chinese proverb reminds us ..... "we can't put fresh tea in the cup, until we ger rid of the old tea"  ...... so I say, ....cut the rope and let the dead weight fall to the bottom....most of the banks are walking dead already.......as Realtors, let's stand up for our industry and regain our sesnse of professional pride.  

Because negativity, whining and otherwise just Chicken Little type complaining makes me tired I always try to find the positive side to things. Since the Big News has been the Stimulus Package the past couple days, that's where I was trying to find something positive. 

It should be no surprise that Energy Efficiency and Green Collar Jobs have a potential WIN with the Bill. I ran across an article on CNET that laid out much of this information and MORE

• Tax Credits for projects that have Electricity derived from Biomass, Landfills, etc. were extended through 2013.  

Which we will Desperately NEED because they are now offering a $7500 Tax Credit for Plug In Electric Vehicles.  That should put a nice little strain on some already Taxed Grids throughout the US.

• The $2000 Cap on the 30 percent Tax Credit for Solar Hot Water was lifted and now matches the 30% on Solar from the October Bailout.

Which Homeowners in Houston TOTALLY wish they had during Hurricane Ike last year when we had no power for weeks on end!

• $30B to spend on Smart Grid, Advanced Batteries and Energy Efficiency
  

Although much of the Energy Efficiency will go toward Federal Buildings - Advanced Batteries for Solar Systems is Fantastic!

All of that is great, but probably the ONE thing that I am personally the MOST excited about is this- According to the article that I read on CNET:

"To retrofit existing homes to be more efficient, the bill extends and expands tax credits for purchase "such as new furnaces, energy-efficient windows and doors, or insulation," according to the committee report. The House and Senate versions extended these credits to 2010 and increased the level to 30 percent with a cap of $1,500 on combined purchases, according to Environment and Energy Daily (subscription required)."

These credits were set to expire at the end of 2009.  With much education still in order for Homeowners on how to Make the Homes more Energy Efficient, I am THRILLED that this was in there.

So, you have another year to replace your Furnace, get new insulation and all that other SEXY GREEN stuff that makes your electric bill lower!

 

Down payment requirements, for mortgage loan programs,  have increased over the past 12-18 months.  Here are some examples:

• FHA hiked the statutory down payment to 3.5%
• Piggy-back mortgages, using second liens, are all but dead.  Conventional loans, with down payments of less than 20%, require private mortgage insurance (PMI).  PMI companies have hiked down payment requirements.
• State loan programs, like the CalSTRS loan program, suspended “no-down” programs
• Jumbo loans require hefty down payments

The larger down payment requirements were implemented to “limit loss exposure” to the lenders and guaranteeing agencies/insurers.  That’s good right? Well, not necessarily good for you, the borrower.  Low down payment loans, while more expensive, help to limit buyer losses in a down market.  Low down payment loans transfer market risk from the borrower to the lending institution; it makes the borrower “too big too fail”.

That’s EXACTLY what these big banks and brokerage firms did; they borrowed so much that they became “too big to fail”.  Former Labor Secretary, Robert Reich, outlines the conundrum we face by consolidating the companies who were “too big to fail” into  larger institutions that are…REALLY “too big to fail”.

What’s that mean to you, the would-be home buyer?

You never want to borrow money you can’t afford to pay back…BUT…a low down payment loan just might give you some insurance against a declining real estate market.  It gives you LEVERAGE with the lender when things get…a bit dicey.

Why do banks rush defaulted loans, against homes with lots of equity, to foreclosure while they are more apt to “negotiate” a loan modification with a delinquent borrower who is “underwater?  Banks have to deposit a “loan-loss reserve”, with the FDIC, when mortgages become delinquent.  If the prospect of recovery is slim, some banks simply “write-off the loan” (to avoid that deposit with the FDIC) with hopes that they’ll recover SOMETHING later.

If higher downpayments “protect the lender” against market risk, it is only logical that the market risk is transferred to…the borrower.

That’s you.

On occasion, it seems that we are so overloaded with everyday tasks that we sometimes fail to see how simple marketing can be.  The best advertisement for our services is our existing customers.  Good customer service generates more word-of-mouth referrals and repeat business than 100 advertisements.  So, when it comes to marketing, you don't need to have a large budget.  You just need to focus on your customer.

Recently, I spent 10 days in Acapulco and Guanajuato, Mexico.  During both legs of our wonderful vacation, I encountered Mexican taxicab drivers who had wonderful insights on how simple marketing can be.  Both taxicab drivers indicated that referrals and repeat business were the secrets of their success.  Their approach was simple - standout from the crowd, add value, and deliver as promised.

 

 Here were their secrets to developing a referral only business:

Be the Best:  To be the best, you don't need to have a huge marketing budget, the best connections, etc.  Rather, you need to be committed to being the best.  It all starts with with the right attitude.  To succeed in business, you can't wait for business to come to you.  You need to promote your business and go after it.  It isn't good enough to say that you are the best.  You need to show that you are the best and it all starts with great customer service.  Both taxicab drivers understood that repeat business was a better revenue source than waiting at a taxi stand for the next call.  To these two drivers, success and repeat business started with a customer-centric approach.

Be Honest:  When you deal with the public, you must develop a rapport with the customer.  It all starts with being honest.  There is no sure fire way to destroy rapport than by simply saying what the customer wants to hear, misquoting the price or costs of a service, etc.  Customers want to know how you are getting paid and the costs to them at the outset.  When we first arrived, we were a bit jaded.  We were waiting for the usual time-share, resort hustler-type approach.  When our plane landed, we were set to meet our driver at the exit.  We had a "helpful" person direct us to our driver only to learn that he was directing us to a counter to receive a sales pitch for another resort.  Now, it may have been a great deal and the resort could have been fabulous.  However, when we understood we had been snookered, the merits of the deal were meaningless and the sales pitch fell on deaf ears.

Add Value:  In any business, it is important to provide a service with added value.  In the case of our taxicab drivers, they weren't simply the safest drivers, the most likable drivers, etc.  Rather, they added value.  They weren't just drivers.  They were tour guides and concierges who made recommendations on dining, shopping and sites to see.  They explained the cost differences between shuttle services and their taxicabs or why using a concierge from the hotel to call a taxicab involved a fee split and was often more expensive than hailing a taxicab on the street.  Simply put, they saved us time and money.

Exceed Customer Expectations:  It is important to exceed expectations.  When we got into the taxicabs, we expected to be driven from Point A to Point B for the quoted price.  However, in Acapulco, when the taxicab driver arrived at the local market, he didn't simply leave.  He offered to wait for no charge while we shopped in the local market.  He suggested reputable vendors.  Whether we went to the recommended vendors or not, he kept a watchful eye over us and intervened on occasion to negotiate a better price.  Similarly, in Guanjuato, the taxicab driver could have dropped our bags at the curb at the airport.  However, he didn't stop there.  He insisted on carrying our bags into the terminal to the airline counter.  It was this type of above and beyond the normal service that attracted our attention. won our repeat business, and generated more income (both in the form of repeat business and tips).

Communicate - Talk to Your Customers:  If you want to have repeat business, you have to be willing to talk to your customers.  Being prompt is not enough.  Delivering a service at the best cost is not enough.  You have to develop rapport with the customer.  When you talk to your customers, you develop rapport.  When you develop rapport, you establish a connection or bond and you increase loyalty.  By developing a loyal following, you increase the likelihood of referrals and repeat business.  We used the same taxicab drivers throughout the trip when they were available.  However, these taxicab drivers would not have obtained the repeat business if they had simply remained silent and delivered us to our destination.  Doing your job is good; but doing a good job and connecting with your customer is better.

Use Testimonials:  As we talked to the taxicab driver in Acapulco, he explained his services and told some great stories.  Now, I initially didn't believe all of his stories about his famous customers.  During the conversation, he pulled out a 3-ring binder.  In the binder, he had a series of letters from his customers from the average tourist to politicians, movie stars, etc.  Well, if Kissinger and Stallone felt obliged to send letters of thanks, I thought we must be in good hands.  The 3-ring binder with customer testimonials created instant credibility.

Make It Easy:  Before we exited the taxicab, both drivers provided us with their business cards.  In Acapulco, the business card included the estimated costs for point to point deliveries from our hotel.  He had a box with pre-printed cards for each hotel zone.  In Guanajuato (a smaller town), the taxicab driver didn't just give us his card.  He left a note for us at our hotel that we received the next day indicating his direct telephone number and offering to drive us to the airport.  He even suggested a timed delivery and offered to pick us up at a specific time. 

In conclusion, it doesn't matter if you're a taxicab driver or real estate agent, the simple fact is that your business depends on relationships and if your clients and customers aren't staying with you for the long haul and referring their friends, there may be a flaw in your system.

At PREA Signature Realty, we believe in focusing on the customer and want to be your Realtor for life.  We want your business and your referrals.  If you a looking for a customer-centric, value added approach from the person representing you in the purchase or sale of your home, please contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381 or by email to Ryan@PREASignatureRealty.com.

Not that I need it, but validation in always nice. This week I wrote about short sales in the Denver metro market. Today John Rebchook of the Rocky Mountain News follows with a good article discussing short sales along with quote from fellow real estate associates.

There are agents who make a living chasing the short sale and foreclosure markets. They of course are advocates of the process. Many others feel the opposite, short sales to them are a waste of time.

Jim Smith, owner of Golden Real Estate, had this to say about them this week in his online real estate column: "Having listed a short sale myself, I have experienced this colossal waste of time, and I'm no longer willing to list such homes."

Smith said banks won't tell you the amount they will accept until you bring them a "live" contract, and the deals usually fall apart because it takes such a long time to get an answer from the lender.

Lou Barnes, principal of Boulder West Financial, agrees. There are so few short sales being completed that they aren't worth the effort, Barnes said.

"I was teaching a real estate class and I told my students that they would be better off doing their laundry than wasting their times on short sales," Barnes said.

I believe the entire short sale process is congested with unrealistic bids on properties. True to the business, the bottom feeders come out, placing bids on properties that have no chance of ever getting accepted. Yet these bids are presented to the banks and gain a position on the desk of the short sale administrator.

What happens next takes forever. The time involved to get to the file often fends off real buyers. This sort of frustration causes a ripple effect that resonates through all parties in the transaction.

No body want to waste time, money and effort on a useless cause. It gives the industry a black eye.

What needs to happen with the banks is more efficient organization. A front-end traffic cop that looks at the file, knows the banks break-even, bottom line number and immediately sends the offers without a breath of hope packing.

Get the useless crappy offers off the desk!

By making sure only the bids that have hope and potential of getting accepted you loosen up the time restraints on the over-worked administrators. Giving them an opportunity to do focus on getting their job done will help the industry. It will save countless wasted hours, many disappointed buyers and send near-bankrupt and distressed homeowners away so they can rebuild their lives.

We need one thing right now.

That is consumer confidence.

May we have some Please?

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