Today I decided to preview two homes that came on the market within the past 24 hours.  My trip was to be about 26 miles of travel.  At today’s gas prices I looked forward to spending quite a bit of money and a moderate amount of time.

Decided to preview a home in Clearview Heights (in Stafford County) first and then travel over to Fox Point in Spotsylvania County.  The home in Stafford County was listed by a firm whose office is in Annandale and the one in Spotsylvania is listed by a local company.

The one in Stafford county said that access could be gained by “Lockbox-Frnt Dr,Lockbox-Supra,Vacant” while the one in Spotsylvania showed I could get in by “Lockbox-Supra,Show Anytime,Sign on Property,Vacant.”

Common to both was “Lockbox-Supra” as you can read.  However, when I went to the home in Clearview I learned quickly that I could not access the home; the lockbox was the type where you had to place a keypad in a recessed area to retrieve the key.  The one In Fox Point worked fine with my Palm device through an electronic beam.  Needless to say I was frustrated at the first location since I could not get in since I did not bring along my Display Key.

After entering the second home I found that there was no access the “wing” (appears to be a finished garage) at the right side of the home; it was not accessible from the main home.  The key in the lockbox would not open the lock at the door of the wing.  Searched the home for a key that might open it but none was found!

Frustrating?  To say the least!  We need to show that access is by an electronic lockbox (one that provides access through a beam).  There is an option for that type and we need to use it.  By the way, I am assuming that is the proper description for the “blue” lockboxes that most of us in FAAR use.

Right now I am going to assume that any homes that are listed by a NVAR office do not have the “blue” lockbox.  We are in an area where the local association issues the blue lockboxes to its Realtor® members.  Appears to me that people who list home in our area would comply with the local custom if they wish it to be shown by all of the local agents.

Let’s get to the second home; the one in Fox Point.

If you have a listing that your fellow Realtors® will not be able to preview or show completely then provide comments that are appropriate for the situation.  Is there a key to the shed available in the home?  Is there a key available to the wing that is under separate lock?  Where is that key?

What are your thoughts on these issues?  Am I being too picky?

After hours of home searching, your buyers have finally made a decision.  It’s the home of their dreams, the price is perfect and they see the value. They are excited about the prospect of buying their new home.  As a seasoned Agent you prepare your contract as air tight as you can possibly make it.  You assure every page is initialed, every clause examined carefully, each paragraph closely scrutinized.  You and your qualified, pre-approved buyer have done your homework and you are certain all is right with the offer.   You send it off to the Listing Agent with a hope and prayer and wait patiently, maybe for a couple of weeks, albeit but you wait patiently. 

But wait!  What’s this Bank Contract Addendum?  What does it do to your contract?  They are accepting your contract and all the conditions set out in it. Or are they?  At this point you and your buyer read the Contract Addendum.  As you negotiate each paragraph you and your buyer become more and more concerned about the terms to which the Bank wishes you to agree.

The REO addenda often have the following terms: 

 AS IS, WHERE IS – including:  Property condition, personal property in house, debris in yard, environmental hazards and tenant/prior owner holdovers

Inspections:  Buyer may have to pay $250 to de-winterize the house for inspection purposes.  Inspections are for INFORMATIONAL PURPOSES ONLY.  Repairs by seller, if the seller agrees, will have a cap.  The seller may choose to provide a credit to the buyer – please review that very carefully.  Inspections, including the pre-closing walk through must be completed by the number of days specified in the contract

Title Issues:  Normally, title is conveyed by a SPECIAL WARRANTY DEED which means there is no recourse against the seller if there are title issues pre-dating the seller’s ownership. If the seller is paying for the title insurance they are usually preparing a title policy based on a very limited title search.  Which means any unreleased judgments, liens, trusts or major title issues are not revealed and could pose a threat to the new owner if title insurance is not in place.

Commission:  The commission is often based on NET purchase price.   Any closing costs subsidies, credits and/or repairs are backed out of the sales price and the new amount is used as the basis for the commission. 

What is your responsibility when it comes to protecting your buyer from the terms in the Bank addendum?  First, you need to remember that you can make changes to the addendum.  While the banks frown upon a marked up addendum, feel free to use blank space in the addendum.  The listing agent must submit this to the bank. Also, you should read each paragraph through carefully.  These addenda are ever adapting creatures and you need to be sure you know what your buyer is signing.  It never hurts to be extra careful.  This is probably the largest purchase of your buyer’s life.  As such, they should feel comfortable with the documents, with the closing company and with the fact that closing may take longer than a traditional transaction.  Buckle Up!  Receiving the bank addendum is just the beginning of what may be a very exciting ride.

Last week went to a settlement on a property in Spotsylvania County; the home was a bank owned property that came about through foreclosure.

Seller selected the settlement agency for their side and we selected a local attorney to represent the buyer.  At the settlement table we were told that the bank had dictated the commission to be paid.  I was not listening as I should have been!

After the commission check was written to my broker, my astute broker/owner discovered that my commission was less than normal and asked if I had agreed to a different figure.  After I responded “No” the light went on.

We decided to hold off on depositing the commission check and my cashing my check which had already been written.  Upon my return to my office I called the broker/owner of the listing brokerage.  Initially, I was told that he was busy and could not come to the phone.  When asked why I was calling the response was “Possible arbitration.”  All of a sudden he became available and we spoke.  In all honesty he was very professional in the entire discussion and I gained a great deal of respect for him.  He was, he said, overwhelmed by the volume of work inherited with bank sales.

When I explained the situation to him (our brokerage had received less than the commission offered in the blanket unilateral offer of cooperation and compensation to brokers in the Metropolitan Regional Information Services (MRIS)) he was quick to comment “That is wrong.”

In a matter of seconds he suggested that the situation be remedied immediately.  He would call his bookkeeper and have a check issued to cover the difference.  That was agreeable to me and we talked a few minutes longer before the call ended.

This morning I received a call from the bookkeeper telling me that she had been contacted by the broker/owner.  She confirmed the amount owed us and asked me to validate the address of my brokerage.  She then stated that the check would be sent out today.

I post this because I want you to be careful when you go to settlement.  Examine the HUD-1 carefully.  Be sure that the commission paid your firm is in conformance with that shown in the MLS listing.

The Lost Art?

In recent weeks I have had several conversations about how REALTORS communicate with each other and their clients and customers. One such conversation actually turned sour because of the difference in opinions. First, I will admit that I am part of Gen Y. We are known for our lack of communication skills. We have now reduced the English language to a few letters thrown together (LOL). And, vowels are no longer needed, thy r waste of valuable space. Gen Y expects the general public to keep up with us and communicate in an efficient way. I love texting and love, even more, the avenues of instant communication that have become, for most of us, a way of life. But, where has the art of communication gone? Have we truly lost the ability to hold someone’s attention for a long period of time? Are we so caught up in the speed of the business world that we have forgotten to take time to give that personal touch? I think we have. I also think this is sad.

When I was little my mother would always made me write Thank You notes to people who had come to visit, or given me a present, or had helped me. I used to hate sitting down and thinking of something creative to say. Most of the time the note went like this:

Dear _________, Thank you for the ________. I will use it every time I _________. It is the perfect gift for me. Love, Sarah.

But, as I’ve gotten older I have begun to appreciate this dying artform. As mail increasingly becomes bills, catalogues, and junk mail, it is exciting to actually open the mailbox and take out a letter or a card. Does this mean more to me than getting a quick email? Well, yes, it does. A person has taken the time to pick out a card, write a note, address it, figure out how much postage is today, and put it in their mailbox. The fact that they took time out of their busy day so I could have something other than junk and bills in my mailbox is precious to me. Remember a time when we used to keep old letters in a shoebox so we could look back through them and remember the feelings we had the first time we opened it? I miss that feeling. Scrolling through my email folders just isn’t the same.

Can you hear me now?

I also remember when a phone call helped make a connection between two people. Now we have transactions where we don’t know the sound of the other REALTOR’s voice, much less what they look like. It is much easier to be snarky to each other when we can hide behind a computer. There is actually a national survery that asked Home Sellers and Buyers why they fired their agent. One of the top reasons was that the agent did not communicate with them. I don’t think that all these “fired” agents just got the paperwork signed and never contacted their client again. My conclusion is that the agent did not communicate the way their client wanted them to. In the past 3 weeks I have gotten 5 phone calls from unhappy Sellers and Buyers wanting to talk about my services and when I ask them why they are unhappy, they have all said ‘lack of communication.’ When I pressed further they have all said, ‘my agent only emails me. I never get a phone call and when I call them, I talk to their voicemail.’ Seems to me there is a huge communication problem.

Old School

So, I am going back to the basics. I am going “old school!” I am putting everyone on alert: I will be calling you for feedback, I will also be faxing you for feedback, and I will email you for feedback. You can choose how you want to get it back to me. I will also be calling, faxing, or emailing you with constructive feedback on your listings. I will send you a note when a contract has been accepted and a deal has closed. I will call you when there is a problem or just to make sure you know that the lines of communication are open. I will make every effort to meet you in person and shake your hand. And, you better believe, I am changing the way I communicate with my own clients and customers.

I want there to be a personal connection in this business. I don’t want to lose the art of communication. I don’t want to be replaced by the internet.