The Oldest Rule in Real Estate Still Applies in 2015

A few weeks ago I had a client who was looking to buy a house in Atlanta. Our offer was 90% of the asking price. In response to the offer, the listing agent said that my client should be aware that houses in the subdivision are selling for no less than 97% of their asking price. My response was that since the house is already three months on the market and the seller is paying all this time utility bills and mortgage, it means that even if my client offered to buy the house for 97% of the asking price, the seller at this point in time will net way less than that, and the longer they hang on to this “97%” concept, more money they will be losing. To make a long story short, the appraisal came in for 197,000 (higher than the asking price), but my client got it for less than that and paid 94% of the asking price. So, even in 2015 the oldest rule in real estate applies, that no matter what a seller is asking for their house (based (or not) on their agent’s recommendation) and no matter what an appraisal says, a house is worth what a qualified buyer is willing to pay for it.

No more FHA loans to houses “flipped” within 90 days -effective 01/01/ 2015

No More Flips! FHA Announces Expiration of the FHA Flipping Waiver (Effective January 1, 2015)

A big surprise from FHA – The original anti-flipping rules go into effect on January 1, 2015. That means that you will need to check your chain-of-title information right away as well as contract execution dates on any FHA file to determine whether it changed hands within the last 90 days.

Effective for all sales contracts fully ratified by all parties on or after January 1, 2015.
The FHA Flipping Waiver will expire on December 31, 2014. At that time, properties that are sold within 90 days of seller acquisition are no longer eligible for FHA financing.

Two most important steps to setting your listing price

helpyousell

Compare Apples to Apples:

Your house isn’t exactly like every other on the block. It can be far better – or far worse. Here are the factors that are considered for comparisons:

Square footage: This is significant for most buyers. Some will even hunt based on square footage alone. And
when it comes to pricing, the bigger the property, the bigger the price tag.

Age and condition: Newer homes don’t necessarily command higher prices, or vice versa, but condition relative
to age does factor into price. So when comparing your home to others, stay within a five-year range.

Number of bedrooms and baths: How many your home has can radically change the price.

Amenities: The more perks, like walk-in closets, a pool, spa, gourmet kitchen, and so on, the higher the price.

Lot size: Is there room for the buyer to add on to the house or plant a sprawling…

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Two most important steps to setting your listing price

Compare Apples to Apples:

Your house isn’t exactly like every other on the block. It can be far better – or far worse. Here are the factors that are considered for comparisons:

Square footage: This is significant for most buyers. Some will even hunt based on square footage alone. And
when it comes to pricing, the bigger the property, the bigger the price tag.

Age and condition: Newer homes don’t necessarily command higher prices, or vice versa, but condition relative
to age does factor into price. So when comparing your home to others, stay within a five-year range.

Number of bedrooms and baths: How many your home has can radically change the price.

Amenities: The more perks, like walk-in closets, a pool, spa, gourmet kitchen, and so on, the higher the price.

Lot size: Is there room for the buyer to add on to the house or plant a sprawling rose garden in the backyard?

The exact acreage of your land correlates to price. When you compare your home to others, stay within .05 acres.

Condition: The condition of your house can be a deal-maker or a deal-breaker. That’s why you have to pay close attention to other homes’ upgrades to make a fair assessment of how they affect value.

Location: This relates not only to your city and neighborhood, but also to where your house sits on the street.Does it face an eyesore or busy intersection? Does it have a view? These location nuances make a difference.

And don’t forget….

List vs. Sale Prices:

The difference in percentage between list prices and actual sales prices for the homes in your neighborhood
speaks volumes about the current real estate climate. This number is a strong indicator of which direction the market is moving, and it will suggest how much under – or over – your ideal asking price you can expect to get for your home. Anyone can throw a house on the market at a high price. But the number you want to look at closely is the sale price of the home, which is much more indicative of the actual value

(Originally posted on Trulia.com)

6 Things Happy People Never Do

Written by Marc Chernoff and posted on “Marc and Angel Hack Life”.

Happy people do a lot of things. They spend time expressing gratitude, cultivating optimism, practicing kindness, nurturing loving relationships, committing to meaningful goals, savoring life’s little pleasures, and so on and so forth.

But they NEVER…

1. Mind other people’s business.
Forget about what others are doing. Stop looking at where they are and what they have. Nobody is doing better than you because nobody can do better than you. YOU are walking your own path. Sometimes the reason we struggle with insecurity is because we compare our behind-the-scenes circumstances with everyone else’s public highlight reel. We listen to the noise of the world, instead of ourselves. So stop the comparisons! Ignore the distractions. Listen to your own inner voice. Mind your own business.

Keep your best wishes and your biggest goals close to your heart and dedicate time to them every day. Don’t be scared to walk alone, and don’t be scared to enjoy it. Don’t let anyone’s ignorance, drama, or negativity stop you from being the best you can be. Keep doing what you know in your heart is right, for YOU. Because when you are focused on meaningful work and at peace within yourself, almost nothing can shake you. (Angel and I discuss this in more detail in the “Passion and Growth” chapter of 1,000 Little Things Happy, Successful People Do Differently.)

2. Seek validation of self-worth from others.
When you are content to simply be yourself, without comparing and competing to impress others, everyone worthwhile will respect you. And even more importantly, you will respect yourself.

How are you letting others define you? What would you do differently if you knew nobody would judge you?

Truth be told, no one has the right to judge you. People may have heard your stories, and they may think they know you, but they can’t feel what you are going through; they aren’t living YOUR life. So forget what they think and say about you. Focus on how you feel about yourself, and keep walking the path that feels best under your feet.

Those who accept you are your friends. Those who don’t are your teachers. If someone calls you something and it’s true, it’s not your problem because it’s true. If someone calls you something and it’s not true, it’s not your problem because it’s not true. Either way, whatever they call you is not your problem. What other people call you is their problem…

What you call yourself, and who you decide to become, is your problem.

3. Rely on other people and external events for happiness.
Unhappiness lies in that gap between what we have now and what we think we need. But the truth is, we don’t need to acquire anything more to be content with what we already have. We don’t need anyone else’s permission to be happy. Your life is magnificent not because someone says it is, or because you have acquired something new, but because you choose to see it as such. Don’t let your happiness be held hostage. It is always yours to choose, to live and experience.

As soon as you stop making everyone and everything else responsible for your happiness, the happier you’ll be. If you’re unhappy now, it’s not someone else’s fault. Take full responsibility for your own unhappiness, and you will instantly gain the ability to be happier. Stop seeking in vain to arrange conditions that will make you happy. Simply choose to appreciate the greatness that is yours in this moment, and the right conditions will start to line up around the contentment you seek.

The greater part of your happiness or unhappiness depends upon your outlook, and not upon our situation. Even if things aren’t perfect right now, think of all the beauty still left around you. A good reason to smile is always one thought away; choose to tap into it any time you like. (Read The Gifts of Imperfection.)

4. Hold on to resentment.
Let today be the day you stop being haunted by the ghosts from your past. What happened in the past is just one chapter in your story; don’t close the book, just turn the page.

We’ve all been hurt by our own decisions and by others, and while the pain of these experiences is normal, sometimes it lingers for too long. Feelings of resentment urge us to relive the same pain over and over, and we have a hard time letting go.

Forgiveness is the remedy. It allows you to focus on the future without combating the past. To understand the infinite potential of everything going forward is to forgive everything already behind you. Without forgiveness, wounds can never be healed and personal growth can never be achieved. It doesn’t mean you’re erasing the past, or forgetting what happened. It means you’re letting go of the resentment and pain, and instead choosing to learn from the incident and move on with your life.

5. Spend prolonged periods of time in negative environments.
You can’t make positive choices for the rest of your life without an environment that makes those choices easy, natural, and enjoyable. So protect your spirit and potential from contamination by limiting your time with negative people and the environments they inhabit.

When other people invite you to act like victims, when they whine and moan about the unfairness of life, for example, and ask you to agree, to offer condolences, and to participate in their grievances, WALK AWAY. When you join in that game of negativity you always lose.

Even when you’re alone, create a positive mental space for yourself. Make it a point to give up all the thoughts that make you feel bad, or even just a few of them that have been troubling you, and see how doing that changes your life. You don’t need negative thoughts. They are all lies. They solve nothing. All they have ever given you is a false self that suffers for no reason. (Read Buddha’s Brain.)

6. Resist the truth.
It is a certain deathtrap when we spend our lives learning how to lie, because eventually these lies grow so strong in our minds that we become bad at seeing, telling and living our own truth. Lives come apart so easily when they have been held together with lies. If you resist the truth, you will live a lie every day as the truth haunts your thoughts every night. You simply can’t get away from your truth by moving dishonestly from one place to the next.

So don’t bend; don’t water it down; don’t try to hide the truth with deception; don’t edit your own soul according to the fashion of what’s popular. It is better to offer no explanation or excuse than a false one. It takes courage and strength to admit the truth, but it is the only way to truly live. Accept what is, embrace it fully, and live for the possibilities that lie ahead.

12 Toxic Behaviors that Push People Away From You

(Written and posted by Marc Chernoff on “Marc and Angel Hack Life”)

1.Being envious of everyone else. – Don’t let envy (or jealously) get the best of you. Envy is the art of counting someone else’s blessings instead of your own. There is nothing attractive or admirable about this behavior. So stop comparing your journey with everyone else’s. Your journey is YOUR journey, NOT a competition. You are in competition with one person and one person only – yourself. You are competing to be the best you can be. If you want to measure your progress, compare yourself to who you were yesterday.

2. Taking everything too personally. – People are toxic to be around when they believe that everything happening around them is a direct assault on them or is in some way all about them. The truth is that what people say and do to you is much more about them, than you. People’s reactions to you are about their perspectives, wounds and experiences. Whether people think you’re amazing, or believe you’re the worst, again, is more about them. I’m not suggesting we should be narcissists and ignore all feedback. I am saying that so much hurt, disappointment and sadness in our lives comes from our taking things personally. In most cases it’s far more productive and healthy to let go of other people’s good or bad opinion of you, and to operate with your own intuition and wisdom as your guide. (Read The Four Agreements.)

3. Acting like you’re always a victim. – Another toxic behavior is persistent complaining that fuels your sense of victimization. Believing you’re a victim, that you have no power to exert and no power over the direction of your life, is a toxic stance that keeps you stuck. Working as a life coach with people who have suffered major trauma in their lives but found the courage to turn it all around, I know we all have access to far more power, authority, and influence over our lives than we initially believe. When you stop complaining, and refuse to see yourself as a helpless victim, you’ll find that you are more powerful than you realized, but only if you choose to accept this reality.

4. Hoarding pain and loss. – One of the hardest lessons in life is letting go – whether it’s guilt, anger, love or loss. Change is never easy – you fight to hold on and you fight to let go. But oftentimes letting go is the healthiest path forward. It clears out toxic thoughts from the past. You’ve got to emotionally free yourself from the things that once meant a lot to you, so you can move beyond the past and the pain it brings you. Again, it takes hard work to let go and refocus your thoughts, but it’s worth every bit of effort you can muster.

5. Obsessive negative thinking. – It’s very hard to be around people who refuse to let go of negativity – when they ruminate and speak incessantly about the terrible things that could happen and have happened, the scorns they’ve suffered, and the unfairness of life. These people stubbornly refuse to see the positive side of life and the positive lessons from what’s happening. Pessimism is one thing – but remaining perpetually locked in a negative mindset is another. Only seeing the negative, and operating from a view that everything is negative and against you, is a twisted way of thinking and living, and you can change that.

6. Lack of emotional self-control. – An inability to manage your emotions is toxic to everyone around you. We all know these people – those who explode in anger and tears over the smallest hiccup or problem. Yelling at the grocery store clerk for the long line, screaming at an employee for a small error she made, or losing it with your daughter for spilling juice on the floor. If you find that you’re overly emotional, losing your cool at every turn, you may need some outside assistance to help you gain control over your emotions and understand what’s at the root of your inner angst. There’s more to it than what appears on the surface. An independent perspective – and a new kind of support – can work wonders. (Angel and I discuss this in detail in the “Happiness” chapter of 1,000 Little Things Happy, Successful People Do Differently.)

7. Making superficial judgments about others. – Don’t always judge a person by what they show you. Remember, what you’ve seen is oftentimes only what that person has chosen to show you, or what they were driven to show based on their inner stress and pain. Alas, when another person tries to make you suffer in some small way, it is usually because they suffer deep within themselves. Their suffering is simply spilling over. They do not need punishment or ridicule, they need help. If you can’t help them, let them be.

8. Cruelty (or lacking empathy and compassion). – One of the most toxic behaviors – cruelty – stems from a total lack of empathy, concern or compassion for others. We see it every day online and in the media – people being devastatingly unkind and hurtful to others just because they can. They tear people down online in a cowardly way, using their anonymity as a shield. Cruelty, backstabbing, and hurting others for any reason is toxic, and it hurts you as well. If you find yourself backstabbing and tearing someone else down, stop in your tracks. Dig deep and find compassion in your heart, and realize that we’re all in this together.

9. Cheating and cutting moral corners simply because you can. – Cheating is a choice, not a mistake, and not an excuse! If you decide to cheat, and you succeed in cheating someone out of something, don’t think that this person is a fool. Realize that this person trusted you much more than you ever deserved. Be bigger than that. Don’t do immoral things simply because you can. Don’t cheat. Be honest with yourself and everyone else. Do the right thing. Integrity is the essence of everything successful.

10. Hiding your truth. – People cannot connect with you if you’re constantly trying to hide from yourself. And this becomes a truly toxic situation the minute they become attached to your false persona. So remember, no matter what age, race, sex, or sexuality you are, underneath all your external decorations you are a pure, beautiful being – each and every one of us are. We each have light to shine, and missions to accomplish. Celebrate being different, off the beaten path, a little on the weird side, your own special creation. If you find yourself feeling like a fish out of water, by all means find a new river to swim in. But DO NOT change who you are; BE who you are. Don’t deny yourself, improve yourself. (Read The Untethered Soul.)

11. Needing constant validation. – People who constantly strive for validation by others are exhausting to be around. Those men and women who get caught up in the need to prove their worth over and over and over, and constantly want to win over everyone around them, are unintentionally toxic and draining. Know this. Over-attaching to how things have to look to others can wear you out and bring everyone else around you down. There is a bigger picture to your life, and it’s not about what you achieve in the eyes of the masses. It’s about the journey, the process, the path – what you’re learning, how you’re helping others learn too, and the growing process you allow yourself to participate in.

12. Being a stubborn perfectionist. – As human beings, we often chase hypothetical, static states of perfection. We do so when we are searching for the perfect house, job, friend or lover. The problem, of course, is that perfection doesn’t exist in a static state. Because life is a continual journey, constantly evolving and changing. What is here today is not exactly the same tomorrow – that perfect house, job, friend or lover will eventually fade to a state of imperfection. But with a little patience and an open mind, over time, that imperfect house evolves into a comfortable home. That imperfect job evolves into a rewarding career. That imperfect friend evolves into a steady shoulder to lean on. And that imperfect lover evolves into a reliable lifelong companion. It’s just a matter of letting perfectionism GO.

Did you know?

Did you know?
One in 9 seniors reported being abused or exploited.
The rate of financial exploitation is extremely high, with 1 in 20 older adults
indicating some form of perceived financial mistreatment.
Only one in 44 cases of financial abuse is ever reported.
90% of abusers are family members or trusted others.
*** I advise (FOR FREE) those that are at risk how to protect their property/s from being exploited***

Agents,Think Sellers Love You? Think Again!

(published in Inman News 7/18/14*)
SAN FRANCISCO – Get a group of home sellers in a room, ask them about their experiences with their agent and the results may be eye-opening.
That’s the premise behind Hear it Direct, which puts together consumer panels of buyers and sellers with varying satisfaction levels and price ranges. At Real Estate Connect, a sellers panel, in particular, had some comments that real estate pros may find sobering:
At least 5 out of 6 said they had chosen an agent who was either a family friend, a referral from a friend, or someone they had worked with before.
Most said the agent who they bought the house with in the first place had not kept in touch – which may be why only one used the same agent to sell the same property.
None had an agent ask them how and how often they wanted to communicate. One 44-year-old seller said he got “a lot of emails,” but as a member of Gen X, he would have preferred phone calls. “If you call me, that tells me you really care about me,” he said.
When asked which websites were most accurate in terms of estimating the value of their home compared to what the home sold for, the sellers mentioned Zillow, Trulia, Redfin and Yahoo Real Estate (which is powered by Zillow). One mentioned that Zillow’s estimate was low, another said Zillow’s estimate was high, but Zillow was mentioned most often as a resource.
The sellers mentioned using Zillow, Trulia and Redfin during the process, as did buyers in a previous panel. Not one buyer or seller mentioned realtor.com.
At least 5 of the 6 sellers said they interviewed multiple agents, usually three or four. One who had interviewed three said that if he had to do it over again, he would have interviewed many more agents. He felt his agent had done the minimum to earn her commission.
Four out of 6 said they Googled their agent’s name.
All Googled their own address to see what websites the property was on and what it looked like.
Only one said an agent they interviewed might have brought an iPad or desktop to the listing appointment.
Two out of 6 hired an agent that had an assistant or a team.
Three out of 6 had agents ask them for a price reduction.
None said their agent had made them feel like they were part of a team in selling their house.
Half said the number of homes an agent sells was important to them in deciding whom to hire. “That’s what’s most important isn’t it?” one seller said, though he added that that could mean that a highly productive agent might have less time to spend with each client. “The problem is some people need their hand held,” the seller said.
None said their agent had used a showing feedback tool, but at least half said they would have liked to use such a tool if it were available.
Three out of 6 had multiple offers on their property.
Three out of 6 thought they would have gotten a higher price if they had kept their property on the market longer.
None said they provided an online review for their agent after the process was over. “I never even thought of it,” one seller said.
Half said they asked the agents they interviewed what they charge at the beginning of the process. All said they asked about commission at some point during the selling process.
Five of the 6 sellers said they paid a 5 percent commission. The remaining one said she paid close to 6 percent.
Four out of 6 said that if they hired a different agent they thought they could have gotten more money for their property.
Half said that if someone had come up to them when they were selling and offered them 10 percent off their asking price in cash immediately, they would have accepted the offer.
All said their agent hadn’t done anything to make their life easier while their house was on the market. One seller said he would have liked if his agent had just told him what was going on and what to expect through the process.
Two of the 6 said they felt good about the industry after the selling process.
A panel of industry observers later commented that neither the buyers nor the sellers had seemed to have been educated by their agents about the process and what they should expect. One panelist noted that the sellers, in particular, looked defeated.
“The best part of it was not having to do it again,” one seller said.
*Originally Posted: http://www.inman.com/2014/07/18/home-sellers-sound-off-at-real-estate-connect/

Attorneys Don’t Know It All…

Was taken from “10 Ways To An Effective Divorce.” By Mary Stearns-Montgomery

“Finally, please understand that while your attorney is well versed in the intricacies of financial divorce proceedings, they may not have expertise when it comes to the individual laws that pertain to each asset and liability class. It is usually a good idea to hire an expert to access your investments and other assets, as these items can be complex on an individual basis.These experts can also review your liabilities to ensure
that you aren’t burdened with additional financial ramifications coming out of your divorce proceedings. If possible, a financial advisor and tax professional should be on your short list of people with whom you should connect.”

I provide FREE Pre Divorce Real Estate consultation. Divorce Real Estate is my specialty. Knowing ahead of time (during the Discovery) all that needs to be known about your property/s and the legal implications divorce can cause, is crucial and can be the difference between keeping your house and losing money and even losing it all together.

5 Real Estate Terms Clients Don’t Understand

Source : Jovan Hackley 9/23/2014 to Trulia.com

To the full article  :http://www.trulia.com/pro/grow-business/5-real-estate-terms-clients-using-wrong/

1. Good-Faith Estimate

In a dream world there are no surprises on the way to closing. Here on planet Earth anything can change at any time. A frequent stress point where clients get caught in the cross-hairs of the sometimes inevitable is the good faith estimate. Most clients see and save toward this magic number that tells them what they’ll need to close. However, these “estimates” can vary drastically when it comes to closing time and they should probably save with padding in mind to make sure their deal doesn’t fall apart at the end of the road.

2. Pre-Approval

A pre-approval is just that, a pre approval. Too often home-buyers think that their pre-approval is as good as money in hand. And yes, it does give them permission to shop, but they need to be aware that changes in their habits,credit score ,etc. and the market can affect their ability to close. Most people (hopefully) know not to buy a car while shopping for a home, but they may not be thinking about closing the deal fast to avoid getting caught on the downside of lending standard or market value changes. It should be clear that they don’t have the loan until they’ve closed, and that means both being conservative with their credit and time.

3. The “Comp”

On the seller’s side, the most common catch phrase that trips clients up is the almighty “comp.” A “comp” is one comparable property; and yes, they are helpful when it comes to pricing. Sellers, however, need to understand the difference between the “comp” and a Comparative Market Analysis (CMA). a complete and comprehensive CMA takes into account a number of factors that and if not explained properly, sellers will lean on sites like Trulia or Google as an authority for pricing advice.

4. MLS

In the mind of many seller clients, the MLS is a magic place where properties go to get sold. You know that a ton more goes into marketing. To make sure sellers don’t misunderstand what a multiple listing service is, their listing agent should show and guide them them through their entire property marketing plan.