Expectations

You get what you expect.

It’s one of the Great Truths that’s so true that it has become a cliche.  Think about it:  a few years back an Australian woman made millions of dollars producing a DVD and Book that said, essentially, the same thing.  Remember ‘The Secret?’  Of course, that phenomenon went into manifesting your expectations through affirmations and visualization. 

We REALTOR-types have been talking about expectations and actually using them for . . . well, forever.  We set goals, we have minimum standards and so on.   But there’s something I noticed in recent years —  during the downturn — when finding and converting business became so difficult.  Many of us adjusted our expectations down.

That’s ok.  Given the market at the time, it made sense. You have to be realistic.

But today, by all accounts, there is a big shift beginning.  Buyers are waking up and becoming so active that in places inventory is in short supply.  Sellers with equity, motivated by the prospect of getting a much nicer home for a good price are starting to show up.  Put it all together and shake it up . . . and it looks like a good market could be just a few weeks or months away. 

It’s time to re-examine your expectations, for yourself, your company and your staff.  Maybe you’ve been grateful to be closing 1 or 2 deals a month.  Maybe you’ve been ok with that agent who only manages to get one every 5 or 6 weeks.  Put that past reality on hold for a minute and think:  what would be acceptable in a reasonably good market?  Do you expect to do 10 or 20 sides a month?  More?  And your staff:  is it time to expect more from them?  Is it time to decide that a minimum of two transactions per buyer agent per month is acceptable? 

The point is this:  you can’t expect to get more than you expect to get.  Don’t let your down market expectations limit what you  get as the market improves.

Saturday Silliness: Notes to the Landlord

How could they be anything but real!

The toilet is blocked and we cannot bathe the children until it is cleared.

This is to let you know that there is a smell coming from the man next door.

The toilet seat is cracked: where do I stand?

I am writing on behalf of my sink, which is running away from the wall.

I request your permission to remove my drawers in the kitchen.

Our lavatory seat is broken in half and is now in three pieces.

Will you please send someone to mend our cracked sidewalk? Yesterday my wife tripped on it and is now pregnant.

Our kitchen floor is very damp, we have two children and would like a third, so will you please send someone to do something about it.

Would you please send a man to repair my downspout? I am an old-age pensioner and need it straight away.

Could you please send someone to fix our bath tap? My wife got her toe stuck in it and it is very uncomfortable for us.

When the workmen were here, they put their tools in my wife’s new drawers and made a mess. Please send men with clean tools to finish the job and keep my wife happy.

New Short Sale Guidelines

The Treasury Department announced new Short Sale guidelines a few days ago.  The new rules go into effect on April 10,2010 and are set to ‘sunset’ on Dec. 31, 2010.  There is lots of confusion about the new program, so here is my short, bulleted list of its provisions:

  • Borrowers must be HAMP (Home Affordable Modification Program) eligible*
  • Lenders must provide a short sale pre-approval, including minimum acceptable net proceeds, prior to listing
  • Lenders have 10 days to approve or disapprove  a short sale
  • Borrowers are fully released of liability:  no cash contribution, promissory note or deficiency judgment
  • Servicers are prohibited from reducing real estate commissions specified in the Listing Agreement (up to 6%)
  • Secondary lien holders may receive a maximum of $3,000 of short sale proceeds to satisfy  their liens
  • Borrowers receive $1,500 in relocation assistance
  • Servicers receive $1,000 to cover administrative costs
  • Primary lien holders receive $1,000 for releasing some short sale proceeds to secondary lein holders (up to $3,000)
  • The guidelines standardize processes, paperwork, time lines and deadlines in the short sale process

*To be HAMP eligible, the following conditions must be met:

  • The property is the borrower’s principal residence; 
  • The mortgage loan is a first lien mortgage originated on or before January 1, 2009;
  • The mortgage is delinquent or default is reasonably foreseeable;
  • The current unpaid principal balance is equal to or less than $729,7501; and
  • The borrower’s total monthly mortgage payment exceeds 31% of the borrower’s gross income

So, I gather that Joe Schmoe who has a stable job and good income, who wants to sell but finds himself upside down may not qualify for the new program.  And I guess that’s the problem:  this is a program for distressed homeowners, not a new set of regulations and procedures for the industry.  However, that part is still unclear to me and I expect clarity to come as we get closer to April 10.  As I learn more I’ll pass it on to you.

If you’d like to read the full document from the Treasury Department, you can access it here.  It’s actually a pretty good piece and includes some of the paperwork that would be required in this program.

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