Where Have all the “real” Realtors gone?

Whatever happened to the full service Realtor? There are so many discount Realtors, offering discount service that the true full service Realtor has been facing extinction. In this challenging market, can you really afford a discount Realtor or to be a discount Realtor? Fortunately both the consumer and these part-time, sometimes, discount Realtors are now becoming a dying breed. They both realize this model does not bide well in today’s marketplace. Personal attention has become important again.
That being said, I come back to my original question… “What ever happened to the true full service Realtor? Some of you may be saying, “I am right here” or “My Realtor is full service.” Can this really be true? When was the last time your Realtor (or you) presented an offer in person? Of course the large number of short sales and bank owned properties make this near impossible, but on a conventional sale does your Realtor (or you) present in person? Fax machines, e-mail, Blackberry, text messaging, e-Fax…does anyone ever talk to anyone anymore. Does anyone meet with the Seller and Seller’s agent face to face to “make the deal work”? As a Realtor that learned to present in person whenever possible, I still continue that practice. Unfortunately, I find it more difficult to follow that practice as the Seller’s agent does not find it necessary to represent the best interests of their client and meet face to face. I can think of several deals that have been “saved” by being personable and working with a person, not a piece of paper. Details can be explained and worked through instead of fought through. Everyone starts on the same page, therefore the entire negotiation moves more quickly and productively. All parties realize that everyone is after the same goal, a fair deal for all.
The electronic age has definitely created a shift in the way we conduct business, but we do not need to depersonalize it. I find it disheartening how so much of the younger generation cannot leave a proper voice message. Forget written communication, unless of course it is a text- message full of text lingo. The only way they know how to convey the use of humor is with a “LOL” or  emoticon. People skills, presentation skills and just plain talking to people have become a dying art. Real estate is not sales, it is a people business. Once you lose the ability to relate to a person and build lasting relationships, you lose the ability to build and grown your business.
As you make the “shift” in today’s world and use all this wonderful technology, social networking and short cut communication, remember to “keep it real”. Talk to your clients, fellow Realtors and anyone else you want to build a relationship with. Pick up the phone and make a lunch or coffee date with that past client. What about that colleague you think of often but haven’t seen in awhile. Do that once a week and watch your business bloom. After all, real estate is a conversation. Let’s talk.

Could a real estate trade be the answer to getting your home SOLD?

Need to sell your home?  Shifting in size, price and location?  Do you find yourself wanting to upsize, downsize, move to a new location but aren’t sure you can sell your current home before that “perfect home” gets snatched up by someone else?  Perhaps you should consider a real estate trade.

 In today’s real estate market, we are faced with unique challenges brought on by current market conditions.  Lending is more difficult to obtain, especially for a jumbo loan (a loan for more than $417,000 in the Arizona market).   With the equity in the home you already own, you could reduce the amount of a loan you would need.  In some cases, you may not even need to obtain a loan.

Creative Realtors are working trades to satisfy their client’s wants and needs.  To make a real estate trade work for you, be sure to hire a Realtor that is familiar with trades.  Ask them if they participate in a trade networking group.  Most successful trades come from your Realtor’s ability to network.  It’s difficult to find others willing to trade if your Realtor does not “hang” with other Realtors that trade.

If you want to learn more about real estate trades, please feel free to contact me.

Foreclosure, Short Sale and REO…What does it all mean? What are the differences?

Everywhere you look, listen or try not to listen you hear the terms foreclosure, short sale and REO in reference to real estate.  So many people toss this jargon around without really knowing the difference and so many more hear it and are afraid to ask what it all means.  Are they the same? Are they different and if so, how are they different? What about loan modifications? Today, you get the answers.

What is a short sale?

“A short sale is a real estate transaction in which the sales price is insufficient to pat the liens encumbering the property and sale costs, but the seller is unable or unwilling to pay the difference.”  – Michelle Lind, AAR General Counsel

What is a REO(real estate owned) or foreclosure, and what is the difference?

“Real estate owned (REO) are properties that go back to the mortgage company after an unsuccessful foreclosure auction.” -Bob Corcoran

These are often referred to as “bank owned” properties.

What is a loan modification?

“A loan modification is a permanent change in one or more of the terms of a mortgagor’s loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford.” – U.S. Department of Housing and Urban Development

Now you know the jargon.  But what does all of this mean? 

Foreclosures and short sales mean you will lose your home, unless you are the buyer.  If you are the buyer, you will be purchasing a home at a rather large discount.  Also, you will have a tax consequence with your short sale.

If you qualify for a loan modification, you will be able to stay in your home and have the payments become affordable.  Not everyone will qualify for a loan modification and it is up to the discretion of your lender.  It is a very lengthy and involved process, but worth the effort to be able to keep your home.

REOs- The New Madness

REO (Real Estate Owned), also known as bank owned properties, are the new madness.  If you remember the madness of the real estate market in 2004-2006, the REO market of today is experiencing the same madness.

Buyers need to be ready, willing and able to make the transaction work.  Just like the ’04-’06 madness, having cash gets the deal done. Keep in mind that it takes more than just cash.  Low ball offers will not work to purchase a REO property. Most REO properties are priced well, and the banks are not looking at discounted offers. A buyer who insists on low balling offers is just wasting time and energy.  

It is a stressful process. Negotiations are difficult and tempers are short.  Buyers need to remove emotion from their purchase and think “strictly business”. Don’t plan on finding your dream home, but you will find a good deal on a home.  Who knows, you may get lucky and be able to make it your dream home.

In April 65% of sales in the Valley (metro Phoenix) were REO properties.  This is good news for reducing the inventory of homes for sale, especially for distressed properties.  As this inventory is depleted housing prices will stabilize.

Now for the bad news… With the government moratorium on foreclosures being lifted, expect to see another wave of foreclosures hitting the market in June.  Don’t waste a good recession.  Get out there and buy a home that is “on sale”.

Susan Talarico’s Real Estate Blog

Artfully uniting extraordinary homes with extraordinary lives.

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Real Estate is a conversation.

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Don’t waste a good recession!

It seems nearly impossible to pick up the newspaper, listen to news or pick up on a conversation that doesn’t stress how bad the economy is.  You hear about job loss, business failure, sluggish housing market and so on.   Even if you have not been directly affected yet, you will be.  For some, it can be a positive thing.  A recession is a great time to buy goods at a discounted price.  Cars, luxury items and houses are all great bargains now.  You can wait around and see if the market still goes lower on these items, but at what costs?  By the time we figure out we have hit the bottom, or the media “announces it”, you have missed the mark.  No one is going to ring a bell when we hit the bottom.  All economic indicators are showing we are mulling around the bottom and may have already hit the mark.  We see small improvements in some sectors of the housing market, especially in home prices under $500,000 in the Scottsdale, AZ market.  We are even seeing bidding wars for homes under $300,000.  Much of this is fueled by the first time home buyer tax credit of $8000.

Now is the time to “get off the fence” if you are looking to buy real estate.  Wouldn’t you hate to waste a good recession?