If you represent a seller in the sale of real estate and that sale is to be subject to the seller purchasing another property, be certain the terms of that contingency are detailed, clear and are included in the offer to purchase.
We often see language to the effect that the seller’s obligation to perform is “subject to successfully contracting to purchase another property.” That is all well and good, but it does not fully protect the seller. Once the seller contracts to purchase another property that contingency is extinguished and the seller can be obligated to perform under the contract. We all know that contracting to purchase a property and actually CLOSING on the property are often two different events.
To properly protect a seller their performance should be subject to actually CLOSING on the purchase of another property by a certain date. If you have a seller that has questions or concerns about a home sale contingency please have them contact me. Or if you have questions about the specific and prudent language to use give me a call.
By John Chapin
You hear it everywhere you go: “Sales are down because of the economy. My customers simply aren’t buying as much.” There are some people out there saying the economy doesn’t matter, it’s what’s going on in your own head that matters. While it’s true that what goes on in your brain is always more important than outside circumstances, the economy is still what’s affecting many businesses. If yours is one of them, put the following seven ideas into practice and you’ll find that the affect on you will be minimal, and in fact, you may notice no change or even a positive one.
1) Don’t let the economy be your excuse.
After a tough day or some difficult sales calls, it’s easy to use the economy as an excuse. If you do, people will hear it in your voice and you’ll sell less. This attitude also leads to working less. In a down economy, when salespeople should be increasing their calls and activity level, the average salesperson cuts calls by 37%. The answer? Use the down economy as a warning and motivation to work harder and smarter, not as an excuse to back off. If you back off, business will go down, if you work harder and smarter, business will improve. As the saying goes “When the going gets tough, the tough get going.”
2) Get better at selling.
When there are fewer sales opportunities and prospects, you must do better with the ones you have. The way to do this is to get better at selling. Read books, listen to tapes and CDs, watch DVDs, become a sponge and absorb everything you can get your hands on. Using this strategy has helped many salespeople improve to the point where they actually sold more in a so-called down economy than they sold when times were good. Now is the time to improve your skills; constant and consistent learning is the best way to grow your sales.
3) Keep a good attitude.
Your attitude is your most important sales tool in your arsenal; you have to keep it sharp. Now is not time to read the front page of every newspaper and watch every newscast. Our brains are like computers “Garbage in, garbage out.” What you should be doing is putting as many good ideas as possible into your brain. Pick up anything that is inspirational, motivational, positive, and upbeat and use it to keep a good attitude and stay focused. Be positive and persistent. In addition to putting good ideas into your brain, surround yourself with positive people and stay away from negative people.
4) Prepare for the price objection and build value.
People are focused on price more than ever these days. Prospects and customers will do everything they can to commoditize vendors and simply go with the lowest price. Thus it is very important that you build value. What are your primary benefits? How are you, your company, and your product better than the competition? Are you local; is your long-term cost less, can you respond to service calls faster? You need to accentuate your primary benefits, make them as powerful as possible, and provide proof in ROI Models, testimonials, and the like. Finally, come up with some solid responses to the price objection. (more…)
Home affordability slipped slightly last quarter, dragged down by rising mortgage rates and recovering home prices in Massachusetts and nationwide.
The National Association of Home Builders reports a Q2 2011 Home Opportunity Index reading of 72.6. This means that nearly 3 of 4 homes sold last quarter were affordable to households earning the national median income of $64,200.
Q2 2011 marks the 10th straight quarter — dating back to 2009 — in which the index surpassed 70.
Prior to 2009, the index had never crossed 70 even one time.
However, we must remember that the Home Affordability Index is a national survey. From region-to-region, and town-to-town, home affordability varied.
In the Midwest, for example, affordability was highest. 14 of the 15 most affordable markets nationwide were spread throughout Ohio, Michigan, Illinois and Indiana. Only Syracuse (#9) cracked the list from other regions.
The top 5 most affordable cities in Q2 2011 were: (more…)
Standard & Poors released its May 2011 Case-Shiller Index this week. The index measures change in home prices from month-to-month, and year-to-year, in select U.S. cities.
May’s Case-Shiller Index showed a 1 percent increase from April 2011. Home values rose in 16 of the Case-Shiller Index’s 20 tracked markets. Only Detroit, Las Vegas and Tampa fell. Phoenix was flat.
Don’t look too far into the findings, though. Like the FHFA’s Home Price Index, the Case-Shiller Index is rife with flaws.
The first flaw of the Case-Shiller Index is its limited geography. Despite being positioned as a national housing index, Case-Schiller Index is sourced from just 20 cities nationwide. There are more than 3,100 municipalities nationwide.
The Case Shiller Index’s second flaw is that it ignores all home types excepts for single-family, detached homes in its findings. Condominiums, multi-family homes, and new construction are not included in the Case-Shiller Index.
In some markets, these excluded home types outnumber the included ones. (more…)
Remember a short sale is a desperate measure in desperate times. Desperate people do desperate things. If you are involved in a short sale transaction in ANY capacity cross your t’s and dot your i’s. If the terms sound remotely shady to you, it probably is and the repercussions can be terrible. Make certain that you have good counsel.
The definition of loan fraud is simple. According to the F.B.I. loan fraud is any material misstatement, misrepresentation or omission relied upon by a mortgage underwriter or lender to fund a loan.
The definition does not make any exception for white lies, half truths, fibs or creative facts. It says any material misstatement, misrepresentation or omission. In most cases if you are involved in a real estate loan transaction, as a borrower, real estate agent, attorney or some other party, and you have to ask yourself or someone else “Is that loan fraud?” 95% of the time the answer is “yes.”
In most cases when I am asked about whether or not something is loan fraud the conversation usually goes something like this: (more…)