Brian & Rita Burke's recent post about Can A Staging Company Charge a Success Fee? inspired this blog. I went to think really hard after reading their blog about what other industry/ professions would not charge a fee until success is seen and known?

When I walk into my doctor's office, I see a sign at the check-in window, "Payment is required at time of service rendered". Then, there was one time I remembered my vet fee was over $300 only to hear my vet said that he didn't know what was wrong with Maxx's limping front paw. I paid the electrician and the a/c guy a fee to show up - before any services are rendered. I guess I will continue to pay my painter whether or not my listing is sold and it is only fair to pay the stager his/ her fees for services rendered.

Real estate agents accept the responsibility to market the property the best way he/ she sees fit. Marketing costs and time spent on these efforts are typically monies that are paid by the agents before the property is sold. So, depending on how long it takes the property to receive a successful negotiated contract, agents are continuously marketing. Flyers, website and the most expensive of these are the real estate agent's time (depending on how much this agent earns an hour).

What I had described above is the direct costs associated with the listing. Then, there are other unseen costs such as marketing themselves in order to get the opportunity to list the property.

Buyer's agents also have their own costs such as gas. When gas was over $3.50 per gallon, the business cost suddenly became double what it was just a year ago. With the 2008 real estate conditions like it is this year, many real estate agents report that sales are worse this year compared to last. With the costs of everything headed up, the cost of doing business just increased tremendously.

All real estate agents work on the contingency that a house is sold. No paychecks are received until then. All efforts prior and during the times working with the clients are dependent on that one activity: signing at the closing table. I dont get paid until you CLOSE. Not many professions could make that statement.

If you like to gain more insights to a real estate agent's checkbook, read my previous blog here: Are Real Estate Agents pretty door openers? Insights into an agent's checkbook register. It is a small portion of what goes on behind the scenes.

Would your doctor do that? Would your painter, electrician or plumber do this? I guess this is just the nature of this beast. Less real estate agents would get out of the business if we charge a service fee instead of a success fee.

Note: All contents are original. Consider subscribing to my blog for fresh business ideas, often creative and unique. It is my intentions to bring you effective blog contents that will could make you feel that it was worth your time to subscribe.

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I proudly serve and sell real estate in the northern suburb cities of the Dallas metroplex. If you are thinking about purchasing or selling your home in neighborhoods of Frisco, Plano, Dallas, McKinney, Allen, Little Elm, Prosper, Celina, Richardson, Dallas M-Streets, Dallas White Rock Lake area and other surrounding areas and more importantly, want to work with a local area expert, contact me at your earliest convenience.

It is a competitive market, hence it is important that you choose to work with the realtor who knows these communities like none other. I employ a systematic market approach in selling your home - an intentionally unique proposal that most real estate agents do not use. If you care to be on your way to a successful closing, contact me immediately to see how different my proposition will be.

Contact:
Loreena Yeo
Realtor®/ Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

Copyright © 2008 by Loreena Yeo (3:16 team REALTY).  I Don't Get Paid Until You Close.

Do Not Copy. Serious actions will be taken. Re-blog is allowed for Active Rain members on the Active Rain platform when the content is taken in its entirety and credit be given to Loreena Yeo and 3:16 team REALTY.

Magic Jack or Skype :  Which Internet Phone Do You Choose?

While cutting costs in the home office back a few months ago, I got rid of my home phone and started using Skype. I think my cost was around $29.95 a year for unlimited local or long distance calls.

I have liked Skype fairly well. Only a few issues with the sound every now and then. It also has webcam where you can see your friends as you talk and you can do conference calls. I've used this feature once.

I thought I was happy saving over $500 a year from not having a land line.

While talking with a client, he told me he was using Magic Jack on his computer and could hook up regular portable phone to it so he could carry it around the house like a regular phone.

From the Magic Jack website you can try it free for a month.

Now... that caught my interest because I'm known to multitask and pace the floor while on the phone. I haven't enjoyed being tied to a headset and computer while using Skype.

I'm wondering if you have tried Magic Jack and what you think of it. I checked reviews and YouTube videos online and it sounded good. I ordered one from the website so I could compare both.

Lizette Fitzpatrick- Broker of Lizette Realty in Richmond, Kentucky.

#1 featured Kentucky Realtor on Activerain.com and Localism.com. Publisher/Author for the only Central Kentucky email newsletter on local real estate listings and sold properties, Kentucky relocation, local events, homeowner information and fun!

For more information on Lizette, Kentucky Horse Farms, Lizette Realty, Madison County, Fayette County, Richmond or Lexington, Kentucky click on Lizette.us.

See for yourself what Lizette's extraordinary clients have to say about their Kentucky real estate experience. Copyright © 2009 By Lizette Fitzpatrick, All Rights Reserved..*Magic Jack or Skype :  Which Internet Phone Do You Choose?*

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The Outside Blog Minion Report

November 2008 In Review: Liz Moras

What can Carolyn Tann-Starr say about Liz Moras? Hmm...

Liz Moras, author of "Liz Moras Re/Max Chilliwack Realtor's Blog" is a dear friend of mine. I had the honor of giving Liz my very first LinkedIn reccommendation. Writing it was easy. Trying to make myself stop writing in that little dialog box was surprisingly difficult. Here's a recap of what I had to say:

"When it comes to sharing information on the process of buying and selling homes, Liz Moras creates a wonderful environment for her clients and new Realtors to learn in. Kind, patient, knowledgeable and friendly with high ethical standards, she works diligently to provide her clients and cooperating brokers with the most positive real estate experience possible. Not only can Liz be counted on to provide excellent customer service, she is a results oriented professional, a talented photographer and a very dedicated blogger who frequently utilizes the superior technology of the Active Rain Real Estate Network. She administers a professional virtual organization there and her work has won awards and been the subject of multiple features. I am very proud and pleased to recommend her. She is a wonderful person and a very good friend."

I mean every word from the bottom of my heart. Although we are geographically apart, Active Rain has bridged the distance across nations, making it possible for us to be together every single day while she is in Canada and I am in the USA. If we are not on Skype chatting about our lives, we are e-mailing behind the scenes or commenting on each others blog posts. We write on the walls at Facebook. We update our news streams in LinkedIn. We're gal pals in Twitter. We trade photographs and talk, and talk, and talk away when ever the mood hits us to strike up a conversation.

The Internet is a beautiful thing. It also give you the opportunity to learn about my girlfriend Liz.

She's just started a new job at Keller Williams. While in training for her new position, she came to TX and caught up with some mutual friends. With all that she had going on, she found the time to show a buddy a kindness by re-blogging a post.  She comes up with fun ways of keeping us up to date regarding her travel adventures. She will take you on a shopping spree so you can discover beautiful local spots, quick to share a smile and give thanks, she will take you on vacation and joke about birthdays. 

A very talented photographer, she takes you on wonderful tours, like through Fairfield Island, Rotary Trail, and my fave: Fall in Fort Langley.

Foreclosure rates are on the rise. It is not news anymore. In fact, it's no longer funny to banks and sellers. Both are taking large financial hits. One of Dallas Morning News Real Estate reported that 1 in 10 owners are delinquent on their mortgages and some recent data supported the fact that 50% of the work-out programs offered by banks in these delinquencies move on to foreclose on their properties.

An ALTERNATIVE to FORECLOSURE
Short sale is an alternative option for some homeowners prior to foreclosure. Short sale is a process where the mortgage lender agrees to accept a lesser amount to what is owed on the property. Homeowners that take this route walks away with a blemish credit most of the time. If you consider foreclosure as a "total" wreck in an automobile accident, a short sale is like a "fender bender". Credit still gets ding but not as bad.

These short sales are flooding the banks by tens of thousands every month. For many owners, short sales is a much better solution. For the banks, this may seem to be a good solution to foreclosures. Banks are not in the business of holding and owning real estate. The last thing they would want to do is to end up with a portfolio of real estate. Some banks reported that it costs them at least $20,000 in attorney fees, property management fees, labor and time when a foreclosure happens. Hence, banks agree to accept less than what is owed in a short sale process, especially when there is a ready and willing purchaser out there.

With the amount of short sales that come through the market right now, banks and lenders cannot process these applications fast enough. Guidelines are getting more stringent as banks and lenders evaluate how much debt should be forgiven. Some of them are not weighing the "hardship" as much. It now becomes a business decision on whether to approve a short sale or not.

Banks and lenders know the market values of these properties. They run numbers by real estate agents and appraisers. They plug that information into their risk models to see if they should take these losses or not. Evaluations are placed on the current homeowner's financial situation, realizing their encumbered income and how "delinquent" the homeowner is. If a homeowner is delinquent 1 month and the house is on the market for 30 days, chances of short sale approval is slimmer than an owner who is in the "foreclosure" process and house on the market for 200 days. Naturally, banks and lenders are more willing to take a bigger loss in the latter situation.

A SHORT SALE Example:
For example, a house is valued at $100,000. The homeowner owes $96,500. The short sale came in at $80,000. The homeowner has not made mortgage payments in 5 months and the foreclosure date has been set. The short sale is approved. The $16,500 is forgiven. With George W.'s Economic Stimulus Plan, the seller do not need to recognize this $16,500 as income. He walks away with a blemished credit, but better than foreclosure. A buyer is happy that she gets to purchase the property for less than market value. The bank ends up without the foreclosed property. A Win-win situation for everyone involved.

Thus, many of these houses, be it through short sale or foreclosures (bank-owned), lenders and investors are unloading these properties and flooding the markets with them.

What If You Are a "Regular" Seller?
Along comes Sally the regular home seller who also wants to sell her house and move-up in the market. Sally cannot sell her 100K property for 80K like her neighbor with a short sale can. Two doors down, another property for sale - also a bank-owned property. The house across the street, the seller listed the house $5,000 below market and receives a contract in 20 days. Sally the Seller has been on the market for over 6 months at her $100K listing price.

Many of these prices today are driven by solely business decisions banks and lenders make everyday. They no longer reflect the true market value.

Great Time for Buyers Today
This is where we are today. For buyers, this is an unreal signs of time to buy. However, when you place an offer, be sure to know whom you are dealing with. You can offer an unrealistic low-ball offer to banks and see if they would accept it. The chances are slim that you would see a "normal/ regular" seller accepting an offer 10-20% below market value. When negotiating, a low-ball offer may leave a bad taste in the seller's mouth's only to come back with a counter-offer that is unreasonable.

With the increase of short sales and foreclosures with supported low market prices, I see more unreasonable offers from buyers. Their explanations, "I am not sure how much lower this market will go?" They seem to make offers based on a market prediction, not based on the market value. What is the Market Value anyways?

My Frisco TX Real Estate Market Prediction
I predict the short sales and foreclosure markets will continue to affect the Frisco TX real estate market for at least another 12 - 18 months. It could even go well into 2010 and 2011. The option and adjustable rate mortgages due to adjust in the coming years. The present homeowners intended to refinance before the term is up and in addition to count on an increase in wages. Unfortunately, both of these didn't quite pan out.

Hence, this is the state we are at right now:

Contact:
Loreena Yeo
Realtor®/ Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

Copyright © 2008 by Loreena Yeo (3:16 team REALTY). Business Decisions of Short Sales & Foreclosures Create Artificial Real Estate Market Values.
Do Not Copy. Serious actions will be taken. Re-blog is allowed for Active Rain members on the Active Rain platform when the content is taken in its entirety and credit be given to Loreena Yeo and 3:16 team REALTY.

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The Outside Blog Minion Report

November 2008 In Review: Kari A. Battaglia

Kari's Outside Blog

This is a person who quotes Theodore Roosevelt when she reflects on giving thanks: "Let us remember that, as much has been given us, much will be expected from us, and that true homage comes from the heart as well as from the lips, and shows itself in deeds." Theodore Roosevelt. She also makes very interesting use of the re-blog option.

Have you seen her recipe for fresh cranberry sauce? I was happy to discover it was surprisingly easy to make and the little minions loved participating in the activity. Kari also gives great advice about protecting your laptop and shares what she learned from a friend's misfortunes. I enjoyed reading about her first Active Rain lead. I was introduced to her blog while I was Googling Eco friendly and green real estate terminology for research on an upcoming project. She wrote an interesting article on the subject and I think you may enjoy it. Don't forget to check out her link embeds.

Realtors are so much more than their listings and market reports.I hope you will take a moment to go check out her blog.

BTW, if you live near Dunlap, TN Kari has this AWESOME 15 acre spot with a wet weather creek bordering the property. I am into eye candy and I have to tell you this place is Spanking-A. It has beautiful mountain views and is only approximately 1 mile to HWY 111. She reports that the land has been recently cleared, there are no restrictions and the lot is within the city limits. How cool is that? City water and electric at main road, HWY 127 North. Will subdivide to three 5 acre lots. (Note: the owner is related to Florida license real estate professional). If you want to peek at it, call Kari. You can check it out by clicking on this link.
 

I have a thing for hardwood floors. I think they make a house sexy. So do fireplaces and a number of other optional selling points. When it comes to shopping for a property to invest or dwell in, we all have that "ooo-ahh intangible features button" ingrained in our souls where if the right bit of construction eye candy comes along it will trigger that response of momentary awe when we really, really like something. I like the smell of new construction and I like the sheen of hardwood floors. :-)

My girlfriend has these two listings that I am helping her out with. They are both gorgeous homes and new construction still in progress. I joined the project late September of 2008 and hosted an Open House there on the 27th of that month. I have been popping in and out ever since introducing her listings to my buyers while prospecting in the neighborhood. Our combined advertising efforts have generated a significant amount of interest and we are optimistic that the properties will eventually move. My current Realtor ratio is 70% Buyer's Brokerage, 20% Listing Agent, 10% Rental Agent. When I agree to hold an RSVP Open House for another Broker's listing, I invite all of my buyers to converge on that one location for a specific viewing. That home becomes my "shiny penny." (LOL) We have our regularly scheduled program of real estate transactions, which is not the same as when I go into SP-Mode.

I have shiny penny syndrome where if I like a home, whether it is my listing or not, I will work out a deal with the Listing Agent and show the listing to every single person in my database of buyers. I wont stop until every single one of my buyers has viewed that home because I have discovered that when you show the shiny penny first, people quickly come to realize what they do and don't like in a home and will revisit their ideas of what they do and don't like. As a Buyer's Broker it saves me a lot of time later on with my customers and clients because my buyers will always be comparing other properties to the ones that they know me to believe are the best choices for the neighborhood at a particular price. A shinny penny is always a RSVP event.

The cool thing about holding a RSVP Open House is that you are not just relying on walk-ins, you are holding an Open House with a guest list already intact. You know there will be some traffic unless something unforeseen comes up. Sellers like to see traffic and interest in their property. They also like feedback, so the more people one can get in, the better. It increases the opportunity to match the buyer with the home of their dreams. People rarely buy what they don't want. My job is to ascertain what they want and need. Another benefit of holding it RSVP is that when people confirm with me they are coming at a particular time I also know to wait beyond the scheduled times advertised to give these people extra time to attend their scheduled appointment. I will wait for them to show up because I will be assuming they are running late, a bit lost, or stuck in traffic. I will have their contact information to check on them to make sure that they are okay and still en-route.

I was in shiny penny mode today. I spent my week advertising my Open House: (1) sent out the post cards, (2) delivered hand written notes, (3) sent e-mails, (4) did my Craigslist routine, (5) made and distributed fliers and (6) posted in Active Rain.

I was feeling good this morning and I did a little serial commenting across a few blog posts mentioning I would not be around for a little while because I had the Open House to do... Forty minutes before I had to leave my cell phone starts ringing. My contractual buyers decided it was too cold to come out and play, seven left text messages and voice mails to reschedule. They bum-rushed my phone within minutes of each other. I started wondering if football had started or if the cold was affecting their decision not to leave (LOL). Turns out my Broker Associates could not make it either, said they wouldn't be there, gave no explanation as to why. Bummer.

Oh well... I've got a job to do, so I go out with my Open House signs and realize it is really, really freezing. I hesitate while on my way to the garage wondering if I am dressed warm enough. The highway has very few vehicles on it and there are no people walking the streets. The bus stop is empty and the wind has pulled some of the fliers down. Bummer.

The heat is not on and I'm thinking no one is going to come here so they can freeze their A$$ off at my Open House. It's gray, it's windy, it's cold out and the interest rate debate is going to have some buyers speculating and sitting on the sidelines waiting to see if the rumor is true (that rates are going to lower in a week or two). My fingers start tapping. I miss my keyboard. I miss the chaos of my kids... My eyes start crossing because I can't find Melodious and insult to injury, I forgot my laptop so I can't even play with my friends on-line while waiting for a customer to walk in off the street. Ooops, sorry, no one is walking. It's too cold! That totally whomps!

Lonely, bored, freezing, I decide to chat with my brick-and-mortar pals and check my office messages. I call my direct line first. OMG - some lady has seen my Active Rain Mixpo invitation to tomorrow's Open House and hung around on my blog long enough to discover today's Open House. Yay! She leaves me a brief message and says she's interested in the new construction. Yay! I call her. She is surprised that I am still having it because, "it is freezing outside" but is thrilled to discover I am actually on location while we are talking about the property. She says in a very excited voice that she'll be there in 10 minutes. Turns out she lives in the neighborhood and I am a very happy camper. My day is not in vain. A live body is on its way and has reserved an appointment to see one of my firms listings.

Outstanding! It gets even better: Chicka doesn't come by herself, she brings relatives! She and her sister are looking to buy! I now have two new buyers getting their mortgage through another Active Rain member who I called at home on his cell phone to start their pre-approval process while still standing around in 36 degree weather at my Open House. How cool is that? Spanking-A! Thank you, Active Rain. :-)

BTW, I will be here tomorrow if anyone is looking for a really nice 2 bedroom Co-op in Queens for $189K: 43 Seconds (Open House Video Invitation)