John MacArthur

Pick any one of these doors. Go through neighborhood after neighborhood in your own hometown. Knock on the door. In over 90% of your visits, you will be greeted by a resident. If you turn around and look over your shoulder, there won't be a sign out front advertising the home for rent and/or sale. This is not a dream, this is a fact. Oh, and yes, the calender does indicate it is late February in 2009.

The amount of people that are still paying their mortgage or their rent on time far exceeds those that can not do so. It is also important to note, those that can not do so include a very, very minute group that chooses not to do so.

The housing crisis is real.

The solution to the problem is being worked on. Do not let the headlines hide the fact that most people that bought a home are paying for that home...on time. Most people that have rented property are paying their rent on time. If you were to believe the press and the political pundits and the elected officials, you would think that a depression, dust bowl, boarded up towns situation was right around the corner.

If home ownership were compared to the human body, the current problem would be nothing more than a cut on the finger. Everything else may feel fine but that finger seems to control you. A tiny paper cut reaches out and creates a sharp pain that rivals the loss of a limb. In the grand scheme of things, it is just a tiny cut on the finger.

Possibilities ?

• the cut could become infected, and if not treated could become something far more serious.
• you could "bump" the finger and the resultant pain might cause you to lose focus.
• you could spend all your time focusing on the finger and neglect other important things.
• you might be convinced that there has never been a cut finger like yours and lose focus on history.
• you might run around showing everyone your cut finger and they would never see your healthy parts.

This is a picture of a full crowd at FedEx Field, located just outside Washington, D.C. . The stadium has a capacity to hold over 80,000 people. Now, if everyone in this picture was invited because they owned a home in the D.C. area or because they rented a home in the D.C. area, until everyone of those seats were full, it would look like this.

And I want YOU !

That's right, I am the new MANAGER of the Olney, MD Office of Long and Foster Real Estate, Inc.. Guess what? I want to sit down and talk with any agent that is looking to make a positive change in their career. My door is open and I would welcome the opportunity to share my vision and passion for your future.

Some may ask...Are you crazy?

If believing in the talent and abilities of agents in my office is crazy......yep, guilty. If believing that this market may be different than any other market but is a great time to be a real estate agent.....yep, I am guilty on that count. If believing that given the proper support and tools, any agent can succeed (even in this market)..........well yes, I am guilty.

I am not crazy.............I believe in YOU

Now, I understand, some of you are working for companies that offer 85% or 95% splits. I understand that you pay a desk fee and that allows you to keep what you perceive to be a large portion of commissions earned. I also know that the Long & Foster Real Estate, Inc. business model does very well when compared to those firms.

For example......let's say you work for a hypothetical firm named ReMacs. (no relation to Jmac).

Let's say that over the course of this year you close enough business to gross $100,000. Now over there at ReMacs, you get to keep 95% or $95,000. Now that is not a bad year for anyone. If you were working at Long & Foster and had a 75% split, you would only garner $75,000. O.K., just work with me here, I know lots of agents that would be thrilled with either outcome. I only use the $100,000 because the math is easy.

At ReMacs, you have that little item called a desk fee. You pay it every month or maybe you work under a creative plan which allows you to just set it aside until you make a sale. Pay'em now or pay'em later, you have to pay them at some point. In many plans, you have to pay anywhere from $150 to $200 per month. (You've heard this one on those late night commercials).......but wait...........there's more.

I forgot to mention that the reason you are at 95% is because of the 5% money designated for ReMacs International. (I understand, it is worth that 5% to keep those referrals from all over the world rolling in)

Sooooooooooooooooooooo, it seems that $95,000 has shrunk to about anywhere from $77,000 to $71,000. YIKES !!!!!! Oh, I forgot to mention...that phone on your desk...well you have to pay little something something for that and that person up front playing solitaire while waiting for the phones to ring...they are on your dime........and um, we have little incidental cost for supplies, etc.

It depends on the office and the broker and the franchiser. Prices are subject to change based on profit and loss statements. There is no such thing as a free lunch.

I know that these setups are nice for some and not suited for others. In this day and age when franchises are folding and lots of folks are facing a declining market and shutting down, I would want to see that my independent broker has sufficient cash reserves to cover the cost of doing business before I kept hanging my hat on their hat rack. One of the perks of being an independent contractor is that you are free to protect yourself and make decisions based on your personal bottom line.

Now, back to my corner of the world. You earned your $75,000. I don't care how it came in. I don't care if you only deal is on New Years Eve. I will keep the doors open. I will make sure someone is answering the phones. I will make sure you have a phone. I will make sure you have access to the internet. I will provide you with as many black and white copies as you need. I will give you a free website. I will give you a free blog site. I will give you access to a free social networking site. I will give you a free contact management system. I will answer the phone when you call. I will make sure that you have access to title attorneys that will answer your questions. I will gladly pick up the phone and defend you to the hilt if another broker/agent is trying to steamroll you in a deal. If the agent does not make money.........nobody makes any money. Did I mention that Long & Foster Real Estate, Inc. is one of the top ranked private firms in America. We don't close and lock doors, we merge offices to be in a better position to react to this market. I am very proud and humbled that I have been chosen to manage their Olney office.

I will work for you and with you to put you in a place where you can realize your dreams.

It is 2009. Rumors of a terrible market are greatly overstated. People still need to buy and sell homes. If you are struggling....maybe it is time for a change. If you just can't keep paying those desk fees hoping that something will happen............maybe it is time for a change. I you want to work with a manager that understands this industry works from the agent up and not management down..................

Give me a call. 301-537-4377

My name is John MacArthur ( somefolks know me as JMac)

Long and Foster Real Estate, Inc.

3402 Olandwood Court

Olney, MD 20832

Don't doubt your ability......Believe......Yes, You Can!

So, sometimes, you just have to shake your head and offer to walk away. It may sound stupid. It may seem short sighted. I suppose I am sick and tired of the "inside" games that continue to be played.

I represent a buyer. He is working with a lender that offered him a $10,000 grant. He applied for a loan and was approved. I took him out and we visited many properties. During the course of our time together, he shared that a year ago, he had written an offer and it was going to be submitted. A co-worked asked about his financing at that time. He shared that he had a great deal. His real estate agent had recommended a lender that was offering him a wonderful loan. He would only have a 3% interest rate for the first few years and then it might go up depending on the market.

His friend pointed him in the direction of another lender and he was shocked to discover what he was almost under contract to do. He walked away from the offer. He walked away from the agent. He walked away from buying and joined the hundreds of thousands of potential buyers....on the fence.

So, here he is with me. He has an FHA loan approval. He has a grant. He has a ratified contract.

Then, today, the news comes in. The federal home loan bank or some other entity had put a hold on distributing the grant money. I don't know the details. I am a Realtor and not a lender. I just know the $10.000 went poof. My client spoke with the lender. The lender suggested that maybe we could renegotiate the ratified contract and increase the sales price by $5,000 and ask for a $5,000 seller credit.

What to do?

I sent my buyer the following letter.

I spoke with XMXX. He shared his thoughts with me. He understands that this is a terrible blow to you. He asked if the seller might raise the price to $155,000 and then offer you a credit of $5.000.

They might.

I don't want to go down that road. I am not comfortable juggling sales prices to accommodate the bottom line. It may seem like a harmless maneuver which will allow you to roll some of your closing costs into your loan. It also means that you are paying more for the property than it is worth.

They have accepted $149,900. I do not believe it is sound advice to suggest you might finance $5,000 over 30 years. I do not believe in the shell game that was in use in the past. You offered a price and they accepted it.

You have suffered a set back regarding the grant. It was unforeseen. It is a discomfort now. It requires that you revisit your goals and financial situation.

I have prepared your offer so that you can still walk away without any consequence based on the review of the condo documents which we should receive this week. The review contingency allows you the right to rescind your offer.

If the grant setback puts you in a position in which you do now wish to proceed, I will understand.

If you want to pursue purchasing the property by offering more and receiving a credit back, I will be glad to recommend another agent that could handle that for you.

It would require you to prepare another offer for the $155,000 with $5,000 back as a credit. It would be considered a back up offer. I would then prepare a release for your first offer and step away from the transaction.

I can not guarantee that if you release them from the offer, they will accept your back up offer. They may have a back up offer for more than the $149,900 stipulated in your contract. If you wish to proceed with the contract, I will work with you.

Please understand that I am not indicating that the process of offering more than the property is worth and receiving credit back is illegal. I really don't know. I do know it is done, prior to ratification, often. I am only sharing that I do not believe it is ethical.

I think it exists in the shades of grey.

Operating in the shades of grey is not the way I do business. You hired me to guide you and protect you and advise you.

I am doing that job.

John

So tell me folks..........how do you play in this sandbox?

An associate of mine wrote a blog about seller funded down payment assistance programs. It is his belief that they may hold the key to jump starting the market and resolving the mortgage crisis.

I don't happen to think so.

Down payment assistance programs require money from the seller. Today, the sellers with a problem don't have the cash available to put into the transaction. I thought I should share my reply.

Jeff.............maybe I missed something in your presentation. You are extolling the virtues of "seller funded down payment assistance programs". You are linking this with the foreclosure problem.

Hmmmm.......so you think that banks that have lost money and now have a non-performing asset will set aside additional funds to help people buy the homes? You are talking about people/companies that already are up against more walls than any room should have. You believe that in addition to the 6% that is allowed in some cases..........they will fund borrowers that are by definition "without sufficient funds".

I don't think so. I would hope we have learned the folly of selling property to people that don't have dime invested in the deal.

If they pass such a law, it will have no impact on the short sales. The seller in those cases can not even pay the mortgage. You think people in a short sale position will have funds available to put into a seller assisted down payment program?

What seller, involved in this upside down, negative equity market has the funds to partake in the program? I have represented buyers that have used Nehimiah and I have represented sellers that have participated.

The buyers really could not afford a toaster, but they went to the class and could use the program. The sellers were all in a positive equity situation and were glad to take a small hit to sell the home.

It is a bitter pill to swallow.

You mention the $7,500 or $15,000 dollar tax credit. You say that it would take the average person a long time to save up the money necessary for a down payment. You also mention the much ballyhooed average savings balance of $1,300 dollars. That is quite a general number that does not focus on potential home buyers. The bigger problem with the tax credit is that it only covers homes purchased in 2009. For most, saving up is not an option unless the amount saved can cover the 3% needed by FHA approved loans. Of course, this is an apple and we were discussing the DPA orange. Let's not confuse the two.

My experience with foreclosures and short sales has been that banks will approve buyer credit to cover closing costs. Banks will usually list through an agent and not attempt to violate tort laws by reducing commissions. They sell property "as-is, where-is" and will not make any repairs or warranties.

On the short sale side, there is no consistency. Prices listed are just a best guess as to what might be accepted. Banks are still using agents to do BPO's and they are as accurate as the agent can make them. Here again there is no standard procedure and determinations are as varied as the agents presenting them.

Mortgage companies also have this strange belief that they can violate tort laws and alter compensation. Some where an attorney general will enter this fray and point out that there is a significant difference between actually being a party to a contract and approving an offer.

The only real solution to our housing crisis will be found in resolving the negative equity problems that exists. This problem will have to ferret out those that have a first trust, a second trust and a HELOC (Home Equity Line of Credit). The first and second will have to be dealt with. The HELOC will have to moved to an unsecured debt that will remain with the homeowner and probably should be removed from bankruptcy protection.

As for the first and second trusts, I will readily admit, I don't know the solution. I do know, it will not be solved with smoke and mirrors.

As for the TARP, to this point funds have only been used to keep the system afloat. There is little if any accounting for what has been spent and little if any of the outstanding debt has been resolved.

So you are hoping to buy a home.

If you are a first time home buyer, I have 10,001 reasons why you might want to give me a call.

Your first question should be about the $10,000 Grant that we have access to for our clients.

Look closely, there are no strings attached to that offer. It is not a tax credit. If you qualify for any tax credit, you can still take advantage of that. It is a GRANT! There are a few qualifying questions. If you can meet the criteria, the money is yours.

Now that is 10,000 reasons why you might want to put me on your short list.

I know that those 10,000 reasons may sound too good to be true. I have a list of satisfied home owners that were in your situation as recently as Thanksgiving. Phone calls are inexpensive. Don't throw away free money.

Oh, the other reason you may want to put me on the top of your short list.

I represent buyers.

• I understand your need for education about the process.
• I listen.
• I work with you.
• I work with your schedule.
• I become your advocate, advisor, teacher and guide.

You want to buy a home and you have wisely decided to find a real estate agent to help you.

I want to be your Realtor.

This short note is our application for the job. It seems that most buyers begin their search for a new home on line. I am sure you have spent a lot of time looking at homes on your computer. The information is just enough to grab your attention. It is offered for the general public. My clients deserve and receive more information.

You need and deserve individual attention!

I know you have lots of questions. I can provide you with the answers. I promise to work with you every step of the way from the beginning of your search until you receive the keys to your new home at settlement.

My name is John MacArthur and I am the founder of The MacArthur Group. I have lived in this area all of my life. I know commuter routes and I know neighborhoods. I can filter the information and present you with a clear picture of the possibilities that will meet your specific personal needs.

No buyer that I have ever represented has had to go into their own pocket to pay for my services.

I have a system in place in which our compensation comes from the seller of the home. I work for what is offered - no more. I also make sure that every one of my homebuying clients is covered by a home warranty! I will show you every listing that meets your specific criteria. I will search the MLS as well as homes that are for sale by owner. In short, once you have a clear picture of what you can afford and where you would like to live, I will find a home for you.

I will then negotiate for you to make sure that you make that purchase in the most favorable position. I will continue to be available for you after you move in your new home. You may be a client for the transaction, but you are a relationship for life.

If you would like, you can visit my website and search the available listings there. You don't have to enter any information to search. If you choose to have me follow up, you have that option. Go to my site and look around at TheMacArthurGroup.com If you would prefer to email , I can be reached at macarthurgroup@gmail.com After a brief communication you will learn what I mean by

Every Step Of The Way.

You see I get it and I make every effort to put the "Real" in Real Estate for you!