Caught! April 28, 2008
A most wonderful diet to sustain escrow during crunch time. I heard rumors of a secret stash, but this is too much. I won’t name names.
Sphere: Related ContentSpring Projects: sprucing up that old cracked walkway or patio? April 21, 2008
Note: there other things more interesting to me than escrow/real estate issues, so hope this topic does not tread on other contributors expertise.
It is Spring (believe it or not) and the Everett Home Show just wrapped up over the weekend. This is the time of year where home improvement projects start to come to the forefront. One of the larger projects last Spring was to remove our 30+ year old drab, cracked walkway and driveway apron in front of the garage. We obtained bids to install either a stone/paver walkway (Hardscape) or new poured concrete. For our budget, time constraints, and do-it-yourself experience, we ended up going with a stamped concrete walkway.
I rented a jackhammer and broke up the entire walkway and driveway apron. It was tough work. We liked the stamped concrete patterns that we observed visiting new home developments, home shows and doing research online. After sifting through all the information, we took quite a while to make a decision on the color and blend we envisioned. It is nerve-racking because if we were unhappy with the patterns and color after the concrete pour, we were going to have to live with it.
A significant amount of prep work had to take place because there is a lot of water run-off from the road adjacent to our home and the topography slopes towards the house. You can also see remnants of the perimeter drainage system I installed and connected to an existing drain system.
Project cost: about $6,000.00 including my expense in removing the old walkway & driveway apron myself. Drain system and retaining walls (Stacked Wall supplied by Pacific Stone Company in Everett) were a separate expense, but we did do it ourselves.
Hope this project provides inspiration and ideas for people thinking about their outside projects!
This year’s Spring (I hope) project entails a new asphalt driveway from the street to the apron & walkway. I’ve also been informed that I need to remodel the guest bathroom. One project at a time.
Sphere: Related ContentPredictions: helpful or counterproductive? April 20, 2008
The dialogue between commenters has been interesting to read on Ardell’s most recent post about predictions.
Is this a helpful or counterproductive prediction?
“So, don’t be swayed by media reports of a ‘disastrous housing economy.’ Take the long-term view and be confident that your home will continue to appreciate in value. And know that if you buy a home today, in seven years it will be worth a lot more.”
- Geoff Wood, CEO Windermere Real Estate
(Quote taken from the Spring Quarter 2008 of ‘Inhabit,’ The best of the Pacific Northwest magazine) Published by the Seattle Times.
I don’t necessarily disagree with Geoff’s sentiment and I understand his overall point within the larger context of the quote**—I just took the last paragraph quote from his ad titled “Gaining Perspective on the Real Estate Market”. Seven years is a long time. But this is one heck of a prediction, no bones about it.
**his use of a “Casino” and “gambling” analogy was terribly ironic, intended or not.
I have no idea if this was solely a local ad or if they ran it or a similar one in other markets Windermere has offices as well.
Agents are resources in so many aspects for their clients. Consumers turn to them for valuable feedback, for information, data, suggestions AND ADVICE, which includes feedback on where the real estate market is trending. In so many ways, they are advocates whom consumers want to trust, but for a variety of reasons find it difficult. Building and gaining trust does not begin with “I don’t know where the market is heading, beats me.”
You have to give Geoff Wood credit. At least you know where he stands.
Sphere: Related ContentRCG Intermission to bring you …… April 18, 2008
…..2″ of snow and rising in Snohomish County. Ummm, isn’t it April 18th, 2008, not mid February? Stevens Pass ski area closed a wee bit too early! If you can make it to our place, the hot chocolate is brewing, the fireplace is on and the kids are heading out to play and we have NO last minute escrow signings tonight! Yeah!
Chrome and Teak are thinking….”you have got to be kidding us!”
Sphere: Related ContentSalvaging a dead transaction: when a client refuses to sign. April 10, 2008
Never underestimate the power of a cup of coffee
A few months ago I met with a client at their home in the Woodinville area. After introducing ourselves to each other we sat down at the kitchen table and started going over paperwork and loan documents. The gentleman slowly started to go over the loan documents in a methodical manner which is not unusual. Prior to each signing appoinment one of the very first things I mention to our client is that I’m not in a rush and they can take all the time they need. I indicate that there are a few important documents they need to pay particular attention to while the other bulk of the loan package is a series of disclosures, much of which is boilerplate and typical of most lender loan packages.
Probably 15 minutes into the signing it was evident that the demeanor of the client was changing. Not only was the scrutiny of the documents going slowly but question after question started to flow, one after the other. The client decided to stop the appointment and make a phone call to his loan officer. After a brief discussion, the client hung up the phone and informed me that the transaction would be on hold.
Naturally, your mind starts to spin a bit and I sensed that the gentleman wanted to digest the information more carefully, perhaps without the pressure of anyone being present. I informed the client that it was not a problem and I would be in touch to schedule another time to mutually get together and sign the documents.
We’ve been in each other’s company for about an hour by this time and I told him to “not worry about the transaction, at least I met another new friend!” At this point the gentleman offered me a cup of coffee. Hmm. That sounded really good and was my invitation to build trust. We sat down at the table over the coffee. I’ve never had a better brewed latte—this guy really knew what he was doing. Silky smooth and wonderful. We started to discuss absolutely everything: his house, our families, kids, the real estate market, interest rates, etc….
The gentleman was from Turkey and it was another lesson in assisting clients from other cultures and the way in which you build trust. The rest is history. Three and a half hours later I had a happy client, happy customers (loan officer/agent), and signed documents in my hand ready for a funding package to be completed and overnighted to the lender.
Sphere: Related ContentNeed cash flow? Don’t be afraid of unpopular sales and… April 9, 2008
……..selling uncoventional listings otherwise known in the real estate world as “Mobile Homes.”
You think to yourself…pshttt. Yeah, you laugh. You say, “whatever. That’s not going to make me a listing star or a top producer!”
Guess again. You may find this hard to believe, but one of the top two producing agents (in both sales and commissions paid out of our escrow office, I believe two years running) who uses our office to close mobile homes, comes in to collect commission checks darn near every week. Sometimes more than once a week. Sometimes, three a week. This unassuming agent is in our office so often we nearly gave ‘em a desk and phone. (ok, not quite).
It is not unusual for the agent to stop in with two transactions on Wednesday and say, “let’s close these by Friday.” Sounds good to us.
Don’t discount this lucrative market. The sales are closed as fast as the parties can make it to our office to sign their paperwork. Two thousand dollars here, three thousand dollars there…it all adds up to well into the six figures in earned commissions. For crying out loud, wouldn’t you like a transaction that can close just about as fast as popcorn pops in the Microwave!
Sphere: Related ContentPurchase Implosion: Pre-approval letters worth the ink? March 30, 2008
Nearly everyone has had a personal experience of a deal falling through via the other side of the transaction not performing. It is hard to swallow when you have no control over the other party or their financing efforts. Especially bad, the call to your client who is in boxes and ready to move within hours. It takes guts to make the call and is character building.
The dreaded phone call: “….hate to bring you bad news, but our transaction has fallen through, and ….”
Chew on this scenario:
A transaction is stopped in its tracks just hours before it is slated to close. Seller has already signed closing paperwork and escrow is waiting for lender documents to have borrower sign and then proceed to close the transaction as scheduled. Escrow is then notified that the deal is apparently dead. Why? Escrow is informed by the agents that buyer’s financing fell through. Buyer’s financing addendum gives the borrower x amount of days to obtain financing, which was written to expire the day of closing. As is tradition, the selling agent provided a pre-approval letter (not pre-qualification) at the time of the offer.
In a sentence in paragraph #2 of the Financing Addendum Contingency (NWMLS Form 22A) it states:
“A letter from the lender generated or dated at or prior to mutual acceptance shall not constitute a letter of loan commitment which complies with this paragraph.”
1) Should the listing agent and seller fight for the earnest money?
2) What do you find would be some of the transaction management pitfalls that could have been avoided?
3) Is the buyer fully in compliance or did they fall short of a duty to act in a timely manner. Time is of the essence.
Buyer’s question at signing March 26, 2008
A recent buyer asked us at signing (a day or two prior to closing):
“I’ve noticed that the fees charged by my loan officer are about $1,600 more than my Good Faith Estimate. I recall only being charged 1% loan origination. Is there any explanation for this?”
What are the re-disclosure laws (both state and/or Federal)? Obviously, this buyer was a bit under pressure and did not want to create waves to delay the purchase.
Sphere: Related ContentDoes it matter who you list with, who you close with or who your loan officer is? March 8, 2008
Being in the escrow business is really fascinating. You see lots of things. You hear lots of things. You get to observe what is efficient and what slows down transactions.
Escrow can be confusing too. We really serve two masters: those that are our clients (the principals such as the seller or buyer or borrower) and those that are our customers: agents and loan officers who suggest and refer work to us or any other service provider. It’s also something to experience such a large transaction “quality control” chasm between different agents working for different brokerages even within a major brokerage franchise network.
But this post really is about how agents and consumers decide what you decide.
1) For example, an interesting thing occured. In the mail, I received a post card from Greg Perry of John L Scott marketing a home not far from my place. It’s not strange that I receive things in the mail from Realtors, but that the owner of the home is a broker from another company—why did they hire another agent to list the house? I know this owner because our kids play together and we’ve closed transactions for him. It is a fascinating move.
2) We have had several transactions with repeat clients who have used a different service provider (agent or loan officer) the second or third time around. Why are they doing this?
3) In escrow we work in high collaboration with just about every title company. Obviously, we do not have primary contact with the sales staff (title reps) but rather the attorneys, title officers and back office staff that are largely the engine under the title insurance hood.
One of the things that I have always wondered and one question that my wife actually raised while we discussed business matters is the following: how do agents choose one title company over another since the perception of agents in the market is that title insurance companies (heck, even escrow firms) all do the same thing and the end result of issuing a title policy or a closed transaction is the same result? In other words, agents have a tendency to say they receive good service, but what is that service they receive? Agents have very little if no contact with the title company other than the with the title rep. How are the title companies differentiating themselves especially when many are using just another name plate but are in fact a subsidiary of a large national title company.
Consumers have no idea how to differentiate Pacific Northwest Title (First American) from First American Title. Or, comparing Land America Title from Commonwealth or Rainier Title (Land America companies). It is kind of like comparing the Nissan Quest with the Mercury Villager. Both are virtually the same vehicle. Consumers rely upon their agent to differentiate for them. How do the agents differentiate between service providers for their customer?
4) Along those same lines, competition is cut-throat between service providers such as escrow and title, especially in a market where sales volumes are significantly lower than over the past four years. Agents are very fierce in fighting for their respetive loan officer or title or escrow company if involved in a sale. Tradition has it’s place, but what is the compelling proposition of one service provider or closing agent over another?
5) What is more important to an agent when suggesting a loan officer: closing the transaction, lowest rates and fees for their customer or client, or a combination? For example, one of the loan officers we work with does average volume but gives phenominal service to the client, loan docs are usually ready days in advance and nothing has ever not closed due to a problem created by this LO. On the other hand, we work with LO’s that due boat loads of loans and there are the occasional problems with service to their clients or other issues.
Sphere: Related ContentLife in escrow: When we compete with American Idol. March 4, 2008
There is only so much escrow can do when escrow receives loan docs at 5pm and the borrower must sign because an interest rate lock is about to expire and the rescission period puts their back against the wall, forcing them to sign the very same day (evening). Then the borrower (s), strangely unaware of the urgency, indicates:
1. Can you come to our house between 7:00-7:30 because American Idol is on at 8pm (like tonight, cough-cough) and we can’t miss it. Or, how about after the program is over?
or,
2. I drop Billy off at Basketball at 6:30 and pick him up at 7:30, so I won’t be home until 8:15 pm. Will 8:30 pm work for you? Oh, my spouse needs to sign as well? He does not get off his shift until midnight. Is that a problem?
Will these transactions close on time? If you do what Ardell suggests in Step #2, it is a sure thing..
I’m beginning to muster up the courage to ask management for new business hours: M-F 8-5pm; quick hour break for a run to Panda Express, sprint any last minute disbursed loan Payoff’s to the UPS terminal blocks from our office to make it on an airplane to wherever, do banking before the bank closes at 6pm; hustle back to the office, quickly re-check e-mail for more “last minute” loan docs promised days earlier, and then re-open from 6pm until midnight for signings from Bellingham to Olympia to Ephrata. Sat. and Sun. leave wide open for signings too.
Sphere: Related Contentolder posts »
I guess they day is not...