Archive for the ‘Realtors and Lenders’ Category

Short Sales- What is the best offer?

Saturday, July 24th, 2010

If you’re a listing agent or a homeowner in a short sale position, READ THIS BLOG, cause this one is for you.  Then watch the video.

We’re fortunate enough to work with many different types of clients.  Recently, we were approached about doing a show on HGTV about our work with first time homebuyers, which we’re very proud of.   We also work with various investors, big time investors.  I’m talking about some people who are serious about buying homes, to the tune of purchasing a home EVERY DAY.  These guys know what they are doing.

This particular investor that I am speaking of only purchases distressed properties and right now there are a lot of short sales on the market.  Short sales used to be the bane of my existence when I was was working with owner occupied buyers.  In case you don’t know, they take FOREVER to close.  I’m talking 60 days in a perfect situation, which few are.  In reality, you’re looking at more like 90-120 days.  You’re working on the bank’s schedule and since they’re taking a hit and up to their eyeballs with other shorts, you better have your act together when you submit you paperwork.

This particular investor hires (and pays for) his own third party foreclosure prevention company to handle all communication with the bank.   Their success rate for getting deals closed is around 90%.  Yes, you read that right 90%!

So,  AGENTS – if you want to work with our investor to sell your short sale quickly.  Do not, and I repeat DO NOT hire a mitigation company to handle communication with the bank.  We have our own and banks do not like to work with more than one party on a deal at a time.   Rest assured, when you work with us, you will get your full commission, unlike if you hire some other mitigators.    As with any short sale, there is a boat load of paperwork upfront, but we have systems in place to help make sure the team has everything they need to get the job done.  If you have a short sale, call us, we will probably buy it.

In this video, Dan and I are discussing short sale offers.  The key take away point of the video is, the highest offer  is not necessarily the best offer.  In a negative equity situation, the homeowner cannot, by law, walk away with any monies from the sale.   So, no matter how low the initial offer comes in, the seller should sign it and send it along to the bank to be negotiated.  The initial offer is just a formality and a way to kick off the back and forth negotiations with the bank and the negotiator.   When the two sides finally come to terms, the seller is presented with a letter indicating what type of agreement was reached for their final approval.  In the rare case where there is a deficiency, it will be clearly stated on the short sale approval letter.   If the terms don’t work for the seller, they may choose not to sign, and the deal is off.

Remember, these are CASH deals on our side, no financing is required and these are professional investors so waiting on the bank’s response is not a problem.  If it takes several months, no problem.  We’ll be waiting…

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eKEY for iPhone is coming

Wednesday, June 2nd, 2010

For all my Realtor friends out there who have been following my rants about having to use the ActiveKEY, there is hope!

I noticed (Jenn told me) on the bottom of the Showing Value emails there was a new blurb about being able to open lockboxes with iPhones.  At this point, little other information is available, but I’m excited!

Here is a screenshot of their website.  This can’t come along too soon for all us iPhone using Realtors out there!

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Times have changed. Virtual Tours Then vs. Now

Saturday, May 15th, 2010

Well, everyone has to make a first attempt at something, right?  A few years ago I wanted to get ahead of the curve and do video virtual tours.  It’s pretty embarrassing for a number of reasons.  So, I’m facing my fears and posting this very amateur first attempt here for your enjoyment.

Bel Air Condo Video Tour

I’ve gotten away from the above kind of virtual tour for a few years, but I think I’m ready to give it another shot.  In the mean time, we have an awesome new tool for virtual tours.  We also have our own Youtube channel that we’ll be adding content to from now on.

So, compare then and now.  This is a video virtual tour of our listing at 5905 Bold Ruler.  The house is simply spectacular!  Check it out.  If I only had the money this is one home I’d jump on immediately if not sooner.

Comments please!

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How we became successful in Austin real estate

Thursday, April 15th, 2010

There are a million different ways to become succesful in real estate. There are also as many ways to fail in this business.

Let me give you some numbers:
The average agent made $32,000 gross commission last year. Since agents split their commission with their brokers, pay their own expenses, buy their own health insurance (if they have any), their take home pay may be as high as $16,000. Yes you read that right 16 large. Sad isn’t it?

Oh by the way, those numbers are for experienced agents. The average for agents that have been in the business for less than 2 years is $8,000. 30% of Realtors in TX didn’t sell a single home last year. One last fact for you, it costs almost $2,000 each year to be in business.

So how did we become successful? Well, there is no single answer. But there is one particular thing that stands out in my mind as having the largest impact. We had a coach. A coach who helped us develop systems and processes to rum our business like a business. We’re not playing around, not doing this part time, and not letting things just happen. There is a plan, a focus and a set of goals we work toward. We do have a lot of fun though, housewarming parties and regular client appreciation are a big part of building relationships with our clients. We wouldn’t be here without them!

The coaching program we have used for years is from Brian Buffini. If you are new to the business or just need some direction, check it out. I wouldn’t be where I am today without their programs.

I am in Dallas right now for a 2 day seminar that Brian is putting on. Is it cheap? No, but it is the best investment I have ever made in myself and my business.

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ActiveKEY frustrations

Friday, March 5th, 2010

A few months ago, my trusty old TREO died and and I knew it was time to step into some new technology.  I’d had my (eye) on and iPhone for some time, but was hesitant due to the fact that I used my TREO to open the GE SUPRA MLS lockboxes here in Austin.  The GE Supra lockboxes use infrared technology to open the boxes to obtain the key to show property.  As a Realtor, it’s pretty hard to show houses when you can’t get the key to open the door, so needless to say, this is a pretty important piece of technology.

So, when the TREO died and I went to get a new phone, guess what?  Very few phones are being made/sold today that have an IRDA (infrared) port.  iPhone? Nope.  Blackberry? Nope.  Infrared is a dead technology. But thanks to GE and decisions by the powers that be with the Austin Board of Realtors (ABOR), we’re stuck with it for now.

Bluetooth has made infrared obsolete.

After thinking about what kind of functionality I wanted in my phone, an iPhone was definitely going to be my choice.  Only one problem, no infrared and no way to use the phone to open lockboxes.  Arggggghhhh!  So, I’m going to have to lug around yet another piece of hardware to do my job.

Enter the ActiveKEY.  This goofy looking piece of equipment reminds me of a Fisher-Price fake cell phone.  Seriously.  I think GE must have engineers and designers that couldn’t find a job anywhere else.  They have the nerve to charge me $180 bucks a year to use this piece of junk. (at least that is what ABOR charges).

So I am stuck using this ActiveKEY and I found one redeeming feature about it that made it tolerable.  I could turn off the “radio” (the key uses the cell networks to update) to put the key into a deep sleep mode and the battery would last for weeks, so I could throw it in the console in my car and forget about it.  With the radio off, the charge on the battery would last for weeks.

That changed 2 days ago when they “upgraded” the firmware in my ActiveKEY and removed the ability for me to turn off the radio.  So now that the firmware is “upgraded” the ActiveKEY radio stays ON for 12 hours a day, constantly pinging the cell phone network.  This causes several problems, 1. I now have to bring the key in from the car (or purchase one of their overpriced car charger adapter$$ ) 2. Keep it plugged in which wastes energy. 3. Every time the stupid key pings the cell network, it makes my electronics freak out.  Way to go GE!  4. I’ll probably forget the stupid key on the way to show property because it’s no longer in my console.

I’m still upset that they have no solution for iPhone users to utilize a fob the way Blackberry users can.  You would think with the number of iPhone users, this would be a top priority for GE, but they were probably using those resources on the ActiveKEY.

The real solution is to get off the ancient technology of infrared and move on to the 21st century.  Infrared is dead.  In the mean time, GE- Give me back the ability to turn off the radio on the ActiveKEY!

Maxwell McDaniel

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