Pat's Real Estate Blog

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Webmaster was Right!

My webmaster has been after me for a year to post on ActiveRain, but I thought I was too busy.  I now understand the importance of this wonderful network.  How interesting that some of the other networks I have been participating in do not bring the same value and potential for business as ActiveRain.  Many of the top posters on ActiveRain used to participate on these other networks.  Suddenly, strangely they disappeared!  I honestly thought perhaps they had met with some unfortunate event---even death came to mind.  I am now finding those smart people on ActiveRain.

I hope to become a very active member----and I hope to balance business with my participation.  This could be addictive!!

Twilight Zone Buyer

Guess I just want to cry on someone's shoulder.....I fully understand that a realtor should always ask the question, 'Are you working with a realtor?' before allowing a buyer in their car.  However, last week, 'Pat' called me.  (Wow!  What a coincidence, she even has the same name as me!  Bet we hit it off right from the start!)  She simply stated that she was now ready to look at a few houses.  She obviously thought I knew who she was so I was not going to say anything different.  Normally I would have notes or would have set this person up on an automated search for homes, or something to remind me of who they were or how we made contact.  I could find nothing.  I chalked it up to the age thing finally getting me.  My mind must really be going.

So Sunday we met up and headed out to look at some homes.  Pat turned out to be a very nice person and we did hit it off immediately.  Still there was nothing in her appearance or our conversation that jarred my memory of how this person knew me.  About the 3rd house, she mentioned her home in another city that was currently on the market.  I thought, okay, she listed with a local realtor to sell her home, but wants to work with me in this area because I would be more knowledgeable.  About the fourth house she said, "You guys have my home listed."  I took that to mean the real estate company I affiliate with had her home listed.  Then she went on to say, "Derrick.  Derrick has my home listed."  I then had to ask if it was one of the two 'Derricks' I know.  She answered that it was.

Derrick and I both cover the same areas. Why had she not called him to look at homes?  Why had she called me?  I did not say more about it at the risk of making Pat feel bad, but showed her the remaining homes on our schedule. I felt as if I was in some sort of a daze the rest of the afternoon. She found two homes that were possibilities for when the contingency on the offer on her existing home was removed.

How did this happen?  What just happend?  After sleeping on it, I decided to call Pat the next morning.  I asked her why it was that she was not using Derrick to help her find a home to buy.  She answered that she wanted to use Derrick and that she 'had' to use Derrick. She thought I worked with Derrick and was his buyer's agent.  I told her that I had my own team and was not on Derrick's team. I also said that after we had parted ways the day before, I realized something was not right.  I was very nice about it and said that of course she should use her listing agent to help her find a house.  She apologized for wasting my time.  I asked her how it was that she came to call me in the first place.  She said that I had called her!  I explained that there would have been no way for me to have her number and that I did not call her, she called me.

After that phone conversation I called Derrick and left him a voicemail telling him what had happened and to get in touch with me if he would like to know which homes his client had decided on.  I have not heard from Derrick and I still do not know how his client came to contact me. I am still trying to sort through this.  Strange........

Guidelines for Seller Contributions

When structuring real estate transactions to meet Fannie Mae, Freddie Mac, FHA, VA, and community products, agents should keep in mind the following allowable seller contributions for closing costs and prepaids:

 

Conventional Loans

            Primary & Second homes

                        90% to 100% loan-to-value:  3%

                        75% to 90% LTV:  6%

                        Up to 75% LTV:  9%

            Investment properties

                        2% maximum, regardless of LTV

 

FHA Loans

            6% plus 3% for down payment assistance through a third party

 

VA Loans

            4% regardless of LTV

 

First-time homebuyer community programs

            3% to 6%

 

Seller contributions are based on the lesser of the sale price or the appraised value of the property.  Comparing similar active listings and sold homes in the area is critical.

How to Help Someone Rob your Home

Have you ever shown a home while the sellers were out of town only to find out that the home was burglarized?  Well it has happened and for me this is a first when I discovered that a relatively high end Indianapolis home had been robbed while the sellers were out of town.  I invite you to read the full story to see exactly how this played out and how you might be able to help other sellers avoid the same fate.

Pat Haddad
- The Haddad Team

Indianapolis real estate