Colleen Lang Woodward

To All Buyers and Sellers Out There Wanting to Negotiate for Their Best Interests:

Negotiating From Whichever Side You Are on Really Needs to be Approached in the Same Way. If You Have Ever Played Poker, Well Then this Metaphor Will Really Speak to You....Don't Show Your Cards!

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Number ONE:

DO NOT show you cards (aka: motivations): This is probably the number one problem with doing FSBO. The buyer asks point blank, "why are you moving?" and the seller usually answers. No, no, no, you do not show your cards like that when you are playing a game. Motivation determines everything in real estate because time is money. As soon as the buyer or seller catches a whiff of your time-frame OR need to move, well the jig is up. That information can be manipulated for the other party to exploit the position of their counterpart.

Number TWO:

Be objective and do not show urgency: Even if you are in love with a house OR you are in desperate need to sell it, let them know that there are still buyers and sellers out there who are equally capable to like the home, so if you want the best price, stay objective, know what your bottom lines are and if they are realistic, then stay relaxed about it, blase even, that you like the house/buyer BUT there are others...Get it?

(I don't care if you do a dance while your in it thanking the Gods for sending you this buyer OR for sending you this house of your dreams) when you are presenting to the buyer OR seller, it ain't that special. You like it, you want it, but if you can't get it for a fair price, you can always find another house/ person...

Caveat: If they do walk, you can always re-approach them and bring them back to the negotiating table with a new set of cards that you are willing to play : ) Play your best hand first. If it doesn't pan out, then pull out the reserves. Hey, at least you tried and will sleep better knowing you did.

Number THREE:

Let them think you are money stretched, as in 'stretched thin':

If you are the seller, well don't let them know you have oodles of equity you are just waiting to get your hands on. You have plans for every dollar, so even if aren't hard pressed for money, every dollar counts to you and let the buyer know every dollar they are asking off is a dollar less in your pocket. Don't get caught up in the negotiations of thousands... Let them know the dollars count to you.

If you are the buyer, NEVER, EVER provide a pre-approval letter that says you qualify for more than what you are offering. I know this sounds silly to some agents reading this, but yes I will bug the lender if we write five offers to make me a pre-approval for the offer we write... This is a psychological war we play. Think if you show a letter saying you can get $250k and you write an offer for $190k, see my point? This lets the seller that you are offering to, know you are a good buyer with funds at the ready, but you really can't move much on that price : )

Number FOUR:

You attract more bees with honey, so talk kindly even if you are telling them to go shove it: Working well with the agent AND client on the other side is so incredibly important. Even if at one point you walk away and tell them to go to hell...Best if done with tact, respect, and kindness so that if you do on a whim decide to come back to that person, you did not burn that bridge.

People want to work with people they like and I will work harder for an agent/ seller/ buyer if I like them. If they have been an A-hole, well I will not be doing them any favors. That is just life. We are ALL humans that want respect, love, and caring. Show that you appreciate where they are coming from...And do appreciate it...But then stick to your interests. This may actually cause a little break in their front to let you in and like you. I share personal tidbits about my clients (if they allow) and I make everything personal so the buyer/seller on the other side will understand where they are coming from. We are in a one on one business. These are people's beloved homes, appeal to their good nature. Be personal and you may get the upper-hand.

Number FIVE:

Every detail does count, so act like you care about every little thing (while keeping it all in perspective in reality): This mainly applies to all the little annoying stuff that comes along with the house purchase, the appliances, the repairs shown on the home inspection...I know some agents don't bother with this little annoying stuff, but its what deciphers a decent or even good agent from a GREAT one!

All these little things, even if my client is really okay with them, let's say taking the refrigerator even though it was in the contract, trust me, when I go to the other party, I am personally upset that they would be trying to underhand the contract, but out of the kindness of our heart, we will concede the refrigerator (if my clients really don't care about it) in exchange for something they do care about.

The details are what make me good. Fighting for my clients takes more time, energy, and care...But it makes them happy and I know I am doing my best for them and WE ALL sleep better at night. The little things count in getting the best deal overall! So stomp your foot, even if you don't care about that, act like you do and get something out of it. This is not acting even, you should care about the details and if you don't, I will do it for you as your agent. That's what you hire me for!

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Quite Simply: Hide Your Cards and Play Them Well and You Will Take Home the Pot and Win in This Wild World of Negotiating Real Estate!

Contact me anytime with your real estate questions or needs:

www.ColleenWoodward.com

402.571.5887

"Selling Real Estate for the Cure & with Heart"

REMAX The Producers

I DO NOT feel sorry for the banks that are finding themselves in a situation where they are taking short sales (as in eating the difference between what they lend-ed to the seller and now that the property cannot sell for that, they lose some money).

It is so incredibly common, my last two listing appointments in the last week were both done where the buyers HAD equity at one time, but then they went and took out a "Home Equity Line of Credit" to pay off debt and the DARN appraisers, ya know, the bank approved appraisers, are the ones who say what the homes potential market value would be...And I always gasp and I mean gasp, at the price the appraisers say the home could go for. I mean in what stratosphere did they think a home that is not even 1000 square feet in an old, not highly coveted area could go for the amount they appraised this sellers home at???

Now this poor seller, who was clearly not money savvy when they are taking out a loan to pay off another loan (red flag bank, help them get back on track) is sadly, painfully upside down on their house. And then I have to come in and tell them they were screwed by their bank...Except I could never say that...After all, they were the ones that accepted and used the money/ loan, so they would feel I was secretly blaming them.

I come from the mind though that you cannot blame the people. We, as the people, can simply not know it all. People specialize: doctors, lawyers, teachers, because we simply cannot as humans know everything we need to know about every subject. That is why we trust, hire, and use professionals. Appraisers. Mortgage Lenders. Financial Advisers. Banks. It is their profession and we take their word that they are doing the best for us and helping us find the best product for our needs, but even more importantly, our best interests if our said needs are not good for us. A person may need $20,000 to pay off bad debt, but if their house can't be sold for that amount, then that is not their equity. The banks are taking high appraisals from their "approved appraisers" to get the go ahead to put more bricks of debt on this unsuspecting person.

I am telling you. People have no idea what the market value of their home is. Why should they? It is not their job to watch and know the market. It is why we have a profession. I spend all day analyzing the market and working up reports on it, reading, writing, talking about it. It is a full time job. Homeowners ALWAYS think its worth way more than what a true buyer would buy it for. But the banks, they should know better. Be conservative. Do right by their client and only lend them what they are absolutely positive they could sell their home for and that is their true "equity"...But on top of that, they have to account for all the fees and costs associated with closing and selling a home, so they shouldn't lend them the full amount of their equity because please, please help these people keep a little cushion to be able to sell their home comfortably. Hardly anybody has "equity" anymore, even after owning the home for 10 years.

You cannot tap equity twice. If you take out a home equity loan, a second mortgage, refinance to draw out cash, your equity is gone. And that alone is one thing that is hard for some to wrap their head around. You already used your equity, so they come to me and are shocked, appalled, and broken that they don't have equity. How are they going to pay for an agent? How are they going to sell it when all the buyers practically work with agents and now they can't afford one?

It all comes down to not thinking ahead, not being financially savvy, and they listened/ trusted their professionals that helped them take on all that debt. Surely they wouldn't lend it to them if they couldn't afford it? And that is the ultimate mental breakdown. Nobody could believe that someone would lend them money that they didn't think they could not pay back. It would be stupid. It would be bad business. Ah, and yet that is exactly what happened and unfortunately is still happening, even after all this...Can you believe it??? I CAN'T, which is why I hope this enrages you, sickens you, makes you take action in your own life, in your community, with your votes. Something has to be done here and the leak has not been fixed. We are still hemorrhaging. Banks are still overstating equity that people are still taking out. When is it going to stop?

Just another real estate rant by your vigilant, citizen who wants us to improve this world...Oh, and who also happens to be a real estate agent : ) in the Omaha Metro. If you would like to use my services... I am kind, considerate, and work my buns off to help you through this real estate cycle. I'd be happy to help.

www.ColleenWoodward.com

RE/MAX The Producers

"Selling Real Estate for the Cure and with Heart"

It is shocking...APPALLING, how insanely slow the short sale process is. I just had buyers write up a stellar offer, one that honestly, I didn't really even condone because they wrote it for more than the home sold for in 2008 (of course they were asking for thousands in closing costs, but still)...They were going against another offer, really wanted the house, so chose to write a pretty amazing offer...

Let's take a step back and explain what a "short sale" is: The seller owes more on the home than the home can be sold for due to market conditions, so they ask the bank to eat the difference because the seller is broke. This definitely will ding the seller's credit for future credit needs, but everyone gets out with the least cost

We waited 3 weeks with absolutely no word. I obviously know how this process works and that most people can wait as long as 3 months to even hear a single thing on where their offer stands, which naturally I always let the buyer know about this little caveat. Short sales are great in theory, to avoid the dreaded foreclosure, but very few buyers have the patience to wait that long, in limbo, about where they are moving, whether they should be planning on it...It's just not easy on a person to withstand. (Are you listening bank executives, the process has a serious, fatal flaw!)

For any buyer I am first taking out, I always explain short sales to them so they can decide if we should even bother looking at them. Most of the time, the buyers opt out because of the time issue. Short sales do offer the allure of being (usually) a great deal, so there is some incentive there...But time is money, and if the deal isn't going to go through, the buyer doesn't want to lose out on the opportunity that another "great deal" of a home is passing them by. Days, weeks, and months of waiting usually breaks the person. There are some really great deals in homes that aren't short sales, which is exactly what my buyer found, rescinded their offer, and now will get the exact same home for less, without the hassle. I feel better for my clients. They are happier all around.

This particular mortgage was held by Citibank. I am always shocked over and over that the banks have not streamlined this process to allow for a timely transaction. I can understand giving them a week, even two, but months is really too long. For as many times Citibank or any bank has to go through this, you would have thought they would have figured out a better system! The issue of short sales has been exacerbated by the recession and crash, but there are always short sales in any market, so this is not some new ballgame they are trying to figure out.

It is best for everyone, the bank, the seller, the buyer to buy the home through a short sale rather than foreclosure...So come on bankers, let's figure out a way we can allow a buyer to buy, a seller to sell, and the bank to cut their losses, where everyone wins.

Short sales in my opinion are far better for the bank because...

They usually sell the home for more. The seller is still living in it, taking care of it, so the cost alone of the home still being in good shape is paramount. Anyone that has been around for a while has seen one too many foreclosures that have their pipes burst from not being "winterized" in a timely manner from when the property is vacated, here in Nebraska where we have very harsh, drastic changes in weather...

Mold then flourishes, smells, damaged interiors all result...If the water penetrates the foundation then we have a structural issue. And oh the smell of mold... Its a smell imprinted on my brain. They all smell the same, those foreclosures. I get the great joy of being reminded of its true potency every time a happy, jolly, naive buyers takes a peek through a foreclosed home and shudders as they step through the entrance.

Short sales are such a great idea to cut the banks losses, retain some dignity of the property, give the buyer a good deal, relieve the seller from the burden of their home...Except the process is fatally flawed to allow for a smooth transaction. What is taking the banks so long to figure out that their system needs revamping???

Just another rant on real estate provided by your local Omaha stellar, amazing, beautiful, hilarious, confident, top notch, real estate agent.. (no stop, now I'm blushing...oh wait, I'm writing it ; )

Colleen Lang Woodward

REMAX The Producers

www.ColleenWoodward.com

Oh inspectors, you are so delightfully thorough! I don't think buyers or sellers know what to expect when it comes to the home inspection. Sellers should be nervous and buyers need to keep the inspection into perspective.

The inspector has every obligation to the buyer to note every possible thing about the home and its property, down to the handle that jiggles funny, the light bulb that's out, the window that squeaks when it opens, and every settling crack found on the concrete. I love that inspectors do this because buyers only spend about an hour maybe two in the home before they own it. That is not very much time at all when you think of this being the home you live in. Inspectors go in and do all of it for you. Even in a small home, the inspector I use spends a good three hours in the home. There is a lot to find out.

Sellers should be worried because yep, he's going to find every little thing you have lived with and not thought about as being an "issue" and he is going to find probably a lot of things you don't even know about because after all when was the last time you climbed in your attic with a flashlight or walked your roof looking for concerns or looked to see how clean your A/C or heating unit is?! The inspector will find it, otherwise he isn't doing his job AND he is held liable (as in: can be sued for not finding and disclosing it) for disclosing everything big and small to the buyer.

I was writing up an addendum to a home inspection that needed a radon mitigation system, which runs about $1000 bucks and a new fuse panel along with grounding all the outlets for 3 prong wiring in the home...This is an example of some pricey repairs. The buyer asked, " Do most people ask for repairs like this," and after thinking on this, I said yes. Even if the repairs in general are nothing and the worst the inspector could find was that the A/C needed cleaned, well that is the worst repair to the buyer, so the buyer wants it fixed, so it all becomes a matter of perspective. Major things should be asked for because the thing to ALWAYS keep in mind is that as soon as something is found in the inspection it becomes the seller's legal obligation to disclose it to EVERYONE so if they are going to have to fix it anyway, might as well fix it for you! And the buyer has to realize if they don't ask for it to be fixed and it needs it, that liability is now in their hands once they own the home and will have to deal with it when they go to sell it.

Buyers need to realize that the inspector HAS TO mark everything down that is even the slightest of concern, but do they really need to ask for the light bulb to be replaced and the handle that jiggles to be tightened with a screw before they move in? I suppose it depends on the buyer, but every home, even new construction will have their issues and most of what the inspector is there for is not these nit-picky things, but the meat. Inspections are meant to be for major defects, these are the things that matter and affect the purchase of the home. A light bulb being out or a screw being loose are not going to make one home more valuable than another. I consider a major defect to be one that does affect the value and demand for a home. A home that has radon would scare people off, thus affecting the value of the home by limiting its pool of buyer's further.

For both buyers and sellers, I would say to take a deep breath and really consider what is found in the inspection. The inspector will note everything, so do not be pulled in by all the red ink that notes a crack as a "falling hazard". REMEMBER: They have to be sure they note every hazard possible because of the liability of their work, not because any normal person believes that it's a "falling hazard", it's kind of silly the things they have to note. So weed through and be sure to focus in on the true hazards, don't get sidelined and confused by things that don't.

Sellers: If it's a major defect, might as well fix it because once you have seen the documentation that something is an issue, you have to put it in your seller disclosure for the next buyer and trust me, buyer's do not want to see anything that is a problem before they even buy a place, it makes them think that less obvious things lurk beneath. They get a little jittery and scared of what else you may be hiding and not fixing. Fix it and move on.

Selling Homes in the Omaha Area Metro: Good Ole Nebraska Pride

www.ColleenWoodward.com

REMAX The Producers: Top Agents

Everyone in this market wants that wonderful proverbial "good deal"... I think in this market most people don't realize the pricing of some of the homes are already at "good deal" pricing...But in general, I couldn't agree more. I want to get my buyer's a good price in EVERY market, but especially this one.

Building a home is never going to be a "good deal". Buying a spec home can definitely be discounted and priced well, so don't be confused with buying new construction in general...But if you build, you pay sticker price, and you should because the home is being built to your unique taste. If you like pink tile. It's going in. If the builder were building it for a speculative buyer, they would make specific, neutral choices that appeal to the masses, so if they end up stuck back with your tailored home, they may not be able sell it easily. You pay for a home to be tailor made...

And don't be fooled by the builder giving you money off one thing, to make you feel like your getting a deal because it can be smoke and mirrored back on to something else. I get a little chuckle when people say the builder gave them a smoking deal on "such and such"...Landscape, let's say...Building is never going to come close to what you can get on an existing home. Existing homes also come with those awesome extras like landscape, blinds, appliances, curtains, sprinkler systems, play yards, sheds, security systems that are $10-20k in extras that can't be resold with that inflated price.

In this market, if you want a DEAL then get shopping in the current housing market, not building. We have too much inventory as is, so the cost are pressed down and this is good news for the buyer.

If you'd like help finding that perfect home. Visit: www.ColleenWoodward.com

REMAX The Producers

Omaha Area Real Estate