Selling Poinciana One Property at a Time.

John MacArthur wrote a post yesterday expressing his disapproval of a Real Estate Company in his area that charges Short Sale Sellers a fee in addition to the commission. John’s opinion is that this is taking advantage of people. I thought his opinion was way off base. But hey…..that’s just my opinion. Go read his post and form your own. 

My question to John was “Is it the fee or the amount of the fee that has you riled?” I asked this question for two reasons. 

1. If it’s the AMOUNT of the fee then I would consider his opinion a possible violation of Sherman Anti-Trust Laws. 

2. I list short sales AND I charge an upfront fee to my sellers. It's a very reasonable fee and they pay me prior to listing the property. I also charge a commission at time of closing. 

For number one you can do your own homework. 

Here is my explanation of number two. 

I charge an upfront fee because Short Sales are riskier, more time consuming and contingent on the Seller and their Lender cooperating. 

As any good businessman would I charge a small listing fee upfront to help offset my costs and risk. I am certainly not unethical and I am not taking advantage of people in a difficult situation. I am doing everything I can in my power to help them EXCEPT work for free. 

Did you know I pay more for E&O insurance because I list Short Sales? 

Did you know I NEVER reduce the amount of the co-broke if the lender reduces the commission? This is a benefit to my Sellers because Buyer Agents know they will get a FULL co-broke if they bring a Buyer for one of my Short Sale listings. 

I closed on three Short Sales last week. All of my Sellers were very happy that I was able to help salvage some of their credit and get them out of a difficult situation. 

I have only heard of one other broker that charges an upfront fee on Short Sales in my area. I tell my Sellers right upfront that MOST broker/agents will not charge a fee. They pay me anyway. Why? Because I build value. I bring a lot of knowledge and expertise to the table. I have 2 Sellers right now that are Attorneys and even have one who owns a C-21 brokerage. 

A few months ago I had a Seller decide one week before closing that he would just let the house be foreclosed on. I had worked for five months on the deal. His Attorney advised him to do this so he would not have Federal tax issues. It was my Seller’s homesteaded property. He was exempt from Federal tax on the sale. His Attorney was wrong and probably just wanted to get the fee for filing bankruptcy. I had zero control over this outcome. I stared charging an upfront fee the very next day. 

I refuse to have my compensation controlled by outside forces. 

Below is what one of my recent Sellers had to say. What say you?  

Bryant,

You are amazing! From the bottom of our hearts we want to thank you for this smooth transaction even from across the United States. We are all spread out - David in China, you in Florida, and I am here in California. Even with the distance this transaction did not skip a beat. You did everything on your end and we did whatever you told us to. Your hard work and dedication paid off! You even got us a better deal than what we expected - with the 2nd being forgiven. Your professionalism, patience, persistence, and follow through mentality kept this transaction out of foreclosure and made it into a smooth Short Sale. You are the King of Short Sales! Thank you again for all you did. We wish you and your family the best and keep up the good work.

Sara & David Fisk  

FAQ  #1 What is a Short Sale?
FAQ #2 What is a Hardship and why do I need one? 
FAQ #3 What goes in the Hardship Letter?

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved  

OK you're going to like this one. First posted March 15, 2007. This was the day the market crashed in Poinciana Florida. Check it out:

 Subprime lenders, liars, cheaters and "The Man".

Hey, has any one heard about the subprime lending crisis? OK, I guess you probably have. From what I understand, this crisis, we are going through right now, is due to all the low life, lying and cheating Mortgage Brokers that had saturated our business over the last few years looking to pad their wallets with the blood sweat and tears of the working class. They have been working in conjunction with money grubbing REALTORS® who have driven property values to all time highs by coercing the consumer into purchasing above their means. And "The Man" has sat idly by sucking the average Joe dry in increased property taxes while raising insurance rates to subsidizing the super wealthy who want to live on the San Andreas fault and opening the flood gates of evil money to anyone that could breath and sign on the dotted line.

OK, OK!!!!! I'M JUST KIDDING! Maybe?

Anyway, this post is not about who's responsible and how it all happened, this post is about what we can do to keep our heads above water while the storm passes.

First, let's start with the easy one, Buyers: If you want a piece of the American dream, here are a few steps you can take, to help you achieve your goal.

• Save your money. If you are currently renting for $1,000 a month, but want to purchase in the future, then find out how much home ownership will cost you per month, subtract $1,000 and start saving the difference. This will do two things for you. First, it will discipline you to be able to pay the higher price of home ownership. Secondly, it will provide you with a down payment when you are ready to purchase. If you can't afford to start saving the difference, then you are not ready to purchase a home. Simple.

• Work on your credit issues. If your FICO score is below 660, you have some work to do. Find a qualified credit counselor, make a plan and stick to it. If you are not able to do this, then you are not ready to purchase a home.

• Owning a home is NOT an entitlement. It requires hard work and planning. BUT if you are able to put in the effort, you CAN be a homeowner within 24 months. If not, well, I have rental for you. You can pay my mortgage.

OK Sellers, your turn:

• If you don't need to sell, then take your property off the market. You will not get "lucky" in this market and you may very well have to "give your house away". If you can wait, wait. Enjoy your home. Do some gardening and some painting. Make it look fresh and enjoy it. Hey, at least you have a home. Go dish out some food at the homeless shelter and thank God, everyday, for your blessings.

• If you need to sale, find a qualified REALTOR® and take their advice. In this market it's all about the price. Look at the bright side, if you have to under sale your house, you should be able to make it up on the buying side. Don't let this market scare you, just be smart. Houses are STILL selling.

Now let's see...........who did I leave out? Oh I know...REALTORS®!!!

• Learn your market. You must become an expert at pricing. In this more difficult market, there is no room for "Zestimates". Just thought I would throw that in there. But seriously, pricing is the key in this market. Get it right and your Sellers will love you. Get it wrong and....well, I'll come behind you and get it right.

• Increase your listing inventory. Now is an excellent time to increase inventory. The more inventory you have, the better chance you have, of getting some homes sold. It's also beneficial for your Sellers. Listings attract Buyers. Just make sure your inventory is priced properly and the Sellers need to sell.

• Increase your advertising budget. For some reason, REALTORS® make the big mistake, of decreasing marketing dollars, when times are slow. Don't do it!!! Now's the time to spend some serious bucks to generate those listings and Buyers you need. "But Broker Bryant I'm not making any money" Well, what did you do with all the money you made in 2004 And 2005? Spent it? Rookie!!

• If you have Buyers that have been pushed out of the market, don't abandon them, help them with the Buyer steps I outlined above. Get them on a plan and call them every now and then to make sure they are on track. Help them when they are ready in a couple of years. Why not? Are you going somewhere? Real Estate is about building long term relationships. If you haven't been doing that, now is a great time to start.

And...Subprime Mortgage Brokers...May I please have...two all beef patties, special sauce, lettuce, cheese, pickles, onions on sesame seed bun.

OK, this post is getting too long, so, I'm going to stop here. Folks, maybe the things I just mentioned are harsh but so what? Real Estate and home ownership is not a child's game. It needs to be taken seriously. So roll up your sleeves put on your work boots and let's go help some folks get through this difficult market. I know I will. How about you?  

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved  

Hi folks. Lately I have been selling quite a few REOs (banked owned) property. As you know if you deal in these properties the sellers (banks) always offer them for sell in "As Is" condition. No biggie since most of my Buyers are experienced Investors.

"As Is" in Florida means As Is with right to inspect. This means the Buyer normally has 7-10 days to have the property inspected after a contract has been accepted and signed by all parties. If during this inspection the Buyer finds structural or mechanical issues that they weren't made aware of during negotiations the Buyer can cancel the contract and get their deposit back.

In Florida, a Seller is obligated by law to disclose to a potential Buyer any material defects that the Buyer cannot readily see that affect the value of the property. Banks, no matter what they think, are NOT exempt from this disclosure.

Recently I have been negotiating for a Buyer to purchase a REO property. The property is only 2 years old and has never been lived in. After several counters the Bank has finally accepted our price BUT they want to close in 2 days (impossible) and they will not let the Buyer inspect the property. Can you say RED FLAG!!!!

Anyway, here is the Email I sent to the listing agent:

Hi XXXXX,   I have just left a message  for the buyer. I'm pretty certain he can close the first week in March but I have asked him for a definitive date. The corporate name on the contract is correct.

We will not purchase the property without an inspection period. So the lender just needs to get over that ridiculous request. That property has been sitting vacant for too long and it is very possible that central heat and air are frozen. Also the lighting in the kitchen is all coming out of the ceiling. The buyer is willing to accept "as is" assuming there are no major structural/mechanical issues uncovered during the inspection period.

The seller's unwillingness to let us have the property inspected tells me they are aware of an issue and are hiding it. They either want to sell or they don't. No inspection is a deal killer for almost all buyers. Anyway as soon as I hear back from my buyer I will let you know his response. Thanks for your efforts.
*****************************************************************************

Within minutes I received this:

FYI  This homes has a skylight that leaked (flooded from the skylight in the kitchen. It effected all the walls, floors inside area in kitchen, laundry room, living and dinning room area.  The mold has accumulated & there was a terrible blackening of the molding & area around the skylight & fixtures and it began to smell.  I had Solivita do the entire kitchen, ceiling,walls, floors etc to fix it & do the right job. The electrical outlets, wires etc were all replaced & fixed.

As of right now that home has been put back correctly & no charge to the bank or to the owner.  I worked very hard to get this home redone.  You know how builders can be. Since the home was never occupied nobody was aware of its condition.
******************************************************************************

Folks, that email was sent to the current agent from the previous agent!!!

The lesson here is to NEVER accept a contract where the Seller will not allow an inspection. It is obvious to me that this Seller was fully aware of these issues. As most banks do, they feel they are exempt from laws that were put in place to protect the public.

It would have been very easy for me to persuade the Buyer to go through with this transaction. It's a brand new house......what could possibly be wrong? Well how about extensive BLACK MOLD!!!

Watch yourself out there.....the Banks may very well be jeopardizing your lively hood. What say you?

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved  

The last teleconference went so well I thought I'd give it another whirl. If you are not sure you want to deal with short sales or just need some basic steps on how to work them, you'll want to tune in. See you on the 7th!!!!

Hi folks. You don't want to miss out on this one. Excellent vacation home currently being rented out by the night. On site management. Marina, pool, clubhouse and so much more.

97501 Overseas Hwy Unit 611
Key Largo , FL 33037

Co-listed by Tutas Towne Realty, Inc and Coco Plum Realtors, Inc