Millennials Staying Home. Multi-Gen Inventory is the SOLUTION!

"I'm pregnant"! Ah, the birth of a baby; nothing is sweeter (initially...ha). This joyous announcement is followed by $2,577.35 spent on diapers, and 1800 + bottles, annually. There is a $245,340 investment from arrival on the planet, through high school graduation. And, a final cost of approximately $85,245, for a 4-year college education.

These costs giving you a total of $333,162.35, to raise ONE kid!

With that said, OMG let's give us a pat on the back, a high-five, and freaking fist bump! We totally deserve it, Rockstars!

Now, GET OUT!!! (love ya, buh-bye).    

Wait. What? You want to know...if you can stay awhile? Um, no. But, thanks for asking. On the flip side, we've just invested a cool quarter million in this kid; what's another, or say...10 years?!!! Welcome, to The New Millennial Life Plan. We just signed on the dotted line as a co-borrower, baby! All joking aside, much of the information out there is pointing to this new trend and has been for some time. Not since The Great Depression in 1940  have we had so many young adults hanging around the house. Granted, post-TGD, for most households this lingering on was necessary. It took everyone pulling together to make ends meet. So, whassup now? Have we raised a bunch of entitled, spoiled brats? A group of child-like adults that don't want to spend their money, but have no problem spending ours (I mean..MORE of ours). Have we failed? Did we forget a couple of life lessons on finance and hard-work in the two decades we had them? Let's not be so hard on ourselves. More than likely, it's that darn "cost of living" thing...circa, 2015.

Despite reports that we are in a "recovering" economy, unemployment is down, and wages are up (slightly) it's still not enough. Sadly.

Check out what the stats say; it's a mixed bag of good and bad.

The data is pretty unnerving. 46% of college grads in their 20's are cemented in dead-end, low-wage jobs, the highest number in decades. The number or young adults earning less than $26,000 per year has risen to it's the highest level since the '90's.

Depending on how we look at it there is a lil' bit of good stuff in this situation. In a country that started developing a strong sense of every man for himself around the Reagan era, we lost an ol' school sense of family. Not the "nice to see you on holidays" gatherings kind, but the true all-for-one-and-one-for-all kin. Why did we ever get away from that? It's called "family" for a reason. I'm not a proponent of hand-outs, but I sure am an advocate for a hand-up. Life is hard, doesn't it make sense to give our kids the best start? Yes, raising them from 0 - 18 was a great START, but let's see what we can do with a bit of ingenuity and compassion.

Here's how this cradle to grave thing could work out for the housing market.

Okay, so if we've resolved ourselves to the fact (and hopefully embraced it, because we're cool like dat) that junior is coolin' in the crib a minute longer then here is a great strategy to make this time, and plan a win-win outcome.

A.) Set a clear timetable for how long he/she is staying. Without this game plan, there is no sense of urgency (which is what drives us as human beings), and there is no sense of calm for us, either. Let's be real; it's hard to stay relaxed when you're always wondering "when is (insert whatever, here) going to end"?!!! With a clear cut plan everybody scores.

B.)  Have a chat with a local lender. One of the biggest issues for Millennials is debt; and, at the top of that list is, student loans. Part of the strategy should be paying off bills, building a solid credit score, and saving. By consulting with a loan officer, families will have a clear approach to the making it happen!

C. ) Hang out at the bank a minute longer. We've got an application to fill out. Huh?

Let's take this "family bonding" to its nth degree. GO multi-generational!

Here's the breakdown of the bigger problem:

*Millennials are not earning enough money. They have too much debt and no established credit.
*Parents/Grandparents/Extended Family don't have enough space in their existing home or income to cover everyone's expenses. Bigger family. Bigger bills.

Solution 

Instead of cramming everyone into the current home, meant for Empty-Nesters, or the paid off family home in need of lots of updates, why not MOVE? Let's be honest. If the property was purchased 20+ years ago, it might be time for an upgrade! I wonder how many folks have been to a new home Open House, lately? Whoa! Gorgeous. I know, I know! We can't afford a payment like that"?!!! That may be right, We can't, but EVERYONE collectively can! Here is where the family part comes in! What if, homeowners started considering this idea?
Interest rates are still low, and many older owners are Vets, so they can use a VA loan. If our kids, who are now living with us have established good credit, they might be able to go on the note. Being on the mortgage would help move them toward a home of their own within a year or two. Ok great, but what happens when the kiddos roll out, and now Ma and Pa are stuck with the mortgage? We can take that lovely equity, and refi with a nice LTV (loan to value) or sell it.

Well, that's a lot to ask. I mean all that packing, moving, unpacking. A huge commitment. Here's a little secret we signed up for that "huge commitment" at Wha!!!

Every membership has its privileges. With the M-G Membership, we get family fun, economic savings and stability, and a beautiful new home! The housing market perk is movement forward!

We went Green...now, let's go Multi-Generational! Pitch it, Sell it. Propel it!



"No man is an island; entire of itself" ~ John Donne

Who's winning the RACE for Seller's homes? Investor or Realtor?

The squeaky wheel gets the grease, the client, and the cash, and so on. We've all heard that phrase before but how many of us are practicing it? With over 7.3 billion people on the planet I think you should leave your oil can at home, and go on ahead and make some noise!

Competition is tough these days, for any kind of business, but sales (of any kind) edge out most careers. We have to be more creative, more tech savvy, more educated, more skilled, more social, more, more and more! Thanks to the super highway of information these days we have to be even more determined to win!

Get out of our pit...you ain't part of the crew!

Here's a little secret. Guess who just wandered into the pit, toolbox included? Street Flippers. That's right! A bunch of smart, equipped investors. They've learned our tricks and they are using them...in overdrive. The starting line for business is beginning to look like the 405 at rush hour!

The good news is we have one thing they don't...a license, and that still carries some clout. Yeah, you will find some sellers that want to save that commission and will shake a grease-monkey's hand instead of a skilled Realtor. Certainly that is their option and best of luck to them. Yet, stats from the NAR say only 9% of the property sales are FSBOs. Basically, most folks eventually called a real estate agent to get that home sold.

The question here is not what lug nuts have these house flippers loosened that keep this business spinning, but how have we failed to apply our pit crew finesse to win the race? Why have we parked our Formula 1 car in the garage? You says there are no homes to list, no buyers to be had? Not true! What is real is how we forgot to speed after them. It's time we got out of 1st gear and show the street investors that we learned how to downshift, first!

“Speed has never killed anyone, suddenly becoming stationary… that’s what gets you.”

― Jeremy Clarkson

Don't let them pull ahead...3 "Refresher Laps" to win the race

From the new bumper car sales agents to the Mach 1 Realtors, here's a quick refresher lap to stay ahead of our opponents...

Want to beat out the direct competitor for listings? Here's how...

1.) Sellers are being enticed with the "cut out the middleman" gibberish. Awesome thinks Mr. Seller...if I sell directly to the investor no commission needs to be paid. Oh, I'm sorry Mrs. Investor were you going to help the homeowner look for their new home too, in this sluggish inventory market? Oh, that's right, for you it's about the win. Yeah agents, were about the client. Frankly, sellers are in park these days and others are just in neutral. All they need is a little push to get rollin'. I promise you it's not the interest rates keeping their brakes on, that's for sure. Most people that want to sell want to buy too, but are cautious. I've yet to meet a client that is okay listing their home in a seller's market and take a chance they will find a new one, given this crazy low inventory. This would render the seller, homeless. Yeah, not an exciting option.

2.) You betta burn some rubber to the small landlord's doors. Big time property management companies usually have their own pool of investors that are well taken care of. However, the not so big dogs might be "over" being a landlord. Granted, you need to approach them at the right time, but no one really knows when that is. So, you maybe just want to hover around the hoods to see who's skipping out.

3.) For Sale By Owner Seminar. Um, nah. What person in their right mind would come to a FSBO seminar run by a Realtor? That's a single-lane, dead-end road to a potential homeowner. Yet, if it were hosted and sponsored by a lender, would they go? Vroom, Vroom! Oh, you Ms. Realtor? You'd just be the behind the scenes "guest speaker" that happens to mention all the statics regarding FSBOs. Ya' know, just a little brain fuel to mull over. I'm thinking a registration sheet and a few weeks of their home on the market and they just might remember that "lil' old Realtor" at the seminar. Just sayin'.

YOU, be the high-octane fuel to MOVE the market forward 

Bottom line, there are sellers with homes to list, but they need a little push on their Big Wheels to get moving! More importantly, these homeowners need a secure feeling that the numbers are going to work and they will find a replacement home. It's not the commission that's keeping them from starting their engines, its, the unknown. Remember, an investor can't write an offer either, but you sure can.

So...on your mark, get set....go, Mario!

A WEIRD reason housing inventory could re-hydrate in 2016

No, I don't have a crystal ball, or a direct line to The Wizard of Odds. But, I do follow the news; and, have a memory like a steel trap, when it comes to issues of interest. I've always been intrigued by real estate. I'll leave it at that.

Shark attacks and lifeguards

Around 2006, when the housing bubble began showing signs of a burst; less homeowners could qualify for refinancing or HELOCs (Home Equity Loans), as most were arcing upside down in their mortgages. That term upside down (or underwater, as some say) simply refers to, owing more on your home than it's current market value. This bubble was partially a result of a slowing economy, and greed in the mortgage industry (yes, I said it...AND, out loud) offering home owners up to 125% LTV (loan to value) on their homes. I was a Realtor in the San Francisco Bay Area at the time; and was repulsed by the way my clients were being sucked into this predatory funding funnel. It's a basic rule of thumb...what goes up, must come down. There was a reason many mortgage originators were dubbed sharks...you couldn't see them coming, as they swam in for the kill (and, yes...of course, not all lenders were or are like this; there are some really good Cash Cats out there). But, I am happy to report, as the market began to recover...this time around we had lifeguards, with an established set of rules for lending money. Baywatch with bankrolls, if you will.

In 2009, at the critical juncture of the housing disaster; I was a Sales Director for a loan mitigation company. Please do not judge me...I had to work, in a sagging market. It was around that same time, The Treasury Department launched it's Home Affordable Modification Program (HAMP), part of the Stimulus or Recovery Act; and, my head was spinning with business. I couldn't keep up fast enough with the requests to "modify" home loans. Initially, I saw this as a good thing; the government swooping in like a superhero, and saving drowning homeowners from foreclosure. However, there were very few regulations, if any...and, when it was all said and done; many companies claiming to "modify your mortgage" ended up with new wardrobes and addresses, IE: Mr. Smith, Cell Block #1, Leavenworth, KS. Those that opted to stay legit, rode out the wave of mortgage mods, until the damn backed up.

Yet, as desperate request continued for help, so did the demand for stricter guidelines...and, ultimately we ended up with programs that resembled some sort of genuine relief for the home owner.

Tsunami coming

Question...what happens with every loan, of any kind? Eventually it comes "due". Guess what's comin' due? Yep, HELOCs, HAMPs, Mods, etc. COMING SOON to a theater near you...RESET - 2015. This is not the first tidal wave of mortgage changes taking place; but, it's the first mass amount since the 2010 forbearances, so to speak.

"Wait, I thought I heard there was an extension on these?" Yep...you've got one "til the end of 2016 (on a case by case basis...sounds about right for government programs; vague and non committal).

But, what does any of this have to do with where the buried treasure of housing might be? In a market that desperately needs a freight of Pierre saturating it...I'll share, how I believe this influx of housing could wash up to shore.

STICKER SHOCK.

Many of these mods had ridiculously low interest rates; some even had 0%. Various programs had home owners set up on interest only payments, or a ginormous principal reduction, lasting anywhere from 5 - 30 years. But, as a good chunk of these arrangements near their end; many owners will not be prepared financially for this catastrophic marriage of mortgage payments. The momentary relief (well, a half decade, plus is hardly a stint)...is soon to revert back to a fully amortized amount. Ouch! Tsunami underway, the climate is right.

Now what?

Washing onto the shore

Throw your fishing line out there; and see what you catch as an idea, regarding these house payment adjustments. Did the word default come to mind? Foreclosure? Wait, what? You don't think that could happen, twice? Here's a bite out of a stat provided by TransUnion, recently.

"After loan modification, close to 40% of owners remained current on their mortgage, 18 months into the modification. After 18 months, 59.1% of mod loans had a re-default; meaning they went 60 days or more past due. And, within 12 months, 42 percent had gone 60 or more days past due".

This post isn't about whether or not the bailout worked; it's about a concept...that a countless amount of these homes, are headed back into default; and, eventually foreclosure. And, they have to go somewhere. My highest, and best educated guess...surfing right back into the housing inventory. So, you think we are dry as The Sahara, now? Watch for that 2015 reset. My personal and professional opinion...a re-hydration of homes will be floating to the surface, very soon.

The TRUTH about public real estate websites; and, what they don't want you to know

"Um, I was wondering if you could check #527345, I saw it on Zillow. Oh, okay...how about 2777 Main Street, in OKC? Hm, alright then...weird, I just saw it on Trulia, an hour ago; how could it have sold so fast?" Sound familiar? Realtor or client, the conversation is always the same.

Why bother be authentic?

As a real estate veteran, I can promise you...I work hard. Long, number crunching, researching, taxi driving, prospect marketing hours. The BMW I drive; that did not come easy. That vacation, I finally took, after 2 years; I invested 70 hour weeks to pay for it. So imagine how it would feel when all the time and energy that you invested in your business, was stolen by someone else. And not only was it kidnapped; but, the numbers were changed, the text was re-written, and the dates were all wrong. Let's add a little more ammo to this feeling of frustration...in order to get your work back; you have to pay the assailant. Your own work being held for ransom. What I just described is happening to me, and Realtors like me everyday by heavy-hitting aggregators (company website programs that collect data and sell it back to the consumer). I'm not naming names; but, they rhyme with Pillow and Sophia. Take your best educated guess.

If I sound angry...you bet I am! As are many, many, many more of my contemporaries. Even those of us who have fallen into the trappings of the smooth talking CS agent who cons us into believing that we will fall desperately behind the tech 8 ball, without their services. I'm not going to lie. I paid. I did (where's the emoji of shame, when you need it). However, I have recently joined the ranks of the real estate sales professionals fighting back. I will not be cyber bullied anymore; and, truth be told...I hold the power. Without me (us, Realtors) these companies would have no business. We are finally beginning to depress the "blocked" key.

Oh sure...I want to waste my time, too

Well, blah, blah, blah...yay for me! What about you? The client. This little rant, and the potential resolution of the matter; could be more significant for you, than it is for me. Do you recall the first paragraph of this post? HOW many times has this happened to you?!!! Inaccurate addresses, wrong prices, availability not updated? Exactly! It is the most exasperating experience in the world (okay, not the world...but, pretty darn close). You want to get real? No one likes to waste time. Period. I don't care if you have the patience of Gandhi...no one likes to expend moments, carelessly. Time is money. Time is experiences. Time is valuable.

That said, this is the very reason that many people search for homes online. They supposedly save time; and in theory that makes sense. Yet, if you are using "Pillow or Sophia" type websites to search, along with various other public real estate search engines; you might as well, just get on the autobahn and toss your Timex out the window. Basically, you are driving on a high speed freeway of intersections and detours, that all reach a dead end.

Pull over...let me off here!

So, what do you do? What do I do? What do we do? We quit. We fire these search engines. I have been telling my clients for over a year now; don't trust the data on these mega home probing generators. I am person that needs more than "because I said so" to stop or start a quest. Therefore, I have some REAL facts, that might help you reach out to a Realtor instead, in your future property explorations.

How these "aggregators" truly work, is by shoplifting listing information from real estate professionals; found on various online publications and throughout the web. They then re-word, add content, use incorrect images and specifics (square footage, age, etc) regarding the properties...and re-post them, as their own. Then the "syndicators" (another word we use for them) turn around and sell the Realtors the rights for specific advertising spots, along side a bevy of homes for sale. I can't speak for you; but, how confusing is that? Now, you are not only hoping you are viewing a home with correct data; but, who in the heck has the listing? Which of those 3 - 5 Realtors that I see, is the one to call? FYI...I am the one writing this...and I'm befuddled!

I bet you didn't know any of this; and if not; then "they" have done their job. Keeping you from precise material, in an effort to make the big moola! Their intent is not to make your life easier...it is designed to make them rich.

Rhymes with SOLUTION

My suggestion...stop. Hit the brakes. Get off at the next exit, and stop the madness. If you want to be "taken for a ride"...then jump in the car with a real estate professional; and quit wasting time. Your local multiple listing service (MLS) has a far more credible search engine; that can be used to locate your new home. All you need to do is Google "Public MLS" for your city. Here's an example of one on my website... http://centraloklahomaproperties.com/CMCCOWN.

We are the real deal...have been, are now, and always will be the true source for skilled house hunting, and accurate stats. Beep Beep!

How this ONE thing could kill your home sale

I feel comfortable, putting it out there; even if the only property you ever bought or sold was on a Monopoly board...you more than likely know what an appraisal is.

Cars, jewelry, art and antiques...just to name a few, are items that can be appraised. The purpose of an a appraisal is to advise you of the value of an item. The need for this information is to protect the consumer from overpaying for product(s). In real estate, the dynamics of an appraisal are a little different from those commodities, just mentioned. It can be important, both in the hopes of under-paying (this allows you to walk into a nice chunk of equity); as well as, being assured you are not purchasing too high, in the surrounding market.

Car, dog or thimble...value still has to happen

If your unfamiliar with process of a home appraisal; let me take a minute to help school you.

So, you buy the home of your dreams (okay, the starter home you'd consider); and, you are willing to pay almost any amount of money for it. It's the perfect location, the best schools, close to amazing restaurants, and hip coffee shops...whatever your thing is. You've been looking forever, or maybe you just started; and, the housing market is smokin' hot (again, for sellers)! You've been instructed, if you find a place you love; it needs to be snatched up! Positive that you have found "the one", you make an offer; they accept. Cool. Schedule inspections, order title work and an appraisal. Awesome, inspections are clear, title commitment in; Aaaannnd...the appraisal, doesn't appraise. Huh? Now what?

Or, maybe your a homeowner who is trying to cash in on this seller's market, by way of frenzied multiple offers being tossed your direction. Here's the problem with your potential pay dirt sales contract; unless your buyer has the ability to whip out his Black American Express Card to pay over the asking price; then, you can count on the average buyer digging really really...really deep into those non-designer jeans for that cash. Anything over what the appraiser says is value, is the buyer's debit, most the time. No deniro...no deal.

What happens if I can't collect $200 at GO?

In either case, you can clearly see from these examples, the effect of an appraisal; and the critical need to have an accurate one. Nonetheless, this brings me back to the question; what happens if the appraisal comes in too low? How is this deficit fixed, provided the buyer isn't either willing to, or able to pay the difference between the value of the property and the sale price?

Here are a few options:

1. Have a bomb diggity, Realtor that is on top of that low appraisal report. Basically, your agent should be calling other sales professionals, who have listed properties in the area, and that are now pending for stats. Appraisers are not able to use homes that have not yet closed, as a valid source for comparables. Therefore, your Realtor needs to do their research, to obtain exact closing dates, and sold figures in order for the appraiser to consider a review. Also, looking into the county accessor records for the subject property, and neighborhood sales is another solid way to build value. Your Realtor can then forward this information to the lender, who can share it with the appraiser; and in most cases you can get that value raised. Thus, eliminating the problem.

2.  "Can't we all just get along"? Everybody agrees to a little movement. In the most simple terms; seller comes down in sales price, and the buyer comes up in equal amounts. If you have a home that is in contract for $300,000, and the value came in at $285,000...then seller comes down $7,500 and buyer comes up $7,500 (without liquid assets or cold hard stacks; it would need to be built into an increased approval amount). The bridge has been gaped and the deal is still strong.

3. Seller won't budge, buyer won't budge; now, purchase contract won't budge. Deal...dead.

Got Boardwalk Place? Don't get greedy

You may be the Monopoly King, and, every Thanksgiving for the last 20 years, you've beat everyone in your family at the game; but, in the real world of buying and selling, Boardwalk Place cannot be sold 10 times more than it's value. Unless you plan on passing GO a few dozen times to pay that ten fold difference; your best strategy will be ask a fair price, and getting an equitable deal.

Reason has always existed, but not always in a reasonable form.

Karl Marx

STOP! How to get Realtors to stop calling, endlessly.

"Stop calling me! Don't send me anymore emails, text messages, postcards, flyers, calendars, magnets, pens, etc....get it"?!!!

"Why in the world do real estate companies make public websites available, so I can look anonymously; but, then require me to put in ALL my contact information to access them? And, then start with the endless and relentless contact efforts. Don't they get it? If I want to talk to a Realtor, I will find one and call one. Ugh".

I totally get this...and, I'm a Realtor! I hate shopping for cars, insurance, furniture; actually, anything that is going to barrage me with unsolicited phone calls or spam. I feel your pain. I do. I absolutely freakin' do.

We are not out to get you

But, can I share something with you? I don't know about any other real estate professionals out there, but, I do know for myself; my initial contact, sincerely is to help. You can trust me (funny, all salespeople say that), when I tell you...it is not all about the money. Honest.

I wrote and published this blog, to help alleviate some of the pressure you feel when the onslaught of "reach outs" begin. Simply by knowing that we really can take "no" for an answer; and, we aren't trying to convince you to buy a home or sell yours in first 30 seconds of communicating with you, may ease your mind.

I'm confident, it's a mixed bag of property peddles out there. Everyone from Guido on the corner, with his trench coat full of keys, belonging to the most decrepit fixer upper; to Mother Teresa speaking blessings over your new Habitat for Humanity home. So, how do you know which one is Mafioso and which one is divine messenger, before answering the call? You don't. That's the truth.
But, at the same time, you do need a car, insurance and a home...or you wouldn't have inquired. Come on, now...I do have a good point.

Accept it...and have a little faith

However, acknowledging and accepting the fact that these two types of Realtors exists; will help you squash the feeling, that all of us are on the side of evil telemarketer. Understanding, for as many whack jobs that are floundering about; there are equal amounts of genuinely caring agents, that really, really, really want to help. We will assume, that not every prospective client is in their line of work, just for the money. Neither are we.

Okay, so my linear blogging sucks today; but, what I am aimlessly trying to express is...take a chance. We won't ask you for your home address and be pounding on your door in 5 minutes, invite you into our office to sign your life away to a mortgage, or send you an infinite email campaign of properties...and heck if we do, tell us to stop! This is your property journey. Your choices.

I say live on the wild side, have a little faith in people, Respond to an email. Pick up the phone. Send a text back. Give us an opportunity to show you, our style of relating, our education, our experience, our passion for you, our new client! Nothing is more exciting to me then speaking to a budding new client, that took a chance, and spoke with me; and, I know soon I will be handing them the keys to their little piece of the American Dream.

Take a chance. It's worth it.

You're taking a gamble on real estate...why not take a gamble on a Realtor. The odds are in your favor (and we do comprehend the term "just looking").

Take a chance! All life is a chance. The man who goes farthest is generally the one who is willing to do and dare.

Dale Carnegie

Read more at http://www.brainyquote.com/quotes/quotes/d/dalecarneg132642.html#RjvMyfCZZ5mRs0Qx.99

FSBO = Forfeit Savings By Obliteration. Not, For Sale By Owner.

SO! You want to sell your home...(by yourself).

Awesome. No really, awesome. I'm a Realtor in the minority that says more power to you! It's not because I think "cool, you'll save so much money" (well, you actually will save some, if done right); but, more so because, I give major kudos to any unlicensed professional that knows exactly how to complete a home transaction sale, without any help from a Realtor. And, yes, asking a relative or friend with a license counts as help.

Aside from an air of sarcasm you may sense in my comments, I mean them with all sincerity. Let's face it, real estate is not brain surgery; however, we also don't get our license out of Cracker Jack box. We've taken the time to become knowledgeable, in order to pass a state and national exam; and exert additional effort after we are licensed, to stay current with new laws affecting those buying and selling real estate. We really do care about protecting our clients.

8 or so reasons to be a FSBO (until you reach #5)

That said, let's go over the steps it takes to accomplish a FSBO (For Sale By Owner).

Let me begin by telling you what I really think FSBO should stand for...Forfeit Savings By Obliteration.

Yep, I sure do. If I say nothing else in this blog, please here this...if you don't lose money, at the very least you'll lose time. And, what is that old saying, "time is money". Enough said.

Mindset of a FSBO (fyi...before being a Realtor, I was a FSBO):

1. Look on Zillow, Trulia, Realtor.com, Craigslist, etc., to get the true value of my home.

2. Put my home on every internet site known to man; and, then stick a box out front with some cool flyers.

3. Hold an Open House or two, with signs peppered along the neighborhood streets.

4. Show the house (it's easier to show it when I'm selling it, because the buyers have to work around my schedule). LOL.

5. Receive an offer, and review it. Geeze, I hope I don't miss something. Do I have all the paperwork? Who opens title? What are my closing cost? Do I call a lender for that or the title company? When do the reports all have to be done? What happens if there are problems with the reports? Do I have to pay for all the repairs?

6. I need to call someone. I don't want to hand over that extra 3%! I need that money.

7. Wait. The appraisal didn't come in at value; and, now they say they aren't going to buy it. Oh no, we are in contract, and they ARE buying it! What loan disclosure? I think we missed that page.

8. What? I just got to the title company to close, and the check was like thousands of dollars less than I was expecting to receive! HUD-what Statement...what's that?

Okay, well...up to about #5 you were Gucci, right? Trust me, I remember that feeling of "did they write this BRE contract in another language (like ig-pa atin-la)?!!! I also recall the feeling of debilitating fear and steadfast stubbornness at NOT calling a Realtor. Yet, I called; and, then I became one (mostly, because I really, really wanted to help people avoid my same pitfalls).

Can we REALLY talk, now

Can we talk, now? Let's get down and dirty here; truth be told, a FSBO happens because of money. You don't really care who "shows" the house or makes the schedule. And the old excuse, I don't want strangers in my home when I'm not there; uh, do you know that Realtors have to be fingerprinted and pass a FBI and State background check before we get that little Star Trek thingy to open your home up? I think you're pretty safe with us.

Back to the money. Just for kicks and giggles; let's go with a fact for a minute, instead of an assumption, and see what that looks like:

According the National Association of Realtors, 2014 the average FSBO sales price was $174,900; and, the average sales price of a home with Realtor representation was $215,000. That is a $40k-ish difference! So, see selling your home with a licensed professional will bring you a higher profit; as well as, coverning the commissions.

Another interesting NAR fact:

Most difficult tasks for FSBO sellers:

• Understanding and performing paperwork: 18%
• Getting the right price: 13%
• Preparing/fixing up home for sale: 12%
• Helping buyer obtain financing: 3%
• Attracting potential buyers: 3%
• Selling within the planned length of time: 7%
• Having enough time to devote to all aspects of the sale: 6%

Statistics-Shamistics, blah, blah, blah. But, wait...what about that little "fact" of $40,000 more on average, in your pocket, if you list with a Realtor. At the end of the day, which is more important pride, time or cash? I am confident, that is the one answer that needs no stats. Yeah, that just happened. Call a cool Realtor.

What kind of real estate client are you? Your answer determines your success.

Diva? Doormat? Determined? Which of these personalities are you? In the daily grind, it may not matter who you are. But, as a client, in the vast sea of real estate; it will determine your success, or your failure.

After years in this business, I have been able to pin a specific title to groups of people, with certain characteristics; and each of these titles is significant in relating to their style of buying and selling property.

Let's begin with the Diva

He/She comes to the table with one, of two (and sometimes both) mindsets. First, "I know everything" and second, "You know everything; so, I'll do nothing". Here are the obstacles with each mindset. If a Diva approaches the home buying or selling process with a "I know everything way of thinking"...why the heck are you calling me, then?!!!  We both know you are never going to listen to a thing I say; since, well...you now everything! Diva #2, client knows nothing (or more importantly pretends not to) so your Realtor is going to need a good pair of waders, because they are about to go in deep. Basically, your Realtor can forget their relaxed dock pole fishin' days. You are expecting them to catch a big mouth bass, and you will not be handing them so much as an itty bitty worm to catch it with. Problem, I can't read your mind, I need a sea mate, and I know you know a little something about property; because, truth be told, you became a Diva because you are giving The Donald a run for his money.

Diva Solution: Give me the opportunity to be the expert; you did call me. Also, it wouldn't hurt for you to reach into that bait and tackle box, and pull out a fishing line strung with interdependence. After all, it is your investment.

Doormat

Just as it sounds. "I don't really know what I'm looking for...I'm not sure why I'm looking...Well, the other agent told me to...My brother said I should..." How do you get out of bed in the morning without a coach and a cheerleading squad? When it comes to real estate, you have got to have some concept of what you want. That doesn't necessarily mean you need to be assured of the exact home design, bedrooms, baths, etc, etc. However, you do need to know important things like, when you want to move, what your loan looks like; and, if in fact you are sure this is what YOU want to do. Please, never knock on the door of a Real Estate office (well, in this age of electronics..send an email) because your mother's best friend's cousin told you it's a good time to buy. For god's sakes, if you like your rented studio apartment...stay!

Doormat Solution: If YOU really want to buy; then do it "like a boss"! Use your words, pull that big voice from your belly...and let's go buy a home!

Determined

Let me just say, if you are this kind of client...I love you; and you should love you, too. Reason? You will be a success in your real estate investments, before you every need to tweek a thing.
You are best described as decisive, pro-active and a team player.

Let's take a minute to break down each of these adjectives

1. Decisive. You have already decided you want to buy a home.

2. Pro-active. You have also determined, that to do so you need to visit a lender to qualify (this will include checking your credit). The lender can tell you what your purchase amount will be, what your payments will look like and how much money you will need to close the deal. Additionally, the Determined client will have considered, area and specifics of the home they are looking for (this is not necessary, just a plus).

3. Team Player. In all honesty, this is the most important aspect of this triple-threat combo. Regardless of your decision making abilities, and your awesome "go-getter" attitude; if you can't be cooperative, and considerate in the home buying or selling process, it will fail.

Your success

Your success ultimately boils down to how willing you are to listen to the voice of experience, combined it with kick-butt decisiveness and determination; and, finally being as eager to follow the necessary steps to home ownership, as you are prepared to bait the hook, be the sea mate or share your research like a champion angler. I promise you, your internal rudder enveloped in these attributes, will guide you to real estate success!