Yesterday

Derby Day started out well. I got lots of flower pots planted, as is my tradition. Anticipation built as I eagerly awaited the race and all the celebration and pomp. But it ended so tragically that I turned off the TV as soon as the race was over. I just couldn't stand to watch the awarding of the famed blanket of roses. How can one celebrate while one of its racers, who came in in second place, lay dead on the track. It made me wonder if the race had become too big, too hyped, too commercialized. Are the trainers and owners pushing their horses, their athletes too hard? Has too much money become involved? Too much "riding" on the race? I may have watched my last Kentucky Derby.

The first clue that The Derby had become much too much was when the announcer, as the beautiful horses were parading onto the field, could barely get all the sponsors names out of his mouth before all 20 horses were onto the track. I lost a bit of my wonder and innocence yesterday. These gorgeous creatures, God's creatures, were supposed to be lovingly trained and cared for, pampered, by their owners and trainers. These award winning athletes deserved to be groomed and loved. Yes, race horses are workers and money makers, but you never heard about them racing for 3 years then being put down because they outlived their usefulness. Horses are "put out to pasture".

But now, in this time of big money, big business, big sports, even an innocent animal becomes just another pawn. Steroids has destroyed baseball and its players and now the whip has destroyed a beautiful horse. I wept.

Taxman

Ah yes. Tis the season. But not to be jolly; to be grumpy.

I just finished doing my taxes, and boy are my arms tired. Gee those commission checks look good coming in but those taxes look horrible going out. You always think you're going to have one more good commission to count on before tax time. I guess I was fortunate that I did have one come in but it raced back out again due to aforementioned household disasters.

Realtors are considered independent contractors. They are not employees; the commissions they earn have not had taxes or social security held back. Therefore, you are instructed early on to always hold back 10% of each check for taxes and to make your own social security payments. Good in strategy, bad in practice. This is a very unpredictable business. One never knows if one's last commission will indeed be one's last commission. So spend it if you got it. Then as far as that independent crap goes, there is no such critter when you are working for a living, and who isn't? We like to think that we are in charge of our own destinies but when push comes to shove we are always at the mercy of something. From market fluctuations to plumbing disasters to personal relationships, all we can do is hang on for dear life and hope that, even though the gods may be crazy, they can also be merciful.

And, not to put too fine a point on it, a sales person's broker holds a big key to a realtor's success. Yes, I know we get out what we put in, but a good broker can either promote his or her agents or they can sit and watch. And back to that independentt thing; let me explain how that independent relationship works. My broker holds my license. He can keep me working for him or he can send my license back to the state at which time I am set adrift. A salesperson cannot work without a broker on which to anchor their license. Also, all listings belong to the broker. I do the leg work and go out and get a listing. But it is not my listing, it is his. Same goes for a sale. I make the sale on his behalf. After a closing, I return to the office with a fat check in my hand then hand it over to him. What does he do with that commission check? Anything he wants to. He can give me half, which is customary, or he can keep the whole thing. Does that sound independent? Nah.

Where am I going with this? Give to your broker that which is your broker's, give to God that which is God's, and give to Caesar that which is Caesar's.

My broker has my license, my God has my soul and Caesar has my pocket book, my credit card, my checkbook, my first born....

So my advice for those who die, declare the pennies on your eyes.

What Goes On

It's been a quiet time in my hometown of rural Wilmington.

Winter is winding down and spring is in the air. The cold months are always the slowest but even when it is cold, if the sun shines the phones ring. It hasn't been too bad this winter despite the "soft" market. (I don't know why they call it "soft" when realtors have to work harder just to break even.)

I've had some relatively productive leads. The hard part, though, is trying to hang onto them. People that want to see a property or even call you just because they have been pre-approved for a loan (yeah!), will soon disappear although you, as a realtor, have tended to their needs.

Listings are a dime a dozen. It used to be that all you wanted were listings. Now, however, a listing is the hardest part of your job. There was a time when, if you had a listing, all you had to do was sit back and watch it sell. But now, with the soft market, listings can languish for months. I used to almost never get a listing. But, surprise surprise, I got a call generated from one of the many prospecting letters I have sent out over the winter. And it was just up my alley. A 100+ year old Greek Revival home that is lovingly updated with a fabulous garden. (Of course the garden doesn't look like much now, but I saw pictures.) My new client and I have so many things in common it is almost uncanny. I met her years ago while working at the public library. We knew each other in passing but I never new much about her. Now I get to market her home in the fashion in which I am accustomed.

I have heard around the office, not once but several times, the statement that an agent would give up all their listings for one buyer. The market is glutted with homes to sell, but if you have a buyer (hopefully that doesn't have anything to sell) and if you can hang onto them and if you can find a seller willing to negotiate (getting more difficult all the time) and the buyer can get financed (again, getting more difficult all the time) then just maybe you will make a sale. There are a lot of "if's" in that statement, you will notice. But an "if" doesn't make it impossible, just harder.

BTW, I lied about it being quiet in Wilmington. At least in my neck of the woods things have been crazy. All in one weekend, the sewer backed up in my basement and the old antique furnace gave up the ghost. My home has survived, I am now living in the 21st century with heat, A/C and an appropriate place for my waste to end up. Oh yeah, and the siding blew off the end of my house in a wind storm. I'm so sick of workmen that right now that if my roof blew off, I would get up there and fix it myself.

And that's the news from rural Wilmington, where the workmen are gone, the market has dried up and this realtor has survived (so far.)

All Together Now

Oh woe is me. I had to work aallll weekend. Wah. A continuing theme with me is, "I don't have anything in the pipeline/Why do people keep calling me at home so I can sell a house."

This past weekend, I felt as though my life wasn't my own, which it wasn't. It was my client's, which is as it should be. When one is in the middle of negotiations, in this case the results of a whole house inspection, it behooves all to get things wrapped up as quickly as possible lest some other problem rear it's ugly head. And GET IT IN WRITING. Duh. Duh? You would be amazed at what some brokerages try to do without having it in writing. Now, yes, this is a small town and there is still such thing as a gentleman's agreement. But small town or not, have you ever watched Judge Mathis? The disputes are real, the courtroom is real and it is full of friends suing friends and relatives suing relatives because of a gentlemans's agreement. Ultimately what happens is that when the whole sordid thing is over, there is not a gentleman standing.

So my negotiations this weekend centered around what the buyer(the other guy) and my seller would agree was the responsiblity of the other party. Initially, the buyer's agent said they wanted A and B. My sellers said that they would do A but that their contractor said B was not necessary. Weellll, the buyer's agent hadn't put anything in writing so I did. I typed in what was requested and what my seller's were willing to do. And, lo and behold! The sellers wanted MORE! (Please sir, I'd like some more.) You want more, you want MORE!?

Yep. So now the buyers wanted to send over their contractor. Okay. A fact finding mission for their own edification. Or so I thought. But not wanting to stir a pot that doesn't yet stink, I advised my people to let the buyer's contractor take a look. What was I supposed to do? I knew that the buyer's could walk because they didn't want to buy a pig in a poke. And, lo and behold! They, well, you get the drift.

To make a long story short, all is now thankfully signed and delivered. A little more money out of my seller's pocket but it has kept the deal together and everybody is slightly happier. The buyers get the house they want and the sellers can get the heck out of Dodge.

A realtor(r) told me once that if everyone at the closing table isn't mad, then he hasn't done his job. That sounded just horrible and insensitive at the time. But now, having gotten a whiff of the shoe being on the other foot, I can see where one just doesn't want to stick around to see if the other shoe will drop. It is best to keep truckin' and try to cut everyone's losses.

Won't I be surprised when the closing finally comes, and it will, and someone stands up at the table, bangs their large brogan on it and yells, "Order! Order!"

I'll take a ham on rye.

Roll Over Beethoven

All Things Must Pass

This blog seems to be leaning a bit more towards the Beatles lately. It's not necessarily because I don't have anything better to do, because I do. But it is becoming more apparent that the more creative I have to be ( such as thinking of ways to drum up business) the more creative I am.

So I am dipping my toe into the waters of video making. This is my first attempt, so please bear with me. As my creative juices start to flow, there is no telling which way they will go.

The moral of the story is, keep moving. Don't let the grass grow under your feet. If you can't do exactly what you want (like sell houses), then do something. The more you do, the more you will do. Keep the universe stirred up a bit. A rolling stone gathers no moss. Or is that The Beatles...

So in this case, The Beatles help me to gather no moss. They are the background music of my life. And even though the housing market is down, this too shall pass.

I'm Happy Just to Dance with You

Bob, the secretary treasurer of the Clinton County Board of Realtors, sometimes needs Robin, the assistant to our broker, to help him with his secretarial tasks. Gee, I guess that's one secretarty helping another. Is that like one hand washing the other? Anyway, Robin must have had too much coffee that afternoon and decided to dance it off. We are a strange lot.

This week, despite the cold, the wind, the snow, the rain, we have actually had 8 homes get accepted contracts. The place is starting to feel like a real estate office again. But as you can see, we still have time for fun and games.

My one and only listing just suffered a whole house inspection in preparation for the closing next month. I say "suffered" because the inspector goes over the house with a fine tooth comb, pokes at sore spots with a stick and crawls around on the floor, and under it, with a magnifying glass. Quite a humiliating experience for the poor house. "And he invariably comes up with something, which is his job. Now we have to deal with these issues which could ultimately cost the sellers more money. Whole house inspections are always the "touchiest" part of a sales contract but we must push forward knowing that this too shall pass.

So in the meantime, let us dance.

I Should Have Known Better

Okay, I didn't realize that you couldn't rotate a video image with my software. Anyway, I am adding visual elements to my blog to better illustrate the life of a realtor. Sometimes words just can't express what goes on around here....

This is my desk today. The conversation is between an administrative assistant and one of our agents. It seems that there is a question regarding an envelope.........

Here, There, and Everywhere

My life has finally come full circle. And I thought I was just running around in circles. I keep up to date in my profession by, in part, reading a publication put out by the National Association of Realtors(r), oddly enough entitled Realtor(r). The current issue is dedicated to home design instead of just selling. Of course the emphasis is on how design influences people's buying pyche, both positively and negatively. I have a degree in interior design and now I have permission to use it!.

I have never been fond of the idea of going into someone's personal space and telling them that they have to paint everything white or the house will not sell. Poppycock! I think most people are savy enough to know that the seller actually lives in the house. But that doesn't absolve the seller from taking some action to make their home more broadly attractive and tasteful. I was pleasantly surprised that my professional publication acknowledged that color is good. But there is still no substitute for taste. Everybody's taste can't be the same but I certainly hope that a potential buyer recognizes taste even if it isn't their own. (Well, that might be wishful thinking but I'll give the public the benefit of the doubt for now.)

One school of thought is that the realtor should be aware of design trends in order to help their buyers visualize their new space. The flip side of the coin is that the seller should think in terms of classic. Once again, this doesn't mean that an extreme makeover is in order. But it does mean that the realtor must guide the seller to see their home as others may see it. We all get used to a certain amount of clutter that is the necessity of our lives. But eventually you cease to see it. A well informed and experienced agent can point out simple yet effective ways to spruce up without tearing up (tearing up?)

The bathroom, perhaps one of the most overlooked yet underdecorated room, is the one we spend the most time in. Spice it up! Don't go out and buy a polkadot shower curtain but bring in some contrasting curtains and towels and consider bringing in a small piece of furniture if space allows. This will warm up the space and make it look less utilitarian and more inviting.

Entryways are debris magnets. Come in the door, drop the shoes, the purse, the soccer ball, the mail, and next thing you know you have a mess. Clear up the debris and create a focal point that will literally draw people in. A bright pillow on a chair, a striking vase on a table and a decorative rug goes a long way. And once again, you don't have to spend money, just rearrange what you already have.

The living room can suffer from either over use or under use. It is either a showplace where no one is allowed to enter, or it is so lived in that it looks shabby, not chic. Again, bright accents will liven up the room; flowers, pillows, paintings, especially in red or yellow. Clear out that overflowing bookcase and set those old books packing. But don't make a sterile environment. If a potential buyer doesn't even want to set foot into that room, then it may as well not exist.

Lighting is always important but that doesn't suggest 300 watt bulbs in every fixture. Then you have an operating room, not a home. Warm, ambient lighting sets a comforting mood in living areas. Shine up that chandelier and dust off those lamp shades. Consider going to your local big box store and pick up a couple inexpensive accent lamps for the living room and master bedroom. If the buyer wants more light, let them reach for the wall switch.

The kitchen is perhaps the single most important selling point of a home. Clear away that mouse nest of unpaid bills and replace it with a basket of fresh fruit. Set the table with bright dishes, put a green plant by the sink and hang beautiful dishtowels. A bright enamal teakettle on the stove reeks of "home."

Come on sellers! Give us tired realtors a hand! Spice up, clear up, warm up and shine up. Then the next thing you know, you'll be packing up! That is the point, mmkay?

And Your Bird Can Sing

Yes, these are the male realtors of Bennett Realty that are vying for the opportunity to sell you a house! So sad.

If I fell

Sexy Sadie

Let us all have a moment of silence for the passing of the Maharishi Mahesh Yogi.

For those uninitiated, he was the "guru" of The Beatles in 1968. Because of their trip to India and their sojourn into transendental meditation, made popular and Westernized by the Maharishi, The Beatles had a time of R and R that was much needed. Also, because of the cleansing of their bodies and minds and the opening of the mind, they wrote prolifically during that period and released an almost unprecidented double album know as "The White Album". The album cover itself was shocking in its absolute stark whiteness, except for the embossed words "The Beatles" along with a serial number. The white cover was a reaction to the complete and total image overload of the previous album "Sgt Pepper's Lonely Hearts Club Band."

At the time of the recording, their producer, George Martin, tried to talk them into gleaning only the "best songs" and shelving the rest. But by then, the lads were feeling their oats and insisted upon the whole enchilada. When asked decades later about that decision, Ringo said, "I always thought it should have been released as two albums, The White Album and The Whiter Album." We love Ringo.

Which brings me to the topic of improving. Can you really have too much of a good thing. If a little is good, isn't more better? Maybe when it comes to the Beatles, but not when it comes to improving a home.

There is a movement in these days of foreclosures whereas the people who buy investment properties are having a field day. Especially if you are a handy person and like to fix things yourself. Now if you are slum lord and are just looking to flip a house or move in some unfortunate soul, then you can change the channel now. However, if you are a fixer-upper kind of person please try to restrain yourself. Here's why:

Say you find a bargain for $35,000. It is run down to the max but has good bones and a good foundation. You want to make this home a showplace; clean, neat and so sweet. New siding, new windows, new porch, refinished floors, updated plumbing and wiring, new kitchen, added bath, fresh drywall and insulation in the attic. Now you are the proud owner of a fabulous house. But, and this is a big but, the other homes in the neighborhood are only worth $80K. Ooops! All that work, time, money and pride of workmanship and you are stuck with a white elephant. Would you pay $125K to live in a $80K neighborhood? Doubt it.

The other scenario deals with the seller who is extremely house proud. They built the house themselves, sometimes even with their own hands. They have a gourmet kitchen with stainless steel appliances, wood floors, jacuzzis, custom woodwork, hand built cabinets (sweated over for months in their own woodworking shop) personalized touches everywhere. A year later, they realize that they need to retire to the sunny climes of Florida. They have put their blood, sweat and tears into the house and they know it is the finest home around. And they are right. And here's that big BUT again, a comparable stock home typical of the area goes for waaaayyyy less. But these homeowners are ssoooo proud that they can't imagine why someone wouldn't want to pay for all of their good taste.

So yes Virginia, you can overimprove. Which is not to say that you shouldn't do all of the above. Just remember that if you do, do it for your own enjoyment and not with the idea of raking in loads of mula when you sell.

Rule of thumb; white elephants don't turn into White Albums.

All I've Got to Do

I hate to go on and on about the slump in the housing market, but I will anyway. The economic news has stated that housing starts were at an unprecedented low last year. So what does that mean? It means that builders aren't building because buyers aren't buying. "Housing starts" is not the only way you can tell that the market is down but it is one of those "economic indicators" that economists must use because they can't call all of the real estate companies in the country and say, "Hey! How's business!"

Housing starts is like the unemployment rate, the cost of living, the stock market, the rate of inflation, the gross national product, the national debt, ad nauseum. The bean counters have to count something so they make little charts then count the little dots. I'm not saying that these indicators are not useful, they are. But they can be a bit misleading because they are averages for the country. Every region, state and community are different. Look at Detroit. Car manufacturing has been slipping for decades and the place is drying up and blowing away.

One of Wilmington's economic indicators that I have noticed is a new little subdivision that used to be the hottest thing since sliced bread, canned beer and indoor plumbing. Three years ago, those houses were going up almost overnight and selling just as quickly. They were priced for the upper middle class family and for the upwardly mobile. I drive through that area now and it looks like a ghost town. There is an unfinished street, empty lots full of tall weeds, piles of construction debris, new construction that has never sold and empty homes whose first inhabitants have moved on only to abandon the house to the vagaries of the real estate market.

Gee, I sound like some armageddonist. But if you are going to sell real estate these days, you have to get real (no pun intended) then don't take anything for granted. When things are slow, you don't just sit back and prop your feet up. You must work even harder.

For the first time in my real estate career, I have invested in marketing books. I have always eschewed the inspirational writers and speakers because they sounded so slick and evangelical to me. So one of the books I purchased has true funny stories of sales people's blunders then an analysis of what went wrong. The other book has business letter templates for marketing, prospecting and follow-ups. And...I have actually been using them, not just trying to learn by osmosis.

So far, no good. But if you keep doing what you've always done but expect different results, you are clinically insane. You may be right, I may be crazy. But it just might be a lunatic someone is looking for. And when that time comes, I can proudly stand up and say, "I'm a lunatic! Let me sell your house!"

I think I have internalized the sales blunders. Ooops!

You Really Got a Hold on Me

The housing market, once again, is making headlines. Well, if you don't count the State of the Union Address, which I don't. Here are some recent news blurbs concerning the State of the Housing Market, which will continue to effect us all. Much more than some lame duck.

"Make housing part of stimulus, NAR Says...The federal economic stimulus package under discussion by President Bush and Congress should loosen constraints on Fannie Mae and Freddie Mac to help make homeownership more widely available to households, NAR says. "Any stimulus package must address housing issues and increase the conforming loan limits for these two government-sponsored enterprises," says NAR President Dick Gaylord. NAR has been calling on Congress and the administration to increase the loan limits for Fannie Mae and Freddie Mac from the ceiling of $417,000 to $625,000. Doing so would reduce the supply of homes on the market by more than a month, strengthen home prices by 2-3 percentage points, and increase economic activity by $42 billion, NAR estimates. Foreclosures could also be reduced by 140,000 to 210,000 and result in an additional 348,000 home sales. )"- The Ohio Association of Realtors.

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=OBR&date=20080129&id=8105059

Above is a link to the news about CountryWide, the well known controversial mortgage lender. As you may know, it was purchased by Bank of America. For good or evil? You decide.

'“It looks to me as though maybe we haven't reached the complete bottom yet, but we're in the bottoming phase right now,” he said.
But the latest data don’t help forecasters much. Since July, the median price of existing homes has trended lower, but it ticked up slightly in December. And while sales volume began perking up in late 2006, a 0.8 percent drop in last month has some analysts rethinking the notion that the market had bottomed out.
“I still think there's further downside risk,” said Richard Berner, chief U.S. economist at Morgan Stanley. “And the reason is that it has become a buyer’s market with the imbalance between supply and demand both for new and existing homes out there.”
The supply of unsold homes — which soared to more than seven months worth of inventory for single-family homes from four months at the start of 2005 — has come down a bit. But it’s not clear whether the market is getting back on its feet or sellers have decided to pull their homes off the market and try again when the market improves.'- By John W. Schoen Senior Producer MSNBC updated 6:34 p.m. ET, Thurs., Jan. 25, 2007.

More gloom and doom? Well, we need to be realistic. The single largest contributing factor in the housing slump is the simple principle of supply and demand. Of course, why there is more supply than demand is a bit more complicated. Foreclosures and the threat of foreclosure, due to greedy lenders and a false sense of security amongst them, has contributed greatly to the glut on the market.

The Fed recently lowered interest rates by 3/4% and it is rumored that there may soon be another 1/2% decrease. What does that mean to mortgage rates? Diddly. That lowered rate affects what one bank lends to another, sometimes to increase their on-hand reserves which is mandated by the Fed. Sound like a game of round robin. Yep.

So, if you have bad credit or no money to spend, the interest rate means nothing to you.

But hang in there, folks. If you are in trouble with your credit card company, you can call them and negotiate a different interest rate or payment. The same goes for your mortgage lender. Call them. I can't reiterate that enough. If this whole mess is going to turn around, we have to take advantage of all resources. Every little bit helps. Don't wait for the ones with all the power and money to come knocking on your door to help you. They are only worried about themselves. YOU have to take charge, be brave and take charge.

Knowledge is power. Al Gore invented the internet for a reason.

Cry Baby Cry

http://www.housingmarketfacts.com/

Still on the fence about buying a home? Do you even have a fence? Chances are, if you are a renter, you not only don't have a fence but you don't have a yard.

This website gives some factoids about the benefits of owning a home. One is that, chances are, a home will be your biggest investment and asset. And, for this reason, it is an endeavor not to be taken lightly. Be prepared, if you purchase a home, that you nurture it, love it and make it your own.

That got a bit mushy, but when something becomes personal to you, you are more likely to fight for it.

The above website will address the wherefores and how-to's. Part of my job is to help you find a home, not just a house.

I think I'm gonna cry......

Power to the People

http://www.realtor.org/subprime_lending.nsf/Pages/mort_cancellation

This link could save your life, certainly your home. This info is from the NAR, National Association of Realtors. You may have seen ads on TV about this organization. It is a very prestigious organization and insures (in theory) the professionalism of real estate agents. A "realtor" is not the same as a "real estate agent". In order to be a "realtor" you must be a member of the NAR. That is why you see Realtor(r) as a registered trademark. I am a Realtor(r).

Why am I telling you this? Because the above link is real, no pun intended. It is not rumor, it is not spin. So take this info as gospel. If you are behind in your mortgage payments, there is something you can do. The worst thing you can do is nothing. Make a copy of this article and take it to your lender. I'm not saying that your mortgage will go away. But you may be able to catch up or at the very least you may have time to sell before you are foreclosed upon. Foreclosure, as well as bankruptcy, will ruin your credit for a loooonnnngggg time. Especially since the banks are tightening their belts.

So good luck. Take the bull by the horns and do whatever it takes to not let this recession (yes recession) take you down with it.

The deck is stacked against the dwindling middle class. But when the powers that be start feeling the hurt in their pockets, it is time to take advantage of the situation.

Power to the people!

Yesterday

Well, it looks like we'll finally get that piece of crap closed. When you are working with foreclosed properties, you are at the mercy of the whims of the bank. They like to drag their feet, but when they want something, they want it now. My client has bought many homes in this neighborhood. It doesn't look like a bad neighborhood, just a bit run down. However, I did read in the local paper yesterday that someone on that street had been brandishing a gun. Whenever I show my client "homes" in that area he always jokingly but seriously tells me I should stay in the car. But being the curious person that I am, I just plow right into these infested abandoned places just to see what I can see.

Usually all I see is crap. But there is that old house part of me that likes to visualize what this pile of planks and falling plaster used to look like. I like to think about what the neighborhood used to look like, who built the home and who wanted to live in it so bad that first day they opened the door. Reality then sets in and I see bathrooms that have had leaky pipes for who knows how long; rotted walls, stained floors, sagging ceilings. I see the remnants of past owners attempts to "update" the house, then, when the job became too big to handle, it was cast aside. I see bits of original woodwork that has been eaten by termites then "repaired" with something Lowes had thrown in the dumpster behind the store. I see missing foundations, broken windows, worn shingles. It's a shame, really. These older neighborhoods used to be the backbone of Wilmington. But as new was built, old became, not "cheap and cheerful" but just cheap.

In the defense of the city of Wilmington, several years ago they actually put money into these older neighborhoods. Some areas of the city had no curbs, crumbling streets and decaying yards. The city came in and gave these areas a face lift with new streets and plumbing. Yes plumbing! Not too long ago some parts of Wilmington had virtually nothing. And as the city took more pride in their town, so did the residents. Now you can find some really cute little places in the most unusual places. Like my house. I live in one of those old neighborhoods and things have been looking up these last couple years.

But things are not so good in other places. Better, but not quite there. Do I have the answer? Nah, I guess not. I wish I did. But as one realtor told me years ago, while I was shopping for a "fixer upper" for myself, "For every dirty little house, there's a dirty little buyer."

I never quite knew what to do with that one.