Wayne Warshawsky ABR,IRES,CDPE,SFR Your Texas Realtor

It seems to be happening much too often. I get the call and I can tell they are upset with something. The seller is furious and wants to know who left the door open, broke the mini blinds and turned up the heat in the house? Well maybe not all three all the time, but there seems to always be one of those that apply. This weekend it was all three and I only had one showing that day so it was obvious who it was.

Let’s start at the beginning with one of my pet peeves, showing instructions that waste precious time and oxygen. Centralized Showing Service is who 95% of agents in our area use to set up showings. On their web site or on the phone you can leave instructions that are helpful for the agent showing your property. For instance if the key box is attached to a bush in the front yard or a pit bull named Fluffy is in the master bedroom this information is very helpful to have. These things and others are essential to showing the home and keeping from being scared out of our wits when fluffy sees someone entering his room. What is annoying and repetitive is this instruction. “Lock all doors, turn off all lights and do not adjust the thermostat “. “Do not let the cat out” is up there as well but I can understand this one since some people don’t know that cats can be escape artists.

Does it seem like common sense not to leave the doors open or unlocked when you leave from showing a home? Does anyone think that in the 10 minutes you show my listing turning the thermostats to 80 will actually make it more comfortable?

We are entrusted as Realtors with going into complete strangers homes. This is a huge responsibility and one that we shouldn’t take lightly. As of right now I refuse to leave showing instructions with CSS that insult the intelligence of 99% of Realtors. If my telling you to make sure all doors are locked is key to you remembering, than you have many more issues. Resist the temptation to adjust the thermostat and if you just can’t help yourself then turn it back down when you leave! If you break some blinds tell me! No one would be that upset. Things happen but they are much worse when they are left for a seller to find. Last of all, admit it when you are caught.

I admit I sent the email last night when I was a bit angry. Remember that only one showing happened that day and she was it. I thanked her for showing but informed her that things were not left as they should have been. (I did not mention the broken blinds) I asked her to please do a better job if she showed any of my other listings in the future. The response I received in all caps claimed that she had not been the guilty person and I will never have to worry about her ever showing another one of my listings again. I guess that solves that problem… for now.

I have worked with many investors and first time buyers through the years that make their home purchases with cash. Cash transactions can be easier but is it the best way to purchase real estate?

Benefits of a cash transaction.

1. You can buy anything no matter how bad the condition is. Many lenders will not lend on a home with foundation problems, roof issues or missing appliances and carpet. With cash the homes that are severely discounted because of condition are open to you. Some sellers will not entertain anything but cash offers. Financing with homes in this condition fails too often to even try.

2. You can buy homes that don’t appraise for the contract price. Often land or potential commercial property will not appraise for the perceived worth. Maybe you are buying a home on a busy street that can be converted to a commercial property. The value as a home might be minimal but change the zoning and you have something worth much more.

3. You can close quickly! For many sellers how fast you can close is important. Cash transactions can close in a few days.

4. No Lender Fees! You can save quite a bit of money by not getting a loan. Typically financing costs around 3% of the amount financed.

Ok so let’s get real… how many of you have cash to pay for a home? For those of you who do let’s talk about the negatives and myths about using cash.

1. I can offer less and the seller will accept because its cash. I get offers all the time that make this assumption. Truth is that many sellers will accept $1.00 more for a qualified financed buyer. This is especially true when there are no issues in the home that would prevent financing to happen. What is true is that if the offers are the same cash would probably win. But the advantage is NOT as big as some cash buyers think.

2. Using cash might not make smart financial sense. Money is cheap! The last time I checked rates they were close to 3.8%! It just doesn’t make sense not to borrow at these incredibly low rates on mortgages. Many lender fees are deductable on your taxes and using other people’s money just makes sense.

There is no better time to be buying real estate whether its cash or financed. Use the advantages of cash to find a great home at a great price. Keep in mind that a loan is Cash for the seller at closing and many sellers just want to sell for the most money.

Here are some great deals available to veterans this week. This is not an exhaustive list so be sure and carry that DD214 with you this week to take advantage of deals that you could run into around the Collin County area.

Applebee’s – free meal, Friday, Nov. 11: Applebee’s is offering a free meal to military veterans and active-duty service members on Veteran’s Day, Friday, Nov. 11, 2011. There will be 7 entrées to choose from. Military ID or proof of service required. Find locations at http://applebees.com/.

Chili’s – free meal, Friday, Nov. 11. Chili’s is offering all military veterans past and present their choice of one of 6 meals. This offer is available during business hours on November 11, 2011 at participating Chili’s in the U.S. only. Dine-in from limited menu only; beverages and gratuity not included. Veterans and active duty military simply show proof of military service. Visit their website to find locations: http://www.chilis.com/EN/Pages/home.aspx.

Golden Corral – Free meal, Monday Nov. 14: The 10th annual Golden Corral Military Appreciation dinner will be held on Monday, November 14, 2011 from 5 p.m. to 9 p.m. in all Golden Corral Restaurants nationwide. The free “thank you” dinner is available to any person who has ever served in the United States Military. If you are a veteran, retired, currently serving, in the National Guard or Reserves, you are invited to participate in Golden Corral’s Military Appreciation Monday dinner. For more information visit http://www.goldencorral.com/military/.

Hooters – Free Meal, Friday, Nov. 11. Hooter’s is serving up a free meal to military veterans all day on Veterans Day. Offer good for all veterans and active duty military personnel. Choose one of the new specialty items on the Hooter’s menu. Offer valid at participating Hooters only; open to all active duty and military veterans with valid military ID or proof of military service. Drink purchase required. For more information, visit www.HootersVeteransDay.com.

Krispy Kreme – Free doughnut. Available only at participating Krispy Kreme stores. Offer available to all active-duty, retirees & veterans on Friday, November 11th. Be sure to call ahead to verify your local Krispy Kreme is participating.

McCormick & Schmick’s Seafood Restaurants – free lunch or dinner, Sunday Nov 13, 2011: McCormick & Schmick’s is celebrating their 13th annual Veteran’s Appreciation Event on Sunday, November 13th. Veterans will be able to choose a complimentary lunch or dinner entrée. Veterans must provide proof of military service. Be sure to contact your local McCormick & Schmick’s as this is valid at participating restaurants only. Also, Space is limited and reservations are highly recommended. For more information visit: http://www.mccormickandschmicks.com/featured-promotion/veterans-appreciation-event.aspx.

Outback Steakhouse – A week of Free Bloomin’ Onions and Cokes Monday Nov. 7 – Friday Nov. 11. Outback Steakhouse is honoring America’s military veterans by offering active duty military and veterans a free Bloomin’ Onion and a Coca-Cola product during the week leading up to Veteran’s Day. This offer is available to Military Personnel who have one of the following forms of identifications: U.S Uniform Services Identification Card, U.S Uniform Services Retired Identification Card, Current Leave and Earnings Statement (LES), DD form 214 Veterans Organization Card (i.e., American Legion and VFW), Photograph in Uniform, Wearing Uniform. For more information, visit, http://outback.com/companyinfo/veteransday.aspx.

Subway – Free Six Inch Sub. Select Subway locations offer a FREE six inch sub to military veterans on Veteran’s Day. However, Subway restaurants are franchises, so this offer may not be available everywhere. Please call ahead.

Texas Roadhouse – free meal, Friday, Nov. 11. Some Texas Roadhouse locations offering a free meal from opening until 4 p.m. on Veterans Day. Other locations may vary in offer, hours, or availability. Call ahead to your local restaurant for more information.

T.G.I. Friday’s – Buy one get one free Nov 11-14. At participating locations for anyone with an old or current military ID. November 11-14.

Uno Chicago Grill, Friday, Nov. 11. Uno’s is offering a free entree or individual pizza with a purchase of an entree or pizza of equal or greater value. Offer good for all military for veterans and active duty military. ID or proof of service required: Show up in uniform (if your service permits), provide military ID, show a picture of yourself in uniform, or have other ID showing proof of service.

Home Depot: The Home Depot is offering all active duty personnel, reservists, retired military, veterans and their families a 10 percent discount off their purchases in honor of Veteran’s Day. The offer is valid on purchases of up to $2,000 for a maximum of $200 and is available at The Home Depot stores, The Home Depot Design Center locations, Yardbirds and EXPO Design Center locations. The 10% discount is available everyday for active duty and retirees, but not all veterans. Home Depot makes this offer available to all veterans on most military holidays.

Lowes: Lowe’s Companies, Inc. will offer all active, reserve, honorably discharged, retired military personnel and their immediate family members a 10

percent discount on in-store U.S. purchases made during the Veterans Day holiday. The discount is available Nov. 7 – Nov. 11. The discount is available on in-stock and special order purchases up to $5,000. To qualify, individuals must present a valid military ID or other proof of service. Excluded from the discount are sales via Lowes.com, previous sales, and purchases of services or gift cards. Lowes offers this discount daily to active duty military members, but not to veterans. However, they extend the offer to military veterans on military holidays.

Fee Free Day at National Parks. To honor America’s service men and women, Secretary of the Interior Ken Salazar announced that areas managed by the National Park Service would not charge entrance fees for Veteran’s Day weekend – November 11-13, 2011. Over 100 national Parks will be participating in this event.

Bed and Breakfast for Vets. In the third year of the program, B&Bs for Vets has organized over 485 (and counting) participating Bed and Breakfasts and Inns across the US and Canada which will be offering veterans a free night’s stay on November 10th, the night before Veterans Day. This offer is available to both active duty military members and veterans with ID, but space is limited. Each Inn and B&B has at least one room available for this promotion and reservations must be made directly through the participating Inns and B&Bs. For more information visit http://www.betterwaytostay.com/current-promotions/bbs-for-vets/.

Free Hugo® Canes for Veterans. Sam’s Club locations nationwide will distribute 36,000 Hugo canes free of charge on November 9th, 10th, 11th, 2011 to U.S. military veterans in need of mobility assistance. Limited quantities available, while supplies last. Sam’s Club Membership is not required, but proof of military service may be required. For more information, visit www.HugoSalutes.com.

Check out all our Collin County retailers for deals not listed here.

It is depressing to think that for the last 30 years we have used has used the same space shuttles in NASA. Original onboard computers were state of the art 286 processors and the onboard flight instruments were analog like you would find in a 70s airplane. These systems are now upgraded with faster computer systems and flat screen display panels for the instruments like you would find in a modern airplane. I know many of the systems have been upgraded and the oil has been changed meticulously but even with all that maintenance the basic systems are the same. Being a child of the Star Trek generation I would think that we would have something better by now. Maybe my expectations are too high. I think it is just a bit sad that we don't have something ready to go or at least getting built now to replace these old birds. Seems we will be relying on the Russian old style rockets to get into space for the foreseeable future.

As you probably know it is a short trip from talking about space travel to real estate. Though you might think they are unrelated I have news for you. Many aspects of NASA are being employed every day by Realtors. As some of you can remember, fax machines have been around since the mid 1970s. Many improvements have been made to this technology but its time has come and gone. It is always sad when I have a Realtor that wants to fax me an offer or fax me some information on a listing. It makes me wonder how they survive in our market without being able to scan and email documents. In order to accommodate these agents I have set up a number that converts the fax to a digital PDF file and I receive it on my email wherever I am. Unfortunately the quality of the copy is limited to the other agent's outdated technology.

Another major advancement that has been made in the last 10 years is the advent of digital signatures. Credit goes to President Clinton for signing this into law in 1998. The use of digital signatures has been very slow to be adopted into use by Realtors. To be fair, most banks selling homes (foreclosures) do not accept digital signatures so it is not accepted by all sellers. For most transactions though this is the new way to make legally binding contracts. In an age of out of state buyers and the accessibility of email this is the new way to do business.

I use www.docusign.com. All I need to do is upload paperwork to the web site and place initials and signatures where they need to go. My client will get an email requesting them to review the documents and click to sign where needed. This does not replace sitting down to make an offer with someone who needs that time explaining the contract. There is something magical about meeting at the office or over coffee with a pen and paper and I will not deny that. But for those of us who buy and sell often it can be done easily and quickly. It never fails that many negotiations get handled late in the evening and using this technology we can eliminate the need for faxing and driving all over creation to get things finished.

One last area where technology has left behind many Realtors is the availability of online marketing. Clients used to be satisfied with putting a sign in the yard, taking a few pictures and hoping for the best but that time is over. While I still get the old school customer who tells me that all they need is the local agent who knows people in the area most people now know better. 95% or homebuyers look online first. If find that only 50% of the people I work with buying in our area are moving from here. Our Collin County area is expanding from out of state buyers and people relocating to our area. These buyers are scanning Realtor.com, remax.com and other sites before they actually start the process of visiting homes. It is Essential that Realtors have as many pictures as possible and a virtual tour attached to every listing. Pictures and virtual tours are what will get your home looked at online. My virtual tours are also auto populated to virtually every real estate website. Here is a list of my current inventory http://www.visualtour.com/inventory.asp?U=154808

I hope I am around to see our next great adventure in space travel. As I write this blog I am watching the final liftoff off space shuttle Atlantis. I hope that we advance and get back to innovation and discovery. Real estate should not be the only thing that has moved forward

Wayne Warshawsky RE/MAX Four Corners 214-718-3096

Broker Associate www.365incollincounty.com

I ask the question because this is something you need to know. In Texas, unlike many other states, real estate agents are filling out contracts for clients to purchase or sell real estate. For many of you who have purchased a home outside of Texas you remember having your own attorney in addition to your agent. In many states the agent's job is to show you the home and once you find a home and want to make an offer you sit down with an attorney who puts that offer on paper and presents the offer to the seller's attorney. Most residential real estate is not sold that way in Texas.

Real estate agents in Texas have been given contracts and forms to be used that are created by the Texas Real Estate Commission. These forms were developed by teams of attorneys and are the only forms that Texas real estate agents are allowed to use. These forms and contracts get updated periodically to reflect changes in law or to better clarify intent. Contract promulgated by TREC are the only forms that real estate agents in Texas are allowed to use in the purchase and sale of real property. The contract is fill in the blank and if anything is not covered in it than there is usually an addendum that was created to address it.

Why is this important?

Real estate agents are prohibited to practice law. When a TREC Texas Real Estate Commission contract is modified, items are crossed out or verbiage is added an agent can be accused of practicing law.

There are several reasons why agents modify contracts.

1. They don't know that there is an addendum for what they wish to do.

There is a special provisions part of the purchase contract that is used for many incorrect purposes. Instead of finding the appropriate form agents write in their intentions here.

2. They don't understand the contract.

I cannot count the times I receive a contract where the agent either didn't know that the contract already said what they wrote in the special provisions section. Many of these agents do not understand the contract verbiage or feel the need to dumb it down so that they are sure it is understood.

3. They think repetition will help.

I have called agents who use this tactic and asked "why did you write on the contract that the house must appraise for contract price when you included a finance addendum that says the same thing?" Their answer is usually "just to make sure"

4. Willful practice of law.

This is not as rare as you might think. Most agents know that they can lose their license if they get caught doing this. Unfortunately agents don't get turned in for this until something blows up and real damage is done to a client. That is the time where contracts are examined and blame is placed.

The Texas Real Estate Commission establishes clear guidelines on what can and can not be done in regards to our promulgated forms. http://www.trec.state.tx.us/pdf/rules/trecrules.pdf see page 85

Why does this matter to you?

I would love to think that this matters to everyone but honestly as a consumer this is probably not one of the criteria you use to pick a Realtor. It is important that your Realtor has experience with contracts and can explain to you the meaning behind the forms. Whether you are a potential buyer or seller having an experienced Realtor is essential to a successful transaction.

Having negotiated several hundred real estate contracts in North Texas I would love to help you navigate successfully through the process. Call me today to get started. There is no better time.

Wayne Warshawsky Broker Associate RE/MAX Four Corners 214-718-3096

www.365thingsincollincounty.com