We Can Work it Out

Yesterday, I went on an excursion to look at a piece of crap with a repeat client of mine. And yes, it was a piece of crap. I knew it, he knew it, everybody knew it. But my guy buys lots of pieces of crap, presumably so that someday he will have a whole heaping, steaming pile of crap. Okay, he actually fixes them up and rents them.

My car was being used by my significant other to engage in Christmas shopping. (I had to let him use it or I wouldn't get a Christmas present.) So in order for me to show this property, I had to let my client be the chauffeur. This has happened before, with another client, when my foot was broken. I am not ashamed to admit this, although I should be.

Anyway, my "limo" was a construction van full of 5 gallon buckets, tools, drop clothes and many unidentifiable filthy objects, aka ufo's. My client had to open the heavy sliding door for me, then I, quite ungracefully, hoisted my office clothes clad body unceremoniously into the debris strewn interior. We proceeded to our destination, me in the back, way in the back, of this disastrously decorated vehicle as my client peered confidently through the grease smudged windshield.

Upon arrival, I again hoisted myself up and attempted to gingerly step from the van while visions of another broken ankle danced in my head. As we approached the front door, I realized with horror that I had failed to bring the lock box code with me. Of course, I first blamed my client for misplacing it swearing that I had handed him my papers.

So I called the office, hoping that someone could locate the missing papers amongst the other piles of papers on my desk. No luck. So then I attempted to call the listing agent whose cell phone number, luckily, was on the For Sale sign. No luck. Then I called the listing agent's office but was greeted by an answering machine. By now, I was looking quite the fool. Okay, I was looking quite the fool long before that. So I then called the listing agent's team leader because, luckily, he had an easy cell number to remember. I actually reached a human being this time but no, he did not know the lock box combination but promised to make a couple phone calls to find out for me. By the time I got off the phone with him I had a text message from the listing agent with the combo. Yeah! But then I had to call the team leader and tell him that I indeed had the code, was in the house and sorry to have troubled you. Sigh. Red faced and with egg on it too.

Long story short, my guy put an offer in on the piece of crap which was totally overpriced considering the ceiling was caving in, there was little or no foundation on one side of the house, and the bathroom looked like someone had been hosing it down on a regular basis, but not in an effort to sanitize it. Overpriced because the bank who owned the property had the audacity to put a price tag on it at all.

So I am now waiting to hear if the bank will take our offer. I sure hope so. I can't imagine anyone else being brave enough to tackle this "house". I hope for my client's sake and for mine and my broker's sake who, as I informed him this morning, stand to each earn $250.

Not a bad return for all my hard and competent work.

A Taste of Honey

Another year is drawing to a close. Things are winding down here at Bennett Realty. Everyone, clients and agents both, is readying themselves for the BIG DAY. Of course, some people are celebrating 8 big days. However you spend your holidays, it should be our priority and is our obligation to help those who are not as fortunate as ourselves.

Maybe your year wasn't as fulfilling as you had hoped. Maybe the stocking hung on your mantle is not as full as you had hoped. Maybe you had health issues, or maybe this has just been a sucky year. I always hate the old saw, "When things go bad, remember there is someone out there who has it worse." This is supposed to make you feel better? For one thing, when YOU feel bad, you really don't give a rat's patoot how anyone else is feeling. And for another thing, the idea that there are people who are poorer, sicker, more unhappy is nothing to feel thankful for.

The unfortunate thing about donating to food pantries, clothing drives, or the Salvation Army is the fact that we need these institutions at all. So many people don't make a living wage or work two jobs or have an absent spouse when there are children to feed. These are not the exceptions; the numbers are rising.

For example, in the Wilmington News Journal, a local columnist Bill Horne, a professor of economics at Southern State Community College recently submitted an editorial entitled "Everything going up but wages". In this article he sites the November issue of Farm World. In essence, for the last 22 years, the cost of a Thanksgiving turkey dinner has either increased at the rate of inflation or actually dropped in cost from one year to the next. This year, however, the cost of that same turkey dinner went up 11%. Also, our energy costs have climbed from 26% of our income to 47% of a workers income. Mr. Horne also speaks of the American worker's share of total income (as opposed to management, independently wealthy, business owners, etc, I assume). The first year that a 'total share of income' stat was taken was in 1929 as we were going into the Great Depression. In 2006, the American worker received the smallest share of the nation's wealth since the Depression. Depressing, huh.

So, I hope that you can see what is wrong with the big picture. We make less, our expenses are more. In this nation of wealth, the majority of Americans are missing their portion of the turkey dinner. But at the same time, they are helping those who are missing even more of the turkey dinner. Should we help others? Absolutely! Should we have to help others? Absolutely not!

Merry Christmas, Happy Hanuka, Good Festivus, Happy New Year to all!

Run For Your Life

Well, it sure has been nice working here at Bennett Realty. I do wonder, as I have mentioned previously, why I am able to keep this job that I love. My latest endeavor is to humiliate most of the realtors in my office. I purchased a new super duper camera recently. I took it to work to play with and started taking pictures of everyone. Well, with a 10x optical zoom and 8 megapixels, you can get up close and personal with your subject without physically getting in their face. Of course, people were getting a wee bit irritated because I was clicking away at them, although without a flash. It is amazing how you can actually capture the essence of someone after they start getting a bit p.o'd.

After I had harrassed my fellow realtors sufficiently, I down loaded my photos to the computer and tweaked and cropped them to my satisfaction. As a sidebar, I highly recommend the Fuji FinePix camera. Please, please, please don't let anyone talk you into a Kodak Easyshare. There is nothing "easy" about "sharing" photos when it comes to that camera or the software that comes with it. (I have lost count how many times I've been asked to help people "get those pictures off" their camera.) For one thing, you have to download your photos using the software that comes with the camera. You don't even need special software to download photos from any camera. Just plug in the USB cable and a window pops up and either a "wizard" opens or a dialog box that will walk you through it. However, the Fuji FinePix has very nice software that doesn't supercede the computer's own system. It is user friendly and has great editing capabilities. It's not Photoshop but it is the closest thing to having a dark room in your basement that I have found. Especially when used in conjuction with my new SLR style S800. With the manual as well as automatic settings, I can do anything for real estate or for personal use.

Which brings me back to harassing my fellow beings. After I assembled all of my loverly black and white photos, I ordered a calendar online using said photos and put silly captions underneath. I will then give it as a present to the broker and his wife, my supervisor.

So, it's been nice talking to you............

The End

Finally, my last installment on the road to Renovation Lending.

Here are the various programs offered for Renovation Lending:

FHA 203(k)
FHA 203(k) Streamline
FNMA (Fannie Mae) Homestyle
FNMA Community Homestyle
Construction to Perm/One time Close Renovation Loan

In an effort to cut short the suffering my readers have endured over the 203(k), I will give only sight overviews of a couple of the 203(k) mortgage programs.

The first one, a first time homebuyer may have accidently come across it and not fully understood the purpose of it. (Unfortunately, there are lenders out there who do not speak in "people".) The HUD FHA 203(k) (almost sounds like a 1940's phone number) covers the mortgage plus there has to be a minimum of $5,000 in repairs. These repairs are required to eliminate health and safety issues such as roofing, energy conservation, site improvement and handicap accessibility. These are not decorating dollars.

The 203(k) Streamline allows up to $35,000 for repairs and upgrades. It is "Streamline" because it is "streamlined". No consultant needed, no structural repairs, no financing of mortgage payments which all results in lower fees. This mortgage would perhaps serve the non novice when it comes to home repairs and remodeling.

In all of these mortgages, self-help, or sweat-equity, may be discouraged but not entirely ruled out. If you can do the work and can demonstrate in some way that you indeed can do the work, then you might be able to stretch your dollars a bit further.

Well, I think I have totally exhausted this topic. Well, I guess not totally. There is obviously a lot more to know about this topic which is why I say, don't take my word for it. Do some legwork, call a bunch of lenders and get as much info as possible. If someone tells you there is no such thing as getting money based on what the home will be worth in the future, just smile knowingly and head for the door.

Countrywide Home Loans offers this type of mortgage, but I am sure they are not the only ones. Please do not let Countrywide's checkered past sway you too much. This is not preditory lending. But if a lender tries to pressure you into borrowing more money than you know you can afford, just smile knowingly and head for the door.

Now, go out there and RENOVATE!

Th--th--- th---That's all folks!

Baby You're a Rich Man

Holidays are looming large and even though not much is going on at the office, I have plenty going on at home. My mind is not on real estate but it really should be. Just because things are slow doesn't mean they have to come to a full stop. But that is the way I find that the psyche works. Have you ever noticed that you get better service at a restaurant when it is busy than when it is slow? That is because the less someone has to do the more they do nothing. I think it is a little thing called inertia. So you walk into an empty restaurant and stand there staring at the walls waiting for someone to notice you so you can be seated in the vast emptiness. The same goes in real estate. Even if someone walked in the door wanting to see a house, I would rise grumbling from my seat and half-heartedly talk to them, ultimately probably talking them out of the whole thing. My mind would wander, thinking, "This person can't really be serious about buying a house this time of year. It's cold and snowy and besides I don't feel like slogging away in the slush in the dark evening just to show this looky-loo a cold dark dump." So I've just talked myself out of a sale. Quite counterproductive, you see.

So I sit here, wondering why I'm not making any money. Go figure.

I did have a closing last week, surprise, surprise. Sometimes we do well in the biz despite our best efforts to do otherwise. In fact, this is the first year I will be getting a sales award! Our Board of Realtors Christmas party is this weekend and I will proudly and graciously accept my award and give my thanks to the little people. Okay, maybe not that last part. But I am thankful that, despite the downturn in the market, I have done well this year. It pays just to show up.

I'm a Loser

We at Bennett Realty have challenged the other real estate offices in Wilmington to a Biggest Loser contest. Each of 5 offices have 5 participants who have to weigh in weekly. Then our progress is measured by percentage lost, not pounds lost. We started this 2 weeks ago and it will extend to February 1st. So far each office has lost about 2.5 lbs. Our office has put all of our hopes in on our two "big guys". Let's face it, girls. Guys have an easier time of losing weight and if you are already big then dropping a few pounds is no big deal. It's entertaining, though, to see these guys with their afternoon snack of an apple and string cheese. I think we are all starting to feel a bit deprived at this time. We are starting to get a bit snappy, either eyeballing each other's food in envy or eyeballing each other's food in reprimand.

203k lending. Now that we know basically what a 203K is and how the money can be used, now we'll investigate the type of property that can benefit from the benefits of the beneficial loan.

1) 2-4 unit properties that are owner occupied
2)FHA approved condo's
3)Properties that are at least 1 year old
4)Mixed use properties
5)Of course, single family homes
6)Homes that have been DEMOLISHED (?) but have a usable foundation to be reused.
7)Single family homes being converted to 2,3 or 4 units or visa versa

Homes not eligible for 203k lending:
1)Log homes, don't know why
2)Cooperatives (you don't actually own the four walls)
3)Homes that have never been completed (started, but left to molder until the contractor decides to show up again

"Mixed use" properties present an interesting opportunity. A mixed use property is one that houses a business as well as a residence. This might be a downtown building that has a store front but the upstairs has not been used for years and fallen into disrepair. The 203k funds cannot be used on the business portioin but it can be used on the residential portion as long as it will be occupied by the owner. Not many people actually live about their store these days, but in metro areas where people are starting to appreciate their inner cities again and are starting to move back, this could work out well for a home based business. Home based businesses are also making a comeback as is the idea of taking old run down and abandoned downtown buildings and making them into condos or apartments. These to trends mesh nicely and will be a major factor in the revitalization of our inner cities. (I just love these win-win situations.)

Well, gotta run. I have a closing tomorrow (yeah!) and I must mentally prepare myself for it to be my last of the year. Sad, and hopefully not true.

More on 203Ks to come. Lots o' info as promised!

She Came in Through the Bathroom Window

BEFORE

AFTER

All done with my money. It wasn't a fortune, but with 203K renovation lending, I wouldn't have had to live with a fugly bathroom for almost 3 years!

You Never Give Me Your Money

Food for thought (as opposed to the belly) - 83 % of homes in Cincinnati were built prior to 1970. That's a bit of an eye opener.

This figure won't hold up for all communities, obviously, but it is surprising and when you think about it, it presents a tremendous opportunity.

Hence, the 203K. Renovation lending. This concept was an eye opener for me so I'm fairly certain it is an eye opener for other Realtors(r) as well as regular people:>)

Here is a list of typical projects that Renovation lending could possibly cover. I say possibly because, as mentioned before, everything is subject to a feasibility study.
*Minor or major kitchen and bath renovations
*Cosmetic changes
*Exterior decking or fencing
*Garage addition
*Finish a lower level
*Doors, windows and siding
*Plumbing update
*Home office
*TWO STORY ADDITION!!
*MOVE A HOUSE!!

Holy moly, I wish I had known this when I bought my old, old, old 1865 house. (It was built the year Lincoln was assassinated. Think of that!)

The caveat here is that the home must appraise. For example: You find a home that you love, in the neighborhood that you love, and it is close to your work. The asking price is $150,000 but the furnace is older than the house, the kitchen hasn't been touched since June Cleaver wore pearls to clean house, and you could throw a cat through the bathroom wall.
First step: Get preapproved for a loan. Get an accepted contract. Make sure it contains the statement, LOAN IS SUBJECT TO FHA 203K APPROVAL AND BORROWERS ACCEPTANCE OF ANY ADDITIONAL REPAIRS AS MAY BE REQUIRED BY HUD, APPRAISER OF HUD CONSULTANT. A mouthful, yes, but it provides the borrower an out if the repairs are not feasible. Then take it to a lender that handles 203K's. Tell them what you would like repaired in the home. Then the borrower orders a feasibily study. This is where things get fun.

Okay, breathe, and decide if you are up for renovation....

Junk

203 (k) - No, it isn't the latest employee retirement fund, although it may be more profitable, more secure, more headache and more personally rewarding.

203 (k), also known as Renovation Lending is the answer to my prayers. Where have I been lo these many years that I have never heard of this? Is it new? Is it a secret? Have I been under a rock? I don't know, I don't think so, and yes.

Renovation Lending is the practice of basing a mortgage on the future value of the property as apposed to the current value of the property. Because the lender is taking an added risk as well as a more active part in the value of the property, not all lenders offer this program. (In fact, not long ago I was looking for just such a thing and was told there was no such thing. Okay. So it is a secret. Sssshhhhh!)

In short, the purpose of a 203 (k) mortgage is to encourage people to buy homes in need of repair and then to actually repair them. Yes there is more paperwork involved in the loan but the lender plays a very active part in the process. From feasibility studies, to consultants, to appraisals. Inspections have to be performed periodically in order for the lender to see that the work is actually being done and by a qualified technician, then money is released to pay for the work.

This is a win-win proposition for all. The homeowner gets the home they want at a price they can afford, the community gets its older housing stock repaired, and the Realtor (r) gets a sale they might not have ordinarily got. Someone looking for a 4 bedroom home on 2 acres with only 150K to spend? Find them an older home which is usually also a larger home, get them on the road to fixing it up and they have a great home and you have a sale.

More details to follow. This is a topic near and dear to my heart so I will be giving it lots of blog space.

Long, Long, Long Time

I have been busy, busy, busy. Some good business, some bad business, some just plain ol' busy-ness.

Fell into one good deal, fell out of one bad deal, took a great continuing education class about financing (more on that later) and been wrapped up in work for my supervisor.

Being busy in the real estate business means, for the most part, you are making money. So, for once in my life I am not complaining.

But the downside is that I haven't blogged much lately, which I enjoy. I enjoy informing my reading public about the real estate industry and I just plain like to write.

It's been a long time but I shall return!

Hey Jude

Following is an article I received in an email from a local mortgage broker. Take it as you will.

When It Takes a MiracleTo Sell Your House

Owners, Realtors Bury StatuesOf St. Joseph to Attract Buyers;Don't Forget to Dig Him Up
By SARA SCHAEFER MUOZOctober 30, 2007; Page D1

Cari Luna is Jewish by heritage and Buddhist by religion. She meditates regularly. Yet when she and her husband put their Brooklyn, N.Y., house on the market this year and offers kept falling through, Ms. Luna turned to an unlikely source for help: St. Joseph.

Some choose to bury St. Joseph upside down.

The Catholic saint has long been believed to help with home-related matters. And according to lore now spreading on the Internet and among desperate home-sellers, burying St. Joseph in the yard of a home for sale promises a prompt bid. After Ms. Luna and her husband held five open houses, even baking cookies for one of them, she ordered a St. Joseph "real estate kit" online and buried the three-inch white statue in her yard.

"I wasn't sure if it would be disrespectful for me, a Jewish Buddhist, to co-opt this saint for my real-estate purposes," says Ms. Luna, a writer. She figured, "Well, could it hurt?"

With the worst housing market in recent years, St. Joseph is enjoying a flurry of attention. Some vendors of religious supplies say St. Joseph statues are flying off the shelves as an increasing number of skeptics and non-Catholics look for some saintly intervention to help them sell their houses.

Some Realtors, too, swear by the practice. Ardell DellaLoggia, a Seattle-area Realtor, buried a statue beneath the "For Sale" sign on a property that she thought was overpriced. She didn't tell the owner until after it had sold. "He was an atheist," she explains. "But he thanked me."
Existing-home sales fell 8% in September to a seasonally adjusted annual rate of 5.04 million units, the lowest level in nearly 10 years, according to the National Association of Realtors.

Some Catholic clergy are uncomfortable with the St. Joseph's trend. Read about this and track other news in the housing market at Developments, WSJ.com's new real-estate tracker.

Statues of St. Joseph sold online can be as tall as 12 inches. One, made of colored resin, portrays St. Joseph cradling the baby Jesus. Yet most home sellers favor the simpler three- or four- inch replicas -- most of which are made in China and often depict St. Joseph as a carpenter.

Most statues come in a "Home Sale Kit" that is priced at around $5 and includes burial instructions and a prayer. One site, Good Fortune Online, recently added another kit with a statue of St. Jude -- known as the patron saint of hopeless causes -- "to help those with a difficult property to sell," the site says. Another site, Stjosephstatue.com, takes orders for its "Underground Real Estate Agent Kits" at 1-888-BURY-JOE.

Demand for the statues has been growing. Ron Weissman, who sells the statues at Good Fortune Online, says about six months ago he switched to online transactions because the increase in calls -- from about two a week to 25 calls a day -- was too much to handle. Richard Weigang, owner of http://www.catholicstore.com/, says he sells about 400 statues a month, double the amount he sold a year ago.

In Catholicism, St. Joseph, a carpenter, is honored as the husband of Mary and foster father of Jesus. Representing a humble family man, he is the patron saint of home, family and house-hunting, according to the Rev. James Martin, a Jesuit priest and author of "My Life With the Saints." Popular belief holds that people who wish to enlist St. Joseph's help in selling a house should bury his replica upside-down in the yard. (Apartment dwellers are advised to put him in a potted plant.)

Methods of burying the statue vary. Instructions in one package give buyers several options, including burying it upside-down next to the "For Sale" sign, burying it three feet from the rear of the house and burying it next to the front door facing away from the home. Phil Cates, owner of stjosephstatue.com, says: "I've seen it buried in all types of places with all types of ceremonies." He says the detailed burial instructions are largely intended to prevent people from forgetting where they put their St. Joseph. (His kits advise burying it facing it away from the house, to symbolize leaving.)

Theologians say there's no official doctrine that calls for the statue's interment. The practice may have stemmed from medieval rites of land possession, in which conquerors claimed land by planting a cross or banner, says Jaime Lara, associate professor of Christian Art and Architecture at Yale Divinity School. Mr. Lara also suggests that the tradition may have gotten mixed up at some point with folklore surrounding St. Anthony. St. Anthony, known as a matchmaker, would often be held ransom, upside-down, until he found a husband for someone's daughter, he says.

Some clergy aren't sure how St. Joseph would feel about his replica ending up on its head in the dirt, and suggest displaying it somewhere in the house instead.

"I think it's much more respectful than burying the poor guy," says Msgr. Andrew Connell, the archdiocesan director of the Pontifical Society for the Propagation of the Faith in Boston. Some retailers, such as Mr. Weigang, owner of www.catholicstore.com, also encourage buyers to put the statues in the house.

"We don't advocate burying," he says. "Some of those statues are quite beautiful."
Catholic leaders also say that faith and devotion are necessary, in addition to burying a statue, otherwise the practice amounts to little more than superstition or magic. But they are also enjoying the saint's newfound popularity. "If they have a good result and they think it was St. Joseph, it might inspire them to practice more," says Msgr. Connell.

The St. Joseph "Underground Real Estate Agent Kit" from http://www.stjosephstatue.com/

Once someone's home sells, the custom holds, the statue should be dug up and put in a place of honor in the new home. That's what Ms. Luna did after she and her husband sold their house shortly after burying St. Joseph. She put the statue in her office in their new home in Portland, Ore.

But not everyone is aware of the follow-up step. Trudy Lopez and her husband buried a statue of St. Joseph when they were trying to sell their condo, even though Ms. Lopez is Jewish and her husband is a nonpracticing Catholic. They sneaked out late at night, worried they might be breaking a condo association rule.

"And I'm thinking, 'If my family knew what I am doing, they'd die,' " she says.
Soon they got an offer, but didn't realize they were supposed to bring the statue with them to their new home.

"I'm afraid a lot of the statues won't be unearthed and someone will go over St. Joseph's feet with a lawnmower," says Father Martin.
Write to Sara Schaefer Muoz at http://mail.biz.rr.com/agent/MobNewMsg?to=sara.schaefer@wsj.com
Enjoy!

Note: I heard of this practice years ago and since I have a listing that has seen no activity, I believe I shall present my sellers with a statue of St. Joseph. Who knows? Could it hurt? Well, I guess if you ran over him with the lawnmower.....

The Fool on the Hill

http://narblog1.realtors.org/mvtype/theweeklybookscan/2007/10/book_review_finding_foreclosur.html
Click above to find out about buying foreclosed homes.

I believe in equal time. I have posted several links on how to avoid foreclosure. Now I have posted a link on how to buy properties that are or soon will be foreclosed upon. This information is not only for realtors but for the homeowners who are in this situation. The owner/seller needs to know what the potential buyer is doing to purchase their home. This article also helps the owner/seller know what their options are.

Whoever is trying to buy a foreclosed property, be they a realtor or a "regular" person, the owner needs to know that everybody out there isn't a shark that is circling the scent of fresh blood. Which is not to say that there aren't sharks out there. But whatever the motive, if the owner has a chance to sell before the sheriff bangs the gavel, by all means sell. Of course, if it actually gets to that point, then the owner's credit is already shredded and all the money that they have paid into that home is money thrown away.

So sell, sell, sell! Owners should do everything they can to keep the ball in their court.

Now to the buyers. Buy, buy, buy! Now is the time to invest in your community and to make a bit of money to boot. Buying a home and "flipping" it, which means to sell the home again in a short time, is the IN thing to do right now. But please, please, please, if you are going to flip, do some improvements, updates and add curb appeal to the home before you put it back on the market. Don't just shampoo the carpets and put a big price tag on your "efforts". This only encourages urban blight and does nothing to improve the community.

But although any neighborhood can have foreclosed homes, the unfortunate reality is that it happens more to the middle to lower income families who have stretched every dollar in order to realize the American Dream. And lower income familys tend to buy older homes in older neighborhoods which might not be in the best of shape.

Also, if you plan on flipping, do your homework. Make sure that once you put your money into updating it that the neighborhood will support the price you plan to ask. If you overimprove, that home that cost you a total of $150K will not sell for that if it sits in a neighborhood where the highest priced home is $89K.

With that said, let's all try to work and play nice. One man's ceiling is another man's floor. The concentration of wealth is shifting. Make sure that you don't end up on the bottom of the pile.

Tell Me What You See

Fun and games at Bennett Realty.

Never a dull moment. While in our costumes, the FedEx man came in. We asked him why he wasn't dressed up. He said that they weren't allowed to. My reply was, "Neither are we!" But that didn't stop my co-worker and me from doing it, obviously! I had to go out to put open house signs up in front of houses. Wonder what the home owners thought....

By the way, I am dressed as Captain Jack Sparrow's wife. (Oh how I wish). I have a string of black pearls around my neck. And you were wondering why he named his ship "The Black Pearl"!

I Want to Hold Your Hand

It is a chilly October Sunday morning. I hesitate to turn on the antique beast that is in my basement that is only good at taking the chill off the house. So instead I have opted for a nice mug of raspberry tea. On the stereo is "Breakfast with The Beatles", a weekly slice of heaven for my ears. I have listened to the same Beatles songs for decades now and never tire of hearing them.

My regular readers may have noticed that every posting is the title of a Beatles song. Some familiar to most, some a bit more obscure. This aging and all too quickly passing musical phenomenon has been the backdrop to my entire life. Even my morning tea mug is emblazoned with their name and pictures.

Another ritual of my Sunday mornings is reading the latest issue of Realtor Magazine. Not the most invigorating reading some may think, but I find it most edifying. It helps to keep me on trend and focused in my chosen career. Not only does it give me fresh ideas and perspectives, but it also, sometimes almost eerily, gives credence to my already held beliefs and practices.

For example, in an article entitled "Creating Raving Fans", the suggestion for creating better customer service practices is the idea of giving customers more understanding of the home buying process. Let people know where they are in the process, from first making the offer, to negotiations to title searches to problems that may have arisen. This has always been my way of providing customer service. There is no advantage to keeping your clients in the dark. It only creates a climate of confusion and distrust. Although, in theory, it may seem comforting to let someone "take care of you", in practice I feel that knowledge is power. When dealing with what for most people is the biggest investment in their lives, whether the first or the last, knowing that they have a say in how that transpires gives them the satisfaction they deserve.

Also mentioned in the article is the element of surprise. At first, this sounded like a recipe for disaster. But upon further investigation the idea was actually focused on making a person's experience unique. The article goes on to relate a story about a hotel chain that offers each customer the option of having a goldfish in their room. Sound fishy? Not at all! It is a simple thing that makes the customer's stay a little more personal and makes that hotel chain stand out in their minds.

My own quest for making myself stand out and thus my services, has culminated in printing out my own personal business cards, each with a black and white photo of one of The Beatles. The pictures cover the entirety of the card, with my own photo playing a very minor part. These cards have fostered many conversations and some people request all four! Imagine someone actually asking for not one but four of your business cards!

And so, we get back to The Beatles.

Find your own backdrop to your life. Embrace it. It will give meaning and focus.

Imagine.

Every Little Thing

Yes, Virginia, there is a Santa Claus.

And he came early this year for me. I just found out that one of my co-worker agents bought the house across the street from where I live. The link at the bottom of this posting will take you to the picture of this house and the accomanying post.

That house across the street has been an eyesore and a symbol of what inner city Wilmington is coming to. Old houses, usually owned by absentee landlords (Wilmington is 50% rentals), sit empty collecting cockroaches and squatters. They continue to deteriorate and sometimes sit there for years.

Then someone comes along (probably not from around here) and sees the potential in this diamond in the rough and makes the decision (from the heart and not the head) to renovate the home and bring it back to its glorious roots.

Another scenario is that someone comes along, buys it for a song because it is a piece of crap but essentially solid, puts a bit of money and sweat equity in it and becomes the next landlord to own it.

Yet another scenario is that someone buys it, moves into it as is and it remains an eyesore only this time with the added bonus of brightly colored toys strewn about the yard and punctuated by weekly shouting matches between significant others in the front yard. This is the worst case scenario. There is no landlord to complain to and the eyesore has just become an earsore also.

The last scenario is the one that has become my early Christmas present. Granted, it is not the optimum solution because the time for restoration has long since gone. But in this case it is the best that can be hoped for. The house will be torn down and a new, nice little ranch will replace it. Yes it will be rented but so are several others on the street that are owned by the same person.

So yes, Virginia, there are still some signs of life in this small town. It seems to have lost its way when it comes to a sense of pride in its appearance, but where there is life there is hope.

Merry Christmas and Happy Halloween.

http://housecents.blogspot.com/2007/09/being-for-benefit-of-mr-kite.html

Besame Mucho

Once more, I've let my emotions get the better of me. It has been pointed out to me that my last post had a cynical air about it. Sorry about that. If you have been with me from the beginning of my blogging career, you are aware of the ups and downs. And, being the passionate person that I am, my feelings seldom stay on my sleeve; they leap forth into the ether that is the internet.

The deal did fall through. After having the whole family look at the home, they withdrew their offer. Ce la vie. Que sera, sera. Whatever will be, will be. The future's not our's to see, que sera, sera. (It's easier to be philosophical about these things with the advent of time. However, at the time, I think I said a few dirty words in my head while understanding noises came out of my mouth.)

But we must move on.

I had a closing this week. One of my easier ones and with a couple of the nicest people. I hope to be able to keep in touch, but I always say that. My first encounter with them was the result of a "cold call" coming into the office to see a couple of condos. I set up the appointment and, since my foot was just recently out of a cast and I couldn't drive, the couple had to pick me up, tote me to the condos then deposit me back.

Sometimes its just the smallest things that can make a difference. When I got into the car with these perfect strangers I said, "Who is your favorite Beatle?" The woman looked at me with a puzzled expression and said, "I don't think I've ever had anyone ask me that before, but I guess it must be Paul. He's the cute one." At which time I reached into my purse and pulled a business card out with Paul's picture on it and handed it to the woman. I truly think that by doing this I stood out amongst the other realtors that they had looked at houses with. They called me back when it was time to look at something else and the rest is history.

Of course, sometimes my schtick backfires.

I met a young couple at a farmhouse in the country for a showing just recently. They got out of the van with a few kids in tow. I walked up to them, introduced myself and asked, "Who is your favorite Beatle?" Again the puzzled expression. After an uncomfortable silence had passed between us, I said, "You know. The Beatles? The singing group." "Ohhhh,"was the reply. "I thought you meant there was a bug on me."

Ce la vie.

Your Mother Should Know

I have experienced a few deal breakers in my career. Just when you think everbody is happy, boom, the hammer comes down. Sometimes you can get people calmed down, sometimes you can't. It must resemble getting cold feet right before the big wedding day. What if, what if, what if.

The biggest deal breaker, with contract negotiations as well as marriages, is family. Once the family gets involved its almost like the blind men and the elephant. Everybody has a different idea of what "it" is and, even though all may be right in their own way, all involved are also wrong. And the ones who should actually be making the decision feel obligated to listen to the wisdom of their elders, usually with disasterous consequences. Okay, maybe not so much with marriage, but sometimes we just have to make our own decisions.

It is natural for someone when making a life changing decision to want a second opinion. But speaking as a realtor, do not, and I repeat do not get the family involved. Yes, they do have your best interests at heart but no matter how much they love you, they are still your worst critic. The exception would be your Uncle George who is a retired contractor and you need to know if the uneven floors will be a problem in the future.

So be specific. Ask specific questions of specific people. Don't just say to Aunt Sally, "So, what do you think?" because I guarantee she will tell you, and I guarantee you will not like it.

Need another opinion concerning a home that you love and just can't make up your mind? Ask a friend. They will be straight with you but also affirming. They will hold your hand and be with you no matter what you decide.

If you love a house and it meets most of your requirements (a house cannot be everything to everybody) then just hold your nose and jump in.

Your family will always throw you a life preserver when you are drowning. But as you are looking over the edge into the pool, your family will be stuffing your bathing suit with bricks!

Wait

The day has started out right. Even though it is a little dreary outside and rain is forecasted, it is bright and sunny in my own little mind.

I got an email from my people who put in an offer on a nice home then split for their vacation. I have been reticent to call or email them just for the heck of it so I have been waiting for an opening. Even knowing that they want to bring their family through the home (always a scary proposition) when they return, you still never know if they will forget all about the house; out of sight out of mind.

But I got an email from them this morning. Yeah! They still want to see the house again this weekend. This gave me the opportunity I was looking for. I emailed them back that the showing is set up and that I should have an estimate soon for the siding on the home. This situation with the siding has me antsy because having a maintenance free home is high on their priority list. If the estimate that I have procurred for my people comes in too high, we might be in trouble.

This experience has been a "hurry up and wait" situation. The potential buyers wanted to put in a bid quickly to, in essence, save their place in line. Now the sellers are in limbo waiting to see how everything plays out. I think my people will come around to trusting me when I am able to give them a figure on the siding.

So many factors, so much time, so little known. I think I've talked myself into being in a bad mood after all.

Rats.

You Know My Name (Look up the Number)

Okay, you asked for it. Well, not really, but here it is anyway. My first "real" ukulele.

My actual first uke was purchased from ebay for a mere pitance. It lasted about as long as you would expect. Not very.

I came by this one by a happy accident. It is a 1950's Harmony in quite nice condition. I had been sick for about 3 years and was financially embarrassed when my ebay uke fell apart. I had no money to replace it. I was a frequent visitor of http://fleamarketmusic.com/ and had posted a few times. I asked if anyone knew of a way to fix my uke because I was unable to buy a new one. About a week later, a big box came in the mail. I had no idea what it could be. After pulling out a bunch of newspaper, I extracted the above vintage ukulele. I burst into tears. (For those musicians out there, you know how it feels to love an instrument and the joy it brings you to play.) Down in the bottom of the box was a note from the gift giver-a stranger from the Flea Market Music bulletin board. He swore me to secrecy and said that he did it just because he could. I have never forgotten that kindness and will always cherish my 1950's Harmony.

The old Harmony is retired now. But she has about 6 other ukuleles to keep her company.

I became a realtor(r) shortly after I was back up and healthy again. Hence the moniker "Ukulele Realtor". I always have a ukulele close by, even in my office just in case someone asks me to play. (No one ever has:>)

Whenever I do an open house, I take along my "go to" uke-a pink Flea. She's light weight and fun to play and keeps me company when no one shows up to visit my open house. Maybe I am scaring the customers away......

Always remember the kindness of strangers and pass it forward whenever possible.

Photograph

Sometimes, in my travels throughout the county, doing my own real estate stuff or that of my supervisor, I have the priviledge of coming upon the unexpected picturesque scene. And, being a bit of an amateur photographer as well as a ukulele player (I am so gifted), I pause to take a nap, I mean a SNAP!

This stark tree was at the corner of a strange property that consisted of a single wide mobile home that had been added on to, various tumbledown outbuildings and was smack dab in the middle of nowhere except for a highend subdivision right beside it. Huh? I thought someone would gobble it up for building sites but no. It was purchased as a home.

I haven't been by there for 2 years. The market was hot then and has long since cooled off. If that property had been purchased by a developer, boy, would he have been in for a rude awakening. Sometimes things do happen for a reason.

There Is a Place

A little known factoid about presenting an offer on a property on the behalf of your client is that it can suck.

Case in point. While on phone time last week I got a call from a couple wanting to see one of Bennett Realty's listings. I showed them the home on Saturday and they put in an offer on it on Tuesday, the day before they were to leave on vacation. We opted to get the offer put in as soon as possible just in case someone else should come along and want to make an offer. However, I was not overly concerned because the home had been on the market since May and there had not been much interest.

Guess what. Now someone else wants to show it.

Call me superstitious but I have always held to the notion that as soon as you want something, someone else is going to want the same thing.

The price of the property is not the big bug-a-boo. The problem lies in the contingencies and the fact that now my people are out of town. They want estimates for new siding so they can decide if the home can be made maintenance free at a price they are willing to budget for. I am responsible for setting up the appointments for the contractors to give estimates, no problem. But as we all know, these things do not happen overnight.

If this new showing should result in another offer, then we would be in a multiple offer situation. At that point, both parties would have the chance to give their best offer but cannot know the offer of the other party. I called and explained this to my clients and, as previously alluded to, they really do not know me and really have no reason to believe me.

And that is just the feeling I got when I got the response, "But how do we know there really is another offer." What do I say? "Trust me"? Yeah, right.

Stay tuned.

I Me Mine

I am always looking for ways to "get noticed" on the web. In order to build a client base, one has to be able to be found.

I am not a "big name" in Wilmington. My ancestory has not been established in Clinton County for generations, which is a big plus in a little place. So it is a hard scrabble existence to get your name out there so when people are contemplating the big jump to buying or selling a home they think of me.

In this age of growing technology, the common wisdom in the real estate publications is to use the web use the web use the web. It is common knowledge that most people start with the internet before doing anything, big or little. Researching their next car purchase, researching their next toilet paper purchase, or actually making said purchase.

Real estate especially. Who hasn't heard of Realtor. com. Most people, wherever they may currently reside, start with Realtor.com. Unfortunate really, since it is not the most user friendly website. In a startling turn of events a few years ago, the Cincinnati MLS chose to remove their public search site and only retain the private website for the use by realtors. This put a great burden on the small brokerages because who ever heard of Bennett Realty unless you live in the area? So most people don't start by looking for individual websites. They go to Realtor.com.

The flip side of that coin is that the Division of Real Estate in Ohio made it legal for any brokerage to post any other brokerages listings on their website. That is why, when you click on the Cincinnati or Dayton MLS link at the bottom of this page you will be directed to a search engine that takes you to all listings, be they Bennett Realty, ReMax or Sibcy Cline. Hopefully, at that point, you will call Bennett Realty when you find a home that appeals to you.

Or maybe not.

Competition is fierce these days. So in an effort to get myself noticed, I have used the moniker of "Ukulele Realtor" to help set myself off from the rest of the pack. "Ukulele Realtor" because I play the ukulele. (And no, ukuleles are not the first cousins of the kazoo. And no, I do not play Hawaiian music. I play rock, country, folk, old standards. And yes, I do play "Tiptoe Through the Tulips.)

So, Google me using Ukulele Realtor and voila! There I am.

Cool!

Rain

The squeaky wheel gets the grease. It never rains but it pours.

If those old cliches are true then I should be running pretty smooth by now and getting drenched in the process. Being the complaining realtor that I am, it's too hot it's too cold it's too wet it's too dry I haven't shown any houses I've shown too many houses, I will now complain that I have to show houses on Saturday. Not just to one couple but to two.

Wah.

I'm showing 5 homes to an aforementioned couple from out of town that I have shown homes to before. The other couple is a call-in. They were unable to contact the listing realtor after they drove by the home (the agent never returned their call-cardinal sin number one) so they called the office. Since I was on phone duty, I got the call, the showing and maybe the sale.

It tears my Saturday all to hell, but that is what happens if you're lucky. The agent with too much time on their hands isn't showing homes or listing properties.

I have many hobbies, which is why I complain about working on weekends. And since I also work full time in the office, one can become very protective of one's "time off." But as the weather continues to change and the temperatures continue to drop and the rain turnes to snow I will not only have more time on my hands but I will also have more things to complain about.

Yeah!

Big friggin' praying mantis from my backyard

Just a pretty posey from my backyard

Helter Skelter

Okay. By now you have realized that the daily life of a realtor is pretty much a roller coaster ride. Up, down, round and round.

I was kevetching recently about how I didn't want to show homes while my sister was in town. Well, that Wednesday evening showing turned into an accepted contract. A had taken a couple days off from my regular office routine to give me some extra time with my sister. I should take time off more often.

I was on my cell phone almost constantly trying to get everything negotiated. It made me feel like a real realtor.

Of course, at the same time I was being run ragged by the painter painting my porch. Buy paint, tell painter where I want paint, tell painter again where I want paint. Don't step on paint.

There I go kevetching again. In the end I got a gorgeous porch that really sets off the house. (I will post a picture when I get time to take one!) Even though my home is considered Greek Revival built in 1865, the porch was probably added later. Plus, the people who owned the house before had replaced the columns with turned ones instead of classical ones. Soooo since most old houses go through several incarnations throughout their lives I decided to play up the columns ala Victorian. Subtle but effective.

Where was I. Oh yeah, I just sold a house! I say "sell" but I don't consider myself a "salesperson". Just like I don't consider myself a secretary to the bosses wife. I like the phrase, "administrative assistant." Think names don't matter? How do YOU feel when someone calls you a name, ethnic slur, etc?

My weekend also included a high school reunion. I now remember why I hadn't been to one in 20 years. I had some moments but my sister had a great time which is all that counts. All of a sudden my chosen profession seemed boring. The usual reaction to my response to "So what do you do?" was a glassy stare.

Sigh.

Got To Get You Into My Life

Things are indeed looking up. I got a call back from the people that I showed a couple condos to two weeks ago. They indicated to me at our first meeting that they had looked at other properties already so I took that to mean that they generally just call the realtor whose sign is in the front yard. They asked me to email them some other listings, which I did right away, but I hadn't heard anything from them. Since I could tell that they were people who did things their own way (which is fine) I was pleasantly surprised when they called me at the beginning of the week requesting a showing of homes that Bennett Realty did not have listed. It was at this point that I knew for sure that we had connected as I had suspected.

That is a good feeling, to know that you have made a positive impression on someone. Maybe I'm still just enough of a newbie to fully appreciate the important life decision of someone purchasing a new home and am proud to be a part of that.

But (there's always a big but) my showing is scheduled for the evening that my sister (who is older than I) is arriving. We have not seen each other for almost 3 years. That is the way it usually goes. You sit around and around and around then when things start happening, everything starts happening.

And happening and happening. My porch painter has finally shown up so there is a royal mess in the front of my house. I have also been running around getting paint for said painter.

And happening. My bathroom remodeler (and a client) had finally been able to free up some time to finish my bathroom. So I am supervising that.

And not happening, such as cleaning the house and going to the grocery, etc, etc.

Didn't I just say in a previous posting that if you do something different than what you always do then things will start happening?

Ditto.

Misery

The world is treating me bad.....misery! A little known Beatle's song but very appt.

Somethings don't go your way no matter how hard you try. Sometimes it is dealing with potential clients that aren't being honest with themselves therefore not being honest with you. Sometimes it is dealing with another realtor(r) who has an ax to grind with you as well as your buyer and therefore is bound damned and determined to throw a monkey wrench into things even if it is at the expense of their own clients.

Would you believe that one of my fellow realtor(r)s laid the line on me, "My seller needs the money to take care of her father who is in assisted care. Is that "x" amount of money more important to her or to your client." Geez oh pete. He can afford to sit and wait because he can. I, on the other hand, being the ever fair and diligent agent, am looking out for my clients best interests. (A little commission would not go amiss, either. And I mean little.)

Things will look up, they always do. In fact, I have a closing later today with my fixer-upper guy. The same guy that I am trying to negotiate on his behalf in the "she needs the money more" transaction.

As I have mentioned before, when things get strange, its the other realtors that you have to watch out for. Your clients are usually the least of your problems.

So if I hurry, I'll still have time to lick my wounds before my closing.
(Sheesh! Sick father. How do you fight that?! It's like attacking God and apple pie....mumble....mumble........)

Everybody's Got Something to Hide 'Cept for Me and My Monkey

Things are indeed starting to pick up, as I've said before, weather-cold or hot-can affect real estate.

Personally, I now have 3 warm leads and I wrote a contract on a fixer-upper-piece-o-crap with my fixer-upper-then-rent'em client. (This place was scary, even by my standards).

Didn't Einstein have some kind of law stating that an object in motion tends to stay in motion? That doesn't quite fit in with the real estate market. I tend to think of it more as, if you keep doing the same thing again and again, don't expect a different result. Or, my new age self says, just do something different, anything, just do it. Then watch and enjoy all the fresh and different things that start happening.

Just don't forget to get up to pee during the commercials.

Don't Let Me Down

The American Dream. Get married, buy a little house, fix it up, have a baby. Outgrow your house, sell it, buy a little bigger house. Fix it up, have another kid. Outgrow your house, sell it, buy a little bigger house, ad nauseum.

The American Dream has changed in the last few years. Seldom do young couples want to buy a fixer-upper. I really don't know why unless it is that instant gratification syndrome. See it, want it, buy it.

Urban blight is not just in the hands of landlords and tenants. It is in the hands of the homebuyer. Why is it, she says in her best Andy Rooney voice, why is it that nobody wants a fixer-up or believes in sweat equity. Why can't people look at a house and say, yeah, I can see just what I want to do. Why don't people want to put their own stamp on a home. Why doesn't anyone want to actually restore a home.

Ummmmmm....being an "old house" person myself as well as having an interior design degree, this is all a mystery to me. Are there no "House and Garden" magazines; are there no "This Old House" tv shows?

With that said, last week I tried to get my fixer-upper then rent'em client to step out of the box and buy this cute little house on N. Walnut Street. It is a nice older neighborhood with most of the homes being built between 1915 and 1930, not that old says I. My idea was for him to buy the house, fix it up over the winter and then sell it in the spring (with me listing it, of course.)

Oddly enough, he didn't like the north end of town. Having grown up in the north end of town, I think it is nice. But he would not be moved. I pointed out to him that this home was listed at $59K and that one just like it down the street just sold for $95K. No go.

So a couple days later, I woke up with a nagging little thought in my head. Nice house, needs work, nice older neighborhood, $59K plus $20K to fix up equals $79K, sell it for $95K. I've got good credit, I know houses, markets, contractors, painters...........Eureka! Who am I waiting for! I shall buy it, says I.

Too late. Someone else's light bulb went off a day before mine did. Rats.

So now I look around town and notice little pockets of "restoration" going on. Someone is getting on the bandwagon. And if I keep my eyes peeled, then I can join my own one person campaign to re-beautify Wilmington.

Being For the Benefit of Mr. Kite

Unfortunately, this is not an uncommon sight in Wilmington. Who
would think that the county seat of an historically rural community could be exeriencing urban blight. Believe it.

Wilmington City now has the dubious distinction of having 50% of its homes as rental properties. 50%! That is sad.

Not sad because we shouldn't have rentals but sad because we need them. And the reason we need them is because people can't afford to own a home or because they have poor credit.

The unfortunate reality of rental properties is that they may suffer from neglect on the landlord's part or abuse on the renter's part. This doesn't happen in all cases but when a town has 50% of its homes as rentals then the chances of this occuring greatly increases.

As in previous postings, I have sited the fact that incomes are not keeping up with the rising cost of housing. This could be the leading factor in the increased need of rentals. Also, most families are one paycheck away from getting behind on their bills. Heaven forbid one of the two essential incomes should go away from either sickness or a company layoff. Then families have to chose which bills to pay this month and which to pay next. And we all know that once you get behind, it is hard to catch up.

This could result in bankruptcy. No individual really wants to declare bankruptcy. No body sets out to get so far in debt that they can no longer see daylight. But it is happening more and more as the cost of living outstrips the ol' paycheck.

Which brings me to the point of urban blight. As more fortunate people move to the 'burbs, the more that unfortunate people are left behind and the more unfortunate people are left behind the more that fortunate people move to the 'burbs.

I have therefore, for the benefit of all, started a one person campaign to re-beautify Wilmington. But how....? Remember when a newly wed couple could go out a get a little house.....

Tomorrow Never Knows

My last opinion poll dealt with the motivation of people to purchase a home right now. The response was that downsizing was the number one motivator. I have put forth this idea in previous postings. All you have to do is look around you and you will see the "graying of America".

We are an aging bunch, we baby boomers born 1946-64. We are a product of post war parents coming home from WWII and the Korean War (they had a lot of catching up to do.)

We have always been a force to reckon with. We made rock and roll a permanent fixture; as hippies we almost changed the face of the nation, and at the very least we brought the morass that was the Viet Nam war into the fore. We attended college in record numbers and became the most formally educated group to date.

We became the "Pepsi Generation", we consumed, we became affluent, we had kids (we spoiled them terribly-oh generation "Y").

Then we started to retire. The first of our numbers just turned 60 last year. Our kids are grown and, hopefully, out of the nest. We've worked hard, been in the rat race and have come to the conclusion that we don't have to work as hard as we used to. We may still be working at our jobs but the idea of then coming home from work to work in our homes has become not so important anymore.

We want to downsize. Why do we need that big house now. Why do we need that big yard. Look at all that stuff we've accumulated. It's time to have a yard sale and buy a smaller home or condo.

So, too, are our kids' lives different. They get married later. They have kids later. Because we as parents have finally been in that unique situation of being able to provide so much more for our kids, those kids tend to mature a little slower.

They want to stay downsized. A sleeker, more active and fun lifestyle does not leave a lot of time to fix up a home or landscape a yard. Kids these days (okay, I said it) want condos or apartments with club houses, pools, gyms and other fun stuff.

Wait! Their parents want almost the same thing! The circle meets.

With all that said, Wilmington is finally catching up with the rest of the world. Bennett Realty is in the fore front of providing alternative housing for our downsized lifestyle.

We will be working closely with a developer to build a new subdivision, within walking distance of shopping, that will provide a variety of condominium configurations to accommodate our shifting demographics. (Try saying that ten times fast.)

I look forward to being a part of this and am breathing a sigh of relief. The 21st century has finally arrived!

Come Together

Who says realtors are boring!

Your's truly is the one in front with the broken foot propped up.

I Feel Fine

Cute condo, huh. Bigger than it looks, actually. Great big great room, dining room, breakfast room, galley style kitchen and 2 bedrooms larger than those in most "regular" homes.

I am showing this one and another in the same complex in the same evening. Not very exciting you say? Well, considering this is my first showing in over 3 months, its pretty exciting to me.

To have a live lead is actually unusual in real estate. Sure you get calls, but not many actually pan out. Here are the usual calls:

1) Someone is calling out of curiosity because they have driven by a $300,000 house and just wondered how much it is (I think they are hoping for a big bargain. How many times have you picked up something in a department store hoping it has been mis-tagged!)

2) Someone is calling to buy a house when they have no idea if they can afford one. When you ask them to go to a bank to get pre-approved, they bolt.

3) The call where you are told, "I'll talk it over with my wife/husband."

4) The one where they set up an appointment to see a home/meet you at the office/meet you at a house then call/don't call back and cancel/don't show up.

You get the picture.

It is also easy to get discouraged when you realize that 20% of realtors sell 90% of the homes. But instead, it should make you work all the harder to get noticed.

So, my live lead occurred at the end of the day. (I only hope that by tomorrow evening I am not doing CPR.) My day started, however, with the realization that my 1 full listing is expiring in 1 full day. My sellers told me from the beginning that if their home didn't sell during the summer that they would take it off the market for the cold months. I wasn't looking forward to calling them to ask if they would consider relisting but, armed with facts and figures, I made the call.

"I'll talk to my husband and call you back." Hummm..... But surprise! They relisted! (Oh crap. Now I have to figure out how to sell it.)

Speaking of CPR, I have kept one of my contracts on life support since April. April! It is the classic fixer-upper and is tied up in probate. I spoke to the attorney this morning and the prognosis is iffy; it is a wait and see situation. In the mean time, my buyer has agreed to sign an extension to keep it alive lest a buzzard swoop in through the loop hole and pull the plug. (That sounded better in my head.)

At the end of the day, I have had 3 positive experiences; now it is up to me to be one of the 20% to sell 90% of the homes. (Oh crap.)

She Said She Said

I wish that I could take all the credit for the postings on my blog. I guess I might actually qualify for the blame as opposed to the credit. (Credit, get it? Heh, heh)

My sister has become an avid reader of this blog, arguably the ONLY reader of this blog. As such, she has become my biggist fan as well as critic. Not critic as in "critical" but as in feedback and proof reading.

She recently, and thankfully, caught my biggest gaff so far; switching "righting" for "writing", a big mistake for a writer (righter?) to make. I fixed it so that no one else would feel my pain (pane).

The other side of the coin is that I have become a bit self-conscious knowing (noeing, noing?) that someone is out there (their, they're) actually reading this stuff instead of me just sitting here (hear) typing away. But it is a good lesson: yes, the internet will be still and let you put anything on it but that doesn't mean that you shouldn't show some responsibilty to your (you're) fellow creatures and strive to make it a better place for those of us who care (I s'pose there are some who don't, or maybe they do but just in different things, and that's okaaayyy.)

So (sew), she has sent me a great (grate) link for an article called "Dangerous Disconnect Between Home Prices and Fundamentals"; see my "Danger" link on the side bar. In short, it states that the cost of a home versus the money that you bring TO your home in the way (weigh) of a paycheck are not increasing at the same rate, hence causing a dangerous imbalance. But I'll leave that up to you (ewe) to (too, two) read.

Oh, by the way, she is older than me. (Heh, heh)

Yer Blues

Why did the chicken cross the road? Because it didn't have good enough credit to stay on its own side.

Okay, that didn't make much sense, But neither does a lease/purchase. Unless, of course, you can't get a mortgage any other way. And thereby hangs the tale.

So, if you can't get a mortgage through a bank because of bad credit, does it follow that you are a bad risk period? I don't think so, but a lease/purchase has different pit falls for all involved than just making or receiving payments.

First of all, from the seller's point of view, they don't have much to go on except someone's credit, rather like a bank. Even a personal recommendation can go wrong, speaking as an ex-landlord. (don't ask). However, they still retain the deed and all of the perks as mentioned before. And the people that would be most likely to give the lease/purchase would be an owner who doesn't owe their own mortgage. If THEY owe money to the bank and the purchaser defaults, the owner could also default, speaking as an ex-landlord. (It can scare the pants off of you.) On the plus side, in a soft market, as it is now, it may be the only way to sell a property since there is such a glut and young people in particular may have NO credit but may not necessarily be a big risk. If you are a seller, do not go lightly into that dark night. If it is not paramount to sell, don't lease/purchase if you like to sleep at night.

From the buyer's point of view, just read the above paragraph backwards. The only reason a buyer would be seeking a lease/purchase is because they can't get a loan any other way. Do they have bad credit or just no credit. Not quite the same thing, but the latter can lead to the former. Also, the buyer would not hold title to the property and therefore may have reduced rights as to how they can use the property as in altering, remodeling or even having a loud party. You may as well just rent if your home is not really your own. Then there is the question of writing off mortgage interest, taxes and insurance. Forget it. Remember the house is not your own.

And for both sides involved, the contract could be an absolute nightmare to hammer out. With a mortgage, the bank tells you what they can do and you do it or not. And when it comes to the purchase contract, you agree on a price and let your agents do all the fighting.

Where does the real estate agent fit into this picture? Way down in the left hand corner about where that water stain is. If, as an agent, you are lucky, there is money given up front as a down payment and your commission comes out of that. But if the buyer has a down payment, why are they going lease/purchase? You get the picture.

So what about the gentleman moving to Wilmington with DHL that was seeking a lease/purchase? He canceled his second appointment and disappeared.

And I had just started planning that vacation to Aruba.

Life doesn't always turn out the way you planned.

Money

Sometimes life just doesn't go the way you planned.

While on floor time last week, a gentleman called who was looking to move his family into Wilmington from Cincinnati due to a DHL transfer. The home that had spurred the phone call was vacant and had been on the market for quite sometime. During our phone conversation he told me that he still had a home to sell in Cincy so he was looking for a home for lease/purchase. I asked him why he would want to go that route because interest rates were low. He then told me that he could not afford 2 house payments and that he needed to learn more about Wilmington before he bought. I told him I would make a couple phone calls and call him back.

I found out that, theoretically, the owners would be willing to do that except for one thing. They had already rented it. So I called him back and said that if he would come into the office, we could talk about his options and that I would run some homes and try to find ones that had been on the market for awhile. My theory being that if a home is hard to sell, the owners would be more responsive to a lease/purchase idea. We made an appointment for him to come in on Friday afternoon.

"But wait!" you cry. "If he can afford a house payment and rent, then he can afford 2 house payments." Exactomundo.

When life gives you lemons, make lemonade. Okay, so I have a non-buying buyer and I'm in a slump. You just have to work with what you got.

Friday afternoon rolls around and I get a message from my guy and he tells me that something has come up so he would like to reschedule. We set up another appointment.

In the mean time, I am running figures and looking for homes and scratching my head as to why someone would want to tie themselves to a lease/purchase but not tie themselves to a bona fide purchase. Hmmmm....

The way a lease purchase works is generally this: The home is rented but there is an agreed upon amount paid up front to the seller as "insurance" that the home will be purchased by the renter. This applies to the purchase price, just like a downpayment to a bank, and is non-refundable. The seller acts more or less as the bank with the loan amoritized and the rent/payment includes principle (money that is applied to the actual amount borrowed) and interest (usually about 2% more than a conventional loan). After an agreed upon amount of time (1-2 years), the renter finances the home thru the bank and the seller gets paid off. All of this has to be put into writing of course, either through a realtor or an attorney.

The alternate way that a lease/purchase works is that the rent does not apply to the purchase price but the contract states that the renter will purchase the home in a set amount of time (1-2 years). There is still money up front.

In both scenarios, the deed is still held by the seller and, even though the renter is responsible for taxes and insurance, all remain in the seller's name. The advantage to the seller is that he still gets the tax right off.

But why, you ask, would someone want to purchase a home in this fashion? What are the advantages and disadvantages of this transaction. And why would a realtor want to get caught up in such a strange situation? And whatever happened to that DHL transferee? Find out soon in the next installment...