Short sales.

Many people in this economy are facing very difficult choices. With layoffs and pay cuts, many home owners are struggling to pay mortgage payments. There is no reason for people to have to go through a foreclosure! Many homeowners are embarrassed to admit they are in trouble. The fact is, banks are willing to negotiate sale prices on homes that are threatened with foreclosure. The lenders work closely with the Realtor and Title companies to come up with a fair price for the home. This is called a short sale. The lender is willing to take a loss on the balance owed because, in the long run, it is more costly for them to foreclose. This also gives the homeowner a scheduled and organized way to moved out of the home. The credit ramifications are far less worse with a short sale than a foreclosure. It is the job of the Realtor to negotiate with the lender to "write off" the difference, if any, that is owed after the sale. Although, the homeowner must file a 1099 in the amount of the difference, it is considered profit and falls under the capital gains tax law. If you have lived in the home for two years or more, you pay no taxes on the difference up to 250k if single and 500k if married.

However, if the home is foreclosed and sold again at a lower price than the balance, the lender may file a judgment against the original owner for repayment of the difference. This may force the original owner into bankruptcy.

The lender pays all the fees to sell the house and the homeowner walks away with some dignity and no foreclosure status on their credit.

Please note that this can be a very lengthy process but the homeowner may continue to live in the home while the sale is being negotiated.

If you, a friend, or family member could benefit from a short sale, please do not hesitate to call me. Do not let your home fall into foreclosure.

Dont bite the hand that feeds you.

I recently met a great couple looking for a lake house to spend their down time fishing and relaxing. I showed them a tiny little cottage in a small lake community. The cottage is owned by a local bank here in Fort Wayne. It was been on the market for several months and the bank has dropped the price two times in the last 4 weeks. I met with my clients yesterday and we made a very strong cash offer. After submitting the offer, the bank called and said, "We have an employee that is going to go look at that property today. He may be interested." I find it odd that the same day I submit an offer that an "employee" of the bank that owns the house is now suddenly interested. I am frustrated because you would think the bank would sign a strong cash offer on a home they have foreclosed. I mean, what do you think is going to happen next time I show a listing that this bank owns? At the very least I am going to say, "Oh, once we submit an offer, bank employees have first dibs." Not cool. You want me to sell your foreclosures? Then sign the offer and don't kiss and tell to employees that they may get a potential deal based on a submitted offer.

I have an awesome job!

This past Friday I had the great pleasure of closing on a home for first time home buyers. Now, I have helped a lot of first time home buyers but this time was different. I was in the office one day and got a call from a young women who wanted to see a house that was listed across the street from where she was living. This house was not listed by me and she had been trying to get in touch with the listing agent. After two weeks of not hearing back from the agent, she saw a ReMax sign and just called the office number on the sign. I was fortunate enough to be in the office that day and answer her call. She explained that her and her boyfriend had been renting a single wide trailer for two years and this past winter their heat bill was over $450! They knew about the first time home buyers tax credit and wanted to take advantage of the program. The two of them had been saving and paying off all their bills, their cars, and loans and finally, they were ready to buy a house. We set an appointment to get together and view a few listing. I set them up with a mortgage broker, they got pre-approved, and 30 days later we were sitting at the closing table. The smiles and tears of joy this couple had almost made me cry. I was so proud of them for being responsible, paying off bills and buying a home at the ages of 22 and 23. I was even more happy to see them get a suitable home for their 3 year old son. It was a pleasure and my honor to help them find this home. I think I was just as excited for them as they were for themselves. I love my job!

Before

Here are the "before" pictures of my house. I close in less than 4 weeks and then I will start the renovations. If you have any ideas.. speak up! Would love to hear your suggestion as to what you would or would not do.

Maybe you should mow your own lawn.

I recently listed my neighbors home and had it under contract with in 45 days. They have been great neighbors and I am sad to see them leave. One reason I am sad is they would only let me pay their son 10 bucks to mow our lawn and not a penny more! Talk about cheap labor! I made a statement at closing about having to find someone else to mow our lawn for 10 bucks. The buyers agent sitting across the table looked at me dead in the eye and said, "Well I think you should mow your own lawn, you need the exercise!" She must have just been staring me down in my purple dress shirt thinking how much I look like Grimace. Everyone at the closing table gasped and then started laughing, everyone except for the buyers agent who made the comment. Awkward... I should have told everyone I was going to McDonalds for lunch after the closing.

The walk in

Something happened to me yesterday that most Realtors only dream about. Some even think it is a myth and only told in legends. I was the only broker in the office at the time and the secretary came back and told me there was a lady at the front desk that wanted to buy a house. Of course I was skeptical but I happily walked up and greeted her. She immediately extender her hand, introduced herself, and proceeded to tell me about a house she wanted. It was a FSBO and it was down the street from my office. The owner told her to go to the Remax office down the street, find an agent, write the offer, and he would co-op at 3.5%. As I was talking with her, she stated she needed to get bank approval. I took her to the lender next door in the same office complex and within 15 minutes she was approved. I set up an appointment with the FSBO to show her the house. I am meeting her there at 4 today!!

Neighbors are a funny thing.

One of my friends made a comment to me the other day about the relationships we have with our neighbors. He was saying that living so close to other people and their families can pose an awkward situation. You are almost forced into a friendship and into respecting someone you may not otherwise want to have any sort of relationship. Even if you don't get along you have to see them on a regular basis. Catching them mowing their lawn or checking their mail can result in the, "half wave" (not wanting to be rude but having no desire to stop and talk) or even a 5 minute conversation. (usually about another neighbor) I mean, you should know what you have in store for yourself if you move into a neighborhood where the houses are 5 feet apart. Do not be surprised if you can hear their television if you both have windows open. They even may have a party in their back yard at 9:30 on a Saturday night. If things like that upset you, Have your Realtor look for properties with an acre or more.

Now, all that being said, I have a warning for all you neighbors out there. Times are hard and people are losing their jobs, and losing their homes. If your neighbor's house goes into foreclosure, it's most likely going to start looking less than stellar. Do not harass your neighbor (probably living with family or in a cheap apt) about the grass and the upkeep. It is no longer their home and they obviously have other things to worry about. Do not harass the Realtor either! Although they would like the listing to look as good as possible, it is not a Realtor's responsibility to mow the yard. I personally will not spend $20 a week for 3 plus months to have the lawn mowed. If it is listed as a bank repo or a short sale expect it to look a bit run down. Please remember you are not the only person in the city that has a house like that next door to you. I know its aggravating and you hate looking at it but again, that is what you signed up for when you moved into a neighborhood. Just so you know, There is a foreclosed home on my street. *GASP* I do not recommend this due to liability reasons but, some of my neighbors have been pitching in and mowing the lawn.... Imagine that! Neighbors doing neighborly things to help out the neighborhood. (I wonder if I have said neighborhood enough in this post)

As always, if you have comments or questions or concerns, please email and I will do my best to respond.

What happens when a realtor buys a house?

So, I bought a house. I was showing this home to a client of mine who was looking for a rental. Now, this home was actually for sale but I totally knew my client would LOVE it. The next day after showing my client the home, the listing price dropped $17,000. I immediate called my client and said, "Hey, would you rent that home I showed you" I think his official response was, "heck ya!" So being the risk taker I am I put an offer on the house. (That should be funny if you know me because I am not a risk taker) After counter offering back and forth and biting my nails for two days we came to a price agreement. Oh, on a side note.. the listing Realtor just leaves the door unlocked to this property so people can go in and out. No lock box, security code, not even a pad lock. Again, what is with these Realtors?

Back to the house. This is just a beautiful old house that someone bought at auction and got a blue light special on yellow paint and went to town. While painting the whole entire inside of the house yellow, they also installed new shingles, central air/new furnace, and new carpet and flooring. Although those major updates are done, this is by no means a show property.

I have bids in with contractors to install a new bathroom, new electrical, fix minor repairs, and make the home a great place to live. This is my first time renovating so it should be fun and exciting. Here are some exterior pictures of the home and as the renovation starts I will post before and after pics.

You know what grinds my gears?

First of all I have to make a comment about what a beautiful summer we have had here in Indiana this year! Nice cool weather with lots of breezes and bonfire nights. OK, onto real estate stuff.

For some reason, no matter what career field you are in, it seams the majority of people never want to follow the rules. You see, when an offer is accepted on a property, that property should go pending in the multiple listing system. This allows other Realtors to see the property as unavailable for showings. Two times this week I have shown a property that was listed as "active" in the system to my clients . After setting an appointment, meeting my clients, speaking with the listing agent several times, AND writing an offer.... the agent THEN told me, "oh, I have had an accepted offer on that property for three days." WHAT??? really? Thanks for waisting my clients time.. Oh, I should mention that when I first showed the property to my clients there was no key in the lock box. I called the agent and he wanted me to break in the side door!!! Unbelievable.

Intro

So I have been thinking about writing a blog for a while. I mean, being an interesting person always helps when writing a blog and I am an interesting person. I am not sure what I will accomplish with this blog but I am excited to get it started.

I am a real estate broker in Fort Wayne Indiana. Let me re-phrase. I am the best, most awesome real estate broker in the world... OK, I may have gone a bit far to say the world but lately it sure feels that way. Being a Realtor is hard and I will be the first to tell you, there are a lot of BAD Realtors. I guess that makes sense considering most of us "rip you off" and we are all snakes and liars and thieves! Went to far again? Please do not be alarmed. I am not your typical Realtor. I know this may sound like a song and dance but, I do care about my clients more than my commission. I am honest, ethical, loyal, and understanding. However, I can be and will be blunt and to the point! In my defense, I do have to bring some people down to real estate reality before starting the journey of buying or selling.

So, why a Realtor you ask? (You did ask, right?) It all started with that print out in high school you get after taking that 79 page test about your likes and dislikes. Asking you if you like orange or white, if you like green grass, and what not. Well, mine told me I should be a nurse and I was like "whatever, Realtor it is!" OK OK, not quite like that but I did hate those tests. I mean I could have lined up my graduating class and played "Guess their profession" and I would have been more accurate. Could have been played somewhat like duck-duck-goose, but more along the lines of, Cop-cop-drug dealer.

Oh! Back to the whole "I'm the best Realtor in the world" thing

I love working with first time home buyers! It's like I can tell them anything and they believe me! I do not do that, of course! Also, I enjoy educating people on the ins and outs of buying and selling. I have a huge passion for architecture and design and I love to meet new people. Put that together with the fact I don't want to be stuck in a cubicle all day, and... Drum roll please... you have your self a Realtor.... excuse me, the "Worlds best Realtor!" I flatter myself.

Please email me or msg me if you have any questions, comments, or concerns and I will do my best to respond!