Destin Florida Short Sales & Real Estate by Wendy Rulnick

Even though this is a real estate blog, I have to tell a story that you might relate to. It’s about buying carpet. Yes, that’s me.  I decided to finally change out the old carpet in my house and get something new. Where did I go?  Home Depot, of course!  My adventure started with picking out the most plush and cat-stain resistant carpet I could find.  The brand happened to be Martha Stewart, (who would have guessed?).  I took the swatches home and found the color I wanted, “Twisted Pine” or some such.  I was excited, and went back to the store to arrange a “measure” of my home to get a price.

A few days after they measured, they called me with a final price quote– 25% higher than the original estimate.  “Wow, that’s high!   I’ll have to think about it”, I told them.  Meanwhile, I had to figure out what to do with all the books I’d collected over the years, so I could get them out of the way in preparation for the carpet.  It wasn’t going to be a quick process.

Almost immediately, though, the carpet company called again.  In fact, they called me every day.  My cell phone, my work phone and my home phone.  Hadn’t I told them, “I was going to think about it”? For three weeks, I would get messages on my answering machine asking me to call regarding the carpet.  After three days I was annoyed.  In fact, I considered going to a different store when I decided to move forward.

My thoughts turn to real estate. How could you apply this scenario when following up with new buyers and sellers who are are the fence about meeting with you, listing, looking, etc?  After the initial conversation,  how often can you call without being annoying?  What is the opposite of being "annoying"?  It's being "polite"!

Here are my quick hints on how to stay “polite”:

1.  Ask if you may follow up

2.  Ask when you may follow up (“May I call you on Monday?”)

3.  If they say they are going on a trip, give them a couple of days to get back

4.  If they don’t  respond to your email, wait a couple of days  to try again – they might be busy

5.  If they don’t respond again after a few days, wait a bit longer

If they never respond, move on.  If the carpet company had given me room to breathe, not been annoying, and been polite, I might have already had it installed.  

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Destin Short Sales & Pre Foreclosure Help.

 Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

"What if the roof leaks?"  "What if there are termites?" "What if the home underappraises?" There are so many things that can go wrong with a real estate contract.  We, as Realtors, need to be problem solvers to help buyers and sellers achieve their goals, right? That’s our job.

Today I had a situation with an almost-signed HAP contract near Navarre, Florida.  The seller and buyer had negotiated back and forth, through their agents, and finally had a meeting of the minds.  I was readying the last changes to the contract, when I got a call from the buyer’s agent.

“The buyer is concerned there is a stain on the ceiling.  He thinks the VA appraiser might require the roof to be replaced.”  Whoah!  We haven’t even finished signing the contract yet, and the buyer had jumped ahead to “maybe”, “what if” and “new roof”.  He really wanted the house, but feared the sale could not be consummated since this was an “as is” purchase. Apparently, the buyer had run into a situation where he tried to buy a home before, and had this very issue.  So, the stain became “new roof”.  (Usually, an odd concern is the result of some past incident, by the way).

The agent was calling me looking for solutons, as her buyer might not sign the contract.  Click, whir, buzz.  (That’s how my mind works when presented with a real estate problem.) After I read the property disclosure to the agent, describing how the leak occurred years ago, and not since, I told her the following:

 “We have three, four, no five solutions to this potential problem."

1.       The buyer could make repairs himself prior to closing if necessary.
2.       The buyer would not have to buy the house if his inspection was unacceptable.
3.       Even though the sale was “as is”, the buyer could still “ask” the seller for help with the roof. 
4.       The buyer could spend a couple hundred dollars on a roof inspection, and ease his concerns.
5.       The seller could ask HAP to assist with repairs, even though that was not likely.

I am sure there are more solutions, but these just spun out.  Whew.  Relieved the buyer’s agent went back to the buyer and thought she could work it out.

When a problem happens with your real estate sales - don't panic. Calm down, and turn on your computer.  That's when the fun begins- using our brains to come up with solutions.  See how many you can find, present them to your client, and don't let "what if's" stop your sales.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

I had two offers come in on one of my Destin Florida listings this week.  One was received a day later than the first. Due to logistics, I presented both at the same time to my seller.  The first offer was significantly higher.  The second offer was ten percent lower than list price, and had no financing contingency.   I advised the seller of her options: ask for “highest and best” from both parties, counter one, reject both or accept one. The seller chose to accept the higher offer.

During negotiations, there were misconceptions from both agents about presenting and accepting offers.

1.  The “losing” agent said: “You should have told me there was another offer.  How unprofessional.” He believed the common fallacy that the listing agent must inform the buyer’s agent that there is another offer.  But should I have? Only with my seller’s permission.  Why? Check out Realtor Code of Ethics Standard of Practice 1-15: 'REALTORS^®, in response to inquiries from buyers or cooperating brokers shall, with the sellers’ approval, disclose the existence of offers on the property.'

2.   “My offer was first!”, the “winning” agent told me.  He implied his buyer got extra credit and was entitled to the sale because he sent his offer first.  Hmmm? Really?  In truth, sellers don’t have an obligation to negotiate with or accept offers in the order they were presented.  

The bottom line is – the seller calls the shots when negotiating real estate offers.  They can choose to respond, or not respond.  They can decide how much and with whom.  They can tell their agent to disclose the existence of another offer, and even the amount if they want.  Or not.  And the listing agent’s job?  Follow their seller’s their instructions.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-487-9639 or local 850-650-7883

Email Wendy: itswendy@rulnickrealty.com

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

If you are in a short sale situation, you may have heard of HAFA, Home Affordable Foreclosure Alternatives.  If you qualify for this federal program, you may get waiver of deficiency, $3000 relocation fees and up to $6000 to pay off any junior mortgage lien.  The paperwork to get approved is not slight, but it might be worth it!   

What is the paperwork required for HAFA?

-Hardship Affidavit explaining your situation

-Request for Modification Affidavit (RMA)

-Utility bill (gas, water, electric, etc)

-Frank-Dodd Certification form acknowledging you have not been convicted of mortgage or real estate related crimes in the last ten years (including theft, fraud, larceny, forgery, money laundering, tax evasion)

-Your most recent tax returns with all schedules

-Last two paystubs or proof of other income, or if self-employed, last quarter or year-to-date profit and loss statement

-Copy of divorce decree

-Copy of death certificate if co-borrower is deceased

-Homeowners Association bill or statement showing dues

-Your most recent W2

-Power of attorney if applicable

Overwhelmed?  I’ll make it easy (or easier!) for you.  Call me for assistance with your Destin, Sandestin, Santa Rosa Beach, Crestview, Fort Walton Beach Florida HAFA short sale.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

Today’s trend in short sales is "waiver of deficiency”.  A short sale is where a property is sold without enough proceeds to pay off the mortgage debt. A "waiver of deficiency” is what happens if the lender accepts the short sale proceeds as payment in full, and cancels the balance of the debt. 

It used to be difficult to get waivers of deficiency from companies such as Bank of America and Chase.  Now it is getting a bit easier, albeit not less painful for the homeowner.  Typically, a cash contribution or promissory note is required for the lender to issue a waiver.

If a deficiency waiver is not issued, there is a chance the lender will pursue the borrower for the balance of the note after the short sale closes.  They may sell the note to a collection agency and might seek all legal means to get the monies owed, including a deficiency judgment in Florida.

Not all short sale sellers want a waiver of deficiency. Some have a higher tolerance for the uncertainty of future collection efforts. I’ve had recent short sales in Destin and Fort Walton Beach Florida where the homeowner states:  "I know I owe the money.  I will pay the bank later.” or "I cannot come up without enough funds now to contribute to the loss.  I will deal with the lender if they contact me.”

Even if a property is sold without a waiver of deficiency, there is a chance the lender may not pursue the homeowner for the balance due.  It’s always best to consult with an attorney to discuss short sale deficiency scenarios.  Given options – each seller needs to make his own decision during short sale negotiations.

Learn more about Short Sale Negotiations on the new webinar by my www.ShortSaleSuperstars.com partner Bryant Tutas and me.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

Sometimes, as a real estate agent, you don’t hear what consumers really say.  Well, I did the other day.  I was at a friend’s home and the neighbor across the street, “Marcy”, starting talking about her move.  Her Destin Florida home had been for sale for months, and it seems she wasn’t happy.

Marcy said, “My real estate agent does nothing! She has never shown the home herself!  All she does is call me once a week and ask for a price reduction.” 

What’s wrong with this picture?  I bet this real estate agent was probably working hard to sell her listing.  The problem was--  she failed to explain that to Marcy. 

So what’s the first thing you, as a listing agent, might explain to a new seller?  You probably won’t personally bring the buyer for their home. Statistically, another real estate agent will. (The median number of their own listings Realtors sell is "one", according to the 2010 NAR Member Profile, compared to selling four of other's listings.) The result you seek is the sale of their home, no matter who sells it.

The next thing to explain is what you do for marketing.  Marcy didn’t think her agent was doing a thing.  That could be totally false.  Her agent may have been a marketing guru.  But Marcy didn’t know. So, tell your sellers what you do.  What types of advertising, how often? How else do you ensure there will be a sale? Let your seller know you are working, even if you aren’t showing.

What did I do?  I said a good word for Marcy's agent, whom I didn’t know.  I told her that statistically agents don’t sell many of their own listings, and that her agent was probably working very hard behind the scenes.  And I wished her the best of luck!

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

It's that time again!  Bryant Tutas and I are going to be teaching a multi-part short sale class in February.  Stay tuned, and bring on your questions!

When you are representing a buyer in a real estate sale, do you remember who your client is?

I recently had an agent call to let me know he was sending me an offer on one of my listings.  We chatted a bit, and I mentioned how much I liked the property. He said, "So does my buyer.  In fact, when she walked in she said 'I HAVE to have this home!'" Bingo.  I knew I was going to sell it. Now I was armed with confidential information - the buyer's motivation.

The offer came an hour later.  It was 15% lower than list price.  The Destin Florida home was a short sale, and I knew that price probably would not work with the lender.  The seller thought it was low, too, but was afraid to counter and risk losing the buyer.  I told him not to worry, because the buyer's agent had given away his client's position!  He "HAD to have that home"!

We counter-offered at a higher price, and the buyer accepted.

This is just one example.  Today, I had another low offer on one of my listings.  The buyer's agent presented it and stated "the buyer will come up".  I thought, "Thank you for letting me know! I will inform the seller."  Maybe you think giving away your buyer's position may help them.  But can you speak for your client without his permission?

The Realtor Code of Ethics states:

"When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client."

Quick!  A potential short sale seller calls you to list his property.  What questions do you ask?  Here are a few to start the conversation....

1.       Who are the mortgage holders on your property?

2.       Approximate balances?

3.       Is your loan VA or FHA/HUD? 

4.       Do you have a hardship?  If so, what caused it?

5.       Would you prefer to keep the property?

6.       Have you tried a loan modification or other type of work-out?  If so, what was the outcome?

7.       If FHA/HUD - have you started any pre-foreclosure sale paperwork with your lender?

8.       Have you applied for the HAFA program?

9.       Have you consulted an attorney?

10.    Why do you want to short sale?

11.    Do you or have you ever occupied the property?

12.    Are your payments current?  If not, how many months have you missed?

13.    Do you have enough income to pay your all your monthly debt?

14.    If you are current on your payments, where are the funds coming from - savings or some other source?

15.    Are you current on association fees?

16.    Do you have other liens or judgments?

17.    Have you had a foreclosure notice yet?

18.    Who else is named on the mortgage or deed? 

19.    Do you have funds to contribute if asked by your lender to approve the short sale?

20.    Would you agree to pay a promissory note if asked?

21.     What questions do you have for me?

For other tips on short sales, check out www.ShortSaleSuperstars.com.  There are almost 5000 members sharing information to help each other succeed with short sales.  Find out how to list them, how to sell them, how to save your sales and how to speed up your approval times.

Join www.ShortSaleSuperstars.com today- it's FREE!

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

REGrow, LLC

Destin Florida Short Sales and Pre Foreclosure Help

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

This week I dealt with two agents offering a startling contrast in styles.  Sort of like "vinegar" and "honey".

Agent Vinegar Tactics during negotiations:

"Your seller must not really want to sell.”

"How many offers have you had so far?”

"It’s not priced right in the first place.”

Agent Honey Tactics during negotiations:

"I am not Houdini, but I’ll try to do magic!”

"I’ll do the best I can to make this work.”

"Thank you!”

Which agent do you think will be more successful negotiating for their client?  Both are representing their buyers with low offers.  Agent Vinegar’s approach is an aggressive attack.  It is meant to show the listing agent that the house was overpriced and the listing agent could not sell it.  Agent Honey shows he is approachable and calls for empathy. 

Agent Vinegar will probably get the listing agent defensive and build up a wall.  Remember, agents are not automatons, they are human.

Agent Honey will probably get the listing agent to act like a teammate to get the deal done.

Which agent are you?

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.