All posts by Robert Bevans

The Hazards of Voice Mail–Don’t let the “Easy Way Out” Turn off Current or Potential Customers

Customer Service, Marketing / Communication,

Voice Mail is not new, and with the advent of increasing email and website usage, phone traffic is on the decline. The telephone still remains, however, a viable means for our customers to connect with us, and , now, when customers call, they have something important to state, or an important question to ask.

If you, or a reliable person in your office, is not available to respond, the customer may become frustrated, or worse yet, angry and disappointed. I have found in the three offices which I operate as a Massachusetts title attorney that putting the customer through an endless series of prompts and instructions will,  in the long run, lose business for me and my firm.

Think of it this way. You are the professional. You know your business better than the customer. The customer is often looking for reassurance or the answer to a simple question. When the customer hears your voice, the customer almost always calms down. The customer has asked for service, and you are providing service.

What if the customer is calling to ask you a question that you don’t know the answer to, although you have been researching the matter?  What if the customer is asking to see his or her HUD-1 Settlement Statement although you have not received “final numbers” from the Lender? My experience has told me that there is no harm in telling the customer that you do not have the answer or the HUD-1, but you are “working on it”. Isn’t that better than having the customer call 4 or 5 times and then decide that you really don’t care enough to even speak with him or her?

I try to stress upon every person in my firm the necessity of actually speaking with the customer, not putting the customer off. There is nothing any of us does that is so unique that another person cannot replace us. Letting the customer know how important we think he or she is, by trying as hard as we can to speak with them when they call, can make the difference between our success, or failure, as real estate professionals.

Eliminating the Emotion–No job that we do as Real Estate Professionals is more important

closing, Marketing / Communication, , ,

I recently wrote a Featured Post about negotiating. I stressed how important it was for people to “walk” at some point in negotiations, either before the property was placed under agreement or at the closing table.

The consistent sentiment from those of you who responded was that you worked hard in the beginning of the engagement to develop a set of expectations from your client , and then tried as heard as you could to keep  that “wish list”, if you will, in front of the client, at all stages, with the objective that  the client would not change course and start to ask for new concessions, normally late in the game.

This approach appears commendable. Almost everything in our business improves with preparation and diligence. I would suggest another important element when you are speaking with your client early in the game. Tell the client that emotions should be “left at home” while they are negotiating for their home. As much as they want the home, or want to sell the home, they need to maintain a “poker face” throughout the process.

In my experience, any  significant show of emotion by Buyer or Seller opens up the doors to the other side. A client needs to  be comfortable with his or her goals for the transaction. They may change somewhat after the home inspection. Perhaps, they need even to be put down in writing. But, I have found that we do out best for our clients if we remind them, gently but firmly, that they should not lose sight of what their goals were in the transaction and what they really expected.

Sometimes the best way to remove emotion is to remove the client. Urge your Seller not to attend the cllosing. Nothing is added by the Seller’s presence, and the chance for an emotional flare-up is increased by the Seller’s presence. The  parties do not need to like the people on the other side; they just need to accomplish what they originally set out to do, purchase, or sell, the property, on terms which they have assessed as fair. If we can keep them focused on that course, we are doing our job,

Big Trouble Brewing in Massachusetts–The Seller does not own the Property you are Buying

Uncategorized, , , ,

The point I am making seems so simple. Of course, my seller owns the home he or she is listing. Why else would the person be speaking with me and going through a listing agreement, and seller statement and countless open houses and execution of an offer and purchase agreement if the person did not own the home.

The cold hard facts are that there is a recent Massachusetts case where the putative seller had placed the property in a trust, where he was the trustee, prior to listing the home. As an individual, he did not own the home. The relevant documents were signed, the buyer applied, and was committed for, a mortgage. The title examination revealed an owner other than the person listed as seller on the purchase agreement. The transaction did not close.

This may seem totally ludicrous to most ActiveRainers. It didn’t strike me as properly defensible either. The buyer certainly had rights against the seller for fraud and deceit. He did not, however, have the right to compel a conveyance from the seller. Each piece of property is, on its face, unique and specific performance could not be granted against a non-owner.

There are ways to guard against this heinous result as follows:

     1. Prior to taking a listing, the listing agent can do a simple owner search. In most states, this can be done online from your computer. If you don’t know how to access your registry online, ask you title company or title attorney to teach you. You can find out from the jump whether you are dealing with the proper owner.

     2. After the initial documents are sign, the buyer  agent can ask his or her attorney, or title company, to confirm the ownership of the property right away. This is a relatively simple process, but it can save heartache and expense in the future.

There is nothing more frustrating in law than having a right without a remedy. Being able to sue a seller for deception is one thing, but it doesn’t get the buyer the property he or she has set their sights on. Go the extra mile to make sure that the record title is in the name of the seller. Anything short of that is not acceptable.

Twitter Power for Active Rain–I Tweeted the Whine and AR treated me fine

Uncategorized, ,

I do not know his name. I always get people’s names, and write them down,  when they call me. I have been practicing real estate law in Massachusetts  for more than forty years. I know better. Suffice it to say, whomever he was, he was very helpful. He responded right after I tweeted that I had been writing thought- ful posts on ActiveRain, and no one was commenting. My feelings were hurt.

Right off the bat, he spotted one problem. My posts were limited to Members; he made a keystroke and now they are available to the public. Ww walked through a recent post of mine, He suggested some key words to include. I needed to make my posts more local to Massachusetts , so they wiould appeal to the audience I was really seeking. He suggested that I put pictures or cartoons in future posts. He showed me how to do this appliocation. I will try to make this addtion, soon.

Bottom line, I received a ten minute, very intensive tutorial on posting on AR. My job now is to make my posts more lively and relevant. That is fair, and I am energized. I am reading a book called TWITTERVILLE by Shel Israel. I am finally starting to understand why Twitter can be powerful in growing my practice. Having said that, the lightning quick response from AR when it was mentioned on Twitter is the best evidence of what Mr. israel is suggesting, AR is living. No tweet is unimportant; no tweet can be ignored.

Frustrated by the Apparent Insourciance of Massachusetts Mortgage Lenders- -Make your Sales Agreements “Bulletproof”

closing, Mortgages, , ,

In the near recent past, most real estate purchases in Massachusetts had one thing in common. They closed on or before the date set for closing in the sales agreement.  The writer, a Massachusetts title attorney with more than forty years of experience, has recently seen a departure from that truism. Loans are now closing, when the Lender is ready, and that may well be after the specified date in the sales agreement.

Generally, when I have represented Buyers, I can get by this delay because I am working with fellow professionals who have been on my side of the fence in other matters, and they are sympathetic. We enter into extensions to permit delayed closings. I cannot really count on this goodwill every time I represent a Buyer. I , therefore, approach the problem frontally and insist on some protections in the sales agreement which are designed to lessen the stress when the Massachusetts Mortgage Lender insists that the loan is not “clear to close” because the third appraisal review has not been completed, and Martha is on vacation, and she will not be able to get to it until next Tuesday. (Your scheduled closing date is next Monday!!!)

So with this knowledge in hand I work hard to insure that the following provisions are in my Buyer representation sales agreements:

     1. The Mortgage Contingency Clause. I insist that the mortgage commitment be “in writing” and does not contain “any terms or conditions which are beyond the Borrower’s ability to fulfill in a reasonable time” I now am insisting that the appraisal which is the basis for the mortgage commitment “indicate a value equal to or greater than the purchase price.” The appraisal piece is becoming much more important with the new appraisal rules. I say to the other side, “Look, we all entered into deal this in good faith, but if we are wrong about the appraised value, we can not go through with the deal”. In these days, this seems to work.

     2. Delay Protection Provision. Getting a solid mortgage contingency provision helps, but it does not deal with the internal idiosyncracies concerning the understaffed Mortgage Lender. So, even after I make the mortgage contingency provision have some teeth, I  also insist on a provision as follows; “The parties agree to extend the deate of closing for a period not to exceed fifteen (15) buisiness days if the delay is caused by Buyer’s Mortgage Lender. or the Seller”.

     3. November 30, 2009. I have also recently been putting in a provision that if the Lender’s, or Seller’s delay causes the transaction not to close on or before November 30, 2009, the parties agree that the purchase price will be reduced by $8,000. This may seem harsh, but that closing cost credit would appear to be vanishing on December 1, 2009, and I want my client protected. I am not always successful in getting this provision accepted, and I do allow  the clause not to take effect if the Buyer Tax Credit is extended.

These are my suggestions. I would welcome yours. Masschuseets Mortgage Lenders are understaffed. They are working on short sales and modifications. They fail to grasp what “time is of the essence” means. We need to think ahead to protect our clients and customers.

The Senate approved a measure to extend the First Time Home Buyer Tax Credit

closing, title

The Senate approved a measure to extend the First Time Home Buyer Tax Credit until September 30, 2010. The House had already passed this bill. This will allow the buyers who had qualified for the tax credit but were not able to close by June 30, 2010, to now close by September 30, 2010. The Bill still has to be signed by the President but that seems to be a done deal.

Massachusetts Condominiums Should have Websites–It outta be the Law

Condominium, , ,

Condominiums in Boston, Massachusetts and surrounding towns come in all shapes and sizes. There are a plethora of 2 and 3 Unit condominiums, former personal properties where the owner usually lived in one of the apartments, and rented out the other apartments to family or third parties. These “Mom and Pop” building are NOT the subject of this post.

What I am addressing is Condominiums with four or more Units. These Units were either built as Condominiums, or have been converted from apartment buildings to condominiums. Some of these larger units are self-managed, but the great majority are managed by professional managers. These managers do not make things easy for the Unit Owners. There is almost always a charge for move-ins and move-outs and there is a charge for a 6(d) certificate, so-called, which indicates that there are no unpaid common area charges for a Unit which is being sold.

Condominium Documents, when available, are unsigned, and amendments thereto are not furnished. Floor plans are not readily available, especially now since Massachusetts condominium law has been amended so as not to require the recording of a certified floor plan at the  first-time sale of a Unit.

So, at least in Massachusetts condominiums, the law should be changed so that Condominiums with four or more Units, should be required to maintain a Website, which contains, at a minimum the following items:

     1. Floor Plans of each Unit

     2. A complete set of  recorded Condominium Documents, and amendments, with Registry information included.

     3. A form of a 6(d) Certificate which requires only “fill-ins” for completion.

     4. The names of the current, of record, Trustees.

     5. The name, telpehone, and email address of the individual who needs to be contacted to fill out Condominium Questionnaires as required by lender.

I would also suggest that Unit Owners have restricted access to minutes of the Trustees, so that Unit Owners can be kept up to date on proposed assessments and other matters affecting the Unit Owners. These can be distributed to prospective Buyers at the Sellers’ discretion, but I know that I always ask for them when I am representing a Massachusetts condominium Buyer, and they are often extremely helpful.

The cost to set up a webpage continues to go down. The need for an effective vehicle for Unit Owner and realtor communication is real. I would be interested in hearing your response to this initiative. In my mind as a Massachusetts title attorney with over 40 years of experience, this change in the Massachusetts condominium law is way overdue.

Alternatives to Adversarial Foreclosure–Ways that you can participate in the new wave of mortgage investors of distressed situations

Short Sales & Foreclosures, , ,

Whether or not you are aware of it, there is a growing group on investors (mostly funds and committed individuals) who are purchasing mortgages, either in bulk or individually, and getting in front of these investors may mean new opportunities for you.  The investors see an opportunity to participate in a “win-win” situation. They purchase the mortgages for pennies on the dollar. Because they have purchased at the right price (usually less than the value of the underlying real estate) they can work out individual solutions with the distressed Borrowers, which sometimes permit the Borrower to stay in his or her home. If that result is not possible, a kinder, gentler exit strategy is developed with respect to permitting short sales to move through efficiently or to accept deeds in lieu of foreclosure, but still allow the Borrower to stay in the real estate until the end of the school year.

I am aware of at least two of these investors, and I would gladly furnish this information to you if you contact me. The beauty of this carrot, not stick, approach is that the real estate is often not destroyed by a vindictive Borrower before he or she leaves. There are ways to give incentives to Borrowers to  maintain the property before they leave, including cash payments and assistance in finding alternative shelter. The investors involved have developed a corps of people to contact the Borrowers and listen. Many Borrowers have fallen behind because they have lost their jobs, gotten sick or split up their marriage. They did not commit fraud when they purchased; they ran into some bad luck.

The new investors are people you should be speaking with. They have the efficiencies of a focused approach and a plan. There is no reason why each of you could not fit right in.

Working Unusual Hours–Turn Your Idiosyncracies Into a Marketing Plus

Customer Service, Marketing / Communication,

A while back, I noticed a clip in an online legal service I subscribe to which indicated that a real estate customer was suing her realtor for harassment because the realtor sent this client emails in the middle of the night. I never found out what the outcome of this litigation turned out to be. My only thought was that this suit was a perfect example of how deeply enmeshed our country is in litigating anything and everything. It is my fervent hope that this customer did not prevail in this lawsuit.

Like many Rainers, I work strange hours. I don’t sleep much, and when I wake up in the middle of the night, I am just as likely as not to go to my computer and fire off a few emails as to return to bed. I have some thoughts and solutions for some of my clients. Why shouldn’t I write them down and get them in front of the people I am trying to serve?

To me, the beauty of email is just what I described. I can write an email any time I please. My client can read it any time he or she pleases. For me, email has cut down my phone conversations considerably. More than that, it has permitted me to put down in writing often complicated solutions to questions, in print, so that my clients have a better chance of understanding what I mean because they see it in words rather than hearing it from me, and perhaps, not quite understanding everything I have said.

My clients often say to me “Don’t you ever sleep? What are you doing sending me an email at 3:45 AM? I usually respond that I was thinking about a solution for their situation, and I thought it made sense t get it down in writing so they could have an opportunity to review what I was thinking. My sense is that, deep down, there is recognition of effort and commitment on my part, and these two qualities can only enhance my standing with clients.

I can’t really control how much I sleep. Fortunately, none of my clients have sued me for sending emails in the middle of the night. My sense is that my sleep deprivation syndrome may be a marketing plus. I would be interested in hearing your reaction to this analysis, and whether, you, too, use middle of the night emails.