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Senior loan officer/ mortgages
Number of years in the industry
Why do you love working in real estate?
I work for Fulton Mortgage which is a division of Fulton Bank and do all kinds of loans including single close construction loans in the greater Fredericksburg/Richmond area. I have a wonderful assistant named Kristy Hite.
What are you most proud of in your career?
Communication and returning phone calls is the key!
Do you have a special cause or volunteer your time?
Lake Anna Business Partnership
Written by Sha Williams-Hinnant and Tamar Myers-Moffatt
As demonstrators across America continue to fight to liberate black and brown people through legislative action against systemic racism, the country is getting ready to celebrate the 156th anniversary of one of its earliest liberation moments called “Juneteenth”. This is a combination of June and the nineteenth and it marks the day in 1865 when a group of enslaved people in Galveston, Texas, finally learned that they were free from the institution of slavery. Unfortunately, this was almost two and a half years after President Abraham Lincoln signed the Emancipation Proclamation; the Civil War was still going on, and when it ended, Union Maj. Gen. Gordon Granger traveled to Texas and issued an order stating that all enslaved people were free. This established a new relationship between “former masters and slaves” as “employer and hired labor.” As much as Juneteenth represents freedom, it also represents how emancipation was tragically delayed for enslaved people in the deepest reaches of the Confederacy.
Liberation commemorated for 155 years but not as a public holiday
Newly freed black people celebrated the first Juneteenth in 1866 to commemorate liberation. They celebrated with singing spirituals, reading scripture and sharing food as they took pride in their progress. But a century and a half later, Juneteenth is still not taught in most schools, nor is the event a federal holiday despite decades of pushing from activists. In 1980, Texas became the first state to declare Juneteenth an official holiday. In 2020, Washington, DC and nearly every state observed the day and some recognized it as a holiday.
The calls for Juneteenth to be a national holiday have grown stronger amid a climate seeking justice for Blacks. Coinciding with the worldwide protests against systemic racism, and the mounting cultural pressure to reckon with America’s racist history, Juneteenth continues to receive increased attention in 2021.
Church grounds, the common site for the festivities
In the early years, little interest existed outside the African American community in participation in the celebrations. In some cases, there was outwardly exhibited resistance by barring the use of public property for the festivities. Often church grounds were the site for the celebration. Eventually, as African Americans became land owners, land was donated and dedicated for these festivities. In Mexia, Texas, Booker T. Washington Park attracted as many as 20,000 African Americans during the course of a week.
Modern Juneteenth promotes self-development and respect for all cultures
Today, Juneteenth is enjoying a phenomenal growth rate within communities and organizations throughout the country. Institutions such as the Smithsonian, the Henry Ford Museum and others have begun sponsored Juneteenth-centered activities promoting appreciation of African American history and culture.
Juneteenth celebrates African American freedom and achievement, while encouraging continuous self-development and respect for all cultures. As it takes on a more national, symbolic and even global perspective, the events of 1865 in Texas are not forgotten, for all of the roots tie back to this fertile soil from which a national day of pride is growing.
The future of Juneteenth looks bright as the number of cities and states creating Juneteenth committees continues to increase. Respect and appreciation for all of our differences grow out of exposure and working together. Getting involved and supporting Juneteenth celebrations creates new bonds of friendship and understanding among us. This indeed brightens our future – and that is the Spirit of Juneteenth.
The real estate market continued to post unprecedented numbers as spring marches on with significant increases in total sold dollar volume, median price, and units sold. While the percentage increases year-over-year are staggering, the gains are moderated by the fact that May of 2020 was still deep in the throes of pandemic fear and government-wide lockdowns. It is more telling to look at the month-over-month numbers to gauge true trends in this market since pandemic-related conditions are much-improved across the region.
The market posted a more than 67% year-over-year gain in sold dollar volume going from approximately $218 million in May of last year to more than $365.5 million in May of this year. The month-over-month gain was still significant but a more modest 27% increase from April of 2021. Median sold price was up a whopping 15% from last May, coming in at $390,000 but a mere 1.5% over last month, showing that already-elevated prices are staying high. Units sold were up to 889 homes transacted this May compared to 621 in 2020, a more than 43% increase. Compared to last month, sales were still up a significant 24%.
“What a crazy market we are living today!” comments FAAR Board of Director Pia Contreras-Sanchez. “May for me is kind of the culmination of the spring market or maybe a ” Graduation”. By May, the clients I was working with already understood the fight we had to fight, and we proudly presented our bests and the most creative offers we possibly could. The beauty of the business is that every day is a constant learning process and a challenge to adapt. The numbers are working in our favor… for buyers, rates are still low and for sellers, prices remain high.”
Days on market, the time it takes from when a listing enters the market until it receives a ratified contract and is removed from active status on the multiple listing service, fell nearly 62% with houses averaging a scant 11 days on the market this May compared to the also very low 29 days last year. A full 83% of homes on the market were sold in less than 10 days, demonstrating how quickly decisions need to be made in this market.
Not unexpectedly, inventory across the region remains at historic lows. In May of 2020, there were 1,964 homes on the market. In May of 2021, there were just 573 homes for sale, representing a nearly 41% year-over-year decline. However, new listings coming onto the market showed a sizeable increase again this month with 1,200 new listings coming onto the market, a nearly 49% increase from last May. For the second month in a row, the market has beaten the 5-year average for new listings so it is not entirely accurate to state that our market is suffering from a supply shortage. Homes are coming onto the market in record numbers, they are just being snatched up by very strong buyer demand. New pending sales for the month of May are up 10% from last year and also beating the 5-year average, indicating that the pace of sales will probably not slow in June.
This week we talk to agents who are working to have it all. Check out these great tips and encouragements from dual-career agents who are making it work. Get ideas on how to streamline your business, on some tools to help you out, and how to make your business work.
Mackenzie Rathbun 0:01
Welcome to far louder, your official Association podcast. our listeners, welcome to this week’s episode of the far louder podcast. Today we’re talking about dual career agents, what it takes to be a successful agent, and maybe some of the different paths that are open to you. So I just want to welcome our panelists and let you get to know them a little bit. So how are you got today, guys? Good. Thank you. Wonderful. Fantastic. We’re glad to have you. Hey, Tamika, would you mind introducing yourself a little bit and telling us about who you are, what you do and how long you’ve been in the industry.
My name is Tamika Jackson. I am an educator of 28 years, as well as a realtor of three years. Six months. I’m with CTI real estate. And Fredericksburg, Virginia is our main corporate office. Awesome.
Mackenzie Rathbun 0:59
What about you, Bobby?
Money. Let’s see I with weikert in Fredericksburg. And I’ve been I did this back when the recession happened and I had to get to work. So I stopped. And then I’ve been back in it now for since 2019. So a little over two, almost two years. Um What else did you want to know? Now, sorry. What I do now is I’m a paralegal and I’ve been a paralegal for almost 20 years and doing kind of real it’s real estate, Fannie and Hud insured loans, multifamily loans for commercial, where we can what we consider commercials, apartment buildings, nursing homes, seniors, living hospitals, things like that. So I’ve been doing that revealing title and survey and loan docs.
Mackenzie Rathbun 1:57
So you got a good handle on the legal side of the real estate.
I do it’s fun to realize that it transfer that I understand what a deeded mortgage. So absolutely. All survey are so yeah, it helps a lot. All right. Well, what about you, Frank? What do you do?
Okay, well, I’m a real estate agent. Oh, I with I’m with XP Realty. I’ve been with the XP since just January of this year. I’ve been a real estate agent for about four years, I was with a different firm, which will remain nameless. I’m not with them anymore. I don’t want to like make it sound like they’re not good. They’re good. Just focus on with now are a better fit for me. I I’ve actually relocated to this area from North Carolina by Fort Bragg North Carolina. I was in the army for 21 years. I retired in early 2018. And I went right into doing real estate. I Love New real estate. But I’m also a clear defense contractor. Like a lot of folks in Northern Virginia. Oh, I I’m able to do both. I’ve been doing that for about three years, almost ever do real estate for about almost four years. And yeah. Did I answer your questions?
Mackenzie Rathbun 3:22
You did? Absolutely. Thanks. Well, now that we know a little bit about who our panelists are, I’ve got some great questions for them today that will hopefully help other members as they’re going through their journey deciding if they want to be full time agents, dual career agents, or what other options are available. So what made you get into real estate to start with? Bobby, what it made you get into real estate I
did it. I had done this before in 2008. I believe it was you know, and I was doing the same job I’m doing now full time. And then I got laid off. And so I started I was like well, let me try real estate. And then I the real estate wasn’t working so well. So I was like let me go back to work. cited ago got to work but this time around. I just been doing what I’ve been doing so long and I’m just I’ve gotten to a place where there really is no upward mobility. I’m a paralegal. So I could either go to law school with become an attorney. And I’ve worked with enough of them no offense attorneys, I don’t want to be one. And then I realized this just the flexibility just the way I think about it now versus how I did before I didn’t think of it as my own business. And now I realize it’s my own business. I’m an independent contractor, I’m my own. I’m an entrepreneur is my own business is for me to make or break it and I like that part of it. Just Being responsible for me and accountable to me. It’s mine. So I and I really appreciate that part more than I did the first time around.
Mackenzie Rathbun 5:12
That’s awesome. So what about you, Frank? What made you jump into real estate?
Oh, wow. Well, first, I probably should mention my wife, cuz she’s the real estate agent. And she log in to me. And she’s, if she’s listening, she’s better at it than I am. But we complement each other. We have different personnel. She’s actually in North Carolina. So I’ve, I want to call it a military geographic bachelor, the wife, they love North Carolina so much, and with COVID and all that it’s just been a little slow going. But I’m also licensed in North Carolina, and she’s in North Carolina. So, um, well, that’s a whole nother thing. You asked me what brought me into it. So I’m hearing Hearst stories when I was active duty military as far as stuff she dealt with, you know, it, I kind of learned from her, which helped me. And I also felt like, wow, this is kind of cool. You know, I also enjoyed some of the stories that she was telling me. And when I was getting out of the military, unfortunately, I had some medical things that had happened, I had to have major back surgery. And even after 21 years, the Uncle Sam kind of said, Hey, thanks for your service, it’s time to go next. So I was originally going to go right into defense contract work. But the military was gracious enough to allow me to do my real estate pre licensing stuff in North Carolina, when I’m still active duty. So I was like, You know what, I’m going to give this to go see how it works. I got into it. And I was very fortunate, just with kind of like, folks that I knew from when I was a military, I got listed right away, I got business right away. And I love the entrepreneur aspect of it. When I was in the army, I would say I was part of the biggest team in the free world, which is awesome. Not the role of being on a team. Some people, even the real estate are all about teams. I’m a nomad. I like working for me, that aspect of working for me. And whether I succeed or fail, I have no one but the person in front of me that I seen a mirror to, to to Claude, you know, to basically say, this is why and not that you go out and alone because even when you’re single agent, there’s a lot of enablers, you got to have it. If you’re doing listing to have a good have a great photographer, a great loan officers that you can count on, you have to have a great brokerage, you have to have other folks to go back and forth and say, Hey, what do you think about this and run ideas off of, but basically the big thing that turned me on to real estate, and what I love about it is the aspect of that entrepreneur stuff. And also it keeps me connected to folks that I knew within the military and within the government without having to be in the military. So lots of awesome things have been that’s probably the big thing is being able to have my own business.
Mackenzie Rathbun 8:22
Awesome. And sumiko. What about you? What’s your experience?
So with my background, as an educator, I’m always in teacher mode. So as a realtor, I have the opportunity to transition my skills as an educator over into educating families and individuals, educating business leaders and or individuals who are looking to do investments. So the structure, the time on task, the deadlines, being personable, all of those things that I do as an educator, just seem to smoothly transfer over and mesh well with being a realtor. So I know at some point, I’m going to transition out of education. As I said, this is my 28th year. So I will be retiring soon. And I wanted to make sure that I could still support communities, support families through the educational process and help them see ownership because many people don’t know the process to be a homeowner. Some people don’t know the process to be a to do a lease to be a renter. So it takes a lot of patience. And that educational aspect that I bring to it, I think makes me stand out as a realtor.
Mackenzie Rathbun 9:59
Awesome. Well, I’m so glad to have you all be part of it, there’s clearly a lot of reasons for people to be in real estate. And I love seeing the I want to own my own business, I want to help people, I want to work with my family, or I just like having something to talk about at the dinner table. Because Personally, I can relate to just wanting to be able to keep up with the conversation at the dinner table. So those are all amazing reasons. And it’s great to see how many different experiences can lead you down a similar path? So how do you manage to basically full time jobs? I mean, being a realtor doesn’t really stop just because you’re at work nine to five, or whatever your schedule is, it still keeps happening, right? So, Mike, we’ll start with you this time, how do you kind of handle having to two things that you’re juggling?
Oh, wow, that’s a good, that’s a great question. And I struggle with that. Here or there, it’s just, you know, I would say, I’m very fortunate that the, the position I worked with, as far as my contracting job has flexibility. That’s that if it didn’t, I wouldn’t be able to, or this would just be a side hustle. I don’t consider it a side hustle, I consider a career. It’s, it’s tough. So I mean, some things go like maybe I don’t sleep as much as I would like to. I, you know, I have to be strict with my schedule. And a lot certain times that no matter what this is what I’m going to call my leads my product, you know, prospects, this is what I’m going to check on existing transactions. And I will tell you last year with COVID, was actually kind of helpful in my aspect, because I even had more flexibility in my schedule. So I was able to kind of do certain things and and do the some of the the contract work at different hours, it’s so much not the case now. But it’s just you know, prioritizing schedule, having flexibility. And then also working with clients that I met best with as that listings help. Because listings, once you get a listing, once you do all the work, once you do all the pre marketing, you get everything out there, you don’t have to be on like a beck and call with a buyer having to work everywhere and move around with buyer. So with buyer clients, and I do work with them. But I make it clear as mud right from the beginning that I do have this other career, Monday through Friday, during these hours, I’m hard to get ahold of I work in one of those buildings where I can’t bring my phone in, you know what I mean? It’s a basement of some government building. And during that time, I’m I’m not very reachable. And I’m very transparent about that. So with with buyer clients, I, I don’t want to say I’m selected, they have to be selective of me, we have to work together. And they have to understand that this is a situation. And then the other ones, I still work with them and I do a referral business. So I help qualify them, I help understand what their needs or requirements are. And if I’m not the best fit for them, I get them in contact with with an agent that usually in my brokerage that can work with that. So it’s just having to be creative and work with the time that that now I have. And and someone else mentioned as far as well, they’re not going to I forgot which one of the ladies had mentioned that you’re not going to do the career that you’re in forever. I feel the same way with this. I love doing my clear defense contract work. And hopefully my employer doesn’t hear this podcast right now. I’m not putting in my two weeks notice tomorrow, but my eventual plan is I want to do this all the time and almost do a trade off and then do the other stuff, maybe on a on a 1099 consultant part very part time basis. But I’m not there right now. It’s a work in progress.
Mackenzie Rathbun 14:27
Absolutely. Very cool. Very, very forward thinking really is that eventually building up to making that transition to Mika, you had mentioned that before about looking to make that transition in the future. So it seems like everybody’s kind of like I want to run my own business. I want to take ownership of it and I love I love that about the realtor spirit overall is the I’m taking control of my career and I’m going to make it work. That is just the best ad attune. So, to Mika, how are you managing being a teacher right now along with doing the real estate,
I definitely having a schedule, knowing when I’m wanting to return calls when I’m going to answer emails. And similar to freight, once that listing goes alive, it takes on a life of its own. So I am just, I then become the file manager making sure that I’m responding to interested buyers responding to agents timely, everything must be done in decency in order and one time, preferably before time, making sure that all documents are signed and to whom they need to go to making sure that everyone’s doing their part within their timeframe. And in regards to managing my buyers, individuals that are buyers, similar to Frank, on my bio, it’s they said, I’m an educator. So no matter what part of Virginia I’m working in on that particular day that I that I’m supporting that particular buyer, they understand these are the hours that I can take you to see homes. And these are the hours that I can not take you to see homes, they are very respectful of that. And if there’s something that I need to do, I have individuals that are other agents that are licensed that my office that are very supportive. So if by chance, there’s a home inspection or a bill, a home needs to be open, I can contact one of the other 50 plus agents at our office that are willing to assist if I have to show a rental, and I cannot make a two o’clock rental showing, I’ll refer it over to another agent that can take care of that particular client. But it’s very, very important to keep to your deadlines. keep in contact with all parties on the buyer side and the listing side. And in order to make sure that everybody’s part is completed on time.
Mackenzie Rathbun 17:07
Oh, awesome. So yeah, staying on top of those files, making sure you have a schedule, I think I think you guys can all kind of see that where I live and die by my schedule. If I don’t check the calendar in the morning, I I’m gonna die I can’t, or I’m just gonna have stuff thrown at me throughout the day. So I totally can see how that would be important, especially in a dual career situation. So Bobby, you also are doing the dual career what what have you found so far, as far as the best way to manage your time.
So for me, it’s been a process. Because I in the beginning, I was getting up, I go to work early, early hours, seven to 330. So I will get up in the morning at five and do real estate stuff, or prepare in the morning to do something later in the evening. And that after about maybe a year I was just like, whoa, I’m gonna burn myself out way too fast. So I’ve kind of adjust Well, COVID helped a lot. I hate to say that, oh, that’s terrible. But I ended up being able to work from home every day, instead of going to Georgetown. So it was it was a blessing in disguise I hate to say. So it helped in that wasn’t necessarily getting I changed my schedule where I work more at night. Because my commute is a minute now versus an hour to two hours. So I was worth doing more stuff at night. But I’ve also had to learn to set boundaries with my clients, because I’m the one that I see it. I’m picking up my phone and text them back. And if you know anything about law firms, we build paralegals also bill, I’m supposed to be billing hours and some days I look up and be like, Oh my gosh, I’ve been on a text for an hour about a real estate thing. And I got a bill my time. So I ended up having to, like I take, we can log off, I wouldn’t do it on their time, but I have to Bill my time. So I’d have to go back in and every day I’ve got to build seven and a half hours. So after work, I’m doing more work instead of real estate work. So it’s been like a process for me to figure it all out. Because eventually I do not want to do what I’m doing full time what I’m doing during the day I want to be done. And like Frank, I hope nobody in my world is listening to this. I want to be done and sued and do real estate full time because until I enjoy it. And so the biggest thing is just like set a process to me and setting boundaries when my clients are not even setting boundaries, just letting them know. I can’t show you anything until after 330 if it’s close to my home, I will take Take them out on my lunch break. And that’s worth great, which I would never have been able to do that if I was at work every day. So that has helped a lot. So it’s been a process on the calendar. I’m still old school, I have a paper calendar. And I do have my cell phone where I put in my showings and things tend to be working with a lot more buyers and renters right now. listings of course, yes, they’re lovely, cuz you put it on and you just watch everything come in. So, yeah, I would definitely say for any dual career agent, it’s a process, do not beat yourself up, you’ll figure out what works for you. Like I said, in the beginning, I was in the morning, because I’m a morning person now. It’s in the evening. And I do do a lot of the company wide. What I’ve tried to do, they have my prospecting sessions. And I try to jump on those because it’s a set time. And it makes me be disciplined to do it by attending. Whereas if I kind of lean on myself, I may not do it.
Mackenzie Rathbun 21:10
Absolutely. And you bring up a great point that, you know, there was definitely a lot of negatives during COVID. But if we really hang on to some of the positives, being a realtor, there were some new tools that people got trained on that made being a realtor virtually a little bit more easy. There. And then our other jobs, while we’re trying to figure out how to balance those, there was more options there as well, your trainings, I bet some of your trainings were probably virtual as well. So you didn’t have to go to the office, right? So seeing some of these changes might even make it easier for future people getting into the industry to do that. And then all of you have different time constraints. But the great thing about being a real estate agent is that there is a client for every realtor and a realtor for every client. Bobby, you were a morning person for a while. And I bet there were people who were like, Yes, I have to work the same hours, I can’t, I can’t go and see a house in the afternoon I’m working. So it’s just great to see how everybody’s different styles really end up working together, and how you’re still able to find clients because you’re attracting people who are going through some very similar things. So with that said, Are there any tools that you found that helps keep you organized, whether before COVID during COVID? Or recently timika? Do you have any new tools that you found.
So I use my calendar, I have two calendars, and two phones. So I use the timer, the alarm. And I have the date set. So for example, I literally will have phone conversations on my ride home. So it’ll say three o’clock, is I check in once a week. So my prospects, people that are still on the fence in regards to their financing and regards their eligibility, I touch base with those people. So four o’clock, I’m calling this person for 15. I’m calling that person and my alarm actually rings for it, then it’s gonna say call McKenzie four o’clock call Bobby 415. Call Frank 430. So that keeps me touching base with them once a week. And I stretch them out from Monday to Sunday. Those are the people that are still trying to get themselves ready to buy. If they’re if you’re out of sight, you’re out of their mind. And you don’t want them to forget about you because then you’ll be reading their Facebook posts with their keys to the house. And you’re like, Okay, when we do that. So you don’t want your clientele to forget that you are out there. And you want to show them your worth. You want to keep in touch with them. walk them through, guide them through answer any questions that they have if they’re uncertain about something. Now in regards to active files, it’s every day as needed every day as needed, either by telephone or by email, preferably by email, because it’s a better way to track and have evidence of when this was said when this was done. When will this be done. And you have a chance to follow up on Gmail, they have this little feature and it pops up and it’ll say three days ago, four days ago. So it’s sort of kind of like Google sort of minds your business. And it’ll say this question didn’t get answered it. But I don’t tell it to do that. I don’t know why Google is so in your business like that. But I will say this question from three days ago didn’t get answered. So it’s really, really important to keep in touch with and keep strong relations with your clients that are buyers, whether they’re ready, or whether they’re currently in motion.
Mackenzie Rathbun 25:15
Absolutely. Those are I really like that Google one where it just kind of automatically taught. That’s cool.
That’s very cool. And you get to learn which clients you cannot call while you’re driving. So there’s those clients that I’ll do a call when I’m in front of the computer. So that way, if they want to talk about properties, if they want to talk about areas, then I can pull up those areas, I can pull up those properties, they need more quiet time. Absolutely. Or more quiet, intimate time.
Mackenzie Rathbun 25:49
All right, that’s very cool. And just kind of keeping in mind who does what scheduling it out. Love it. So Bobby would have you found any new tools recently,
um, the main thing well, with weicker they gave us it’s a CRM. And it’s cavey core, my weicker, and so you put everything in there, and I like that it gives us It gives us notices, or it says, here’s what you should do this week. And then it helps if you can set people up on campaigns. So if I have my new buyers who kind of like to example is still in the process of doing getting their finances together, you can set them up on a buyer campaign where they get something like automated and I don’t have to do it. And but I do, excuse me, call the ones that that are working on their finances just to check in and say, Hey, how’s it going? What’s Where are you? But it definitely that that CRM the Wagoner’s is a lifesaver. And I set up new clients, as soon as they get in, you just put it in there and set them on a campaign. And off he goes. And then I use my calendar and my phone to keep up with the showings, things like that. So that’s pretty much the basis for what I use right now.
Mackenzie Rathbun 27:19
Yeah, you can’t underestimate a good CRM, something where you set it up these mailing lists, it just the automation is your best friend. You know, I saw a really cool tool once where if you get a text message, but you’re in a meeting or you’re not available, it automatically takes them back. Because sometimes time is the key, like the quicker you get back to people, the more often you’re on top of their consciousness, it’s just it just streamlines everything.
So right what am i less Oh, no, go for it. What’s up Mackenzie, I also like with the MLS system, when you do set them up on the listings, they can click love, or they can click like and they or they can click the trash can they can send notes to you. So that gives you a better clue as as to what types of homes that they’re looking for. We can tailor it based on the descriptors that they give us. But, and one of the I’m in three different MLS is so I’m in bright MLS which is the Northern Virginia down in Caroline County, I’m in CVR MLS, which is Caroline County Down in North Carolina. And I also do Williamsburg over to the eastern shore Peninsula in Virginia Beach. So in that brain area in the other MLS area, you get alerts that lets you know that they opened up that they looked at their list, whereas with bright you have to go to the list to see when they visited their portal. So I like that feature.
Mackenzie Rathbun 28:49
Yeah, that’s very cool. Being able to keep track of what when why that’s that is a good key to help save everybody a little bit of time. So Frank, do you have any tools that you found that really just help streamline your business?
Yeah, I like like Bobby, we have a CRM. My brokerage also has XP, they have cavey core. And it’s a pretty good CRM. I mean, I think any CRM is as good as or useful as the person behind it using it, you know, like any tool, you know what I mean? But I think it’s that’s critical because it syncs with, with my Google Contacts with my phone with my calendar. I tried to make that as efficient as possible. And then I would say also, I use a an auto dialer, I use Mojo. And there’s other kinds that are out there and I use red X to kind of keep in touch with with fizz. getting creative because this current market market such a seller’s market, it’s crazy. I mean, inventory is gone like that. So that’s that’s an issue to some people that could call it a problem. But then you have to find creative solutions. So you have to find things that aren’t on the market yet, you have to look at maybe expired, that expired two years ago, the four COVID. And maybe they’re, they’ve been kicking the tires, and they haven’t moved yet. So it’s just you have to be proactive, and you have to jump on it. And I’ve been doing that. And that’s actually how I’ve been getting stuff using using those tools. And then I would add be remissed. if that’s a word, I guess, if I didn’t say education, I know to make I think your educator. Education is like key, the day we stop learning, we need to stop doing what we’re doing. So I’ve been taking advantage of the opportunity at some of the flexibility that I’ve had to just kind of do self improvement I am using and I know there’s other things out there, I use C sharp to do not just my C but to do other courses like I’ve been in MRP the military relocation professional, I mean, that was kind of give me I had to do that being retired military. But I recently did the price pricing strategy advisor certification that got that taking the the CMA course, there’s a wealth of information out there to, you know, to like different resources that we can improve our knowledge. And, you know, I’ve been kind of trying to do that too. And I think, plus, I just like to find stuff out. So
Mackenzie Rathbun 31:36
absolutely. And you bring up a great point. Obviously, we have far Academy at far. But if there’s ever a certification that we’re not offering anytime soon, we work with all the other associations, especially now that there’s a virtual, where if you really want that certification, we can probably find you a class to get you in. So that you can get those certifications when you want them. And we love helping agents get those.
And I think that’s an awesome thing that that I’ve seen, like I’m trying to like it COVID such thinks it’s it totally stinks that we had COVID and all that. But it’s like, okay, turning lemons into lemonade and looking at it trying to keep a positive attitude. We’ve also maybe re rethought how we’ve done day to day things. And one of those is spin education, and the fact that like luck, and I don’t know how Virginia has been but in North Carolina, where I was a broker for a while before I came here, it used to be you having to do all yourself in person. And now they’re saying, you know what, we might keep doing this zoom stuff, just make sure you’re here, the cameras on you live and you’re paying attention. That is awesome, because it allows us flexibility. So I think that’s been definitely helpful. And especially when we have other stuff
that we have going on. I was gonna say I’m hoping that far and the other places continue with the zoom training, virtual training, because it’s been a blessing, or just excellent for me to be able to do things that I could not do otherwise, because I can’t take off like that, you know, even my broker did really well, that’s doing sales calls, or our sales meetings on zoom, so that we can attend.
Mackenzie Rathbun 33:26
Yeah, absolutely. And of course, actually going forward, we do have plans to offer some classes fully virtually in some classes in person. Because we have seen that people appreciate that flexibility. There are people I learned a lot better in the classroom, not even gonna lie. I’m in the front seat, because otherwise I might just, I don’t know, I’m floating off somewhere thinking about all the other stuff I got to do for the day. But the virtual aspect of it just works for people because we’re talking about real people with real lives. And it’s just much easier. Oh, I’ve got it on my phone. I can sit here and do this and watch this. But also keep an eye on my kid because they somebody has to watch them. Right. You know, we’ve loved seeing that. And I love to hear your feedback to that that that’s working for you guys. Before we wrap up, I do have one last question and that is Do you have any advice for new agents who might be thinking about jumping into real estate while still working in their current career field? Bobby,
I would say first and foremost, save money for your fees. It was it’s a bit of a shocker when you first initially sign up How much did you have to pay upfront and I was saving my bonuses for work to help pay for my fees. The other thing is have grace for yourself, you’re doing two really two full time jobs you really are, whether you think you are or not you are. And you have to have grace and not beat yourself up and not compare yourself to other agents. I say I look at what other agents are doing, because there’s no use in recreating the will. But I don’t compare myself to other agents, because then I’ll, you know, like, everybody’s life is different. You just never know, you can’t compare yourself to a full time agent or even another dual career agent, you just can’t. And so that would be the one the two things and the third is to definitely talk to would help a couple of things helped me and my broker, does that talk to the top producer? People always think that in real estate is cutthroat. Nobody wants to share their ideas are what they do. That’s not true. A lot of them love sharing what they do. So I’ve talked to the top producers in my offices, and and even ones that aren’t just to see what do they do? How are they doing something? And having a brokerage with a mentor program, I have to say I have the best mentor, she has been amazing. And yeah, she do a split, or for the first couple of transactions, they get a piece of pie, which is fine. Because she was worth her weight in gold. More than she was absolutely amazing. Nine o’clock at night. I’m like, I don’t know what, you know, I don’t know how to look at this. I don’t know what this this, you know, I have all these offers, what am I supposed to do? And she’s just, it’s okay. So that was one of the best things is having a mentor, which has made a difference. And the first time around when I did this, I did not have a mentor, I just was thrown into the war. And it was, you know, barely swimming. This time around having a mentor was the best thing ever the best.
Mackenzie Rathbun 36:58
So awesome. What about you, Frank? Do you have any advice for new agent hopping into real estate?
Yeah, Mackenzie, the first thing I would say is ask yourself why you want to hop into real estate? And what do you want to achieve? Because there’s really two types of I think, maybe we’ll I guess we’ll call dual career real estate agents, there’s those that want to maintain that and stay that and there’s nothing wrong with that they want to do real estate, that’s your side hustle, they’ve got their soI, they’re gonna do a couple deals here or there, they might want to do their own personal transactions, and keep their career alive, which is totally cool. Nothing wrong with that. Um, and then the other thing is, do you want to transition? I would say, once you know the answer that question, then the next thing is, find someone that, um, that that, you know, that has been had that has done that, you know, that is doing it, whether it’s, whether they’re doing a side hustle, or whether they’re doing more real estate, and, and, and talk to them, seek them out, seek, you know, like, Bobby said, We don’t hold information back. We don’t hold stuff back. Like, I’m open book, if someone has a question, I’ve helped a couple people come in, actually come into the brokerage that I’m with, they’ve got a great mentorship program. And you know, they’ve been doing this virtual stuff before COVID happened, which is something I love, but it’s it’s that that we want to share information to help each other out. Because, I mean, that’s the next referral partner we might have. That’s someone that we could work with, you know, so find, seek out that information. And, and don’t go at it alone and don’t think you have to go at it alone. That’s, that’s somewhere where I think I struggled with in the beginning. Because I’m so strong willed. Sometimes I was like, I’m gonna do this my way I’m gonna just do this. And, and sometimes failing is good because we learn from that as long as we don’t continue to do the same thing over again. That’s that’s how we that’s how we get better by I would say seek out that information. Find someone that’s done it. Like someone said, Don’t reinvent the wheel if you don’t have to.
Mackenzie Rathbun 39:14
Absolutely awesome. And to make a Do you have any advice for new agents?
Be willing to listen, be very attentive, take notes, and feel free to ask the question three different ways. Because I’ll get an answer. And I’ll say and I’ll reword it, and I’ll say, Well, what I hear you saying is, and I don’t mind re asking another agent a question, to make sure that I’m understanding I don’t mind re asking the buyer or the or the client questions because you want to make sure that you have a clear understanding and be willing to ask Ask questions when you’re not certain of something to make sure that you’re doing the best you can for your clients, whether they be on the buyer side, or, or the listing side, making sure that you take time for yourself care. setting boundaries, so that you’re not burning yourself on both ends of the candle. And just set a small goal for yourself each month, just do just do a little at a time. there’ll still be more days to work on more things, but just set time for yourself. Do a little at a time, be willing to learn be a sponsor. Be willing to have a few bumps and bruises along the way. But let those bumps and bruises lead you to greater success.
Transcribed by https://otter.ai
Each year during the month of June, the Fredericksburg Area Association of REALTORS® (FAAR) takes the opportunity to celebrate homeownership by showcasing individual homeowners, government officials, and various programs that protect and promote the American Dream of homeownership.
Homeownership Month was created both to encourage current and future homeowners to be advocates for homeownership and to ensure current and prospective homeowners have their voices heard at local, state, and national levels of government.
To many, the very nature of owning a home offers people a sense of pride and security. It also represents a testament to one’s hard work and sacrifices. As an organization, FAAR believes it is vital to take time out to observe and promote homeownership not only for the personal benefits it provides, but also because of its proven ability to strengthen American communities, offer long-term, generational building opportunities, and for the institution’s ability to stabilize and solidify America’s broader economy.
To that point, real estate is an essential driver of our economic growth, accounting for more than 16% – or $3 trillion – of America’s Gross Domestic Product. In the United States, home sales support more than 2.5 million private-sector jobs in an average year. And over this past year, thanks in part to millions of dedicated Realtors® and countless hardworking homebuyers, the real estate industry did its part to keep the country’s economy afloat during the pandemic.
A recent study from NAR – the Social Benefits of Homeownership and Stable Housing Report – shows that homeowners tend to be happier and healthier. On average, they vote more, volunteer more, and contribute more to their communities. And their children tend to perform better academically and socially, too.
As Homeownership Month continues, the Fredericksburg Area Association of REALTORS® hopes to facilitate a conversation – engaging current and future homeowners – to highlight the importance and critical benefits of homeownership in America.
FOR IMMEDIATE RELEASE
For More Information Contact:
Lisa.Williams@TopsideFCU.org I 540.413.3889
DAHLGREN, VA (June 1, 2021) – Topside Federal Credit Union, the area’s largest locally owned credit union, recently awarded scholarships to five students from King George, Fredericksburg, Stafford, and Spotsylvania.
Applicants were tasked with researching the importance of financial education for students their age, developing an outline for a financial education program that would appeal to their peers, and identifying the impact their program would have on their future. Among the numerous entries, the five winners were selected based on their creativity and outstanding essay structure.
The local winners were Braden Yates, Emma Shaeffer, Dana Jensen, Hayden Kendall, and Aren Wallace. Yates, the recipient of the Harry C. Ovitt, Jr. Memorial Scholarship in the amount of $3,000, is a graduate of Massaponax High School and plans to attend The University of Virginia. Shaeffer, recipient of the Jesse Miller, Fredericksburg (VA) Alumni Chapter, Kappa Alpha Psi Fraternity, Inc Scholarship in the amount of $1,000, is a graduate of Fredericksburg Christian School and plans to attend Lancaster Bible College. Jensen is a graduate of Jensen Academy and plans to attend Germanna Community College. Kendall is a graduate of Stafford Senior High School and plans to attend Savannah College of Art and Design. Wallace is a graduate of Stafford Senior High School and plans to attend James Madison University. These 3 individuals are recipients of the John J. Walsh Memorial Scholarships in the amount of $1,000 each.
Topside’s scholarship program has been offered to student members for over a decade. Application guidelines and details can be found at topsidefcu.org/scholarships.
ABOUT TOPSIDE FEDERAL CREDIT UNION
As a member-owned financial cooperative originally founded in 1961 by the employees of the Naval Weapons Laboratory in Dahlgren, VA. Topside has more than $450 million in total member assets serving 40,000 members. Visit topsidefcu.org or call 540-663-2181 for more information.
The Fredericksburg Area Association of REALTORS® Member Spotlight feature allows members of the community to get to know each other before working with each other in a transaction. Each member answers a series of questions to reveal more about themselves as people. It is FAAR’s hope that learning about an individual may spark connections that blossom via email, phone conversations or in-person meetings at events and classes.
Ellery Centre, NY
Loan Officer “Captain Mortgage”
Number of Years in the Industry
Why do you love working in real estate?
I truly love to help people realize the American Dream through home ownership. It especially brings me joy when I get to help fellow veterans and first time homebuyers.
What are you most proud of in your career?
Helping people and doing well enough to care for my family.
Do you have a special cause or volunteer your time? Tell us about it here!
Every quarter I make a donation to a veteran charity that helps with mental health. Also, just recently we’ve started donating our excess farm fresh eggs to local donation centers/food banks.
Some of my agent partners refer to me as their “country lender” as one of my greatest passions is growing/raising my own food on the Hallett Family Homestead.
Everywhere we turn, we are hearing about short sales. Today we talk about why the topic of short sales is so prevalent, how short sales today are a little different than 2008, and what you need to know to get started.
Interested in learning even more about short sales and how to be repaired to work with one? Check out Short Sales 101 at bit.ly/shortsales101
Mackenzie Rathbun 0:01
Welcome to FAAR louder, your official Association podcast. Hey, FAAR listeners. Thanks for joining us. Today, we’re going to talk about short sales with Ali From century 21 Red Wood, and she’s gonna give us a little bit of the ins and the outs and why it matters today. So Allie, thank you so much for being here.
Ali Allen 0:20
Thank you, thank you for having me. I love short sales, I’ve been doing short sales for the last 13 years, I got into real estate in 2008. So all I know, was a depressed market. The last five years for me have been really interesting because suddenly everybody can afford their homes. So while she says I’ve definitely dwindled in the last five years, they are still out there. I recently just closed one that started out as short sale and because the market is so great actually wound up being a full payoff and the owners got money back. So even if you start with me as a short sale, if the money is there, we’ll put you into a regular sale, you don’t have to go through a short sale. So that’s been really fun for me to see the transition as the market comes up. And now that we’ve got the COVID and stuff possibly coming back down, but we’ll get into that here. But absolutely.
Mackenzie Rathbun 1:05
So to start us off, can you explain a little bit about what a short sale is?
Ali Allen 1:09
Sure. So if you’ve never heard of a short sale, you’ve been living under a rock or you haven’t done it forever. A short sale is basically when a homeowner owes more than the house is worth. So for example, if a homeowner owes us $150,000 in their mortgage, and we put the house up for sale for 200,000. After all the closing costs are reduced after the Commission’s are reduced title fees, etc. The payoff to the mortgage is now $100,000, or maybe 125. So versus 150, to the what they owe versus the 125, which is what they’re getting. We have a $25,000 shortfall. So we’re asking the bank the lender to wipe out and delete that $25,000 no longer collectible, no longer enforceable any of that. So a common misnomer is that the short in short sale or first time, but it’s actually the short payoff amount that we’re actually actually asking to reduce and wipe out.
Mackenzie Rathbun 2:04
So really, it’s just the bank saying we’ll forgive the debt for this amount, because we’re going to see our return now instead of a writer. So they’re going to
Ali Allen 2:12
basically they’re doing is they are getting rid of a non producing loan, again, at the height of short sales, everybody was in pain. So nobody was producing all these loans. They weren’t making the banks any money. So they get rid of those they bring in a buyer who is going to be called a producing loan, the person who’s going to continue making their payments was 30 some years. So that’s what you’re doing. You’re getting rid of a non producing loan for producing.
Mackenzie Rathbun 2:33
Absolutely. Okay, very cool. So we’ve actually heard kind of a buzz around short sales right now, you can’t really go anywhere without hearing people talking about seeing, thinking they’re going to see them come up. Yes, um, what, what are some of the factors that are leading into this buzz around short sales right now.
Ali Allen 2:52
So prior to COVID, so I’m going to take you back to 2019. Before all the world went crazy, um, the main top three reasons for being a short sale at the time were relocation, divorce and retirement. So it was no longer disguise falling my credits shot and losing my job. You have to remember back in the bubble, not only were the sellers losing their jobs, but the buyers that were buying the properties were also losing their jobs. So we were losing contracts right and left. Now overseeing like I said, is more divorce relocation. It’s the reduction in income, a lot of first name fall offs, but we’re still negotiating a short sale on maybe their HELOC. Right now with COVID. What I’m raising my alarm bells on the red flags that I’m seeing are these forbearance loans. The people who have not paid their mortgage, whether they started back in 2020, or 2020, all the way through now or sometime in between there, as you have one client who hasn’t paid since February of 2020. So she’s looking at possibly a one and a half year, non payment loss. And we don’t know what type of program the bank is going to offer her. This is completely uncharted territory, just like it was back in oh eight. So what we can do is prepare our clients with what’s called a business decision. If they are facing financial difficulty, it is a business decision to sell it now, while the property market is still so high, it’s so great, they might still have equity to offset the losses that they’re going to take in those forbearances. The other red flag that I see that I don’t know if anybody’s really asked I haven’t heard, please if you notice the answer, please call me Give me some some info. What I’m afraid of is that the people who took a forbearance and are not paying down their principal, the interest may still be collecting. So while you have the equity like my current seller just got an extra $50,000 equity. So you have this equity that’s building but if your principal is not being paid and that interest is coming up, eventually you’re going to miss that mark. That’s the red flag that I’ve seen. That’s what I’m worried about. I think that’s what everybody is kind of thinking the difference here between 2007 to two 2008 is that it is no long, it’s not that everybody is losing their job, everybody’s losing their savings, everybody, including buyers are going to be losing their jobs. No. Last year, there was so much free money in the market, between PvP loans, SBA loans, stimulus money, some people may have hand over fist and stocks. So for me, I think the craze of the buyer market may dwindle down a little bit now that all of that free money is kind of gone. And with the forbearance ending in June, we’ll see they extended again, along with the eviction and foreclosure. I can never say the word memorandum tutorial. Whenever that ends, that’s a big trifecta that is about to burst. And I think a lot of people are gonna fall through the cracks. They’re going to have programs just like they did in 2007 2008, they’re going to try to put money in here, we’ve got a landlord relief, we got renter relief, but you have to jump through those hoops to get it. And if you don’t know that you’re just going to sit in your house and kind of bury your head in the sand going, Oh, well, they can’t foreclose on me, they can’t evict me. That’s not true. They are evicted. They are foreclosing. If you have a property that’s been abandoned, and there’s nobody to effect, you’re at the front of the line. So please be careful on some of these things. When you’re talking to your clients, please make sure that they understand that it is a business decision, take the emotion out of it. I call it short term pain for long term gain. And I go over that here a little bit.
Mackenzie Rathbun 6:26
So I’m a little bit back on what you said, for these property owners who did own rental properties who maybe didn’t get a new tenant in there, they might be in a position where they need to sell the houses to come Yes.
Ali Allen 6:38
So that’s the other reason why we’re seeing our rental market explode right now. or similar to our buyer market. Why there’s no rentals is because all of the people who held on to their properties in 2008 2009, when the market dipped it became landlords are now suddenly seeing their gains that if they held on to the property, so now they’re selling them for top dollar. And now that rental property is now gone. And we have several of those, I do some work with some property managers here were probably a good handful of the owners have decided not to rent and decided to sell instead. So it’s all sort of, you know, symbiotic and all connected with short sales and people’s business decisions in the market and all of that. So if you have to remember back in, oh 708. When people lost their homes, it’s because the adjustable rate was so high up. Okay. So somebody who paid interest only on $17,000 a month, suddenly had their arm adjusted. And to add in the principal, their new payment was like, say 20 $200 a month. So they made the business decision to sell that as a short sale, and they went into a rental as 17 $100 a month. So rentals became super popular because all of those homeowners now suddenly became renters, those guys now are at a position where they should be able to buy again. So those guys are buying, they’re now in the pool. And those rental houses are now being sold. So it’s all intertwine from way back again, 10 years ago, and here we are again in the same position. So for me, I’m just preparing everybody, I don’t want this guy to fall, I don’t want you to have to sell your house because of COVID or because of financial difficulty. But we are here for this purpose so that they don’t fall into foreclosure. You don’t want that the short sale is always going to be better than foreclosure in the state of Virginia.
Mackenzie Rathbun 8:26
Absolutely. So definitely, knowing how to be an agent to service those needs would be very important. What are some things that I would need to know as an agent looking to maybe start working with short sale perfect. So
Ali Allen 8:39
as a listing agent for a short sale, you have to qualify the homeowner first before you even take the listing. So these are not going to be their typical listings where you’re negotiating your commissions your negotiating condition compared to other comparables with short sales, when you do your CMA, you can generally discount about 5% off of that, because you know that it’s going to take a long time for the buyer to sit there and wait, you have a lot of work to do as the agent. So again, before you take the listing, you’re gonna have a one on one, sit down with them. And you’re going to ask them what’s going on, the more truthful your owner is with you, the better you can help them on the back end, it’s all going to come out. Okay, there’s no hiding insurance sales, the bank’s gonna pull a credit report, the bank’s gonna pull a title report, we’re going to know if there’s extra liens or judgments on there, we’re going to know if they have extra debts that they’re not telling us about you cannot hide them short sale. So it is better for you as an agent and the customer to tell us up front what is going on. And we can put that information in our back pocket and use it to our advantage later down the road. So what I mean by that is if you’re going through a divorce, and somebody ran off with all the money, don’t be ashamed by it, just let me know where the money went and went went. I need to know that it was on this month and this much was taken and this is how much I lost. I don’t need to know that they ran off with so and so and you know, the whole emotional side of maybe the facts of the case, you just need the facts. Okay? So the reason being is that when you submit all these documents to the bank, all the banker sees his word on paper, right? They don’t have this emotional connection that we do over sitting across from them. I’ve had homeowners cry, I’ve had homeowners who have had death in the family, the borrower, it’s very difficult. You’re dealing with somebody who’s very angry that they have to sell. The banks don’t want to work with me, they just want to foreclose, no, they don’t, they don’t want to own your home. They’re not in the business of owning homes. They’re in the business of making money with mortgages, right? So you are doing a lot of psychological issues with the homeowner in this type of position. So go in and and just ask those questions. Why are you facing foreclosure? Questions a foreclosure? Why are you facing financial hardship? What drove you here was a divorce? Was it relocation? Was it COVID? Does it excessive credit? Do you just not have any more credits to be able to pay your debts? On top of that, then, once you get the financial statements, you want to make sure because the bank is going to ask for three months of back pay stubs. And they’re going to ask for three months of back bank statements. A good negotiator will then go through and say, okay, based on your income expenses that you’ve given me, for the previous month that I did, I will go through with a highlighter, and I will do my own budget. So I can see if you’re actually telling me the truth. Or if you’re not, because the bank will also go through your bank statements line by line, what they’re looking for are your other bank accounts that you haven’t given us. So they’ll go through and they’ll say, Oh, well, you transferred this bank of america account to bank account. 1234 $500, where’s bank account? 123. Again, you cannot hide. So being very, very upfront with that with the listing agent side. The other thing that you want to know is who is on title, who are you actually dealing with? Way back in the beginning, I had a husband who tried to sell a property without his wife’s knowledge. been super fun. So she called me all upset. I had no no no idea. But we did the title for and sure enough, she’s all title she’s allowed, she has to be able to contract. That is a big common misconception to that our question that I get, if husband is on title, but husband and wife are on the loan, okay, husband and wife’s that documentation needs to be submitted to the bank. But you only have to worry about getting everything signed, title wise with the husband, or vice versa. So husband and wife, we’re on title but only husbands all alone, you would only need the husband’s financial documents, but husband and wife have to be able to contract in the listing agreement. Wow, that’s a lot to juggle there it is. It’s a lot of information. So that’s why we talk about commissions. That’s usually why listing agents get a little bit more is because we do have to do so much on the back end of collecting documents and who we’re actually selling a property for. Another common thing to ask is if they are currently facing foreclosure. With a foreclosure stay right now, that’s not been a big question or common thing. But as we get into June and pass that when foreclosure start again, possibly. You want to ask if there’s a foreclosure sale date within the next 30 days, the reason being is nine times out of 10. Most short term lenders will not take a short sale file, if there is a sale date within 3030 to 31 days. The reason being is that there’s just not enough time to get documents together, get it listed, get an offer, get documents to them, get an appraisal done and get back to find out if that offer nets them more than the open market.
Mackenzie Rathbun 16:20
So obviously, there’s a different timeline for every closing when it comes to short sales. But is there a general overview of a timeline that you can give us that maybe we could know where we would be in the process? Yes.
Ali Allen 16:34
So generally speaking, short sales, the only thing that changes in short sales are the sellers financial situation, everything else generally is the same. So you’re going to have the same 30 day window for document collection 30 to 60 days is going to be your appraisal timeframe. So the phrase being ordered, returned, reviewed, and then the next 60 to 90 days is going to be the final investor review. So no matter if you’re on the listing side, or you’re on the buying side, your timeframe should be somewhere between 75 to 90 days, 30 days for docs, then 30 days for the appraisal another 30 days for the investor review.
Mackenzie Rathbun 17:08
Okay, so what are some of the steps that go on in each of those segments.
Ali Allen 17:13
So depending on the loan type, we talked about FHA being different than conventional VA. So I’m going to talk about FHA first, and then we’ll talk about conventional and VA. FHA, they have what’s called approval to participate. It’s called ATP for short. What that means is that the seller is pre approved to be determined to be eligible for short sale. So when you have the listing, and you’ve got the listing going, it’s active on the market, you’re going to submit the listing agreement, an authorization, and the initial financial documents to the bank. I’m just gonna use Bank of America as our example. So I’m going to submit everything to Bank of America, Bank of America is then going to issue me a phone number, the seller calls and does an interview. Once that’s complete, the seller to RCV Bank of America then determines are the sellers eligible for short sale and they issue what’s called the ATP, the ATP will have exactly what the value is that they’re looking for, it will have the exact net they’re looking for. So the payoff that they want, how many days that you have to get that and if there’s any money going back to the homeowner, again, back in the heyday of short sales, and we had the half of credits and all of that ATP is delegated the homeowner about $3,000. To move out on that it dropped down to 1500 by a certain date and then zero to another date, I think it is now completely zero. Once the ATP is issued, any buyer who meets and or exceeds that minimum that requirement, their offer should be approved, pending review. So an FHA short sale, they are guaranteed 1% in closing costs for FHA buyers, conventional and VA, you will have to ask for what’s called a variance request. If you’re asking for the full 3% on FHA buyer, you will have to ask for the variance request anyway. Then you have the final approval for the contract. So you have two part approval on FHA, you have the seller approval, seller side only approval with the ATP, and then you have the contract approval. And you start FHA when you list the property, conventional and VA short sales, you will start the short sale once you receive an offer. Once you receive the offer, the bank knows how much they’re going to get and their payoff the value they’ll do their bpos, all of that. So that’s the only difference between FHA and conventional. The same thing that happens so this one, FHA starts the 60 days prior when you start listening, these guys start when you ratify and then those 30 6090 days start, okay. So FHA starts just a little bit ahead of everybody else.
Mackenzie Rathbun 19:36
Okay, so you get you get approved, and then you have all of these. So what do you do when you start getting offers like, what do you do? Okay,
Ali Allen 19:46
so the same thing will happen okay, takeaway in this short film is the name short sale when you have multiple offers because it’s a crazy market, right guys? multiple offers. You want to do the best that’s the best for your client and what’s going to be best for the bank. Okay. Nine times out of 10, you don’t want to take a ridiculously low offer, okay? This is not the sky is falling, we’re going to take it off for like, say 50 $60,000 under list, okay, in this crazy market, I highly doubt that would still happen anyway. But being realistic, okay, this was not the crazy market that we’re going through this is a normal market. If you list a property at 200,000, do not accept offers lower than I would say 175. Because now you’re trying to cover a gap, right? The bigger the gap, the more disappointment that buyer is going to have, the more disappointment the seller is going to have, the more disappointment and frustration you’re gonna have, because you’ve done all this work, and it just fall out. Right. So if I have an offer for 200,000, and I see that the listing agent has ratified an offer for 150, that just hurts my heart, because we have a $50,000 gap between what you as the listing agent said the market value was worth and what you ratified, don’t do that to yourself, you have the opportunity to counter even before the bank sees it. So you get a ridiculous deal offer counter, if they can’t come up to that price, then don’t waste your time. Okay, a $25,000 gap is much easier to cover that $50,000 gap. So if I’m using that example, offer price at this price is 200,000. buyer maybe offer up 150. Say the bank counters at 180. Well, we’re only $20,000 off this price. But we’re $30,000 off this price. So the buyer has to come up so much more than what the bank wants, well, maybe the bank counters at 190. So you seem to think that you’ve got to cover all of this began. Don’t do that to your buyer. Don’t do that to yourself. Don’t do that to yourself. So be smart about your pricing. If you think even as a short seller, you’ve taken the condition and how long this process is going to take into consideration. And the property value is 200,000. Don’t deviate too too far from that. I would only say 25 to $30,000 off list. Because the bank is going to do their own appraisal, their BPO and all of that. So don’t set yourself up for failure. Don’t set your buyer up for failure. Okay, don’t don’t let them do that to you.
Mackenzie Rathbun 22:05
Be realistic. So there is a lot to know when you are being a buyer’s agent. Yes. Or when you’re being a seller’s agent, what do you need to know when you’re being the buyer’s agent? In those situations? What’s kind of different about
Ali Allen 22:17
it? Okay, so you have to take the knowledge that you have as a listing agent for short sales and put it to the task of buyer’s agents. So you have to know where you are in the process as a buyer’s agent. So as I said, All short sales have the same 3060 day 90 day window. As a buyer’s agent. The first question that you’re going to ask is if it’s an FHA short sale, as I said, FHA short sales can begin at the time of listing. So if you have an FHA listing, and they haven’t started, then you know, automatically that your buyer is going to have to wait an additional 30 to 90 days on top of the original 30 to 90 days, they’re short sale review. There’s not a whole lot they can do other than wait, the first 30 days is just Document Submission. So you’re just calling up every week. Hey, is there any change? No, Cool, thanks, keep rockin. Once you get to the 60 day mark the 45 days 60 day mark, that’s when you want to start asking about the value being ordered a negotiator being assigned. So I know in the earlier I use the equivalent of the roller coaster. So you have to think like here’s your listing. Here, now we’ve got a contract. So our first 30 days, we’re going up the roller coaster, the value is here we’re crushing the roller coaster, and then the investor with you to the final decision, we’re coming down the roller coaster. So basically, once your your value is in, now you’re just waiting for it to come in. And that final investor review. Okay, those investor reviews take anywhere from 10 to 30 days. So it’s all downhill once that value is in you should now 10 to 30 days, I should have a final decision. So as a buyer’s agent, and you cannot call the lender, you cannot call the foreclosure attorney, you really have no power, you don’t have the information that you need to get past the recordings. To get your authorization to do all of that, the best thing you can do is sit tight, and wait and reassure your buyer that the first 30 days of no updates is normal. And remember, 30 days is 30 business days, not 30 calendar days. So when I tell you 10 business days, that’s two weeks and calendar days. So remind your buyer that hey, today is only day three of 10. Today is day 25 of 35 more days. So the more that you’re open with your buyer that this is normal. Hold on, don’t panic, the more they’re more confident that things are progressing, even when they don’t seem like it on your end because the back end, they’re doing all kinds of stuff. As a buyer’s agent, just make sure that you haven’t missed any initials. Make sure you’ve got your ratification date, make sure you’ve got a closing date. Make sure your pre approval letter is dated within the last 30 days and just hold tight.
Mackenzie Rathbun 24:50
That’s really as a buyer’s agent. It really is important to know everything the sellers agent knows though but yes, it is that process and knowing and having the confidence To tell your buyers, hey, it’s been 30 days and we haven’t heard anything. It’s okay. He says, This is the process, yes. And to be able to come with that authority to it. So you don’t
Ali Allen 25:12
have to know all the ins and outs like a listing agent or like myself, you don’t have to know the lingo, certain lingo. But you do want to have a basic understanding of where you should be within your file review. I have had buyer’s agents come to me in my office and say, hey, I’ve got a short sale Is this normal? Where the listing agent has told us very whoever you’re talking to? Please stop? No, I’m going to ask these questions, because I’m going to ask very in depth questions to know where it’s at. That particular buyer’s agent got a printout of the timeline of everything that was happening, I reviewed it, I said, Yep, this is normal, it’s normal. These are your next steps. This is what you should expect. It went off without a hitch hereby or close within four weeks. So just be reassured if you need help, call me I will help you I will help you with the questions that you need to ask to actually get you understanding of where you are in that process for a buyer’s agent, because like I said, it can be very daunting to not know especially if you’ve never done them, you don’t know what questions you should be asking to get the information that you need to give yourself and the buyer the confidence to stay on the contract.
Mackenzie Rathbun 26:13
So in a market, where we are definitely seeing that short sales are going to be coming back where sellers agents are going to need to know and buyer’s agents are going to need to be aware, fully there was a place there where they could take a class about no Yeah, my gosh, like the fire academies class short sales 101, which will be July 16. And anybody interested can register at Bit.ly/shortsales101. The link will be in the description for the podcast today.
Unknown Speaker 26:42
Mackenzie Rathbun 26:44
what else can we expect to learn in this class that we maybe didn’t cover here today or couldn’t go in depth on so the
Ali Allen 26:49
people that have taken the class prior have told me that it’s like drinking water from a firehose, even talking with you and our little break here, you said that you learned just a little bit tidbits from the little drips that I’ve given you. We are going very, very in depth. So we’re going to talk about why people short sale, what to expect with COVID, what to expect the forbearance options, what questions you need to ask to pre qual during the financial interview, what documents you’re going to need to collect at the listing stage. There are case studies so that we really hone in on what the ATP is what that actually means that we go over what happens if a borrower is deceased, and they’re facing foreclosure in those 30 days, if there’s an active or close to bankruptcy, if they’re an active divorce. We’ve even done ones with active military overseas, how we do that over zoom, and DocuSign, all of that. And then the back end of that is how to buy a short sale, what to expect what questions to ask the listing agent terminology to know so that you know the lingo and what they’re actually asking for and what these abbreviations and all these acronyms actually mean. And then we do some case studies. So the very last case study, you will see why I’m so adamant about not seeing approval until you actually have it in hand. You will see how that played out and why that case probably would have lost to a lesser agent if they didn’t know what they were looking at.
Mackenzie Rathbun 28:13
Absolutely. Well I’m personally very excited about this class. I learned a lot today and I hope you guys have as well. Please check out the far website if you’re interested in taking profit again the link in the description. Thank you for joining us today and I catch you guys on the next episode.
Transcribed by https://otter.ai
To learn more about short sales, take our Short Sales 101 class at bit.ly/shortsales101
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