Posts belonging to Category Business Practices

April is Fair Housing Month—a reminder of the rights of home buyers and tenants, that no matter their race, color, religion, national origin, sex, disability, familial status, or sexual orientation they have the right to buy and rent without discrimination. One of the most important aspects of fair housing that we as REALTORS ® should take away from this month is the importance for real estate agents to help enforce the rights of our customers, inform sellers and landlords that they have to abide by those same requirements, and protect the citizens at large throughout the year and in every transaction.

If you see someone violating those rights—speak up, let them know—they may not be aware. Tell a seller that is against the law to tell them the race of the buyer in order for them to accept a contact, or a landlord that a single mom with two children has to be evaluated on the same basis as a male with no kids. The federal Fair Housing Act prevents us from refusing to sell or rent housing; refusing to negotiate for housing; falsely denying a property is available for inspection, sale or lease; or denying anyone access or membership in a facility or service.

Violation of fair housing laws comes with a steep penalty that pertains to all, not just licensed real estate agents. Violators may be suite for punitive and/or actual damages; the Attorney General may file suit in federal District Court and, if they believe there is a pattern of discrimination, $16,000 to $65,000 in civil penalties may be charged.

Be mindful of the rights of others. To commemorate Fair Housing Month, the Tallahassee Board of REALTORS® is hosting NAR’s popular “At Home with Diversity” course on Thursday, April 25, 9 a.m. to 5 p.m. The course is designed to provide practical skills and tools to increase the REALTOR®’s effectiveness in working with all social groups, by helping participants to develop cross-cultural communication skills and apply and practice fair housing laws.

Tiffany Hamilton
Armor Realty of Tallahassee
Chairman, Equal Opportunity Committee

There are many opportunities for homebuyers to purchase foreclosed properties in this market, but as REALTORS® we need to make sure you know the rules associated with submitting offers on certain ones.

For instance, not all banks or asset management entities allow the use of our standard TBR Contract. Foreclosures which are owned by HUD are purchased through a bidding system housed on their website at www.HUDHomestore.com and you must work for a HUD-approved Broker with a NAID number in order to even submit an offer on behalf of your client. Once and if your bid has been accepted, your offer must be submitted on their Sales Contract, along with additional documentation based upon the type of buyer you are dealing with. Additionally, it may take up to a week to obtain a response on your offer and if it doesn’t meet their “net” goal, you may be required to resubmit your bid. Needless to say, if your broker is not HUD-approved, there are many options whereby you can cooperate with another broker who is registered with HUD; however, it is just good business in this market to obtain your NAID so that your buyers have an opportunity to work with YOU on their purchase.

After a recent exchange with another REALTOR® concerning costs associated with an extension for a HUD foreclosure, it is important to understand that not all foreclosures abide by our standard contract processes. HUD is not the only agency who is particular in terms of the process of their foreclosure sales; Bank of America, Fannie Mae, Freddie Mac, and many other lenders all have specific addendums which must be submitted in place of or included with the TBR Contract. These mandatory addenda could possibly modify time periods permitted for inspections, amend clauses relating to Appraisal and Property Condition guarantees, and preset escrow and repair allowances for WDO and other potential lender-required fixes. Additionally, many lenders now utilize an upload bidding process and in the case of multiple offer situations, they simply take highest and best offer, which is something our buyers should be informed of so that they do not assume that a full-price offer guarantees contract acceptance. To protect your buyer’s escrow deposit, it is important to understand cancellation clauses, as they may specify conditions for which a cancellation or termination is acceptable, and it may be different based upon the type of buyer you have. For investors to purchase a Fannie Mae and Freddie Mac foreclosure, they may require that the escrow deposit be the entire 10- or 20% required as down payment for the purchase loan, so it is important to know up front how to protect their interests in case a deal doesn’t work out so they can receive their monies back!

Another differing factor among foreclosed properties is the condition they are in when marketed for sale. Personally, it only took one time for me to have a cockroach fall into my collar while attempting to show a foreclosed property to realize that not all foreclosures are in “show ready” condition. Although HUD, Fannie Mae, and Freddie Mac usually utilize property preservation systems and asset management companies to ensure homes are show-ready and not a health hazard, it may not be the case with every lender. Therefore, it may be a good idea to prepare our buyers mentally for showings… in fact, in many instances previewing would not be a bad idea!  If it is a HUD property, the HUD Property Inspection Report (HPIR) is a wonderful tool to find out issues the property may have prior to spending time and gas for showings and can be obtained with complete listing information at www.HUDHomestore.com. Since many of these properties are considered affordable and attractive to buyers on a budget, as much information on the condition of the property up front will help eliminate properties which do not meet guidelines for Down Payment Assistance or certain types of financing.

As more foreclosures become available on the market, it is really important to stay informed and engaged so that your buyers can have access to these great deals. To get started, visit www.fanniemae.com, www.freddiemac.com, and www.HUDHomestore.com or contact one of our many local REALTORS® who list and sell REO homes in our community. They are a wealth of information and will be glad to share all they can to help you move this inventory and our local market FORWARD.

Christic Henry
Kingdom First Realty

In 2013, I will face-down my social media hurdles and challenges! I don’t feel like I am afraid of social media. Here’s a list that just scratches the surface of what’s out there: Facebook, Google+, Twitter, Pinterest, LinkedIn, Reddit, Foursquare, Tumblr, Flickr, Skype, Go-To-Meeting, YouTube, QR Code generators (such as http://www.qrstuff.com), and apps! I may need to find the time to learn more about social media, and change my thinking so I’m looking at it in the “right” way.

The real estate profession is evolving as an even more interactive social experience because of social media. We know that customers research and drive by our listings using their smartphones and tablets as navigation guides and QR Code readers. With cloud transactional tools, like Form Simplicity with e-signing capacity, coupled with the very good quality picture-taking capabilities of smartphones and tablets, REALTORS^® can now operate 100% from the field deep into a transaction—from listing, to marketing, to forming a binding contract! We are brought back down to earth, though, getting the inspections done and closing at the title company or attorney’s office. Social media empowers a REALTOR^® to be where you are and still connect, prospect, or market one-on-one with someone where they are, or to the world, just by accessing a “channel” or an app in cyberspace.

Let’s face the “fact” that the world is irretrievably transformed from the analog realm to the digital. Either we must hire social media talent or join in. A bit of both is most likely the best approach. This approach seems the soundest, because there is a different thinking process to social media. For example, recently I was looking for a meeting place that I did not know the address to and so I asked a young man if he knew where it was. He said, “No, but give me a second.” Then he typed the name of the place into his smartphone and told me the address and showed me a map of how best to get there from where we were. Here’s what I am saying about the social-media thinking process: I had a newer smartphone than he had, but it didn’t occur to me to solve my dilemma so efficiently! Come to think of it, it’s a wonder that I did not first try calling 4-1-1 for help.

Other than consulting their phones, my thought is that our more social media-savvy colleagues and neighbors might have sent out an SOS (oops, that’s an analog reference, I should say, a “shout-out”) on Foursquare or Facebook or Twitter or something else available. This is more precisely my 2013 challenge: How will I think and act more digitally going forward?

Should we ask the Professional Development Committee to work with Board staff to deliver more classes to help us with what seems to be a pervasive social media challenge? This is a timely alert. It is not overkill, in my view. I want to stay in business, and be competitive in the social media era. Don’t you?

Wanda Carter

Keller Williams Town & Country Realty

Expert: “A person who has special skill or knowledge in some particular field.” 

Allow me to discourse for a moment (I really mean vent). You are at a listing appointment and out of curiosity or practice you ask the seller what they think their home is worth in today’s market. With a prideful retort, you get an answer almost at the same time as you are murmuring to yourself, “Overpriced.” (I never actually say it…out loud, at least.) Some sellers can be quite entertaining with the idea of their home’s value. Mention to them what their home is worth in today’s market and they go apoplectic; I didn’t know a customer fainting was in my job description! Usually following this “GREAT” revelation is the most dreaded response known to a REALTOR^®: “Well, we don’t have to sell.” Wait…what? (Do you remember the movie Kill Bill? Now do you remember the symphonic background sound that played at critical points in the movie, usually followed by the screen turning red? Well, you get my point:  maybe you’re seeing red right now!)

A common theme amongst sellers, and buyers for that matter, is a conflicting battle between what they hear and what they see versus what their REALTOR^® tells them. Whether it’s listening to a friend/neighbor or watching HGTV, it is important they understand the difference between entertainment and factual information. They wouldn’t tell Jimbo Fisher how to coach the Seminoles, because they haven’t put in the time to understand the nuances and complexities of coaching, let alone the personalities involved. The same applies here in regards to real estate. Watching HGTV to understand how negotiations are conducted won’t make them experts, but it may mean missing out on the sale of their home or not buying the home of their dreams if they’re unwilling to listen to the advice of experts—REALTORS^®. Besides, if watching TV conferred expertise, we would all have that as a designation…me included!

At this point, I would be remiss if I didn’t identify the key element in bridging the gap between customers and REALTORS®…trust. Trust allows a client to stick to their day job while their REALTOR^® handles the ever-changing world of real estate. Having said that, REALTORS^® need to remember that it is crucial that their reputations are upheld and regarded with reverence. One bad transaction can stick out like an apple in a bowl of oranges. This notion begs the question—what is the recipe for establishing trust in your community as a whole? Well, it’s not a singular effort. The ingredients include a heavy dose of cohesion amongst REALTORS^®, as it is essential to work well with your fellow comrades. Next, a sprinkle of selflessness: it is imperative to understand that the process is never about you. This is a recipe for success that can alter the public’s perception of the integrity of REALTORS^®.

So the next time you are at an appointment and the seller states that they don’t have to sell, or if the buyer wants to make an absurd offer, turn down the volume to the retort sounding in your head, and educate your customer instead. After all, HGTV doesn’t make someone an expert…but your knowledge and expertise as a REALTOR^® does.

Shehu Tagoe

Keller Williams Town & Country Realty

Adding to the clutter in your Inbox:

• Several emails from TBR REALTORS® about new listings and/or open houses
• An email from a member office welcoming a new agent
• Emails from TBR announcing a socials/events/classes
• An email from TBR informing you about a county commission meeting
• And TBR’s weekly eBoard Briefs newsletter.

Whew! That’s a lot of email in the course of one week, generated from your TBR membership. But is it spam?

If you’re reading this (and you’re a TBR member), you’re a REALTOR® or an Affiliate. You’ve likely become a member for at least one or maybe a variety of reasons—which are benefits exclusive to TBR members:

(1) Networking;

(2) Marketing;

(3) MLS;

(4) Education;

(5) Advocacy

…etc.

As a TBR member, you’ve paid yearly dues for these membership benefits. You’ve paid for access to other members—networking opportunities and contact lists—that the public cannot receive. You’ve paid for access to TBR’s MLS (if you’re a REALTOR® member), and for education and advocacy—and to be kept informed about any changes or updates to any of these services as they happen.    

My point? Each of the emails mentioned in the first paragraph falls under the “membership benefits” categories listed in the second:

• Several emails from TBR REALTORS® about new listings and/or open houses = Networking. Marketing. MLS.
• An email from a member office welcoming a new agent = Networking. Marketing.
• Emails from TBR announcing socials/events/classes = Networking. Education.
• An email from TBR informing you about a county commission meeting = Advocacy.
• And TBR’s weekly eBoard Briefs newsletter = Networking. Marketing. MLS. Education. Advocacy.

TBR strives to provide you with great member benefits and opportunities, and to keep you informed—that’s why we exist as an association, and why you joined! We respect your time and certainly understand if you don’t want to be included on the TBR roster that’s distributed to other members, and if you want to unsubscribe from TBR communications like advocacy messages and eBoard Briefs. But I urge you to reconsider. Sure, your Inbox can get pretty cluttered. I love my BlackBerry because I can “delete” before I ever sit at my desktop, so it’s not so overwhelming once I sit down to work. “Delete” is an option, short of “unsubscribe,” that’s easy for me to take advantage of—but I won’t miss messages that are important to me.

So I’ve tried to explain the why’s of what we do—including sending out email blasts and rosters. If you unsubscribe from a TBR list, or ask to be removed from the roster, we honor your request. We do try to limit the messages we send to you from the association, beyond the weekly eBoard Briefs newsletter. When we send an email from TBR, the subject line will always reflect what’s in the message—so you can easily see if it pertains to you; if not, “delete.” After all, we don’t want to bother you or for the message to get lost in your Inbox (but we do want to keep you informed—a delicate balance, I can assure you).

Members, if you use the TBR roster to send out emails, and someone asks to be removed from your list, honor their request—it’s the law (CAN-SPAM) and common courtesy (the Golden Rule). When you do send out emails, clearly identify your message in the subject line, thoughtfully consider your email marketing strategy, and limit the amount of emails you’re sending so as not to dilute your message (or annoy others to the point that they unsubscribe).

I’d like to hear what you think about mass email communications from members and association: Is it spam?

Susan

I read an interesting study done by MRIS, a regional MLS that serves the Mid-Atlantic region of the United States, including Maryland, Virginia, Washington, D.C. and parts of Pennsylvania, Delaware, and West Virginia. MRIS is the largest MLS in the country, with close to 50,000 subscribers.

According to the report, which I found on www.MRIS.com, today’s consumers recognize this is not the time to complete a real estate transaction on their own, and are placing a stronger emphasis on the agent’s professional skills. The following are the traits that the participants in this study found to be the most important (in order of highest rank):

1. Trustworthiness
2. Experience
3. Willingness to look out for a client’s interest
4. Expertise in negotiating contracts
5. Responsiveness
6. Familiarity with contracts
7. Knowledge of the local community

These requirements are evidence that consumers are seeking more than simple guidance; they are looking for an expert they can trust to execute a step-by-step process throughout the entire transaction.

Although this study was done with consumers in the Mid-Atlantic region of the United States, I would argue that these findings are equally applicable in our little corner of the world. Today’s buyers and sellers have more information about real estate than in any other time. Buyers can research neighborhoods for school information, crime statistics, demographics, and much more. Sellers can look at recently sold properties in their area, current listings (potential competition) and even get pricing help from the many AVMs that are available. Yet, despite all of the tools and resources available, when it comes time to actually buy or sell a home, there is nothing more valuable than the industry knowledge, expertise, and guidance a real estate professional brings to the table.

Other findings in the study were:

The take away for me is that the abundance of information available to consumers with regard to real estate does not minimize the role of the REALTOR^®; on the contrary, it magnifies the need for a real estate professional to guide buyers, sellers, renters, and landlords through this complicated transaction. 

Are you positioning yourself to meet the needs of today’s buyers? Do you exhibit the top seven traits buyers and sellers are looking for in their real estate professional? Do you bring the skills to the table that buyers and sellers value?

Being a successful REALTOR^® is not easy; it takes discipline, hard work, and a willingness to learn and change. To quote Tom Hanks in the movie, A League of their Own, “It’s supposed to be hard! If it wasn’t hard, everyone would do it. The hard… is what makes it great!”

I want you to be great at your chosen profession!

Special note: I want to acknowledge and thank MRIS for allowing me to reprint this information from their report.

~Steven

I am hooked on the Discovery Channel show, “The Deadliest Catch.”  Maybe there is something fascinating to those of us sit behind a desk (and our biggest concern is lunch) about seeing people truly take their lives in their hands every day they are at work. I have been watching it since the beginning and I find myself wanting to know more about these guys who work in a field with a 100% chance of injury.

Well, I would not put REALTORS® on the same scale as Bering Sea crab fishermen, but this profession offers its challenges and certainly its dangers. What prompted this blog entry is an incident that happened a couple weeks ago at an open house. The sellers reported to their agent that some jewelry was missing out of their dresser drawer.  Of course, there were many people walking through the house and it is impossible to say with certainty which person or people did this. For that matter, if the sellers are anything like me, it is possible that they put this jewelry somewhere else for safekeeping and just forgot. Nonetheless, it is certainly prudent for agents to advise their clients how to keep their belongings safe during showings. 

With Spring comes more listings, and with more listings come more open houses. Open houses are prime grounds for potential thieves. When having an open house, take precautions with your clients’ property:

1. Speak with everyone who comes in

2. Make sure each guest registers in a guest book

3. Have the sellers secure all their valuables, not just put them in a dresser drawer

4. Don’t take chances

5. And, most importantly, trust your instincts

If there is a crime, contact the appropriate authorities. The seller should make out a police report.  With some common sense passed on to your clients, you can help them safeguard their valuables.

e-ya later,

Steven

The following was taken from the National Association of REALTORS® and can be found at www.REALTOR.org.  It was prepared the first week of May, 2010:

E-mail chains have circulated among members and are generating a lot of confusion in the REALTOR® ranks.

“Homeowners Listen Up” E-mail

Claim: Pending legislation in the Senate would require an energy license or retrofit for home sales. This email is FALSE: There is no requirement in H.R. 2454, The American Clean Energy & Security Act, that home sellers obtain either a license or energy audit or make energy retrofits before they can sell their home. The legislation, earlier passed by the House, is pending in the Senate.

FACTS

Here are the two REAL provisions in the bill:

1. Section 202 (Building Retrofit Program) would offer matching grants for home improvements. State government would administer the program, which is voluntary and available to all property owners.
2. Section 204 (Building Energy Performance Labeling Program) would apply to new construction only and prohibit time-of-sale labeling. The original energy audit and MLS listing provisions were deleted as the result of NAR insistence; existing real estate was excluded from the bill’s requirements. NAR will work to ensure that these provisions are retained in the Senate version. We were also instrumental in eliminating time-of-sale energy efficiency requirements from the bill. Senators John Kerry (D-Mass.), Lindsay Graham (R-S.C.), and Joe Lieberman (I-Conn.) are pursuing bipartisan support for an alternative to the House bill, and NAR will monitor that progress to ensure residential and commercial real estate are not adversely impacted. A packet of facts and FAQs NAR created after the House bill was passed last summer is available at www.realtor.org/government_affairs.

More information on this issue and ALL National issues that affect real estate can be found at www.REALTOR.org.

e-ya later,

Steven

Here is a quiz…

What do the letters GRI stand for?

A. Good Readers Impossible

B. Golly Really Intelligent

C. Good REALTORS® Imagine

D. Graduate, REALTOR® Institute

If you guessed “D, ”  you would be correct!

I recently traveled to Orlando to serve on the Graduate REALTOR® Institute Workgroup. I worked with fellow Education Directors, REALTORS®, and Florida REALTORS® staff to develop a schedule of GRI courses throughout the state for 2011.

REALTOR® associations submit their requests for GRI courses 1, 2 and 3. Boards across the state want to host GRI courses because it is a huge benefit for their members so they don’t have to travel to take the courses. TBR’s Professional Development Committee has been scheduling GRI courses at TBR every year since I’ve worked here (I started at TBR 5 years ago in August!). 

So here’s some cool information about the GRI…

On average, real estate professionals who hold at least one designation earn twice as much as those professionals without a designation. When the designation is the GRI, that percentage jumps 10% to 15%. (NAR). $$Cha-ching!$$

Florida’s GRI Program celebrates its 40^th Year of Excellence in 2010. 

GRI 1 covers 14-hours for license renewal OR 45-hour Sales Associate post licensing for new licensees. Members who are taking the class for their post-licensing receive a $20 discount. (You must contact me before registering to receive the discount).

You have 5 years to complete the GRI from the date of your first course. You can also take the GRI 1, 2 & 3 in any order. If you can’t remember if you have completed a GRI course or when it was, just call or email me and I can find out for you. Even if you might have taken the course at another association don’t worry, I have great connections and can find out when and where you completed your last GRI course.

Now that I’ve told you all this fabulous information about the GRI I know you can’t wait to sign up to take the next one we offer.  Lucky for you TBR is holding the GRI 1 course August 4-6 & 11-13. Click here to register. I know 6 days seems like a long time to be in class, but the days go by pretty quick. The instructors, Patti Ketcham, Linda Dix and Dr. Joe are great at keeping the class entertained and have received rave reviews from past class evaluations. And the best part about the classes is we have AWESOME affiliate members who have volunteered to provide breakfast and lunch for your classes!!

Special shout out to: Advantage Title Group, Florida Commerce Credit Union, Pro Bank, Regions Bank, Sunshine Savings Bank and Superior Bank!!

Professional Development Committee Chair and GRI, Miriam Nicklaus has this to say about the GRI: “I can’t tell you how much I learned in the GRI classes. You go to Real Estate School to get a license; you take GRI to learn how to be a REALTOR®! I found the instructors to be knowledgeable and truly wanted the students to learn. The biggest plus for me was the opportunity to network with other REALTORS®.”

If Miriam doesn’t have you convinced, then check out what other REALTORS® in Florida and other states are saying about the program. Watch cool videos here.

If you hold the GRI designation I encourage you to post a comment on this blog about your GRI classroom experience. What did you learn? What was your favorite part about the course? Who was your favorite instructor? How has the designation benefitted your real estate career?

Christy

The real estate industry is breeding ground for scams. 

• Scams on buyers
• Scams on sellers
• Scams on landlords
• Scams on renters
• Scams on the real estate professionals who service all of the above.

Here is a scam that I first became aware of through one of our members; it involved her listing for sale being erroneously published on Craigslist. Here’s the general scam:

• I have a listing in the MLS that is published for sale on a variety of public websites (REALTOR.com; Homes.com, etc.)
• A scammer scrapes the listing from one of these sites and posts it for rent at a “cheap” price. (Remember what your mom said, “If it is too good to be true, then it probably isn’t.”)
• For the listing to appear legitimate, the scammer acquires a free email address (hotmail, gmail) and set up an account like “stevenlouchheim at hotmail.com.” Free email accounts are not traceable.
• Anyone that drives by the house sees the for sale sign with my name and sees the scammer’s email address (which also has my name in it)…the names match and, therefore, the Craigslist ad must be for real!
• In the ad says to wire transfer money and the REALTOR® (that’s me) will send them the keys, or
• Potential renters might be asked to fill out credit applications asking for personal information like credit history, social security numbers, and work history. Criminals can use this information to commit identity fraud and steal money from their victims.

What can you do?

1. Check to see if your listings appear on www.Craigslist.com or www.rental.com and any other rental sites you find. If it does…
2. Contact the website owners using every possible method (registered mail, email, and telephone) to make it clear that you are the listing agent on the property appearing on their site, explain that the display of your listing information on the site is not authorized, and demand that it be removed immediately.
3. After seven days, check the site to see if the listing has been removed. Follow up with the site owners again if it has not been removed. In other words, stay after them until it is removed.
4. Keep a log of the paper trail, emails, and phone calls that reflect your attempt to proactively get this situation resolved.
5.  I also recommend that everyone set up a Google alert on themselves or their listings as a measure. This will send an email when these items appear so that the REALTOR® can check the validity.

To quote an early 1980s TV show, “Let’s be careful out there.”

e-ya later,

Steven