Asking for Referrals the Right Way!

I just got an email from another agent here in town.  At the end of her signature, in quotation marks no less, it says Oh, by the way....  and asks her nearest and dearest to refer anyone who is thinking of buying or selling their home.  This made me cringe.
It wasn't the quotation marks.  It wasn't the folksy, off-hand style (Oh! By the way!  I just thought of something!!).  It wasn't the fact that everyone from her best friends to her clients, to her business partners will get this request.
It is all of those things together.
Amazingly, I got an Article by Dirk Zeller today about just this very thing.  It is about asking for referrals from people you know.
The whole article is worth reading, but one of the standout quotes was:

Don’t merely use a throw away line like “Oh, by the way” before you ask for the referral. This tactic cheapens the referral process rather than raising it to the high level of honor and respect it deserves.  The client can see right through this cheap technique.

Wow.  He read my mind!  In a nutshell, if you respect your business and your clients, take the time to do things right.  You are asking them to let you into their circle, and what's more, you are asking them to vouch for your professionalism and trustworthiness.  This is a 2 way street, so show them the consideration you are asking them to show you, and you will see your referral business boom.

How Many Showings Does it Take?

When selling your home, one of the "moving targets" is the number of showings to expect.  Not surprisingly, the number of showings goes down during the holidays and during cold winter months when the weather is unpredictable.  But different price points will also experience different levels of activity.
Following is a breakdown by price level of home many showings per month we experienced in the Denver Metro market for the first quarter of 2010:

• Overall, the number of showings per month for all price categories was 8.7 per home.
• Homes under $250,000 saw an average of 10.5 showings per month, with the $50k-100k range seeing the highest number of showings per month at 15.
• Homes from $250k-300k saw an average of 7.4 showings per month.  Homes from $350k-400k were at 3.7 showings per month.
• Homes in the higher price ranges, from $400,000 up, saw an average of 4.8 showings per month.

The good news for those selling homes in the $250k-400k price range is that the number of showings increased year over year: from 4.7 in 2009 to 6.1 for 2010.  Homes above that range increased from 3.4 to 4.8.  Homes priced in the lower ranges held steady at 10.5 showings per month.
Buyers are getting back out there, which is good news for all homeowners.  With renewed interest and activity in residential real estate, we will see a ripple effect throughout the economy.

Hey- I Thought You Said that House was Under Contract?

What Does “Under Contract” Mean?  What Comes Next?

Recently, I was driving through our neighborhood with a buyer.  He was very interested in a property a few months ago, and had been considering making an offer.  When I called the listing agent to let her know of our intent, she told me it had just gone “under contract” and was no longer available.  When we drove past this property last week, the sign was still in the front yard.  “I thought you said that home wasn’t available?” he asked.  And it’s not.  It is still “under contract”.

  How properties go Under Contract, and what happens next. 

When a buyer finds the right home, he or she makes an offer.  This is presented on the Colorado Contract to Buy and Sell.  It is a detailed contract with a schedule of dates, room for contingencies, attachments, concessions, offer price, financing arrangements and appraisal requirements, among other things.  It is 12 pages long, and is designed to protect both buyer and seller during what is often the largest sales transaction private parties ever make.

When buyers purchase a home, they want the assurance that they have thoroughly researched their purchase before the sale is final, and that no other buyer can purchase the property out from under them during this time.  If the buyer and seller can agree on the initial terms, both parties will sign a binding contract that allows the buyer to do this research.  The property is then “under contract”.  This period usually lasts from 30-60 days.  A short sale listing can take longer- sometimes several months.

The buyer is then responsible for doing this research, and there is a time limit and an Earnest Money deposit submitted so that the seller is protected.  

These steps include applying for a loan, having a certified inspection of the property, obtaining title and title insurance, obtaining property insurance, reviewing any HOA documents, reviewing Improvement Location Certificates or surveys of property boundaries and making sure the property appraises.

The For Sale sign remains in place during this process because the sale is not yet completed.  Often times, the Realtor will place an “under contract” banner on the sign.  The idea is that it “ain’t over ‘til it’s over,” so the sign remains in place until funds have been transferred and keys are passed to the buyers.

Are Open Houses a Waste of Time?

In a word: NO!
But, I get ahead of myself.  When I started in the Real Estate game, things were gloomy (to put it mildly).  Foreclosures were everywhere and entire "ghost towns" were created when people walked away from homes they saw no way of getting out from under.
Those were bleak times.  Many Realtors left the business and didn't look back.  A couple of years ago, telling people you were a Realtor would garner a few snickers or sympathetic head shakes.
So we saw signs go up in front of houses without brochure boxes, or worse, empty boxes.  In my neighborhood, there hadn't been an open house in several years.  I'm not kidding.
But sometimes Old School is just what a neighborhood needs.  I held an open house last weekend in Belle Creek.  I put signs and balloons at every entrance to the neighborhood.  I walked to every home in the neighborhood (all 300+) and invited every neighbor.  I posted on Twitter and Facebook.  And I waited.
And I reinforced what I've always felt about Belle Creek.  It is a pretty special place to live, and people seem to want to be a part of this community.  Right at 11am when the open house was to start, a young couple came through the door.  Shortly after they left, another couple came along.  During the time of the open house, I had about 25 people come through.  When it was over, 6 more people rang the bell (after I left!) to see if they might have a look too.
So, are Open Houses worth it?  Only if you want to sell your house.  If your Realtor is not holding open houses, maybe you should ask them why.

Inspired! Appealing Property Taxes to Lower Them, Steps 1 and 2

Yesterday, I read an article on msnbc entitled "High Property Taxes? 4 steps to lowering them."

If you have lived in Belle Creek for long, you no doubt have watched our sales values take a hit, while our property taxes stay high.  I am a serious proponent of supporting public schools and having good roads, and taking care of our parks.  I am also a pretty big supporter of not paying too much for property taxes.

When we got our tax bill this year, I stared at the nearly $4,000 and swallowed the bile rising in my throat. Good lord, isn't there something we can do about this?

Turns out there is.

Step 1: Track Down the Paperwork.  

This is where I am in the process.  I called the Adams County Assessor's office (303-654-6038) this morning after trying to find the form on their website.  A very nice and knowledgeable employee told me that Notices of Valuation were sent May 2009, and they are only sent every other year.  On the back of this notice is the form for appealing your property taxes.

Unfortunately, I am not as organized as I would like to be, and I have no idea where I put that form.  When it comes to business, I can lay my hands on paperwork at a moment's notice, but when it comes to personal stuff...

He must not have been working in county government for long, because he laughed and told me he would send out another copy right away.

Step 2: Understand the Process

Although there is a form on the back of the valuation notice, you do not need it to appeal your tax value. You must submit a written protest, but it can be done by mail, fax or in person.  This must be done before June 1.  If you submit it in person, you can sit with the county appraiser and discuss where the value comes from and plead your case.

Be sure to bring as much evidence as you can.  If you have a recent appraisal, this will help.  Also, bringing a list of recent sold comparable properties in your neighborhood will help.

I have only gotten this far in the process myself, so I will report what happens as it happens.  Wish me luck...

If you would like assistance in appealing your property taxes and need recent solds in  your area, please email me or call me at 720-341-5235.  This is a FREE service that I am happy to assist you with.  

Part 2: The New and Improved GFE? How to Protect Yourself

In my last post, I began to tell you a little about my adventure with the "Good Faith Estimate" or GFE for my home loan.  Here, as they say, is the rest of the story:


So I called my friendly Chase consultant AxA.  Knowing that this was not the final GFE, I also knew that it could still be changed and we were not locked in to these fees.  I left a message and sent an email.  Shockingly, I got no response.


Here is where it gets interesting.  Life happens to us all, and time passed with me assuming that it would be taken care of.  After all, I DID send an email.  


The "final" GFE arrived in the mail.  I opened it with curiosity, fully assuming that everything would be correct.  


Bottom line?  "Total Estimated Settlement Charges:  $4,015.47.


What. In. The. FLYING HELL?
(Actually, at this point I might have used stronger language, but this is a family show.)


When I called my good friend AxA, he said "Oh.  Yeah.  That's wrong, but it's no big deal.  It'll be correct at closing.  Just sign the paperwork you get and we'll schedule it."  
No, I said, Nothing will be signed until we have corrected paperwork.  Re-do this and send out a correct GFE and we will review it and schedule closing when it is correct.


Here's where he challenged me. First, a BIG, annoyed sigh.  Then: "What's not correct?"  Was this arrogance?  Ignorance?  I suspect a combination of both.  So, I went-line by line- down the page to tell him what was not kosher.
1.  In our initial phone conversation, he said there would be no points.  Lo and behold- there's an 1/8 of a point charge.
2. In our initial conversation he had claimed no origination fee.  Guess what?
3. Hazard insurance:  $1400.  First of all, we already spoke of this and he knew that insurance was not escrowed on our loan.  Secondly, $1400??!!!  Even if we didn't already have (less expensive) insurance, I might want to shop around for a better rate.
4. Title Insurance: $894.95.  Not!   This is a reissue of title insurance, first of all, so the rate should be greatly discounted.  Secondly, you can check rate cards that are publicly available from any title insurance company, and for the amount of our loan, the highest rate I found was about $500.


He challenged me as much as he could until I said: "Listen.  I happen to be a Realtor, so I know how to read a GFE, and this one is WRONG.  This is not acceptable."


THEN- and this might be my favorite quote- he told me: "Don't worry about it.  You won't have to bring this to closing, it'll just get rolled into the loan."


This got me thinking.  Not too many people are aware that they have options when it comes to these things.  This is part of the reason that the mortgage industry is such a mess.  Many people would be so relieved to get out of their ARM and into a fixed rate that they might just accept what he said as the way things are.


But, think about this:  if I didn't question him, we would be paying interest over 30 years on over $2000  worth of charges that shouldn't even be there.  


You do not have to be "in the business" to shop your rates for title insurance.  But how many people know this?  And title insurance is just one example of the services that the consumer may choose.  Interestingly, after this conversation, my husband got a call to schedule our closing time.  "We're all set to close!" said the chipper voice from the title company.  
Well, believe it or not, my husband and I communicate regularly (!).  AxA was planning on just going around me to close out our file rather than do his job and fix the problem.


A few tips if you are going to Refinance or shop for a new loan: 

• Take copious notes.  Write down names, dates, time called, details discussed.  Do not be afraid to ask the person who answers the phone to spell their name for you or to repeat what was said so that you can write it down.  This was good info for me to have when I spoke with AxA.  When I told him I took notes, he backed down and took off the points charged.
• Follow up with email.  Better still, if you can follow up phone conversations with email, then do it.  Just a simple "Per our conversation today at 2pm..." and then what you have in your notes.  It's also a good idea to set your email to have a "return receipt" so that you know it was received and opened.  KEEP all emails that go back and forth.
• Don't be afraid to ask questions and challenge the answers!  So many of us are reluctant to question the bank because we assume they know what they are talking about and are telling us the truth.  But, as in my situation, paying for a couple thousand dollars over 30 years (plus interest) that should not even be charged is ridiculous.  Suggesting "rolling it into the loan" is just stupid when it doesn't even belong there in the first place.
• Do NOT sign anything until you are satisfied that your loan paperwork is correct.  If I had just waffled and signed the loan docs stamped "sign and return", then we would have been locked into all of those erroneous charges.  

Bottom line:  my friends, if you need assistance understanding your GFE, Call me!  Or call any licensed realtor to help you understand what you are reading.  You have the right to know what you are signing and agreeing to, and what charges you do and do not have to pay!

The New and Improved GFE?

A “Simplified” GFE?

Making the Good Faith Estimate More Transparent May Make it More Difficult to Close

I have been living in the same home for almost 8 years now.  It is cozy and has enough room for my family.  We have designed it to suit our needs and updated or upgraded paint, bathrooms, basement.  

When we bought our home, we got a great deal on it (for the time!), and we were able to put down a pretty decent downpayment after selling our previous property.

So, our loan isn’t big.  It was originally with ABN-Amro and along the line it was purchased by WaMu.  We had no problems with that, and in fact, when  we were sent a mailer about doing a re-fi several years ago for a flat fee of $495, we decided to go for it.  We were smart- we got an adjustable rate (not the smart part...) mortgage, took a little cash out, and went on with our happy lives.  

We are thankfully nowhere near being upside down on the house (that’s the smart part), but one of these days it IS going to adjust.  Mind you, this won’t happen for at least another year.  With interest rates being low, we decided now would be a good time to lock in our rate.  If we could do that now, we would drop the interest rate down over a point, without changing our payment.  Score!

Enter Chase Bank

In the meantime, Chase acquired WaMu.  (Cue the music: Duh-duh-DUHHHNNNN!)  People have many different stories to tell about their experience with Chase Home Loans.  This is mine:

It started with a call to the 800 number on my loan statement to try and get the right department.  This was an adventure in its own right and might even be worth another blog.

Once I got through to the correct department, I spoke with a very nice man whom I’ll call AxA.  AxA was very informative.  Per the notes I took during this first call, he told me that it would be no problem, we might even be able to lock in a rate without an appraisal!  Because we are already Chase customers, there is no origination fee!  There won’t be any points!  We have great credit!  He! was! very! Enthusiastic!!!  In double time, with me furiously taking notes, he said that there would be a processing fee of $750, but we would get some of this back at closing.  It turns out that we would need a full appraisal, but that was to be expected in this market.

The Good Faith Estimate Arrives

Per the new regulations and Truth in Lending, a Good Faith Estimate is sent when you originate a home loan, and then a final one is sent just before closing.  There are certain fees that a consumer is able to “shop”- among them title insurance, home inspection and a couple of others.  Because we are not purchasing a different home, inspection is not necessary.

I tore into the paperwork to see what lay inside.  This document is dated January 15- the new Truth in Lending went into effect January 1, so this would be my first glimpse.

I glanced down the page.  At the bottom, “Summary of Charges:  $2560.47”

What.  The.  Hell?

Origination charges 1510.59.  “All other Settlement Services” 1049.88.  I don’t think so.  

Next:  RealtorJenn gets to the bottom of it...