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

NEWLY LISTED IN OYSTER REEF CROSSING, HILTON HEAD PLANTATION

Tue, 28 Jul 2009 06:32:44 -0500

This lovely hard coat stucco home, located at 14 Pearl Reef Lane in Hilton Head Plantation constitutes an excellent value. Lovingly maintained by present owners, the home has 3 bedrooms and 3 full-baths, 2 living areas that flow from a convenient open floor plan plus a screened porch that overlooks a serene tropical lagoon setting. Additional ameneties include 2 fireplaces, hardwood floors and ceramic tile.

OWNERS HAVE VERY REALISTICALLY PRICED THIS HOME @ $509,000. AT PRESENT, THERE IS AN EXECUTIVE TENANT IN PLACE WHO WOULD BE HAPPY TO STAY IF FUTURE OWNERS DESIRE A SHORT TERM RENTAL IN PLACE PRIOR TO MOVING.

EASY TO CLOSE--NOT A SHORT SALE OR FORECLOSURE BUT PRICED FOR TODAY'S MARKET!

FOR MORE INFORMATION, PLEASE CONTACT ME THROUGH MY WEBSITE . I LOOK FORWARD TO INTRODUCING YOU TO HILTON HEAD PLANTATION, LOCATED AT THE NORTH END OF HILTON HEAD.

CELL PHONE: 843-247-5419

It Ain't Easy...Being Green: Earth Day 2009

Thu, 23 Apr 2009 19:39:57 -0500

Via Claire C. (ActiveRain Corporation):

Today is Earth Day, and where most of the world chooses to focus on recycling and global warming today, I am focusing on something much, much more important.

My great-grandmother used to say to me, "Red, use it up, wear it out, make it do or do without. That's the way we did it during the Depression, and that's the way you should do it now. Any other way is wasteful and does a disservice to your family and neighbors."

Growing up, that's exactly what we did. My great-grandmother was big on finding deals and discounts, using something until it was dead, and extending the life and quality of the things we already have. This, of course, was from back before being "Green" was in style, before global warming was even on our social radar, and before people thought frugality was just a fad.

It was sometimes amazing to hear her stories about a time that was simpler, a time where community was so much stronger, and a time that money wasn't everything. She lived simply even in her old age when money was more plentiful and she could do more than play Bridge with her friends or go down to the Bingo Hall.

Sadly, my great-grandmother is no longer with us today, but every Earth Day, instead of rolling my eyes at the harping on recycling or buying into the "Green" products that stores are touting, I think about what I could do to live more simply. What could I use up? What could I wear out? How can I make do? Can I do without that XYZ item at the store?

Many don't know this about me here on the Rain, but in my off-time, I'm also a Frugality Blogger. I teach classes to those who want to live a simpler life, to those who either want or need to make do for a while. I run articles at least three times a week about how to simplify. What's my point? My point is that I'm not trying to talk out of my *** here, but to pass on a very valuable lesson from my dear ol' great-granny and those days so long ago where they didn't have the choice to follow this advice.

Here's some simple things you can do to simplify today, and every day:

1. Instead of running to the store (wasting time, gas, and money) for one ingredient, find something to substitute in your meal. Use AllRecipes.com's ingredient search to try a new recipe, or if you're brave enough, swap your asparagus for the broccoli that will die a horrid death in three days.

2. If you have barely used clothing that is still in style or that you love, but it's a size too big or too small, learn how to sew. For those of you who aren't handy, invest in a tailor; generally, alterations are much less costly than new clothes, and you're not tossing perfectly good clothing into the black hole that is Goodwill.

3. If you're out of shaving cream, use conditioner (this is one of my favorites!). Use lemon and baking soda to clean wooden cutting boards. Vinegar and water cuts grease in the kitchen (especially that awful black stuff that comes from cooking there for a year)!

4. Use used dryer sheets to dust off electronics. They're soft enough for the screen (after use) and they eliminate that awful static cling that attracts dust!

5. Use those single lost-mate socks to help clean up spills on the rug. You're not going to wear them anyway, so spray your spot cleaner on the spot, pull the sock over your fist, and use twisting motions to sop the stain right out!

The main lesson here is to really think about what you're throwing out, donating, giving away, or leaving behind: Can you repurpose it? Can you substitute something else in its place? Can you use it up before you have to throw it away?

Happy Earth Day 2009, everyone! Here's looking forward to a simpler life.

Top 10 Things I Love About Real Estate!

Thu, 23 Apr 2009 19:39:17 -0500

Via Christa LaFarlette (Keller Williams First Coast Realty):

I just feel the need today to blog about the top 10 things I love about real estate. I am sitting here in the aisle of our church sanctuary watching my daughter dress rehearse for her weekend performance, and enjoying my wireless (yet again!).

I'll go backward in true Letterman style:

10-I can update my files while eating ice cream and sitting on the floor!

9--I can market my listings in the middle of the night, giving new meaning to flex hours:-)

8--I was at my son's Special Olympics Torch Run today, when most were working, discussing strategy with my Team Leader! We really do have great tools----

7--I told my husband I needed a new laptop with tablet that would fit in my purse, so I could take it with me everywhere---and he bought it for me (I love you honey:-))!

6--Commission checks ROCK!

5--I get to go into the most fantastic homes, and NO ONE assumes I am burglerizing! And I'm not, so it's all good.

4--Did I mention that commission checks ROCK!

3--Passive income through referrals. Having a lazy week? No issues--refer away!

2--I can write off my mileage and gasoline expenses--for the most part! Love that!

AND THE NUMBER ONE REASON----

1--I always have a reason to start talking to total strangers! And they always have something new to chat with me about! AND--I call that prospecting, and so does my Team Leader (does that mean I can write off my gym membership?)

But really, I do love what I do, and I hope it shows. As I have never known another type of market--this one is working for me, and successfully. So, I am joyful and it is good! Just thought I'd share. Now, check out my new One Team-Keller Williams First Coast fan page on Facebook and let me know your thoughts!

Respectfully---Christa

(who is watching the choir leader slowly lose her mind----too many kids, not enough parents)

YEO - Numbers That Mean Something

Thu, 23 Apr 2009 19:38:11 -0500

Via Jeff Turner (Real Estate Shows):

Last Thursday I wrote about Why Twitter Follower Counts Mean Nothing.

The post touched off some interesting public and private discussions. The number huggers are everywhere and their logic, in a very comfortable, that-sounds-like-something-i've-done-before, kind of way, can certainly appear sound. They ask questions like, "Why broadcast to 10 people when you can broadcast to 10,000?" Who could argue with that, right? <raises hand> The clue to the answer lies in the question itself.

Broadcasting?

Is that really what we're doing in the social media space? Some think so. I don't. I received a direct message from Matt Rathbun this morning that contained a link to a page selling a Twitter Mini-Course Book. I'm not sharing his site. I'm not giving Snake Oil salesman link love. Matt wasn't kind in his analysis.

The people who will succeed by treating Twitter, Facebook and other social networks like electronic direct mail are people who are selling “magic” solutions for growing your business to people looking for “easy” “I want results now” answers. And those successes will be short lived. Because that’s not how effective social media marketing works.

Engagement Is The New Marketing Metric.

Engagement through Social Media is aligned with how trust is built, how real relationships form and transactions result. "Working to build relationships (over time)" is not as easy to sell as "attract more customers now!" But those who see its wisdom will profit in the long run.

In 2008, Forrester Research rightly stated that "engagement" was the new marketing metric. "Using engagement, you get a more holistic appreciation of your customers' actions, recognizing that value comes not just from transactions but also from actions people take to influence others. Once engagement takes hold of marketing, marketing messages will become conversations, and dollars will shift from media buying to customer understanding."

All the numbers that really matter are related to engagement. Forester proposed a four "I" concept for measuring engagement.

Involvement tracks site visitors, time spent, page views and more (old-school stuff)

Interaction measures the contributions to blogs, photo and video creation and uploads, and purchases

Intimacy tries to understand consumer attitudes, perception, and feelings about a brand through surveys or monitoring technology as well as applications providing an interactive environment between brand and consumers

Influence measures the likelihood that consumers will recommend or advocate products or brands

I'm not against numbers per se. But the numbers must mean something. Would truly engaging with 10,000 be better than truly engaging with 10? Of course. But the key to the value in that statement is the word "engaging." How many people can YOU truly engage? It's going to be a different number for you than for the next person stumbling onto this post.

YEO (You Engaging Others) is not focused on YOU. It's focused on OTHERS. YEO is about communicating in a way that allows you to be heard above the noise. It’s about listening more than talking. And it's impossible to listen when all you're doing is broadcasting.

MOTION FOR SUMMARY JUDGMENT OF FORECLOSURE - DEFEATED! AND HOW I DID IT

Tue, 14 Apr 2009 17:09:18 -0500

Via Richard Zaretsky, Florida Real Estate Attorney (Richard P. Zaretsky P.A. ):

Today I used a new technical defense to successfully defeat a motion for summary judgment for foreclosure and I wanted to pass it on to other attorneys (or those who know attorneys) helping homeowners in foreclosure.

This happened in Florida, but other states' rules could provide the same type of relief.

The bank filed its foreclosure some months ago and the homeowner tried to represent himself and did a poor job of it because there were several deficiencies in the pleadings filed by the bank. Then I came into the picture just 8 days before a scheduled court hearing to grant the bank's Motion for Summary Judgment of Foreclosure, at which time the public sale date for the house would have been set.

As with most foreclosure suits the promissory note could not be produced so the bank was going to produce at the hearing an Affidavit of Lost Promissory Note. This is permitted under a special state statute that creates a mechanism to prove up a financial instrument that was lost by the holder.

However, the Rules of Summary Judgment say that any pleading to be used by the moving party (here, the bank) must be filed with the court and provided to the other parties at least 20 days prior to the hearing.

The bank complied with the lost note statute (they had the lost note affidavit to give to the judge), but not the court rule about the 20 days, I argued -- and the judge agreed and denied their Motion for Summary Judgment.

This whole exercise was not to create a delay so the client can live in the house for free -- it was obtained so the client can complete a short sale (he still needs a buyer) and avoid a foreclosure deficiency judgment that will haunt him for the next 20 years.

I pass this on in the hope that this customary practice by the lenders will be recognized by attorneys and used to help out those needing more time to find a better solution than foreclosure.

Copyright 2009 Richard P. Zaretsky, Esq.

Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website www.Florida-Counsel.com. See our easy to find articles at Need Short Sale Information? - These Articles Probably Answer Your Question

The Squeeze Play...In Baseball Or Real Estate...!!!

Tue, 14 Apr 2009 17:14:30 -0500

Via Fran 'The Title Man' Gaspari Title Insurance-PA & NJ (Patriot Land Transfer, Inc.):

There's a play in baseball they call the 'squeeze play'...rather than explain it with Xs and Os...Let me just say that it contains elements of surprise, bunting, quickness, timing, and a whole lot of luck...

When it works (about half the times it's tried) it looks impressive and ingenious and results in a run scored...when it doesn't work, however, it looks awful, stupid, too risky, bush league, and desperate...

Now, let's look at real estate...

Real estate is often like that...there are many 'squeeze plays' in real estate...when the risks seem to outweigh the advantages...but a lot of real estate results are unpredictable...that's why we don't get paid by the hour...

Trust is very important in a 'squeeze play'...the runner at third must trust that the batter will make contact with the pitch, otherwise the runner will be tagged out foolishly at home...

How often is 'TRUST' misplaced in a real estate transaction...or how often is someone, just learning, made to look like an expert, but, in reality, is a novice at best...

I can think of many 'squeeze play' stories in my career in real estate...some are funny, and some are not so funny...

Personally, I love the 'squeeze play' in baseball, but when it comes to messing with someone's largest life investment or tinkering with some family's American Dream, I'd rather not take the risk...!!!

'SAFE', is the only call for a true Real Estate Professional...!!!

SPRING HAS SPRUNG! IT'S DAFFODIL TIME IN BLUFFTON, SOUTH CAROLINA

Tue, 26 Feb 2008 13:33:13 -0600

Spring in the Lowcountry! I have daffodils on my mind today as we are experiencing some much needed rain here in the Hilton Head, Bluffton, South Carolina Lowcountry.

A sure sign that winter days are past is the annual tradition of picking daffodils at Calhoun Plantation located along Pickney Colony Road in Bluffton. Years ago, (many years ago), Calhoun Plantation was a working daffodil farm but ceased operations in the 1970's. Despite that, the daffodils continued to flourish and are just as beautiful today in their natural form.

The present owners open the fields to the public for approximately 3 weeks each year. Many families make it an annual tradition to visit the daffodils and bring some home. If you're visiting the area during this time, you may want to take some time to stop by!

For hours of operation, you can email the owner , Mary Connors @ mconnor@hargray.com

Google, Yahoo and Microsoft are staging the web

Sun, 15 Feb 2009 14:00:30 -0600

Via Maureen McCabe - Central OH homes (Real Living HER - Worthington office):

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.

A four letter word

Sun, 15 Feb 2009 13:58:32 -0600

Via Federico Astiz (The Pepper Group Diversified):

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.

Stimulus Bill Extends Energy Efficiency Tax Credit

Sun, 15 Feb 2009 13:57:11 -0600

Via Stephanie Edwards-Musa, Realtor ® Spring/Woodlands, TX Real Estate (Prudential Gary Greene, Realtors ®):

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!

How Much Should You "Put Down"?

Sun, 15 Feb 2009 13:56:10 -0600

Via America's #1 Mortgage Broker/858-777-9751:

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.

Tips from Our Mexican Taxicab Drivers on How to Develop a Referral Only Business

Sun, 15 Feb 2009 13:54:14 -0600

Via Ryan Shaughnessy, Broker/Attorney - Your Lafayette Square Real Estate Partner (PREA Signature Realty - www.preasignaturerealty.com):

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.

The Constipation Effect of Short Sales

Sun, 15 Feb 2009 13:50:24 -0600

Via Kristal Kraft ~Denver Real Estate~303-589-2022 (The Berkshire Group Realtors):

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?

Welcome to Denver Dwellings Blog! If you enjoy reading about Denver real estate and things to do in Colorado be sure to add this blog to your feed reader, just click on the RSS puzzle to the left.

Are you looking to buy or sell a home? Contact me directly or click on these icons to either search all the homes for sale in the Denver metro market or to request a market analysis on your home. Thank you for stopping by my blog, leave a comment or two, I'd like to hear what you have to say.

Realtor.com Listing Enhancements----YES OR NO FOR 2008?

Mon, 24 Mar 2008 15:46:02 -0500

Yes, it's that time of the year when Realtor.com starts the relentless calls to remind me that I need to renew my Listing Enhancement subscription. I made the mistake this year of not tracking what business came my way as a result of my yearly contract with them. Of course, sometimes, it's just downright difficult to know where that buyer came from now that we have the AR miracle and buyers so readily find us through the search engines. How many times do we ask buyers how they found us and they fuzzily tell us something that we feel comfortable attributing to AR just because we know it's so. One thing we know for SURE, IS THAT ACTIVE RAIN WORKS!!!

My friends, I hope you'll report back to this post and let me know if you are using Listing Enhancements on Realtor.com as well as your nays and yays. I guess I'll have to make the renewal decision soon but quite frankly, I'm starting to wonder if it still has the impact. OPINIONS PLEASE???

Credit Scoring - Balances (3 of 6)

Fri, 30 Jan 2009 19:11:42 -0600

Via Steve Kappre, Gloucester County, NJ Loan Officer/Mortgage Planner - 856.419.3561 (Treasury Mortgage):

One of the most misunderstood areas of a credit score is the "balances" part of scoring. I say that it is misunderstood not because it is complicated, but because people tend to have no idea why their credit score is low, when in fact they are carrying very high balances on their credit lines, a common factor in a low credit score.

I've seen credit reports where people were never late on a payment, yet their scores were in the 580's. That isn't exactly a score to get excited about. The credit scoring model views such a person as a higher risk, and grades them accordingly.

Your balance-to-credit limit ratio makes up 30% of your credit score, only second to that of payment history. Here is an example to understand how your balance is calculated: You have a $1,000 limit on your VISA card, and your current balance is $500, so you are at a 50% ratio. The higher your balance is to the limit, the more it affects your credit score. It is even possible to go above your credit limit, which can really hurt your credit score.

PRICELESS TIP ... Assuming you have two credit cards with a $10,000 limit for each card; It is better to have a $10,000 balance divied up between twoo credit cards, having a $5,000 balance each, then it is to have the same $10,000 in debt on one credit card (leaving the other card with a $0 balance). Use this system to maximize your credit score.

CAN WE FIX IT?
YES WE CAN! - Some fix-its for some common problems.

You can transfer balances from one card to another to "balance out" your debt ratio per card. Depending on the scenario, this could improve a score by 50+ points.

On occasion, a creditor will not report your credit limit. Therefore whenever you have any balance on that account, your score is calculated as having credit accounts over the credit limit, negatively impacting your credit score. What can you do to remedy? Ask for your creditor to report your limit to the credit bureaus. This should usually work. Another option is to max out your card and immediately pay it off. When you do this your credit limit will be reported at the dollar amount you just used your credit card up to, and your balance ratio will then be accurate. If utilized this second way, your "new limit" should show for about 13 months. NOTE: Do not max out your card if you do not have the money to immediately pay it off. This will do far more harm than good.

Ask for a credit limit increase every 6 months. If you have paid your accounts on time, and a creditor hasn't automatically raised your credit limit, you can call and ask that they do so. Sometimes they will automatically do it, and sometimes they will say that they have to pull your credit. I would suggest you don't have them pull your credit, as it would hurt your score.

Doing a balance transfer to a business credit card that is not reported on your personal credit profile is one way to raise their score. Often business credit is not on one's personal credit profile.

This article is number 3 in a series of 6. Don't miss the other important factors in the credit scoring model, including many other ways to inrease your credit score.

Many scenarios are delicate and very specific action should be taken. Incorrect action can have a negative affect on your score. Contact me directly to discuss your options and next action steps to improve your score or to qualify for your new loan. ~ Steve Kappre

Credit Scoring - What Makes Up My Credit Score? (1 of 6)

Credit Scoring - Payment History (2 of 6)

Credit Scoring – Balances (3 of 6)

Credit Scoring - History (4 of 6)

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The Constipation Effect of Short Sales

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.

Realtor.com Listing Enhancements----YES OR NO FOR 2008?

Credit Scoring - Balances (3 of 6)

CAN WE FIX IT? YES WE CAN! - Some fix-its for some common problems.

CAN WE FIX IT?
YES WE CAN! - Some fix-its for some common problems.