Back to the future! Or, with all the ‘do not’s in the modern world, how will we communicate going forward?

• DO NOT CALL
• DO NOT EMAIL
• DO NOT TEXT
• NO SOLICITATION
• NO TRESPASSING

With so much technology we have many more ways to communicate than ever before in history, yet we just don’t talk to one another anymore.  We email.  We instant message.  We text.  We comment or share on social media.  We tweet.  We blog.  But, but we rarely …  talk.   What is an entrepreneur to do?

Emails are ignored.  We call it spam.  We don’t read it, we don’t even look at it.  We just delete it.  Privacy is a thing of the past.  Private emails are not private.  Email is hacked and published, who knows if they were tampered with or not.  Phone calls are digitized. They’re all saved on some ‘cloud’ somewhere.  Delete doesn’t mean delete.  And it is all discoverable in a court of law.  And the metadata is provided to government for scrutiny and potential flagging.

Corporations collect information on everything we do, everything we buy, when we buy it, what brand, how much we spend, and where we spend it.  Then they sell the information to other corporations that use it to market their products to us, often assuming they know better than we do, what we need, what we want, and how much we are willing to spend.  Microsoft comes to mind, anticipating everything they think we want, or need or  want to do and making it happen whether we want it or not.  The first time you walk into some store with your cell phone on, or browse an online retailer, you will start to see their ads in every webpage you use and in your facebook news feed within seconds, it’s that fast.

Scams are everywhere.  And it is increasingly difficult to know which goods and services are legitimate and which ones are just cons.  On line reviews are sketchy at best.  I get emails all the time from real estate ‘coaches’ saying, “I know, let’s all go onto (pick one) Zillow, Trulia, etc., and write raving reviews for one another.”  I don’t know about you, but I call that dishonest.  I even see reviews on Amazon now that are categorized as to whether or not the reviewer was paid to give their opinion or not.  What good are reviews if you’ve never met that person, or used their services, or purchased their products?

Businesses, especially small businesses’, hands are tied, with do not call lists, text opt out options, and now a proposed do not email list.   Door to Door doesn’t work any longer.  Many towns require a solicitors’ license to knock on doors, and it is as frowned upon as telephone solicitation, or spam.  No one reads newspapers any longer, at least not the print versions.

Some have turned to social media, but that has become so impersonal.  Now there are marketers who sell their services to other marketers as someone who can manage your social media content.  Really?  I don’t know about you, but I want to get to KNOW a person before I give them my business.  And civility on social media is becoming a thing of the past.  The illusion of anonymity brings out the absolute worst in people and makes them feel comfortable saying things they would NEVER say in public; things that do not in any way reflect who they truly are as human beings.  More and more I hear people saying they are staying off of social media because they just can’t take the negativity any longer.

And you can forget the telephone.  We just do not pick up our phones.  Unless we recognize the number or the name on caller ID, we let it go to voicemail, and then decide later whether or not to return the call.  It is estimated that 70% or Americans’ phone numbers are on the Do Not Call list.  Besides, who wants to be a telemarketer?  I want to be a real estate agent.  You may want to be a landscaper, or a plumber, or an automobile dealer.  But, I very much doubt you want to be a telemarketer.

What we really need is more need more information, but better information, from trusted sources.  The question is, where do we find it and how do we spread the word?  I am going to make a big prediction here.  I think, in the not so distant future, this is all going to change.  I believe that, what is old will become new again.  I think you are going to see a lot more face to face communication, in conference rooms and at charitable events, in coffee shops and restaurants, in houses of worship and in our homes.  And I think we are going to see a lot more writing, letters, books, newsletters and direct mail marketing.  I also see a return to personal referrals, from trusted advisors, friends and neighbors.  I expect that, as the world keeps getting bigger, is will start to get smaller, and more close knit, more intimate.  I think as humans we need close interpersonal relationships, we need closeness   Relationships will trump technology.  People will come before Profits.   Reputation will matter again.  And I think that will be a good thing, a very, very good thing.

Post Script:  Just read James Altucher’s monthly newsletter.  I have to buy books, two books, Filthy Rich, because I have a sick fascination with Jeffrey Epstein so I must have this book, and two, The Seventh Sense by Joshua Cooper Ramo. The point was made that humans never change.  History repeats itself. Always.  Because we are creatures of habit.  Our methodology may change but we don’t.  At the end of another article, it was recommended that, in order to be happy, people should send an email to someone they care about   I agree, but I am going to tweak that suggestion.  I am going to suggest you send a letter, a note, or a card to someone you care about and put it in the US Mail with a genuine stamp.  Why?  Because I am a romantic.  Because I keep greeting cards, at least special ones, like the one my daughter gave me a few years ago for my birthday that made me cry.  Because I love those old movies where, at the end, the leading lady pulls out a little packet of letters tied up with a velvet ribbon sent to her by her loved one while he was away at war or whatever.  Because I love Downton Abbey, where the butler comes in with a letter on a silver tray and the mail is delivered twice a day.  Let’s go Back to The Future.  Think of someone you care about, someone you owe a phone call or an email and, instead, send them a note in the mail. Because computers crash and emails are sadly lost forever, robbing us of the opportunity to relive bittersweet times, but letters are forever, just ask the National Archives.  And, who knows, maybe one day when their great grand-children are cleaning out their writing desk, they will find that note and learn something about their beloved ancestor, and smile.

Scams and Gimmicks and Cons, oh, my!

I got a telephone call today.  The voice on the other end said, with a very heavy Asian accent, “Am I speaking to Suzanna,” (or Susan or some other iteration of my name)?  “Yes, who is calling?”  “Oh, hello Miss Suzanna, I am calling from the US Government Department of Grants.”  I fell on the floor laughing then hung up.  There is no US Department of Grants.

Then, later I got a text message, “You have been approved for a loan of up to 5000 dollar (not dollars with an s, dollar, my evil twin was now speaking in an accent inside my head) from GE Finance.  I sent a text back, “STOP”.  Two seconds later my phone rang, why it was GE Finance calling.  I told the gentleman, its GE Capital, not GE Finance, and hung up.

I keep wondering what it is that keeps these people going.    Are there really people who fall for this stuff?  There must be, otherwise, why would they go to the time and expense of setting up a call center, hiring and paying actual people to man the phones.  How could anyone be so naïve?

I wondered, am I just more savvy than the average person?  I suppose, if it were not for my paralegal training, and the fact that I have always been interested in government, law and politics, I might not realize there is no US Department of Grants.  In fact, I freely admit, I once got a call from the US Department of Revenue demanding payment.  I had filed an extension, so I told them when they collected from George Soros and Al Sharpton, to call me back, but until then to shove off.  And then I laughed.  I only learned that the IRS doesn’t call people when I relayed the story to my tax preparer and she educated me.  The IRS never calls people, not ever.

Then, today, it was on the front page of all the big newspapers, 70 call center employees were arrested in India for scamming thousands of US citizens by claiming to be calling from the IRS and threatening them with all kinds of mayhem if they didn’t pay their back taxes.  The scam was highly successful.

And, as I read the article about the IRS scam, I found the answer to my original question.  What keeps them going?   The operation netted around $150,000 per day, nearly 700 times the average wage in India and the callers were given a 70% Commission.  Oh, my, that sounds familiar, a 70% commission split, where have I heard that before?  Apparently, the temptation to use scams or bait and switch tactics is particularly strong in industries where income is based 100% on commissions.

Maybe I am not more savvy than the average person.  Maybe I am just more skeptical because I work in an industry where revenue is based 100% on commissions; an industry that has some pretty effective scams itself.  Take, for example, that old gimmick, “Your home in 59 days or less GUARANTEED or I’ll buy it myself.”  I just saw this emblazoned on a real estate vehicle last week.  Oh, they’ll buy your house, all right.  For about 50% of its fair market value!  Read the small print.  And yet, the scam works.  Time after time.

So, how can you protect yourself from real estate scammers?  Ask me.  Please.  If something just doesn’t sit well, call me, email me, text me and ask me.  I promise you, none of my readers will fall for these scams, not if I can help it.  I may not be able to educate the world about all these scammers, but I can educate those within my reach, my clients, my  colleagues, my family, my neighbors and my friends.

Disclaimer : The opinions expressed herein are those of the individual agent and author, and in no way reflect the opinion or policies of Century 21 International, Century 21 NJ (Master Franchisor), or Century 21 Joe Tekula Realtors.

The Art of Cooking – A Documented Approach

When I was still taking ballroom dance lessons, my instructor used to complain, I never cooked for him.  All the other ladies cooked for their instructors, why not me?  I think he was jealous of the attention.  So, one day I cooked for him.   I made him my signature dish, Chicken Piccata.  “Wow, this is really good!” He seemed genuinely surprised.  “I know,” I said. “But you don’t cook.”  It was true, my kids were grown and living on their own, so there was just me most of the time to cook for, and I rarely made the effort.  “I don’t cook often,” I responded, “But when I do cook, I cook very well.”

There is a certain art to good cooking.  It takes time, and planning.  It takes patience.  And it requires a great deal of attention to detail.  You need the best ingredients, in the exact proportions, at the right time, mixed just so.  You need the freshest and highest quality meats, fruits and vegetables, cheeses and herbs and spices.  You need the proper tools.  And you need impeccable timing.  You need a recipe, a documented approach.

Take my Chicken Piccata, for example.  The secret is this, you have to pound the meat.  It breaks up the fibers and allows the meat to cook very quickly, all of which makes the finished product so tender it melts in your mouth.  You can’t buy it thin sliced, that doesn’t break down the fibers.  You have to pound it, you have to put it between sheets of waxed paper, get your mallet and pound it.  It takes time.  It takes effort, and it takes patience.  Once you have pounded the chicken, the whole thing can come together very quickly, 30 minutes or less, but you have to pound the meat.

Like dancing, it all looks so easy and effortless to people who don’t realize the study, practice and experience required.  And of course, THAT is the sign of a really good cook, or dancer for that matter.  It looks so easy, but those who watch closely know the skill and talent that goes into it.

It’s much the same with real estate.  You need to have a documented approach.  You need to know the market, what homes are selling for in that particular neighborhood and why.  You need to know the buyers, where they look for homes, how to capture their attention and what they are looking for in a home, then gear every marketing tactic and strategy to those particular buyers.  You need to know exactly what needs to be done, and by whom, and when and how.  And you need the right person for the job, and you need to gain the cooperation of everyone who is involved in the sale to make it all happen.  Think about an orchestra leader, managing first the string section, then the wood winds and the brass.  It takes skill.  It takes patience and attention to detail.

To create a superior product from your home, one that stands out from the competition, and in a positive way, one that will command the highest price, is no easy task.  It takes patience and timing to negotiate the best deal and to manage all the stages of a successful sale, preparation, marketing, price negotiations, home inspection, and financing issues that result in a smooth transaction.  You need to do the same thing, over and over and over again, with only an occasional tweak here and there, much as you would a recipe, in order to achieve a superior result, time after time.

If you would like to know more about my documented approach, my ‘recipe’, you can get a free copy of my book at http://www.freebook4centralmorris.com.

And, if you email me, I will even send you my recipe for Chicken Piccata.  After all, what realtor doesn’t send out recipes?  LOL.

Disclaimer : The opinions expressed herein are those of the individual agent and author, and in no way reflect the opinion or policies of Century 21 International, Century 21 NJ (Master Franchisor), or Century 21 Joe Tekula Realtors.

How to be less stupid or how I found social media life hack and got a whole lot smarter in the process

I stole the title from a terrific book I am reading, Choose Yourself by James Altucher.  Highly recommend it!  Anyway, I was reminded of all the crap, the garbage, the stupid stuff, that clutters up my mind, leaving less room for smart stuff, for new and innovative ideas, and for loving thoughts of family and friends.

Those of you who know me, know I am a political animal.  Politics fascinates me (so does the holocaust, so you see where this is going, right?)  I am a complete cynic when to politics.  I am a ‘throw them all out’ kind of voter.  I have voted as often for Democrats as for Republicans, and for Independents whenever I find both major parties ridiculous.

This year was different, though.  For the first time in a very  very long time, I was actually hopeful.  I found a candidate I could actually support!  I mean, not just because I couldn’t stand the other guy, but actually SUPPORT!  I was optimistic, I was hopeful, I was anything but cynical.  Well, that didn’t last long.  For the past too many months, I have watched, and read and listened, as the political landscape became more and more of a horror story.  I saw my friends getting caught up, on one side of the other, in the hateful rhetoric of the other side, and then start to spread it around.  And I was becoming more and more disgusted.  But,  like a horrible automobile accident, or a train wreck, I just HAD to look.

Why was I letting all this crap enter my mind in the first place?  I mean, at some point, you have to say, there is really nothing I can do about this, it’s a waste of my energy and thought processes to even dwell on it, and to move on.  I have made up my mind how I am going to vote in November, none of my friends will be happy with my decision, and I don’t really care.  It is MY decision, MY vote and I will do as I see fit!  And the absolutely only reason to even pay attention at all is to see if some cataclysmic event can change my mind, which I highly doubt.

And when I determined to look away, lo and behold, an idea came into my mind.  Facebook Filters (and Twitter, and Snapchat, and a whole host of other social media platforms as well)!  See, I was getting smarter already!  THEN I discovered, they already exist!  and I just had to share with you all (like you didn’t already know, being infinitely smarter than I am.)

Whenever someone posts some dribble that makes you see red, click on the little arrow that is up and to the right of the post.  You will get a drop down menu and one of the options will be ‘hide everything from http://www.hatemongersRus.com!  Easy Peasey.  I have been doing this or two days now.  My brain is starting to clear!  I can keep the stuff that is actually, you know, informative and deep six the rest.  AND still keep all my friends!

Life Hack indeed!  I don’t know about you, but I feel less stupid already!  Can’t wait for those creative juices to start flowing again.  Bring on the smart stuff!  And the creative ideas!  Not to mention the peace, love and harmony! What has this got to do with real estate?  Nothing, not a thing!  See. I told you so this would happen.

Disclaimer : The opinions expressed herein are those of the individual agent and author, and in no way reflect the opinion or policies of Keller Williams International, Keller Williams NJ (Master Franchisor), or Keller Williams Realty Metropolitan.

The time has come, the Walrus said, to talk of many things, Of politicans and real estate agents, and cabbages and kings…..

Political parties are a lot like real estate brokerages, they both let anybody in.  To join a real estate brokerage you need a license.  To join a political party you need only to be a citizen of the US.  That’s it.  No criteria, not vetting, no background check, nothing.   I was once told that the employment interview for real estate agents goes like this, they hand you a cold mirror and ask you to breathe on the glass.  If there is condensation, you get the job.  It’s even easier to join a political party, you don’t even need the condensation.

The result?  You get two of the most distrusted, disliked individuals in the country to choose from for the next leader of the free world.  You get a choice between corrupt and crazy.  You get an agent who, when faced with a failed septic inspection, says he ‘knows a guy’ who will write a phony inspection report saying the system works perfectly, so your buyer can get his mortgage, as if this were a used car (True story); or someone who suggests that, if your clients are concerned about radon gas, a known carcinogen, (another failed inspection story) they should just open a window.  (Her seller was dying of lung cancer, BTW, which just makes it more ironic.)

I have always said, if someone really wanted to change the real estate industry they would actually conduct an interview, with real questions, and criteria for employment at their brokerage, instead of taking any warm body that walks in the door.  But they don’t, that is not how most real estate franchises work.  They reward the individual offices for recruitment, and never mind who they recruit, as long as they have a license, breathe air, and can pay the monthly fees needed to keep the brokerage afloat.  Rarely is one asked to leave, though it does happen from time to time, but generally not until AFTER the agent has been caught behaving unethically.  Sadly, that puts the agents who ARE ethical, honest, and conscientious at a disadvantage.  How are you, the consumer, to know?  On line reviews?  I can show you an email from a broker saying, “Hey, I know, let’s all go on line and review one another,” again, with no vetting whatsoever to weed out the incompetents, the unethicals or the unscrupulous.  Hire a ‘top producer”?  Yeah, we’ll talk about that later on too.  What about the guy who says he will buy your house if it doesn’t sell within so many days?  Better read the fine print.  So, what is the consumer to do?   I am glad you asked.

I am on a mission.  It’s going to take a little time, but I have a plan and I have a goal.   My goal is to be a ‘protector’ for my clients, past, present and future.  Buying or selling a home is one of the most complex and expensive transactions they you will ever be involved in.  I started this newsletter for a purpose, and it’s not to send out recipes, or home maintenance tips.  You can find those anywhere.  I started this newsletter (and blog and, soon, podcast) to be a light house on a stormy sea; to provide a warning signal in the fog of the real estate business, to shine a light on unethical, incompetent, and unscrupulous practices and behaviors, and to warn about bait and switch tactics agents use to get your business, then leave you in the lurch.  My goal is to guide my readers to be a safe haven whenever real estate services and advice are needed.  My blog and this, the premiere issue of my newsletter, are the first steps of the plan.  If politicians and real estate brokerages are not going to conduct real interviews, with a real weeding out process, you, the consumer, the voter, are going to have to do it yourself, and I am going to show you what to look out for.

James Altucher, whose book, Choose Yourself, I am currently reading (HIGHLY recommend it, BTW) is in the financial industry.  Mr. Altucher  said, “to blog (or write) well you need to be totally transparent or it won’t work.  So I started blogging about what was really happening in the credit card industry including all the unscrupulous practices and how merchants were being taken advantage of…Blogging is about trust.”  Later expanded his focus because, “I didn’t enjoy writing finance articles… I decided to write articles I enjoyed.. I loved writing and reading.  I also wanted to really explore all of my failures, my miseries, and my pain.  In public.  I love being honest and intimate with people.  I love building community.  I love emailing with readers.. I decided to make a shift where I was just going to say everything I wanted to say,..”  I plan to follow Mr. Altucher’s advice.  You are going to read a lot about real estate here, but you are also going to read a lot about life.

Those of you who know me are probably saying, Oh, boy, this ought to be interesting.  And for those of you who don’t, hang on, it’s going to be a lot of fun!

Disclaimer : The opinions expressed herein are those of the individual agent and author, and in no way reflect the opinion or policies of Keller Williams International, Keller Williams NJ (Master Franchisor), or Keller Williams Realty Metropolitan.

The Gentle Art of Persuasion

I had had a rough couple of weeks.  My Dad, who lives 1000 miles away, was hospitalized then sent to a rehabilitation center to retain his strength after a rather serious incident. The Marketing Director had been calling me non-stop.  She wants me to sign paperwork that would make my Dad a permanent resident of their Assisted Living facility.  My Dad wanted desperately to go home, and I hadn’t  even had a chance to discuss my Dad’s physical condition with his doctor.  She just kept pushing and pushing.  She wants to know what assets my Dad had so he could ‘spend them and get on Medicaid as soon as possible.  When I gently pushed back she got upset.

Needless to say I was in a rather fragile frame of mind when a young man from an extremely popular and reputable real estate website called to try to sell me a featured.  I told him I  was interested in his product, however, I wanted to do a little research and see if it fit into my marketing budget before making the commitment and I just had not had the time.   I told him I was not prepared to do anything at that exact moment.  The conversation devolved from there.

“I want to lock this in tonight before someone else does.” he said and I replied, that is a chance I am willing to take.  “I want to do the paperwork now.” He said, but I was driving.  “Look,” I said, “I told you, I am not prepared to do ANYTHING tonight,”  “well, if you DID, which two listings would you feature?” I know the tactics you are using, it’s not going to work, I am not prepared to do anything tonight.”  “But if you were…” It was at that point that the conversation ended.  I hung up on him after asking, “Which part of ‘no’ don’t you understand?”

The whole incident got me to thinking about my own business and the things the ‘gurus’ teach real estate agents to say and do. Guiding a client through the process of buying or selling a home is like dancing, there is a certain grace, a rhythm to it and if done properly, with patience and deference to your client, your partner, it is really quite a pleasant experience.  That analogy resonates with me because I am a ballroom dancer.  There is nothing quite like being guided around the dance floor by a gentleman who knows how to lead.  Never is your arm twisted.  Never do you feel you are being pushed around.  Instead you feel as though you are in good hands.  You feel relaxed and secure, knowing your partner will not miss a step and at the end of the dance YOU will feel like the star even though HE did most of the work.

By the same token, there is nothing as frustrating as being manhandled by an unskilled dancer who tries to lead their partner by sheer force of will and ending up feeling battered and bruised.

I have purchased products and services from sales people who left me feeling that I had made a reasonable, unhurried and smart decision.  Rarely have I purchased a product or service from a pushy sales person, who made me feel unprepared, clumsy and off balance.  As for repeat business, well you can imagine who manages to retain MY loyalty!  That’s why they call it the GENTLE art of persuasion!

I HATE Gimmicks

It was very impressive. That’s what he said. And I suppose he was right, on the surface, if you were a novice at real estate, it would make an impression. I mean, after all, she had this big portfolio she carried around. It is also completely self-serving and totally ineffective. My client, unhappy because his home had not sold in the first week on the market, (never mind that he ignored all my advice and insisted on over pricing the home by a full $50,000) decided to consult with a ‘top producer’ and compare her marketing to mine.
So, what was this plan that he found so impressive? Gimmicks. Smoke and mirrors. Hokum. It was the same old nonsense that ‘top producing agents’ have been peddling for the past 20 years. She would send Just Listed post cards to the neighborhood. And not just any postcards, OVERSIZED post cards! YAWN! She would put an ad in the newspaper! NOW THAT’S INNOVATIVE. And she would send out an ‘email blast’ to all the other agents in the area. DO YOU READ SPAM? Yeah, that’s what I thought.

Do you know why real estate agents send Just Listed and Just Sold postcards to the neighborhood? It’s not because it gets your home sold. It’s a tool to help them find other people who might want to sell their home. IT’S NOT TO MARKET YOUR HOME. IT’S A TOOL THEY USE TO MARKET THEIR OWN BUSINESS. Same with newspaper advertising. IT WILL NOT GET YOUR HOME SOLD. It will, however, make the agent look like a big name, a Top Producer.

Now, there is nothing wrong with marketing your business, you should market your business, but to indicate they do it to get your home sold is just not true. So here is a person, asking you to entrust them with the marketing and sale of your most valuable asset, your home, and the first thing they do is lie to you. How is THAT trustworthy?
That is one of my pet peeves about real estate agents, they lie. It’s not their fault, it’s what they are told to do, but nevertheless, they call you and say, “I see you are selling by owner, I have a buyer.” They don’t have a buyer, 90% of them are lying, it’s what their ‘trainers’ tell them to say. Or they say, (another of my favorite gimmicks that we will explore in a future issue), if I can’t sell your home in 90 days I will buy it myself! Guaranteed! Hogwash! Read the fine print.

Interestingly, when I looked into the record of that so called ‘top producer’ and her empty promises, I found a fraud. Her actual marketing stunk. She rarely had enough photos on the internet, she had not one virtual tour and a full 55% of her listings expired or were withdrawn from the market without selling.

Folks, if you want me to send post cards or flyers to your neighborhood, I am happy to oblige. If you want an ad in the newspaper, or in one of those monthly home magazines, we can discuss that as well. And I will even do an email blast if that is what you want. Just don’t fool yourself into thinking any of these things will get your home sold. The odds of that happening are miniscule. It will make me look good, though! LOL. Look, I am not ego driven. I am performance driven. I would much rather we spend our resources, time and money on innovative strategies that will get you the most money possible for your home.

Home is where the heart is – stories from the heart

It’s not about the money. Ok, it IS about the money, I mean, we all have to eat, right? But some of the most rewarding moments of my real estate career are the ones that provide little to no monetary compensation.

I have known Paula and Jimmy for years. Paula owned the laundromat in town when she found out she was ill, very, very ill. She had cancer, and the cancer treatment caused other issues, diabetes being one of them, and chronic pain. Like so many small business owners, she couldn’t afford insurance and because she was sick, she couldn’t keep up with the business.

Jimmy, Paula’s boyfriend, is disabled. He has a condition called trigeminal neuralgia. The condition is debilitating, so much so that they call it the suicide syndrome. Jimmy is the second person I know who suffers with it. The trigeminal nerve runs through the face. The nerve starts next to the ear and has three branches, one that goes up over the forehead, one that runs along the cheek bone, and one that runs along the jaw. In people with trigeminal neuralgia, the nerve acts up, begins sending pain signals to the brain for no apparent reason. Their faces hurts, excruciating, debilitating, constant pain. Their faces feel as though they are literally on fire, and there is no relief, no pain killer will touch it because, well, there is no cause of the pain, no injury to heal and they just have to endure it until the nerve just stops misfiring as mysteriously as it began. The pain is so severe many sufferers have been known to commit suicide, just to get the pain to stop. It’s a horrible condition. Jimmy tried, valiantly, to help Paula, and they hung in there for a long time, but in the end, they lost the laundromat.

It took more than two years for Paula’s Social Security Disability petition to be approved. Jimmy’s had been approved some years before but his monthly stipend was very small. During that time, Paula and Jimmy somehow managed to keep their heads above water by cleaning houses and taking in laundry. But they fell behind on their bills, medical bills, credit card bills, and, yes, their mortgage payments.

A little over a year ago I hired Paula and Jimmy to clean my house, they do a wonderful job and their charges are extremely reasonable. It’s a trade-off, I understand if they have to cancel at the last minute because one or both of them are having a bad day and too ill to come, and in return my home is lovingly cared for at a very reasonable cost. I give them extra work when I need it, yard work, or handyman jobs, or just extra cleaning for the holidays and we have become closer friends as a result of the time spent together.

From time to time Paula and I would discuss the situation with her house. New Jersey is a judicial state, it takes a very long time to foreclose on a home. We discussed a possible short sale, but there are numerous liens on the home due to their financial situation. And the house has fallen into disrepair, as most pre foreclosure homes do.

Then, today, Paula told me the bank had filed for Summary Judgment on her foreclosure case. She was confused, didn’t really know what that meant, and what would happen next. I understand the process mostly because I spent many years as a working paralegal. I am not permitted to give legal advice, but I can explain what Summary Judgment means and how the process works, what comes next and so on, as long as I don’t dispense legal advice. So, I did just that, explained what comes next and how long it will take, and what happens after that, once the lawsuit is done. I told Paula, stay in your home, eventually a real estate agent for the bank will knock on your door and, most likely, offer you ‘cash for keys’, a sum or money to vacate the house. At that point, take the money and move.
But, here’s the problem. Paula and Jimmy can’t afford housing, at all. Together, their disability payments are not enough to afford even a small one bedroom apartment in our area, not if they want to eat. And there is no more housing assistance, we simply ran out of money in our State. It is heart breaking.

So, I told her, tomorrow, I will contact the attorney I work with to get short sale transactions done. I am going to ask, though I know the answer, if he thinks the house qualifies for the federal HAFA (Home Affordable Foreclosure Alternative) program, and whether he thinks we can somehow convince the other lien holders to release their liens, as there is no money with which to pay them and foreclosure will leave them with nothing anyway. I am sure the answer to part 1 will be yes, it’s a major bank. I am equally sure the answer to part 2 will be no, there are just too many liens. Then I will ask if the relocation money offered to homeowners who short sell, is also available to those who agree to a ‘deed in lieu of foreclosure’, to sign the deed to their home over to the bank, saving them the trouble of further foreclosure proceedings. I pray the answer is yes, because, well… we may be able to find Paula an older, mobile home, with a monthly lot rent she CAN afford even though she can’t afford an apartment. I showed her a couple that I found for sale through our Multiple Listing System.

I told her not to get her hopes up, but that I would try. I told her it was a long shot. But, the look of relief on her face when she knew she could go home and not worry about the Sheriff knocking on her door, and that there really might be light, no matter how faint, at the end of this long, dark tunnel, was priceless. If I am successful, IF I am successful, it will be a lot of work for very little money. I doubt the home can be sold and the commission on the purchase of a mobile home is less than $500. I could make 100 times, 200 times more for the same amount of work, on a regular home sale, but then, as rewarding as a regular sale would be … it is always rewarding to see the smile on the face of the people who have just purchased a new home … there is nothing quite like the smile on Paula’s face when she turned to me and asked, “Can I hug you?”

Keep your fingers crossed and say a prayer for Paula and Jimmy and for me that I will be able to get her that relocation money and help her buy that mobile home and I will let you know how it all turns out. Either way, it was a really nice hug. 😉

Hey Suzanne! I’m planning on selling a home but it needs to be updated. Is it worth doing before putting it on the market?

The house in question was built in the early 70s. It hasn’t had many upgrades. It still has the white tile and black grout counters, original cupboards, single pane windows, linoleum floors and manual garage door opener.

If you have the money, do the upgrades. Why? Because we are dealing with what I call “The HGTV generation”. They expect every home to have Cherry Cabinets in the kitchen, travertine tile in the kitchen, baths and entry and Hardwood floors everywhere else, in fact they think carpeting is unsanitary and will trigger their allergies. They expect new, double paned, energy efficient windows and a two car garage with automatic garage door openers. If you expect this generation of home buyers to do work on the house, you had best be prepared to pay them. Any home that is listed needing, “TLC” is going to bring a much lower price than a home in move in condition.

In addition to the repairs you can see, you may want to have a home inspection done, proactively, to find out if there are any unseen areas that need to be repaired. How new is your furnace, water heater and roof? Are they in good condition in spite of their age? Does your home have public sewer and water, or do you need to also have your septic and well evaluated? Has your home been tested for radon gas? Is there any asbestos in the home? Is your property located in a flood zone? Do you know whether or not there are any wetlands on your property? All these are things you may want to consider when determining what repairs and renovations need to be done and the cost of those items.

If you do not have the time, or the money, or the will, to do the upgrades and repairs, consider advertising your home as eligible for an FHA 203K and/or Fannie Mae Home Style Renovation Loan. For a small fee, an FHA Consultant will come to the house, prepare a repair sheet and even an estimated cost to repair. Your agent can prepare an opinion of the value of the home after the renovations are done, and you can advertise a potential equity in the home to be gained by a buyer willing to do the repairs. The promise of building equity can be a good marketing tool for people selling a home that is in less than pristine condition.

The other alternative is to market the home to investors and cash buyers. These buyers are also going to want to realize a profit in the form of equity. They generally borrow the money to purchase the home and to do the renovations, on a short term basis, at a much higher interest rate than the typical buyer. And they are going to use a specific formula to determine the price they are willing to pay. The formula is this, the After Fix Up Value of the home, less the cost of repairs, less 30 – 40% depending on the strength of the market. The 30 – 40% will pay their carrying costs, interest, points, etc., for the time that will elapse between the date of the closing, through the time it takes to renovate the home, and the time it takes after the renovations are done to market and re-sell the home, plus their profit. Don’t make the mistake of thinking their profit is 40%, it is not, their profit is whatever is left after they pay taxes, filing fees, closing costs, the realtor’s fee, interest, points, etc.

Your realtor can help you to determine all these factors, costs to repair, time to repair, after fix up value, and the amount you, the home owner, can expect to net under each of these scenarios. Then you can determine whether you prefer to put in the time and effort to do the repairs yourself, or whether you would prefer to net a little less and save yourself the time and trouble.
I specialize in renovation loans. If you find yourself in this position, call me and let me help you make a well informed decision and get your home SOLD!

Hey Suzanne – I am looking at a home in a remote rural area and the only qualified agent in the area represents the seller. Would your advice be to buy without an agent to represent me or have the same agent represent me as well?

Shane says:  Hello Suzanne, I saw your informative comments on Trulia. Thank you. Thank you. I have a question that was not addressed in your comments. I am looking at a home in a remote rural area and the only qualified agent in the area represents the seller. Would your advice be to buy without an agent to represent me or have the same agent represent me as well? Would this create a conflict of interest? Would I have to pay the agent as well as the buyer? Thank you for your advice.

My answer:  The seller generally pays the commission so you would not have to pay.  I would not advise buying without an agent.  When an agent represents both the buyer and the seller it becomes a situation called dual agency.  Agents owe certain legal duties to their clients, We use the acronyn OLD CAR to remember them, Obedience, they have to do as you instruct them provided your instructions are not illegal or unethical, Loyalty, undivided loyalty, Disclosure, they have to disclose all material facts to you about the property, the negotiations and so on, Confidentiality, they have to keep confidential whatever you tell them, for example, if you were selling your home due to divorce, that might be a distress situation that puts you at a slight disadvantage so your agent would have to keep that information confidential, accounting for any money exchanged, and Reasonable care.

In a dual agency situation the only thing that changes is loyalty.   Obviously the agent cannot give undivided loyalty to two people, so… they still you the duty of loyalty but now the loyalty is divided.  This is how I illustrate it, I still owe disclosure and confidentiality so, if a seller says to me, “I am going to list my home for $210,000 but I would take $200,000.” and a buyer who I also represent says, “I am going to offer $190,000 for this house but I would pay $200,000” as a dual agent I am the only one that knows the magic number, $200,000 so, without disclosing anything to either side, I have to get both of them to $200K.  It becomes more of a negotiation and less a no holds barred fight.

I have acted as a dual agent many times and I have always had satisfied customers and never  violated my duties to either buyer or seller.  Of course you have to decide if you are comfortable with such an arrangement but there is one other thing you need to know.  The listing does not belong to the agent, it belongs to his broker, so if you decide you do not want a dual agent, no other agent in the same brokerage can represent you, either.

I wish you luck and hope this helps you understand and decide.

If you have a real estate question, feel free to contact me and I will do my best to either answer or find an answer.