Septics Are Gross, But They Don't Have to Be Stressful

When you think of selling a house, it's all about making the house look great for buyers, cashing in on your investment, moving on to the next exciting chapter of life, etc. Fun! You don't tend to give much thought to the challenges that you will face during the process: the hard work of decluttering, the home inspection crises, and least of all the septic system (yuck).

In MA when a house changes hands, the seller generally has to spend $300-$400 to get said system inspected, which is unexciting enough. Then, if the system needs repair or (God forbid) replacement, the unanticipated costs and the headaches rise exponentially.
  
How can you avoid these challenges before you put the house up for sale?

1. Maintain your system well by having it pumped every 2 years or so.
2. Don't use your toilet like a trash can.
3. If you're planning to sell in the next 6 months, go ahead and get an inspection. A certificate of Title 5 compliance is good for 2 years.

If you are already up to your neck in septic issues (ew), there are still things you can do to ease the psychological and financial burden:

1. If the cost of repair/replacement of your system is prohibitive, there are low-interest loans available through Barnstable County.
2. Many septic companies will do the work on a house that is under agreement and wait to get paid until the house closes.
3. Don't be afraid to ask your local septic company for their help and advice. They see these challenges every day and understand your struggle.

Too Good for Up Time?

In my pre-Realtor life, I looked upon the real estate industry with disdain.

Those people have no soul, no pride! Ugh, I would never waste two perfectly good weekend hours parked in an empty house like a bottom-feeder waiting for a tasty buyer to swim by. Or worse, fritter away an entire morning or afternoon as a volunteer secretary (aka Up Time, Floor Time, 'Opportunity' Time...). Where is their dignity? And really, how hard can this job be? The bar for entry is not exactly high. Someone as educated, brilliant, and worldly as myself could surely be running circles around the masses without much effort.

One day during that time I was chatting with my friend Lori, a very successful businesswoman and a pretty terrific person. She's also one of the classiest people I know. Which is weird, because she's also a Realtor.

She's so good, she makes real estate look good.

At that point in my life I was growing dissatisfied with my career and looking to do something new. Lori suggested real estate. I spit out my coffee.

You must be joking--those people eat their young! ...Well, except of course you. ...Hmm. Perhaps it is worth exploring another perspective...If I could do business the way Lori does, maybe I would consider it.

Fast forward through a few weeks of intense coursework and no-joke studying, and there I am, newly licensed, stepping through the door of Lori's office.

I found out very quickly that real estate doesn't much care how many degrees you have, or if you're pretty, or can speak French. That's all well and good, but real estate is more interested in what time you get out of bed, how fast you respond to email, how thick your skin is, how many phone calls you can make, and what makes you give up (or keep going).

I learned that doing well means going outside my comfort zone. If I want business I have to go find it; and when I look everywhere, including floor time, open houses, on the phone, etc....I eventually find it. Some people think it's just dumb luck when that 'random' new client 'just shows up'; but I go back to the old saw: The harder I work, the luckier I get.

I'm not gonna lie, I still get antsy at a quiet open house. But I always bring along a stack of thank you notes, my laptop, and the latest issue of Realtor Magazine so that my time is never wasted. And I wasn't entirely wrong about the soulless bottom-feeders; they're out there. But they're everywhere; every industry has their own version.

The biggest lesson I've learned is that a successful career in real estate demands the highest level of character in the form of focus, courage, faith, integrity, perseverance, commitment, and sacrifice. The best people in this business are people I really like to be around. They are smart, ambitious, and yes, very classy.

Not Particularly Great Mortgage News

This just came to my inbox. Kind of a big deal...

Good Afternoon William Raveis Sales Associates,
If you are working with clients aiming to buy and finance a home in the near future, you’ll want to be sure to close the transaction before the end of the year.  There are several changes on the horizon for the mortgage industry that may make it more difficult and more costly to obtain a home mortgage.  To beat these changes, buyers should aim to sign an agreement by November 1st  so they can allow time before the holidays for an orderly 2013 closing.

Here’s what to look out for in 2014:

Tighter Guidelines on the Amount You Can Borrow
In January of 2014, a new mortgage rule from the Consumer Federal Protection Bureau (CFPB) goes into effect.  The rule, which impacts the entire industry, introduces a concept that will discourage lenders from making mortgage loans where the debt to income ratio exceeds 43%.

So what does this mean? If these rules were in effect last year, roughly one-fifth of all home-owners would have had to either increase their down payment or buy a less expensive house.  William Raveis Mortgage estimates that the implementation of this rule alone could negatively impact the maximum amount that a buyer could borrow by about 5%.

Negative Impact to Interest Rates
It is widely assumed that interest rates cannot stay at historical lows.  The Fed has already begun pulling back on their strategies that have kept rates artificially low, and we have seen rates jump upwards in excess of 1% since the summer.  In addition to the financial and monetary factors that will push rates upwards, there are regulatory factors that will negatively impact rates as well.  Firstly, the role that Fannie and Freddie play in the mortgage market will be diminishing.  We have seen these entities decrease their maximum loan amounts, and they are scheduled to drop even further in 2014.  The government is hoping that private investors will fill the void, but with few entities in this arena, we can expect that private investors will want a higher return on their investment – pushing interest rates to borrowers upward.

What Action Can you Take?
1.     Make sure to inform your buyers of these regulatory changes.  Sellers will also be interested, as the potential pool of buyers may be impacted by these changes. For more on this see http://files.consumerfinance.gov/f/201301_cfpb_ability-to-repay-summary.pdf

2.     If you are near your maximum mortgage amount and deciding on a closing date, make sure to schedule the closing before the end of the year.  Signing an agreement in early November will assure a smoother transaction.

3.     If your buyers aren’t going to buy before year’s end, make sure that they are pre-approved again, in accordance with the changes, so they can confirm their maximum borrowing amount.

Please feel free to contact any William Raveis Mortgage Banker for further explanation or assistance.

Best Regards,

Ryan


Ryan Raveis
Executive Vice President
Direct: (203) 925-4553

Realtors are People Too!

Click on the image to go to the Raveis Blog post about Katie Clancy

You're Already Behind

Here we are at the peak of the summer season here on Cape Cod. Some people are enjoying their last summer in their Cape house and thinking of selling sometime after Labor Day. But if they haven't started the process, they may find themselves selling a house with a Christmas tree in it. Most people underestimate how much time it takes to get the job done. Here’s a quick breakdown of the timeline:

Close by the holidays                                                                             November 15

On market 10 weeks                                                                              September 1

Prepare House 4 weeks                                                                        August 1

Valuation, paperwork, photos 1 week                                              July 21

Interview and select agent 1 week                                                    July 14

You’re already behind!

Navigating(?) Cape Cod

If you find yourself a little lost while visiting Cape Cod, take heart. It’s not you; it’s us. The Cape is already geographically irregular. Add to that the meandering nature of yankee settlers, and you start to think that the mapping of the area might have been designed specifically to sort out the locals from the washashores. And you’d be partly right.

We’re a pretty proud bunch here on Cape Cod, and have a love/hate relationship with tourists. On the one hand, when our population explodes in the summer, it really mucks up the works for those of us just trying to go about our daily business. On the other hand, tourism is our biggest industry. And we actually enjoy the same things that visitors do: great restaurants, beautiful beaches, shopping, etc. So while we welcome tourism enthusiastically, we also tend to make it a little challenging for you to ‘get here from there’. But I’m here to give you a little inside scoop. 

Upper-Lower-Mid-Outer

(image courtesy of Cape Cod Chamber of Commerce)

Logic does not play a significant role in how we designate areas of the Cape. The Upper Cape actually looks ‘lower’ on a map. The Lower Cape is low, but only compared to the Outer Cape, which is actually the ‘highest’ on the map. The Mid Cape is the only one that makes much sense at all.

North-South-East-West

Image courtesy of Town of Dennis

The thinking is: How lost can you really get? You’ll hit water eventually. So for example, in the town of Dennis, West Dennis is as far south as you can get, and South Dennis is smack in the middle, and East Dennis is all the way North. Hyannis Port and Dennis Port are on the south side, but Yarmouth Port is on the north side. And in spite of Brewster’s rich sea captain history, there is no Brewster Port.

Route 28

Image courtesy of Wikipedia

This is probably the most confusing part. Route 28 actually starts in Orleans, goes south into Chatham, travels west along the south side of Cape Cod, then in Falmouth takes a sharp turn toward the north and travels over the bridge due north all the way to the Massachusetts-New Hampshire border. So technically it is a South-North highway. But for most of your time on 28 you’re actually traveling East-West, and for a good stretch from Orleans to Chatham, your compass will read due south while the highway signs will declare that you are traveling 28 North. Sorry.

This Business Ain't for Sissies

Most people in business know the mantra, Under-promise, over-deliver. Another brilliant iteration from Joe Niego of Buffini & Company is The root of all conflict is unmet expectations. Amen to that in all parts of life, not just business.

Real estate clients like to know what's coming, for better or worse. Any surprises along the way ought to be pleasant ones ("Hey, we got an offer sooner than we thought we would! Wow, Katie, you're the best!"). But despite our most careful planning and preparation, bad things happen that we could not have predicted.

The whole reason Realtors exist is to provide professional, neutral representation to someone who is entering one of the biggest financial commitments in their lives. Under the best of circumstances it's a big emotional event for the client. The point in a business deal when things start to go south is a critical crossroads. Stakes are high for both you and the client, and emotions naturally spike. As they say in the sports world, this is when **** gets real.

When you see your irate client's number come up on your phone, you will want to reject it with every bone in your body. Answer it. In fact, as soon as you get wind of a problem, beat them to the punch and call them. Communicate relentlessly, even if you have no new information. Your client might just need to blow off some steam. Don't take any abuse, but if they need to talk, you should be ready to listen.

In the end, if you do it right, that troublesome transaction is apt to yield the most loyal clients. Martin Luther King, Jr. summed it up well:

"The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy."

Multiple Offers #HotMarketProblems

Every real estate market, "good" or "bad", has its challenges. Most of us still feel the lingering sting of depressed prices and endless days on market from our just-recovering recession. But the housing market is rebounding, and the Cape Cod market is a great example.
Instead of properties languishing on the market for months, now agents hardly have time to get a sign in the ground before a listing is under contract. Where once a new listing was announced to an audience of crickets, now new inventory is pounced upon like fresh meat in the lion exhibit. Today's challenge is how to deal with multiple offers. Nice problem to have, you would think.
With multiple offers, things can get pretty dicey. A seller's agent needs to be mindful of their ethical obligations, and still work as hard as possible in the best interest of their client. According to Jeffrey D. Chute, Massachusetts Realtor and Instructor on Professional Conduct, here are your possible options:

1. Reject all offers.
2. Accept one offer if terms are acceptable to the Seller.
3. Submit a counter-offer to ONE party at a time.
4. The Seller does not accept nor counter ANY offer, but gives the parties a deadline (date and time) to submit their "highest and best" offer, whereupon the Seller may exercise any of the above.

When #4 is used, often all parties will feel they were given their best shot and those parties who are not successful won't lay the blame on others.

This very problem presented itself just last month. Shortly after a price reduction, one of our listings suddenly found itself with three healthy offers to choose from. We went with option #4, but the first buyer didn't stick! So we were really glad that there were two more still-happy buyers ready to make the deal. In the end, while not everyone got what they wanted, we were able to navigate a potentially awkward situation toward an amicable end.

Chute, Jeffrey. "Multiple Offers." Bay State REALTOR® Sales and Marketing. Massachusetts Association of Realtors, 1 May 2013. Web. 14 May 2013.

A Picture is Worth $1,000 (or more!)

This spring morning, most of us in New England woke to a big snowy surprise. Most of us were not exactly thrilled at this wintry aftershock. Certainly any Realtor can tell you that snow is not good for business, especially when you are in the business of selling summer vacation homes!

But I am of the mind that there is so little that we can control, we may as well control our outlooks. Upon looking out the window this morning I'll confess to at first uttering a few choice words for that lying sack of groundhog, but I quickly came around to this idea:

Get out there and take a picture of your house right now. All shrouded in white and peaceful...you could almost hang a wreath on the door, couldn't you? Now save that picture. And when spring finally comes around and the bulbs are blooming and the flowering trees are in bud, take another picture. Come July when the hydrangeas explode and the lawn is bright green and trees are full of leaves, get another shot of it. Finally, when the maples go yellow and the berries are on the bushes, capture it one more time.

You see, one of these days you are going to sell your house. You may already have a plan, or you may not  be there yet, but eventually you and your Realtor are going to be charged with the task of presenting your house as a place where somebody else would like to call home.

The way you present your home to  buyers is just as important as choosing the right price. In fact, the better your house presents, the closer your Realtor can place it to the top of its price range. By showing beautiful images of the house through the seasons, it helps a buyer imagine themselves enjoying the house at all times of the year.

So curse the groundhog and the weatherman if you must, but then buck up and start snapping away. A picture is worth $1,000 (or more)!

Negotiation: The Three Currencies

 

Every sticking point in a negotiation can be put into one of three categories: money, time or strife. At any given moment, one of these is going to mean more to a buyer/seller than the others, which means that concessions will need to be made in at least one of the other two categories. If you train your clients right from the beginning to recognize that there is more than money to be bartered in their transaction, you empower both of you to maneuver through even the toughest negotiation. Here are a few examples of how this strategy has been put to use:

• Example 1: A seller lived by herself in a large home, the sale of which was the last piece of a long divorce preceding that had her emotionally at the end of her rope. Just like every seller she had good reasons to want to maximize every angle of the negotiation triad. When an offer came in, the buyer would not budge past a number that was much lower than what the seller had hoped for (money). However, when the buyer promised to close quickly and accept the house in ‘as is’ condition, the prospect of a fast, painless transaction (strife) took some of the sting out of the disappointing purchase price.

• Example 2: In a bank-owned sale many banks require that a buyer make a big deposit very early in the purchase process (time). They also generally require buyers to sign an ominous addendum which strips away many of a buyer’s traditional forms of recourse (strife). Yet every day buyers agree to these terms because they are getting properties for rock-bottom prices (money).

• Example 3: The heirs to their father’s estate are presented with two offers side by side. One is a cash offer. The other carries a mortgage contingency but it is measurably higher than the cash offer. After much deliberation, they elected to assume the risk (strife) of the mortgage contingency in order to net a higher inheritance (money).

So the next time you find yourself with a client who has locked down a negotiation over ‘The Principle of It’, remind them that they are now heavily invested in the currency of strife. And you can help them win that battle, just as long as they let you know which of the other two currencies they are willing to give up.