Green, I am (now)
I’ve not put a lot of stock into being “Green” until this year. I felt it was a political issue that was being exploited just to have one more thing to disagree about. You know what? I still think it is, but being good stewards of the earth we’ve been given just makes sense. I think we can make ourselves crazy with trying to be over-zealous with it. That doesn’t excuse some good common-sense actions to help keep our “home” clean and healthy.
One thing I’ve decided that the real estate industry can do much better is stop using so much paper. It’s ridiculous the amount of paper that is sitting on my desk… Therefore, I’ve created a list of things I think that we can do better:
1. Stop printing out e-mails, just because you don’t know how to save them in sub-directory or make a reminder to use it later.
2. Stop putting 100 flyers in flyer boxes, when you can refer the potential buyer to a URL (on your sign) of a www.RealBird.com free website just for your listing.
3. Stop putting flyers in flyer-boxes for homes at the end of a remote dirt road where no one is going to drive by.
4. Associations can stop sending magazines, newsletters and postcards to cater to agents who still thinks it’s 1979. Those who are truly interested in the information will read the e-mail, blog or webpage.
5. Brokers can stop putting memos in the agent’s box or copying e-mails or on-line articles because they don’t know how to forward them. If the agent is too lazy to go where the information is, or read the Broker’s e-mail – kick ’em to the curb.
6. To all the junk mailers: You can stop sending junk to me that goes STRAIGHT to the recycle bin. (The junkmail I get alone, will save an entire forest, if they’d stop sending it)
7. RE instructors can stop printing out countless handouts and student manuals for classes. Put the hand-outs on your webpage and let agents know where the reference material is, if they want it. Only about 10% of adult students will refer back to materials after the training.
8. Stop printing out 20 homebooks for homes. Leave CD’s in the home. If your homebooks are really good, the buyer agent is likely to take the materials to mimic your ideas. Make an on-line homebook and leave a tent card with the URL to your Real Estate Show, survey’s etc…. If the buyer is really interested in the property, they’ll go to the webpage.
9. Minimize relocation books. I know that there is value in giving consumers information they can hold in their hands, but a 300 page relocation guide is overwhelming and useless. Create a minimal packet, with reference to the relo page on your website / blog.
10. Consider using Digital Signatures for your clients, instead of printing out countless documents just to fax them.
11. Don’t print out PDFs and other documents because it’s “easier to read” when you know that you’ll discard it immediately after reading.
12. Buy printers capable of double sided printing… and uuussseeee it.
13. E-mail contracts back and forth during ratification and only print out pages with changes to turn in.
14. Stop sending out calendars and other type products to clients who put your calendar on their fridge, but then hire their son-in-law to list their home because he’s new to the business and needs a start.
15. Stop littering my subdivision with non-compelling flyers that you made on a 1998 version of Publisher, with bad clip-art.
If you’re bent on using all the paper flyers and such, now what works! Don’t just throw stuff out there that is going to cost you time and money and not work.
If you’re going to ignore all these thoughts (you’re not alone) please have paper recycling boxes in your homes and offices, that you use and turn into recycling companies for your area.
Got more ideas? Please share ’em in your comments!
Disputing a property’s value in a short sale: turn a no into a go
During a short sale, there may be various obstacles, with misaligned property values ranking near the top, but it doesn’t have to be a dealbreaker!
It’s about getting your way
Were you on the debate team in high school? Were you really effective at convincing your parent or guardian to let you do things that you shouldn’t have been doing? How are your objection-handling skills? Can you flip a no into a go?
When working on short sales, there is one aspect of the process that may require those excellent negotiation or debate skills: disputing the property value. In a short sale, the short sale lender sends an appraiser or broker to the property and this individual conducts a Broker Price Opinion or an appraisal, using special forms provided by the short sale lender.
After this individual completes the Broker Price Opinion or the appraisal, he or she will return it to the short sale lender. Shortly thereafter, the short sale lender will be ready to talk about the purchase price. Will the lender accept the offer on the table or is the lender looking for more? If the lender is seeking an offer for a lot more than the one on the table, mentally prepare for the fact that you will need to conduct a value dispute.
Value Dispute Process
While each of the different short sale lenders (including Fannie Mae) has their own policies and procedures for value dispute, all these procedures have some things in common. Follow the steps below in order to conduct an effective value dispute.
- Inquire about forms. Ask your short sale lender if there are specific forms that you need to complete in order to conduct a value dispute. Obtain those forms if necessary.
- Gather information. Your goal is to convince the lender to accept the buyer’s offer, so you need to demonstrate that your offer is in line with the value of the property. Collect data that proves this point, such as reports from the MLS, Trulia, Zillow, or your local title company.
- Take photos. If there are parts of the property that are substandard and possibly were not revealed to the lender by the individual conducting the BPO, take photos of those items. Perhaps the kitchen has no flooring, or there is a 40-year old roof. Take photos to demonstrate these defects.
- Obtain bids. For any defects on the property, obtain a minimum of two bids from licensed contractors. For example, obtain two bids from roofers or structural engineers if necessary
- Write a report. Think back to high school English class if necessary. Write a short essay that references your information, photos, and bids, and explains how these items support your buyer’s value. This is not something that you whip up in five minutes. Spend time preparing a compelling appeal.
It is entirely possible that some lenders will not be particularly open-minded when it comes to valuation dispute. However, more times than not, an effective value dispute leads to short sale approval.
Short sale standoffs: how to avoid getting hit
The short sale process can feel a lot like a wild west standoff, but there are ways to come out victorious, so let’s talk about those methods:
What is a short sale standoff?
If you are a short sale listing agent, a short sale processor, or a short sale negotiator then you probably already know about the short sale standoff. That’s when you are processing a short sale with more than one lien holder and neither will agree to the terms offered by the other. Or… better yet, each one will not move any further in the short sale process until they see the short sale approval letter from the other lien holder.
Scenario #1 – You are processing a short sale with two different mortgage-servicing companies. Bank 1 employees tell you that they will proceed with the short sale, and they will offer Bank 2 a certain amount to release their lien. You call Bank 2 and tell them the good news. Unfortunately, the folks at Bank 2 want more money. If Bank 1 and Bank 2 do not agree, then you are in a standoff.
Scenario #2 – You are processing a short sale with two different mortgage-servicing companies. Bank 1 employees tell you that they cannot generate your approval letter until you present them with the approval letter from Bank 2. Bank 2 employees tell you the exact same thing. Clearly, in this situation, you are in a standoff.
How to Avoid the Standoff
If you are in the middle of a standoff, then you are likely very frustrated. You’ve gotten pretty far in the short sale process and you are likely receiving lots of pressure from all of the parties to the transaction. And, the lenders are not helping much by creating the standoff.
Here are some ideas for how to get out of the situation:
- Go back to the first lien holder and ask them if they are willing to give the second lien holder more money.
- Go to the second lien holder and tell them that the first lien holder has insisted on a maximum amount and see if they will budge.
- If no one will budge, find out why. Is this a Fannie Mae or Freddie Mac loan? If so, they have a maximum that they allow the second. And, if you alert the second of that information, they may become more compliant.
- Worst case: someone will have to pay the difference. Depending on the laws in your state, it could be the buyer, the seller, or the agents (yuck). No matter what, make sure that this contribution is disclosed to all parties and appears on the short sale settlement statement at closing.
- In Scenario #2, someone’s got to give in. Try explaining to both sides where you are and see if one will agree to generate their approval letter. If not, follow the tips provided in this Agent Genius article and take your complaint to the streets.
One thing about short sales is that the problems that arise can be difficult to resolve merely because of the number of parties involved—and all from remote locations. Imagine how much easier this would be if all parties sat at the same table and broke bread? If we all sat at the same table, then we wouldn’t need armor in order to avoid the flying bullets from the short sale standoff.
Short sale approval letters don’t arrive in the blink of an eye
Short sale approval letters may look like they’ve been obtained simply by experts, but it takes time and doesn’t just happen with luck.
Short sale approval: getting prepared, making it happen
People always ask me how it is that I obtain short sale approval letters with such ease. The truth is, that while I have more short sale processing and negotiating experience than most agents and brokers, I don’t just blink my eyes like Jeannie and make those short sale approval letters appear. I often sweat it, just like everyone else.
Despite the fact that I do not have magical powers, I do have something else on my side—education. One of the most important things than can lead to short sale success for any and all agents is education.
Experience dictates that agents that learn about the short sale process
have increased short sale closings.
Short sale education opportunities abound
There are many ways to become educated about the short sale process and make getting short sale approval letters look easy to obtain. These include:
- Classes at your local board of Realtors®
- Free short sale webinars and workshops
- The short sale or foreclosure specialist designations
As the distressed property arena grows and changes, it is important to always stay abreast of policy changes that may impact how you do your job and how you process any short sale that lands on your plate.
The most important thing to do is to read, read, read. Follow short sale specialists and those who blog about short sales on AGBeat, Google+, facebook, and twitter. Set up a Google Alert for the term ‘short sale’ and you will receive Google’s top short sale picks daily in your email inbox. Visit mortgagor websites to read up on their specific policies and procedures.
Don’t take on too much
And, when you get a call from a prospective short sale seller, make sure that you don’t bit off more than you can chew. Agents in most of America right now are clamoring for listings since we are in the midst of a listing shortage. But, if you are going to take on a short sale, be sure that it is a deal that you can close. And, if you have your doubts, why not partner up with a local agent that can mentor your and assist you in getting the job done? After all, half a commission check is better than none!
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