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Having sold plenty of items in my life, I am aware that pointing out an item's faults, whether that item is a car, a house, a piece of furniture, etc, is a tried and true negotiating tool used for the purpose of diminishing the value in the eyes of a seller and ultimately bringing the asking price down.

However, there is a fine line between having a courteous and honest discussion about a property's condition and being so obnoxious as to back the seller into a corner to where they feel so "broken" that they must acquiesce against their will.

An example - several years ago when I was living in Phoenix I had my car for sale for $1,000.  A guy from the neighborhood made an appointment to see the car, came over, and proceeded to bad-mouth every single aspect of my car.  I had kept it impeccably maintained, and I knew it was a good car for the price.  Yet this person made me feel so bad, basically saying it was such a crappy car that I would be lucky to get $700 for it.  Then he said he wanted it for $700.  I reluctantly said "Okay"; inside, I was perplexed because he had just finished telling me in not-so-nice terms that my car was a P.O.S. He arranged to come by in the morning with the cash.

Later on that afternoon, as I was sitting on the porch, this other guy is walking down the street and sees my "For Sale" sign on the car.  He stops and talks to me, looks under the hood for a few minutes and says, "This car looks pretty good-no air conditioning for Arizona but I can deal with that, how much do you want for it?" I told him I was asking $1,000 but that I would take $950.  He says, "We've got a deal! I'll go get my money".  He was back within an hour, we did the paperwork and he took off in his new car.

Guess who's not a happy camper the next morning?  The mean guy pounding on my door with $700 asking where his car is.  I looked at him and said, "I'm sorry but someone offered me more.  Besides, with all of the 'problems' my car had, I'm surprised you still wanted it".

Now, I am expecting to get blasted for that story, because I did not keep my word with the first guy.  But to be honest, if the second guy had offered me $700 I would have sold it to him instead because he treated my little car and I with respect. 

There's a right way and a wrong way to negotiate.  I appreciate that the idea is to not exude any emotional attachment to an item. However, if your idea of negotiating is using a belittling tone and going over the top with disparaging comments about the item you are wanting to purchase, the only thing you will accomplish is to tick me off and make me not want to sell it to you.

When I was selling my business a few years ago, the best thing the selling agent said to me was, "I know you want x, but it's just not worth that much".   He said it in an honest, caring tone and he was right.  We came back down to reality, sold the business and never looked back.  If he would've started bashing the very business that we had worked so hard to create, I would've chosen any alternative to selling it to his buyers.  But then that's just me, I'm stubborn that way.

In December, as I was transfering information from my old (paper!) planner to my new one, I noticed something that I hadn't laid eyes on in a year: my list of goals for 2009.  My first thought was, "What's it doing here, in the very back page of my planner?"  Then I thought to myself that it would have been nice to have been able to go back to this periodically throughout the year to see how I was doing and to make sure none of the goals that I wanted to achieve got lost along the way.

So, it's February 2010 and I'm cleaning off my desk, and what do I find under one of my files? My goals for 2010.  The 3 loose pages were a heartbeat away from being crammed into the Bookshelf of Obsolete Files.

I'm revisiting the goals I set last month right now.   So far I'm actually doing a pretty good job of staying on track for the Personal, Financial and Business goals that I set for myself.  However, I do see that one goal has already fallen by the wayside - I am supposed to be studying my Japanese so that I can take the Japanese Proficiency Exam(Level 2) in November.  This is a goal that I had abandoned about 10 years ago, but I have a new desire to accomplish this for myself.

I am going to post these on the bulletin board that's right in front of my face so that they don't get lost again!!

Did you shop at a major retailer this holiday season? If so, this dialogue will probably ring a bell for you:

You are at the cash stand...

Sales associate: Good day.  Did you find everything all right?

You: Yes, I did, thank you.

Sales associate: May I have your phone number please?

You: (???) Uh...sure, its xxx.

Sales associate: And your e-mail address?

You: Why?

Sales associate: So that we can put you on our list to receive our latest updates and coupons.

You: No thanks!

Sales associate: All right. (Starts ringing items.  At this point sales associate points out small-purchase items at the cash stand in an effort to raise the items per transaction). Would you be interested in (random useless item)? It's only 99 cents.

You: No thank you.

Sales associate: Would you like to save x percent and earn x amount of points by opening our _____ perks/rewards/club card?

You: Is it a credit card?

Sales associate(if honest): Yes, it is a credit card; (if unscrupulous, or directed by an unscrupulous manager): It's just a store card.

You: A store card is a credit card, right?

Evasive Sales associate: It's an in-store rewards card(hands you the application and a pen).

Suddenly buying those tennis shoes or coffee mugs seems like more trouble than it was worth. When did shopping become so laborious and filled with potential financial pitfalls and land mines? In retailers' push to maximize profits they are doing a great job of alienating customers and creating lots of bad will.  Maximizing profits can be done hand-in-hand with creating and maintaining good will.  Small business owners usually have that down pat.

This all comes at a great point in time for me, however.  I am dedicated to getting my financial house in order this year.  I won't be swayed by impulse buys or "store rewards cards".  I'll think twice about shopping at an establishment that's less than ethical.  I'll make more of an effort to shop the small, individual businesses so that they can continue to thrive.  Maybe the sales are better at the mall.  But if you leave there with 5 extra $.99 tchotchkes, a new credit card with 29.99% interest and a bent side mirror did you really save that much?

Coupon Sherpa's blog post "9 Ways To Save On A Move", is a great reference for those of you who are planning to make a move soon.  I can especially relate to tip #8, which is to Dump Some Junk.

How many of us have items, boxes and trunks full of stuff and jettisoned furniture that sit in storage(either at home or-gasp-at a storage unit that must be paid for month-to-month)?  And upon moving, how many of us bring all of that unused stuff with us to our next location only to store it away again?

I personally know people who pay over 4 figures a month to keep stuff stored.  Stuff they never see or use.  I think that this is hands down the best tip in the article.  Sell it, give it away,invite it back into your home, whatever...but if you don't use it, you don't have to take it with you. It'll save you time and money in the end.

While you're on Wise Bread, check out their other excellent articles, you may want to bookmark the site as well.  It's a wealth of information for those looking to reevaluate their relationship with money, and save some money as well.

These days I am all about saving money.  I am constantly reading blogs aimed at saving and making do with less in our new economy, and in the past few months have learned a great deal.  Even a cheapskate like me can learn to be more frugal - amazing!

I wanted to share a great article I just read over at Mummy Deals regarding energy-saving tips for the home.  I've never been able to bring myself to plastic-wrap the windows, but by looking at the huge energy savings I believe I'll be heading over to my nearest hardware store soon to get started on this. 

Read more here: Save On Heating

Cheers!

Julie Rains over at Wise Bread has written an excellent article entitled, "What It Really Costs To Own A Home".  It's a great run-down of all(or most) of the costs of homeownership.  

Now, of course I'm all for investing in a home, but the real costs of ownership cannot be ignored, and need to be given serious consideration when buying a home. 

However, there's much to be said for the intangible benefits that draw people to buy a home in the first place.  The main point of the article is to make sure you set aside enough money every month so that you can eventually deal with the maintenance issues that are bound to pop up.

Enjoy!

http://www.wisebread.com/what-it-really-costs-to-own-a-home#comments

Selling Your Home On Your Own?

Many homeowners decide to try selling their home on their own.  You may be one of them.  Below are some tips to keep in mind when selling your own home.   However, if the time ever comes when you think you may need assistance, a full-time real estate professional can actually save you time and money in the following ways:

•  A real estate professional can hold your home open at any time in order to get as many buyers through your home as possible.
• A real estate professional can screen all inquiries and only show your home to QUALIFIED BUYERS.
• A real estate professional will take on all responsibilities of advertising and marketing, from placing ads and creating/distributing flyers to direct mailings/e-mailings and direct promotion to hundreds, if not thousands of other area agents via e-mail bulletins, brokers opens, etc.
• A real estate professional can do research to determine the correct market value of your home, and sell it within your time frame.
• A real estate professional knows the buying/selling process from beginning to end, can anticipate potential issues, and can head them off before they become real problems.
• A real estate professional can rely on extensive experience and knowledge of the market to negotiate effectively on your behalf.

If you wish to have a Free Market Evaluation of your home at no cost to you, please do not hesitate to e-mail me.  Remember, real estate professionals provide this as a service to you.  Don't choose a real estate professional based on the highest price suggested for your home; as the seller, it is you who ultimately decides at what price you wish to sell your home.  Instead, choose someone whom you feel has an effective marketing plan, and someone with whom you feel you can work closely together as a team for the next couple of months.

I just received an e-mail from Team Evergreen @ Evergreen Home Loans(www.teamevergreen.net) regarding changes to Fannie Mae coming December 11th.  There are some significant details regarding credit scores, ability to secure loans after a foreclosure, loans for duplexes and more.  These have not gone into effect yet and have not been confirmed. 

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Fannie Mae will be upgrading their automatic underwriting engine (DU) on Dec 11^th.  This doesn’t include FHA/VA or Freddie Mac, but usually they follow suit in a short amount of time.

Here’s is what has been shared with our underwriting department.  We will confirm these changes when they actually go in to effect.  The reason why we are notifying in advance is incase you have a client that falls in to one of these conditions, it might be wise to get them fully approved & under contract before the Dec 11^th date.

1)       620 minimum credit score required on all loans (Most banks have already implemented this rule)

2)       Talk is that FHA will be increasing to 660 (not yet, but expecting)

3)       Duplex purchases will require 20% down for Owner Occupied, 25% down for investment. (This is a significant change.  Keep in mind that FHA owner occupied will allow 3.5% down)

4)       Max Debt to Income (back ratio which includes the new house payment & existing debt) cannot be over 45%.  It’s not clear if they will allow exceptions with good compensating factors.

5)       2 months cash reserves on all owner occupied purchases, 6 months cash reserves on each home if purchasing a non-owner occupied home.

6)       Be careful of a person owning a home when they owe more than the value, or it’s close.  If a person is trying to keep the existing home as a rental and purchase a new “owner occupied” home that is in the same area or has a similar value, the new bank might be worried that the buyer plans to “Buy new home and Bail on the existing home after the new home closes”.  This is called “buy and bail” and the new bank is being told not to extend credit for the new purchase. 

7)       Any person who has filed a Chapter 13 or 7 Bankruptcy, executed a Foreclosure on a home or has a Deed in Lieu of Foreclosure registered, they will not be qualified to purchase another home for 4 years after discharge date.  After 4 years, they will need 10% down and higher credit scores.  We’ll keep you posted on the final outcome of this change.

Interest Rates remain good at 5.125% for 30 year fixed – Conv, FHA and VA.

Kimberly Terry and Cathy Pizzini

Certified Mortgage Planning Specialists

Team Evergreen

2265 First Ave SW

Seattle, WA  98134

206.774.7595

Fax 206.774.7509

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Thanks for stopping by my blog!

You can reach me at 206-595-5866, or e-mail me: LisaBosques@PNWRealty.com

Or visit my website:  www.98146online.com

I am an Associate Broker and Marketing Specialist with Prudential Northwest Realty Associates.   I specialize in homes located in the Burien/North Highline/West Seattle area, and I am here to serve all of your Real Estate needs. 
Your success is my goal!

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When I think of Realtor Safety, usually the things that come to mind have to do with protecting myself from the actions of strangers in various situations.

Self-defense is, in my opinion, a very necessary skill, particularly when you're in a field like Real Estate where you're working with the public and in many different geographic areas.

However, the one thing I never imagined I would have to do was protect myself from MYSELF. 

Let me explain: I fell down in a house today while out previewing at Broker's Opens and sprained my ankle.  I had a moment where my mind was more intently focused on the room I was heading to than on my footing.  I fell down one step and twisted my ankle.  I was on the ground a good 2-3 minutes, with the agent standing over me asking if she could help me up. All I wanted to do was lie there for a while. 

I did eventually pull myself and my humiliated ego off of the ground, and limped to my car.  The pain wasn't nearly as bad then as it is right now.  This injury is seriously going to put a cramp in my week.  If it were any more serious I'd have to go to the doctor, and then I'd really be mad at myself.

I am usually very careful when previewing homes.  Even so, something at some point is bound to catch you off guard.  I once caught my foot on a slightly higher than normal threshold, and threw out some back muscles pretty good.

From this experience I've been reminded of two things:

1. Pay complete attention to where you're walking inside and outside of a home.  There are many things to contend with such as slippery moss, super-secret basement stairwells with no lights and wobbly handrails, and my own klutzy self just to name a few.

2. Wear sensible shoes.

I'm off to elevate and ice my foot now. Be careful out there everyone!