Gary White FlexIt Realty~Real Estate & Updates, Grand Rapids & West Michigan

In the Michigan market HUD has just made a change in who represents them.  This change is going to take some time before the transfer of information to a new website is going to be available.  I just received a buyer call today on a HUD home.  They want to pay cash.....and no way can the new provider give me any information on the home.  We are a registered broker with HUD we have all our information up to date yet it will be a month before I can access the property.

The potential buyers are in disbelief.  I had already cautioned them that the process is not a day or two but a month before even accessing the property is a bit much.

The same property has an ad running in a local newspaper from a private party on the HUD home.  When I called he said if you have $65,000.00 we can close in a week!  So I started asking a few questions about the property.  He told me he owns the property!  I am standing in front of the property with the HUD tag on the window.  So I said to him, if I have $65,000.00 in cash we can close in a week?  Yes, you can.  Will you have the title work done and all the HUD documents released by then.  The man responds to me, "Oh we don't need the HUD documents, I'll quick buy the property and quit claim deed it over to you"! 

Now he has my interest.  I just had talked with the HUD legal firm and they told me we could not find any information on the property.  No some guy on a cell phone tells me he can sell me the property in a week with a quit claim deed after he buys it from HUD?  I press for his name, I only am able to get a first name.  I ask if he is a Realtor, well kind of he tells me.  " I am an investor that sells for "cash only" that is why the deals are so good".  No loans no  paperwork just a bill of sale and a quit claim deed.

So I press more and he says look go look at the home if you are interest bring me cash and I will give you a deed that how I do this....no other way!

This has all the markings of a big scam.  Could it be true yes it could be.  Would I do this?  No Way.  Will I investigate this guy further, probably a bit.  The one thing I am doing for sure is pressing HUD to get me information on this home.  Will I let the buyers that contacted do anything until I have more answers not unless they do it without me.

So here we sit.  I have buyers with cash and a home with an estimated value of around $120,000. and not way to write a proposal to HUD for 4 weeks. 

Beware of how you deal with these properties.  There is no warranty that comes with them.  I have a home warranty company that is checking to see if we can put a 1 year home warranty on it for the buyers.

You can lose your hard earned money if you are not careful.  The key is dealing with someone that understands how HUD works and handles your paperwork and maintains communication with you during the process.

Clients that have had their homes on the market a long time need a marketing plan change.  Exactly what type of change is based on the market itself.  More homes coming to the market create new competition.  So the new listings must be evaluated to compare to the existing listing.  As homes expire this also must be evaluated for price adjustments.  Sellers must be vigilant in maintaining market position with their listing.  Agents also must keep sellers informed as the market changes.

One thing to remember, your competition may not be just in your neighborhood.  Buyers may not have a compelling reason for schools or your neighborhood.  What they may be looking for is features and benefits of a home like yours.  So make sure you know the competition in a wider area than just your neighborhood.  I listed a home and the seller told me there were only two homes comparable to his in the area.  Our local MLS has over 10,000 homes listed and there were over 70 like his home with a price range of $30,000 lower to $10,000 higher.  We looked at locations to further define the list price.  But the Seller was shocked to find he had that many homes in his price range with very similar features.

One thing about expired homes, you know what price the home won't sell at!  If your home does not sell in the first 30 days you have a 97% chance it will not sell.  Now if that does not give you indigestion here is another tid bit.  If you lower your price you will probably have to lower it again! 

Homes that are priced correctly for the market sell within 98% of the listing price.  Depending on location some homes get multiple offers when priced correctly for the market.  In order to sell for "TOP Dollar" you have to offer a property in top condition.  You would not pay top dollar for a property if it was not in top condition.

It takes more than a for sale sign to "spell relief"  it takes effort, marketing and co-ordination to get a sale in this market.  Relief is when your home sells and you are moving to your next home.  If you are not having any luck find yourself a Realtor with training and experience to help you reach your goals. 

I hope this helps you spell relief!

We have all had times when we wondered which side of the equation is the lender.  I have lenders that I work with on a regular basis.  I send them clients because I know they are going to work in the best interest of the client.  Sometimes clients already have lenders that they have history with, which is fine with me.  I always prefer the buyer have their financing in order before they discuss a purchase with me.  If they do not I always ask if they have used someone in the past.  I get a variety of answers.  If they do not seem to be very committed to anyone I recommend two for them to choose from.  I emphasize that I do not get any income from their financing so the choice is theirs and this is a service I provide clients that have not established a lender.  I know I could maintain my brokerage license for mortgages and earn extra income but I have done that and find for me the extra income is not worth the distraction from my normal business.

I have found that the lenders that I do not deal with on a regular basis are not responsive to any of my questions even when I have a buyer release letter.  They do not seem to answer time frame questions to set closing dates, getting paperwork to closing agents for HUD 1 statements are also a problem.  I stick with people I know.

I have lenders tell me they do not get the proper paperwork from the real estate agents either.  I can hardly imagine a more closely tied relationship than the agent and the lender for transaction completion.  Today I have made two call without response, yesterday I made another without response.  I have a closing on Friday that I am quite sure is in doubt.  The buyer is frustrated because he is no longer getting updates or status reports from the lender "he" selected.  The process is so smooth when you have the right lender and the right agent.  Have either wrong and it is "all" wrong!  My client is very happy with me....I have my usual lenders in the wing and we just sent the buyer to one of them for a loan application to make sure, should this go south for some reason, the buyer is still covered and able to complete his purchase.

Buyers and sellers have to choose their lenders and Real Estate Agents with great care.  None of us are the same even though we may have the same title, license and professions.

When sellers ask me how I am going to market their home, no problem.  When sellers ask me about their neighborhood, I qualify the question to home sales prices, current listings and expired listings.  They already know about the neighborhood they live there.

Sellers can ask about my commission, not how I compare to others, I don't know and frankly that is not related to my expenses or marketing costs.  Sellers can as if I will hold open houses.  I always ask if they would like an open house.  You would be surprised with the answers your get.  They can ask how will my home be shown.  I always say by appointment "only".  They can ask about the yard sign and it's placement.  They can ask about my pets, family, education and so on.

I change expressions immediately when a seller tells me who we can and can not sell too!  I give them a little lesson in law and then inform them I will not be able to represent them if they persist in this direction.  That usually does the trick....especially when I mention it being a Federal law.

I can not comment on other agents that the seller may be interviewing, I do not know how they work, what they have to offer this seller.  I can say that I know or do not know them.  My lack of commentary in this regard is basically ethics.  Each agent represents clients differently and each situation and client is unique.  I can only comfortably comment on how I will provide service to the client.

I always answer clients on my success rate of selling.  In fact, I carry (authorized use) referral letters from past clients in my listing presentation.  I feel I have been personally blessed with the clients I have represented and the success I have been able to maintain.

I do not get involved with family arguments....I have had family squabbles erupt during listing presentations and I interject that I did not bring my striped shirt to referee!  They usually laugh and get the point.  Then I take the question that caused the confrontation and cover issues for both of them so they feel better.  (this is if it is real estate related, kids, money, church and politics are off limits!)

My allowable issues are pretty broad, but sellers are not allowed to cross the lines on who they are willing to sell to for any reason.  It could be they don't like kids.  I have been told, "if the buyer has children forget it".  The seller said they did not want to do that to their neighbors.  I have had to tell them they are not in a restricted community and would have to sell if the buyers had financing.  The answer is usually, "really, well OK".  I am always amazed when these comments come up.  You would think this has been so publicized that everyone would know by now!  Not the case.  Every year I have one seller that will use poor judgement and say things they should not.  I have not lost a listing because of this.  Each time with a little counseling they understand and change for the better.  I make sure my sellers maintain their focus on selling their home and the who, why and so forth are left behind.  Most sellers really appreciate the information and others put up with the responsibilities of having to do the right thing. 

It seems we pretend to be helpful, we pretend to market, we pretend to care and really it is all about the commission!  Or so many sellers think.  We do not do enough to educate sellers on the efforts it takes to make sure we know the market comparisons of their home versus competitive homes in the market place.  We do more than look at the MLS, we do more than look at the expired listings we do more than look at solds, we do more.

Most sellers do not know how long it has taken to put together our marketing plan.  I use a 55 point marketing plan.  I am sure others use even more.  I think my plan is pretty comprehensive.  I am sure sellers do not think about the costs we pay for the advertising and media methods we use.  They do not know we have taken the time to make sure their home is exposed to more buyers because we have established media methods.  I am sure most seller's do not know the additional education we have earned to increase our knowledge and representation skills that improve their chances of selling for a higher price.

I also am equally sure seller's have no idea how much money we have spent in technology efforts to increase exposure on the Internet.  Do they care?  Yes they actually do when their home does not sell.  Do sellers think all realtor's offer petty much the same options, features and benefits?  Yes they do, unless you take the time to let them know how you are different.  I use a Power-Point presentation.  It has 60 slides and I go over my education, background, family, company, experience, market, and marketing plan, then my price right to sell comparisons.  This is pretty impressive and I get a lot of complements for making the process clear and concise.  But did they understand that the photos, wording, placement of each slide took hours to create and longer to finalize into what they witnessed?  No probably not.  Is it effective?  Yes for me it is. 

Will most agents take the time to explain their work and create a lasting impression?  I just received a call tonight from a former supplier of a business I owned 20 years ago.  She and her husband have been trying to sell their home for over a year.  No showings, 3 agents later and still no showings.  They are located 2 hours from my market area.  They said you can not do any worse than what we have already had!  Wow, was I just happy to hear that!  My questions starting coming at them like bullets from a machine gun.  They answered everyone and were waiting for more.  They are willing sellers, they even are willing to price whatever I suggest, if I will take the listing!  I looked up the home on line to see the current marketing effort.  It does not look bad.  The last straw came when agent #3 told the sellers they were going to have the office agents tour the home to stimulate interest.  Nobody showed!  They said we have not had one showing and the agent can not even get his office to show-up!  The listing is ready to expire...and do you think they are going to re-list?  NOPE, NEVER in      _ _ ll was the exact words.

So I am the last resort, the guy who can't do any worse!  They are right, I can't do any worse, in fact all I can do is better!  I will sell their house.  How?  Simple they have not had a marketing plan or program.  I asked about the marketing plan they were speechless.  I asked about media, a few newspaper ads.  I asked about open houses....3 one with each agent and nobody showed up.  They had forgotten that I was in real estate until my wife and the sellers wife were involved in their quarterly phone call and the frustration of the lack of showings and offers came up.  My wife said Gary is closing another sale why isn't your home selling....and it all started from there.  Then I thought "Will the "Real" Realtor Please Stand UP!  I am happy and honored to have the opportunity to sell their home.  I just wished we did a better job explaining our career investments to create the sale.  I also wished we thought through the impression we leave on sellers when nothing happens.  The lack of communication and market adjustments for the changing conditions have created a bad impression with these sellers. unfortunately I understand exactly why they feel this way.  All I can do it what I do to change this situation.  But, we can do better with our efforts to leave good impressions and results with a bit more effort.  Maybe then we won't hear, "you can't do any worse than the last guy"!

I have been involved in having Senior's as seller's.  This takes some special care.  Normally I have the whole family involved.  They come to meet the Realtor that will be selling Mom & Dad's home if both parents are still living.  Usually it's Mom's home that I am selling.  Regardless...this type of sale requires some extreme care.  I find that it is helpful to have family approval of what I propose as the marketing plan.  If the family is out of town I always ask if we should call and discuss the selling process with any of the children.  This brings all types of comments....some not printable especially if they are independent and are determined to do the sale on their own.  If the family has been involved then they will be involved in the sale initially too.  I find that if they have not been very close then they will usually not be involved in the sale.

I take time and make sure that all aspects of the listing contract, sell price and listing period are understood and highlighted with a highlighter.  I make sure to inform any agent that is going to show the home of the importance of lights being turned off and the locking of the doors.  My elderly clients are very appreciative because of living on a fixed income.  We do not look at a light or security of a locked or unlocked door in the same way they view this issue.

I go over the showing procedures and preparations for showing the home.  I also make sure to emphasize that showings will be by appointment only.  Most of these clients have lived in their homes over 25 years and some as many as 40 - 50 years!  They will have items that are very valuable to them....and have special meaning.  I recommend that these items are put away so nothing happens to them.  It takes more patience, more understanding and better communication skills to instill confidence that you will do the right things for them.  The rewards are unbelievable.  The stories you hear are heart warming.  The appreciation for protecting them is also gratifying.  You also get the family as clients as a bonus.  The family will pass your card out to all their friends that have parents in the same spot.  One you establish your creditability your the "Senior Realtor".  Your client also will make sure all their church friends know who you are too! 

In most cases the family does not want to be involved in the day to day issues of the sale.  They want to know the estimated sell price, how long and where the parent is thinking of moving.  Most of the time they will be moving in with one of the children or assisted living.  The family will also want to be informed of any offers.  One key issue is to get an authorization letter from the seller to allow you to share this information with family.  If you do not have a letter on file for the sharing of the information you can not share under your confidentiality responsibilities to the seller.  When I discuss the letter with the seller I show the written clause that restricts me from discussing any information without written consent.  This lets them know up front they can trust me.

I also have the children involved when we find a new residence.  If they do not move in with family or assisted living it is usually a condo.  I always ask the same questions as I would any buyer, but with particular attention to layout.  Stairs are just not in the cards.   Looking for a facility that has an elevator or ground floor with minimal walking distances for mail, newspaper and access to the parking lot and pickup areas is crucial.  We take issues like this for granted but our older clients are very aware of walking distances, and really appreciate our knowledge and efforts to keep them safe.  I also look at the need for medical care and how they are going to get back and forth to their physician.  Again this is a primary concern if they are no longer driving.

Our seniors can be a wonderful client opportunity if you are willing to take the time and care to enjoy the process.  Your thoughts and comments are always welcome.

One of the key questions always asked by sellers is do you use brochures?  I happen to use them, other Realtors have a theory to not use them.  I find brochures add interest on the buyers part and make the sellers feel like you are doing the minimum expected.  I add a twist to my usage of brochures.  I put a few key photos, I use a toll free 800# for buyers to listen to a audio tour and find out the asking price, I direct buyers to my website for a virtual tour.  I only put a price range on my brochures.  Brochures are a key part of my marketing plan but not the only part of the plan.

My brochures are laser printed, ink-jet brochures turn into water colors!

Brochures yes, Key, yes the only method? NO.  I use a wide range of methods to market my clients properties.  Realtors know their markets and use marketing methods to insure their clients are noticed by buyers.

My goal is to create interest in any property I represent.  I find the brochure is one way to create interest.  Layout of the brochure is key, photos, brief descriptions of the primary property features, contact numbers, website virtual tour locations generate calls from buyers.  Your brochure can create interest too.  Good luck with your marketing methods.

I was recently informed of a new scam that is being used.  It may be in your area too!  The targets seem to be people selling without Realtors.  The property being sold is usually vacant.  In this case a potential buyer approaches a "FSBO's and pretends to have money.  The funds are from the estate of his late father.  He currently has $18,000.00 of which he is willing to give a portion to the seller as a down payment.

Here comes the hook!!!!!  He has been renting and with the estate money he is going to make his life better for him and his family by buying their first home!  He had given notice to his landlord (from another town) and has to be out.  So the scam artist tells the seller he needs to move-in "right away".....he will get the balance of the money from the estate to pay cash for the home is a week!

Now comes the switch in plans....the $18,000.00 that's is tied up in red tape but should be released within a day.  Now he puts more pressure on the seller saying he has to move in immediately or buy something else, his family is being forced to move because the has a new tenant ready to move-in.  The potential victim in this case was a licensed Realtor who was selling the property and "did not" give access to the property!  Most FSBO's would have given in for a potential cash sale and would right now be trying to figure out how to get somebody out of their property who has paid them nothing!

Most FSBO's end up using a Realtor to sell their homes.  This is just another danger that lurks for the uninformed and unlicensed For-Sale-by-owner.  This just happened this past week and was reported to our local MLS.  I do not know if this scam has spread to other areas of the country yet but it is worth getting the word out so our future clients do not get caught.  Share with us other scams that are happening in your area....chances are they will be in ours in the near future.

Family Safety, we sometimes forget how quickly events can change lives.  Holiday events, family reunions, picnics and vehicle travel are all great fun but we have to be on guard for that child or adult that forgets to exercise caution.  We viewed an accident that could have been avoided.  It was created with a momentary distraction.  Cars were not going fast but one was stopped the others were traveling in the 45 mph range.  This changed three families holiday weekend in a split second.

Have all the fun you can have enjoy meeting up with old friends or just taking time with your family but be safe and exercise some care.  Remember to use car seats and buckle-up.  Big brother will be issuing tickets on the "click it or Ticket" law.  The statistics proved  seat belts save lives anyway.  The holiday you save my be your own!

It looks like it will be Michigan weather again too.  Spring is one of the best seasons for me.  Everything comes alive after the cold weather, including our grill.

Enjoy....

Gary White

Since you asked!  Most sellers do what they think is going to help them sell.  Some do nothing and expect their home to sell.  Others ask for advice...these are the ones that sell, most of the time.  Why because the advice from your Realtor is based on market surveys of what buyers expect.  They are given all kinds of information specific to staging and selling homes.  Some of us take it a bit further and don't wait for you to ask.  For example I have a showing guide that helps you evaluate your home before we open it up to the public.  My guide outlines the key issues that will make your home more appealing to buyers.

You can help your home sell.  You can not expect your Realtor to come to your home the day of a showing and do dishes or run the dish washer.  I have done that when I knew in-advance of a family situation that was going to make it difficult for the seller to get everything done.  Like one was in the hospital.  I hired a cleaning sevice and had the placed cleaned top to bottom.  When the seller came home I got a big hug.....the open house went well too!

You can deal with closets, I use the old phase, pack, stack and store.  This tells you to open up your closets, make them look larger.  So pack away winter clothes or summer depending on the season, stack to make more space, label so you know what's in the boxes and store in attic or off site for a month while you market your home.  Remove large furniture that makes rooms look small.  I do not expect you to change your lifestyle, just adjust to sell.

This is just a few hints to help you sell.  You can help your home sell.

Drop me an email with any questions or comments.

Sincerely,
Gary White
Associate Broker