8am to Noon at SMDRA

Instructor – Oliver Frascona

We are proud to announce that Lisa Smiley-Hayes has joined the growing team at RealtyTMS. Lisa brings with her five years of Short Sale knowledge and experience that will prove priceless for the many Realtors and sellers we work with every day.

Lisa said I have made this very exciting decision to join RealtyTMS to be able to offer my clients an even better Short Sale facilitation experience. RealtyTMS has systems and processes in place that will allow me to exceed the level of customer service my clients have come to expect.

Please feel free to contact Lisa at RealtyTMS via telephone, 303-633-5454, or email, Lisa.Hayes@RealtyTMS.com.

Colorado Roofers

Colorado Roofers

• 22.7% Decrease in closed sales year over year
• 4.2% Fewer closing year to date
• 17.1% Increase in active listings (17,625)
• 50.7% Increase in absorption rate (7.7 months)
• 5.7% Increase in average sold price ($290,025)

Condo/Townhome Highlights

• 24.6% Decrease in closed sales year over year
• 3.3% Fewer closings year to date
• 9.8% Increase in active listings (5,255)
• 43.1% Increase in absorption rate (8.3 months)

For full report of Entire MLS click here

Douglas County West (DCW)

Residential Highlights

• 4.6% Decrease in closed sales year over year
• 8.5% More closing year to date
• 7.3% Decrease in active listings (1,215)
• 2.1% Decrease in absorption rate (9.8 months)
• 2.6% Decrease in average sold price ($377,772)

Condo/Townhome Highlights

• 7.1% Increase in closed sales year over year
• 17.1% Decrease in average sold price ($178,131)
• 80.8% Increase in average days on market (141)

For a full report of Douglas County West (DCW) click here

Residential Highlights

• 5.6% Decrease in closed sales year over year
• 3.7% More closing year to date
• 10.1% Increase in active listings (1,152)
• 15.7% Increase in absorption rate (8.8 months)
• 3.3% Decrease in average sold price ($337,326)

Condo/Townhome Highlights

• 25% Increase in closed sales year over year
• 11.8% Decrease in average sold price ($143,959)
• 32% Increase in active listings (128)

For a full report of Douglas Elbet Parker (DEP) click here

Residential Highlights

• 23.6% Decrease in closed sales year over year
• 3.0% Fewer closing year to date
• 13% Increase in active listings (776)
• 50.5% Increase in absorption rate (6.6 months)
• 1.7% Decrease in average sold price ($362,256)

Condo/Townhome Highlights

• 11.1% Decrease in closed sales year over year
• 23% Increase in active listings (155)
• 21.7% Increase in average sold price ($258,368)

For a full report of Doulgas Highlands Ranch Lone Tree (DHL) click here

Based on Information from Metrolist, Inc. for the period Jan 2009 through present.Note: This representation is based in whole or in part on data supplied by Metrolist, Inc. Metrolist, Inc. does not guarantee nor is in any way responsible for its accuracy. Data maintained by metrolist, Inc. may not reflect all real estate activity in the market.

With the economy and new lending regulations having an impact on every aspect of the real estate industry, inventory and days on the market are up. Still, it is possible for Realtors to not just survive but even thrive in a down market. Now is the time to get back to basics on every level of your business by focusing on good business practices: solid accounting principals, marketing that works, and exceptional customer service. Here are nine ways to get started:

1. Manage your margins

You probably didn’t get into real estate because you loved accounting, but now more than ever, the accounting side of the business matters. Now is the time to evaluate every expense and cut the ones that are not contributing to your bottom line. While a down market is never the time to stop marketing, review your advertising budget and cut expenses that are not directly or indirectly bringing you business. Make a list of all the things you do to market yourself and place them in order of effectiveness, then focus on the most effective tools and eliminate the ones that are not working. Do this for every aspect of your business until expenses are all muscle and no fat. Lean and mean is the name of the game.

2. Maximize your productivity

In the same way you got rid of expenses that are not profiting your bottom line, get rid of business activities that do not have a payoff in either the short- or long-term. Prioritize your time and finish the most important activities before you move on to less important items. Use your time wisely and make every minute count. Time-block to get solid chunks of time in for those lead-generating activities that will make the most difference. If your office lends itself to socializing, try closing your door for periods of time to allow for uninterrupted workflow. This encourages more quality work in less time. If you engage in social media, limit yourself to one 15-minute chunk of time a day, and make sure you use that time to make personal connections with your A clients and prospects. Do more with less. Scale your paperwork and other back-office activities down to the bare basics to get the most done in the least amount of time. Then use the time and resources you have where they matter most: building relationships, generating leads, converting leads to sales, and providing great customer service.

3. Fill your pipeline

Today’s pipeline is tomorrow’s income. It goes without saying that you can’t close deals if you don’t have deals in your pipeline. And with so many transactions delayed or falling through, make sure you have plenty in your pipeline at all times. Identify your lead sources, get rid of the ones that aren’t working, and stick with the ones that are most effective. If you are already tracking where your leads are coming from, you are one step ahead of the game. Look into lead sources that may have fallen by the wayside too, either because you didn’t enjoy them or because they didn’t work before. The market has changed, so your best lead sources may have changed too.

4. Elevate your service Go above and beyond.

Exceed your customer’s expectations at every stage of the transaction, beginning with communication. Then do something most Realtors won’t — go the extra mile and do the unexpected: Make it a priority to return phone calls within an hour. If you don’t have an answer at least let your client know you are working on it; the more contact the better. Offer a guarantee so the client can cancel the listing at any time if they are unhappy with your service. Send invitations and make reminder phone calls before that open house instead of just putting up a sign. Drop an article in the mail with a personal note if you come across information you know would appeal to a past client or prospect. Providing exceptional service means choosing service providers who also go above and beyond. Their service will reflect on you and impact future referrals and your pipeline.

5. Leverage your referral sources

Even if you already count on referrals, now is the time to get busy and manage these referrals more actively. Concentrate on your A and A+ clients — don’t waste time on C clients. If you think can move a client from your B-list to your A-list, make contact. The most important kind of contact is face to face: coffee (less expensive than lunch) or a pop-by. A pop-by doesn’t have to be expensive and actually never should be; home-baked goods and gift cards are inexpensive and thoughtful. If your company offers marketing cards, use these too, but instead of mailing, deliver them by hand. Make sure to send out personal hand-written thank you notes for everything, including referrals. In other words, get back to basics. Make personal connections to get more connections.

6. Build your reputation

Know people in your community and be known — by attending meetings, keeping your professional designations, and networking. Be a trusted source of information in your community, the go-to person that people think of first when they have a question. Be respected in the community and you’ll find that people you don’t even know will refer you because of your reputation. Become a trusted advisor to your clients: the source of economic news, local and national statistics, how the market is trending. Give them a perspective on the market from an expert — you. After all, you are the authority on your market, and no news articles or Internet blog can replace the value you bring to your clients by being involved in the market on a daily basis.

7. Finesse your staging expertise

In a buyer’s market, you’ll have to dress to impress to get top dollar. A home that is not well-staged may get lower offers, or buyers will simply choose another home that is more attractive. Some of your clients may understand what needs to be done, but others will appreciate the coaching, and they are paying for your expertise. Explain to your clients that you take your job seriously, and, to get the best price for their home, they’ll need to follow through on your directives to box up clutter, repaint walls, and stage their home. In this market, it matters more than ever. Consider hiring a home staging consultant, or, if you are adept at staging, offer a complimentary staging consultation as part of your listing package to help set yourself apart from the competition. And, since more and more people do their preliminary looking online, do not underestimate the value of photographs of a properly staged home.

8. Hand-pick your vendors

In today’s market, your choice of vendors has never mattered more. Choose companies whose reputations are stellar. There is too much at stake to let a single unscrupulous vendor or someone else’s sloppy work jeopardize your transaction — and your reputation. When it comes to lenders, there is no substitute for a knowledgeable and proactive loan officer. If you’ve worked to build a relationship with a loan officer you trust, get them on board at the beginning with each new client to pre-qualify them. If you don’t already have a long-term relationship with a lender you trust, cultivate one. Never underestimate the impact a lender who is on your team can make in serving your clients and getting the transaction closed. Lenders who are willing to educate buyers about all of their financial options are worth their weight in gold. In this market, more borrowing options means a greater chance of successfully closing the transaction.

9. Embrace the market

Short sales and foreclosures scare off many Realtors. But in this market, sooner or later, most Realtors will encounter one. The real estate professional who disdains the short sale will lose out to the Realtor who has taken the time to become educated about short sales, or even to become an expert in them. If you don’t want to become an expert, at least take a class to get up to speed, then, instead of turning down a short sale, consider hiring a short sale company to handle the details for you. Your upbeat, knowledgeable, and professional attitude can shine through in the midst of troubling times. If people are moving or selling because of job changes or economic stress, they still want to work with people who are friendly and optimistic. You don’t have to see the real estate world through rose-colored glasses, but make the time your clients spend with you on their transaction as enjoyable as possible. You’ll get positive word-of-mouth marketing today, and more repeat and referral business tomorrow.

3 Easy Ways to Order O&E’s

1.  Order online at www.ltgc.com while logged into your account (if you do not have an account set up on line click here)

• We will securely store your credit card information and you will be billed upon delivery of the O&E

2. Call the Land Title O&E department at 303-850-4190

• We will need your credit card information if we don’t already have it on file

• Your credit card will be charged upon delivery of O&E

3. Email to OE@ltgc.com or your closer or me

• Please have your credit card information handy if we don’t already have it on file we will be calling you back

• Do not send your credit card information in the email

How we handle your credit card information

We are taking every precaution to ensure a secure credit card transaction. All credit card information is encrypted and secure.  We will only display the last 4 digits

• We will accept Visa and MasterCard

• We will require name, card number, expiration date and billing address

• If we take your credit card information over the phone we will input it directly into our secure system

Additional Documents (i.e. plat, covenants) requested with O&E

We are required to charge for additional document.  Our filed fee is $2.00 for each additional document delivered.

Please call me direct with any questions or comments.

**La Plata (Durango), Routt (Steamboat) and San Miguel (Telluride) have different rates for O&E.

Megan is a Colorado native who grew up in Arvada. She graduated from UNC in 2003, majoring in Chemistry with a minor in Mathematics. Megan enjoys cooking, gardening and wake boarding with her husband.

Megan’s philosophy is that her success is based upon her clients success and looks forward to using her educational background and experience in her previous position with Metrolist to help her clients.

Megan will be working as a team with Jim Renshaw in Highlands Ranch and Andrea Kvamme in Lakewood.

Megan Aller with Land Title

Several of the contract forms changed in 2009 and are reviewed in this update. Learn what the appellate court decided about real estate brokers buying property on their own behalf. Review RESPA Reform, the SAFE Act, and Foreclosure Protection Act. Learn how the Home Valuation Code of Conduct may affect appraisals on properties. Real estate brokers must complete 12 hours of the annual commission update course during their three-year renewal cycle.

Tuesday, April 6, 2010
9:00am – 1:00pm
Instructor: Oliver Frascona with The Real Estate School
Where:  Green Gables Colf Course
6800 W. Jewell Ave
Denver, CO

Please RSVP to Leslie Halliday at lhalliday@ltgc.com

Class and breakfast provided courtesy of:
Jocelyn Predovich • Jocelyn@limetreelending.com • 303.325.3578 • Lime Tree Lending Group
Jim Renshaw • 303.906.1915 • Land Title Guarantee

The last time Land Title published a technical bulletin about short sales was in 2006. Back then, short sales were rare and many people were unfamiliar with the term. Now, with over 20% of Colorado mortgages upside down* and short sales accounting for nearly 16% of home purchase transactions nationally in January,** it’s a hot topic and one that cannot be ignored. The number of these transactions is increasing, and Realtors are finding short sales are becoming a regular part of the real estate landscape.

What is a Short Sale?

A short sale or short payoff is generally defined as a sale in which a lender allows the property securing a mortgage or deed of trust to be sold for less then the existing loan balance, due to factors such as the borrower’s financial circumstances, the property’s physical condition, or local real estate market conditions. A short sale is really a form of pre-foreclosure sale that occurs when the mortgagee agrees to accept less than the loan amount to avoid foreclosure. A negotiated short sale may result in a discounted purchase price for the buyer. The buyer then finances the acquisition much the same as in any conventional real estate acquisition.

Complexity of Short Sales

Short sales are extremely complex transactions, even for the experienced Realtor. Part of the reason is that they are time-consuming. Lenders are inundated with requests for short sales and therefore expect all paperwork to be complete and accurate before even considering a short sale. Lenders may also request that the paperwork be resumitted multiple times, and just getting the file itself to the lender can sometimes present a challange. Additionally, there is no regulation or industry standard for short sales, meaning every lender may have different requirements and expectations. Even a Realtor who is familiar with the requirements of one lender may not know the ins and outs of another lender’s requirements. Furthermore, lenders’ policies and processes can change often and even vary by investor.

Managing a Short Sale

If you’ve successfully completed short sales in the past, you are aware of the incredible complexity of these transactions and the time consuming nature of the work involved. That’s why Land Title has teamed up with RealtyTMS, Colorado’s leading short sale specialists, to assist our clients with their short sale transactions. With Land Title and RealtyTMS on your side, we’ll take hours of administrative time off your plate so you can focus on the dollarproducing activites you do best: lead generation, marketing, networking, and sales. This means you can handle more volume and keep your pipeline full, which is especially important in today’s real estate market.

Your Team of Specialists

If you choose to work with Land Title and RealtyTMS, you’ll find that it’s not just one person who manages your file — RealtyTMS will put their entire team to work for you, diligently contacting the banks for status updates and making sure the file is moving through the system. RealtyTMS regularly communicates with the listing agent, plus their online transaction management platform allows Realtors to log on and view status updates 24/7.

A Lengthy Process

Some Realtors have taken to referring to short sales as “long sales” because of the length of time it can take to complete these transactions. RealtyTMS also understands the value of keeping the buyer engaged during this timeconsuming process, where it can take months to get lender approval. They work closely with the listing agent and keep all parties informed on the progress of the file at every stage as it moves through the system.

New to Short Sales?

For Realtors who are well-versed in short sales, Land Title and RealtyTMS want to be a trusted part of your short sale team, so you can hand off administrative tasks and focus on your clients. If you are new to short sales, RealtyTMS and Land Title will also provide education and help set expectations for you and your clients about what to expect from listing to closing.

Factors the Lender May Consider

What makes a lender decide whether to take a discount on a mortgage? What formula do they use to decide how much to take? These are tricky questions. Each of these transactions must be evaluated on a case-by-case basis, and there are a number of variables involved in each one.

A borrower is often in default or will be soon when the lender decides to take a discount. There may be instances where there is no default; this usually means that the borrower is upside down on the mortgage and what is owed exceeds the value of the house.

There are a number of factors that a lender may consider when deciding whether to discount a loan and by how much, including the borrower’s overall financial condition and circumstances, the property’s “as is” value, and the cost to market and re-sell the property. Also, two short sales at the same bank may actually be held by different investors, so the percentages and “formulas” for approval may vary even with the same bank.

A short sale is usually the lender’s last resort before foreclosure. Overall, the goal is to show the lender that a short sale is the quickest and best way to mitigate their loss. Some lenders will only approve a short sale when foreclosure is not economically feasible because the borrower is insolvent and one or more of the following may have occurred: • The property was purchased or refinanced at the top of a seller’s market at an over-inflated price, and a substantial drop in value has occurred.

• The property was financed as an interest-only adjustable rate loan and the borrower has no capacity to refinance at a lower interest rate.

• The property was refinanced at more than 100% of its value.

• The property is located in an area where property values have dropped due to local economic conditions, or the home’s value has decreased to an amount below the loan balance due.

• The property’s “as is” condition has deteriorated to a point where it is not feasible for the lender to put it in a marketable resale condition.

• The proposed purchase price is more than the lender would be able to sell property for after foreclosure.

• Any sales commission proposed in a contract is less than what the lender may typically have to allocate after the foreclosure process is complete to market and sell the property.

The lender will also do a market analysis of the property. The Broker’s Price Opinion (BPO) may be the single most influential component the lender considers when deciding how much they are willing to accept as a reasonable short sale offer. The lender hires a real estate agent, broker, or appraiser to assess the property and give their professional opinion of its value to the lender.

Documentation

Most lenders ask the borrower to document their hardship prior to approval of the sale. The lender will request at least the following information for consideration of a short sale:

• a personal hardship letter that defines what the hardship is and proof of the hardship claim, if available;

• a Third Party Disclosure for authorization to speak to the Realtor or other representative about the loan status; • a completed financial worksheet of net income and monthly expenses;

• copies of the last two years’ Federal Income Tax returns with all schedules;

• copies of last two months’ payroll stubs, or profit-and-loss statement if self employed;

• copies of last two months’ bank statements for all accounts;

• a copy of the sales contract signed by both the seller and the buyer; and

• estimated closing costs showing a detailed breakdown of all projected costs including Realtor commissions for listing and selling agents.

Once the lender has the above information, it could take three to twelve months to negotiate and close a short sale, depending on the lender. It really is a “numbers game,” with the lender in control.

Not every homeowner facing foreclosure is a good short sale candidate. A giant step to getting a lender to consider your short sale proposal is to have as much information ready as possible to expedite the process, and to work with short sale specialists — like Land Title and RealtyTMS — who understand the different lender requirements and systems at the banks.

** Denver Business Journal, “20% of Colorado Mortgage’s Upside- Down,” February 24, 2010.
** DSNews, “Short sale s See Big Jump in Activity,” February 22, 2010.