I receive a phone call from a past client. She informs me that she is looking to buy a property, and that she is very excited (as she should be). She goes on to declare that she wants to work with me and my team (GREAT!), and that she is looking in San Diego.(not my territory)

Because it is very important to work with a Buyers agent that is familiar with and knowledgeable with the local community I go into my referral scripts. After having this conversation with her, and going through the benefits of working through a referral it hit me. Referrals really are a win-win-win for all parties, and so much so in today's market that any hesitant buyer should hire their agent through a third party referral.  

I know that I'm out on a limb when I say this, but you should not hire an agent unless you either 1. have a previous established successful relationship with that agent or 2. you are referred to that agent. Even if you've seen the agent working around your area and you think they're qualified; you are better off going to a professional third party (even if out of the area) and have them refer you to that agent. I know it may sound crazy, but I honestly believe that this becomes a win-win-win situation for all parties.

By allowing a third-party professional to recommend you to a professional who knows your area, that they trust, and are willing to put their reputation on the line for will benefit everyone involved in the transaction.

First, the sole benefit that the referring agent receives is a referral fee upon the close of the transaction. This seems to be an industry standard of 25-30% of the representing agents commission. Now you might be asking yourself, "that's great they make some money, but why would I want them involved in the transaction?".

You'll want the third party professional involved because it will give you increased accountability and security throughout the transaction. Because a referral is a business-to-business partnership, referrals from other professionals tend to get better treatment and attention than even their own clients. Why would they give you this increased attention, you might ask? Because they want to keep that business relationship alive and well. They know that a referral is the highest compliment that you can pay a professional. So they’ll want to be sure to live up to this high standard of peer-to-peer expectation.

Second, it benefits the client by allowing the third party professional access to get updates on your transaction's progress and partake in the problem solving process should a challenge arise. This is very important because if for some reason the client feels uncertain, or is not 100% sure that the advice they’re receiving is the absolute best possible they have a third party organization that they can call on. Because they referred you over and they not only have a financial interest vested in the successful close of your transaction which gives them the right to ask for an update. Their reputation is on the line because they referred you to this agent if the client is not getting the best service possible the referring agent takes it personally and will follow-up.

Since the representing agent will gladly give the up-dates and the planned next steps on what’s going on to keep the business relationship alive and well. The third party professional can evaluate the decision making process, and even partake in the brain-storming sessions to help overcome any challenges that may arise. This is absolutely great for the client because it means that at all times they have access to a professional third party to hold the representing agent accountable, honest and the client can take comfort that the best possible decisions are being made on their behalf.

So by going through a third party referral the client benefits by having accountability of their agent from a third party, increased quality service, and peace of mind that the decisions being made are sound and to their benefit. The referring agent gets money for holding them accountable, so now you're left thinking "what could possibly be the benefit to the representing agent  that they could possibly want to give up 25-30% of their commission?" And I'm glad you asked... :)

The representing agent also wins in the referral situation. There is a ton of negative statements going around about the real estate industry, and we all know that clients are getting advice from a lot of people who are not in the industry, nor privy to reliable information other than the panic reported by the news media. This creates an environment of unease in a buyers minds. If an agent comes along and tells a client that they have found a great buy for them, but they'll have to move fast because it wont last. Well, that is contradictory to what the media is saying, and probably what their family is saying so it makes them uneasy. Never mind the fact that it may be true. (See it takes a loss to get them off the fence)

Now if that same client does what a majority of buyers are doing now days, they'll turn to the internet to get their answers. As many of us know there are some agents out there that will tell a client anything they want to hear to get the deal. Unfortunately that reputation tends to precedes even the best professional agents. With that said there is something to be desired about knowing that your clients have a professional to turn to and ask questions without loosing their client.

I've had many phone calls from people who found me through my Active Rain blog, who are uneasy with their current agents progress. Now I'm not one to second guess another professionals work (especially with the contract still signed), but I always ask "Have you spoken to your agent about this?"

A resounding majority of them say they have not even tried to talk to their agent about it before seeking outside help!

As a Psychology major it makes sense to me that people want to avoid confrontation, and if they've attributed a simple miss-communication as being miss-representation; it is no wonder they're not in a hurry to make contact with that agent. The benefit of having another professional resource that is not competing with you (after-all they already referred it to you) that your clients can turn to for advice, assurance, and accountability. Having this referral support system in place truly makes this a win-win-win deal.

If you're looking to buy, sell or relocate we have professionals with integrity nationwide that we would be happy to put our reputation on the line for; while holding them accountable to our high quality assurance standards.

Click Here If you are looking to purchase or sell your home, but you have been on the fence because of what you are hearing from the media or from your family, coworkers, or friends. We would be happy to be your accountability partner through this exciting time.

If you are an agent that is already working with a client and you believe you could benefit from having an outside professional that your client could confide in, we would be happy to assist you and your client. Click Here to Contact Us! *Referral fee is negotiable depending on how far along in the process you are.

If you know someone who is relocating to the East San Gabriel Valley or the Inland Empire, we would love to service your client and have you as our accountability partner for the transaction.

Seth Miller | West Covina Real Estate Consultant

Associate Brokers Keller Williams West Covina

info@teamchacon.com

www.TeamChacon.com

Contact Team Chacon of Keller Williams Realty. Licensed REALTORs® in California to list your property for sale or to purchase a property in Alhambra, Anaheim, Arcadia, Azusa, Baldwin Park, Brea, Chino, Chino Hills, Claremont, Covina, Diamond Bar, Duarte, El Monte, Fullerton, Glendora, Hacienda Heights, La Habra, La Puente, La Verne, Monrovia, Montclair, Monterey Park, Ontario, Pasadena, Placentia, Pomona, Rosemead, Rowland Heights, San Dimas, San Gabriel, San Marino, Santa Fe Springs, Sierra Madre, South El Monte, South Pasadena, Temple City, Upland, Walnut, West Covina, Whittier. We Are Always Accepting Referrals!

What more could you ask for in a single afternoon? The West Covina Sunrise Rotary group will be hosting their 5th Annual "A Day at the Theatre" December 14th 2008. I've got my tickets already do you have yours?

Below is the flyer for this great event, and if you click on it you will be taken to the official Rotary Press release for this event. Which includes the contact info for the event Chair person who you can contact for more information about this event, to purchase tickets for this event, or to make a charitable donation to this event. Thank you for reading and I hope you can support this great cause.

Short sales in Los Angeles County and Short sales in San Bernardino County

If you have looked at anything to do with the Los Angeles County Real Estate Market or San Bernardino Real Estate market you have probably heard of short sales in Los Angeles County California and short sales in San Bernardino County.

With a multitude of medians for communicating information available now days I seem to see a lot of misleading information in the media. My intent is to try and give those interested in buying or selling a short sale a better understanding to the following questions: Who participates in a short sale, What a short sale, How long does a short sale take, and When can I participate in a short sale. I do not believe anyone should ever take the advice from one source in such decisions. I highly recommend that you cross-reference the general scenarios I am providing you with your attorney and your CPA to see if it makes sense with your specific situation. The following is also non-comprehensive, and there will be follow-up posts that will go into further depth and understanding of each section. When completed they will be cross-referenced here.

I can also tell you that patience will be the key to success for anyone interested in participating in a short sale in Los Angeles or San Bernardino County California. The short sale process is going to take time to complete the transaction. This statement is true for both the buyer and seller of a short sale.

WHAT IS A SHORT SALE?

Three things make up a short sale:

1. The current owner owes more than the current market value of the property.
2. The Lender agrees to forgive a portion of the loan to align itself with the market value of that particular property.
3. It is a pre-foreclosure activity.

I want to STRESS the issue and idea of patience required to buy or sell a short sale in Los Angeles County and to buy or sell a short sale in San Bernardino County California.

Team Chacon has had a short sale in West Covina California that was approved in one month, and we’ve had some short sales in West Covina California that have taken over 4 months just to make direct contact with the correct person for that lender.

Dealing with a short sale is not a simple task. Banks and lenders were not, and some still are not, set up to handle the sheer magnitude of the requests for short sales that they are receiving. I think we may be beating a dead horse in regards to the general difficulty associated with selling your home as a short sale, but let us now take a moment to look at some specific issues that may make getting your short sale approved more difficult than normal.

Common challenges related to getting a short sale in Los Angeles County or San Bernardino County approved.

Private Mortgage Insurance (PMI)

If you purchased PMI on your loan then the mortgage insurance company will also have to approve the short sale. In this kind instance the mortgage insurance company will be paying the lender the difference in the loss (difference between the net sales price and what you currently owe on the loan). This means the mortgage insurance company will want the property in question to sell for as much as possible, and may hold you the seller liable to pay back some of the difference.

Multiple mortgages or investors

In many instances you will find that the company you are sending your monthly payment to sold your note to a secondary investor, usually before you even made your first payment. In these cases the secondary investors must also approve and sign off on the short sale (part of the long time line process).

If you took out a second mortgage on your house with a different lender than your original mortgage this will complicate the process of getting your short sale approved. The second note holder usually holds out for a fiduciary representation in exchange for accepting the short sale. The first note holder may, but is not obligated to, offer a settlement amount to the second note holder. Inevitably you will need to get the approval of both lenders to successfully close the short sale process with a clean title in tact to give to the buyer.

In some instances the second note holder has accepted the sale provided that the seller agrees to owe a note to them and pay a fee to help mitigate the loss.

Why would a lender want to do a short sale in the San Gabriel Valley in the first place?

The Primary reason a lender would approve a short sale is to mitigate their loss on the transaction. The process of foreclosure is not a cheap endeavor, and if the market price is still falling it is in the lenders best interest to sell as soon as practicable. If the lender feels it is in the best interest of their bottom line to accept a short sale then they will.

I am neither an attorney nor a CPA, and this post is not intended to be or to provide legal advice of any kind. I insist that you talk with your attorney and your tax accountant to determine if a short sale is the best solution for you.

Click here to search Available West Covina Homes.

">PS- If you are planning on listing your home as a short sale in Los Angeles County California or you are planning on listing your home as a short sale in San Bernardino County California make sure you hire an agent who knows how to properly handle short sales and has the experience to get the job done. We are doing successful short sales. Contact us to find out more.

Team Chacon | West Covina Real Estate Consultants

Associate Brokers Keller Williams West Covina

info@teamchacon.com

www.TeamChacon.com

West Covina Blue Star Program

The City of West Covina honors its sons and daughters serving in the armed forces

Before every West Covina City Council meeting a slide show of immediate family members of West Covina citizens and citizens of West Covina currently serving in the armed forces are honored. Their name and a photo (if available) are placed on a screen while the lights are dimmed to give the community a time to reflect, remember and support our local citizens who are fighting for America's freedom.

You too can support and encourage America's troops serving our freedom overseas by going the Defend America government web site. This government ran site allows citizens of America to write troops currently serving to thank them for their continued service. Give our troops the support they deserve.

West Covina Relay for Life 2008

Team Chacon of Keller Williams Realty supports this great event and you should too!

Saturday, May 17 to Sunday, 18, 2008
9 a.m. to 9 a.m. (24 Hours!)
Edgewood Middle School
1625 W. Durness St.
West Covina, CA

Form your own relay team and walk/run for 24-hours to help create a better, healthier tomorrow. Take on this heroic challenge and be the unsung hero in someones life tomorrow today.

The contact person for the West Covina Relay for Life 2008 is Shruti Kothari and you may either call her at (626) 756-5041 or e-mail Shruti to get more information about this great event at Shruti.Kothari@cancer.org. Give support to those currently battling cancer while raising money to hopefully find a cure and prevent or eliminat cancer for a better future.