Have Pre-Approval Letter, Will Travel!

The phone rings and the person on the other end asks for information about one of my listings: one of the first questions I ask, after "Are you working with another agent?" is..... "For what amount is your preapproval letter written?"  Some don't miss a beat and quickly answer, detailing the amount and the lender whose signature graces the document.  Most, however, still say "Oh, I'm just looking at properties right now." 

There are a few things I think, but do not actually say, such as "And that's exactly why Realtor.com is so popular:  you can tour thousands of properties without a preapproval.   However, once you are ready to start crossing thresholds you must be ready to present that piece of paper. "  That usually comes out more like, "Today's market demands that you are able to prove to sellers that you are ready, willing and able to buy their home now!" 

In most cases I provide lender contact info and ask the buyer to call me back as soon as they are through the process.  I note their name and number and tell them I will keep them in the loop and let them know of other interest in the property. 

 
In some cases, however, I am met with righteous indignation as the buyer tells me they have had other agents show them properties without asking if they could afford it.  I never hesitate to explain that I am not just any agent, and I assure my sellers I will only bring pre-approved buyers. 

There have been at least two occasions where, after getting the buyer's name, and being met with resistance, days later I opened my email to find a contract with their name written in block letters upon it.  In each case the showing log proves the other agent brought them through, then they went for preapproval, and some time later the contract showed up.  Obviously those buyers were able to find one of those other agents and it worked out for them.

A couple weeks ago a young man was insistent about setting up a showing on a new listing:  when I told him he needed to be preapproved he balked and quoted the refrain about other agents.   I shot back "Actually I request that agents only bring preapproved buyers through my listings" and he said "Well, I'll find someone to take me through who doesn't think they're wasting their time!"  And he hung up. 

I decided to send him a text message and began "As I was trying to explain...." and I highlighted the fact that he could be wasting his own time as well, and worse yet, setting himself up for failure.  I explained how I've had people tell me they can qualify for $150,000 only to learn they can only obtain a mortgage for a $100,000 home.   If they have already been touring homes in the $150,000 price range they will never be happy with homes priced two-thirds of that number. 

About an hour passed and my phone alerted: text message from "non-preapproved buyer" (that was his name at that time) .  "Wow... I never thought of it like that.  I really appreciate you educating me and I will definitely wait until I have a preapproval.  And I shouldn't have hung up on you.  I am sorry." 

He has a preapproval letter and he called me.  His name is now "Ed... buyer." 

NationStar Mortgage is the absolute worst short sale servicer!

Time for a combination of the 3 R's....no, not 'reading, 'riting and 'rithmetic...ranting, raving and reviewing.  This has been the most ridiculous misadventure of a lifetime, trying to close a short sale with NationStar Bank, in Lewisville, Texas.  I can say unequivocally NationStar is awful!  Let me put it a different way:  NationStar Bank is filled with misanthropes who pretend to be working in the best interest of their clients.  However, the most honest person

in that organization that I have encountered would be the horribly, rude woman in the Executive Office who announced, back in March 2012 that they "would rather foreclose on this house cuz they'd make more money that way."   That was four months after listing the property and, despite that ominous warning, I would never have thought that 18 months later we are all still in the same place.
Offer #12 was just countered and the buyers walked away.  Yes, you read that correctly:  #12.  And the best part of all of this is the ever changing values assigned to this property.   A year and half ago NationStar accepted an offer of $203,000, and of that was paying out about $6,000 to the second lien.  I couldn't get the second lien to agree to acceptance so the buyers went elsewhere after over five months of waiting for resolution.  (Sadly, in a bit of a cruel twist, shortly thereafter the second lien sent the homeowners a notice that they were now willing to extinguish said lien. ) Over the next 9 months I submitted and resubmitted offers to the bank, each right around the $200,000 mark, give or take a few thousand; I actually lost 3 of those offers simply because the negotiator would not respond to my pleas to cancel out a previous offer so I could upload the new one. 
Then, in Oct. 2012 came a moment when I realized NationStar was intent on implementing the plan revealed in that conversation by that Executive Office contact:  they actually countered a $203,000 to $240,000!  They claimed that number was based on a bona fide appraisal performed by a real appraiser and further, the investor on the loan does not allow disputes on appraisals.  Well, that is rich!  Never mind that in the previous year only one property had closed at anything near that number and it was 1151 square feet larger!  Never mind that they purchased the property for exactly $240,000 at the HEIGHT of the market in Oct. 2004. 
Offer #12 was the highest offer to date at $212,000  and they countered at $220,000.   I prepared an in-depth report showing recent comparable properties.  I also prepared a 4 page photo report showing the MLS photos taken 11/11/11 and the photos taken 08/21/13.  The house has been vacant for a year and a half and while the lawn is being mowed there are plenty of other things that are showing neglect.  With all of that staring them in the face they simply reaffirmed their valuation and the buyer said, "Adios!"
I have never had a property listed for anything near as long as this one: previous to this, the highest number of offers written until approval was 4...and I thought THAT was exhausting!  Now it's personal, now it's a challenge and I am awaiting the day they issue an approval letter:  I am also hoping their net will be lower than what they would have realized had they accepted that first offer in January 2012.

If once bitten is twice shy, what's thrice bitten?

When I was young I was terrified of bees and wasps.  I was so worried about getting stung I avoided flowers and made sure not to wear bright colors lest I be mistaken for one!  As I grew into an adult, and one irrational fear after another faded, I hung onto my dislike for those winged warriors until I met my husband. 

A landscape designer appreciates bees as they are co-workers of a sort.  He designs and installs

lovely flowering plants and then sits back and hopes the bees come along and do their thing.  He would regularly catch my overreaction to a bee's nearby buzz and comment in a reassuring tone about how I need not be afraid of their sting. 

As I developed a love of flower gardening, I realized I could not time my deadheading sessions for a "bee-free" period of the day as those did not exist.  So, little by little I became comfortable with the occasional honey bee buzzing by my ear, or the big bumble bee brushing my hand as I reached for a spent bloom.  I would regularly remind myself of James' words as I would venture into a tall butterfly bush, surrounded with bees enjoying my handiwork, and rest assured I need not fear.  Once, I actually inadvertently cupped my hand around a bumblebee early one morning and he simply rolled off my palm and continued napping on the dewy grass. 

A few weeks ago, while deadheading one warm morning, I was not paying attention as I reached into the bush and recoiled back surprised and confused.  Were it not for the remnant of the honeybee sticking out of my finger I might not have figured it out as quickly.  I dropped the garden shears and was muttering as I hurried into the house.  "Seriously?  You stung me?  You killed yourself to sting someone who actually enjoys your presence??"  That's what I was thinking but it probably sounded more like a few expletives to the untrained ear.

A few hours later I noticed the butterfly bush was still marked by blooms past their prime so, with some hesitation,  I picked up my shears and continued my work.  I did notice I was a bit more careful, maybe even fearful, as I worked through the branches, but I convinced myself to soldier on and came out unscathed.  I shared my story with James and we both came away from it saddened by the loss of the little honeybee; I actually felt a twinge of guilt and thought it my fault, in the end.

Days later while doing some quick snipping of the hosta stems, as I reached for a spent flower next to a blooming stalk, I caught sight of a bumble just as he started to sting my finger.  I pulled back quickly enough to receive only a scratch across my knuckle, which still hurt like the dickens for a about 30 seconds.  I decided the hostas looked fine for now and left my shears and headed indoors, content to work from the safety of my office that day. 

Just a few mornings later, strolling through the garden with our pup, Brody, I lackadaisically reached for a long-spent butterfly bush bloom and wondered aloud at just how I could manage to be stung a third time when, in more years than I could remember (I ventured a guess at ten!)  I had worked side-by-side with my previous nemesis.  This time the little sucker managed to deliver a bit more venom than the scratching incident and, as I reached for a Benadryl, I began to rethink what has become a passion:  perhaps the grateful deadheader should just be grateful she wasn't in anaphylactic shock!

Yesterday, as I spent time in the garden, I reflected on these past few unfortunate weeks and realized
it all parallels life:  we get stung by those we love, by those we thought appreciated us, appreciated our work, and we make choices.  We can give up, we can make excuses for the offender, or we can simply continue on the same path, not forgetting,  just storing the knowledge and using it in future decisions.  I could certainly let the pain of those stings deter me, and while protecting myself, it would leave me unhappy and unfulfilled.  I like being out there, and for the most part, I think my presence is appreciated by many I encounter.  And I'll do my best to avoid those who are not in that group. 

Back to the Same Old, Same Old (OR Why are we throwing all this money at public schools?)

Today is "Back to School"  Day across the area.  Children are wearing their squeaky new shoes, pressed trousers or pleated skirts, and starched shirts for the first time in months.  Okay, perhaps that's a bit dated, and they are wearing new kicks, skinny jeans and a Buckle t-shirt.  Nonetheless, thoughts turn to education and all the issues surrounding its current state. 

Selling homes in Akron I can state unequivocally that, save a few neighborhoods, couples with children, or those planning on raising children, vocalize concern over the public school system.  They either avoid the area, or they automatically subtract the cost of private school from the mortgage payment with which they felt comfortable.  Sadly, many parents who actually care about the quality of the education being offered are the same ones who choose to avoid the system.



Recently, this administration's "stimulus" included $100 billion for K-12 education and public school workers.  We were once again told of how our public schools are in need and teachers are underpaid:  the attached graph clearly destroys this claim.  Adjusted for inflation over the last 40 years we can see that, while every other aspect of our daily lives has become more efficient, more economical, the cost of public school education has soared at an astronomical rate, and the results have remained at the same dismal level. 
 

Is there any other company, or service, you can think of that would continue to operate given these results? 
 Do you think that if the cost of your phone service increased by a staggering 275% but you were still only able to dial local numbers from a phone with a cord you would opt for that service over the newest 4G wireless?  If a 2013 automobile posts an unimpressive 12 miles per gallon, has lap belts only, no airbags, and manual windows and door locks, but is priced at a whopping $53,000*  would there be any chance you would drive it, instead of any other car being sold today?  I believe it safe to assume the answers to these questions, so why is it we are accepting of the same lack of performance in our public school system?  And worse yet, why are we made to feel guilty when we demand accountability? 

Our government now has a monopoly on public education and, as in any private sector where a monopoly exists, prices go up, performance is unchanged, and the consumer is stuck with whatever is offered.  We, as parents, as "the customer"  should demand better for our children's future, but we are made to feel this is somehow different than any other aspect of our daily life.  Somehow, when money is thrown at schools and intended results are not achieved, we accept the failure and do nothing to change the underlying structure.  Then we throw more money at the same schools, at the same administrators, at the same programs, and learn the same dismal results are posted.   What's the definition of insanity again? 





*adjusted for inflation the average 1970 auto was $19,250.

Is a preapproval letter worth the paper it's written upon? That depends on the lender!

About three weeks ago I was contacted by a woman who wanted to schedule a showing on a property listed at over $200,000.  Based on their income she felt they could afford that payment.  I asked what her preapproval letter noted as the amount for which they qualified and she explained she hadn't contacted a lender.  I then did as I always do and shared lender contact information, explaining that, in today's market becoming preapproved is a necessary first step in the home buying process. 
 
I had set Sarah up on an automated prospecting system, entering the criteria she requested and did see she was checking out the listings on a regular basis.  She called a week ago;  they had been preapproved for $125,000 (apparently she was more than a little "off" in her estimation)  and she thanked me for directing her to get a definite answer on her status.   She had decided to just speak to someone at her bank and had not contacted the lender I had suggested.  "That's fine, " I continued, "I just like to know my buyers are getting the best deal possible, so if you are comfortable that's all that matters." 
 
As we spoke, I became less certain of the strength of this preapproval letter.  Sarah mentioned she was told by the issuing lender not to let another lender pull her credit as she was just at 620.   I soon realized this woman had more questions than answers and needed some guidance.  I once again suggested she call my "go to" lender.  In the meantime I would call listing agents on the short sales she wanted to see and we would set up some showings.
 
I wish I could say "Imagine my surprise" but this happens so often, to be surprised one would have had to be recently comatose.   Sarah has learned that her credit definitely needs some work.   The lender is looking into reversing some things on her credit with the reporting agency.  If successful on both issues her score will move up by 122 points; if successful on only one her score will move up by only 4 points, which is still not enough for her to be preapproved for a mortgage of any kind.   So why does she have a preapproval letter in hand right now when there is ZERO possibility of being approved??  
 

Perhaps the lender wants to collect a loan application fee and cares not the implications of her actions, nor the lives her cavalier attitude will affect.  Or maybe she's just a really gentle soul who hates to issues any rejection and believes in fairy godmothers and bottled genies and is hoping Sarah will happen upon one of them in time to successfully close on a house.
 
 No matter the excuse this is a reprehensible and widespread practice.  We take a lender at their word and I for one, am deeply disappointed to find the number of those undeserving of that trust to be increasing. 

The Government Does SOMETHING Right!

I am not alone in believing the way to mess up something is to put the government in charge.  Invariably it will be less effective, less efficient, and more expensive.  However, there is one arena in which the government beats out the private sector and that is in short sale management. 

First, I will insert my disclaimer here:  this does NOT mean I have never had issues with the administration of the program.  This simply means, if all things are implemented correctly, and all the guidelines put into place are followed, you will meet with success and that is saying a lot! 

Before anyone in the general public knew what was meant by the term "short sale"  the Office of HUD had a Pre-Foreclosure Sale program in place that is a model for the industry.  The program has been around nearly 20 years and has not varied much from the founding standards. 

The biggest positive was publishing of the guidelines as hard and fast rules not open to interpretation of a negotiator having a bad day.  Another plus is the establishment of the property's value prior  to putting the home on the market, and employing a full appraisal.  In most cases the short sale starts off on a much better foot in HUD'S PFS program:  To begin, the value is based on something more than the opinion of an agent who hasn't sold a home in 10 years. This is a much more accurate number in the majority of cases.

Next, there is no guesswork and the numbers don't change with the moon's phases:  in the first 30 days they will accept 88% of the home's market value as their net, after paying the seller's closing costs, up to date taxes, and commissions.  Up to Day 60 they will accept 86%, from Day 61 and beyond they will accept 84%. Knowing these numbers ahead of time takes the guesswork out of the equation and also keeps agent from wasting time by submitting offers that do not meet the criteria.  (Note: you may be able to get them to accept less than 84% but that is for another day.) 

If you have ever listed a short sale you can understand the frustration of getting a great offer only to have it countered at $20,000 more than the offer they had previously accepted.  That would never happen on in an FHA short sale since the price does not change except to be decreased as discussed
above.

However surprising it remains true:  short sale administration is actually something the government wins on hands down. 

If you are a Homeowner with any questions about selling your property, please do not hesitate to call.

The Grateful Deadheader

Thursday's blog is actually my blog within my blog:  for years I have toyed with the idea of telling of my experiences in the garden and came up with this amusing title.  Now that I am blogging regularly I knew I had to set aside a day each week and this is it. 
For those who don't know me, I am a passionate person:  I am passionate about my marriage, my career, my faith and my country.  Until a few years ago I did not realize another passion in my life, that being perennial gardening.

My husband, James is a landscape designer; that's actually how we met some 18 years ago.  He designed and installed the landscaping at a previous home... in my "former life."  (I am not a believer in reincarnation but I love using that term instead of "previous marriage" just to watch people's facial expressions.)   At that time he spoke of butterflies and hummingbirds and a plan to implement an area to attract them into the design:  I was thrilled, my ex-spouse, not so much.  After years of gentle nudging my garden was planted.  I looked forward to the morning trip outside with the dogs and catching a glimpse of these wonderful little creatures. 
 

Fast forward 13 years and I've now married that wonderful man who first made me see landscaping as more than decoration.  I have come to be involved in my yard in a way I never thought I wanted to be but now know I need.  Each plant, each flower receives some degree of my attention on a regular basis and I am immediately rewarded for my efforts. 

I've often said nothing happens quickly in real estate: even if I sell your house before I've planted the sign in the yard (I'd REALLY like to test this statement!) we will not complete the transaction for weeks.  I can look at an overgrown flower bed in need of attention and after weeding and deadheading I will see an immediate result.  And the removal of those spent blooms (aka deadheading)  will payoff in short order with a resurgence of blooms.  Whereas years ago I thought a flower bloomed once, I now know that, dependent upon the amount of time I put into caring for that plant I may be repaid with prolific blooms throughout the growing season. 

I spend, on average, two hours in our gardens each week.  I rarely go a full day without tending to a plant somewhere in the yard, especially my butterfly bushes.  James removed old tired shrubbery at the dining room windows and replaced them with Buddleia davidii bushes.  (We're just gonna get that out of the way:  that's the only scientific name I have committed to memory so you need not fear I'll be throwing anymore of those around, LOL.)   When they are in bloom we are treated to visits from these winged marvels throughout our dinners, and occasionally even hummingbirds collect nectar from the flowers.

I believe there is another side to gardening which has to do with control:  I can prune a shrub, I can deadhead a bush, and I am controlling its destiny as such.  When a plant struggles in one corner of the garden I can recognize its need for more light and relocate it to the center of a bed, and almost overnight watch it transform.  Ah, if only more of life were that way, I muse; if whenever I knew how to make a difference I could.  If only I could receive the same return on an investment of time as I do in countless hours of gazing at these beautiful surrounding.  If only...and then I stop, grateful for all this deadheader has already been gifted. 

RE/MAX Crossroads Rocks!

"You're in business for yourself, not by yourself!"  Wow!  What a terrific concept! 

Joining RE/MAX Crossroads brought about a mix of emotions, not the least being intimidation.  I was jumping into an environment of success:  These agents are top performers and they demand excellence, from themselves and those around them.

When you work with agents of this caliber, you see positive results. 
As a REALTOR we are held to a Code of Ethics which, to me, comes down to one question: "Is this in the best interest of your client?"   Making the move to Crossroads was clearly a big plus for my clients as this brokerage is of a different caliber than any other.   While others speak of "culture", here they live a culture of success! 

Dennis and Mary Lou Steed have built a brokerage that feels like a family but the type of family that expects you to be an active, participating member.  It's not enough to show up for Sunday dinner here... bring something to the table!  That translates into success for every transaction in which you play a role:, and quite simply, that means houses are sold.
  
RE/MAX sells more real estate than any other company in the world... yes, the world!  But did you know RE/MAX does not have the most agents?  Do you want to work with an agent who is a member of a company with lots of agents, but only sells a few houses on average per year? Of course not!  A RE/MAX Crossroads agent sells, on average, 25.2 houses per year. (see the graphic)

RE/MAX Crossroads is one of the most successful brokerages in the country, ranking as 20th!  They were also recognized this year, as one of only 17 brokerages that increased the number of its sales agents, closed transactions and per-person productivity in the prior 10 years, which of course included one of the most difficult economic times in history.
 Industry wide it is interesting to note that, of the top 50 brokerages in the U.S. 40 are RE/MAX franchises:  Success comes when you focus on customer service and back up your promises with performance! 

"40 Years of Outstanding Agents & Outstanding Results!" 

I am Catholic

I am Catholic. Roman Catholic. Born and raised Catholic. Baptized Catholic. Practicing Catholic. And I intend to be a Cradle to the Grave Catholic. (Not in a hurry to fulfill the last part, however.) I am NOT a Twice a Year Catholic. Nor a

Cafeteria Catholic. Nor am I a Baptized-but-no-longer-Practicing Catholic. And today, for the first time in quite some time I announce these things and say “I AM PROUD TO BE CATHOLIC.”  In the business world one is told to avoid the topics of religion and politics, and so I complied. I rarely discuss my views, understanding that I run a higher chance of alienating versus aligning when I venture down that road.  So, I have sat quietly by and listened to the constant attacks on my Church, and never thought to defend.
 From an early age I remember my brothers and I being the only kids in the neighborhood who weren’t “public schoolers”.  I remember overhearing adults discuss how greedy my Church was, how we were all about the money.  Thus, while it was hard to hide while wearing the uniform, once out of school I never went out of way to discuss my Catholicism. Why is the Church such a huge target? Even the negative portrayal of its membership as “twice-a-years” and “cafeterias” is an accepted slam that can be discussed in any area without reprisal. Why is that? Is there any other religious affiliation that allows itself to be regularly attacked while remaining silent?  Today I have made the decision to stand up and defend my Catholic Church.. yes MY Church, thanks to my pastor, Fr. Valencheck, who reminded me that I have every reason to be proud about being Catholic .

The Catholic Church is THE NUMBER ONE charitable organization in the world! Wow!  I spent my life feeling ashamed of the wealth associated with my religious affiliation and yet I now realize that the money I put in that collection basket every week is NOT being used to restore the gilding on the altar. Hospitals: 562 Catholic hospitals treated 85,283,351 patients. Other Health Care Centers: 373 centers treated 6,703,167 patients.  Provided Services that Build Strong Communities to 3,646,222 people. Provided Food Services to 6,287,891 people. Provided Services that Strengthen Families to 1,071,463 people. Provided Housing Related Services to 598,953 people. Provided Other Basic Needs Services to 1,741,844 people. Provided Disaster Services to 331,727 people.
So, if you’re a Catholic reading this, perhaps these facts will make you realize your Church is something to be of which you should be proud.   And by the way, you’re not alone… There are 68,115,001 Catholics in the United States1 (22% of the U.S. population), and 1 billion Catholics worldwide. And each year we grow with Infant Baptisms: 887,145 Adult Baptisms: 42,629 and those received into Full Communion: 81,775.  And if you’re not Catholic, I hope these numbers simply give you reason to pause, and perhaps ask the same question I did… why? Why is an organization deemed the most generous in the world only reported to the general public in the most disparaging terms possible?

Some REALTORS say the darndest things!

I really can't call it a hobby, or even a pastime, however, I tend to regularly post comments on Facebook regarding some of the silliest things I find in other agents' listings.  Note, as I typed "silly" a little alarm went off inside my head because it's actually not really lighthearted amusement:   I am certain the sloppiness translates into lost opportunities.  However, we will set that aside for another blog, and focus on the humorous side of these bloopers.

Most buyers are familiar with a style element found in many homes called "wainscoting."  Thus, when I review a listing with no interior photos to give a clue, and read that the home includes "Wayne's coating" my mind wanders: perhaps the seller's son, who lives in the basement, and has a friend named Garth, may have painted the walls in some unique style.  

Some words are used to the point of ad nauseam:  "stunning" pops to mind.   The word means "Causing or capable of causing emotional shock or loss of consciousness."  Agents would be well-advised to remember this when describing a fireplace, or brick patio.  Otherwise, they should provide some smelling salts along with those cute blue booties at the front door. 

On the other side of the coin, there are agents who really do try very hard to use unique terms in their copy, yet there is a reason one doesn't describe a backyard as "palatial."  First, kudos to this agent for spelling the word correctly, however, unless there is a moat and drawbridge off the deck, I would consult a thesaurus next time.

Sometimes the old adage "If you don't have anything nice to say, say nothing at all" can be applied to real estate advertising.  When describing the property do not use "semi-private" even if that is what pops to mind.  Either the yard is "private"  or it's a yard.... lovely, landscaped,  or large.  However, when you add a qualifier such as "semi" that is the word that sticks in the buyer's mind:  "Hmm, so if it's only semi-private; I wonder if the neighbor's deck is just 10 feet from theirs" or " SEMI-private...I really don't want to be on top of the neighbors so...NEXT!"

A picture speaks a thousand words and the twenty-five photos posted on the MLS will, in many cases, be what makes that buyer pick up the phone.  However, one should not discount the power of the thousand characters afforded to its description:  words really can hurt...and if they don't necessarily crack a rib, they certainly can tickle a few.