Positive Real Estate Professionals

Before I even get into this article, let me state this fact; this article is not meant to offend anyone based on religious views, instead, it is meant to point out the obvious: Replacing Home Inspections with a Spiritual Cleansing is not smart.

Last night I was able to lay back and watch some of the programs that I had TIVOed. One of the programs that I like to check in on is My First Place. The show held my attention like they usually do (I watch them until I fall asleep). However, last night’s viewing through me for a loop. After the you gentleman decided what house he wanted to buy, he decided to go with a Spiritual Cleansing of the property instead of the normal home inspection.

Now, I try to remain as open minded as the next person, but there are places where I have to draw the line. While I might not want to live with the ghost of Elvis Presley, I most certainly do not want to buy a home that has a decaying roof on it. While it might be fun to have Marilyn Monroe or Princess Diana running through the halls, having termites in those same halls would not be the ideal situation, but I digress.

In closing, having your home cleansed of bad spirits or ghosts is a great thing. With that said, buying a property without first having a qualified home inspector such as William Troutman, David Lelak, James Brantley, or David Boyd is just asking for trouble.

So many times I hear people mention that Home Inspections are only good when you are purchasing a home. This cannot be further from the truth. To shed some light on this subject, I decided to turn to the professionals that live the life of home inspectors. In a couple of instances, I just turned to the wives of the home inspectors. With that said, let me introduce you to the team of home inspectors on our real estate network.

First off, we have David and Bonnie Lelak of IHI Home Inspections out of the North Metro Atlanta area. Next, there is William and Sherri Troutman of Certainty Home Inspections out of Salem, Indiana. We also have Dave Boyd of Powder Valley Inspections out of Powder Valley, Oregon. Our most recent Home Inspector is James Brantley of Magnolia Home Inspections out of Brandon, Mississippi. Now that you have met our team of Home Inspectors from different parts of the country, let’s turn back to the subject at hand, home inspections.

When preparing to write this article, I decide to reach out to each of our inspectors and ask for their input on home inspections. I asked them for reasons why anyone would have home inspections done. But before I get into what they said, I want to interject my own thoughts here. Prior to ever putting a home on the market to sell, I think it would be a wise investment to have it checked out by a professional. In doing this, you can be aware of any major issues that might arise and tackle them head on before putting your home on the market. Other reasons that you might want a home inspection done is to search for Radon or Mold. Both of these issues can be harmful to you and early detection could be a huge difference to your well being.

When I asked Bonnie about some of the reasons that people in North Metro Atlanta order inspections through IHI Home Inspections, she opened up.

When you get a home inspection done, this is a great way to have your own professional punch list of the things that need to be done to help maintain the value of your home.  As new home owners, especially first time new home owners, figuring out where to start with the maintenance on your home can be overwhelming, so whether you’re a seasoned home owner or a new home owner a maintenance home inspection can provide you with a road map to successful home maintenance.

Have you experienced hail damage and had a roofing contractor repair or replace your roof, our suggestion before you ever release final payment is to get a second opinion on the quality of work from a professional home inspector.  Too many times we have been called by home owners to come do a roof inspection and the quality of work is less than satisfactory.  Make sure you have someone on your side.

Radon is another instance where you would want a home inspector to come out, especially when you’re not selling your home.  The question is not “if my home has radon’” every home has radon, what matters is if your home has elevated amounts of radon gas.  The way to find out is to have a radon test performed.

Sherri Troutman of Certainty Home Inspections added:

The majority of the time home inspections are for the home buyer, however home inspections can be ordered for many reasons.  A homebuyer may decide they would like a pre-listing inspection on their home prior to  putting it  on the market.  A pre-listing inspection will tell a home owner many things, such as, what condition the major components are in, such as the furnace and air conditioner unit.  They will have the choice to fix the minor problems that may be found in the home like GFCI’s defaults and leaky faucets or drains.  By getting a pre-listing inspection this allows the home owner the opportunity to fix the repairs that are needed, giving them the right to select their asking price accordingly based on the true condition of their property.  Having a pre-listing inspection done usually lets the home owner get top dollar out of their home.  Home warranties are another type of inspection that can be performed.   Home warranties are inspections done on the home towards the end of their home warranty, prior to it expiring.  This lets the home owner know of any defects that may have occurred over the last year with their home and allows them to turn them into their home builder so they can be fixed before the home warranty runs out.  A home warranty inspection should be done with a one year home warranty in approximately the tenth month of owning the home.  Lenders in Indiana also order home inspections for government loan programs.  The Indiana Housing Community Development Association uses their own forms for the inspector to fill out.  They ask several questions about the home such as the number of bedrooms, baths, and other areas of the home.  Their main concern is that the home is safe, sound and secure.  Having an IHCDA inspection done is in no way to the extent of  a complete home inspection.  A complete home inspection report goes into much more depth on the condition of the home and its components.  The USDA offers a loan program that also has its own form to fill out by the inspector.  The USDA, like the IHCDA, wants to make sure the home you’re buying is safe, sound and secure but fails to report with the thoroughness of a complete home inspection.  They ask such questions like is there 5 years of life left in the roof and is there running water with no plumbing leaks,  what size is the electric panel box and is there room in the crawl space to make repairs to the home if needed. Other reasons for inspections may include the concern for mold in the home.  If your having allergy like symptoms, headaches, or congestion problems, it could be due to mold in your home.  Mold is a plant that grows in conditions where moisture is present.  By eliminating the moisture problem, you help to eliminate the mold problem.  Radon gas is yet another concern with any home but is more likely with a basement home.  Radon is a radioactive,  colorless, odorless gas that as uranium decays in the ground it puts off  this lazy gas.  It is the second leading cause of cancer in the United States.  All homes should be tested for radon gas but especially basement homes because they are more susceptible due to the fact that  they set closer to the bedrock.    As you can see, there are many different reasons why everyone should have a home inspection done but the most important one is to make sure that the home your living in is safe for you and your family, structural sound for your family to live in for many years to come and secure from any hazards that are present at the time of inspection.

Dave Boyd of Powder Valley Inspections added:

I have performed home inspections for folks who have lived in their home for many years (decades) and are heading into retirement.  To avoid any surprises when living on limited financial resources, they order an inspection for a home tuneup before taking the retirement “plunge”.  Also, after natural disasters such as earth quakes or severe wind storms you would want to get an inspection to ascertain the condition of your home.  And, finally, there is always the gratifying wisdom of a second opinion after having had a contractor perform remodels or constructing additions to the home. This is a very economical way to make sure the work was performed according to current standards, given the alternatives.

James Brantley of Magnolia Home Inspections out of Brandon, Mississippi finished us off by adding:

We all know that buying a home is one of the largest investments we will make in our life time. Buying a home provides us with a sense of achievement and brings great joy to the family. During the home buying process there are so many decisions to be made such as finding a reputable real estate agent, calculating budgets, getting loan approvals, and picking out furniture just to name a few. However, choosing the right home inspection firm could possibly be the most important decision you’ll ever make. Often times, home buyers will simply pull the name of an inspection firm right out of a hat and place all their trust in that firm alone while doing little home work. Professional home inspection firms should be able to provide you with prior client testimonies and references.

Once the inspection is completed and the report is delivered, you the client, should feel well educated about the current condition of the home. Good home inspectors always take the necessary time to show you unique aspects of the home as well as basic home maintenance tips. Do a little home work and choose the right home inspection firm to help educate you and protect your families investment.

I know that I have laid out a lot of information here, but I think it is important to understand the purposes behind home inspections and how they can protect you and your investment. If you are in any of the areas that these 4 home inspectors operate in, then I highly recommend that you contact them for your next home inspection. If you own a home, there is no need to wait till you are ready to sell. Today is a great day to get your home inspected.

For those of you that do not know, my days and evenings are spent marketing Positive Real Estate Professionals. I love what I do and I do it well. I get to talk to all different types of people on a daily basis. Some are bright and cheerful and some are all about doom and gloom. Having them all over the spectrum is what makes my job so fun. With that said, the most common thing that I hear daily is “I have not done any business since ‘Fill In The Blank’ .” My question in response to their statement is simple; “What have you do to generate business?” The answers that I receive are just as all over the spectrum as the people that I deal with. It is this particular question that I want to break down and look at in today’s article.

Let’s first start off by stating the first rule of Karma; “You get out it what you put into it”. Or, if you prefer, “You reap what you sow”. There is not much more of a simpler way to state it. I was talking to Sandy Noll today and I was reminded of something that she told me a long time ago. “When I blog, my phone rings. When I do not blog, it does not ring.” Personally, I would have to agree with this statement. On top of that, it links right back to the first rule of Karma. With that said, I guess the question is do you practice the first rule of Karma? If the answer is anything other than a resounding “Yes” then that is the first thing that you need to correct. If the answer is “Yes” and you are not gaining business from what you are doing, then you might need to look at what you are doing.

When Positive Real Estate Professionals launched back in March of 2009, it was part of our strategy to help our members maximize their marketing potential on the internet by integrating social media into the network. We have accomplished this and continue to expand the tools daily to get more and more results from what we do. Our systems are built with the busy Real Estate professionals in mind. We were not wanting to create more and more work for them to do. We wanted to add a product that would actually cut down the need to do so much to still obtain the same or greater benefits. The reason that I bring this up is because many people think that the internet is not the way to go. Less than 20% of the Real Estate industry professionals are actually active on the internet in one form or another.

With that said, I have to ask why? In the same breath I can answer that question in stating that people are scared to move out of their comfort zone or they are scared of change. Several years ago, I had to read the book Who Moved My Cheese. In the book, there were 4 characters. For those of you that have read the book, you know that there was Sniff and Scurry (the mice), and Hem and Haw (the little men that were the size of mice). You also know that one never adapts at all. The reason that I bring this up is a statement that Sandy Noll also pointed out to me today. “Did you know that 87% of all first time home buyers begin and end their home search on the internet?” she asked. I knew the number was high, I just did not know it was that high.

So, if it is that high, then how are you being found. If less than 20% of Real Estate professionals are utilizing the internet to gain the 87% of the first time buyers, what is the other 80%+ doing? Are they living off the 13% of first time buyers that have yet to be turned on to this revolution? I do not think so, but I really have to wonder if they invest in their future.

“Oh Lord, here goes his sales pitch of why I should join their Real Estate network” I hear burning in my ears. Well, actually, no. My thought for this article is not to pitch what PREP can do for you. It is to pitch what you can do for you. If you decide that PREP is the avenue that you want to take, then great. But frankly, the fact that you think that you now need to start cutting a path though the internet so that people can find you easier is a start. With more than 200 different social networks available at your fingertips, just image the possibilities of what can be gained by just putting in an hour a day to get started.

I will leave you with this thought; “If You Do Not Change, You Can Become Extinct” (passage from “Who Moved My Cheese”).

I have heard many Real Estate Professionals that think that 100% financing should be dead, however, it does still exist and in my opinion it should continue. Those that think it should be done away with point to 100% financing as the reason that we are in the Real Estate foreclosure and delinquency issues we are in currently. To them, I say “HOGWASH!” It was not 100% financing that got us into this problem, it was making 100% loans to people that had a history of not paying their debts while not verifying that they made enough money to make their payments that contributed to this happening. Add that to the area of education, and you have a lot of the cause behind the effect.

In defense of the 100% buyer, I do not believe that people buy or bought a property with current or past loan programs with the thought that they will never make a payment. I think it actually turned out that way in some cases because the loan officer and the Realtor® did not do the proper educating of the buyer. I am certain that a lot of Realtors® will say that it is not their responsibility to educate the buyer. I think they are wrong just like it is and was wrong to a loan officer not to take the time to explain payments, increases due to ARMs and payment schedules. When you work with a buyer, it is up to you to make sure that they understand the process 100% of the way. This goes for the Realtor® or the loan officer. For instance, if your client is going up from $800 a month for rent to $1000 a month for house payment and have no savings, where is the $200 coming from and will they be prepared when the water heater goes out with a contingency fund? Education!

I may be on a soap box about this issue, but frankly, if more people were on the same one 4 years ago, maybe we could have avoided many of these foreclosures. How many people got into trouble when they didn’t have any idea that their payment could go up? How many of them know right now that they can also go down?

Over my years helping people in this industry I have been asked time and time again, who the best candidates are for 100% financing. Well, to be honest with you, that is a no brainer. The first and foremost candidate would be one that is willing to make at least a 5 year commitment to living in the home. Buying a home in this economy at 100% financing and expecting to be able to sell it in a year of two for a profit is a thing of the past. Now, please understand, I am not saying that it can’t happen. I am saying that it is not worth the chance that you take for that to happen. I would rather not have to face a consumer that I told it COULD happen that finds themselves at taking a loss or even breaking even. If you are going to buy and move in 2 years, rent!

Now, let’s move forward. Once you determine the commitment time, then the next thing to figure out is how much money they have to put toward the home. Bottom line is the ability to make payments after closing. If closing takes everything that your buyer has when using a standard FHA loan that might require 3.5%, then you might want to look into the USDA or VA loans if your client is a candidate. The one thing to remember in using USDA is that the property actually plays into the equation, so you might want to check the property address before showing the listing to a USDA client.

If you have not read USDA Rural Development Loans: Some Basic Information by Rich Dansereau, then I highly recommend reading that as well. Understanding the products and what clients fit into them are just as important as understanding the client themselves. Arming yourself with the knowledge to educate is just as important as well.

So, I leave you with this thought: Even though 100% financing is not for everyone, it is for some.

Though the title may seem to frame the question in a negative manner, it becomes readily apparent that this is not a negative article. In fact the article is encouraging. It encourages real estate industry professionals to practice their chosen profession in a professional and ethical manner.

I appreciate that the article points out the role of the main stream media in ratcheting up the hyperbole. I also think it is to the credit of the general public that they take the time to educate themselves on the current market situation. To educate oneself that there are many bright spots to be had in a buyer’s market is empowering. Contrary to news reports, many lenders are continuing to write loans. What has changed is the guidelines. These changes are meant to ensure that when you have been qualified to buy your home, you really are qualified. The stricter guidelines will ultimately help home buyers to avoid foreclosure and maintain their home. There are Realtors who want to help you find that perfect home. There are loans available to help you finance it. This crisis has provided a buyer’s market, are you a buyer?

Via Danny Thornton:

It seems that every where that I turn people are asking the same question. “How bad will the current crisis get?” Well, I thought that everyone would like to hear the answer to that very important question. The answer is quite simple when you really think about it. But, I have to say, the answer came to me today when I was watching the 6 o’clock news. Yes, can you imagine that, I actually sat down and watched the news to listen to the doom and gloom. Well, not really. I wanted to see if there was one glimpse of some positive news. And boy, did I get a surprise.

I know, I know, get to the answer. All good things come to those that wait. So, patience my friends, I will give you the answer in just a second. Over the last few months, you have listened to me preach about fear factor and how to help the market strengthen. Well, actually, there is something else that we as business owners can do that will strengthen the market today.

The first and foremost thing that we have to accept is that not every potential client is a customer. Some you will lose and there is nothing that you can do about this. Some are going to be “tire kickers” and some are going to go “window shopping”. But, in the end, they are all truly “potential” clients. The next thing is, we can be on top of our game. If we are fresh and readily available, then that is half the battle. We have to know our market better than any other person that we compete against.

Now, to the answer. The current issues that are at hand will start to subside when consumer confidence starts to grow. When people begin to feel that their job stability is safe, they will again go back to spending. They WILL get there. It will not be tomorrow, it will not be next week, it will not be next month, and it might not even be next year. But, consumers will start to come around and get back into spending. The question is will you be ready for them when they are ready for you.

In the meantime, there is something that you can do. And this was the revelation that I learned tonight watching the news. You can have better CUSTOMER SERVICE than anyone around you. If you do this, you will gain more of the market share that your competitors. The biggest thing that you have to remember is that you are in control of your destiny in this crisis. You might not be able to control all that is around you, but be in control of what you can and you too will survive.