What day should you negotiate to close escrow in order to meet the needs of the buyer and seller?  When negotiating a contract, the actual day of the week that the close is on is not often considered.  More typically, contracts call for 30 or 45 or “x” day escrows.  But, considering that:

1. Most buyers prefer to move into their new home on the weekend, and
2. Most sellers want to get their funds as soon as their sale closes,

we at CV Escrow suggest taking a look at the specific day that you are projecting to close with your “x” day escrow, and attempt to avoid a Friday close.  Thursday or earlier is often best.  This is because you allow for a day from the recording of the sale for a seller to receive their money and a day of wiggle room for the buyer in case any part of the process encounters a snag.  In the case that a hiccup with any part of the closing process does occur, this leaves at least an extra business day to close before the weekend.

Other considerations:

Should we close at the end of the month?

Some people are concerned with closing at the end of the month. The benefit of closing at the end of the month is that the buyer does not have to come in with as much money to pay for outstanding interest that may be due. Closing at the end of the month is generally not a problem if all the documents are turned in on time. However, buyers and sellers should be aware that generally the county recorder’s office has more volume on the last day of the month.  Confirmations of recording tend to come later in the day as a result, and the risk of delays in proceed disbursements can increase as a result.  Of more common concern to most buyers and sellers is to avoid closing on a Friday and perhaps facing a delay that would force the buyer and seller to wait until after the weekend to close.

Holidays

Be sure to take holidays into account when negotiating a closing date as well.  The county recorders office, banks, and often escrow are closed for all public holidays and this can impact your closing date.  If for example, you plan to close on a Thursday, but the next day is a holiday, you might prefer to target a Wednesday close in order to best plan for the property closing before the long holiday weekend.

The escrow agent will present all the details of your closing to you and explain the process step by step. Keeping in mind the best day to close however will help your escrow go more seamlessly.

Every Tuesday, here at the CV Escrow website we post Technology Tips designed to help you, the Realtor, grow your business, keep up to date on the latest technologies, and move you forward into the new era of Real Estate.

I’ve spent several posts over the past few weeks discussing technology tools and trends for Realtors that fall under the “Web 2.0″ category. Today I’m going to back up and define what Web 2.0 is and discuss why Web 2.0 presents opportunity for Realtors.

Before we can define Web 2.0…let’s discuss what Web 1.0 is. Web 1.0 is basically a website that is a brochure for your product or service. It is your offline company brochure or pamphlet represented on line. It is static. It is promotional. It says what you do or what you are selling. Most agents have a Web 1.0 website. I think this is an important part of a Realtor’s online marketing campaign – when your clients go to the web, they should find you. A web 1.0 website accomplishes this. However, it does not provide the new business opportunities that web 2.0 sites do.

So, then, what is Web 2.0? This definition is provided by Wikipedia: Web 2.0 is a “business revolution….caused by the move to the Internet as a platform, and an attempt to understand the rules for success on that new platform”. Web 2.0 websites and technologies often have the following words used to describe them: social, open, connected, feedback, community, networking, transparency, interactivity. Web 2.0 technologies (and the resulting websites) create a fundamental shift in the opportunities for companies (and yes, even Realtors) to do business. Web 2.0 offers the Realtor new ways of communicating with people. It offers the Realtor new ways of prospecting. It offers new ways of creating and building business. This is because the rules of the game are so very different than how Realtors sell offline and in a web 1.0 world (more explanation on this to come in future posts).

There are many websites that you have probably heard of (in real estate and out of real estate) that encompass web 2.0 principles. Sites like Facebook, LinkedIn, Twitter, even Match.com. And there are ways to use all of them to support and build your business because these sites provide the opportunity for interaction or connectivity with other people. In addition, there are many players in the Real Estate Web 2.0 space. Sites such as Trulia Voices and Active Rain are outstanding web 2.0 communities which offer great opportunities for Realtors. For a road map of the leading Real Estate Web 2.0 sites, check out this image by 1000 Watt Consulting:

I also find this comparison by Darren Barefoot between Web 1.0 and Web 2.0 useful:

• Web 1.0 was about reading, Web 2.0 is about writing
• Web 1.0 was about companies, Web 2.0 is about communities
• Web 1.0 was about lectures, Web 2.0 is about conversation
• Web 1.0 was about advertising, Web 2.0 is about word of mouth

To me and many others, Web 2.0 presents exciting new ways of doing business. And, for the Realtor who is looking for new opportunities in this challenging time, Web 2.0 offers uncharted territory and hope. There is a growing number of Realtors who are building their business and experiencing success by working and applying web 2.0 strategies (and a growing number who are thriving!). By reading this blog, you will be introduced to several Web 2.0 strategies and sites that you may want to consider adding to your real estate repertoire.

Interested in what you are reading? To automatically receive these Tuesday Technology Tips in your email box, subscribe to these articles at the top right corner of this site (www.CoachellaValleyEscrow.com) in the box titled “Subscribe via Email”.

I am proud to announce that Escrow Officer Julie Ekstrom has joined our team at CV Escrow.

At CV Escrow we’ve recruited the best and brightest in escrow professionals and Julie is no exception. With a long and respected history in the Coachella Valley, an established relationship with many of the best agents in the area, and more than 30 years experience in escrow, Julie’s focus on exceeding customer expectations has paid off.  A true professional with not only escrow, but also branch management experience, her outstanding escrow knowledge and skills are complimented by her soothing and calm demeanor.  She is a problem solver under pressure and has a history of making closings happen.  That is the kind of escrow officer we look for at CV Escrow and we’re excited to have her.

Please join me in welcoming Julie to CV Escrow.

Julie Ekstrom
Escrow Officer
Direct:  760.332.9183
Email: Julie Ekstrom

Every Tuesday, here at the CV Escrow website will be posting Technology Tips designed to help you, the Realtor, grow your business, keep up to date on the latest technologies, and move you forward into the new era of Real Estate.

You probably answer some version of one of the following 3 questions from your clients and prospects every day:

• What is for sale?
• How much is my house worth?
• How’s the market?

I’ve found a vendor who helps Realtors to answer these questions from a very informed perspective.  Altos Research offers a series of products that are based around real time local market data.

My favorite of Altos product offerings are as follows:

AltosCharts

This is a graphic image that reflects local market conditions and is automatically updated once per week with current market data.  They have charts that show the general pricing trend, the average days on the market, the median price per square foot, and the active inventory level, to name a few.  This image reflects a sample of the charts available for Palm Springs.

Here is an example of a Realtor who has incorporated AltosCharts into his site:  Brian Wiegand – SeattleHome.com

AltosStats

Their newest offering, just released last week, AltosStats provides a tabular 7-day snapshot view of a local market answering questions such as the Median List Price, total inventory, average home size, days on market, average price per square foot and average age of a home.

Here is an example of agent using it in a blog post:  Irina Netchave – SanMarinoCaRealEstateHomes.com

AltosReports

AltosReports are a pdf report that can be emailed to your prospects and clients or printed for use on listing presentations, open houses, or client meetings.  They are customized to you with your name, photo and contact information, and present a detailed anaylsis on the local market along with written commentary to help explain the numbers and trends.  The reports also provide a “quartile analysis” so that you and clients can compare the trends around different pricing brackets.  The reports are approximately 10 pages long offering a plethora of data on the local market.  In addition, there is a 1 page summary report that is useful for prospecting in places like open houses. You can see a sample report here.

Why I Think This Product Is Good For Realtors:

I think the Altos products are a must have for any Realtor website.  Buyers who are utilizing the internet for property searches (84% of the buying population according to NAR) want to see what the local market conditions are.  They want to know what the trends are in a local market.  They want to know what the average price is right now.  Why not give them what they want?  It builds credibility that you have a pulse on the local housing scene and provides a reason for buyers to come back to your site.  And, with the Altos products, there is no updating necessary on your part.  You don’t have to do anything – the data automatically stays current.  I also see their products as an outstanding listing tool.  How powerful would it be to graphically show a seller what the current trend is for median and average list price in the area, what the percentage of properties with price decreases is, and what the percent of re-listed properties is?  I think Realtors armed with this information are having very different discussions with sellers about pricing than those who aren’t, and these Realtors are far more likely to secure and sell listings than those who do not use this data.

Learn More:

Altos Research also walks you through how to gain leads and secure listings utilizing their products.  Tomorrow (Wednesday March 4^th) at 11:00 am they are hosting a webinar discussing how to market utilizing statistics.  There is no cost or obligation to attend the webinar, but you do need to register here.  They will discuss practical ideas and applications in using their products to:

• Get buyers “off the fence”
• Set realistic seller expectations
• Prospect and lead generate
• Drip market and convert leads
• Build client trust

Definitely a great vendor for Realtors to check out!

Interested in what you are reading? To automatically receive these Tuesday Technology Tips in your email box, subscribe to these articles at the top right corner of this site (www.CoachellaValleyEscrow.com) in the box titled “Subscribe via Email”.

There are many implications of loans that are either “Assumptive,” or “Subject To.” Here is a general overview of some of the definitional differences between the two and how the differences affect the escrow process.

Let’s define Assumption Loans:

The term “assumption” is used when a buyer incurs personal liability for an existing deed of trust.  If the buyer were to default on their future mortgage payments, the seller would no longer have any responsibility as the buyer has “assumed” the loan.

When a buyer “assumes” a loan it is with the lender’s knowledge and approval. An assumption agreement is prepared by the existing lender of record and signed by the buyer as part of the escrow process. The seller may also be required to sign the assumption agreement and the terms may release the seller from responsibility. The lender usually requires a credit history from the buyer before approving the assumption and the payment of assumption fee(s). The loan will be brought current (if it is delinquent) and interest will be pro-rated through escrow and charged to the seller.

Let’s define Subject To Loans:

In contrast to an Assumption Loan, the term “taking subject to” is when the buyer incurs no liability to repay the loan. The loan stays in the seller’s name, but the buyer gets the deed and therefore controls the property.  Although the buyer makes the mortgage payments, the seller remains responsible for the loan.

When a buyer takes title to property “Subject To” the loan of record, the lender is not notified of the transaction or asked for their approval. The Lender has not approved the transfer of title; therefore the seller is not released from responsibility. In this case, the buyer is simply making the payments instead of the seller. The seller will be asked to provide escrow with their last payment record which will be used to calculate the exact principal balance at close of escrow. The lender may have the right to accelerate their due date or call the loan all due and payable when (and if) they receive notification of a transfer of ownership.

If you have additional questions about assumption vs. subject to loans, please don’t hesitate to one of our knowledgeable escrow officers here at CV Escrow.

Every Tuesday, here at the CV Escrow website will be posting Technology Tips designed to help you, the Realtor, grow your business, keep up to date on the latest technologies, and move you forward into the new era of Real Estate.

Are you looking for an international buyer for your listing which would make a fabulous second home?  Interested in getting your listings exposed to those potential foreign buyers?  Although sites like Realtor.com do a great job of reaching a national audience, wouldn’t it be better if your listing was appearing in the currency of the country that it is appearing in?  How about having your listing translated into the language of the country you are targeting?  Or maybe you just want to make sure your listings are appearing on sites that rank well with Google in foreign countries.  Although still fairly new and evolving, a growing area of online real estate marketing is in international listing websites and portals.  Some are specific to a country, while others are trying to develop a global listing database.  It is still too early to determine who the winner of this latest phase of real estate website positioning is going to be, but here are a few sites to watch, and check out for your current and future listings:

GlobalEdge:

Billing themselves as “The Business Portal for Overseas Properties” this site is based in the UK is “an award-winning trade portal designed to help real estate agents and property developers do business overseas”.  In order to participate on this site, you need to create an account.  They have several pricing models which range from free to £250/month.  For £15/month you can showcase 3 of your best listings.  In addition, this site has a property portal section which is an “independent analysis of the best overseas property portals” presented by region and by country.  This is an excellent resource if you are trying to target a specific country for your listing.

Enormo:

With the tagline “Every Property, Everywhere”, this site aims to be an international listing portal and translates your listing into approximately 30 languages for a moderate monthly fee.  Realtors can list their properties on the website, provided they have a website of their own.  Specific details and pricing information is available by filling out their interest/inquiry form here.

Property Showrooms:

Based in Spain and a respected site amongst the European investor community, this site allows agents to post unlimited listings for 75 EURO/month with a 3 month minimum sign up period.  Their site describes itself as:

Winner of CNBC Best Portal, frequently mentioned in the worlds press such as The Telegraph, The Wall Street Journal, and The South China Morning Post. As a result we appear at the top of Google, Yahoo and the other major search engines providing extensive background information, up to date news and services for both the public and industry alike.

Point2Homes:

A listings syndication service based in Canada, Point2Homes has a free 3 month trial membership where you can upload your listings and choose where they are distributed.  After 3 months, the price is $9.95/month.  Point2Homes is a great way to exposure your listings to many sources at once, including leading national, and international websites.  The process is manual and requires you to create an account and upload your listing data.

All Global Properties:

As of the time of this post, the ability to upload listings in the United States is not possible, but the team behind this site (the REA Group) has a lot of visibility and credibility, so it is one to watch.  Currently they feature listings in Australia, Belgium, Dubai, France, Germany, Hong Kong, Italy, Luxembourg, New Zealand, and the UK.  The site offers consumers advice on buying properties oversees and until they offer US listings, might be a good place for buyers agents to consider advertising their US Services to international buyers (via banner ads, for example).

Interested in what you are reading? To automatically receive these Tuesday Technology Tips in your email box, subscribe to these articles at the top right corner of this site (www.CoachellaValleyEscrow.com) in the box titled “Subscribe via Email”.

The term REO stands for Real Estate Owned properties.  These are properties that are owned by a bank or lender and are for sale to the public. These properties were reverted back to the bank after the homeowner was foreclosed upon.  If the home fails to sell at auction, the bank will put up the property up for sale through a Realtor much in the same way a homeowner lists their property for sale with a Realtor when selling their home.  The key difference with REO listings is that the bank (or lender) is the seller verses the homeowner as the seller in a traditional listing.

REO properties are a hot commodity right now as roughly half of the foreclosures going to auction are reverting to REOs. More and more people are seeing that they can get a great price on an REO property and still enjoy a buying process that is very similar to buying a home in the traditional fashion.  However, because the property is owned by the bank or lender, in an REO purchase transaction, there are a few differences in the escrow process from a traditional home purchase transaction.

REO listings offer viewings and inspections just like traditional home buying; the big difference is really in the often rock bottom price and the closing procedures. This is because banks are not in the business of owning Real Estate; their interest is to resell the property as quickly as possible to avoid further risk exposure.  As a result, REOs come with a very strict and tight escrow timeline. Most REOs have a 30 day closing, in some states it can be 45 days, and either way banks are not willing to be flexible.

There are a lot of REO properties available right now so if you’re ready to buy and looking for a deal, now is a great time to consider an REO purchase. Your Realtor can advise you on the opportunities and your CV Escrow officer can walk you through a detailed explanation of the REO escrow process.  To learn more about the REO buying process and its Escrow implications check out, Bargain Shopping at the Bank-An REO Purchase Overview.

Every Tuesday, here at the CV Escrow website will be posting Technology Tips designed to help you, the Realtor, grow your business, keep up to date on the latest technologies, and move you forward into the new era of Real Estate.

What is a Blog?

You aren’t the only one asking.  As I talk with Realtors about social media, this is one of the most common questions I get.   Blog is a contraction of web log.  In its simplest of descriptions, it is a type of website.  It is a type of website that allows for entries to be posted (like journal entries, or articles) that are commonly displayed in reverse-chronological order (By the way, you are reading a blog right now).  Blogs are a type of social media – this is because blogs allow for interaction with readers because they can post comments on articles which creates the opportunity for interaction with your blog audience.

Blog Terminology Basics:

Blog (noun):

A type of website that allows for entries to be posted (like journal entries, or articles) that are commonly displayed in reverse-chronological order.  For example, this article you are now reading is part of the CV Escrow Blog.  Blog entries remain indefinitely on the site and are always available to readers.  Often, blogs allow for the current article to be distributed to its readers via email in addition to always being available on the site.

Blog/Blogging (verb):

To maintain or add content to a blog.  Example:  I “blog” by writing the weekly technology tip series of articles that you are reading on the CV Escrow Blog.  Or, Stacey is blogging this week about the topic of Social Networking for Realtors.

Blogger (noun):

The person who generates the content for the site.  I, Stacey Harmon, am a blogger because I am writing this post.  Also, the escrow officers at CV Escrow are bloggers because they are generating posts about escrow topics like The Opening Package From Escrow – Why it Matters.

Post (noun):

This is the term most often used for a particular entry, or article that appears on the blog.  Posts typically will have a headline, an author, and the article.  For example, right now you are reading a post titled “What is a Blog & How Does it Relate to Real Estate?”, authored by me.  The most recent post appears at the top of the blog.  The post is also classified part of a particular category (in our case, some of our categories are “Escrow”, “Technology Tuesday Tips”, and “Events”).  These categories make it easy for you to find a post on a particular topic after some time has passed and the post is no longer at the top of the page.

Subscribe (verb):

One of the great features of blogs is that readers can subscribe to the site.  Many of you are reading this post in your email – that is because you are subscribed to our blog, meaning you don’t have to go to the CV Escrow blog to read the new posts.  Instead, they come straight to your inbox.  As you find other blogs on the web, they will also have the ability for you to put in your email address and have their posts come directly to you – keep an eye out for this.  It makes staying updated very convenient! (Sometimes the subscribe functionality is presented as “RSS” – this is an alternative way to subscribe to the site, and wording to look out for if you don’t see the word “subscribe” on the site)

Who Blogs?

These days it seems that everyone is blogging:  The Administration, Martha Stewart, Mark Cubin, The Desert Sun, and CV Escrow.  Blogging has grown exponentially over the past few years.  According to the New Media Lab 2008 Social Media White Paper, there are 184 million people worldwide that have started a blog, 346 million people read blogs, and 95% of the top 100 U.S. newspapers have reporter blogs.  In addition, there are roughly 1 million blog posts every day.

So, How Does Blogging Fit with Real Estate?

For Realtors, having a blog offers the opportunity to express and establish their expertise out on the internet (where we all know buyers are looking, and sellers are wanting their listings to be), rank well with Google (blogging is by definition VERY search engine friendly), reach a geographically wide audience, and/or target specific niches, all in a very financially affordable way.  Compared to print marketing, blogging is cheap (it can even be free!).  But, keep in mind that blogging takes time.  And, you should have an average, or above average, ability to write.  If you are not developing content that people want to read, you are not going to have an effective blog.  So, blogging may or may not be the right decision for your business.  However, even if you decide that a blog isn’t going to be a part of your current business plan, understanding what a blog is, and reading blogs, can be a very helpful in your education process and real estate career.  There are some outstanding blogs focused on the real estate industry.  I highlighted one last week.  And, for the curious, here are a few more.

Real Estate Blogs to Check Out:

Realtors:

• Miamism:  Maimi real estate blog by Enrique Garcia & Ines Hegedus-Garcia
• Phoenix Real Estate Guy:  Jay Thompson’s blog on all things Phoenix Real Estate
• First Time LA Home Buyer:  Great niche marketing blog by Los Angeles Realtor Nick Segal
• Active Rain:  Over 130,000 Realtors and affiliates belong to this site and blog about all things real estate.  This site is a great way to get started blogging (it is free, and easy - just sign up for an account). Update > Active Rain changed their policy this week…blogging at their site is still easy, but now there is a moderate monthly fee for new accounts if you want the public to see it.  I still think that it is an excellent way for Realtors to start blogging however.

Industry News:

• Inman News
• Bloodhound Blog
• Agent Genius

Another Perspective – Blogs In Plain English:

Also, Common Craft has done a great video illustrating the concept of blogs.  It isn’t real estate specific, but does a great job of showing how blogs came to be and the value that blogs provide.  It is well worth the 3 minute watch:

If you think that blogging might be for you, stay tuned. Future posts will discuss great ways to get started with blogging as well as vendors who can help you execute a full blogging strategy.

Interested in what you are reading? To automatically receive these Tuesday Technology Tips in your email box, subscribe to these articles at the top right corner of this site (www.CoachellaValleyEscrow.com) in the box titled “Subscribe via Email”.

Demystifying the escrow process for buyers is part of our goal here at CV Escrow.  One of the ways we accomplish this is by providing buyer’s a detailed opening package. This package contains a particular form called a Vesting Form that is integral to the escrow process and to the buyer’s future interest in the property. Simply put, it requires the buyer to outline how they will hold title to their new property.

The vesting of a title should be given special consideration because it specifies who is responsible for the costs, benefits, and transferability of a property. The value of real property is significant and with a little forethought, conflict can be avoided down the road with partners, creditors, spouses and/or heirs, as well as the Internal Revenue Service.

The most common forms of holding title include:

1. Sole Ownership

   1. As a single man or woman
   2. As a Married man or woman
   3. As a registered domestic partner, man or woman.

2. Co-ownership

   1. Community property, which is the presumed form for married couples. This entitles each party to equal parts of the property.
   2. Community property with rights of survivorship, which automatically transfers the property to the survivor in the face of a death.

3. Joint Tenancy

   1. This includes equal interests with rights of survivorship, but where the partners aren’t necessarily married.

4. Tenancy in Common

   1. In this form, the parties’ interests are broken up, and the costs and benefits are then divided as such.

It’s important to remember that the form of title that you choose has inheritance and/or tax implications. Your escrow officer at CV Escrow is more than happy to explain the differences between the various manners in which title can be held. However, it is beyond our scope to actually recommend what would be best for a buyer. For that, the buyer should consult an attorney, CPA or estate planner who is more familiar with the buyer’s specific situation.  Research and clear communication with one of these resources will help make the transaction a smooth success.

Every Tuesday, here at the CV Escrow website will be posting Technology Tips designed to help you, the Realtor, grow your business, keep up to date on the latest technologies, and move you forward into the new era of Real Estate.

If you are a Realtor that wants a leg up on the competition, you are off to a good start.  By reading this weekly technology tip series, you will be introduced to an array of tools that will help you be informed and stay a step ahead.  And, one of my goals with this series is to introduce you to other great websites that will help you continue your education about the industry and allow you to evolve with it.

This week, I’m bringing to your attention to AgentGenius.com – a online real estate industry magazine that discusses “what’s hot in technology, new and inventive real estate business models, the nature of the real estate industry, hot topics that impact consumers and so much more…”

The site has great contributors including a host of agents who are actually making money by applying social media techniques to their real estate business.  You will also find content related to real estate coaching, ethics, marketing, tech & new media, mortgage, and more.  The days of the Realtor magazine delivered via snail mail have evolved.  You can now get up to the minute articles and discussions about what is happening in the industry right now.  It is a great site!

And I’m not the only one who thinks so.  Inman News awarded them an Innovator Award for 2008.  So, AgentGenius.com is definitely a site to watch, one to bookmark, and if you are so inclined, one to subscribe to (just like you can or have subscribed to this one – why not have the information come straight to your email?! – if you have no idea how to do this, just send an email to stacey@staceyharmon.com and I’ll be happy to help you).

Happy reading!

Interested in what you are reading?  To automatically receive these Tuesday Technology Tips in your email box, subscribe to these articles at the top right corner of this site (CoachellaValleyEscrow.com) in the box titled “Subscribe via Email”.