How to REALLY Write Your Own Paycheck (and Cash it too!)

Wouldn't it be great to write your OWN check?

One of the first questions I ask Agents during an interview is how much they would like to make. Inevitably, I will hear, “I expect to make $120,000 to $150,000.” Newly licensed Agents will quickly follow this with, “But this first year, I figure $50 to $60K.”  When you ask them how they came up with that number, they’ll tell you that they figure, via their contacts, sphere of influence, family and friends, they will close at least 1 deal a month, with an average commission of $10,000. Great goal; would LOVE to see it happen, and work my darndest to give them the tools they need to get there…

Yet did you know that, at the height of the market, a Broker/ Manager would expect a newly licensed Agent to close only 3.2 transactions their first year? With an average commission of less than $4,000? If you just did the math, you’d see we’re off by, oh, a wee bit here… I’m sure it comes as no surprise, then, that 87% will leave the industry within the first two years.  

Read more in our next post about a very simple way you can avoid massive failure and not only survive but thrive as a licensed Agent.

Cheers for Clean Closings!

This year the inventory of Active Residential listings in the ARMLS system has decreased dramatically. This is fantastic!!

The majority of the reduction is the result of Short Sale and REO properties closing. Along with the Short Sale and REO properties come some special circumstances which agents must be aware of, must research, and understand. Knowing what the documents contain and how they affect the transaction is the Agents’ responsibility and job.

At the point where the Financial Institution becomes involved (either listing side or sale side) there will be several documents (addenda, counters, notices, etc.) sent to the Listing and Buyers agents. Don’t be intimidated by these documents. It is your job as a knowledgeable, professional agent to know what the documents say and the ramifications if they aren’t followed explicitly! These documents make reference to almost every major item in the AAR Residential Purchase Contract. In so doing they usually modify the terms of the AAR contract and become the overriding terms and conditions for the transaction. Some of the more common changes (this is not an all inclusive list.) are:

1. Payment of Closing Costs: Don’t let your Buyers get to the closing and find out that they are paying several of the Sellers’ closing costs.

2. Close of Escrow date change (and per diem charge if not extended).

3. Automatic cancellation of the contract and forfeiture of the earnest money if the transaction doesn’t close on time and no extension has been executed (IN WRITING!).

4. Inspection period and notifications in conjunction with the inspection.

As I’ve said, these are a few of the items in the addenda, etc. Every Financial Institution has a different form so don’t assume that the terms are the same, even if the paragraph headings look or sound the same. It is your responsibility to read and understand what is in the addendums, etc for your transactions.

The Brokers here at PRRG and AzDRE make a very concerted effort to be knowledgeable and aware of most of the pitfalls in the addendums, notices, etc; however, we certainly cannot know each and every term or condition in all addenda. So please consult with us on any item you do NOT understand in all of these documents—BEFORE THEY ARE ASSIGNED!— and we’ll try to sort it out together. As is always the case, CYA, and keep those clean closings coming!

5 Powerful, but Little-Known Tips for Selling A Home in a Down Economy

You’re ready to sell your home and so you’ve hired the best REALTOR® for your home and priced it right.  You’ve also decluttered your home and cleaned top to bottom, made necessary repairs and freshened up the outside, too, to give your home an advantage so that it won’t languish on the market with the thousands of homes that are for sale as well.   But what else can you do?

Phoenix, Arizona, REALTOR®, Christa Lawcock, offers some powerful but little known tips for homeowners to help their home stand out from the crowd and sell quicker in any economy. 

1.         Give your home a unique and memorable name!  Most home buyers will see at least 7 homes on any one day. With the high number of homes on the market, a homebuyer may see as many as 100 homes before they make an offer!

Don’t let your home get lost in the blur. By giving your home a name, you’ll increase the likelihood it will be remembered.  Use a name like “Casa Blanca” or “The Bear House” or pick a name that reminds you of your home.  Make sure you have a professionally-made sign posted outside the front door which will truly make a positive first impression.

2.        Get your neighbors involved! Have a “Pick Your Neighbors” pre-listing party and ask them to invite all of their friends to come.  Your neighbors already have a vested interest in the neighborhood, so why wouldn’t they want their friends to have the first opportunity?

3.         Let the sunshine in!  Open all the drapes and blinds and turn on the lights.  Light makes a house look bigger and more visually appealing. 

 4.         Make it seamless.  You can do this by visually connecting rooms via color, theme, or even sound. For example, tuning radios, the television, and even computers to the same station can make moving from room to room seem less disjointed.

5.         Create comfortable sitting areas.  Cookies baking in the oven are a REALTOR® favorite because they make the home smell great. Go the extra step, though, and place a platter of cookies in the room with the best view or feel, along with some small bottled waters, pretty paper napkins, and a small sign thanking them for seeing your home and inviting them to sit down and enjoy some snacks.

Don’t limit yourself to the kitchen, or even the inside of the house! If the best views are from the Master Bedroom, bring in a small bistro table; if it’s the patio, place the platter there. The point is to capture their attention and make them comfortable. While they’re sitting, they’ll take in the view or the feel of the home, which is, after all, what you want!

The first three weeks that a home is on the market are the most critical period for selling it. It gets the most exposure during this time, and the most showings, too.  By having your home priced correctly and ready from day one, using a reputable and experienced REALTOR® and using some of these little known, but powerful tips, you will optimize your chances for selling as quickly as possible.

About Christa Lawcock:

Christa Lawcock, REALTOR®, CNE, ABR, e-PRO, MRE, is the Director of Marketing and Associate Broker for Principal Residential Group LLC, a full service boutique real estate firm in Phoenix, Arizona specializing in Central Phoenix, North Central Phoenix, Arcadia, Willo District, Encanto Palmcroft and Historic Phoenix Homes.  They founded and run several monthly real estate tours in the valley include the Central City REALTOR® Tour, The Urban REALTOR® Tour and the Central Phoenix/Biltmore/Historic Phoenix Buyers Open House Tour. 

They are located at 3113 N. 3rd street, Phoenix, Arizona. http://www.prarizona.com.  602-258-4416.  Follow their blog at http://www.principalresidential.wordpress.com.   Connect with them on Twitter at http://www.twitter.com/christalawcock.

What about Short Sales?

As of December 19, 2008 REALTORS utilizing the MLS system now have a new tool through a partnership between banks and homeowners for a preapproved price on some Short Sale properties.

Pease note this is a pilot program which helps minimize the guess work for our clients on price negotiations; gives shorter wait times due to direct access to the lender servicing the original mortgage; and increase the transparency for all parties on the Short Sale process.

This means that if a potential buyer makes an offer at the listing price, the lender will accept the offer if the transaction meets other standard requirements (e.g., asset check, fraud detection, and no second liens, etc.).

Basically, the banks are working harder than ever to compete with the ease of the REO buying process. So whether it’s a Short Sale, an REO home, a general investment property, or the home of your dreams, our Agent has a program to meet your needs!

But Who ARE You?

Remember when you were a teenager? You’d sit in a darkened room, hair covering one eye, writing your “poetry” about your life. Filled with angst, it asked all those tough questions, “Who am I? Why am I here? What is my purpose?”

It was all so melodramatic…

And yet, so true!  And, unfortunately, these questions don’t go away as we get older. Sure, we “figure it out” the moment we mark our major on the college entrance form. And yeah, we knew exactly what we wanted to be when we graduated. That first job showed us we maybe needed to give it some more thought…as did the second and quite possibly the third. Hitting the big 25 made us rethink our priorities; 30 definitely shifted our perspectives, and at 36 (we were OK with 35 for some reason—it’s the 36 that kicked our butts!), we went running back to the “Who am I? Why am I here? What is my purpose?” mantra.

We thought we had it figured out each of those times, and for a while, we really did.

And then the market came crashing down. The daily newspaper ridiculed us, the nightly news harpooned us. Clients hid from us, and investors threw multiples at us like we had done to Buyers before them…

Is it any wonder we’re stressed out and seeking solace and solutions, trying to once again figure out who we are? If we even want to be what we are/were? And where we go from here?

Self-reflection in times like these isn’t a bad thing. And in fact, I think it’s great that we ARE thinking about what we want and who we want to be when we grow up (again).

Yesterday, I asked that you figure out the image you want to project, and the week before, what sets you apart. Today, we’re going to develop your brand a little deeper, and it starts with your logo.

What, did you think a logo was only for corporations?

Um, I’ve said it again, but it bears reminding: You and your business are a corporation.

There are a lot of great graphic artists, designers, and business coaches who can help you create a logo, but before you hand over Brand You to someone else, why not give it a shot yourself? Before you panic, know I’m not going to ask you to sketch something out, or grab your paintbrushes or even sing a little ditty…I’m going to ask you to develop a very clear, concise picture in your head of who YOU are and what YOUR LOGO looks like. You can then take that idea/image, Google some images to see what strikes you, and then turn it over to an advertising genius. Or, you may find that the image in your brain matches something you see, and stick with it.

You want help and a starting point, I hear ya…Please remember that I don’t know everything, and don’t pretend to be the Master. I know what works for me, though, in my unique business, and because of this, I’m going to clue you in on what worked for me, why, etc, just like I did yesterday. So bear with me…

Yesterday, we talked about my being a gatekeeper. I have two businesses: The one is my own real estate business, where I help clients buy and sell property. The second, though, is my real estate brokerage, where I help my clients (otherwise known as “my” Agents) sell THEIR clients homes. In both cases, I want my clients to see me as someone they can confide in and trust. I (and the Agents I work with) don’t sell “houses”, but rather, we sell homes, and a home to me is a place where you feel safe and calm. Sometimes when people start thinking of “calm”, they start moving r-e-a-l slow, so making sure I keep them on task and remind them of time is really important. I can’t forget who our primary clients are, either: While we service clients in all price ranges and throughout all areas of town, we started as and maintain a boutique firm, and a good majority of our clients are upper-middle-class homeowners.

When I put all this together in my head, I had this vision of a great, gated courtyard. I had in my head a very Spanish/Mediterranean-styled home, with Old World charm. I typed in “gates” first, and started perusing images. I must have gone through about a hundred till I moved off of just “gate” and over to “courtyard”. I wanted some greenery, but no flowers (flowers to me would have been too stodgy, too classic, too “English School Marm” for the image I was trying to project). I looked at another hundred or so, until I came across this image of a courtyard with old pillars and an empty, wide wicker chair. Now, to some people, they may have thought it looked very cold and desolate, but to me, the empty chair was perfect, because it allows my clients (Buyers and Agents) to see themselves in this chair. I added a clock (time) and boosted the greenery (no flowers!), and then stepped back.

On the one hand, the courtyard did indeed appear to be one you’d see in a Spanish-style home. But you didn’t see the home itself; in fact, you didn’t even see an outline. Which, in looking at it, really worked for me. While you want your logo to be very specific to you, if you get too specific, you’re really limiting your potential client base. While the home has a “rich” look to it, our first-time homeowners are not going to feel intimidated, either, because this courtyard isn’t a Louis XVII, manicured courtyard scene; it could just as easily be a scene from a mass home subdivision as it could a sprawling estate in Paradise Valley.

And it is unlike any other out there (see, you knew I’d get to the “uniqueness factor” sooner or later…).

I’m not going to claim it’s perfect. It’s a very expensive logo to have. Depending on what I’m having printed, the clock may appear as more of a white dot than an actual clock; and sometimes, the green gets lost in the blue background. And, because it’s an actual image, with multiple colors and shading within it, every time I have it replicated on my signs, I pay for a full color charge.

Its pluses, though, outweighed the minuses. And it’s a logo that has not only served us well, but stood the test of time, which is really, really crucial. Remember a minute ago, when I mentioned who our clients were? Right now, many of our clients are struggling. They may be losing their homes, their sense of security and community. That same courtyard—the one that knows no economic limits—can offer them protection and shelter, and that same chair can help them “take a load off”. It’s a blank slate, a new beginning. Its home. And for my Agent clients? When they’ve been beaten up and battered and they feel alone, they know they can come in, sit down, and we’ll be waiting to hear them, help them, and learn from them.

Now that you know where we started, I want you to take a few minutes, and think of the words that describe Brand You. If you can sketch/draw/color/paint, by all means: Break out the Crayola 64 and get on it. Or, for those of us less artistically inclined, seek out some images from your favorite web browser and see if anything “pops”.  Get a few of them together, and then…

Put them aside until tomorrow!

What is an REO?

Before the property is labeled as an REO (Real Estate Owned), it is first known as a foreclosed home. When a bank or mortgage company forecloses on a home or property owner, the law requires that the property is held in a public foreclosure auction by the bank. If no bidders purchase the home, then the bank will end up owning the property, which is why REOs are also referred to as “bank owned properties.”

The bank is now responsible for the home and the taxes. Since the bank cannot legally sell REO homes to buyers, they procure the services of a real estate broker or agent to list the home for sale to the public. The broker or agent, along with the REO Manager, will then negotiate an offer within the bank. Most REO homes are typically sold in “as is” condition, but the good news is, you are still able to make inspections during the inspection period. And while most banks will not make the repairs, there is never any harm in having your Agent request repairs to be made, or for a credit at closing so you can make the repairs.

Brand YOU

There are 700,000 members in NAR. Our state association, AAR, consists of 42,614 members. And one of the local boards—the Phoenix Association of REALTORS®–is home to 1,800 Agents!  We all offer the same “product” (homes to buy or sell); have the same tools (ARMLS and portal, anyone?); and the same general message (“Real estate is good!”). 

Sticking out in the crowd, then, may seem like an impossible task! But it isn’t, really, and it can make—or break—your business.

That’s why branding is so incredibly important! You see, while yes, we may have the same product, tools, and message, the way we utilize these tools is incredibly individual!  For example: I personally do not give my clients or prospects daily updates on their portals. Instead, when I first set someone up on a Portal, I explain that I am going to give them updates three times a week, for the first two weeks. This is so they can see what comes up, the average price range, and also, quite frankly, so they can see what goes OFF the market and how quickly things can move. After two weeks, we sit down (yes, I said, “Sit down,” as in, I meet them in person, at my office, and look them in their eyes…), and we discuss what they’ve seen, what they like, and if they want to continue in that search, add to it, or start anew. I then move them to receive updates of their portal only once a week, typically on Thursday. This way, I can find out what they want to see for Saturday, and on Friday, can make the appointments…and unless they’ve told me that they aren’t moving for an extended period of time, they are taken off the portal completely within 3 months. While the portal itself costs me nothing to manage (love technology and auto emails!), the way I run my business is that I am not only the information gate keeper, but I’m also their personal real estate guru. I value our relationship, and customer service and interaction is key. I’m not a nameless, faceless data pusher, and I’m not a cab driver or a lockbox opener. The data alone can’t replicate my services; so it’s either a package deal or no package at all.

Same product that you have (the portal), but a different use for it. 

And that use of it is part of my business plan, which is centered entirely on my brand. Brand ME.

Since we started this little experiment, you should have your basic business plan already written out; figured out what you want and what you do well (your UVP), and what services you offer that are unique to YOU. So far this week, we’ve discussed who you want to be and the image you want to create. I’ve given you a glimpse at how I brand myself; but that’s just me. Google some other REALTORS you admire; see what their websites say about them, how they are projected, and the impression they leave you with on-line as well as in your past experiences with them. Take half an hour to do this. And then think about what you like, what you don’t like, and why; and what, if anything, you want to do differently.

EE Cummings once said, “It takes courage to grow up and become who you really are.” The Army then said, “Be all that you can be.” But what do you say?

Finding YOU

Brand U January 27, 2010

There are 700,000 members in NAR. Our state association, AAR, consists of 42,614 members. And one of the local boards—the Phoenix Association of REALTORS®–is home to 1,800 Agents! We all offer the same “product” (homes to buy or sell); have the same tools (ARMLS and portal, anyone?); and the same general message (“Real estate is good!”).

Sticking out in the crowd, then, may seem like an impossible task! But it isn’t, really, and it can make—or break—your business.

That’s why branding is so incredibly important! You see, while yes, we may have the same product, tools, and message, the way we utilize these tools is incredibly individual! For example: I personally do not give my clients or prospects daily updates on their portals. Instead, when I first set someone up on a Portal, I explain that I am going to give them updates three times a week, for the two weeks. This is so they can see what comes up, average price range, and also, quite frankly, so they can see what goes OFF the market and how quickly things can move. After two weeks, we sit down (yes, I said, “Sit down,” as in, I meet them in person, at my office, and look them in their eyes…), and we discuss what they’ve seen, what they like, and if they want to continue in that search, add to it, or start anew. I then move them to receive updates of their portal only once a week, typically on Thursday. This way, I can find out what they want to see for Saturday, and on Friday, can make the appointments…and unless they’ve told me that they aren’t moving for an extended period of time, they are taken off the portal completely within 3 months. While the portal itself costs me nothing to manage (love technology and auto emails!), the way I run my business is that I am not only the information gate keeper, but I’m also their personal real estate guru. I value our relationship, and customer service and interaction is key. I’m not a nameless, faceless data pusher, and I’m not a cab driver or a lockbox opener. The data alone can’t replicate my services; so it’s either a package deal or no package at all.

Same product that you have (the portal), but a different use for it.

And that use of it is part of my business plan, which is centered entirely on my brand. Brand ME.

Since we started this little experiment, you should have your basic business plan already written out; figured out what you want and what you do well (your UVP), and what services you offer that are unique to YOU. So far this week, we’ve discussed who you want to be and the image you want to create. I’ve given you a glimpse at how I brand myself; but that’s just me. Google some other REALTORS you admire; see what their websites say about them, how they are projected, and the impression they leave you with on-line as well as in your past experiences with them. Take half an hour to do this. And then think about what you like, what you don’t like, and why; and what, if anything, you want to do differently.

EE Cummings one said, “It takes courage to grow up and become who you really are.”

7 Winning REO Buying Tips

If you’re looking for a new home or investment opportunity, purchasing an REO can be the right choice. Since REO properties may involve some competition, here are some helpful tips to make your offer shine above all the others!

Tip #1: Get the property history!

If the home is under-priced, the bank will accept an offer somewhere between the original mortgage balance and the foreclosure sale price.

 Tip #2: Verify Comparable Sales!

Go to the surrounding neighborhood to determine what the REO is worth. Look at pending sales. Look at active listings and those that have closed within the last 90 days.

Tip #3: Consider listing Agent’s REO sales!

Since many REO Agents deal in volume,they typically apply the same pricing principles to all their REO listings.

 Tip #4: Number of Offers!

No offers = offer less than asking price. More than 2 offers = offer above asking price.

Tip #5: Preapproval Letter!

Get preapproved for your choice of lender in advance!

Tip #6: Shorten Inspection Period!

Ask for less inspection days to be deemed as the more serious buyer.

Tips #7: Offer to Split Fees!

Escrow fees, transfer fees… offer to split and the bank will feel more amenable to accept your offer!

10 Steps to buying an REO

1. REO properties are sold at foreclosure auctions on a daily basis. Having a local REALTOR on your team to help alert you to hot properties is key!
2. Once you have found an REO property find out the selling protocol for the bank marketing it.
3. Before making your offer, have your REALTOR check if there any other pending offers.
4. The bank will only accept an offer from an Agent or Broker, so make sure you have one before taking the next step.
5. Need a loan? Get your loan application underwritten (not just preapproved or pre-qualified).
6. There will always be a counter-offer so be prepared.
7. Make sure your offer includes an inspection contingency that allows you to withdraw if the inspection reveals major issues.
8. Banks do not provide disclosure statements because they typically do not have them. But that’s where a home inspection comes in handy!
9. Offer to close escrow quickly for the best chance of acceptance.
10. You will get a home for a better price BEFORE renovations, and have the control over work done and its quality.

Tax Credit Extended!

Now really is the time to buy! The $8,000 first-time home buyer tax credit that took effect on January 1, 2009 was extended past its original deadline of November 6,2009 to April 30, 2010!

The IRS defines a first-time home buyer as someone who has not owned a principal residence during the prior three years of a purchase.

A first-time home buyer purchasing a primary residence between the dates of November 6, 2009 to April 30, 2010 may qualify for the tax credit that is equal to 10% of the home’s purchase price up to a maximum of $8,000. This tax credit only applies to home sales at $800,000 or less. And the tax credit does not need to be repaid, unless the home is sold or ceases to be used as the buyer’s primary residence within three years of the initial purchase. 

Also as of November 6, 2009, there is $6,500 tax credit to repeat home buyers who have owned and lived in their previous home five consecutive years out of the last eight years. This available on contracts signed until April 30, 2010.

For more information on qualifying for your home buyer tax credit, call an Agent today!

Current Number Of REO Properties For Sale

Some interesting statistics:

Phoenix 1,508

Tempe 136

Scottsdale 372

Paradise Valley 17

Mesa 474

Chandler 210

Gilbert 210

Queen Creek 131

Carefree 6

Cave Creek 41

Surprise 188

Peoria 179

Glendale 289

Sun City 81

Tolleson 57

Avondale 96

Goodyear 100

Apache Junction 78

Source:  http://armls.flexmls.com

 602.258.4416

www.prarizona.com