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This house is listed for $1,340,000. Do these pictures do the listing justice? When most buyers start their search for a home on-line, good quality pictures are extremely important. They could be the difference between someone calling to schedule a showing or moving on to the next house for sale.
According to the Mortgage Bankers Association, new record low mortgage rates caused refinancing activity to increase by 21% last week. Applications for new mortgages were down 8.5%, mainly due to the more stringent requirements for FHA mortgages that took effect on October 4.
The recent decision by some banks to freeze their foreclosure process while they investigate their procedures for handling foreclosures has a mixed effect on South Florida’s real estate market. While it may be a good thing for distressed owners who really want to keep their homes, it is probably not a great thing for current buyers and the overall real estate market. The reality of too many homeowners who bought at the height of the market, owners who are currently underwater, unemployed, or simply bought way more house than they could afford when banks were in a lending frenzy, means the majority of homes in foreclosure now probably will still be there at the end of the investigation. Yes, there are stories of homes foreclosed improperly, including that of an owner who had paid cash on the house, and many of the banks and their foreclosure attorneys have become mills that may have filed paperwork incorrectly or downright fraudulently (this is the fraud capital of the United States, unfortunately). These procedures should be investigated, stopped and punished. In the meantime, buyers who are currently under contract are in limbo and the real estate market, which has been slogging through high inventories, may slow since approximately 40% of the home sales in South Florida are made up of bank-owned properties.
I would think that in today’s economy everyone would be striving to perfect the art of customer service. I rely 100% on referrals for obtaining listings and buyers and know one of the reasons I do well is because I strive to provide great customer service. I have had two experiences lately where customer service was not bad, it was absolutely non-existent. In the first one, I contacted several pool companies to give me an estimate on diamond-briting my pool. Out of the three companies that I contacted, only one came by and followed up with a quote and a phone call to see if I had any questions regarding the quote. I contacted one of the companies again, only because they are well known and I figured anyone can make a mistake, and they stood me up for a second time. Sorry, but if I have to work that hard to give you work, I can’t imagine how hard I will have to work once you have my deposit.
The second instance is actually with a company I recommended to a client. I had referred this company before with rave reviews. This time however, my buyer is completely unhappy because a project that should have taken 3 weeks has taken two months, she tries to get people out to the house to finish the work, they set a date and time, don’t call or show up, and no one in the company has called to follow up, apologize or explain the delays. My client is patient and understanding, but the lack of communication has led to her frustration. To stress how important customer service is: in this case, I was at a gym class today and someone asked the group where my client was. Several women started saying that she was having nothing but problems with the house (I sold it to her) because of the company installing the windows (I recommended the company). One woman asked, “What is the name of the company so I can avoid them”? Imagine if my client had been happy with her windows. Instead of having 8 women who will avoid this company like the plague, they would have been referring them instead! In addition, I will no longer feel comfortable referring this company, as it has affected my reputation as well. So instead of taking Yosemite Sam’s view of complaints, use them to perfect your customer service.
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Too Much Technology?
Yesterday was my tech meltdown day. I am a people person, but I have been buying all of the latest gadgets to simplify my life. I use my iPhone 4G for giving “live” walk-throughs of properties for my customers; an iPad to show comparable properties to buyers and sellers and make presentations on the fly; and a computer for e-mailing, blogging, preparing mailers and flyers etc. Yesterday, my phone froze up completely and wouldn’t hold a charge and my e-mail was so full it would not let me send e-mails out and actually required my contacting tech support (of course it was after 6 pm). So, for what I needed yesterday, all of my technology was useless.
After a brief freak-out on how dependent I have become on technology, I went back to the basics and printed out hard copies of the lease and sale and purchase contract I was preparing and hand-delivered them to my customers. I really like what technology can do to help me make my job easier, but nothing beats the face-to-face meeting and conversations!
Not a surprising trend considering the unemployment rate and related decrease in consumer spending.
The new “AS IS” contract has changed to clarify areas that were vague in the previous contract. These clarifications include, but are not limited to:
- An itemized list detailing the personal property that Buyer and Seller agree is to be included in the sale. Note: if there is a specific light fixture you want, to include/exclude from the sale, you should specifically note it in this section. A chandelier can easily be changed and is not considered a fixture.
- Clarifies that “All deposits paid or agreed to be paid” are the deposit and it is this entire amount that is in jeopardy should the purchase not go through and the deposit be in dispute.
- Clarifies that an executed copy of the contract needs to be delivered to all parties in order for it be accepted.
- States that if “Property related conditions of the Loan Commitment have not been met (except when such conditions are waived by other provisions of this Contract) that Buyer can get the Deposit back. So basically, getting a commitment with conditions is only worth the paper it is written on.
- Specifies the costs to be paid by Buyer and Seller.
- Has a special “Miami-Dade/Broward Regional Provision” for providing title evidence and insurance.
- Uses Calendar days instead of Business days in computing time periods.
Overall, these changes help both the Buyer and Seller by setting the expectations for each party. Let me know if you would like a copy of the new “AS-IS” contract. For clarification of the contract and legal opinions, please contact your attorney.
The new “AS IS” contract has changed to clarify areas that were vague in the previous contract. These clarifications include, but are not limited to:
- An itemized list detailing the personal property that Buyer and Seller agree is to be included in the sale. Note: if there is a specific light fixture you want, to include/exclude from the sale, you should specifically note it in this section. A chandelier can easily be changed and is not considered a fixture.
- Clarifies that “All deposits paid or agreed to be paid” are the deposit and it is this entire amount that is in jeopardy should the purchase not go through and the deposit be in dispute.
- Clarifies that an executed copy of the contract needs to be delivered to all parties in order for it be accepted.
- States that if “Property related conditions of the Loan Commitment have not been met (except when such conditions are waived by other provisions of this Contract) that Buyer can get the Deposit back. So basically, getting a commitment with conditions is only worth the paper it is written on.
- Specifies the costs to be paid by Buyer and Seller.
- Has a special “Miami-Dade/Broward Regional Provision” for providing title evidence and insurance.
- Uses Calendar days instead of Business days in computing time periods.
Overall, these changes help both the Buyer and Seller by setting the expectations for each party. Let me know if you would like a copy of the new “AS-IS” contract. For clarification of the contract and legal opinions, please contact your attorney.