Real Estate Appraisal Between The Lines: Recent Episodes
Brian C. Lee, Christian Kemp
Brian Lee is an acclaimed real estate appraiser, broker, instructor, and construction expert with over 25 years of experience. He received his bachelor’s degree in Finance and Real Estate from Indiana University. (GO Hoosiers!) After a disappointing attempt at being the next Jedi Master in the latest Star Wars movie, he discovered the "Force" was strong with him as a Real Estate appraiser and speaker.
Brian's knowledge and experience has taken him across the galaxy to train agents on topics including: real estate appraisal, agency, brokerage, business operations, contracts, and investing.
He loves helping agents provide value to their clients by adjusting agents’ perception and knowledge of valuation, CMA prep, and appraisers. When Brian isn’t yapping in front of an audience or assisting agents to achieve real estate mastery, he attempts to keep his wife happy and occasionally makes his kids laugh. (Jedi Mind Tricks don’t work on the strong-minded.)
Real Estate Appraisal Between the Lines is all about helping agents understand the pieces and parts of the valuation process, appreciate why appraisers do what they do (besides make agents mad), and by providing tips to write a better CMA. Tune in every week for a new suggestion and an occasion dig at those pesky valuation experts.
Brian currently resides in the Indianapolis area, where he rides his Harley and builds LEGOs. Make your day legendary!
Episode 133 - Agents Doing The Appraiser's Job
Desktop appraisals are becoming more prevalent and will only continue to grow in popularity in the lending world. How will this affect appraisers, agents, and your clients? Be ready to kick in some more work to help get that appraisal done, agents. The road ahead looks a little messy.
SHOW NOTES
- 03:00 – What is a desktop appraisal?
- 06:58 – How does the appraiser collect information about the property?
- 10:38 – What if the public information is not correct?
- 12:00 – Fannie Mae will require a floor plan sketch of the property showing interior walls with ingress/egress, interior doors, etc.
- 14:10 – What about liability concerns for agents and appraisers?
- 17:25 – Fannie Mae cares about their risk and their needs. They do NOT care about the borrower or any other party when accepting desktop reports.
- 21:05 – Ask your lenders how they are handling desktop appraisals so you can serve your buyer clients.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 132 - Tips to Prepare for the Slowdown
The slowdown has started. Some of you may have been through this before, but most have not. Are you prepared? You business relies on several pieces that many owners do not take into account. This episode talks about a few items that get missed when you are busy such as budgets, saving, and marketing. There is never a bad time to start any of these. Let’s get on them!
SHOW NOTES
- 00:50 – Is Brian in the Wizard of Oz?
- 02:15 – Economic cycles happen, and we can get through it.
- 03:50 – What have you done to prepare for the slowdown?
- 04:40 – Are you running your business like a business?
- 06:25 – Race to the bottom mentality. Don’t drop your rates at the beginning. Look at other avenues first.
- 08:20 – Weathering the storms requires budgeting, saving, and marketing.
- 10:00 – Need to have at least 6 months of business expenses and 6 months of personal expenses saved.
- 12:00 – Always be marketing to new clients. Don’t only market when are slow. Always be selling.
- 17:50 – Look for the opportunities as the market shifts.
- 19:20 – What are other appraisers and agents not doing?
- 20:35 – Join peer groups and hire a coach.
- 21:30 – Many agents and appraisers will drop out during the slowdown. Stick with it will benefit from a payoff.
SHOW LINKS
- Chris with CMP Appraisals - https://www.vabeachappraisals.com/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 131 - Times Are Changing: Does Down Payment and Concessions Affect Value?
The past two years have made selling real estate easy. Wait! That was easy, you ask? It was easy for listing agents to negotiate. Times are changing and negotiations are on their way back. Do you know how to navigate them? Make sure to ask the lender how they will address repairs, concessions, and down payment.
The industry is working its way back to normalcy, are you ready?
SHOW NOTES
- 01:10 – Mark Skapinetz podcast, Contributory Value.
- 02:30 – Question from an agent: does down payment alter the value and repairs on a property?
- 05:50 – Buckle up, because the past few years of negotiating has been easy. We are getting back to normal.
- 08:20 – Cash equivalency and how it can affect the valuation.
- 11:30 – Appraiser is required to review and analyze the purchase contract.
- 13:30 – Loan type could affect issues regarding repairs, and condition ratings can also be a problem.
- 16:10 – Talk to the lender about the loan type, will lender have additional requirements, and how they will deal with contract concessions.
SHOW LINKS
- Mark Skapinetz podcast - https://podcasts.apple.com/us/podcast/contributory-value-with-mark-skap-skapinetz/id1494985230
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 130 - Is YOUR Market Increasing?
Headlines and social media are showing all kinds of market changes. Good, bad, ugly – who knows? You do, if you perform your proper due diligence. Don’t quote national and state statistics that are wrong and based upon data that may not be indicative of your local markets. Pay attention to the actual pieces that affect your market and be the expert.
SHOW NOTES
- 01:40 – Is YOUR market increasing? Talk of inflation, recession, etc. is driving people crazy. What is actually happening?
- 04:05 – News article about Indiana being the best state to weather a real estate market recession.
- 05:55 – What data is being used in the statistics?
- 07:00 – Will agents still claim markets are increasing like they did back in 2006 and 2007? Are you looking at national, state, or local markets?
- 09:30 – Example of agent looking at all properties for a condo valuation.
- 11:45 – Watch the number of showings in a market.
- 12:30 – How many multiple offers are you receiving?
- 13:00 – Watch the list price to sale price ratio.
- 14:20 – What are employers doing in your market? Hiring, firing, or laying people off?
- 14:40 – What are builders doing with buyer incentives and commission to agents.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 129 - Be Honest. Do Not Be Disingenuous
We learned in elementary school that honesty is the best policy. It applies to the real estate world too. Work through solutions by being honest with appraisers, lenders, and agents to close the transaction. That transparency may help the other parties find a way to help work out issues. Hiding information, acting in a deceitful manner, or attempting to trick someone will not end well for your client.
SHOW NOTES
- 02:30 – CMA done for listing should be the same as a CMA for the purchase.
- 03:55 – Listing at one price, contract price is higher. Listing agent changes list price to match contract price and pends the property. Very deceptive.
- 07:35 – Describe your definition of an “update” to a property.
- 09:00 – Real estate professionals can collaborate in some way. Deceitful tactics are not respectful to the other professionals and the real estate community.
- 11:20 – Work together. We are each a piece of a puzzle that is being put together.
- 13:35 – When we don’t work together, we look very poor and unprofessional to the public.
SHOW LINKS
- Stripes, “Lighten up, Francis.” - https://www.youtube.com/watch?v=iN-aXzpQUdw
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 128 - Who is the Lender Looking Out For?
Knowing how to protect your client and your business is critical to future success. Learn the steps and the processes the lender uses to underwrite the appraisal for your client, so your client can make informed decisions.
Note: I can’t believe how many times I used the phrase, “Throw them under the bus.” Jeez!! Ha!! -Brian
SHOW NOTES
- 03:00 – Desktop appraisals, hybrid reports, and waivers.
- 06:20 – Lenders are making decisions based upon their risk analysis. They are not looking out for the borrower.
- 08:10 – An FHA appraisal report stays with a property for 180 as of July 2022.
- 11:35 – Underwriting rules that can affect the appraisal report.
- 14:55 – AMC, Appraisal Management Company.
- 17:25 – How do you handle this situation with your clients?
- 19:45 – Appraisers work with your lenders to poise your business for success and avoid liability.
- 21:10 – We are all in business and want to make money. Think about what banks are considering when they make money.
SHOW LINKS
- Mark Skapinetz - https://atlantapropertyappraiser.com/mark-skapinetz/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 127 - Change Your Mind
Brian is back! What frustrates you may just be yourself. Open yourself to hearing other opinions and change your mind about your ingrained attitudes. The only way to effect a change is to have an understanding of the entire issue.
Whether it be personal, business, appraisal, social issues, or anything, the only person you can change is yourself. Do that and find more happiness and success.
SHOW NOTES
- 00:30 – I’m back.
- 01:00 – THANK YOU to everyone that reached out and supported me.
- 02:15 – The podcast has focused on agents. Will continue to do so, but will give a voice to appraisers, lenders, and anyone else out there to be part of the “conversation”.
- 04:15 – Change your mind. Song by Sister Hazel.
- 08:15 – Open yourself up to other viewpoints.
- 09:35 – Agents: appraisers have a viewpoint. Don’t be mad, bitter, and ignorant.
- 11:05 – Appraisers: so many changes can bring you down but change your mind and be open to what is happening.
- 13:40 – Lenders: there is more than the underwriting overlays and the “black and white” book.
- 14:30 – Open your way of thinking to someone else.
- 15:15 – If you want to be a better agent, appraiser, businessperson, spouse, etc. listen to what others have to say.
SHOW LINKS
- “Change Your Mind” Sister Hazel - https://www.youtube.com/watch?v=Y944YxuE1OU
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 126 - Personal Responsibility
Personal responsibility. We owe it to ourselves and those that we interact with. Two “events” happened recently, which has affected Brian and sharing can be cathartic and help with healing. How does this translate to you and your life, both personally and professionally.
SHOW NOTES
- 02:45 – Accusation of racism.
- 14:00 – Out of Order podcast is no longer happening.
- 17:40 – Translating Brian’s recent issues can help agents in transactions and in their personal life.
- 19:05 – What will happen with the Between the Lines podcast?
- 21:15 – Thank you for your loyalty!
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 125 - Racial Bias in Appraisals with Guest Marcus Fillyaw
Talking about a difficult topic is always tough. Racism and appraisal is certainly one of those topics. While it is tough to dicuss, and open, honest dialogue must take place if there is to be any solutions or understanding.
In this episode, Brian invites Marcus Fillyaw to discuss racial bias and the appraisal industry. The start made both a little nervous, but in the end, they realized the differences really aren’t that different. It is about understanding all around and not being afraid to have the talk.
SHOW NOTES
- 04:10 – Welcome to Marcus Fillyaw.
- 08:30 – What is an appraisal to a real estate agent?
- 09:45 – How does an agent handle a CMA? What pushback do you get from homeowners?
- 15:00 – What do the terms racist, racism, and biased mean?
- 19:50 – News and media sources suck and put their agenda and slant to sell their business.
- 21:00 – What are your proclivities and thoughts about different classes of individuals?
- 25:45 – Comment about Kamau Bell.
- 32:30 – In high profile cases of race and appraisal, where is the truth? Is there something else that affected the values?
- 42:30 – An appraisal is an opinion of value and there is almost always a range of value between practitioners.
- 47:35 – Appraisers don’t look for black communities to make comparisons.
- 54:35 – What is driving the increases in claims of racism in appraisal?
- 59:40 – People are more exposed to the stories so they might think the problems are happening to them.
- 1:01:35 – Appraisers commonly make people mad because we don’t get the value number the owner wants. However, it is not based upon race.
- 1:03:10 – Appraisers report the market. They do not make the market. There is not a systemic issue in the appraisal industry.
- 1:05:40 – The bigger issue is more about the incompetence of one of the appraisers in the value disparities.
- 1:09:10 – Education is one way to change the narrative and help everyone understand what is happening.
- 1:10:35 – Agents can help educate the public by teaching and helping their clients understand the process.
- 1:16:45 – Challenge yourself to seek out the entirety of any story. Don’t just read the headlines or listen to one news source.
- 1:18:50 – Last words of wisdom from Marcus.
SHOW LINKS
- Marcus Fillyaw - https://www.remax.com/real-estate-agents/marcus-fillyaw-greenwood-in/102124094
- Kamau Bell - https://www.cc.com/video/rdms0e/the-daily-show-with-trevor-noah-w-kamau-bell-starting-uncomfortable-discussions-about-racism-on-united-shades-of-america
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 124 - B Reaps What He Sows with Lexi and Jackson
What better way to keep your legacy than to invite your kids on your podcast show. Be careful what you wish for though, as Brian finds out his kids don’t always go along with his thoughts and sometimes keep him in check.
SHOW NOTES
- 01:35 – Welcome to Lexi and Jackson.
- 02:55 – Kids introduce themselves.
- 04:10 – What is the favorite thing that daddy cooks?
- 05:50 – What does daddy do for a living?
- 06:35 – Is daddy smart? Smarter than Cate?
- 07:20 – What do you want to be when you grow up?
- 08:30 – What is your favorite subject in school?
- 09:45 – How cool is Star Wars?
- 11:45 – Who is B’s favorite child?
- 12:30 – Is it hard to do podcasts?
- 14:00 – How would Lexi and Jackson suggest picking a comparable?
- 15:10 – How much is a garage worth?
- 16:55 – To help agents and appraisers get along, how do you get along with your brother and sister?
- 18:55 – Does B learn anything when he teaches?
- 19:35 – Does B like what he does?
- 20:18 – Who makes the best farts?
- 21:15 – Am I happy being me?
- 21:45 – Have any of your students been mean to me?
- 22:26 – What do you like better? LEGOS, sleeping, or eating?
- 23:20 – Parting words of wisdom.
SHOW LINKS
- Ricotta vs. Cottage Cheese in Lasagna – https://greatist.com/eat/ricotta-cheese-and-cottage-cheese-what-is-the-difference
- Baby Yoda – https://starwars.fandom.com/wiki/Grogu
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 123 - Do you Claim to be a Wise Person?
Wisdom comes from the knowledge that you don’t know everything and that there is always more to learn. Even if you are at the top of your game, there something else to consider. Are you truly a wise agent?
SHOW NOTES
- 05:25 – Even a nuclear scientist doesn’t know everything.
- 06:50 – Communication is a huge part of wisdom.
- 07:45 – If you truly know about a subject, you must be able to explain what it is.
- 08:50 – You must also be open to communication and conversations from others.
- 12:10 – Education is key to gaining wisdom. You can always learn more. Never stop learning. Fine tune your knowledge.
- 13:30 – Take the opportunity to education someone else. Helps you and helps the other person.
- 15:15 – Enjoy a warm or cold beverage with someone else
- 15:45 – Help me, help you.
- 15:55 – Chinese philosopher Confucius saying. Be like Confucius.
SHOW LINKS
- Kansas, “Carry on Wayward Son” - https://www.youtube.com/watch?v=2X_2IdybTV0
- Confucius - https://en.wikipedia.org/wiki/Confucius
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 122 - Why You Should Hire an Appraiser
Plain and simple: Liability is increasing for agents on many levels. Hiring an expert has always been the best practice, so consider hiring a competent appraiser for your next
SHOW NOTES
- 01:40 – Hiring an appraiser is “worth it.”
- 03:20 – You don’t need to hire an appraiser for every single property, but if something causes concern, it would be a good idea to hire a professional.
- 05:20 – Just like you would hire an expert for taxes, legal issues, and title concerns, you should hire an appraiser to mitigate your liability.
- 07:15 – Choose your appraiser carefully. Not every appraiser is suited for your needs.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 121 - My Way is the Right Way! Featuring Cate Waggoner-Lee
There is more than one way to skin a cate (what a gross analogy). Your way might work, but guess what, mine probably does too. Don’t get so ingrained in your position that you miss another perspective. Adjustments, comparables, and value are subjective, so don’t get mad when someone thinks something different than you. It is okay to agree to disagree.
SHOW NOTES
- 03:10 – Change your attitude. Cate is the softer side of Brian.
- 04:10 – Not just one value on a property.
- 05:45 – Appraisers and agents tend to agree there is a range of value.
- 07:10 – There are many properties that are comparables. Your comparables are not the only one.
- 08:15 – If you think your comparables are good comparables, explain why you think they are the most comparable.
- 10:25 – How do you present your information to an appraiser or to an agent? “I’m trying to help you out.”
- 12:00 – More than one way to come up with an adjustment.
- 13:35 – Grammar police correcting Brian.
- 15:25 – Is there ever a time when a lender will “require” one way to come up with an adjustment?
- 17:45 – Lenders, this message is for you too: there is more than one way to review and underwrite an appraisal report.
- 19:45 – Just because I’m right, doesn’t mean you are wrong.
SHOW LINKS
- Origin of “More than one way to skin a cat” - https://grammarist.com/phrase/more-than-one-way-to-skin-a-cat/#:~:text=There's%20more%20than%20one%20way%20to%20skin%20a%20cat%20means,Yankee%20Life%20by%20Seba%20Smith.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 120 - Should an Appraiser be a Licensed Agent?
Being agent could give the appraiser a much needed perspective that would be beneficial in the valuation of property. Seeing what buyers and sellers are doing in the market can be invaluable to providing credibility to an appraisal report. You don’t have to sell homes to get a perspective that will set you apart from other introverted appraisers that are stuck in their own bubble.
SHOW NOTES
- 04:05 – Should an appraiser be a licensed agent? Yes, but hear me out.
- 05:10 – The appraiser’s job is to mimic what a buyer would do in the market.
- 07:10 – An appraiser doesn’t have to sell real estate to have their hand on the pulse of the market.
- 08:15 – Being an agent can provide a broader picture. The lens is more focused to be a better appraiser.
- 09:05- Prior to 1989 there was no such thing as an appraisal license. Real estate brokers were the appraisers.
- 11:25 – Big benefit to having a real estate license.
- 13:25 – Pointing the finger to agents too…take an appraisal class.
SHOW LINKS
- Real Estate Class – indianarealestateinstitute.com
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 119 - Condos: The Silent Change for 2022
The tragic events of the Florida condo complex in 2021set the stage for some big changes from Fannie Mae regarding requirements for condominium properties. If you are an agent, lender, or appraiser, you should start asking questions and recognize the liability the changes will have to your practice and transactions.
SHOW NOTES
- 03:07 – June 2021 tragic event with the condo collapse started the changes.
- 04:35 – Concerns with deferred maintenance, structural problems, and property damage.
- 06:10 – Fannie Mae will not buy loans if the property has significant issues.
- 07:32 – If there are defects in the community, it could affect a single unit owner.
- 08:35 – Special assessments by condo management.
- 10:50 – Form 1076 (in the show links below) is an 8-page disclosure document.
- 12:05 – Disclosure and legal responsibilities are now more prevalent for owners and agents.
SHOW LINKS
- Fannie Mae Disclosure Form - https://singlefamily.fanniemae.com/media/15656/display
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 118 - Adjustment Guidelines
A quick note on things to consider when adjusting your comparables. The relationship between them and the sale price may be an indicator of comparability.
SHOW NOTES
- 02:30 – Old adjustment guidelines.
- 05:10 – The guidelines do have some relevancy but are not critical to maintain.
- 06:30 – Why is this important?
- 08:00 – Explain why you made the adjustment.
- 09:30 – If you are exceeding the old guidelines, maybe the property is not very comparable.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 117 - Why Doesn't The Appraiser Use My Comparables?
This question is asked almost as often as why do appraisals come in low. The best question, why is your comparable worthy of use?
SHOW NOTES
- 02:40 – The agent can suggest potential comparables.
- 03:27 – Appraiser: “I can’t use the comparable.”
- 05:15 – Example of when an appraiser might use your comparable.
- 06:30 – Explain why the appraiser should use your comparable.
- 09:10 – Have you given any compelling reason to use your comparable?
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 116 - Why Can't We All Just Get Along?
The world is an angry place. Take the time to see another perspective and realize there is more than one part of the conversation.
SHOW NOTES
- 03:10 – It’s tough to think of the other perspective.
- 06:10 – Will Smith and Chris Rock situation.
- 07:15 – Agents have disgust for each other.
- 08:45 – Act like a professional.
- 09:55 – Take a step back and think about the other side.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 115 - Where is the Industry Heading? Featuring Steve Crellin
Steve Crelling with Yawkey Way Appraisals joins the show again to impart his “wisdom” on various changes in the appraisal industry. We hear his take on where things are heading in our community.
SHOW NOTES
- 01:55 – Hello Steve.
- 04:00 – Lender policies are dictating many processes.
- 07:00 – Changes coming down the pike.
- 12:25 – The failed execution of Fannie Mae for the ANSI standard.
- 15:00 – Desktop appraisals.
- 19:25 – How will desktops affect bias in appraisal?
- 23:00 – How does an appraiser get sent to appraisal board?
- 25:20 – Will these changes push appraisers out of the industry?
- 27:50 – These changes will affect agents.
- 32:30 – Where is the Brian and Steve “thing” going?
SHOW LINKS
- Steve Crellin - https://www.facebook.com/YawkeyWayAppraisals
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 114 - ANSI Standards are HERE!
ANSI standards define how residential property should be measured for square footage. Fannie Mae has adopted this standard and it WILL affect agents. Are you ready?
SHOW NOTES
- 02:15 – What is ANSI? Sets a standard to measure property. This will open more liability to agents.
- 04:15 – Steve Crellin gave a presentation and reported about agents being mad about these changes.
- 05:20 – This is how to measure property. It is NOT how to value property.
- 07:55 – Red flags to watch for on properties. Separate living space.
- 10:00 – Measurements are taken from an exterior perspective. Rounding is made to the nearest inch or tenth of a foot.
- 12:00 – Classroom questions: sunrooms and bay windows.
SHOW LINKS
- ANSI Standards - https://www.e-rallc.com/ANSIstandards
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 113 - Teaching an Old Dog New Tricks
Learning new things can be difficult. Especially for Brian when his wife, Cate, joins the show. He will never learn. The real estate industry changes and we all must learn to accept those changes. Old habits do die hard, but to be successful, you must change with it...even if you must do it while kicking and screaming.
SHOW NOTES
- 01:14 – Welcome back Cate.
- 03:00 – Teach an old dog new tricks, but Cate is not a dog or old. Steve is the old dog.
- 07:05 – The real estate world is changing. Technology, lending, etc. all changes.
- 08:40 – Appraisal adjustments need to be updated.
- 11:30 – Cate’s Side Note Tangent, and she is savage.
- 13:45 – Has there been a shift in values for in-law quarters and at-home entertainment.
- 15:45 – Baby boomers are changing some of the markets.
- 16:15 – Analyzing property needs to change.
- 18:00 – Challenge how you work. Don’t be rigid and unwilling to learn something new.
SHOW LINKS
- AOL “You’ve Got Mail” - https://www.youtube.com/watch?v=dudJjUU9Nhs
- Steve Rupp – https://www.realtor.com/realestateagents/56ca82a2bb954c01006d2760
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 112 - Your House is Weird
Do you remember the term “functional obsolescence” from your real estate classes? Probably not. However, I’m confident you have seen a “weird” house. Something about the house just made it look off or not function well. What did you do about it? Ignoring it is not the answer.
SHOW NOTES
- 02:03 – Functional obsolescence. What does that mean?
- 03:38 – Example: four-bedroom home with one bath.
- 06:00 – What does the market expect the home to include?
- 07:49 – Something on the exterior of the home could be “weird” too.
- 10:00 – Make market adjustments when the market sees the element as atypical.
BETWEEN THE LINES LINKS
brian@brianclee.com
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brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 111 - MLS Sheets: Accuracy Matters
Agent’s listing sheets can contain vital information to the other real estate professionals. Be the professional and communicate what your property has and doesn’t have. Help appraisers and other agents understand your listing. It might be a comparable down the road and hurt your next sale if you get it wrong.
SHOW NOTES
- 02:20 – Brian smacks agents back to earth after telling a story about his daughter.
- 04:58 – Assessor/public data are wrong a lot and you are responsible for checking it.
- 06:57 – Type in photo captions. The photos are nice but add comments to the photos.
- 09:05 – Closing out your listings: add comments about circumstances of the sale.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 110 - A Word or Three About Basements
Listener asked a question about basements. Brian recommends a deeper dive into the components of a basement including its size, amount of finished space, and the level of finish. They all matter to buyers.
SHOW NOTES
- 03:24 – The details of a basement should matter.
- 04:36 – Full vs. partial basement regarding its size.
- 05:56 – Full vs. partial finish regarding finished areas and unfinished areas in the basement.
- 08:09 – What is the level of finish in the basement?
- 12:14 – Other things to consider: walk-out feature, egress windows, etc..
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 109 - Costs Does Not Necessarily Equal Value
How many times have you heard that? Too many for me. What does that mean in today’s market with low supply, high demand, rising cost of materials, and lack of skilled labor. Brian thinks cost might equal value in this crazy market.
SHOW NOTES
- 01:10 – Cost does not necessarily equal value.
- 02:25 – Supply chain issues and lack of skilled workers have increased costs.
- 02:50 – Supply and demand between builders and buyers.
- 04:25 – Buyers are “screaming” for homes so cost might equal value due to the high demand.
- 04:45 – Remodeling your home.
- 06:00 – Market increases and demand for homes might make remodeling a great idea.
- 06:30 – Brian considered a purchase and tells his story.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 108 - ADUs and Second Residences
What is an ADU and are they different than a second residence?
SHOW NOTES
- 01:15 – ADU, Additional Dwelling Unit.
- 02:10 – Two dwelling spaces.
- 04:43 – Separate address and metered utilities.
- 05:05 – Less defined. Ask what is common in the market.
- 06:50 – Agents, ask questions when red flags come up.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
SHOW NOTES
- 01:58 – March 19, 2022 changes to appraisal reports.
- 03:15 – Beginning of changes to come, but lenders get to choose.
- 05:30 – Agents how does it affect you.
- 06:25 – What do these appraisal report types mean to agents?
- 08:42 – Bi-Furcated appraisal reports.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 107 - Desktops, Drivebys, and Bi-Furcated Appraisal, Oh My!
These are coming down the pike. Better get used to them and the wake that follows.
SHOW NOTES
- 01:58 – March 19, 2022 changes to appraisal reports.
- 03:15 – Beginning of changes to come, but lenders get to choose.
- 05:30 – Agents how does it affect you.
- 06:25 – What do these appraisal report types mean to agents?
- 08:42 – Bi-Furcated appraisal reports.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 106 - Agents and Appraisers CAN Work Together
Despite some opinions (not facts) and individual attitudes, agents and appraisers truly can work together in the process. There are a few rules and some things to consider, but it is possible. When both the appraiser and agent act professionally and in unison, it is possible to work together and maybe even sing kumbaya. Okay, maybe that is a stretch, but both sides put down your negative attitudes and find ways to help each other.
SHOW NOTES
- 01:35 – B is awesome!
- 02:50 – Agents and appraisers can work together, but there are “rules” on when and how we talk to each other.
- 04:46 – When the report is turned in to the client, the appraiser cannot talk to the agent and work with them.
- 05:25 – Fiduciary responsibilities for agents are the same for appraisers with their client (usually the lender.)
- 08:05 – Look for opportunities to learn and get information the appraiser may consider in the valuation process. Maybe that agent can educate the appraiser.
- 10:50 – Send the appraiser information: adjusted comparables, list of updates, multiple offers, and explain the “situation” with your property.
- 12:00 – Sometimes the appraiser calls the agent. This is a good thing! Use this time to your benefit.
- 14:20 – Yelling and arguing will get you nowhere. “You get more flies with honey than with vinegar.”
- 15:00 – Tidewater for VA loans.
- 16:00 – If you haven’t tried to work with the appraiser before the appraisal report is complete. What can you do?
- 17:00 – You will need factual, definitive, tangible proof the appraisal report is wrong. Comparables and adjustments are NOT facts.
- 18:05 – Agents, many appraisers are willing to talk to you. Appraisers, many agents are nice too.
- 18:35 – Appraisers do not have to talk to you, but good appraisers will.
SHOW LINKS
- Brian Ferling, appraiser - https://licensedirect.com/brian-w-ferling/1587537
- Tidewater - https://www.benefits.com/va-loans/tidewater-initiative
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 105 - How To Become An Appraiser
Been thinking about a career change. Maybe becoming a real estate appraiser is your future path. Before you make that jump though, be sure you know what you are getting into. The profession is worth it, but the road to get there can be painful.
SHOW NOTES
- 02:50 – Should you become an appraiser? Yes!
- 03:55 – Appraisal license types.
- 05:35 – Process to get the license.
- 09:00 – Trainee limits are based upon their mentor.
- 10:00 – You will need a mentor and that is usually the most difficult part in becoming an appraiser.
- 14:15 – When is a good time to start looking for a mentor?
- 15:25 – Complete the 2+ years of hell with very low wages, and you are a fully licensed appraiser.
- 16:25 – I do recommend it. The hard work will pay off, and it does pay off.
- 18:05 – Appraisal world is changing with new regulations.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 104 - Measuring Using the ANSI Standard
Fannie Mae and Freddie Mac dropped the bomb by stating that all mortgages they buy with an appraisal date that has an effective date of April 1, 2022 or after, must be ANSI compliant.
In this episode, Brian talks about things for agents to take note. Avoid liability and other issues by watching for elements in a home that may change the amount of square footage in a property.
SHOW NOTES
- 01:35 – Overview of how to measure property.
- 03:25 – Agents, you have legal liability.
- 04:40 – Square footage is measuring from the exterior of the property.
- 06:10 – Split up the levels of the home. Main, upper, and lower, and below grade.
- 08:30 – How staircases are included in the square footage.
- 10:04 – Below grade square footage issues.
- 11:35 – Sunrooms and finished garages standards.
- 12:00 – None of this has nothing to do with value. The standard does not deal with the valuation of the space. It deals with the process to measure the space.
- 13:45 – Even though this does not affect agents directly, agents need to get ahead of this issue.
- 14:30 – ANSI class coming soon in the Spring 2022.
SHOW LINKS
- ANSI - https://www.ansi.org/
- Measurement Class - https://www.indianarealestateinstitute.com/courses
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 103 - ANSI Standard Goes Into Effect 04.01.2022
Dun, dun, dun!!! Fannie and Freddie have finally spoken and have set April 1, 2022 as the date for all appraisers to use ANSI to measure properties. This will have wide ranging changes so you better get ready.
SHOW NOTES
- 01:15 – Fannie Mae and Freddie Mac will require all appraisals with an effective date of April 1, 2022, or after to comply with ANSI measurement standards.
- 03:20 – Two standards that exist.
- 04:10 – Consistency is very important across the industry.
- 06:45 – This is not a requirement for agents, but this change will trickle down to agents. Pay attention!
- 09:00 – Public demands this. Agents should be very aware of this and handle it properly.
SHOW LINKS
- Fannie Mae Guidance - https://singlefamily.fanniemae.com/media/30266/display
- Real Estate Agent Liability - https://www.findlaw.com/realestate/selling-your-home/wrong-square-footage-on-mls.html
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 102 - My Predictions for 2022
Not that you cared, but Brian thought he would give some predictions for 2022 on the real estate market, appraisals, and a few other very important subjects.
SHOW NOTES
- 01:20 – What does your crystal ball say?
- 02:30 – Real estate industry predictions: will remain mostly the same.
- 06:55 – Elephant in the room: foreclosures and evictions.
- 07:50 – Appraisal predictions: values will continue an upward trend. Big regulatory changes.
- 09:40 – More appraisal requirements, desktop appraisals, appraisal reviews, and questions.
- 11:15 – Appraisal bias will not go away and will focus on the industry.
- 12:10 – Pop culture predictions.
- 15:40 – Personal predictions.
- 18:15 – Steve and Brian are working on our new format.
SHOW LINKS
- Movies coming out in 2022 – https://www.movieinsider.com/movies/2022
- Obi-Wan Kenobi - https://disneyplusoriginals.disney.com/show/obi-wan-kenobi
- Indiana Real Estate Institute – indianarealestateinstitute.com
- A-Ha! Real Estate Exam Prep – ahareep.com
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 101 - End of Year Wisdom
Changing the typical format to give my take on 2021 and how to have a better 2022. Remember, breathe in, breathe out.
SHOW NOTES
- 02:45 – Media and news are biased toward themselves.
- 04:38 – So much anger and hatred.
- 05:27 – Just be kind.
- 06:20 – Not much we can do to make a change.
- 07:10 – Mr. Miyagi, Breathe in the nose and out the mouth.
- 08:15 – Hear both sides of the discussion.
- 09:45 – Even in the real estate industry be patient, kind, and understanding.
- 11:40 – Leave the year better than you found it.
SHOW LINKS
- Just Be Kind - https://www.facebook.com/Just-Be-Kind-Its-Easy-1633257020274602/
- Miyagi, “Breathe” - https://www.youtube.com/watch?v=XemAlj9_qKE
- A-Ha Real Estate Exam Prep – ahareep.com
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 100 - 100th Episode Celebration
Celebrating 100 episodes and sharing a quick tip on how to “work” with appraisers in these busy times. Don’t be too mad about the joke at the end.
SHOW NOTES
- 02:30 – How to handle appraisal issues in getting them back on time and are not communicating.
- 04:30 – Appraisers are very busy with huge increases in requests.
- 05:25 – There isn’t much you can do to get things done quicker.
- 08:50 – Push on the lender for them to push the appraiser to get it done.
- 09:20 – Appraisers, stick by your commitments.
- 11:25 – Mariah Carey joke.
SHOW LINKS
- Mariah Carey “All I Want for Christmas Is You” - https://www.youtube.com/watch?v=aAkMkVFwAoo
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 099 - Successfully Challenge an Appraisal
It’s the holidays and we wanted to give you a gift. One of the most commonly asked questions is how to challenge an appraisal. In this episode, Brian talks about the do’s and don’ts to working with an appraiser. Listen closely because Santa is checking his list.
SHOW NOTES
- 01:35 – It’s the gift giving season. Brian has something for you.
- 02:00 – How to successfully challenge an appraisal report.
- 03:00 – To effectively make a change and have input, get information before they finish their appraisal report.
- 04:20 – Appraisers can talk to agents about the appraisal process. Appraisers are collecting data. Communicate with each other. It’s okay!
- 06:40 – No rule that says the appraiser must talk to you.
- 07:14 – Once appraisal report has been written, the appraiser is very limited in what they can talk to you about.
- 08:22 – Communication can only happen through the lender and that is very difficult to accomplish. Don’t try to change the report after the fact.
- 09:30 – If you want to try to change the report after it has been written, you will need facts to make a change.
- 11:20 – Brian’s gift: communicate with the appraiser BEFORE they write the appraisal report.
- 13:02 – Appraisers: Be nice, accept the agent’s information, and look at it.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 098 - What is the Quality of Your Condition
Quality and condition are two elements in valuation that quite often get mixed, combined and confused. In this episode, Brian explains the difference between these two important elements and how to better describe them.
SHOW NOTES
- 02:30 – Quality and condition are important to consider.
- 02:57 – Condition is what most people think about when looking at a property.
- 03:55 – Quality has nothing to do with condition. It are the elements made from.
- 05:25 – Stop making the wrong argument.
- 06:20 – What has been updated and in what quality?
- 06:52 – UAD ratings on appraisal reports.
- 08:07 – Quality and Condition ratings and definitions.
- 10:09 – Pay attention to the difference between condition and quality.
SHOW LINKS
- Quality vs. Condition – https://www.appraisalbuzz.com/quality-vs-condition/
- UAD Ratings – http://www.bradfordsoftware.com/uad/UAD_Glossary.pdf
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 097 - The Value of a Bedroom
Not only is the debate of what constitutes a bedroom a source of frustration, the value of a bedroom can also be hotly contested. Brian gives his opinion of the value of a bedroom and elements to consider that might change your outlook on the subject.
SHOW NOTES
- 02:05 – These are Brian’s opinions based upon data and experience. Bedrooms rarely add value.
- 03:10 – Things to consider when valuing a bedroom: square footage, other rooms, and functionality of the space.
- 07:40 – Avoid this issue altogether, use the same bedroom and layout for comparables unless the differences affect other elements.
- 09:05 – On rare occasions, an adjustment is needed. Paired analysis might show the needed adjustment. However, an adjustment should never be the automatic default.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 096 - What I'm Thankful For
Happy Thanksgiving! What are you thankful for? Brian gives thanks to all of the people that stand by him and help him be a better man.
SHOW NOTES
- Thank you to my family, my friends, my listeners, and even my laser measuring device. I appreciate you! Have a legendary Thanksgiving!
SHOW LINKS
- Homer Simpson - https://www.youtube.com/watch?v=E2dmfnSarDI
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 095 - Credible Equals Worthy of Belief
The estimated value in an appraisal report is only one component. It may be the most important one to you, but that value doesn’t mean anything unless the value is credible. That is to say it is worthy of belief. The next time you encounter a “low” appraisal, you might want to consider if the value you hoped to attain is believable. Supporting your value is even more important that writing down a number. Brian talks about the value of credibility in an appraisal.
SHOW NOTES
- 03:00 – Appraisals can stir up emotions.
- 04:38 – Brian has been affected by an appraisal that didn’t come in at what he thought it should.
- 06:35 – Credibility is huge in writing a report. Appraisers do not like coming in low on an appraisal.
- 08:18 – Credibility equals worthy of belief.
- 09:45 – Lender can ask to change or even throw out an appraisal because it is not a believable report.
SHOW LINKS
- CMP Appraisals - https://www.cmpappraisal.com/about-our-services/
- Aspen Appraisals - https://www.aspenappraisalservices.com/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 094 - Uncommon Appraisal Issues
Appraisal issues and defects come up often enough in properties. Don’t let the uncommon issues blindside you. Brian talks about an concerned agent’s phone call to him about a problem we almost never see. It was bad news for that agent. Don’t become the next cautionary tale.
SHOW NOTES
- 00:58 – Happy Veteran’s Day!
- 02:27 – Property issues and defects.
- 03:05 – Buried fuel tank example and FHA rules.
- 06:17 – Pay attention to external obsolescence.
- 08:40 – Train tracks with noise and rumble.
- 09:23 – Smell issues: sewer treatment plant.
- 10:05 – Most uncommon issues are external to the property.
- 11:15 – Agents don’t ignore these issues. Look around the property. If you have a problem, ask the lender or another expert to find out how to deal with it.
SHOW LINKS
- FHA rule on fuel tank – https://hudgov.dynamics365portals.us/knowledge-details/?code=KA-05032#:~:text=If%20the%20subject%20property%20line,is%20ineligible%20for%20FHA%20insurance.
- External obsolescence – https://www.clearcapital.com/resources/glossary-of-terms/external-obsolescence/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 093 - The Comparable Is Wrong
Don’t let the episode title fool you, we aren’t talking about using the “wrong” comparable, we mean the comparable being used has wront information. Nothing is more frustrating than finding comparables properties and then finding out the properties you chose were not listed correctly or accurately.
In this episode, Brian talks about how to work through that issue, and explains some of what an appraiser must do to satisfy a lender. Don’t worry though, I’m sure the comparable is also wrong too.
SHOW NOTES
- 01:55 – Agents: put in accurate information into your listing sheets.
- 04:43 – What to look for when using a comparable.
- 06:50 – Look at pictures.
- 07:37 – Appraisal perspective: relatively the same as the agent with a few exceptions.
- 08:40 – Look at tax records.
- 09:23 – Look at prior listings
- 11:15 – Call the listing agent about the comparable.
- 12:27 – Appraiser’s issues with lender when comparable has wrong data.
- 16:15 – Easy fix: use common sense and input your listings accurately.
SHOW LINKS
- Favorite candy in each state – https://www.candystore.com/blog/facts-trivia/halloween-candy-map-popular/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 092 - Appraiser Horror Stories with Steve Crellin
It’s Halloween week and no scary season would be complete without a horror story or two. Steve Crellin with Yawkey Way Appraisals joins Brian again to talk about crazy and shocking events that have happened to them while appraising properties in the field. Be kind to them as appraisers do have tender hearts and might scare easily. Mmmmmuuuuhhhahahahahahaa!!
SHOW NOTES
- 02:40 – Warm intro for Steve and good parenting tips by B.
- 07:30 – Google appraisal horror stories.
- 09:00 – Horror stories about animals.
- 13:08 – Horror stories involving weapons.
- 18:10 – Horror stories involving homeowners.
- 25:37 – Steve shares his run-in with SWAT for just taking a picture.
- 31:50 – Halloween/ghost horror stories.
- 36:10 – Steve’s favorite horror story.
- 47:39 – Stay tuned for some big news coming up in the next month or two.
SHOW LINKS
- Steve Crellin – https://www.youtube.com/watch?v=HDcGndXbcLk
- Squid Game – https://www.netflix.com/title/81040344
- It’s the Great Pumpkin Charlie Brown – https://en.wikipedia.org/wiki/It%27s_the_Great_Pumpkin,_Charlie_Brown
- Appraisal horror stories – https://www.appraisalbuzz.com/crazy-appraiser-stories/
- “Amityville Horror” movie – https://www.biography.com/news/the-real-amityville-horror-facts
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 091 - Value Is NOT One Number
Are you under the impression that the appraised value is the only value? Let’s set that false impression to rest and talk about a range of value, and how to better understand how to value property.
Qualitative versus Quantitative valuation can help solve some of the issues found in valuing property. Don’t focus so much on one number. Realize that value is a range.
SHOW NOTES
- 01:50 – Value is not one number.
- 04:07 – Market value versus market price.
- 05:55 – Qualitative versus quantitative valuation.
- 08:05 – Validity to valuation when looked at as a range.
- 09:28 – Quantitative approach refines the value number.
- 10:45 – Recognize that your value is not the only value.
- 11:25 – Don’t be so rigid on one number.
SHOW LINKS
- Ricotta cheese vs. Cottage Cheese in Lasagna – https://greatist.com/eat/ricotta-cheese-and-cottage-cheese-what-is-the-difference
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 090 - The Appraiser Doesn't Care!
True story: Appraisers have a heart – okay – some of them do. There is plenty to consider when valuing property. The impact of the value can be far reaching. Recognize that impact and have a heart.
SHOW NOTES
- 02:40 – Agents are intentionally biased as an advocate for their client. Appraisers are intentionally un-biased.
- 04:05 – Agents and appraisers are NOT enemies!
- 06:40 – The reports appraisers write affect many people.
- 08:00 – Value ranges are typical.
- 09:10 – Agents can deal with this too. Explain your situation to the appraiser.
- 11:30 – Appraisers do have a heart.
- 12:00 – Appeal to the lighter side of the appraiser.
- 13:20 – Appraisers don’t like it when their home value is affected.
- 14:40 – The decisions the appraiser makes affects everyone.
SHOW LINKS
- Mark Ratterman – https://www.indianarealestatedata.com/jsp/agents/agent_overview.jsp?agentID=12361284
- Residential Property Appraisal book – https://www.amazon.com/Residential-Property-Appraisal-Mark-Ratterman/dp/1935328794
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 089 - What Happened to Your Equity?
Equity will be a huge concern for homeowners in the coming years. Buying at the top of the market may get you in a house today, but what will that mean for you in the long-term? There are strategies to consider based upon a client’s situation, needs, and financial expectations. As an agent, it would be wise to help manage those expectations to avoid the peril that many agents put their clients in during the 2008-2009 Recession.
SHOW NOTES
- 01:30 – Some markets are stabilizing and/or decreasing. What are you doing to help your clients protect their equity?
- 03:00 – Equity looks nice on paper, but only matters when an owner is selling or refinancing their home. Down the road, it may not be as nice.
- 04:35 – Economic cycles cannot be avoided. The market will have a correction and decline.
- 05:30 – Reasons to consider purchasing at a higher price based upon possible increasing interest rates.
- 07:55 – Other reasons to consider purchasing a higher price: currently renting.
- 09:05 – Home purchase is very emotional. Help the client make a decision based upon economics.
- 10:55 – No one can escape the economic cycle. Be an advocate for your client.
- 11:20 – Don’t count on the appraiser or lender to take the ride.
- 12:40 – Many agents do not have this discussion with the clients and their clients felt that pain.
SHOW LINKS
- rubiconrealtor.com – https://www.rubiconrealtor.com/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 088 - What is Your Square Footage, Part 2
Last week’s episode got into above and below grade square footage concerns. This week Brian talks about square footage issues seen all the time in upper levels. From open areas, to kneewalls, and dormers, there is plenty to watch. Take a deeper dive into how to calculate square footage in the second of this two-part series.
SHOW NOTES
- 00:50 – Recap last week’s episode.
- 03:30 – Factors to consider when measuring upper levels.
- 04:20 – Open areas in an upper level.
- 06:50 – Ceiling and wall height concerns.
- 08:45 – Knee wall height and where to measure.
- 10:05 – Consider how you access the upper level.
- 11:27 – Separate access to upper levels.
- 13:15 – Don’t do what other agents are doing!
- 15:10 – Two new classes on how to measure square footage.
SHOW LINKS
- Wear your sunscreen – https://en.wikipedia.org/wiki/Wear_Sunscreen
- Home Measurement Specialist – https://homemeasurementspecialist.com/
- ANSI Standard – https://www.e-rallc.com/ANSIstandards
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 087 - What is Your Square Footage, Part 1
One of the top issues that creates confusion, frustration, and liability is the square footage of a property. In this episode, Brian talks about the issues concerning above and below grade areas, and how to more accurately state the size of your properties.
SHOW NOTES
- 01:30 – Why do people care about the size of the home?
- 02:40 – Pricing property per square feet.
- 03:20 – Litigation is increasing, so be aware of this issue.
- 04:50 – Disclaimer: this episode is only about square footage, not about value.
- 06:15 – Certified Home Measurement Specialist.
- 06:57 – What do you look for when calculating square footage of a property?
- 09:40 – Difference between above and below grade square footage.
- 10:20 – Do not add all the levels together.
- 12:20 – Does a walk-out or walk-up basement, or a basement with egress windows change the answer? No.
- 13:30 – What do you do with the rooms below grade?
- 15:20 – Make it clear what you have and what you are selling.
- 15:45 – Two classes will be available in the fall to teach agents how to measure a property.
- 16:50 – Agents, watch out for your clients.
- 17:35 – What can agents do to protect themselves?
SHOW LINKS
- Starbucks – https://www.starbucks.com/
- Home Measurement Specialist – https://homemeasurementspecialist.com/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 086 - Appraisers in Cars, Driving Properties, Part 2
Define excitement. I’m confident none of your definitions included two appraisers driving through Wyoming and Montana, talking about random topics and appraisal issues.
But wait...this may not be like slipping down the slopes of Big Sky with the sun on your face, but this episode includes important topics such as Pringles, end cap shopping, and Brokeback Mountain, as well as where the appraisal industry is going “rules” in appraising, and the banking industry.
If you tell your friends about the podcast, we promise to never let Brian attempt to rap again. Buckle up and enjoy the ride on part 2 of Appraisers in Cars, Drive Properties.
SHOW NOTES
- 04:09 – Favorite flavor of Pringles and stacking them. Best flavors: Mango Salsa and Wendy’s Spicy Chicken Sandwich.
- 05:10 – End cap shopping troubles and marriage.
- 07:45 – Brian’s hypocrisy on shopping, but is the consummate appraiser.
- 10:26 – Where is the appraisal industry headed.
- 15:15 – Pricing property with price per square feet.
- 16:40 – Banking industry wants appraisers to go away.
- 19:29 – Appraisers have hung themselves in so many ways.
- 22:00 – Appraisers are d*cks! Appraisal leaders have not stepped up to help the industry.
- 26:40 – Brian responds that the industry won’t go away until humans can be replaced in unique situations.
- 33:20 – Technology will impact the future of appraisers.
- 38:20 – Appraisers talking bad about other appraisers.
- 40:07 – Appraisers that know the “rule”.
- 48:56 – Steve phones a friend.
- 05:40 – The Brokeback Mountain fiasco and Amazon.
SHOW LINKS
- “California Love”, Tupac – https://www.youtube.com/watch?v=5wBTdfAkqGU
- Pringles flavors – https://www.pringles.com/us/products/favorites.html
- Wendy’s Spicy Chicken Pringles – https://www.pringles.com/us/products/favorites/pringles-crisps-spicy-chicken-super-stack.html
- Walgreens – https://www.walgreens.com/
- End Cap Shopping – https://en.wikipedia.org/wiki/Endcap
- Yawkey Way Appraisals – https://www.instagram.com/yawkey_way_appraisals/?hl=en
- “Brokeback Mountain” – https://www.imdb.com/title/tt0388795/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 085 - Appraisers in Cars, Driving Properties, Part 1
Define excitement. I’m confident none of your definitions included two appraisers driving through Wyoming and Montana, talking about random topics and appraisal issues.
But wait...this may not be like kicking back on the beach with a Mai Thai in hand, but this episode includes important topics such as Ghostbusters, turkey bacon, and pineapple on pizza, as well as desktop appraisals, market trends, and what foreclosures might do to the market in the future.
Buckle up and enjoy the ride on part 1 or Appraisers in Cars, Drive Properties.
SHOW NOTES
- 02:40 – Ghostbusters and Google searching issues.
- 05:55 – Drive-by and desktop appraisals risk to appraisers and homeowners.
- 11:35 – Risks to lender in appraisal process.
- 16:55 – Brian admits to being a perfectionist and Steve’s wife is a jerk.
- 18:37 – Changes in the appraisal industry.
- 20:45 – Buyers using cash for their purchase and potential issues, and refinance boom getting ready to start?
- 26:08 – Was Indiana a booming market.
- 28:47 – Buyers writing letters to sellers, undue influence, and fair housing.
- 31:25 – Brian berates Steve about credibility.
- 35:23 – Steve loves Red Bull. Brian, not so much.
- 37:02 – Steve also loves the taste of artificial flavors. Brian, not so much.
- 38:07 – Artificial bacon flavored food and turkey bacon.
- 39:32 – Steve screwed up pizza with pineapple but tries to save it by adding jalapeno.
SHOW LINKS
- “Cowboy”, Kid Rock – https://www.youtube.com/watch?v=glb2U6y-GdU
- Yawkey Way Appraisals – https://yawkeywayappraisals.com/
- Ghostbusters PKE Meter – https://ghostbusters.fandom.com/wiki/P.K.E._Meter
- Do you like the flavor of Red Bull? – https://reizeclub.com/what-is-red-bulls-flavor-taste-analysis/
- Turkey Bacon vs. Real Bacon – https://spoonuniversity.com/lifestyle/bacon-vs-turkey-bacon-which-is-healthier-for-you
- Does pineapple belong on pizza? – http://spizzicorestaurant.com/pizza-debate/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 084 - How to Prepare for an Appraisal Inspection
In episode 074, Brian talked about what to give an appraiser. Many listeners loved it and asked what else they can do fully prepare for an appraisal inspection. Let’s get you set to have the home ready for the appraiser to ensure a smooth appraisal inspection. That will bode well for you, the homeowner, and the appraiser...and maybe even the value.
SHOW NOTES
- 01:00 – Episode 074 blew up! Thank you!!
- 02:20 – What things can an agent or seller do to prepare for the appraisal inspection.
- 03:50 – Make the property accessible.
- 05:00 – Brian has met with many great police officers due to an alarm going off.
- 06:21 – Locked gates to the community.
- 06:36 – All utilities must be on and all mechanical systems are operable.
- 07:45 – Make the home “showing” ready.
- 08:30 – Homeowners should not be present for the appraisal.
- 09:50 – “Loose lips sink ships.” Homeowners have said something they should not have.
- 10:55 – Crate pets. Don’t want to get bit or have an animal run out.
- 11:45 – FHA and VA loans will require a viewing of the crawl space and attic. Make sure they are open and available.
- 13:30 – Make sure appliances are operable.
- 13:40 – Some conventional lenders are asking about FHA and VA related issues. Make sure appraiser can see all areas of a home.
- 14:40 – Share this information with the seller. Buyer’s agents can help too.
- 15:35 – Leave the packet of information as detailed in episode 074.
SHOW LINKS
- Margot Robbie – https://www.imdb.com/name/nm3053338/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 083 - Appraisal Gap Contract Language
With increasing markets come a slew of negotiating tactics by buyers. One of the most talked about is the “appraisal gap” language that many buyers are adding to their offers to ease the concern of sellers over the appraisal valuation. Does that affect the appraised value though? What does an appraiser do with that information? Brian gives his take on this topic.
SHOW NOTES
- 03:10 – What is an appraisal gap?
- 05:00 – Appraisal gap language should not affect the appraised value.
- 06:20 – The market value of the property is indifferent to the contract. The contract or its terms does not have any impact on the market value of the property.
- 06:55 – Does the appraiser feel comfortable writing a “low” appraisal because they know the buyer will make up the difference? NO!
- 08:45 – The contract does not automatically set market value.
- 09:20 – Transparency in Brian’s appraisals and appraisal gap contract language.
- 10:40 – Buyers have communicated their contract was above market value. Have the conversation with parties.
- 11:55 – Appraisal gap language is fine in a contract, but don’t automatically assume the value of the property is based upon that language.
- 12:30 – Buyer can pay more for a property than what it is worth.
- 14:00 – Appraisers: Do not assume the contract means anything. Do your job, analyze the information, and estimate the market value.
SHOW LINKS
- Leave Your Shoes by the Door Podcast – https://www.mibor.com/about/episode-21-brian-c.-lee/
- Andrew Huber – https://www.linkedin.com/in/andrew-huber-200740129
- Halloween movie – https://en.wikipedia.org/wiki/Halloween_(franchise)
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 082 - Your List Price Increased AFTER Contract?
You’re the listing agent and you changed your list price to match the purchase contract. Is it a trick or simply communicating? What does an appraiser think about it? Brian has a candid discussion about that topic and has some suggestions. Bottom line, don’t do it!
SHOW NOTES
- 00:30 – I do adore and love my wife.
- 02:30 – Example of retconning the list price.
- 03:50 – How appraiser’s view this practice?
- 05:25 – Are you trying to help others by communicating information that might help other sales?
- 07:35 – Unintended consequences to market data that isn’t helping you or anyone else in the market.
- 09:20 – Communicate pending price in another way. Agent to agent comments.
- 10:30 – Don’t trick or deceive anyone. Be truthful. Act like a professional.
SHOW LINKS
- Retcon Defined – https://www.dictionary.com/browse/retcon
- Star Wars Special Edition – https://starwars.fandom.com/wiki/The_Star_Wars_Trilogy_Special_Edition
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 081 - It's "Grid"-Iron Time
Agents, you want to prove your comparable is good? It is time to put up or shut up. Grid your comparables to show that you put in the work and prove it to yourself, your clients, and the appraiser.
A good comparable grid will break the properties down into the vital elements so you can make a more accurate comparison. Don’t do what other agents are doing. Use a comprehensive grid (Brian has one for you if you would like it) so you can see where the value really shows itself.
Go Colts!!
SHOW NOTES
- 01:05 – NFL preseason is here!
- 02:30 – Valuation step that gets missed by agents, gridding comparables.
- 04:00 – The URAR (1004) appraisal form has a grid. Agents are not as lucky.
- 05:40 – Just because it is hard to grid, doesn’t mean you shouldn’t do it.
- 05:55 – Email Brian if you would like a copy of the Excel file.
- 06:55 – Note all the differences or agents and appraisers will not be on the same page.
- 07:30 – Helpful for agents to communicate with your clients and the appraiser.
- 08:55 – The devil is in the details. Analyze those details to have an accurate comparison.
SHOW LINKS
- Best chili recipe – https://sugarspunrun.com/best-chili-recipe/
- Indianapolis Colts – https://www.colts.com/
- Las Vegas Raiders - https://www.raiders.com/
- Super Bowl 18 – https://en.wikipedia.org/wiki/Super_Bowl_XVIII
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 080 - Is Your Comparable, Comparable?
Agents and appraisers disagree about many things but almost none more vehemently than what comparables to use. Don’t fret though, other appraisers, lenders, and homeowners constantly argue with appraisers too. The tough part, there are no rules or definition on what is a comparable property.
In this episode, Brian talks about things to consider when searching for comparables and how to better help yourself in writing a CMA, discussing properties with an appraiser, and just maintaining your sanity on this topic.
SHOW NOTES
- 01:30 – Appraisers do not hate agents.
- 03:05 – Already up to 80 episodes.
- 03:20 – One of the top reasons for agents and appraisers to argue is over comparables.
- 03:55 – Many professionals don’t agree what is a comparable is.
- 05:00 – There are some descriptions of a comparable: Fannie Mae and Freddie Mac, USPAP, and other text.
- 07:20 – Difficult to “define” a comparable so it becomes subjective.
- 08:10 – Things to consider when searching for comparables: bracketing.
- 10:00 – Lender will chime in on comparables. Appraiser has to appease the underwriter.
- 11:05 – Comparables should be similar physically, economically, locationally, and legally.
- 11:40 – Many people “know” what a comparable is, like it is a fact. Not possible.
- 13:10 – Agents have some awareness of comparables because they might know what a typical buyer would do.
- 15:10 – A comparable is not necessarily one that just supports the contract price, but not similar in amenities.
- 16:35 – Fannie and Freddie look at adjustments to the comparables. The more adjustments, the property might be less of a comparable. Proximity and sale date are also factors.
- 18:55 – A comparables is not a fact, so don’t get mad because the appraiser doesn’t use your comparables.
- 20:00 – Everyone says they have the “best” comparables but did they back it up? Explain why your comparables are the “best.”
- 20:50 – Explain why a property might NOT be a good comparable.
SHOW LINKS
- Comparable described by Fannie Mae – https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B4-Underwriting-Property/Chapter-B4-1-Appraisal-Requirements/Section-B4-1-3-Appraisal-Report-Assessment/1032992441/B4-1-3-08-Comparable-Sales-10-02-2018.htm#:~:text=Comparable%20sales%20should%20have%20similar,compared%20to%20the%20subject%20property.&text=Fannie%20Mae%20does%20allow%20for,appropriate%20for%20the%20appraiser's%20analysis.
- Appraisal Scoring Model – https://singlefamily.fanniemae.com/media/20576/display#:~:text=CU%20provides%20a%20numerical%20risk,that%20may%20require%20further%20attention.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 079 - Specifically Speaking About Specific Data with Steve at Yawkey Way Appraisals
What is better than listening to one appraiser tell you what to do? Having two appraisers with the same twisted mind telling you what to do. Brian invited his and brother from another mother, Steve Crellin with Yawkey Way Appraisals onto the show to talk about a very important topic, data collection.
Quite often when there is a difference of opinion between appraisers and agents, it comes down to data. If they are not looking at the same data, the valuation may be skewed.
This is part 2 of 2, where Brian and Steve talk about the subject property elements and data that can and do affect the valuation of a subject property.
SHOW NOTES
- 00:55 – Steve Crellin w/ Yawkey Way Appraisals is back, and he is a HUGE Boston Red Sox fan.
- 05:25 – Recap from last week; outside influences such as legal, locational, and demographics. This week is all about the property.
- 06:30 - URAR has 23 line items to dissect a property.
- 08:10 – Look at all of the elements of the subject property. We touch on few elements but pay attention to the details.
- 08:40 – Lot size; how the home sits on the lot; lot has a huge ravine or on the side of a mountain.
- 10:55 – View; elements that affect sight, hear, and smell. Farming, airports, and railroads.
- 14:15 – Design; ranch versus 2-story; multi-level home; historical homes; log cabins.
- 16:50 – Steve: appraisers saying they “must” or “can’t” do something; all we must do is explain. Episode 72.
- 19:52 – Quality; composition of the materials that make up the property.
- 22:15 – Condition; how well have the elements of the subject been maintained; updates to the property.
- 24:00 – Square footage; difference between above and below grade living area; room count.
- 27:00 – Bedroom and bathroom count between above and below grade.
- 29:35 – Car storage; tandem garage; size of garage.
- 33:40 – Exterior elements; patios, porches, fences, and pools; can affect marketability.
- 38:25 – Should Steve come back?
- 39:25 – The details do matter. Pay attention to the specifics about the property.
SHOW LINKS
- Steve with Yawkey Way Appraisals – https://www.instagram.com/yawkey_way_appraisals/?hl=en
- Boston Red Sox – https://www.mlb.com/redsox
- Chicago Cubs – https://www.mlb.com/cubs
- Big Sky, Montana – https://en.wikipedia.org/wiki/Big_Sky,_Montana
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 078 - Generally Speaking About General Data with Steve at Yawkey Way Appraisals
What is better than listening to one appraiser tell you what to do? Having two appraisers with the same twisted mind telling you what to do. Brian invited his and brother from another mother, Steve Crellin with Yawkey Way Appraisals onto the show to talk about a very important topic, data collection.
Quite often when there is a difference of opinion between appraisers and agents, it comes down to data. If they are not looking at the same data, the valuation may be skewed.
This is part 1 of 2, where Brian and Steve talk about the outside influences and data that can and do affect a subject property.
SHOW NOTES
- 00:55 – Introducing Steve Crellin w/ Yawkey Way Appraisals
- 06:00 – Questions asked by agents. What is a comparable?
- 09:00 – Devil is in the details. Pay attention to the small pieces. Are we comparing apples to apples?
- 09:55 – General data described.
- 10:18 – Legal, economic, locational, and demographics.
- 11:15 – Legal components; highest and best use; zoning; HOAs; historical districts.
- 14:10 – Steve’s example of zoning issue with a property that has an ADU (Additional Dwelling Unit.)
- 16:45 – Economic components; market trends; provide support for your conclusions.
- 18:55 – Locational elements; shopping and recreation sources; schools; employment; vacation homes.
- 22:36 – Who is the typical buyer for the property?
- 24:48 – Steve talks about skiing communities in Montana.
- 26:25 – Demographics; age; occupants with children; what is the largest population components and what do they make up in the greatest number of buyers.
- 27:35 – Steve talks about retirement communities. Sun City, Arizona
- 31:25 – Recognize the importance of the general data that affects the subject property so comparables can be found that have the same external influences.
- 33:23 – This is not trivial information. Do a better job for your clients, be intentional, be honest, and have integrity.
- 36:36 – Next week is part 2; Steve will be back to contribute; talking about specific data.
SHOW LINKS
- Steve with Yawkey Way Appraisals – https://www.instagram.com/yawkey_way_appraisals/?hl=en
- Marvel – https://www.marvel.com/
- Step Brothers Quote – https://www.youtube.com/watch?v=e23SotgestI
- “Show me the money” – https://www.youtube.com/watch?v=FFrag8ll85w
- Sun City, Arizona – https://suncityaz.org/
- Loki – https://www.disneyplus.com/series/loki/6pARMvILBGzF
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 077 - Market Value vs. Market Price
Real Estate 101 exam question: Define Market value and market price, and explain the difference between the two. Just kidding! This isn’t a test.
In this episode B talks about what they are and how they are very relevant in today’s market. Knowing the differences can really help you on your next CMA and appraisal challenge.
SHOW NOTES
- 02:00 – Market value vs. Market price.
- 03:10 – Refresher on the terms.
- 05:00 – Market price is a factual number.
- 06:10 – Intrinsic value: what is the property worth to this specific buyer/seller.
- 06:35 – Balanced market the market value and market price are usually the same.
- 07:45 – Market price has increased higher than market value.
- 08:15 – Buyers are motivated.
- 09:15 – Why does this matter?
- 10:45 – Buyer’s motivation drives market price, but does the buyer’s motivation drive market value?
- 12:10 – Lender is concerned with market value.
- 13:00 – Market price can be supported with multiple offer information.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 076 - It Depends
Ever ask an appraiser a question and all they give as an answer is “It depends”? Why can’t they just give a straight forward answer? There are many reasons for that and B gets into that in this episode.
SHOW NOTES
- 01:10 – Asked many questions, and the answer is usually it depends.
- 02:30 – How much is a basement worth? A garage bay?.
- 03:20 – The appraisal process is not linear.
- 03:55 – Adjustments are the most common question for appraiser.
- 04:10 – Variables change the answer. Value of property, diminishing returns.
- 05:10 – Basements: value, finished area, quality, partitions, windows, walk-out.
- 05:45 – Tandem garage description.
- 06:40 – Specific answers would be nice, but many variables change the answer.
- 07:00 – Valuation is hard to learn.
- 07:40 – It takes time to learn the valuation process; the mechanics, the process, etc.
- 09:00 – Appraisers are worth their money because they know how to work through all of the data points.
- 09:30 – Steve, Yawkey Way Appraisals.
- 10:15 – Forget about adjustments.
- 11:55 – Most things are missed because you didn’t grid or fully analyzed element.
SHOW LINKS
- Turkey Run State Park – https://www.turkeyrunstatepark.com/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 075 - Buying a Porsche By Its Weight
Pricing property should be as easy as pricing a car, especially when you only use one unit of comparison. However, pricing houses does require some effort if you want accuracy and belivability.
Pricing a home only by its size misses so many vital elements and does not provide much relevancy or support in justifying a property’s value. Take the extra steps by educating yourself on the valuation process to provide credibility in your CMA, purchase price, and appraisal rebuttal.
SHOW NOTES
- 02:00 – Want to buy a Porsche. How would you price it?
- 02:45 – “Comparable” vehicles sold by the same weight.
- 04:35 – Pricing a property by its square footage is wrong.
- 06:25 – Many elements are missed such as location, lot size, view, age, condition, basements, etc.
- 08:00 – Pricing a property by size is easy but is not accurate or reliable.
- 09:05 – It is not easy but put properties on a grid. Break the elements of comparison down. Put in the work.
- 11:25 – Overall price per square foot vs. line-item square foot adjustment.
- 13:00 – “Rule of Thumb” on a line-item basis.
- 15:10 – Do the hard work and you will get better results.
SHOW LINKS
- Barber Race Track – https://barberracingevents.com/
- Porsche Experience – https://www.porschedriving.com/track-experience
- Porsche 718 Cayman GT4 – https://www.porsche.com/usa/models/718/718-cayman-gt4/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 074 - What To Give An Appraiser
Agents ask the question all the time, “What should I give an appraiser?” The answer is easy, a bottle of Captain Morgan and not a hard time.
In this episode, B talks about what to give an appraiser, how to craft the information, and how to provide to the appraiser. It might take a little bit of work, but that is your job as a fiduciary for your client.
Help the appraiser with information to help your client, the transaction, and possible your sanity for your next appraisal report.
SHOW NOTES
- 02:00 – Don’t give the appraiser a hard time, and probably not comparable sales.
- 02:40 – Give the appraiser information that an appraiser does not know or may not readily be aware of.
- 03:35 – What is a comparable?
- 05:15 – Put comparables on a grid to substantiate your research and purchase price.
- 07:25 – Unique property situations and comparables. If you know of a property that is like the unique property, send that to the appraiser.
- 08:22 – Explain a property that might be a comparable but is not similar based upon condition or motivation, and the property sold under duress.
- 11:05 – Include list of updates to the property with some detail including price and dates.
- 12:25 – Multiple offers are also helpful. Listen to episode 73 about multiple offers. Provide details to the appraiser.
- 13:10 – Explain your position. Write a few paragraphs about how you came up with the purchase price.
- 14:56 – How to get this information to the appraiser.
SHOW LINKS
- HAMCO MIBOR – https://www.facebook.com/HamCoMIBOR/
- The Palladium – https://www.visithamiltoncounty.com/events/palladium/
- Captain Morgan – captainmorgan.com
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 073 - Do Multiple Offers Matter?
2020/21 and COVID have been nothing less than a pain in the back side. To add to the stress, let’s throw in multiple offers. Not just one or two, but 43 for one property. UGH!! It is stressful for agents and it is a pain for appraisers, but face them we must.
In this episode, B talks about the significance of multiple offers and why they do matter in this market. He also gets into how to present them to an appraiser. Hint: it is not saying you have them.
Take a chill pill and let’s work through this together!
SHOW NOTES
- 01:00 – Multiple offers are out of hand.
- 02:20 – Appraisal process: collect, analyze, and report data.
- 03:35 – Multiple offer situations have changed a lot in recent times.
- 04:45 – Fannie and Freddie want to know what is going on in the market.
- 06:02 – What are market trends doing? Multiple values may show that.
- 06:25 – Definition of market value.
- 08:10 – Multiple offers might show the stability of the current market.
- 09:00 – Agents give appraisers multiple offer information.
- 10:40 – Maybe provide redacted purchase agreement.
- 11:25 – Appraisers must collect, analyze, and report what they find, which include multiple offers.
- 12:01 – Agents help appraisers, “help us, help you.” Appraisers have to sell the report and property to the lender.
- 13:20 – Good appraisers want this information and so do lenders.
SHOW LINKS
- Multiple offers - https://www.houselogic.com/sell/how-to-sell-step-by-step/what-happens-when-there-are-multiple-offers-on-a-house/
- Definition of Market Value - https://www.inman.com/2015/03/26/the-difference-between-market-price-and-market-value-in-real-estate/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 072 - Myth Debunked: Comparable Distance and Date of Sale Rules
Myth Busters is such a good show. Their experiments to prove or disprove various tales. Today B will debunk the myth that an appraiser must comply with distance and date of sale rules when selecting comparables. Spoiler alert: there are no rules that say that.
In this episode, B talks about how the guidelines work and how you can better find comparable sales and even push back a little on appraisers when they stand hardfast on not being able to get past what they think is a “rule.”
SHOW NOTES
- 02:00 – “Rules”; Appraiser says, “I can’t…”; what they are saying is “I don’t know the rule”, or “I don’t want to…”
- 03:36 – Guidelines versus rules.
- 04:35 – Pending, listing, and expired sales. A prior sale of the subject itself.
- 06:03 – Maybe you do not need to exceed those guidelines.
- 08:07 – Start the search for comparables based upon close proximity and recent sale and then expand the area and time frame.
- 08:55 – Find properties that are comparable and similar to the similar.
- 09:22 – Proximity and recent sale has some validity but does not mean the property is more comparable.
- 10:14 – Examples about lender underwriting request.
- 11:55 – Search market area for comparables. Market area is the area a typical buyer would search for a home when making a purchasing decision.
- 13:10 – Examples of far exceeding distance and time. Geodesic Dome home.
- 15:09 – Don’t exclusively search for comparables based upon recent sale or close proximity. Find properties that are similar to the subject.
- 16:45 – Myth: comparable distance and time parameter “rules” is debunked.
SHOW LINKS
- Fannie Selling Guide on Comparable Selection – https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B4-Underwriting-Property/Chapter-B4-1-Appraisal-Requirements/Section-B4-1-3-Appraisal-Report-Assessment/1032992441/B4-1-3-08-Comparable-Sales-10-02-2018.htm
- Geodesic Dome home – https://pacificdomes.com/eco-living-domes/?gclid=EAIaIQobChMIuqil76Tv8AIVsCCtBh1OyQafEAAYASAAEgJ-j_D_BwE
- Yawkey Way Appraisals – https://www.facebook.com/YawkeyWayAppraisals
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 071 - Appraisal Waivers: Worst Idea Ever
Kool and The Gang sang the song “Celebration” in 1980. You know how it goes, “Celebrate good times, come on.” There is plenty of time for that in a real estate transaction when the closing is finished, but don’t celebrate an appraisal waiver.
Appraisals serve a vital purpose in the real estate transaction. One that protects your client. An appraisal waiver serves only one party, the lender, NOT your client. In this episode, B dives into what an appraisal waiver does and does not do, and how you might be doing your client a disservice by celebrating that waiver.
SHOW NOTES
- 00:45 – Be nice to each other! We are in this together.
- 01:57 – Agents celebrate appraisal waivers like the Ewoks dancing at the end of Return of the Jedi.
- 02:45 – Pros to a waiver: save time, money, and avoiding the “low” appraisal.
- 03:30 – Does the appraisal waiver serve your client.
- 04:45 – What is an appraisal waiver?
- 06:00 – Appraisal waiver is based around a Zillow estimate.
- 07:25 – Appraisal waiver only serves the lender, not your client.
- 09:05 – What is best for your client? Have a conversation with your client about what is happening.
- 10:45 – Agents have a negative opinion on the appraisal process, but that is not a good reason because you will likely get a good appraisal.
- 11:50 – Appraiser is unbiased and not out of emotion. We help clients make an informed, financial decision that is well informed. Helps avoid buyer’s remorse.
- 13:34 – What are your client’s short-term and long-term plan for the property.
- 15:45 – Advocate for your client; an appraisal does have value for your client to help them make an informed decision.
SHOW LINKS
- Star Wars: ROTJ Celebration (Yub Nub) – https://www.youtube.com/watch?v=np6vAuS0KNs
- Kool & The Gang, “Celebration” – https://www.youtube.com/watch?v=3GwjfUFyY6M
- What is an appraisal waiver? – https://www.firstsavingsmortgage.com/mortgage-blog/what-is-an-appraisal-waiver-and-is-it-right-for-me/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 070 - Is It Time for a Time Adjustment?
Using dated sales is one of the best indicators of value in many cases. The problem occurs when those sales are dated and/or the markets have changed (increased or decreased) since those sales.
In this episode, B talks about when to consider a time adjustment and how you can go about estimating a legitimate and reasonable percentage of change.
SHOW NOTES
- 01:56 – How can values increase if appraisers use dated sales?
- 03:15 – Time adjustments make up the gap between dated sales and current markets.
- 03:37 – Are time adjustments being recognized? Not just in current markets, but future markets. Are they being analyzed and are time adjustments being applied?
- 04:30 – Dated sales help comply with underwriting requirements. Unique properties that a lender might require.
- 06:27 – Pay attention to supply and demand. When homes sell “slow”, is the market stable?
- 07:50 – Recognize the possibility of the increasing, decreasing, or stable market.
- 08:14 – Analyze the change in the market. How much has it changed?
- 09:55 – Look at your MLS to see if they have the ability to provide a system that will help analyze market trends specific to the area around the property you are valuing.
- 10:25 – Search for a group of comparable properties from the specific market. Put it into a spreadsheet. An extremely easy regression analysis.
- 12:10 – Apply the time adjustment. Take annual appreciation, divide by 12 to come up with a monthly change. Multiply that monthly amount by the number of months from today’s date to come up with the percent change.
- 13:28 – Should you apply the time adjustment to the contract date or sale date? Huge debate on which date to use.
- 14:15 – Multiple offers can assist in justifying a market increase.
SHOW LINKS
- Easy Regression – https://online.stat.psu.edu/stat462/node/91/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 069 - Interview with Real Estate Agent Cate Lee
She’s Back!! By popular demand, Cate Lee (B’s better half and more significant, significant other) is with B to talk about current market conditions, “low” appraisals, and an issue on one of her transaction that B helped save.
SHOW NOTES
- 01:00 – Cate is back with us. B is Mr. Cate Lee
- 02:00 – Update on what Cate has been up to.
- 04:20 – Discussion about “low” appraisals and no shortage of opinion. And sharing a legal description issue that dealt with appraisal issues.
- 05:55 – “Low” appraisal = appraisal that is below the purchase price.
- 08:00 – Preparing buyers and seller for the current market with crazy offers and likelihood of the “low” appraisal.
- 09:50 – Gap shortage language in purchase agreements.
- 10:25 – How many buyer’s agents are doing a CMA for their buyer?
- 12:00 – Time crunch can affect the reaction time.
- 13:18 – Stop gap issue. Have conversation with buyer, are they willing to come up with the difference?
- 15:10 – If you want something, you can pay what you want.
- 16:30 – The lender is not willing to loan on a home for more than market value.
- 17:45 – What is time, energy, and memories worth to the buyer?
- 18:25 – What do you do from the seller’s perspective?
- 21:00 – Gravy to the seller if the property appraises for more than market price.
- 21:56 – Preparing the appraiser up front: list of updates, comparables, and anything to help support the purchase price.
- 24:00 – When you have multiple offers, give that detail to the appraiser.
- 27:05 – Appraiser needs a lot of info to help support the value for the lender.
- 27:25 – Listing agents: communicate information when you close out properties.
- 27:45 – Cate’s issue with a “duplex” property.
- 29:55 – All of the appraisers were right. What report is required.
- 34:15 – cate@craftsmanrg.com
SHOW LINKS
www.rubiconrealtor.com
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 068 – What is a Bedroom?
Bedrooms – what a huge source of argument between agents, buyers, sellers, and appraisers. What is a bedroom and does it really matter. Short answer, NO! Let’s get into that pesky definition and why that label really doesn’t matter.
SHOW NOTES
- 01:10 – What qualifies as a bedroom? No rule.
- 02:10 – Local code might have a “rule” on what qualifies as a bedroom for new construction, remodeling, or permitting.
- 02:59 – Local MLS policy might direct agents how to advertise/disclose what a bedroom includes.
- 03:34 – Unknown ”sources” have an opinion.
- 03:49 – In the appraisal world, how does a room affect value? No rules except one with FHA.
- 04:45 – What matters is what the market thinks the room will function as.
- 04:57 – “General” definition of a bedroom: entry door that is closable, closet, second means of egress (door or window), and do I have to walk through one room to get to the second room.
- 07:40 – What would a typical buyer/the market do in this market? Would they use it as a bedroom?
- 07:57 – Newer homes might need to comply the “general” rules.
- 08:36 – Older/historic homes likely don’t have a closet and comps are similar.
- 10:12 – What does the market think?
- 10:35 – Basement bedrooms are a thing too. Egress windows, closets and the difference between above and below grade bedrooms.
- 11:40 – So what if it’s not a “bedroom”? Room didn’t magically disappear. The label might not be a bedroom, but the room exists so it still has value. Functionality is what matters.
- 13:18 – Room has value regardless of its label. Is its value significantly diminished? Probably not.
- 14:25 – Don’t get wrapped up in the room’s label. Be transparent and disclose what the room includes.
SHOW LINKS
- “Truly, Madly, Deeply” Savage Garden – https://www.youtube.com/watch?v=WQnAxOQxQIU
- MIBOR – https://www.mibor.com/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 067 – The Appraiser is Unbiased, Until the Dog Bites Him
Bias in the appraisal world is a hot topic right now. In this episode, Brian talks about where a legal form of bias might come into the appraisal process and how you can handle it.
SHOW NOTES
- 00:55 – This episode is not about illegal bias and a future episode will include racial bias with a group of people.
- 03:00 – Bias does come into the appraisal process even outside of fair housing issue.
- 03:22 – USPAP states the appraiser must be unbiased as we are not an advocate for any transaction or a party in the transaction.
- 04:32 – By law cannot be biased based up Fair Housing concerns.
- 05:12 – There is some bias that is inherent in the appraisal process. Bias exists everywhere in our world in all things.
- 06:05 – Conscious bias. Value range sets up bias. We have to estimate the value of the property within the adjusted value range.
- 07:09 – Unconscious bias. Comp selection. What draws the appraiser to choose the comparables they ultimately select for their report.
- 08:36 – Adjustments have unconscious bias.
- 09:40 – Humans have bias in general and prone to persuasion.
- 12:30 – Dog bites tend to leave the appraiser with a bad taste in their mouth about the property.
- 14:10 – Comparable selection will likely be different between appraisers. Based upon objective criteria, but still looking at details that help us make a final decision on the comparables we select.
- 15:10 – Appraisal must conform to underwriting guidelines. Comparables are selected to “sell” the appraisal report to the lender’s underwriter.
- 16:35 – Adjustments are hard to substantiate. There is not a book on the adjustment. Are there things that make the property weird?
SHOW LINKS
- USPAP - https://www.appraisalfoundation.org/imis/taf/standards/q_as/taf/qas.aspx
- Conscious vs. Unconscious Bias - https://unleashpotential.ie/conscious-and-unconscious-bias/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 066 - Dealing with AMCs
Frustrations with appraisers continue to mount up. Most of the time it is likely not warranted, but every once in a while you get a “bad” appraisal. One of the causes of that might be the party ordering the appraisal and that process.
AMCs (Appraisal Management Companies) serve a function, but they have some issues. In this episode, B talks about what an AMC is, what they do, and what they might not be doing. Enjoy!
SHOW NOTES
- 01:06 – AMC stands for Appraisal Management Company.
- 01:40 – Company that manages the appraisal process for the lender.
- 02:25 – Lender must be disconnected from the appraisal process. Illegal activity was happening prior to changes.
- 04:08 – AMCs tend to hire the cheapest contractor (appraiser). Usually, you get what you pay for.
- 05:06 – Payments to appraisers are not always transparent.
- 06:33 – Appraisers that are not from the same area. Do they have geographic competency.
- 07:47 – What can an agent do? Ask lender how they are ordering the appraisal. Are they using an AMC?
- 08:32 – Some lenders do not use an AMC. They use an appraisal panel.
- 09:55 – Good appraisers typically do not like AMCs, they like to be on appraisal panels.
- 11:20 – Get what your client is paying for: a quality report and analysis.
SHOW LINKS
- AMC Theaters – https://www.amctheatres.com/
- AMC Channel – https://www.amc.com/
- Appraisal Management Company – https://www.investopedia.com/terms/a/appraisal-management-company-amc.asp
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 065 - Sunrooms and Square Footage
For some reason sunrooms are a HUGE deal when it comes to square footage. Nearly every week I get a call from an agent or homeowner asking about how they can make their sunroom into square footage. With all the love in the world, calm down about this concern. It is not as big of a deal as it is made out to be.
Sunrooms do add value, so let’s take that off the table. Sunrooms and their inclusion in the square footage calculation probably doesn’t make as big of a difference as you think when it comes to the valuation of your property.
B sets the record straight on when a sunroom adds to the square footage and more importantly, what it does for the value of the home.
SHOW NOTES
- 01:50 – Challenge agents: don’t focus on square footage; most people are conditioned to calculate price per square foot.
- 02:55 – Most people cannot tell the difference in square footage.
- 03:47 – Worry more about the value of the space than the size.
- 04:08 – How square footage is measured. ANSI Standard.
- 04:58 – Space must match the other living area in design, condition, quality, and style.
- 06:50 – Sunroom has value, regardless of whether or not it counts as square footage.
- 08:15 – Break down the home into pieces into just square footage.
SHOW LINKS
- ANSI Standard – https://www.ansi.org/
- House Measurement Specialist – https://homemeasurementspecialist.com/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 064 - Can You Get a New Appraiser or Appraisal Report?
If I get asked once a day, it seems like its a hundred times a day, “Can I get a new appraiser or appraisal report?” No! No you can’t and get over it. Okay, just kidding, but seriously, probably not.
Bad appraisers and bad appraisal reports do happen and try as you might, you can’t get them changed. There are a few instances where you might pull off the hail mary and actually be able to change one of them up though.
Listen in to hear if you might have a chance with another appraiser or a new appraisal report.
SHOW NOTES
- 01:00 – Have you ever had a bad appraisal?
- 02:30 – What options do you have to get a new appraiser or report?
- 03:04 – Can you get another appraiser? Dealing with the issue at the beginning of the process.
- 04:02 – Reach out to the lender and state your case. Might make sense if: appraiser is not from the area, competency, or appraisal report type.
- 05:47 – If you can’t get the appraiser changed, consider changing the lender.
- 06:23 – Can you get a new appraisal report? Very tough to do. Dealing with the issue after the fact.
- 07:33 – Significant defects in the appraisal: square footage, gross negligence, factual data that is wrong (not adjustments or comparables).
- 09:10 – Don’t make the wrong argument. Don’t argue items that are opinion. Argue facts.
- 10:00 – “Easy fix”, get a new lender. FHA and VA loan issues.
- 11:15 – Don’t “blacklist” an appraiser. Might be illegal.
SHOW LINKS
- Dodd-Frank Act – https://www.congress.gov/bill/111th-congress/house-bill/4173/text
- Dumb & Dumber, One in a Million – https://www.youtube.com/watch?v=sxuxJpWnicU
- Dumb & Dumber, One in a Million Talk – https://www.youtube.com/watch?v=mDLoT5sWOmE
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 063 - Are Your Lights On?
Agents, how many times have you had to delay a closing because of that doggone appraiser? Okay, it was a rhetorical question. However, one of the reasons for the delay might be you.
Most lenders and loan types require certain elements of the home to be viewable and operable. FHA and VA certainly make that clear in their requirements.
Instead of rushing to get the home ready at the last minute for a closing, follow these few steps to save you and your clients time, money, and heartache.
SHOW NOTES
- 00:50 – Is your home ready for the appraiser?
- 01:35 – Home is winterized, and it makes sense, but causes an issue
- 02:20 – FHA and VA minimum property requirements (MPRs). Utilities must be on and mechanical systems must be operable.
- 03:32 – Attic and crawl must be viewed. Tips on how to make that easier.
- 05:35 – Conventional mortgages will require utilities to be on.
- 06:30 – Not preparing the home can be detrimental.
- 06:58 – Appraisal will be required to revisit the property, which causes two issues: reinspection fee and cost, and additional time delay.
- 09:05 – May seem inconsequential but the additional cost and time delays can really affect your clients.
- 09:28 – Not doing this may leave the appraiser with a “bad opinion” or “bad taste in their mouth” about the property.
- 10:17 – Email B if you would like an appraisal inspection preparation checklist.
SHOW LINKS
- Make your Home Ready for Appraiser – https://nlcloans.com/trd_post/10-easy-ways-to-prepare-your-home-for-appraisal/
- VA MPRs – https://www.veteransunited.com/valoans/understanding-the-vas-minimum-property-requirements/
- FHA Cosmetic vs MPRs - https://www.mckissock.com/blog/appraisal/cosmetic-vs-mpr-repairs-guidance-for-fha-appraisers/
- Conventional mortgages require utilities – https://www.investopedia.com/home-appraisal-checklist-5085295
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 062 - Purchase and Refi Values are the Same, Right?
I am sure you have seen it and or had the question posed to you: Why is my refinance appraisal value so much different than the appraisal value from my purchase? It doesn’t make sense does it? Is there some policy or requirement that makes them different? The short answer is no, but the long answer may surprise you.
In this episode, Brian talks about why there is a difference and things to look for when this issue comes up.
Cate’s side note tangent, if you are reading these notes and happen to notice, Brian messed up (it’s his one time allotment per year). He said this was episode 61, not 62. If you are one of the first 10 people to call him out on via email, he will send you a $5 gift card to Starbucks. That will teach him!
SHOW NOTES
- 00:50 – What are purchase appraisals and refi appraisals different? B doesn’t know. They shouldn’t be but we know they are.
- 01:43 – Here are a few reasons: purchase has a “target” number, which is the purchase price.
- 02:36 – Lender’s perspective is only concerned about is if the property is worth at least what the home is being sold for. Some appraisers look at the purchase price as the target.
- 05:10 – Not a good reason, but a reality.
- 05:25 – Refinance appraisals do not have a target. Refi for rate or term or remove PMI. Your home is worth what your home is worth.
- 06:20 – Some appraisers rely on the purchase price as a crutch and if they don’t have it, they don’t know the value of the property.
- 06:50 – An example of where a refi value number is worth questioning.
- 08:29 – Having a target can be a big reason for the value disparity.
- 08:58 – Appraisers get push back from lender. Underwriter didn’t like data or the report, so they might “cut” the number.
- 09:30 – Not good answers, but the answer nonetheless.
- 10:00 – Not all appraisers are the same either and understand the process.
SHOW LINKS
- Appraisal Target? – https://activerain.com/blogsview/4736638/do-appraisers-need-a-target-to-determine-a-home-s-value-
- The More You Know - https://www.youtube.com/watch?v=GD6qtc2_AQA
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 061 - FHA Well Setbacks and Other Tall Tales
FHA minimum property standards can be tedious, annoying, confusing, and wrong. Wait? FHA has it wrong? It’s not that they have it wrong, it is that they know they don’t know everything, so they rely on the appraiser to discover certain elements and verify with local authorities on those issues.
One of those issues lately has been well distances. That rule is so misunderstood and misquoted. Brian helps to set the record straight and maybe it will help you on your next deal.
SHOW NOTES
- 00:48 – Something is in the air with well heads.
- 01:40 – FHA and VA: MPRs (minimum property requirements). FHA 4000.1 handbook. Relatively similar.
- 02:45 – Some rules from FHA and VA are requirements that cannot be ignored. Lead paint is an example. Mechanical systems must be operable.
- 03:45 – Some requirements have some flexibility. FHA rules on a well head placement.
- 04:25 – FHA says the well head must meet three distance requirements: 10’ from property line, 50’ from septic tank, and 100’ from leach field/finger system.
- 05:35 – Are those requirements really a requirement? Local code supersedes FHA rules.
- 06:55 – Look for a permit as that will wash FHA’s hand clean of this issue and FHA will allow the setback requirement to be less.
- 07:15 – Handrails issue with a drop from the deck to the ground is 18” or less. Local code supersedes FHA and FHA will bend.
- 08:00 – The reason for this is that FHA rules are in effect for all 50 states in those cases where there is not a local code that address these issues. If there is not a code or requirements locally, then FHA’s rule is in effect.
- 09:23 – Agents or the appraiser can call the Atlanta Home Center or the VA Cleveland office to verify this information.
SHOW LINKS
- MPRs, Minimum Property Requirements – https://www.investopedia.com/articles/mortgages-real-estate/11/fha-minimum-property-standards.asp
- FHA Handbook 4000.1 – https://www.hud.gov/sites/dfiles/OCHCO/documents/4000.1hsgh_Update9.pdf
- FHA well setback requirements – https://www.ovmfinancial.com/well-and-septic/
- FHA Atlanta Home Center – https://www.hud.gov/states/georgia/working/atlantaoffice
- VA Cleveland Office – https://www.benefits.va.gov/cleveland/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 060 - Appraisal Bracketology
Just like any good March Madness fan, appraisal bracketing can make or break you. Setting lower and upper limits on homes, elements, and adjustments can help you to better support your opinion of value.
Valuing of property is tough. Learning the technique of bracketing can help make the complicated task of valuation a little easier. Stick with this concepts and you will feel more comfortable with your CMAs. Oh...and GO HOOSIERS!!
SHOW NOTES
- 00:40 – What is bracketology?
- 01:15 – B is an IU Hoosiers fan!
- 02:09 – What is bracketing? Hard to find comparables with every element that is the same as the subject property. Instead, find two comparables where one is “better” and the other is “worse”.
- 02:55 – Square footage example. Subject is 1,500 square feet. Find comparables that bracket that element: one is 1,650 and one is 1,350 so one is bigger, and one is smaller.
- 04:03 – What can you learn from bracketing? Helps show marketability for the elements. Better shows that an element is “normal” for an area. If all comparables are bigger than the subject, that is an indication that the subject is under improved and is an issue. It can go the other way with all comparables are smaller, the subject might be over improved.
- 05:25 – Bracketing helps set the range. Focus on bracketing the home. Find homes that are better overall (sets a price ceiling) and worse overall (sets a price floor).
- 06:56 – Bracketing helps with adjustments. Lower price properties should adjust up, and higher priced properties should adjust down.
- 08:27 – Ideally, bracketing helps the adjustment process to get the comparables to “meet in the middle” and better support your value opinion with a tighter adjusted value range.
- 08:40 – Do not use all better comparables and adjust down, or all worse comparables and adjust up.
- 09:40 – More to this process but understanding the basics of bracketing can help you support your opinion and come up with better adjustment numbers.
- 10:04 – Bracketing is not science, but when you use it will, bracketing will help show you know what you are doing.
SHOW LINKS
- 2021 NCAA Basketball Tournament – https://www.ncaa.com/news/basketball-men/article/2021-march-madness-schedule
- March Madness – https://en.wikipedia.org/wiki/NCAA_Division_I_Men%27s_Basketball_Tournament
- Indiana University Basketball – https://iuhoosiers.com/sports/mens-basketball
- IU and Purdue Rivalry – https://bleacherreport.com/articles/1984366-rivalry-breakdown-indiana-purdue
- Appraisal Bracketing – https://mcappraisals.net/appraisal-information/what-is-the-concept-of-bracketing-in-an-appraisal/#:~:text=Bracketing%2C%20as%20defined%20in%20The,a%20group%20of%20comparable%20sales.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 059 - Are All Appraisal Reports the Same?
Last episode we discussed how appraisers are different. In this episode, Brian discusses different assignment forms, and gives some cautionary advice on why it is important to know how different reports and forms can change the appraisal process. Hint: they can affect the value and the entire perspective on the valuation of a property. You have been warned!
SHOW NOTES
- 01:30 – Many variables that change the appraisal report.
- 01:36 – The most common is the URAR, Fannie Mae form 1004.
- 02:18 – Other forms you might see: Condo, Manufactured Home, 2 to 4 Family, Operating Income and Rent schedule
- 02:54 – More controversial forms that exist. They can be used but be aware of them and their pitfalls.
- 03:19 – Exterior Only form, 2055. Not just a drive-by approach but is subjective on how the exterior viewing occurs. Won’t see the interior items like room count, quality, condition, and other elements inside the property.
- 05:27 – Desktop report. No one is viewing the property. Sitting at a desk and valuing property.
- 06:17 – Most controversial is the 1004P. Hybrid or Bifurcated appraisal. One person that is not licensed views the property and an appraiser is in the office writing the report.
- 08:05 – Fannie Mae feels the appraiser’s best use is the analysis, not looking at a home.
- 08:48 – COVID-19 has caused lenders and secondary mortgage participants to relax their rules on what an appraiser must do for the appraisal inspection process.
- 10:50 – Agents ask the appraiser what type of report are you writing? Are you going into the home?
- 11:30 – Ask the lender what type of report they are ordering or will allow. Lender might be okay with a desktop or hybrid inspection, but you and your client might not be okay with that choice.
SHOW LINKS
- URAR – https://en.wikipedia.org/wiki/Uniform_Residential_Appraisal_Report
- 1004P Form – http://www.workingre.com/fannie-mae-plans-massive-changes-to-appraisal-process/
- VA Protocol for COVID-19 – https://www.benefits.va.gov/HOMELOANS/documents/circulars/26_20_11.pdf
- Fannie Mae Protocol for COVID-19 – https://selling-guide.fanniemae.com/Content-Management-Labels/KB-Management/Guide-FM-com/1809017161/COVID-19-FAQs-Appraisals-12-16-2020.htm#:~:text=The%20temporary%20COVID%2D19%20appraisal,a%20no%2Dcash%20out%20refinance.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 058 - Are All Appraisers the Same?
Appraisers tend to get lumped into the same category of other professions that are considered “bad”. Is that fair? Brian has a take that might help change your mind. Not all appraisers are the same but for reasons that some might not consider.
This episode gets into how and why appraisers are different, both good and bad. From license type to training, education, and property type all set appraisers apart from each other.
Understanding why appraisers are different can help you when encounter a difference of opinion or when you hire an appraiser for a specific job. Enjoy the episode!
SHOW NOTES
- 00:40 – Are all appraisers the same? B’s wife might have an opinion on this topic.
- 01:00 – Not all appraisers are the same but for reasons that might surprise you.
- 01:55 – License type: trainee license; new licensed appraiser that needs training and supervision.
- 03:52 – Licensed Residential Appraiser: licensed to appraise residential real estate up to $1,000,000.
- 04:38 – Certified Residential Appraiser: licensed to appraise anything residential and some light commercial property.
- 05:18 – Certified General Appraiser: licensed to appraise anything; typically, only focus on specific property types.
- 06:09 – Appraiser designations: Appraisal Institute – MAI & SRA.
- 07:08 – Other education and background: college degrees are relatively new; what is their degree in?
- 08:44 – Other real estate experience: broker, instructor, construction, and other real estate background.
- 09:12 – By far the biggest difference in the difference in appraisers is their training and their mentor. Lack of training is an indicator of poor appraisal practices.
- 11:43 – Does the supervisor attend all inspections? They should up front and for specialty properties.
- 12:14 – Continuing education needs to be more than a requirement. Take classes that help the appraiser learn.
- 13:12 – Property type separates appraisers from each other too. Background and experience in specific property types will fit in with some appraisers but not all.
- 14:34 – Assignment type: court, lending, income tax, property tax. Some appraisers are well suited to take on some assignment types and not others.
- 15:20 – Client expectations can make appraisers different. Appraisers fall into a rut with one type of client and gets lazy.
SHOW LINKS
- Appraisal license types - https://www.mckissock.com/faqs/article/what-are-the-appraisal-categories-and-what-types-of-properties-can-they-appraise/
- John Snell – https://www.linkedin.com/in/john-snell-8a8b0a14/
- Appraisal Institute – https://www.appraisalinstitute.org/
- Traci Ostendorf – https://www.ostendorfappraisals.com/StaffProfiles.aspx?ID=20190
- Appraisal Assignment Types – https://en.wikipedia.org/wiki/Real_estate_appraisal
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 057 - How to Make Agents Mad 101
Appraisal licensing classes are so much fun, but none are quite nearly as exciting as How to Make Agents Mad 101. In that class appraisers learn various techniques to really get under the skin of real estate agents. Wait! There is no such class, but I’m convinced agents think there must be that curriculum in appraisal education.
It certainly may seem like with different values, adjustments, and answers, but we really aren’t trying to make people mad at us. It can be frustrating, but once you understand more about the process, rules, and guidelines, it does make a little more sense. Listen in to hear about the things that made agents mad about appraisers and what they produce.
SHOW NOTES
- 00:57 – How can appraisers make agents mad? Appraisers go through many classes and none of them are how to make agents mad.
- 02:25 – Why are values and adjustments different? Conventional versus FHA appraisal with different numbers. Adjustments for adjustments.
- 03:26 – Appraisal is an unbiased, credible, opinion of value. Unbiased: we don’t care about your transaction as our client asked the appraiser to come up with a value to rate risk.
- 04:07 – Opinion: one person’s opinion as this time and type.
- 04:40 – Agents are biased. You are an advocate. You are supposed to get best price for your client.
- 05:10 – No set process to the appraisal process. No adjustment book that all appraisers use. Some rules that all appraisers follow.
- 06:02 – Different rules for different lenders, loan, and appraisal types.
- 07:15 – Appraisers look at the rules differently.
- 07:42 – Appraisers are not the enemy of the agent. Most appraisers are not out to get you or make you mad.
- 08:33 – It takes more time and energy when the appraiser comes in “low”.
- 09:15 – Like agents and pizza, not all appraisers are of the same quality.
- 10:32 – You get what you pay for. Quality is worth the money.
SHOW LINKS
- Evil laugh – https://www.youtube.com/watch?v=7edeOEuXdMU
- Unbiased opinion of value - https://www.reddit.com/r/Showerthoughts/comments/ah2tqm/unbiased_opinion_is_an_oxymoron/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 056 - Do I Need An Appraiser?
Why do we subject ourselves to the pain and agony of hiring an appraiser? Short answer – Worth it! Long answer – They really are worth it when you need them!
You don’t always need an appraiser for certain situations, but it sure helps to have an unbiased, credible, valuation professional complete tasks when they are needed.
There are many reasons to hire an appraiser and we talk about some of that in this episode. Hold your judgement and hear me out. Appraisers do add value to your valuation needs.
SHOW NOTES
- 01:28 – Most agents only think of the appraisal need with the lender and the borrower’s loan.
- 02:05 – Different definitions of value for different uses.
- 02:22 – Different reasons for an appraisal: FSBO pricing; Cash purchase; Listings; Pricing dispute between the listing agent and seller.
- 03:50 – Legal reasons for appraisals: Divorce; Probate.
- 04:22 – Improvements analysis for remodeling or adding on to a home.
- 04:40 – Tax Reasons: Income, property, and estate taxes.
- 05:15 – Analogy: You wouldn’t hire a general medical practitioner for brain surgery. Agents do not specialize in valuation. Appraisers are the specialist.
- 06:22 – Appraisers complete a lot of analyses. Trends, comparables, adjustments. Appraisers add credibility to the value.
- 07:20 – Appraisers are unbiased. Divorce example. Listings. Appraiser’s “don’t care” about your situation.
- 08:52 – Appraisals are not always needed. A CMA works for general idea.
- 09:31 – An appraisal was just completed and you might be able to use it for another purpose such as tax appeal.
- 10:02 – BPO is a middle grade valuation. CMA is generally at the bottom of detail. Appraisal is at the top, and BPO is in the middle.
- 10:45 – A good appraiser will turn away work if the client doesn’t really need it.
- 11:10 – An appraiser brings A LOT to the table.
SHOW LINKS
- Definitions of Value – http://www.duncanbrown.com/definitions-value
- CMA – https://www.realtor.com/advice/sell/understanding-the-comparative-market-analysis/
- BPO – https://en.wikipedia.org/wiki/Broker%27s_price_opinion#:~:text=A%20broker's%20price%20opinion%20is,estate%20agent%2C%20broker%20or%20appraiser.&text=The%20final%20BPO%20is%20used,of%20a%20real%20estate%20property.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 055 - Don't You Know the Rule?
Rules. Ugh!! The world would be so much better without them in same cases. As I talked in the last episode, there are many regulations. The problem is that many appraisers, lenders, and agents misquote them, misunderstand them, or just flat out make them up.
In this episode, I get into rules and guidelines, and the sources of that information. I finish up talking about how to work through issues when someone “knows the rule.”
SHOW NOTES
- 00:30 – Friendly neighborhood appraiser, not your enemy.
- 01:00 – Building off of the last episode, I talk about “rules.”
- 01:10 – Rule versus Guideline. “The rule says .”
- 02:06 – Rule: I must follow. Cannot deviate from that rule. If I don’t, the appraisal report will not qualify for a loan.
- 02:53 – Guideline: I would like to have . A suggestion, preferred item.
- 03:22 – I break the guidelines, but I don’t break any rules.
- 03:40 – Most of the “rules” are not rules, they are guidelines. Example: time, distance, and adjustment “rules.”
- 04:25 – There are rules some of the time, but most of the time it is a guideline.
- 04:45 – Quoting the wrong source is quite common.
- 05:40 – USPAP doesn’t require comparables, scraping and painting, or adjustments.
- 05:55 – USPAP says find data, analyze the date, and report the findings.
- 06:30 – Frustrating when an appraiser calls a guideline a rule or quotes is from the wrong source.
- 07:10 – There are some rules and sources for this information. Agents probably don’t know.
- 07:40 – Agents: ask the appraiser to show that rule and the source.
- 08:19 – Anecdotally the appraiser cannot provide the rule or source because it does not exist. It is more likely to be a guideline.
- 08:50 – Han Solo: “Don’t get cocky, kid!”; be respectful to the appraiser.
- 09:28 – Know the difference between a rule and a guideline. When the appraiser says there is a rule, ask them to cite the rule and source.
SHOW LINKS
- Rule versus Guideline – https://wikidiff.com/guideline/rule#:~:text=As%20nouns%20the%20difference%20between,a%20regulation%2C%20law%2C%20guideline.
- “Don’t get cocky, kid!” – https://www.youtube.com/watch?v=nN9xsFUsPqM
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 054 - Valuation Regulations
I know, I know! No one likes to talk about the law, requirements, and regulations...unless that is if you are an appraiser and have a podcast. Agents have it easy with almost no regulations. Meanwhile, appraisers have plenty. The rules can be frustrating for appraisers and agents. Instead of being mad about them, learn what they are to get better results. In this episode, I talk about some of those regulatory bodies and what appraisers and agents are up against.
SHOW NOTES
- 00:39 – Last episode, this episode, and the next episode are “tied” together to set up the bigger picture issues.
- 01:28 – Agents have it “easy” from the valuation process with almost no regulations in that realm.
- 02:20 – Appraisers have many regulations that go into how they come up with their value estimate. Agents typically only look at the number and any required repairs, but there is so much more in the report.
- 03:05 – We don’t need to get into the “weeds” on the rules, because they are not applicable to agents. It is worthy to be aware of the general principles and who the regulators are.
- 03:28 – USPAP: Uniform Standards of Professional Appraisal Practice; the appraiser’s “bible”. Does not talk about adjustments or comparable selections.
- 04:25 - URAR and other reports made by Fannie Mae and Freddie Mac. They have expectations of what they want to see in a report.
- 05:20 – FHA and VA have their own rules that get into what to inspect and note.
- 05:48 – Underwriting overlays: every loan has appraisal criteria that they expect to see in the appraisal report.
- 06:25 – Important to know because lender is taking on risk, and the appraiser must “sell” the appraisal report to the lender.
- 07:00 – If my report does not match up to the regulations and requirements, the report will get through underwriting and your client will not get the loan.
- 07:30 – Appraisal practice is complicated. Your CMA may show a number but it will not make it through the lender’s muster.
- 07:50 – Give appraisers a little bit of a break. We are not your enemy. We have to write a credible report that the lender will accept.
SHOW LINKS
- USPAP – https://www.appraisalfoundation.org/imis/TAF/Standards/Appraisal_Standards/Uniform_Standards_of_Professional_Appraisal_Practice/TAF/USPAP.aspx
- URAR Report – https://singlefamily.fanniemae.com/media/12371/display
- Fannie Mae – https://en.wikipedia.org/wiki/Fannie_Mae
- Freddie Mac – https://en.wikipedia.org/wiki/Freddie_Mac
- Underwriting Overlays – https://gofirstnations.com/what-is-an-underwriting-overlay/
- Pass muster – https://idioms.thefreedictionary.com/pass+muster
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 053 - Lender Risk and The Appraiser "gods"?
Before we talk about valuation topics, comparable selection, and making adjustments, we have have to get a few things out of the way. This episode focuses on one basic concept, Risk! The lender is loaning a bunch of money and are relying on several factors to ensure they are making a good loan. The appraisal is part of that process and the appraiser has some power and a lot of responsibility. Agents need to understand that part as that risk can be a heavy burden for the lender and that appraiser.
SHOW NOTES
- 00:40 – First new episode in the reformatted podcast. What is the appraiser’s job?
- 00:58 – Two important pieces: The power that appraisers have and the risk that lenders take on in giving a loan.
- 02:00 – Lenders want to know the risk of the property. Many areas of risk for the lender like credit, debt, and income.
- 02:35 – Lender looks to appraiser about the property’s value and the condition.
- 03:20 – Lender does not necessarily care what the buyer and seller think the value of the property.
- 03:53 – Appraisers sometimes think they are gods, but the appraiser has the power to tell the lender, “write the check.”
- 04:22 – Appraisers take that as a huge responsibility and stress about the value and a good report.
- 04:45 – Appraisers are not out to “kill” the deal, and lender has hired the appraiser to give them a good, credible report.
- 05:20 – The appraiser says write that check and my report gives the lender the confidence in making that loan.
- 05:40 – Some reports and appraisers can be a pain, but the bigger issue is recognizing the risk in making a loan.
- 06:20 – B offers to write checks out of agent’s account.
- 06:30 – Not arrogance, because we have the power, we take it seriously.
SHOW LINKS
- What is an appraiser’s job? - https://www.thebalancecareers.com/what-is-a-real-estate-appraiser-525677#:~:text=A%20real%20estate%20appraiser%20estimates,of%20several%20properties%20at%20once.&text=He%20or%20she%20will%20be,taxed%2C%20insured%2C%20or%20developed.
- Are appraisers gods? - https://tombrezsny.wordpress.com/2010/10/09/appraise-the-lord/
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 052 - New Year, New Podcast Theme
Updating our podcast for 2021 to focus on real estate appraisal, valuation, and CMA preparation. Discussing how agents can better understand those pesky appraisers, and how to better price property. Out with the old, in with the new is what this episode is all about.
SHOW NOTES
- 00:24 – Friendly neighborhood…spiderman?? No, I’m the friendly neighborhood appraiser.
- 00:50 – Welcome to crazy 2021.
- 01:05 – Last year the podcast was slightly different. Broad spectrum real estate things.
- 01:50 – Going forward we will focus on appraisal related items.
- 02:50 – Listen to the past two episodes (Ep. 50 and 51) for the reasons for the shift.
- 03:20 – Podcast is created for real estate agents. We welcome appraisers and anyone else to listen.
- 04:10 – Helping agents write better CMAs.
- 05:00 – This episode was recorded to “reintroduce” the “new” podcast theme toward appraisals and valuation. Breaking from the past in a way.
- 05:15 – Changing the podcast schedule: Originally was going to be a longer, monthly episode. Instead, the episodes will be released weekly and will be short, digestible topics.
- 06:15 – Will interview some great guests to help agents understand the valuation process.
- 06:35 – Working more on our YouTube channel. Releasing videos on specific appraisal related items that cause confusion.
- 08:05 – Encourage your questions! The podcast will respond to your questions. I want to know what you want to know about. Email me at brian@brianclee.com
SHOW LINKS
- Friendly Neighborhood Spiderman – https://www.youtube.com/watch?v=uSngLi909dw
- Marvel – marvel.com
- Brian vs. Bryan – https://en.wikipedia.org/wiki/Brian#:~:text=Brian%20(sometimes%20spelled%20Bryan%20in,high%22%20or%20%22noble%22.
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 051 - How We Changed Brokerages and Farewell to BTL? PART 2
All things must come to an end…or do they? In this 2-parter, we talk about change and how it leads to new beginnings!
In this episode, Brian and Cate talk in-depth about where they are headed and how the podcast will change going into the new year.
Listen to Brian and Cate's story of "up and downs", "pros and cons", and the wide range of emotions those bring. All of that is happening while Brian and Cate are making decisions changes that will affect their professional lives.
Don’t worry…BTL isn’t going away, it's simply transforming into something better. Find out exactly what it's morphing into on this episode!
SHOW NOTES
- 01:00 – STOP! If you haven’t listened to part 1, go back and listen before you continue!
- 02:37 – Part 1 we talked about where we have been and have gone through. We are now talking about where we are headed.
- 03:00 – Did you notice that the Intro got changed up?
- 03:40 – The song of the episode: “Good Riddance (Time of Your Life)", Green Day.
- 05:42 – B is an appraiser. Why? Financial. Most people only know B as an appraiser. Not going to fight that anymore. Sticking with his strength.
- 08:35 – Cate: the general real estate world sees B as an appraiser. Still has the school. Will still teach and will still answer all questions.
- 09:30 – Cate bragging on B and Producer Christian is happy.
- 10:25 – The school will grow with a new agent, and more online options.
- 11:25 – The podcast is stick around but will change. Episodes have been weekly. Going forward: Real Estate Appraisal Between the Lines, only about appraisals. Future episodes will occur in "the real world" and out in the field.
- 13:23 – Working on video that will supplement the podcast and be found on YouTube.
- 14:30 – We've had weekly episodes. Going forward the episodes will be released monthly. In the past they have run about 20 to 30 minutes. Going forward there will be fewer episodes but slightly longer with more detail.
- 15:44 – Producer Christian: not a firm outline. We will still have a few guest interviews and other topics, but this podcast is designed around helping agents with valuation issues.
- 17:56 – It is Cate’s "Side Note/Tangent" time: Television show finales. Producer Christian liked MAS*H. B liked "Star Wars: Clone Wars" and "Rebels".
- 22:00 – Cate will be changing too and focusing on her real estate career. Listeners LOVE Cate.
- 23:35 – This episode will be Cate’s last regular episode. She will be back again in the future.
- 26:00 – Bidding farewell, she will be missed, and thank you Cate! Love you, B!
- 27:13 – Quote of the episode: “Be who you are and say what you feel because those who mind don’t matter and those who matter don’t mind.” - Dr. Seuss
- 28:16 – Closing: the podcast and recent events have been a whirlwind but we look forward to our future. Thank you to our listeners for your patience, understanding and loyalty.
SHOW LINKS
- Beatification – https://en.wikipedia.org/wiki/Beatification
- Green Day, “Good Riddance (Time of Your Life) – https://www.youtube.com/watch?v=CnQ8N1KacJc
- Indiana Real Estate Institute – https://www.indianarealestateinstitute.com/
- Sarah Ragsdale – https://www.craftsmanrg.com/about-sarah
- Top 20 TV Show Finales – https://www.titlemax.com/discovery-center/lifestyle/100-tv-shows-ranked-by-their-final-episode/
- Sons of Anarchy – https://www.imdb.com/title/tt1124373/
- MAS*H Finale – https://www.youtube.com/watch?v=rvBS0VqJPXs
- Clone Wars – https://starwars.fandom.com/wiki/Star_Wars:_The_Clone_Wars_(TV_series)
- Star Wars Rebels – https://www.starwars.com/series/star-wars-rebels
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 050 - How We Changed Brokerages and Farewell to BTL? PART 1
All things must come to an end…or do they? In this two-parter, we talk about changing things, then moving on to new beginnings.
In this episode, Brian and Cate talk in-depth about what they have been doing for the past couple of months, including joining a new brokerage. B is appraising again and the podcast is changing to reflect those new realities.
Listen to Brian and Cate's story of the "up and downs", "pros and the cons", and the wide range of emotions that they go through while making changes that affect their professional lives.
Don’t worry…BTL isn’t going away, it is simply transforming into something better. Enjoy the episode!
SHOW NOTES
- 00:45 – Welcome back after a long hiatus from the recording studio.
- 01:37 – We are recording from Studio Q because Cate had “rona”. B is a like a superhero…or a super spreader.
- 02:35 – Discussion about “basement” vs. “lower level” vs. “dungeon” vs. “cellar”.
- 02:55 – Hit the “golden” episode 50.
- 03:30 – Movie Flash Gordon. Sherlock Holmes: Game of Shadows.
- 04:40 – Song of the Episode: “So Long”, Sound of Music; Producer Christian went on the Sound of Music Tour in Europe
- 06:00 – “Our Feet Are Same”, Auf wiedersehen.
- 06:40 – We are back. Thank you for your patience. We want to tell you about what has happened.
- 07:10 – History of the most important person: B.
- 07:44 – B has been an appraiser; owned a real estate company since 1998; real estate instructor.
- 08:20 – Cate in real estate since 2003 with a big brokerage firm and joined w/ B in 2016.
- 09:05 – More recent changes in January 2020; focus was changed so B wouldn’t appraise as much because he was worn thin. Went from 60 to 70 appraisals per month to about 10 per month. Focused on the real estate school.
- 10:25 – Early 2020 we started this podcast.
- 10:40 – Late summer 2020, we made a huge change with our brokerage. We were happy with our brokerage but were lacking some resources that our agents were missing. We interviewed several large firms.
- 11:45 – After interviewing with many companies, we chose to align with a local Re/Max franchise.
- 12:10 – Cate: They added brand awareness, national seminars, training possibilities. Benefits of both worlds: we kept our family “feel” with our agents and added the power and benefits of a national brand.
- 12:40 – Been focused on the decision and transition, which is what we will discuss later in this episode.
- 13:00 – Many agents typically consider making a move at the end of the year and we wanted to share our history and what we have gone through to make the change.
- 13:48 – Producer Christian: has met with many agents that have considered switching brands and brokerages. End/Beginning of Year considerations.
- 14:12 – Many reasons agents consider making the change at the end of the year. Slowed business and commission structure.
- 14:42 – B is getting back into appraisal work to get back into doing more of that type of work.
- 15:20 – Producer Christian: even through the podcast, we get a lot of response from the appraisal episodes, which is a foreshadowing of our future. They see B as an “expert.”
- 16:00 – Cate’s Side Note Tangent: Statistics. B is excited! Stats: average real estate agent changes brokerages 3 times in 10 years. October 2020 there were 1.4 million REALTORS; 64% of them are females; Average age is 55 (B was a little off); Median experience is 9 years; 20% of agents have had their license for one year or less; Average income for those that work 20 – 39 hours: $46,500; Average income for agent that works 60 hours is $145,000 per year. Average agent sells 12 homes per year.
- 18:53 – Why did we make the switch? Cate hated B. No amount of money we could spend that would match the national firm’s offerings. Our why was to fill in the gap for the 10% to 15% we could not provide.
- 21:50 – How? Negotiated with the owner to get what we wanted and what we didn’t want. Important to keep what we had. Values; Ethics over money; Help with the transition for us and our agents.
- 22:50 – B & C had very heated discussions about making the switch. We did this because we were working too much, being the only resource for our agents, became impossible. Lost some agents, but part of what we knew had to happen.
- 23:49 – Cate: we felt disappointed that we couldn’t provide everything. Letting go of our real estate company.
- 24:28 – Personally was very emotional. Cate is not a businessperson and business is not in her heart. She tolerated it.
- 25:20 – Concerned about our agents and we were going to “lose” Cate if we didn’t make this change. She was dutiful soldier and was drowning.
- 26:10 – Cate: felt like we were disappointing our agents, each other. We had to let go of some control and hand off some of the responsibility.
- 26:50 – We wanted to maximize our skill sets and focus on those specific skills.
- 27:18 – Producer Christian – logical reasons to make the switch; more important is how you feel. Look at your heart and your gut. Something has to be there mentally to make that shift. Need some emotional fuel.
- 28:20 – The change is a pain, so be prepared mentally. Cannot focus on the current pain. Focus on why we made that change. Agents have to figure out what is most important.
- 30:00 – The emotional stuff is HUGE!
- 30:20 – Costs: negotiate for business cards, signs, social media, websites, etc. Voice mail message. Clothing.
- 31:40 – Lack of control. What Cate said, B had to do. We are not the owner anymore. Rules on advertising. Good side is we don’t have to make some of those decisions.
- 32:55 – Changes to paperwork, commissions, and accounting.
- 33:47 – We kept our “virtual office” and added physical locations. Big change: we lost some agents. We hated that it happened, but it was for the greater good.
- 35:12 – Cate: individual agents may lose some clients with the change. It will end up washing out, but emotionally it can be a loss. Lose part of our “family”.
- 36:10 – From a pure business standpoint is easier to process but prepare for the emotional ride.
- 36:48 – During this change, B’s school was making a huge rebranding change.
- 37:20 – Even though it was tough, we see the light and the benefits.
- 38:00 – What happens to this podcast? We are leaving you with a cliffhanger. Part 2 next week we will get more into what things will look like in our future.
- 38:56 – B’s Quote of the episode: “That which does not kill us makes us stronger.” -Nietzsche
SHOW LINKS
- Flash Gordon movie end – https://www.youtube.com/watch?v=zQOjNXw4yPo
- "Sherlock Holmes: Game of Shadows" ending – https://www.youtube.com/watch?v=LUL4twCGxcg
- Sound of Music, “So Long” – https://www.youtube.com/watch?v=-nRU5RIDWXU
- "Sound of Music" Tour in Austria – https://www.panoramatours.com/en/salzburg/tour/original-sound-of-music-tour-tour-1a-28/
- Re/Max – https://www.remax.com/
- Price is Right wheel – https://www.youtube.com/watch?v=hp1a0BHmyc0
- Dotloop – https://www.dotloop.com/
- Did Luke kiss his twin sister? – https://www.cnet.com/news/mark-hamill-tells-how-luke-really-felt-about-kissing-his-sister-leia/#:~:text=It's%20well%20known%20that%20Star,%22The%20Empire%20Strikes%20Back.%22
- Friedrich Nietzsche – https://en.wikipedia.org/wiki/Friedrich_Nietzsche
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 049 - Get Organized in Business, Money and Life REPLAY
As we come to the end of 2020, we're looking back on some the episodes that received the most response. This episode features one of Brian's favorite topics: getting and staying organized!
Before you run, you must first learn to walk. I dislike that saying because I just want to hit it hard right out of the gate. However, I have learned--the hard way--that planning and being intentional saves time, money, energy and stress. Let Cate and I help you get organized so you can become a legendary agent that stands above the crowd.
SHOW NOTES
- 00:20 – Nothing is more “fun” that getting organized.
- 00:40 – There is not one path that everyone must follow to be great. Everyone has a different need. Anyone that says, “this is what you need to do” is likely wrong because they don’t know you and what you need.
- 01:22 – Business, money, and life are tied together. If don’t have all three, you will likely lead to ruin. Work/Life balance. Cate: “If you’re not enjoying life, what is the point?”
- 02:10 – Your clients will sense your desperation and misery and won’t respond well.
- 02:35 – What is holding you back? You have to answer that for yourself. Take an introspective look.
- 02:50 – SWOT: Strength, Weakness, Opportunities and Threats; Where do you fall in that acronym.
- 03:50 – Ask for help from family, friends, other agents, etc.. Outside perspectives may help you to see what you can’t about yourself. We are our own worst critic. The outside perspective might help you see more of yourself.
- 05:30 – Don’t be generic. Be specific. What do you need? Marketing, money is not specfic.
- 06:55 – Income is not solely something that you acquire. Are you budeting your money well? You are likely throwing away money that you have already earned and hurthing yourself.
- 07:50 – Your life and personal side plays into a huge part in your work success.
- 08:10 – Work Life Balance. Our industry is a lifestyle. Getting personal fulfillment. Cate: “Be intentional about the things that fill you up.”
- 09:40 – The real estate business will beat you down. It is relentless.
- 10:15 – Movie, “Rocky” quote. How hard can you get hit and keep going forward.
- 11:50 – Be proactive, not reactive. Some things you can change and some things you can’t.
- 13:30 – “Intentional” defined: done on purpose
- 14:30 – You will have an off day. You are creating new habits. Pick yourself back up and move forward.
- 15:05 – You are NEVER alone. You are not the only one struggling with the same thing as you.
- 17:00 – You are going to have struggles that you don’t expect. Know that they could happen.
- 17:45 – Make this about your dream. Not someone else’s dream. Judge your life against your own, not others.
- 19:10 – Stop making excuses. Do something about it. Make the future you love what you do today. Don’t hate the past “you” because you can’t change that past.
- 21:00 – WRITE IT DOWN! Vision boards. Create a reference for you to track and go back to.
- 21:20 – Cate: Categorize your life in four areas: Family, Career, Financial and Personal.
- 22:45 – What is your “why”? “Why am I doing this?” Vision board will help remind you.
- 23:30 – Get an accountability partner. Accelerate yourself by having someone who will help and push you.
- 25:05 – “Board of Directors”, meet with them regularly. Partner with other agents.
- 26:30 – Meeting ideas: 3 wins, review last week’s tasks, set next week’s tasks.
- 27:00 – YOU ARE WORTH IT!
SHOW LINKS
- dictionary.com
- befunky.com
- https://www.youtube.com/watch?v=D_Vg4uyYwEk
- https://www.businessnewsdaily.com/4245-swot-analysis.html
BETWEEN THE LINES LINKS
briancleebtl@gmail.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 048 - Use Your Words REPLAY
As we come to the end of 2020, we're looking back on some the episodes that received the most response. This was the 6th episode we ever recorded and Brian injects some much-needed emotion into the topic of how we treat our customers and colleagues.
“Give me the title work.” “I need the listing sheet emailed to me.” Are we really that rude? Our words matter! How we present ourselves to our clients and to other industry professionals can the set the tone for this transaction and all future business. In this episode we talk about ways to improve our communication and be the professionals our clients and industry expect. LISTEN TO IT NOW! (ha ha)
SHOW NOTES
- 00:35 – “Cate! Go get me a sandwich!”
- 01:25 – Maybe it’s intentional or unintentional, but the way we speak comes off as very rude. Maybe you're busy, kids are yelling in the background, or you're writing something quick.
- 02:55 – Shouting seldom get’s what you want in the real estate industry. Kind words will usually get you more of what you want and “need”.
- 03:30 – Music lovers unite…new segment to make the podcast more personal. Every episode will include a song that ties into the episode.
- 04:25 – Introducing Producer Christian (italicized for the disdain in enunciating his name).
- 05:05 – “What was your first concert?” Cate: Bon Jovi; Producer Christian: Doobie Brother w/ special guest Little River Band; Brian: Neil Diamond, B’s first concert and took his mom on a date, too.
- 07:55 – This week’s podcast episode song is by Metallica, “Fuel”.
- 09:35 – B & Cate’s shirt
- 11:10 – Getting into the content…FINALLY!
- 11:20 – Do you have any manners? "Please" and "thank you" are still okay to say. Gives you professionalism and will get you things.
- 12:10 – Smile when you communicate. Face-to-face, text, email, phone...doesn’t matter...SMILE.
- 14:25 – Yelling and tantrums don’t work. Might “grease the squeaky wheel” but won’t get what you want. Maybe you’re mad about something that you don’t understand or just part of the situation that can’t be changed, controlled or helped.
- 15:25 – Cate: keep a calm head. You can’t change other agent’s attitude. Guide your client with a cool demeanor and they will likely follow your lead.
- 16:30 – Respect is earned, not given. Your words and actions establish who you are. “You get more flies with honey than with vinegar.” Being mean seldom gets you what you want.
- 17:00 – Mulitple offer situations can push the agent with a bad demeanor out of contention.
- 18:30 – Create raving fans by putting their offers in the spotlight with positive attitudes, complimentary comments, etc.
- 19:30 – Mid-episode break; Cate’s “Sidenote/Tangent”: Famous house in Top Gun...with a sidenote, sidenote tangent.
- 23:10 – Problems with technology and communication: texting, email, etc. Someone infers a negative comment even though you didn’t intend it to be negative. Maybe a phone call is better.
- 24:20 – Cate doesn’t like the word, “Sure” in a text.
- 25:00 – Autocorrect fails.
- 26:00 – Communication apps that can help: Voxer, SlyDial and Bomb Bomb. Watch for bonus content about those apps.
- 26:40 – Social media concerns
- 26:50 – Sometimes you do need be angry about a situation. Act appropriately.
- 27:30 – Use an "accountability partner" to vent. Refrain from venting to your client or the person you are mad about.
- 28:00 – Weekly Quote from B: “Your words have power. You can use them to either benefit yourself, or use them to benefit others.” Benefit others rather than yourself.
- 28:45 – Closing. Use your words. Remember your kids are watching.
SHOW LINKS
- 80’s Hair Band: http://hairbands.xyz/bands/
- Top Gun: https://youtu.be/AfDZc99N5Tg
- Steve Amell, Actor on “Arrow”, DC universe, "Sinceriously"
- Hangry: https://youtu.be/bMLRKpoz8f4
- Movie, “UP”, squirrel scene: https://youtu.be/xrAIGLkSMls
- Top Gun house that is a national monument; New Point Loma Light House: https://goo.gl/maps/iKkycrYKgFaEi9s38
- Voxer: https://www.voxer.com/
- Slydial: https://www.slydial.com/
- BombBomb: https://bombbomb.com/c/
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 047 - Are Appraisers the Devil? PART 3 REPLAY
Are you a Netflix binge-watcher? Then, we have a 3-part binge worthy-listening opportunity for you! In our 3-part series all about how to more effectively price properties, we dive into understanding more about the appraisal process.
Part 3, similar to a great Star Wars Trilogy, ends with a triumphant conclusion of how to more successfully challenge an appraisal. Preparation is key here as Jedi Mind Tricks won’t work on the strong-minded.
We talk about what to share with an appraiser; how to present it; and what to include with an appraisal packet. If you want better results in appraisal reports, be proactive!
Be sure to watch our accompanying breakout video where B explains what to include in an appraisal packet. No, appraisers aren’t the devil! They provide a service. Understand how the appraisal process works and what is expected, and you'll get better results in your next appraisal.
SHOW NOTES
- 01:00 – B & Christian side with horns and Cate with her halo.
- 02:25 – Song of the week: It’s What you Value, George Harrison
- 05:03 – Part 3, How to prepare for an appraisal and how to challenge an appraisal more successfully.
- 05:33 – Ask B for document about how to prepare for an appraisal.
- 06:27 – Have your home “showing” ready. Make sure access to all areas of the home is available. Leave a ladder. Make sure utilities are on.
- 06:55 – Question: Should anybody be at the home? Probably not, they are distractions, talk about things you don’t want appraisers to hear.
- 07:51 – Cate: has a checklist to prepare for appraisal. Make sure car is not in garage blocking attic, etc.. Stay out of appraiser’s way.
- 08:50 – A checklist and a reminder to help homeowner prepare.
- 09:10 – Leave an appraisal packet (watch B’s breakout video on what to include). Be proactive, not reactive.
- 09:45 – Typically, if agents leave anything, it is only comparables and that is not enough. Appraisers have comps already, unless you know of something that is hidden or unavailable.
- 10:25 – Have an adjustment grid that includes comparables on a grid and have been adjusted. Gives you a legitimate response to get the number you want.
- 11:15 – Have a list of updates. Helps appraiser “sell” the report to the lender. Include an explanation.
- 11:45 – Cate: What about cookies? The size of the bottle of Captain Morgan is directly proportionate to the value.
- 12:47 – Cate: appraisers are human. Make home welcoming. Present home well. The appraiser will leave with a better feeling about the property.
- 14:10 – B got bit by a dog and didn’t leave the house with a positive image. Value was fine though.
- 14:26 – Cate’s Side Note Tangent: Cate had a buyer with a high list price. She called Super B, the best appraiser in town. Cate ALLEGES B didn’t know how to appraisal the property.
- 18:00 – How to challenge an appraisal MORE successfully.
- 18:10 – Listen to part 1 & 2 for some guidance on how to get ahead of issues.
- 18:39 – Make sure you and the appraiser are comparing apples-to-apples. Do you both have the same square footage, room count, updates, etc.
- 19:16 – Who is right? Appraiser or assessor? B is ALWAYS right. It should be the appraiser, but not all are equal. Some do not measure the property.
- 19:50 – Cate: Appraiser should be sketching the property, whereas the Assessor does not visit or measure the home.
- 20:10 – Look at the comps and get ahead of issues. Divorce, size, condition, etc.
- 20:55 – Cate: multiple offer situation. Buyer offers above list price, prepare them to see if they ready to come up with the difference in cash if the appraisal does not come in at purchase price. Write it in the offer to make it stronger. Price isn’t the only factor. Make clean offer. Negotiate other items. Seller might not want to accept over list price from buyer if appraisal is presumed to be an issue.
- 22:10 – Prepare for all things that could happen.
- 22:26 – Quote for the podcast: “There are some things money can’t buy…like manners, morals, integrity and professionalism.” -B Be the professional and your business will thrive. Get the appraiser good information at the right time.
- 23:12 – Closing: Have home ready for appraiser. Leave solid data. Challenge with solid evidence. Make sure everyone is making an apples-to-apples comparison. Are you on the same page?
- 23:55 – Thank you for listening to our 3-part series and will have more in the future. Make your day legendary!
SHOW LINKS
- It’s What you Value – https://www.youtube.com/watch?v=KL6UsDlO86E
- Beatles White Album sold in 2015 $790,000 – https://www.businessinsider.com/ap-rare-pressing-of-beatles-white-album-sells-for-790000-2015-12
- Jim Irsay bought Ringo’s drum kit – https://www.rollingstone.com/music/music-news/colts-owner-why-i-paid-2-2-million-for-ringo-starrs-drum-kit-60879/
- Cotton Candy Grapes – https://en.wikipedia.org/wiki/Cotton_Candy_grapes
- Captain Morgan – https://www.captainmorgan.com/en-row/
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 046 - Are Appraisers the Devil? PART 2 REPLAY
Are you a Netflix binge-watcher? Then, we have a 3-part binge-worthy listening opportunity for you! Welcome to our 3-part series all about how to more effectively price properties. In this series, we "deep dive" into understanding the appraisal process.
In today's episode--PART 2--we show you how to write a better CMA and what an appraiser is thinking about when they're evaluating the data. We discuss items like comp selection, gridding comparables, and adjustments to give you a better handle on the valuation process.
Be sure to watch our accompanying breakout video as B explains the difference between "Qualitative" and "Quantitative" adjusting. Sometimes, it's the little things that can make the difference between a good and a great CMA.
No, appraisers aren’t the devil! They provide a service. If you can understand how the appraisal process works and what is expected, then you'll get better results in your next appraisal.
SHOW NOTES
- 01:10 – B represents the appraisers and Cate the “angel” is here to represent the agents.
- 01:40 – Song of the week: Devil Went Down to Georgia, Charlie Daniels Band
- 02:40 – Christian: name one other Charlie Daniels Band song? “In America.”
- 04:15 – How to create a CMA: comp selection, gridding comparables, adjustments and reconciling.
- 04:38 – Cate: CMA is a comparative market analysis; not an appraisal.
- 05:22 – Christian: how close is the appraised value to a CMA value.
- 06:18 – CMA is “rudimentary” or as detailed as an appraisal. CMA doesn’t have much regulation. Appraisal will have more detail.
- 07:40 – CMA should look “more” like an appraisal report in the steps.
- 08:00 – Appraiser may not choose the same comparables as the agent due to appraisal requirements and guidelines that the agent is bound by.
- 08:30 – B’s example of ranch home being appraised and what comp might be needed for value AND for underwriting.
- 09:45 – Cate: doesn’t make sense to use the 2-story comp, but appraiser has to make the underwriter happy.
- 10:08 – Comparable searches should start with the major variable such as size, bedroom count, design, lot size. Realize you are not going to always find the most ideal comparable properties.
- 10:55 – Complicated property or an area without a lot of comparable sales: use the “floor” and “ceiling” method. Find a comp that is better overall than your property that sets the ceiling (high number), my home is NOT worth more than that property. Find comp that is inferior overall that sets the floor (low number), my home is worth MORE than that property. Sets a range to work within.
- 12:22 – Cate: as a newer agent, floors and ceilings is a great way to practice. Helps when presenting to seller and buyer.
- 13:03 – Helping people understand and see the numbers. Searching for comparables is tough.
- 13:27 – Consider using pending, listings and expired listings to help. They are not ideal but can be helpful.
- 13:47 – Cate’s Side Note Tangent: fiddles (aka violins) appeared about 1,100 years ago. Fiddle is more for dancing and violin is more for the classical music playing.
- 14:55 – Cate: did you play an instrument? B – bass guitar; Christian – played drums his whole life; family played in a house band and got to meet many famous country music singers. Super B did not sign his autograph book.
- 17:40 – Properly grid comparables is HUGE! B is right every single time! You’re right B.
- 18:40 – Having the comps on a grid allows you to see all the element of comparison so you make a more critical look at the properties.
- 19:05 – Excel spreadsheet that agents can use. Email B if you would like a copy of that grid.
- 19:30 – Apply the adjustments. What is a fireplace worth? The adjustment is the LAST thing you need to worry about. The adjustments will make little difference comparables to the property you select as comps and how you grid them.
- 20:05 – Adjustments are extremely hard to argue for or against and hard to make a claim on the adjustment number. Look at the other parts of the value to make the stronger appeal.
- 20:30 – Cate: start off with baby steps; pros and cons to each property.
- 21:10 – Qualitative versus Quantitative adjusting. Qualitative is must more effective: is the element in the comparable (ex. fireplace, garage, basement) better, worse or the same as the subject. That is an excellent place to start.
- 21:38 – Cate: the adjustments are always made on the comparables, not the subject.
- 22:00 – Foreshadowing: CBS and CIA. A good memory tip to keep your adjustments in line.
- 22:13 – Last part: Reconcile your value. EXPLAIN what you did. Why do you like your comparables? Why did you do what you did? What is your rationale?
- 23:06 – Cate: describe things the appraiser may not know. Home next door sold but had a flooded basement. Similar property in the subdivision had high motivation.
- 23:20 – Example: comp across the street that was, on paper, a similar property. However, the sellers were divorcing, and the condition was not the best. None of that known by the public.
- 24:08 – Cate: appraisers are human! They must follow certain guidelines. Communicate with your client to set expectations. Offer as much information as you can to the appraiser to make their job easier.
- 24:48 – Quote of episode: “Value what you bring to the table. It may not be everything, but your anything is better than other people’s nothing.” Do not let your lack of knowledge keep you from being legendary. We all started somewhere.
- 25:37 – Focus on comparable selection with floors and ceilings; properly grid those comparables to prove to yourself the numbers; know that adjustments are required but are not the be all, end all; lastly, RECONCILE your number; explain what you did.
- 26:10 – Closing, part 3 is next week. Make your day legendary!
SHOW LINKS
- "Devil Went Down to Georgia" – https://www.youtube.com/watch?v=wBjPAqmnvGA
- "In America" – https://www.youtube.com/watch?v=Hm4_rXQAyLM
- What is a CMA? (realtor definition) – https://www.realtor.com/advice/sell/understanding-the-comparative-market-analysis/
- What is the CMA? (Country Music Awards) – https://cmaawards.com/
- What is CMT? – http://www.cmt.com/
- Violin vs. Fiddle – https://www.zaretandsonsviolins.com/blog/what-is-a-violin-and-what-is-a-fiddle-25312
- Step Brothers movie: “Did you touch my drum set?” – https://www.youtube.com/watch?v=Fpa5ReX0QFA
- Sing Kumbaya - https://www.youtube.com/watch?v=IAIq9fGGDfc
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 045 - Are Appraisers the Devil? PART 1 REPLAY
Are you a Netflix binge-watcher? Then, we have a 3-part binge-listening opportunity for you. Welcome to our 3-part series, which is all about how to more effectively price properties. We also dive into understanding more about the appraisal process.
In Part 1, we give you tips on working with the appraiser and providing information about rules and guidelines that they must follow. Those “rules” are often misquoted, misunderstood, or sometimes flat out wrong.
Be sure to watch our accompanying breakout episode where B explains why the "price per square foot" method to valuing property is incorrect. You don’t buy cars by weight, why are you selling homes by their size?
No, appraisers aren’t the devil! They provide a service. Understand how the appraisal process works and what is expected, and you'll have better results in next appraisal.
SHOW NOTES
- 01:47 – Are appraisers the devil? Angel agents represented by “angelic” Cate.
- 03:30 – Song of the podcast, “Devil Inside” by INXS.
- 04:13 – B’s own “side note tangent” (not stealing Cate’s theme song); best High School party ever: "Downstairs at B’s".
- 06:00 – B is an appraiser is definitely not the devil…unless you mean devilishly handsome.
- 06:10 – Appraisers are not out to get agents or “kill the deal”. B admits appraisers go to evil appraisal school.
- 06:48 – What makes agents mad is the misunderstanding and lack of knowledge in the processes and expectations. All professionals have rules and requirements. Let’s talk about those.
- 07:42 – An appraisal is an OPINION of value. Appraisers work for a client, typically the lender, and is used for the underwriting purposes to judge the collateral for the loan.
- 08:50 – Cate: pass along this information to the client (buyer, seller). Appraisal is for the lender.
- 09:15 – Value is based upon what the greatest number of buyers, not what one buyer will pay for it. Not just what your buyer thinks.
- 10:25 – Cate: The lender doesn’t care about your client’s opinion. The “golden rule”.
- 10:36 – The appraiser has to “sell” the report to the underwriter/lender. They can write a report with the number everyone wants, but if the lender doesn’t believe it or find it credible, your clients won’t get the loan.
- 11:20 – Cate: had this happen to her. Appraisal met the purchase price, but the lender didn’t like the report and threw out the report.
- 12:08 – Christian: big multi-parter
- 12:40 – Can you talk to the appraiser? YES you can! There is a “good” time and a “bad” time. Know the difference and use it to your benefit. The good time is before the report is written and transmitted to the client (lender). Bad time is after that event.
- 14:10 – Cate: Side Note Tangent, Cate and B’s first meeting set the tone for the rest of their relationship…B came in “low” on one of her listings. Appraisal came in at “market value.” Christian is seeing the healing.
- 16:55 – How to communicate with an appraiser? BE NICE! You get more flies with honey than you do with vinegar. Don’t come at the appraiser with anger.
- 17:49 – Use kind words, but also bring helpful data. Give your thought process. Give evidence. Appraisers are not interested in your opinion without something to back it up. Only providing comps is not enough. You don’t like what the appraiser has done, explain why.
- 18:50 – Christian: flies and honey went out the window. Appraisers really are the devil.
- 19:07 – Cate: back up your data. Tools are available to run stats and analyses. Trend analysis.
- 20:00 – Christian understands that appraisers are human too and have feelings. If only Cate understood. Sigh…
- 20:50 – Rule vs. Guideline issues. Most of the time rules are NOT rules but rather they are guidelines, such as time and distance parameters.
- 22:15 – “I can’t use that comp.” is usually meant that the appraiser doesn’t “want” to use it, not that that they “can’t” use it.
- 22:35 – Cate: lender may have a rule or guideline so keep that mind as that can affect the appraisers work process and comp selection.
- 23:00 – BREAK OUT: Don’t use price per square foot for your valuation. We don’t buy cars by weight. Don’t sell your homes by size.
- 24:40 – Pretentious Porsche lovers vs. Camaro guy.
- 25:27 – Inspiring quote: Where there is no knowledge, there is no value.”
- 26:10 – Appraisers really are saint-like. Understand the appraisal process. Knowing the good and bad time to talk with the appraiser. Communicate useful information to the appraiser. Know appraisers must “sell” their report to the lender.
- 27:05 – Closing, part 2 is next week. Make your day legendary!
SHOW LINKS
- INXS, “Devil Inside” – https://www.youtube.com/watch?v=hv_zJrO_ptk
- Yaz, Upstairs at Erics – https://www.youtube.com/watch?v=tLTGs4fqxBk&list=PLjIuADMrDKIaJThxTsBFO7d-tIiZfSsli
- Definition of an Appraisal – https://en.wikipedia.org/wiki/Real_estate_appraisal
- The Golden Rule – https://quoteinvestigator.com/2015/01/11/has-gold/
- Car and Driver review, Porsche Taycan vs. Tesla Model S Performance – https://www.caranddriver.com/reviews/comparison-test/a30799498/2020-porsche-taycan-turbo-s-vs-2020-tesla-model-s-performance/
- Camaro ZL1 vs. Porsche GT3 – https://fastestlaps.com/comparisons/bdcelcp2skpk
- @ProducerChristian on Instagram - https://www.instagram.com/producerchristian/
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 044 - Interview with Accounting Expert Kim Storen PART 2
Accounting! What topic could be more fun than accounting and taxes? Maybe watching grass grow or paint dry? Well, we have a special guest discussing those topics--and more--for two episodes! Believe it or not, she brings life to the subject of taxation!
Kim Storen from Storen Financial is a breath of fresh air, especially after listening to B bloviate for 42 episodes. In PART 1, Kim gave us tips and suggestions to prepare for end-of-year tax items. In PART 2, Kim discusses questions she frequently gets, such as Meal and Entertainment, Leasing vs. Buying, and Home Office Deductions
It's never too late to make changes or find a better plan to save money and make wiser financial decisions. In this timely episode, hear more about how to make better choices to run your business intentionally.
PROGRAMMING NOTE: the YouTube video of this episode includes our favorite Podcast Pup Jack-Jack, a stray cricket on Kim’s headphones, and a special treat at the very end!
SHOW NOTES
- 01:20 – Ep. 44; we brought back Kim Storen. Be sure to listen to last week’s episode. Taxes are Fun!
- 01:55 – Cate: let Kim go on all day. Christian: she only gets 28 more minutes. Take that Cate!
- 02:22 – Song of the Episode: Johnny Cash, “After Taxes”.
- 03:03 – Christian never saw Johnny Cash, but saw his brother Tommy Cash. (Christian note: After the show was recorded, we learned that Tommy Cash is also a real estate agent in Nashville and sold Johnny’s home after Johnny passed away.)
- 04:00 – Lyrics to "After Taxes"…and Kim is visibly shaken.
- 05:02 – Kim Storen: Eric Church fans search the notes below him at the ACM Awards 2020. He did a tribute to Johnny Cash.
- 06:14 – Kim hijacked B’s song of the episode two weeks in a row.
- 06:40 – Kim loves taxes and Eric Church. Was that a snort?
- 07:12 – Kim and B are going to write a book about working with their spouses.
- 08:15 – Tax fact: male’s name goes first on tax returns.
- 09:34 – Kim’s Tax Tips: Mileage, make sure you’re tracking. Use a tracking app. At the very least, write down the mileage on your car at the beginning of the year and then again at the end of the year. IRS wants proof of your miles, not just a record.
- 11:40 – Meals and entertainment: entertainment is not deductible; meals are deductible; cannot take your own lunch as a meal; can buy a meal for someone else; meals are usually 50% deductible unless it is for the office in which case it is 100% deductible.
- 14:00 – Kim just taught B something he didn’t know. How is that possible?
- 14:22 – Writing off a trip: what is the primary purpose of the trip? If it is personal, you can only deduct the part of the trip that is a business. Keep your agenda.
- 15:40 – In 20 years Kim has had two full blown audits, but most of the time now it is just a letter/mail audit.
- 16:40 – B: algorithms, bots, etc. are tracking so many thing now.
- 17:38 – Cate must interrupt us, again, with her Side Note Tangent: Jack-Jack is visiting us, and Cate brought up that we all have work pups. B & Cate have Rey and Mer, and Kim & Greg have Churchie and Tank. (Watch the YouTube video to see pics of our pups). Send us pics of your pups.
- 19:35 – Kim: dogs cannot be a deduction on your taxes unless they are a medical or seeing eye dog.
- 20:08 – Kim notes a study that shows people are happier with a dog.
- 20:33 – “Don’t spend a dollar to save $0.30 in taxes.” Comparing that to Kohl’s Cash. Don’t spend a bunch of to save a small amount of taxes. You are likely better off to keep the money, pay the tax and come out ahead.
- 22:12 – Cate: projections and look at spending intentionally.
- 22:45 – Kim: buying a car is limited by the IRS in what you can deduct. Cannot slap a sticker on the side of the car and claim 100% of the car.
- 23:58 – Christian: difference between lease versus buy. Kim: It depends.
- 25:07 – Leasing equipment such as a copier.
- 25:28 – One last tip from Kim: Office and home, only take a home deduction if you are not provided a space by your employer.
- 27:09 – Christian: one big room, can you still deduct. Kim: yes, because most of your work is still from home. However, if you spend most of your time at the office, you cannot deduct the home office.
- 27:53 – Cate: if they deduct home and office and sell your home, what happens? Kim: might have to recapture depreciation, but the IRS gave everyone a gift. They give you $5 per square foot for a deduction up to 300 square foot of space.
- 29:55 – Kim is leaving us but thank you for dropping your pearls of wisdom on us.
- 30:18 – How can you reach Kim? storenfinancial.com; kim@storenfinancial.com; 317-852-7000.
- 30:50 – Quote of the Episode: “Income, expenses, investing, and taxes are all part of the game of life. Learn how to play that game well and you will succeed financially.” -B. Live Intentionally! Do better for yourself by learning how to play the game better.
- 31:52 – To our listeners in Australia, we love you!
- 33:11 – The happiest puppy in the world!
SHOW LINKS
- Kim Storen – https://storenfinancial.com/meet-the-team-kim-storen/
- Johnny Cash, “After Taxes” – https://www.youtube.com/watch?v=_RWEZ8ddexo
- Tommy Cash, Johnny’s Brother & Real Estate Agent – https://www.realtor.com/realestateagents/tommy-cash_hendersonville_tn_2943930
- Eric Church tribute to Johnny Cash at the ACM Awards – https://www.youtube.com/watch?v=RS2gRATocyY
- Mile IQ App – https://www.mileiq.com/
- Indianapolis Colts – https://www.colts.com/
- Churchie’s Blog – https://storenfinancial.com/cheers-from-churchie/
- Kohl’s Cash – https://cs.kohls.com/app/answers/detail/a_id/95/~/how-do-i-earn-kohls-cash%3F
- Caterpillar – https://www.caterpillar.com/en.html
- Storen Financial – storenfinancial.com
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 043 - Interview with Accounting Expert Kim Storen PART 1
Accounting! What topic could be more fun than taxes? Maybe watching grass grow or paint dry? Well, we have a special guest with us for two episodes. Believe it or not, she brings life and fun to the subject of taxation!
Kim Storen from Storen Financial is a breath of fresh air, especially after listening to B bloviate for the last 42 episodes. In this first episode, Kim give us tips and suggestions to prepare for end-of-year tax items.
It's never too late to make changes or find a better plan to save money and make wiser financial decisions. Listen to hear more about how to make better choices to work your business intentionally.
SHOW NOTES
- 01:47 – Introducing one of B & Cate’s most favorite people in the world, Kim Storen. Kim is a CPA with Storen Financial
- 02:48 – Accounting may not be at the top of your mind or even something you are worrying about yet, but agents are running a business. Let’s get you prepared for that.
- 04:12 – Kim talks about agents that file in October and enter into a payment plan with the IRS. Bad move agents!!!
- 06:08 – Kim shares an experience with her agent and a new found respect for what an agent does.
- 07:20 – Kim: becoming an agent is almost like starting a new job and the employer telling you to pay to work for them and also not get paid for six months. Because of that, you are behind the ball with back expenses and trying to catch up.
- 08:12 – Kim “loves” home inspectors, mold in her attic, and the neighbors pointing at them as remediators sit in their driveway.
- 09:21 – Song of the Episode: Wayne Brady parody on Whose Line Is It Anyway, “Songs of Accounting.” .
- 11:20 – Kim has her own song of the episode as she tries to hijack B’s bit. Midland “Drinkin’ Problem”.
- 12:35 – No one likes to think about or pay taxes, but you do have an opportunity to make some adjustments.
- 13:05 – Time stamp this date. B is going to shut up and let someone else take over the show.
- 13:15 – Kim: fund your 529 plan by December 31; You can turn the 529 into a legal way to launder money (Kim said that, not B); Kim’s job is to lie, cheat, and steal for her clients.
- 16:06 – Charitable giving; many people can’t take advantage of charitable giving because of the increased standard deduction. Kim suggests bunching.
- 16:42 – Income, expense, and tax projections can be a game changer. .
- 17:45 – B toots Kim’s horn: Kim does this for “free”. Kim doesn’t charge for questions or projections.
- 18:28 – Kim: accountants are notorious for looking backwards and telling clients what they did wrong. Find an accountant will help you look forward to prepare.
- 19:00 – Harvesting Losses in their portfolio. Strategy for saving money in your portfolio. Be careful of wash sales.
- 20:30 – Cate’s Side Note Tangent: Cate was not always so good at keep receipts and tracking her expenses.
- 22:47 – Kim has a “Cate tip”, Thermal receipts fade so use smart device apps to scan the receipts.
- 24:32 – Look at paystub and make sure you have fully funded your 401k, IRA, FSA, HAS and other retirement accounts.
- 25:33 – Christian: Child/Dependent care spent before the end of the year. He used to have kids but not anymore.
- 25:59 – Thinking about the new year. Set up an S-Corp; payroll withholding adjustments; energy credits.
- 26:45 – PAY YOUR ESTIMATES! Agents listen to Kim on this topic!
- 27:48 – What happens if you get behind on your tax payments? You might have to start making double payments. Pay something!
- 29:50 – Cate: She is so lucky to have B. Kim: agents with spouses on a W2 income, think about increasing their withholding to make up for your tax obligation.
- 30:35 – Set aside money from every closing in a bank account that is from a separate institution than your primary bank so you aren’t tempted to touch it.
- 31:35 – The mentality of paying taxes is so much different for a self-employed person compared to a W2 person.
- 32:28 – Love having Kim on and will have her back next week.
- 33:01 – How can you reach Kim? storenfinancial.com. 317-852-7000.
- 33:34 – Quote of the Episode: “In a world that feeds on your self-doubt, liking yourself is a bold move away from their ambition.” Do not let others get to you. Believe in yourself and don’t let the haters hate.
SHOW LINKS
- Kim Storen – https://storenfinancial.com/meet-the-team-kim-storen/
- Wayne Brady – “Songs of Accounting” – https://www.youtube.com/watch?v=XSranciXOvs
- Whose Line Is It Anyway? – https://www.cwseed.com/shows/whose-line-is-it-anyway/
- Midland, “Drinking Problem” – https://www.youtube.com/watch?v=g7f6HiQ2LuU
- 8 Track Tapes – https://en.wikipedia.org/wiki/8-track_tape
- 529 Plan – https://www.collegechoicedirect.com/
- Harvesting losses in a portfolio – https://www.investopedia.com/articles/taxes/08/tax-loss-harvesting.asp
- When are quarterlies due? – https://www.irs.gov/faqs/estimated-tax/individuals/individuals-2
- Storen Financial – storenfinancial.com
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 042 - Seller Survival Guide
Guiding clients through transactions is hard. Keeping track of the steps--who to call, when to jump, etc.--makes you an expert. Imagine how your client feels though. Anxiety, stress, and fear can dominate their thoughts as they are not an expert on real estate related matters.
Last week we talked about guiding buyers from the start. In this episode, we get into helping sellers prepare for the various transactional steps--and potential pitfalls--at the beginning of the transaction.
We use a checklist for sellers to show them the steps, along with some of the difficulties, so they're ready when things start happening. Clients are better prepared when we hold their hand from the start of the process. That is what a legendary agent does!
SHOW NOTES
- 01:03 – Is brocco-mole a thing?? Gross!!
- 02:08 – Cate wants to see B and Christian in drag. Cate has $7 for you to photoshop that picture. B edit: Do NOT do this or I will blast you on social media!
- 02:54 – Last week we talked about helping buyers. Today we talk about helping the seller from the beginning of the transaction.
- 04:21 – Song of the Episode: Survivor, “Burning Heart” from Rocky 4. Discuss producing, re-producing and re-re-producing Eye of the Tiger.
- 07:01 – Hard hitting discussion: How many Rocky movies are there?
- 08:04 – Important for agents to explain some of the details with our clients from the beginning. Easier discussion to have when warned than talking about it after being shocked.
- 09:00 – Listen to last week’s episode because both start off similarly. Explain your role.
- 09:35 – Cate: I am an advisor; COLD-AC; what I can and cannot do. Confidentiality is huge issue.
- 10:28 – Ask seller what their expectations are?
- 11:00 – Walk seller through the process. Talk about commissions and how they are split.
- 11:45 – Cate likes to tease with their clients about commission and B is shocked.
- 12:10 – Talk about CMA; listing appraisal; hire an appraiser…they need you.
- 12:26 – Talk about marketing of the property: photography, drone, staging, and Matterport.
- 12:50 – Cate: clients will look online and see what other agents are doing. Are you doing what the clients hopes for or expects?
- 13:11 – Cate steals B’s thunder and talks about staging. Some homes are “taste specific”.
- 14:23 – Intangibles: yard signs, lock boxes, etc.
- 15:29 – Agent: do a walk through and suggest a pre-listing home inspection.
- 15:50 – Open houses: how they work and the expectations from them.
- 16:27 – Prepare sellers for showings.
- 16:48 – Cate’s Side Note Tangent: Cate makes a pitch for a new Porsche 911 Turbo S. It’s Cate fault that we are going to charge for the podcast.
- 18:13 – Purchase contracts are a legally binding document.
- 18:23 – Negotiations: don’t negotiate only for price.
- 19:16 – Cate: ask seller what is most important to them.
- 19:30 – Multiple offer situations: ask seller how they want to handle them if they occur.
- 20:22 – Cate looks at the camera is talking to YOU: You don’t get to choose if seller wants to do a highest and best offer.
- 21:08 – Remind seller there are several negotiation points to work through: inspection, appraisal, title.
- 21:30 – Title: B can’t keep it straight…the buyer gets to choose the title company. PERIOD!!
- 23:07 – Final property inspection preparations.
- 23:15 – Closing issues: receipts for repairs; ask seller if they feel comfortable meeting the buyer or have a separate closing.
- 23:57 – Discuss with seller about possession.
- 24:25 – Fair Housing can be a big issue; how do you handle it? Stay in the legal lane. “The only color I see is green.”
- 25:18 – Home warranty: talk to seller about protections for the seller if they offer a home warranty.
- 25:52 – Last thoughts to talk with sellers: pre-foreclosure, late payments, etc.
- 26:26 – Good list to go through with the seller to prepare them and managing expectations.
- 26:54 – Quote of the Episode: “My mother told me to be a lady. And for her, that meant be your own person, be independent.” -Ruth Bader Ginsburg. (Cate: B might have gotten a bit passionate and misty eyed over this one.)
- 28:25 – Closing: so many steps to help prepare your sellers before the transaction gets started. Show them your value, what you bring to the table, and that you have their back.
SHOW LINKS
- Survivor, “Burning Heart” – https://www.youtube.com/watch?v=Kc71KZG87X4
- Star Wars figures variants – https://www.starwars.com/news/vintage-variants-large-heads-and-orange-snakes
- How many Rocky movies exist – https://en.wikipedia.org/wiki/Rocky
- Matterport – https://matterport.com/cameras/pro2-3D-camera
- Staging a Home for Sale – https://theclose.com/home-staging-tips/
- Barber Raceway – https://barberracingevents.com/
- Cate’s Dream Porsche – https://www.porsche.com/usa/models/911/911-turbo-models/911-turbo-cabriolet/
- Ruth Bader Ginsburg – https://en.wikipedia.org/wiki/Ruth_Bader_Ginsburg
- RBG Quote - https://www.mentalfloss.com/article/62023/15-awesome-ruth-bader-ginsburg-quotes-her-84th-birthday
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 041 - Buyer Survival Guide
Guiding clients through transactions is hard. Keeping track of the steps--who to call, when to jump, etc.--makes you an expert. Imagine how your client feels. Anxiety, stress, and fear can dominate their thoughts.
In this episode we'll talk about helping buyers prepare for the various transactional steps--and potential pitfalls--at the beginning of the transaction.
We use a checklist for buyers to show them the steps, along with some of the pitfalls, so they're ready when things start happening. Clients are better prepared when we hold their hand from the start of the process. That is what a legendary agent does.
Sneak Peek: Next week we talk sellers…enjoy this week's episode!
SHOW NOTES
- 01:50 – B: Cate does such a great job of preparing her clients, from the beginning, with what is happening in the transaction. Today we help you to prepare your clients too. Be proactive and provide an overview of
- 03:40 – Song of the episode: Survivor, “Eye of the Tiger”
- 06:22 – Important to explain some of the details and overview of a transaction. The details are what matter.
- 07:36 – Cate: setting the expectation and educating them about the process. I am here to hold your hand.
- 07:51 – One of the first steps: explain your role and what you are going to do.
- 08:13 – Cate tries a “dad joke” and falls flat. Cate can’t do dad jokes because she isn’t a dad.
- 08:37 – You exist to offer advice and offer opinions, not make decisions.
- 09:02 – Ask your client what their expectations of the transaction and of you.
- 09:21 – Cate: most agents don’t ask their client what they expect. Ask them!
- 09:55 – Worth asking client what they liked/didn’t like from any previous experience with another agent.
- 10:30 – Walk clients through the process. Give them the overview, not the details. Some of the steps:
- 10:52 – Lender issues: preapproval versus prequalified.
- 11:08 – Cate: explain difference between a mortgage broker versus a bank.
- 11:28 – Prepare your client for the approval process. Explain they will be investigated, interrogated, and questioned about everything.
- 12:22 – Cate: shares an example.
- 12:54 – Christian – Does the agent have access to the buyer’s loan information? No.
- 13:23 – Other items: new credit, paying debt, source of down payment funds.
- 14:18 – Next step: prepare client for looking at homes and issues that come up. Talk about wants and needs.
- 15:01 – Cate: (interrupts B); explain how showings work.
- 15:41 – Writing and negotiating the contract. Contract is a legally binding document.
- 16:31 – Cate: explain what is a fixture and what is not. Shares a shower curtain experience.
- 17:15 – Talk about possible multiple offer scenarios and options.
- 17:51 – Cate’s Side Note Tangent: worked with a buyer for 4 years before they finally bought a home.
- 19:20 – After the contract, the real work begins: inspections, additional negotiations over inspections and appraisal items.
- 20:01 – Christian: many people might not know the difference between an appraisal and a home inspector. Explain it to the buyer.
- 20:37 – Title process; homeowner’s insurance; final property inspection; etc.
- 21:15 – Closing: prepare for signing millions of times. If client is detailed oriented, they might want to read the documents ahead of time.
- 22:22 – Post closing: possession, what happens next to move in.
- 23:04 – Modify the conversation if needed for: new construction; FSBOs; open houses.
- 23:43 – Cate: prepare them and remind them how agency and other things works.
- 24:10 – Preferred vendors. Talk to clients about their choices in lenders, title, etc.
- 25:00 – Talk about how the agent gets paid; last topic on bank owned/REO and short sales.
- 25:56 – Cate: mention wire fraud and how funds can be delivered at closing.
- 26:35 – Cate: put all of this together in a nice formatted booklet and make it a “consultation” with printed information for them to understand and know what they are getting into.
- 27:40 – Quote of the episode: “Fight for the things that you care about but do it in a way that will lead others to join you.” -Ruth Bader Ginsburg.
- 28:48 – Closing: so many steps to talk about with clients; show them your value and what you bring to the table and they will send you business like none other.
SHOW LINKS
- Survivor, “Eye of the Tiger” – https://www.youtube.com/watch?v=btPJPFnesV4
- Dad joke fails – https://www.liveabout.com/corny-dad-jokes-4137808
- Fiji water – https://www.fijiwater.com/
- Star Wars shower curtains – https://gojeek.com/products/epic-battle-hoth-space-star-wars-shower-curtain
- Rubicon REALTOR – https://www.rubiconrealtor.com/
- Ruth Bader Ginsburg – https://en.wikipedia.org/wiki/Ruth_Bader_Ginsburg
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 040 - Get Stuff Done!
We all have unique talents. One of B’s gifts is "getting stuff done". Have trouble getting a deal on a cell phone, an internet provider, or an airplane ticket? B shares his tips and tricks to help you get stuff done, too.
Don't pay any more than you have to on anything. It's not only about negotiating better terms; it's about understanding the rules. For example, who to speak with and how to ask for what you want.
As B likes to say, "you get 100% of what you don’t ask for." The worst thing a company can say is, “No.” The more you know, the better you'll be. When you're legendary, you can look like a hero while you help your clients!
SHOW NOTES
- 01:30 – Recurring theme: Brian is amazing!
- 03:35 – Two things just hit the big 4-0. We are on our 40th episode and Cate just turned 4-0!!!
- 04:50 – Song of the Episode: George Thorogood and the Destroyers, “Bad to the Bone”.
- 07:25 – When purchasing items or signing up for services, don’t always just accept what the provider is offering. Push back.
- 07:40 – B’s example of negotiating for a flight.
- 10:47 – That example has been used in multiple situations and has a proven track record of success.
- 11:00 – It is not about negotiating necessary, it is about understanding how things work, who to talk to, and how to ask.
- 11:58 – Producer Christian: local utilities in helping clients that may not be familiar with the area.
- 12:20 – B toots his own horn: Amazon issue with paper for the office.
- 15:55 – Cate takes the attention off of B with her Side Note Tangent: Cate always go water skiing every year.
- 18:18 – How do you get “stuff” done. You get 100% of what you don’t ask for. Worst thing they can say is, “No.”
- 19:25 – Know who to talk to. Almost never the first person you talk with.
- 20:22 – Service providers all have a “customer retention department.” Ask for them by name. They have more authority and power to get more of what you want.
- 21:56 – Be nice and friendly but firm. You get more flies with honey than with vinegar. Friendly banter helps so much as most callers are mad and angry.
- 23:20 – Go in with a plan of what you want and what you might need.
- 23:37 – Be very patient and take the time to get what you want.
- 24:40 – Working through paying off collections. You can always negotiate to a lower amount. Tips on how to handle that.
- 26:40 – With collections: get the negotiated amount in writing and do NOT give them your bank account information.
- 28:08 – Cate: make this a great tip to help your clients if they are dealing with collections.
- 28:19 – Quote of the Episode: “Success is the ability to get “stuff” done.”
- 29:10 – Closing: make better choices, know who to talk to, how to talk to them. Be firm but nice.
SHOW LINKS
- SNL Skit, “Don’t you hate it when…” – https://www.youtube.com/watch?v=YQijw8Hk8GE
- George Thorogood and the Destroyers, “Bad to the Bone” – https://www.youtube.com/watch?v=IyhJ69mD7xI
- What is the "Customer Retention Department" anyway? - https://www.shopify.com/blog/customer-retention-strategies
- Porsche Track Experience – https://www.porschedriving.com/track-experience/
- Barber Raceway – https://barberracingevents.com/
- Kohl’s Cash – https://www.kohls.com/feature/kohls-cash.jsp
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 039 - Credit? We Don't Need No Stinking Credit!
Credit scores...they affect everything from the ability to borrow money to insurance costs. They may even play a part in the interview process for a new employer. Wait…what? They affect SO much more than people realize!
In this episode, we discuss all that is affected by your credit. We talk about the "why", "what" and "how" of credit scores, along with the elements that are used to calculate that golden number.
As agents, we can better assist our clients with this topic and help them make decisions that could save them thousands of dollars. That's what a Legendary Agent does!
SHOW NOTES
- 01:20 – Is B a prophet or a saint? The door was accidently opened when Producer Christian gave B a compliment.
- 02:20 – Credit is an integral part of our lives.
- 03:30 – B has seen in teaching this topic that most people don’t know what they are getting into with their credit.
- 04:12 – Song of the Episode: Wham! “Credit Card Baby”
- 06:45 – People get so embarrassed talking about their finances and their personal information. Don’t do that because it hurts you even more. People screw up. Let’s rip off the band-aid and talk about it to fix it.
- 07:55 – Cate: very vulnerable about her finances and talking about it with B and shares her story. B takes it very modestly as usual.
- 09:30 – B shares a personal story about his upbringing and what his father did not do to help him understand about money, finances, and credit. B learned the hard way about credit.
- 10:15 – What does your credit score affect: ability to borrow money on a house, car, or credit card. It also affects PMI rates and homeowner’s insurance costs…all of which can significantly increase the cost of home ownership.
- 11:00 – Cate: interest rate is considerably influenced by your credit score.
- 11:30 – Can change the insurance costs. Lower credit score will cause your insurance rates to increase.
- 12:48 – Many employers are using credit scores to make a hiring decision.
- 13:25 – B treads VERY lightly on the subject of Dave Ramsey and his feelings on credit. B is about responsible borrowing and credit score management.
- 15:45 – Cate’s Side Note Tangent: It’s about B. Motorcycle guardian bell legend.
- 18:30 – Major parts of credit scores: Reporting agencies are Experian, Transunion, and Equifax. FICO vs. Vantage algorithm.
- 21:15 – Different lenders look at different scores differently. Mortgage lenders will look at the FICO scores from each of the three reporting agencies. They also use the middle of the three scores.
- 22:37 – Cate: mortgage lender will look at the information differently than an auto lender and a credit card company. They each place varying weight on separate criteria.
- 23:00 – Have a conversation with the lender about what they will be using to grant credit.
- 23:33 – How can you increase your score? Every person is different and will require a custom process to increase. There are some basic steps, but to truly increase your score, it will require a deep analysis and a well processed plan to make that happen.
- 24:20 – Pay your debt on time and make sure it arrives on the due date.
- 25:10 – Keep credit card usage low.
- 25:35 – Cate: if balance is over 30% it hurts more?
- 26:15 – Rarely open and rarely close credit accounts because of history.
- 26:50 – Monitor your score! Use a free service to track your score on a monthly basis. Watch the number.
- 27:55 – Cate: look at your credit report as inaccurate info can hurt you too.
- 29:30 – Come up with a strategy to plan for your purchases such as for a house or car. Make a better financial decision that will pay for itself over time in cost savings.
- 30:06 – Cate: pick one advisor, not 10. Everyone has a different plan. Pick one that works for you and stick with it.
- 30:35 – Quote of the Episode: “A good financial plan provides a path to success that will be seen in your financial, mental, and psychological wellbeing.” Be intentional to do better. Know how the rules work. Successful people do well because they are not afraid to dig into their financial decisions.
- 31:30 – Closing: Monitoring and tracking your credit score is so easy and vital to financial health. Understand how lenders view your scores and get with a trusted advisor to help you do better and build wealth.
SHOW LINKS
- Movie: “The Treasure of Sierra Madre” – https://www.youtube.com/watch?v=4OcM23Hbs5U
- Blazing Saddles – https://www.imdb.com/title/tt0071230/
- “We Are the World” – https://www.youtube.com/watch?v=M9BNoNFKCBI
- Wham! “Credit Card Baby” – https://www.youtube.com/watch?v=jYrXilpovVc
- Dave Ramsey – daveramsey.com
- Motorcycle Guardian Bells – https://www.bikebandit.com/blog/the-legend-of-the-gremlin-bell-a-bikers-tradition
- Transunion – transunion.com
- Experian – experian.com
- Equifax – equifax.com
- Credit Karma – creditkarma.com
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 038 - Stirring the Pot with Limited Agency
You want to get B riled up? Bring up the subject of limited/dual agency with him! Actually, on the podcast, we decided to do it for you.
In this episode B gets passionate--and sometimes even angry--about this topic. Limited agency has its place and on RARE occasions, but when? More importantly, how?
We discuss the legal requirements, along with some thought-provoking insight into what agents affectionately refer to as the “Me-Me” deal. Sit down, buckle up, and turn the volume down. B sets the record straight on how he really feels about this topic!
SHOW NOTES
- 00:36 – Increasing our rating from 1 to 2. Whoa!
- 01:50 – Secret guest, Jordy Long aka Morty Short; professional photog to add to Cate’s photo album.
- 02:26 – Recording Stirring the Pot with Limited Agency. Cate was not helping cool B off.
- 03:10 – “No offense…but…” Going to make some agents mad and PC must turn down the volume. B may be biased, but he does not like limited agency.
- 04:05 – What is limited agency: working both sides of the transaction as listing and selling (buyer) side. Limited agency is also known as dual agency in some states.
- 05:10 – Song of the Episode: Bob Marley, “Stir It Up” .
- 08:05 – Refresher on agency: COLD-AC; Care Obedience, Loyalty, Disclosure, Accounting and Confidentiality.
- 09:20 – Loyalty defined: Act at ALL times SOLELY in the best interest of the agent’s client and to the EXLUSION of all others.
- 11:05 – Problems with COLD-AC in limited agency. It is not possible to have loyalty; disclosure is complicated; confidentiality may be put to the test.
- 12:44 – Indiana and other states requires informed consent of limited agency.
- 13:30 – Redisclose agency, loyalty, disclosure and confidentiality. Be VERY clear on what happened with limited agency. Agent does NOT have loyalty anymore in limited agency.
- 14:30 – If client is okay with no loyalty, disclosure and confidentiality then get their consent.
- 14:50 – Cate: office policy and client’s remembrance of the policy.
- 15:24 – PC example: agent wanted limited agency and the agent only showed homes he had listed that did not even meet their criteria.
- 16:10 – There are reasons why the real estate industry is at the bottom of respected industries and this is one of them.
- 16:50 – Agents are legally required to properly disclose. If agents handled this in the legal proper way, most clients would not consent to limited agency. It is only because agents do not properly disclose if that limited agency happens so often.
- 17:40 – Once limited agency is created, the agent now has two customers, not two clients. HUGE difference in those terms. Customer: someone we don’t hurt, but we don’t help them either. Agent becomes a facilitator.
- 18:37 – Cate: going to the doctor; doctor is working for the patient or the pharmaceutical company when the prescribe medicine.
- 19:10 – Cate’s Side Note Tangent: Cold sandwich ingredients; cheese or no cheese; how to layer the ingredients.
- 21:30 – What does consent include? Must be in writing in Indiana. Do NOT just “slide” the document across the table and the client has no clue what they are signing.
- 24:25 – B gets mad…for real this time! STOP CALLING IT A ME-ME DEAL!!!!!!! It is PATHETIC, sick, disgusting, and gross. Using the phrase “Me-Me” says everything about who the agent is serving, and it is NOT their clients.
- 24:27 – Commission is nice. We are businesspeople too but do it right. Your business is not about making money. Your business is about serving your client and then you make money by doing that.
- 26:30 – Other options: referrals, partnering with another agent.
- 27:29 – Cate: you will still make money in this deal.
- 28:40 – PC slowing us down with harp music.
- 29:00 – The longevity of your business relies upon repeat business. When limited agency happens, it is rare that you receive repeat business. Look at the long game, the bigger picture. Today’s bigger commission will pale in comparison to the several commissions you receive down the road from referrals.
- 30:25 – Cate: secretly interview limited agency clients, most of the time the client is not happy.
- 31:20 – Quote of the Episode: “Loyalty means nothing unless it has, at its heart, the absolute principle of self-sacrifice.” -Woodrow Wilson.
- 32:25 – Take care of your client. Look out for their best interest. Loyalty might be the greatest of that responsibility. Take that responsibility with the sincerity it deserves. Your business will do so much better by doing that.
SHOW LINKS
- Limited agency defined – https://www.lawinsider.com/dictionary/limited-agency
- Bob Marley, “Stir It up” – https://www.youtube.com/watch?v=S3UqvWk8-uw
- Johnny Nash, “I Can See Clearly Now” – https://www.youtube.com/watch?v=g_rB4v75jqU
- Ric Flair – https://www.youtube.com/watch?v=spZOgdhtaMA
- Woodrow Wilson – https://en.wikipedia.org/wiki/Woodrow_Wilson
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 037 - Do You Have a Board of Directors?
Running a business is not for the faint of heart. Agents run businesses every day, so it pays to learn to do it properly. Successful companies have a designated group of individuals that offer suggestions and feedback to help the company grow and prosper. Agents should do it, too! A Board of Directors is crucial to helping your real estate business become legendary.
In this episode, we talk about why, how, and what to put together to form your own personal Board of Directors. Agents, it's time to run your business like a business. Let’s get real and knock this out!
SHOW NOTES
- 00:35 – We are pushing it today…how many agents can we improve? We shoot for 4…here goes everything!
- 01:55 – Episode 37, Do you have a board of directors? Whether or not you are running an intentional business, it needs your attention and help.
- 02:50 – Introducing our new “Song of Episode Jingle.” Longer than the segment. Is B cheap???
- 03:40 – Song of the episode: Dream Academy, “Life in a Northern Town”.
- 06:50 – What is a board of directors and what do they do? “Two heads are better than one.” Takes more than just yourself to be successful.
- 08:10 – Cate: This is not a BNI group with the intent to network or share referrals.
- 08:58 – Who needs to be on this board? People you can trust and be honest with you…brutally so if needed.
- 09:34 – Cate: friends are great and can be supportive, but likely not what you need in a board member.
- 10:08 – Producer Christian: have people that will challenge you; helping you look at long, horizon events or maybe a specific issue.
- 10:50 – B has a quick side note tangent: B does not have the ‘rona.
- 11:25 – Other people on the board: highly educated people; they have a lot of background and education that might help.
- 12:05 – Another agent can be on your board but be careful with who you share information with. Cate: might be an experienced agent and not a competitor. Can have an expertise that you do not have: residential, commercial, property management, etc.
- 12:48 – Other real estate professionals such as title people, appraisers, inspector, mortgage rep that can bring a different side of the real estate business into perspective.
- 13:06 – Directors can be from any type of business…even windshield wiper replacer businesses. Butcher, insurance rep.
- 14:03 – Cate: people that you fully trust. Even if they do not specialize in real estate sales. Cate has a mortgage person that guides her with her business.
- 15:00 – There is not an ideal number but 4 to 6 is probably best. Too many can muddy the conversation, and too few won’t give enough insight.
- 15:32 – Cate’s side note tangent: Oxford comma. Cate changes everything else in B’s life.
- 17:33 – What are you talking about in this meeting? Past, present, and future of your business.
- 18:54 – Cate: talk about your daily activities. How you are structuring your day.
- 19:00 – Paint a picture so your board knows what you have to work with to get you to where you want to go.
- 19:23 – Get their opinion on your business. You don’t have to follow through with their suggestions.
- 20:14 – Cate: set goals for each meeting; talk through each specific item.
- 20:25 – How often should you meet? Most likely once a month; spend a day together and make it a round robin where you each help each other. Each member of the board gets an hour to “speak” about themselves and what they want to accomplish.
- 21:26 – Cate: everyone will gain something from everybody’s conversation and play off of each other.
- 21:58 – Cate: everyone can chip in to have an accountant come in to give advice.
- 22:14 – Cate: have this in a location that does not have distractions. Turn your phone off, restaurants can be bad because of the noise and TVs. Maybe a conference room. Have lunch brought in.
- 22:54 – You might need an emergency meeting. A blanket email might be needed or a Zoom meeting.
- 23:55 – Cate: OINII; take your notes and prepare before and after.
- 24:20 – In your meetings, make sure you are setting goals for the next meeting.
- 24:50 – B is so inspirational; Quote of the Episode: “One of the first questions I ask agents is, “What is the purpose of your business?” Their answer tells me volumes.” -B. Be intentional with your business.
- 25:56 – Closing: get a board of directors that you trust and can help guide you. Meet regularly and be accountable to them.
SHOW LINKS
- Dream Academy, “Life in a Northern Town” – https://www.youtube.com/watch?v=5UXnulANF8g
- What is a board of directors? – https://en.wikipedia.org/wiki/Board_of_directors
- BNI Group – https://www.bni.com/
- Do you use the Oxford comma – https://www.oxford-royale.com/articles/oxford-comma/#aId=62074afa-2808-4409-89ed-19d794bdc4ba
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 036 - You Did What With Your Ownership?
What happens when you pull back the curtain of ownership? Probably nothing. Clients buy homes every day. But the legal form of ownership is this “thing” that happens behind the scenes and no one notices…until…they do!
Legal ownership is tough to comprehend--and usually unimportant--until problems start to show up, like divorce, death, and taxes. Agents can better serve their clients by informing them of potential legal and taxation issues tied to the type of ownership of their real estate.
Take care to stay in your lane, unless you are an attorney or accountant. However, it's vital to the client since ownership is something to pay attention to. In this episode, we'll talk about different forms of real estate ownership and the issues that each can bring.
SHOW NOTES
- 00:35 – Is B hopped up on caffeine? Buckle up buckaroo!
- 01:25 – Getting a little technical today from pre-licensing. Forms of ownership.
- 02:08 – Song of the Episode: The Who, “Who Are You”.
- 04:00 – Ownership means a lot to our clients. Emotional, psychological, financial and legal parts.
- 05:14 – Agents should have conversations with their clients. Do not act as an attorney or accountant, but mention it to them.
- 06:04 – We deal with this all the time. Example of divorcing couple and ex-spouse passed.
- 07:28 – Definitions: 4 types of ownership: Severalty; Co-Ownership Types: Tenant in Common, Joint Tenancy, and Tenancy by the Entirety.
- 08:43 – Other forms: legal life estates, trusts, business entity ownership.
- 08:57 – Tenants in Common. Two key pieces: Separate interest, owners can do what they want with their interest in the property.
- 10:25 – Ability to split ownership into any percentage. Cate eats Twix bars. Debate over the right or left side.
- 11:35 – If client does not decide how to split the percentage ownership, equal ownership is automatically set.
- 11:55 – Cate: you do this with the title company. Communicate to the title company and the deed is drafted.
- 12:25 – Cate’s Side Note Tangent: Working with investors and experiences. Cate has fleas. Cate is a belly dancer apparently. Dealing with squatters. Have not found a dead body…yet.
- 16:22 – Email from Sally in San Diego: Please get to joint tenancy.
- 16:50 – Joint Tenancy w/ Right of Survivorship: the last person living gets full ownership of the property.
- 17:38 – Cate: as people pass, the interest is absorbed by the remaining owners.
- 18:04 – Joint tenancy does not allow owners to take an unequal percentage share. Owners must have an equal percentage ownership.
- 18:59 – Anyone can use joint tenancy but be careful who you choose as a co-owner. If you pass, your co-owner gets all the property. Is that what you want?
- 19:20 – Cate: Parents and a child own property might be a way to eliminate probate but be careful of other issues such as taxes.
- 19:48 – The right answer is to what form of ownership is based upon an informed client’s decision. They each have their pros and cons. Make sure your clients know to choose wisely.
- 20:30 – Bobby from Walla Walla Washington has a question: please tell us about Tenancy by the Entirety.
- 20:57 – Similar to joint tenancy but reserved exclusively for married couples. Some states recognize marriage as a legal union of two people into one. Two physical humans, but one legal entity that is inseparable.
- 21:39 – Cate’s example from earlier. Ownership shifted from Tenancy by the Entirety to Tenants in Common.
- 22:44 – Get advice from attorneys and accountants. There are legal concerns but also taxation and liability concerns with ownership.
- 23:54 – Probate issues can be affected by the type of ownership. Trusts and wills are a part of this.
- 24:22 – Cate: talk to your clients before closing about this topic.
- 25:25 – Lamont from Ontario, Canada: is there a quote of the week?
- 26:20 – Quote of the Episode: “Be intentional in who you are. Going through life, unaware of what makes you special serves no one.” Serve yourself and your clients.
- 27:07 – No one asking about the closing. Remember the different forms of ownership with their own pros and cons. What might be true for one client may not be true for another. Bring this up to your client and recommend they seek guidance on what to choose.
- 27:45 – Helping your clients will make you shine and become a legendary agent that goes beyond what other agents do.
SHOW LINKS
- The Who, “Who Are You” – https://www.youtube.com/watch?v=PNbBDrceCy8
- "Pull Back the Curtain" sequence in the "Wizard of Oz" - https://youtu.be/YWyCCJ6B2WE
- CSI – https://en.wikipedia.org/wiki/CSI:_Crime_Scene_Investigation
- David Caruso – https://en.wikipedia.org/wiki/David_Caruso
- Be like David Caruso in Jade – https://www.youtube.com/watch?v=Fa1IN1GN4Q4
- Twix Candy Bars – https://marschocolate.com/twix
- Walla Walla, Washington – https://www.wallawalla.org/
- Bug Bunny – https://www.youtube.com/watch?v=Aak914x7RcA
- Do They Speak French in Ontario? - https://en.wikipedia.org/wiki/Languages_of_Canada
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 035 - It's Not You, It's Me
It's a hard decision to make…do I keep a client to earn a commission, or do I end the relationship give up that income? The answer should be easy if you're operating at a legendary level.
The client’s needs are the most important thing to consider, but so is your sanity and opportunity for future business. Although it may be tough to walk away from THIS commission, it will almost always serve you better to step away. Doing maintains your reputation, plus it preserves the future income that comes from seeing the bigger picture.
Cut ties with those clients you cannot serve, (or that drive you nuts!) You can always get a referral and still earn a little bit of income. Remember, it’s not you, it’s me!
SHOW NOTES
- 00:50 – Mr. Roger’s Neighborhood: who are we? I’m Mr. Rogers, Cate is Daniel Tiger, Producer Christian is Mr. Green Jeans? Mr. McFeely.
- 01:54 – Today’s episode is all about cutting your losses, not your wife.
- 02:15 – Seinfeld: George Costanza, “It’s not you, it’s me.”
- 03:05 – Song of the Episode – disco fever…Gloria Gaynor, “I will survive!” Agents, you will survive. Get out of a bad situation.
- 04:22 – This song is in the top 5 all-time best disco songs. Cate: Cake had a more vulgar, grungy version. Cate’s miniature side note tangent.
- 05:22 – Make good choices that make sense for you, your business, and your client. Your business should be looking at the long-term picture. You likely did not do your best.
- 06:50 – Talk to you client! Ask them questions: how do you want me to work for you? Communicate? Explain to them how and when you communicate. Maybe you are unavailable. Can you work through expectations and issues with them?
- 07:57 – Cate: how do your client’s work? Fax?? Work with someone to fill the void that you can’t handle.
- 08:37 – Have the conversation up front. The conversations you have may reveal personality conflicts.
- 09:00 – B has a fantastic personality, and nearly everyone likes him. Shockingly, some people (an exceedingly small percentage of people) find B’s personality to be a bit over the top.
- 10:22 – Agents: just because you can do a thing, does not mean you should. Just because you can take on a client, does not mean you should take on the client.
- 10:51 – Future transactions can be affected by your decisions today.
- 11:11 – Look at the property type. Residential, commercial, agricultural, waterfront property…do you know that property type. Ask yourself, can I really help this client with this transaction.
- 12:00 – Residential agent that does not know commercial. Your license allows you to help, but should you? Probably not!
- 13:30 – It is not about the money, it is about the client. If you screw up you might lose your commission, your license and maybe more. Stay in your lane!
- 13:44 – A solution: work with another agent that is an expert in the property type. Work with another agent that is willing to take you “under their wing”.
- 14:27 – Cate: take it as an opportunity to learn. Go to lunch with several agents to work through a referral network.
- 15:15 – Develop relationships like you would with a mortgage, title, etc. How many commercial transactions will you work going into the future? Do not learn at your client’s expense.
- 16:05 – Cate sneaks in a side note tangent: Cate loves Seinfeld and has used the “it’s not you, it’s me” routine in a breakup. It’s a nice way to say, “I don’t like you anymore.” Broke up with a guy over the phone. B has broken many hearts, but let’s not talk about that. Sometimes it is me.
- 18:50 – Agents HEAR me: REFERRALS ARE OKAY! Look out for yourself, your business, or your client. Sometimes a referral is the best choice. You can still earn a little income. Cate is entitled.
- 20:30 – Sever the relationship or the transaction so you make the decision instead of the client being disappointed and you get nothing except a bad reputation.
- 21:25 – Respect is earned when you are honest with your client. Breeds goodwill. A future transaction may pay off.
- 21:57 – Cate: She has agent friends all over the city. Partner up with those friends and work together. They share tasks.
- 22:43 – Sometimes it’s the broker you work with and should get out. Don’t be afraid of the costs or hassle. Look at the greater good.
- 24:07 – Your reputation is very important in this business. A quote that was told to us: “It is as easy to get back your reputation as it is to gain back your virginity.” Social media can really hurt you. We are in a very small world. One negative review can go viral.
- 26:04 – Producer Christian: Your reputation is everything in this business, especially down the road.
- 26:30 – Cate: reputation with other agents is also huge!
- 27:08 – Cate: short term pain, long term gain. Cate tries to steal B’s thunder on that saying, but B wrote the script, is older and is feeling the short-term pain.
- 27:55 – Leading into THE quote of the episode: “Your reputation is the one thing you achieve through your actions. Good or bad, those actions set your reputation.” Client’s will send you business if your reputation is deserving of it.
- 28:30 – Love your clients, not your commission. Make choices that serves them. Look at the long-term perspective. Your recognition of the greater good of your client is most important and will set your reputation higher than 90% of the agents out there. The ripple effect is huge!
SHOW LINKS
- Rogers, Won’t You Be My Neighbor – https://www.youtube.com/watch?v=AQS3JGqx46U
- Daniel Tiger – https://www.misterrogers.org/articles/daniel-tiger/
- Captain Kangaroo, Mr. Green Jeans – https://www.youtube.com/watch?v=f_nrfpPcxQw
- Seinfeld, It’s Not You – https://www.youtube.com/watch?v=2uAj4wBIU-8
- Gloria Gaynor, “I Will Survive” – https://en.wikipedia.org/wiki/I_Will_Survive
- Cake, “I Will Survive” – https://www.youtube.com/watch?v=f9rCUQjmkxU
- Jimmy Johns – https://www.jimmyjohns.com/menu/
- FedEx fax, $1 per page – https://www.fedex.com/en-us/office/fax-services.html
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 034 - Mortgage Underwriting Tips, Tricks and Myths with Missy Arbuckle PART 2
Being a legendary agent requires a knowledge base of the inner workings of the many parts of a real estate transaction. In this episode, we “pull back the curtain” and reveal a mysterious person that you never get to see, hear from or speak to…the underwriter!
We want to help you to understand the back end of a lending decision so you can better prepare your clients for issues and concerns. Knowing and understanding the underwriting process helps you stand out as an expert.
Last week we covered the process of underwriting the borrower. Today in PART 2, we'll discuss underwriting an appraisal report with Underwriter Missy Arbuckle with GVC Mortgage. She has some great stories too, so enjoy!
SHOW NOTES
- 01:15 – The B Appraiser god or B the Appraiser god.
- 02:14 – This is part 2, Part Deux, Hot Shots; We are speaking French for our Canadian listeners.
- 03:06 – Song of the episode: Def Leppard, “Bringin’ on the Heartbreak.” First hit that broke them into the US. One of the very first videos on MTV. The appraiser and the underwriter are going to bring on the heartbreak to agents.
- 04:33 – Introduce Missy Arbuckle again. Will keep B in check.
- 04:58 – In the loan process, the appraisal is a big component to the loan. So many things on the backend with the underwriter. So many more things to consider beyond just the value.
- 05:30 – Missy: looking at condition of the property. Comparables and how similar they are to the subject. Underwriter goes through every page of the report. Look to see what was available to the appraiser in the neighborhood. Sales, listings. Would like to stay within a mile and up to 10 miles in a rural property. Predominate value in the neighborhood. Zoning – commercial influence and agricultural.
- 06:43 – Cate: underwriter reads the appraisal report.
- 07:13 – Lender overlays: multiple sets for rules based upon loan type. What does that look like?
- 07:55 – Missy, B “…is absolutely right.”
- 08:45 – Conventional loan types do not have anywhere near the overlays or scrutiny that government back loans (FHA, VA, USDA) have. Look at anything that may need to be brought up to the loan standard, e.g. settlement, peeling paint, cracked windows.
- 09:48 – VA is a little more restrictive as they are always looking out for the veteran. If there is anything the appraiser notes that is a safety, sound or security issue with the home, VA will want it fixed. Looking at those things on top of the other criteria for the loan type.
- 10:35 – The appraiser is the “eyes and ears” for the underwriter. As such, underwriter might have questions and will send an email asking questions for additional clarification.
- 12:18 – Will the property meet the criteria for the loan? It is huge for the lender. If the lender must foreclose and take the home back, the lender is concerned.
- 12:34 – Appraiser has to “sell” the report to the underwriter so the lender can sell the loan in the secondary market. Appraiser has to write a “credible” report.
- 13:40 – Cate: overlays for different loan types. Are there different overlays for different lenders?
- 14:08 – Missy: more on the loan type. Conventional, FHA, VA all have most of the same rules. The borrower quirks may cause an issue, but typically the home does not change between lenders.
- 14:55 – Can an underwriter “override” an appraisal? Why doesn’t the underwriter override the appraisal more often? What kind of things are you looking at to override the appraisal?
- 16:03 – Overriding an appraisal: hasn’t happened in a while but have changed the value or asked for more or less requirements. As time has passed, the underwriter will stick with the guidelines of the agencies.
- 17:30 – Report comes in that agents are not happy with value or repair condition. Underwriter pretty much stays with what the appraiser says and will not override the appraiser.
- 18:05 – Comparable issue: underwriter does a little recon on the backside. They look at properties that were in the area. Look at adjustments. They will look at the BLC and ask the appraiser to look at other comps, not to override, but to get clarification.
- 18:50 – Fannie and Freddie also do their own “appraisal” via a computer algorithm and the appraisal report receives a score between 1 to 5. A 4 or 5 is a low quality or uncertain appraisal and will require more work. A 1 is a high quality and trustworthy report.
- 19:40 – The scale of 1 to 5; did appraiser write a credible report?
- 20:12 – Favorite story about an appraisal report: appraisal on a high rise and the entire house had been on fire. Insulation, ceiling was falling in and the interior was charred. They called it the “barbecue house.” Lender passed on that home. Crispy home.
- 22:40 – Quote of the Episode: “Try not to become a person of success. Rather become a person of value.” Success comes from the value you provide to your clients.
- 23:14 – Closing: Thank you Missy for joining us. Like a Reese’s cup, the underwriter and appraiser are two great tastes that taste great together…in a non-weird way.
- 24:06 – Appraisal and underwriting are two huge hurdles to get through in the purchase process. Understand those processes and you will have greater success.
SHOW LINKS
- Hot Shots, Part Deux - https://www.youtube.com/watch?v=aGOQyyQ_28I
- Def Leppard, "Bringin' On The Heartbreak" - https://www.youtube.com/watch?v=f_X5A-BYjO8
- Does MTV play music videos? - https://ew.com/article/2012/11/13/mtv-stopped-playing-music-videos/
- Acronym, AMC - https://www.investopedia.com/terms/a/appraisal-management-company-amc.asp
- Best Barbecue - https://www.escapehere.com/destination/the-8-best-states-to-experience-american-bbq/
- Missy Arbuckle - https://www.linkedin.com/in/missy-arbuckle-841888167/
- Reese's Cup Commercial - https://www.youtube.com/watch?v=DJLDF6qZUX0 and https://www.youtube.com/watch?v=GuENAWds5B0
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 033 - Mortgage Underwriting Tips, Tricks and Myths with Missy Arbuckle PART 1
Being a legendary agent requires a knowledge base of the inner workings of the many parts of a real estate transaction. In this episode, we “pull back the curtain” and reveal a mysterious person that you never get to see, hear from or speak to…the underwriter!
We want to help you to understand the back end of a lending decision so you can better prepare your clients for issues and concerns. Knowing the underwriting process will help you stand out as an expert. Today is PART 1, where we'll discuss underwriting a borrower with Underwriter Missy Arbuckle.
Stay tuned for PART 2 next week...underwriting an appraisal. Both episodes are informative and fun as we get to actually talk to and hear from that elusive person that hides behind the curtain.
SHOW NOTES
- 01:53 – Episode 33, interviewing an underwriter; PART 1: underwriting a borrower
- 02:28 – Underwriter is so mysterious, unreal, hidden in the secret room.
- 03:03 – Song of the episode: Cheap Trick: "Don’t Be Cruel". Underwriters, don’t be cruel.
- 04:00 – So much weight on one person. Rules, regulations, and a thankless job. Don’t beat up and criticize them. Be nice to them.
- 04:40 – Introducing Missy Arbuckle, Underwriter with GVC Mortgage
- 05:25 – Missy: FICO credit score is top. Higher scores are required for many reasons.
- 06:06 – Down payment: funds to close. Minimum required investment from the borrower. More errors or issues pop up such as large deposits. Cannot use cash that is saved at home. It must be trackable and traceable.
- 07:15 – What does “seasoning” mean? Your money needs to be in the bank for a certain period of time: 30 days for a conventional loan and 60 days for a governmental loan.
- 08:20 – Explain where money came from. Sometimes can be tracked. Cash is so hard to use.
- 09:00 – So many borrowers don’t understand and get upset that they have the actual cash. Where did you get the funds? Drugs, prostitution? Weird turn in the episode. We don’t judge.
- 10:00 – What changes have happened with COVID-19? Conventional and governmental lending have all come out with new guidelines. Tweaked regularly. Furloughed employees; Income used to qualify a borrower; What did that look like before the quarantine and how does it look now?
- 12:10 – None of the agencies are the same so the underwriter has to keep track of the rules for each agency. Very difficult to keep everything in line.
- 12:26 – Credit scores tightened up. Looking more at reserves: does the borrower have money in the bank to make payments and for how long.
- 13:03 – While it is logical, it is tough for agents and borrowers to realize that changes are happening constantly.
- 13:30 – Is there anything that you would say to agents or wish they would know? BE PATIENT! Agents have a conversation with your buyers about income, unemployment. Getting info to the underwriter as soon as possible. Watch the mattress money.
- 15:50 – Secret handshake, password, favorite ice cream to get to the heart of an underwriter? Underwriters do have hearts. Have the borrower get documentation ASAP!! An underwriter sometimes has to guess.
- 16:55 – Underwriters must become detectives and researchers. Where did money come from? What did they do before this job? Tell them up front what is going on. If not, the underwriter will piece it together on their own and figure it out.
- 18:07 – If they get a file and explained, it will make it easier on the agent, borrower and everyone, and will give fewer conditions.
- 18:45 – Favorite story: borrower trying to buy a home so her elderly parents could live with them. When she can help someone and there is a bigger story behind the scene that makes it all worthwhile.
- 20:20 – Episode Quote: “Truth enlightens the mind but won’t always bring happiness to the heart.
- 20:45 – Producer Christian’s side note tangent quote: “I always feel like somebody’s watching me”. -Rockwell
- 21:25 – Agents, a lot of what makes you mad is beyond the underwriter’s control. Understand the process to help you and your client attain better results.
- 21:45 – Next week is part 2, underwriting the appraisal.
SHOW LINKS
- Pull back the curtain in the Wizard of Oz – https://www.youtube.com/watch?v=YWyCCJ6B2WE
- Cheap Trick, Don’t Be Cruel – https://en.wikipedia.org/wiki/Lap_of_Luxury
- Rockwell, Somebody’s Watching Me – https://www.youtube.com/watch?v=7YvAYIJSSZY
- Missy Arbuckle - https://www.linkedin.com/in/missy-arbuckle-841888167/
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 032 - To Move Onward, You Must Look Inward
Can we get personal for a moment? We've talked about real estate, our businesses, our taxes and our time management--but we haven’t talked about you. Successful business people must know themselves, be honest about themselves and be able to manage themselves, too.
Let’s be honest, we can be our own worst enemy! Understanding our psychology takes an honest and introspective approach. Then, our businesses can move onward and upward to greater things!
Agents, stop beating yourselves up! We are ALL playing the same real estate game. Together, we can figure out ways to love ourselves so our clients can love us too!
SHOW NOTES
- 01:05 – HORRIBLE English accents going on and a discussion about Squirt (the soft drink).
- 02:55 – To move onward, you must look inward. As stated by Yoda and Chewbacca.
- 03:45 – Song of the Episode: "Carry On My Wayward Son" by Kansas. Kerry Livgren wrote the lyrics and it was an “autobiographical” look at his life.
- 05:09 – Looking inward to move onward. B’s reality check. This is Cate’s episode. She wants to talk about agent’s mental health. Cate made me do it. She is a psych major. Christian: B’s deft touch is stunning, sensitivity, and love in his words.
- 06:20 – Cate has creative reins on this. “Between Your Lines”. Cate will be much better at this topic than B.
- 07:10 – This episode is more of the philosophical piece that is also very important. Be prepared to handle things that are thrown our way. Business can be mentally draining.
- 07:50 – Cate: before B & Cate met, B would work a 90-hour week.
- 08:35 – Cate: work within five categories: family & friends, career, financial health, physical health, and mental/emotional health. Balance in all is vital to success.
- 09:50 – Many agents miss out. This industry can drain you, drag you down, make you into a “not nice” person. What are you sacrificing? Family, friends, mental health?? A-hole Brian time. Not a good guy. Working and making money was all that mattered. Yuck!!
- 12:00 – Cate’s Side Note Tangent: boats. Cate can interrupt her own show with her own tangent. Different types of motors: outboard, inboard, I/O (inboard/outboard), jet drive, and sail boats. B & Cate grew up with different types and the debate ensues. Don’t forget the fan boat.
- 16:26 – Scale each item from 1to 10. What does a 10 look like for you? Go through each category and visualize what would be ideal for you. Then analyze where you are at?
- 18:00 – A 10 is not perfect to everyone, but what is a 10 look like for you?
- 18:45 – Facebook and Pinterest tries to “show” you what a 10 is, but the reality is much different. That is not realistic. What is the 10 for you? Not the movie version.
- 20:10 – Christian: it is hard to assign a number because people want that good number.
- 20:20 – Cate: life coach; introspective learning; go through each category. Very challenging but also rewarding. Clearer picture and live your life more intentionally.
- 21:20 – You are not going to hit that 10 every day. Life is a journey, not an overnight change, and is filled with ups and downs. Get a life coach.
- 21:52 – Cate: a trained therapist can help. Accountability partner (not trained, but a respected friend or colleague) can help too. Many resources online.
- 22:18 – Take an individual vacation. Turn off phone and email. Take time for yourself to clear your head. B rides his Harley Davidson to clear his head.
- 23:20 – Take time so your natural thoughts can come out. Whatever it takes, you need to take care of you!
- 23:52 – Clients will benefit as you are working out of desperation and lack of focus. Create raving fans that see you are focused and living a 10, not the 4.
- 24:34 – Live your life intentionally. Focus on the areas that you want to work on. If exercise is not it, that’s fine. It is YOUR life. Choose your 10’s and what is important. B’s 10 is a pizza with bacon, breadsticks and a drink.
- 25:32 – Quote of the Episode: “If you don’t take care of yourself, it won’t matter if you take care of your clients” -B; You can be the best agent in the world, but if you aren’t happy with your life, you become a “shell” of a person. Fill your heart with all the things that matter to you. Clients will see it and will enjoy the experience even more.
- 26:18 – Closing: Look at the 5 categories of your life (family & friends, career, financial, physical, and mental health); take an introspective look at each; rank them from 1 to 10; what does a 10 look like to YOU?; This is a journey, get help. Help yourself agents, YOU are worth it!! We are here for you too. Reach out if you'd like to talk!
SHOW LINKS
- Squirt – https://www.drpeppersnapplegroup.com/brands/squirt
- Pop, coke, soda debate – https://www.businessinsider.com/soda-pop-coke-map-2018-10
- Wookie, Kashyyyk – https://starwars.fandom.com/wiki/Wookiee
- Kansas, “Carry On Wayward Son” – https://www.youtube.com/watch?v=P5ZJui3aPoQ
- Supra boats – https://www.supraboats.com/
- Fan boats – https://en.wikipedia.org/wiki/Airboat#:~:text=An%20airboat%20(also%20known%20as,bowfishing%2C%20hunting%2C%20and%20ecotourism.
- Pinterest – https://www.pinterest.com/
- The Notebook – https://www.imdb.com/title/tt0332280/
- Caddyshack, Carl – https://www.youtube.com/watch?v=kpd8ecH8uos
- Harley Davidson – https://www.harley-davidson.com/us/en/products/bikes.html
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 031 - Clock Is Ticking On Time Management
Of all the resources we have available to us, "Time" is the singular item that is non-renewable. It doesn't matter who you are or what you do, there are only 24 hours, 1,440 minutes, or 86,400 seconds in every day…depending on how you to count.
Many of us waste our precious seconds and will never get them back. Time management is cliché, but it's cliché for a reason. IT MATTERS!
Let's craft a plan that works for you and the way you work. The clock is ticking…are you ready?
SHOW NOTES
- 01:10 – Virtual hug but in person? YouTube watchers are “missing” so much.
- 01:37 – Christina is drinking a “Producer Christian”, which is a variation on the “Arnold Palmer”: Coke Zero with a splash of lemonade.
- 02:08 – How do you say “Arnold Palmer” and who is he? Competitive skydiver.
- 02:50 – The clock is ticking on your time management. How to frame your days and weeks better.
- 03:23 – Episode Song: Styx. Debate on adding an “s” to words.
- 04:20 – Styx: Too Much Time on My Hands; Agents always say you have so much time on their hands and don’t need help.
- 05:22 – Time management is NOT just a cliché. What does it actually mean and why does it matter? Your business needs it; your mind and well-being needs it; and your family needs it.
- 07:14 – Cate: Using your time more intentionally and working more effectively to make use of your time.
- 07:33 – Cate doesn’t like the phrase “work/life balance”, she prefers “work/life integration” or “career lifestyle”. Always working but doing your own thing too. Valuing time more than money. Our personal time and work time are integrated every day. Blending tasks/multitasking – reply to emails while cooking dinner; on laptop outside while kids are swimming in the pool. Doing things you enjoy while working: Lunch dates with friends and networking. Pick a hobby that allows you to build relationships with others.
- 09:25 – Blocking time but there are things you can do at the same time. Finding ways to blend work into your life so you can be present, handle tasks and complete work.
- 10:08 – Cate’s Side Note Tangent: Top 10 Hobbies of the rich: collectibles, automobiles, exercise, boating, wine/spirits, politics, running for office, fashion, art, travel, philanthropy.
- 12:42 – Christian’s hobbies: cars, technology. B: cars, LEGOs, collectables, Star Wars, metal art, building things.
- 14:25 – Do as we say, not as we do.
- 14:33 – Planning in a way that works for you. Daily, weekly, and batching are suggestions. B does his weekly and here is what he does.
- 15:27 – Some people do it daily. Things change and might need to move things around. Designate tasks throughout your day.
- 16:10 – Cate: Batching – theming your days or batching tasks. Blocking – I’m going to spend ____ hours/minutes on a task. Make sure to build in buffer time so you can be flexible.
- 17:00 – Things will come about and throw off your schedule. Buffer time gives you flexibility to deal with the unforeseen issues.
- 17:40 – Prioritize your tasks. Eat the frog or eat the elephant. Time sensitive items take precedent.
- 18:22 – Prioritize items that you don’t want to do. “Eat the frog”, knock out the difficult task or task you don’t want to do first so it doesn’t occupy your mind all day.
- 19:05 – Next: Organize your tasks than plan for them. Set out your tasks so you know the progression and what you need to do next. Allot for changes. Nothing but love for Cate.
- 20:10 – Cate: Software is available. B uses Pages on his iPad to write out what needs to be done each day. Written down so it is not forgotten and not occupying your mind by trying to remember what you needed to do.
- 20:55 – Thinking about Business items: OINII – On It, Not In It. Transactional items are “in” your business”, but don’t forget to work “on” your business. Marketing, contacts, etc. “In it” is important too, but don’t forget the “on it” items.
- 22:07 – Make time for yourself, setting a precedent for your clients, co-workers, and your family. Don’t forget your why. Your ability to handle issues because you have planned can show all of those people how great you are and also how “not” great you are.
- 23:00 – Cate: we have the privilege as an agent to have some flexibility to not be tied to an office desk but be sure to blend your personal and professional lives.
- 23:26 – Episode Quote: “Time and money. Two great resources you have at your disposal. Only one of them is non-replenishable. Choose wisely what you spend your resources on.” -B. Time is an asset that is wasted.
- 24:30 – Closing: Time management truly is important for your business, mental health and personal life. The only right way to manage time is to set a plan that works for you. The only wrong path is not doing it at all. Be intentional. Prioritize, organize, and plan your tasks. Don’t forget your OINII. Include all aspects of your life. Your real estate career counts on it. It is not altruistic or cliché, do it.
SHOW LINKS
- Arnold Palmer drink – https://www.askchefdennis.com/perfect-arnold-palmer-drink/
- River Styx in Greek Mythology – https://en.wikipedia.org/wiki/Styx
- Achilles Heel – https://en.wikipedia.org/wiki/Achilles%27_heel
- Styx - "Too Much Time on My Hands" – https://www.youtube.com/watch?v=5XcKBmdfpWs
- Cassingles – https://en.wikipedia.org/wiki/Cassette_single
- Top Ten Hobbies of the Rich – https://hobbyhelp.com/inspiration/hobbies-of-the-worlds-richest-people/
- Metal Art – https://www.metalearth.com/
- “Eat the frog” – https://blog.noisli.com/what-it-means-to-eat-the-frog/
- Apple Pages – https://www.apple.com/pages/
- Dustin Harris, OINII – https://theappraisercoach.com/podcast/
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 030 - What is Your Why?
Motivation! How many times do you hear, “You have to keep yourself motivated!” It’s true. The real estate industry will beat you down if you let it.
Although this may sound altruistic and clichéd: EVERYONE needs a pick me up and a reason to get through those tough times. The question is, what motivates you?
Do you have some way to remember it on a daily basis? Just like a plan, your motivation needs to be in your face every day. In this episode we talk about the "how" and to your "why".
Find your motivation, write it down and let it lift you up when you need it most! Your clients will thank you!
SHOW NOTES
- 01:13 – We started less than 6 months ago and we are already on episode 030.
- 02:25 – Episode song of the week: The Why Store, “Lack of Water”.
- 04:43 – What is your why? What is your motivation? Things that keep you going. It is not an altruistic thing.
- 06:02 – Side note tangent w/ B, Happy Superman Day! When is The Wasp Day?
- 07:12 – Cate: Birdy in the back of your head that keeps you going.
- 07:20 – Helps remind you that you got in this business for a reason. Tired of a having a boss. Make more money. Control your own destiny. Real estate is so easy. ALL of you had some reason to get into the business.
- 08:50 – This industry beats you down. You chose to get into this industry, and you don’t want to go back to your old life with a boss, no money, etc.
- 09:20 – It is necessary to WRITE IT DOWN! A quote, a phrase, a picture…
- 10:15 – Side note tangent w/ B, What is Superman’s dog’s name? Krypto.
- 10:33 – Cate: Create a vision board. Put it everywhere!
- 11:23 – Let it remind you why you are tolerating the craziness so you don’t punch someone in the face…metaphorically speaking of course.
- 11:43 – Side note tangent w/ Cate: Full of random fun facts and useless information. Many successful people have a vision. Jim Carrey wrote a check to himself for $10 million. Will Smith introduced himself as an actor even before he became big. Visualize your reality and make it come true.
- 14:05 – Cars movie, Lightning McQueen had a blue line that showed the “vision” down the track.
- 15:30 – The business will kick you in the gut and kneecap you, Tonya Harding style. The motivation will remind you why you are taking those punches.
- 16:40 – What is the BTL team’s why?
- 17:10 – B: my kids! My legacy is important. Something to be proud of. They get the motivation and be the best they can be. My quote: “Remember who is watching!” I’m going to set an example to my kids.
- 18:24 – Christian, outside of the tens of dollars we pay him, what is his why? Like working with people, technical side is fun and enjoys the creativity. Making something out of nothing. Blank canvas is a blessing and a curse. Making something that is here now but wasn’t there before.
- 19:45 – Cate’s why: 1) kids, make sure they grow up to be happy and good people; 2) our agents, see them succeed and enjoy this career; 3) clients, love seeing them enjoy their homes and make it their home. Warms her heart to see them enjoy their home.
- 20:25 – Those are things that really matter…Cate also her eye on a Porsche GT 911.
- 21:05 – Quote of the Episode: Zig Ziglar, “People often say motivation doesn’t last. Neither does bathing, that’s why we recommend it daily.” You need motivation EVERY, SINGLE, DAY!
- 22:40 – Closing out the episode: motivation will get you through the tough days; write it down; put it everywhere. When you get sick of this industry, look at it and let it remind you why you are in this crazy business.
SHOW LINKS
- Abbot & Costello, Who’s on first? – https://www.youtube.com/watch?v=kTcRRaXV-fg
- The Why Store – “Lack of Water” – https://www.youtube.com/watch?v=h_XYNYmievg
- The Vogue – https://thevogue.com/
- Superman Day – https://www.daysoftheyear.com/days/superman-day/
- Krypto – https://en.wikipedia.org/wiki/Krypto_the_Superdog
- Jim Carrey wrote a $10 million check – https://medium.com/@socialmediajosh/why-jim-carrey-wrote-himself-a-10-million-check-before-he-had-10-million-3618090c9e
- Cars movie, opening race – https://www.youtube.com/watch?v=cuYOeFDuBmg
- Tonya Harding – https://en.wikipedia.org/wiki/Tonya_Harding
- Porsche GT 911 – https://www.porsche.com/international/models/911/911-gt3-models/911-gt3/
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 029 - Mid-Year Review 2020
Ever hear the expression, “Close only counts in horseshoes and hand grenades?” We all talk about doing better at our craft, but how do we know if we are moving forward?
Are you close to your numbers? Do you know your metrics? In B’s experience, many agents are great at their craft, but not so great at tracking their business. They're too easily satisfied with being “close” to their planned numbers.
We are midway through the year, so now is a great time to either review what you have done, or create metrics so you can review them at the end of the year.
A healthy business plan will include tracking ALL of your numbers, not just sales you have closed. Where are you on your business budget? Your client contact plan? Your customer satisfaction? If you don't know the answer to those questions, you’ll want to listen to this episode.
SHOW NOTES
- 00:38 – Angie, we are helping you today, but today it is only Angie.
- 01:37 – Mid-year review; Coronavirus, murder hornets, riots, landslides, what is coming up for the next six months? Aliens?
- 02:40 – Talking about how far we have come with the podcast and also about things agents can do because we have room for change.
- 03:05 – Song of the Episode…that we don’t play (doggone copyright rules): Smashing Pumpkins, “Perfect”. This was their mid-career album.
- 05:20 – Quick debate over how perfect B is.
- 05:30 – Agents should tracking metrics. Did you set goals for 2020? They probably changed due to Coronavirus.
- 07:08 – Agents are business owners and are likely making mistakes: lack of planning, lack of follow through, lack of tracking and lack of review.
- 08:22 – What has the first part of the year look like for you? Look at what you have done so far. How does it compare with your plan from the beginning of the year?
- 09:30 – There is still half of the year left to kick things in gear. Maybe you haven’t hit your goals, but there is still plenty of time to get after those goals.
- 10:05 – Cate: use a goal checklist. Review your numbers from what your goals were and where are you now? Phone calls, emails, contacts? What do you need to focus on to finish out the year?
- 10:34 – You can also make corrections now. Example: marketing “touches” with clients. Maybe the quarantine changed your numbers. Revise your numbers if needed to account for what you couldn’t do over the past six months.
- 11:30 – Cate: If you aren’t going to be able hit your numbers because of the happening in the first half of the year, adjust those numbers and go at them hard for the second half of the year. Do something to offset what you couldn’t do. Be flexible.
- 11:54 – Do NOT beat yourself up. Things happen and you need to be flexible and adjust when necessary.
- 12:36 – A big problem for many people is that they don’t even know if changes are needed. They don’t have anything written down and don’t know what might need to happen. “I want to sell more”, that is not specific. Be specific.
- 13:10 – Have a trackable metric. What is more? Be specific on what “more” is.
- 13:45 – Cate: acronym SMART – Specific Measurable Achievable Relevant & Time bound.
- 14:10 – Some agents will have some numbers written down. Many don’t. It is the middle of the year…you still have time to do something.
- 14:48 – Cate’s Side Note Tangent: Cate’s goals from 10 years ago…be debt free, building a dream home, trip down east coast, Santorini, Greece, pilot’s license, lake house on Wawasee, gallop on a horse (not trot or jaunt), flip a house, skydive, and learn Spanish.
- 17:46 – B’s life goals: pole barn, retire with a beautiful lady at my side.
- 18:18 – Christian: drive at Road America.
- 19:07 – Things to include in your metrics: systems to handle your transactions and agents
- 20:08 – Budgets: with income & expenses (fixed and variable; annual vs. monthly)
- 21:20 – Cate: major life event changed budget and you need to change
- 21:50 – Time management: Do you have one? How is it going?
- 22:06 – Client satisfaction: surveys, third party company. Clients are not rating you as high as you thought.
- 22:40 – Get a business coach! B can help if you want his assistance. The cost you pay for a coach will be more than offset by the expenses & additional taxes you pay and money you spend.
- 23:22 – Between the Lines being transparent. The spinoff, Between Your Lines is not doing as well. We are not above having metrics. What are our goals and numbers?
- 24:45 – Christian: What were we going to do with the podcast? Make YouTube site, on iTunes and Spotify, Instagram, Facebook, expanded brands, websites…none of that existed or was used. Minimal use in 2019 to ramped up throughout 2020.
- 26:29 – Now all we need are listeners…more than just Angie.
- 26:40 – We passed 1,000 downloads much sooner than expected.
- 27:03 – We have work to do, but early on we are hitting high numbers with baby steps.
- 27:35 – We are proud of our creative team: Christian, Jordy, Kate Sowles and Mal. They have our back and make us look good.
- 27:52 – Another huge change, our email service providers from Mailchimp to Constant Contact, so our email list is growing.
- 28:35 – We are very proud of what we have done. We still have more to go. Getting into a groove.
- 29:15 – Producer Christian & Cate are much happier since they have been part of the podcast.
- 29:53 – Cate: baby steps are still forward steps. Small steps are okay and good. Don’t get down on yourself. Be flexible and adjust when needed. How do you eat an elephant? One bite at a time.
- 30:53 – Christian: Bill Gates quote. Keep end goal in mind. Don’t have to do it all in one day. Keep moving forward.
- 31:45 – Quote from the Episode from B. If you want a hugely successful business, you need to have goals and metrics that are written down with timeframes that are achievable.
- 32:29 – Closing: Goals can make or break your business. Write them down, track them and change them when needed. It is NOT too late to do this. Make a change now. Take the time to get it down and you will be happier.
- 33:06 – Thank you for listening! Make your day legendary!
SHOW LINKS
- What does "Evergreen" mean? – https://www.thoughtco.com/what-is-evergreen-content-definition-dos-and-don-ts-2316028
- Smashing Pumpkins, “Perfect” – https://www.youtube.com/watch?v=VKYY8DxVZHE
- Stone Temple Pilots – https://en.wikipedia.org/wiki/Stone_Temple_Pilots
- The Office – https://www.nbc.com/the-office
- SMART acronym – https://corporatefinanceinstitute.com/resources/knowledge/other/smart-goal/#:~:text=SMART%20is%20an%20acronym%20that,Achievable%2C%20Realistic%2C%20and%20Timely.
- Santorini, Greece – http://www.visitgreece.gr/en/greek_islands/santorini
- Lake Wawasee – https://en.wikipedia.org/wiki/Lake_Wawasee
- Road America Race Track – https://www.roadamerica.com/
- Constant Contact – https://www.constantcontact.com/
- Indiana Real Estate Institute – https://www.indianarealestateinstitute.com/
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 028 - Are Appraisers the Devil? PART 3
Are you a Netflix binge-watcher? Then, we have a 3-part binge worthy-listening opportunity for you! In our 3-part series all about how to more effectively price properties, we dive into understanding more about the appraisal process.
Part 3, similar to a great Star Wars Trilogy, ends with a triumphant conclusion of how to more successfully challenge an appraisal. Preparation is key here as Jedi Mind Tricks won’t work on the strong-minded.
We talk about what to share with an appraiser; how to present it; and what to include with an appraisal packet. If you want better results in appraisal reports, be proactive!
Be sure to watch our accompanying breakout video where B explains what to include in an appraisal packet. No, appraisers aren’t the devil! They provide a service. Understand how the appraisal process works and what is expected, and you'll get better results in your next appraisal.
SHOW NOTES
- 01:00 – B & Christian side with horns and Cate with her halo.
- 02:25 – Song of the week: It’s What you Value, George Harrison
- 05:03 – Part 3, How to prepare for an appraisal and how to challenge an appraisal more successfully.
- 05:33 – Ask B for document about how to prepare for an appraisal.
- 06:27 – Have your home “showing” ready. Make sure access to all areas of the home is available. Leave a ladder. Make sure utilities are on.
- 06:55 – Question: Should anybody be at the home? Probably not, they are distractions, talk about things you don’t want appraisers to hear.
- 07:51 – Cate: has a checklist to prepare for appraisal. Make sure car is not in garage blocking attic, etc.. Stay out of appraiser’s way.
- 08:50 – A checklist and a reminder to help homeowner prepare.
- 09:10 – Leave an appraisal packet (watch B’s breakout video on what to include). Be proactive, not reactive.
- 09:45 – Typically, if agents leave anything, it is only comparables and that is not enough. Appraisers have comps already, unless you know of something that is hidden or unavailable.
- 10:25 – Have an adjustment grid that includes comparables on a grid and have been adjusted. Gives you a legitimate response to get the number you want.
- 11:15 – Have a list of updates. Helps appraiser “sell” the report to the lender. Include an explanation.
- 11:45 – Cate: What about cookies? The size of the bottle of Captain Morgan is directly proportionate to the value.
- 12:47 – Cate: appraisers are human. Make home welcoming. Present home well. The appraiser will leave with a better feeling about the property.
- 14:10 – B got bit by a dog and didn’t leave the house with a positive image. Value was fine though.
- 14:26 – Cate’s Side Note Tangent: Cate had a buyer with a high list price. She called Super B, the best appraiser in town. Cate ALLEGES B didn’t know how to appraisal the property.
- 18:00 – How to challenge an appraisal MORE successfully.
- 18:10 – Listen to part 1 & 2 for some guidance on how to get ahead of issues.
- 18:39 – Make sure you and the appraiser are comparing apples-to-apples. Do you both have the same square footage, room count, updates, etc.
- 19:16 – Who is right? Appraiser or assessor? B is ALWAYS right. It should be the appraiser, but not all are equal. Some do not measure the property.
- 19:50 – Cate: Appraiser should be sketching the property, whereas the Assessor does not visit or measure the home.
- 20:10 – Look at the comps and get ahead of issues. Divorce, size, condition, etc.
- 20:55 – Cate: multiple offer situation. Buyer offers above list price, prepare them to see if they ready to come up with the difference in cash if the appraisal does not come in at purchase price. Write it in the offer to make it stronger. Price isn’t the only factor. Make clean offer. Negotiate other items. Seller might not want to accept over list price from buyer if appraisal is presumed to be an issue.
- 22:10 – Prepare for all things that could happen.
- 22:26 – Quote for the podcast: “There are some things money can’t buy…like manners, morals, integrity and professionalism.” -B Be the professional and your business will thrive. Get the appraiser good information at the right time.
- 23:12 – Closing: Have home ready for appraiser. Leave solid data. Challenge with solid evidence. Make sure everyone is making an apples-to-apples comparison. Are you on the same page?
- 23:55 – Thank you for listening to our 3-part series and will have more in the future. Make your day legendary!
SHOW LINKS
- It’s What you Value – https://www.youtube.com/watch?v=KL6UsDlO86E
- Beatles White Album sold in 2015 $790,000 – https://www.businessinsider.com/ap-rare-pressing-of-beatles-white-album-sells-for-790000-2015-12
- Jim Irsay bought Ringo’s drum kit – https://www.rollingstone.com/music/music-news/colts-owner-why-i-paid-2-2-million-for-ringo-starrs-drum-kit-60879/
- Cotton Candy Grapes – https://en.wikipedia.org/wiki/Cotton_Candy_grapes
- Captain Morgan – https://www.captainmorgan.com/en-row/
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 027 - Are Appraisers the Devil? PART 2
Are you a Netflix binge-watcher? Then, we have a 3-part binge-worthy listening opportunity for you! Welcome to our 3-part series all about how to more effectively price properties. In this series, we "deep dive" into understanding the appraisal process.
In today's episode--PART 2--we show you how to write a better CMA and what an appraiser is thinking about when they're evaluating the data. We discuss items like comp selection, gridding comparables, and adjustments to give you a better handle on the valuation process.
Be sure to watch our accompanying breakout video as B explains the difference between "Qualitative" and "Quantitative" adjusting. Sometimes, it's the little things that can make the difference between a good and a great CMA.
No, appraisers aren’t the devil! They provide a service. If you can understand how the appraisal process works and what is expected, then you'll get better results in your next appraisal.
SHOW NOTES
- 01:10 – B represents the appraisers and Cate the “angel” is here to represent the agents.
- 01:40 – Song of the week: Devil Went Down to Georgia, Charlie Daniels Band
- 02:40 – Christian: name one other Charlie Daniels Band song? “In America.”
- 04:15 – How to create a CMA: comp selection, gridding comparables, adjustments and reconciling.
- 04:38 – Cate: CMA is a comparative market analysis; not an appraisal.
- 05:22 – Christian: how close is the appraised value to a CMA value.
- 06:18 – CMA is “rudimentary” or as detailed as an appraisal. CMA doesn’t have much regulation. Appraisal will have more detail.
- 07:40 – CMA should look “more” like an appraisal report in the steps.
- 08:00 – Appraiser may not choose the same comparables as the agent due to appraisal requirements and guidelines that the agent is bound by.
- 08:30 – B’s example of ranch home being appraised and what comp might be needed for value AND for underwriting.
- 09:45 – Cate: doesn’t make sense to use the 2-story comp, but appraiser has to make the underwriter happy.
- 10:08 – Comparable searches should start with the major variable such as size, bedroom count, design, lot size. Realize you are not going to always find the most ideal comparable properties.
- 10:55 – Complicated property or an area without a lot of comparable sales: use the “floor” and “ceiling” method. Find a comp that is better overall than your property that sets the ceiling (high number), my home is NOT worth more than that property. Find comp that is inferior overall that sets the floor (low number), my home is worth MORE than that property. Sets a range to work within.
- 12:22 – Cate: as a newer agent, floors and ceilings is a great way to practice. Helps when presenting to seller and buyer.
- 13:03 – Helping people understand and see the numbers. Searching for comparables is tough.
- 13:27 – Consider using pending, listings and expired listings to help. They are not ideal but can be helpful.
- 13:47 – Cate’s Side Note Tangent: fiddles (aka violins) appeared about 1,100 years ago. Fiddle is more for dancing and violin is more for the classical music playing.
- 14:55 – Cate: did you play an instrument? B – bass guitar; Christian – played drums his whole life; family played in a house band and got to meet many famous country music singers. Super B did not sign his autograph book.
- 17:40 – Properly grid comparables is HUGE! B is right every single time! You’re right B.
- 18:40 – Having the comps on a grid allows you to see all the element of comparison so you make a more critical look at the properties.
- 19:05 – Excel spreadsheet that agents can use. Email B if you would like a copy of that grid.
- 19:30 – Apply the adjustments. What is a fireplace worth? The adjustment is the LAST thing you need to worry about. The adjustments will make little difference comparables to the property you select as comps and how you grid them.
- 20:05 – Adjustments are extremely hard to argue for or against and hard to make a claim on the adjustment number. Look at the other parts of the value to make the stronger appeal.
- 20:30 – Cate: start off with baby steps; pros and cons to each property.
- 21:10 – Qualitative versus Quantitative adjusting. Qualitative is must more effective: is the element in the comparable (ex. fireplace, garage, basement) better, worse or the same as the subject. That is an excellent place to start.
- 21:38 – Cate: the adjustments are always made on the comparables, not the subject.
- 22:00 – Foreshadowing: CBS and CIA. A good memory tip to keep your adjustments in line.
- 22:13 – Last part: Reconcile your value. EXPLAIN what you did. Why do you like your comparables? Why did you do what you did? What is your rationale?
- 23:06 – Cate: describe things the appraiser may not know. Home next door sold but had a flooded basement. Similar property in the subdivision had high motivation.
- 23:20 – Example: comp across the street that was, on paper, a similar property. However, the sellers were divorcing, and the condition was not the best. None of that known by the public.
- 24:08 – Cate: appraisers are human! They must follow certain guidelines. Communicate with your client to set expectations. Offer as much information as you can to the appraiser to make their job easier.
- 24:48 – Quote of episode: “Value what you bring to the table. It may not be everything, but your anything is better than other people’s nothing.” Do not let your lack of knowledge keep you from being legendary. We all started somewhere.
- 25:37 – Focus on comparable selection with floors and ceilings; properly grid those comparables to prove to yourself the numbers; know that adjustments are required but are not the be all, end all; lastly, RECONCILE your number; explain what you did.
- 26:10 – Closing, part 3 is next week. Make your day legendary!
SHOW LINKS
- "Devil Went Down to Georgia" – https://www.youtube.com/watch?v=wBjPAqmnvGA
- "In America" – https://www.youtube.com/watch?v=Hm4_rXQAyLM
- What is a CMA? (realtor definition) – https://www.realtor.com/advice/sell/understanding-the-comparative-market-analysis/
- What is the CMA? (Country Music Awards) – https://cmaawards.com/
- What is CMT? – http://www.cmt.com/
- Violin vs. Fiddle – https://www.zaretandsonsviolins.com/blog/what-is-a-violin-and-what-is-a-fiddle-25312
- Step Brothers movie: “Did you touch my drum set?” – https://www.youtube.com/watch?v=Fpa5ReX0QFA
- Sing Kumbaya - https://www.youtube.com/watch?v=IAIq9fGGDfc
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 026 - Are Appraisers the Devil? PART 1
Are you a Netflix binge-watcher? Then, we have a 3-part binge-listening opportunity for you. Welcome to our 3-part series, which is all about how to more effectively price properties. We also dive into understanding more about the appraisal process.
In Part 1, we give you tips on working with the appraiser and providing information about rules and guidelines that they must follow. Those “rules” are often misquoted, misunderstood, or sometimes flat out wrong.
Be sure to watch our accompanying breakout episode where B explains why the "price per square foot" method to valuing property is incorrect. You don’t buy cars by weight, why are you selling homes by their size?
No, appraisers aren’t the devil! They provide a service. Understand how the appraisal process works and what is expected, and you'll have better results in next appraisal.
SHOW NOTES
- 01:47 – Are appraisers the devil? Angel agents represented by “angelic” Cate.
- 03:30 – Song of the podcast, “Devil Inside” by INXS.
- 04:13 – B’s own “side note tangent” (not stealing Cate’s theme song); best High School party ever: "Downstairs at B’s".
- 06:00 – B is an appraiser is definitely not the devil…unless you mean devilishly handsome.
- 06:10 – Appraisers are not out to get agents or “kill the deal”. B admits appraisers go to evil appraisal school.
- 06:48 – What makes agents mad is the misunderstanding and lack of knowledge in the processes and expectations. All professionals have rules and requirements. Let’s talk about those.
- 07:42 – An appraisal is an OPINION of value. Appraisers work for a client, typically the lender, and is used for the underwriting purposes to judge the collateral for the loan.
- 08:50 – Cate: pass along this information to the client (buyer, seller). Appraisal is for the lender.
- 09:15 – Value is based upon what the greatest number of buyers, not what one buyer will pay for it. Not just what your buyer thinks.
- 10:25 – Cate: The lender doesn’t care about your client’s opinion. The “golden rule”.
- 10:36 – The appraiser has to “sell” the report to the underwriter/lender. They can write a report with the number everyone wants, but if the lender doesn’t believe it or find it credible, your clients won’t get the loan.
- 11:20 – Cate: had this happen to her. Appraisal met the purchase price, but the lender didn’t like the report and threw out the report.
- 12:08 – Christian: big multi-parter
- 12:40 – Can you talk to the appraiser? YES you can! There is a “good” time and a “bad” time. Know the difference and use it to your benefit. The good time is before the report is written and transmitted to the client (lender). Bad time is after that event.
- 14:10 – Cate: Side Note Tangent, Cate and B’s first meeting set the tone for the rest of their relationship…B came in “low” on one of her listings. Appraisal came in at “market value.” Christian is seeing the healing.
- 16:55 – How to communicate with an appraiser? BE NICE! You get more flies with honey than you do with vinegar. Don’t come at the appraiser with anger.
- 17:49 – Use kind words, but also bring helpful data. Give your thought process. Give evidence. Appraisers are not interested in your opinion without something to back it up. Only providing comps is not enough. You don’t like what the appraiser has done, explain why.
- 18:50 – Christian: flies and honey went out the window. Appraisers really are the devil.
- 19:07 – Cate: back up your data. Tools are available to run stats and analyses. Trend analysis.
- 20:00 – Christian understands that appraisers are human too and have feelings. If only Cate understood. Sigh…
- 20:50 – Rule vs. Guideline issues. Most of the time rules are NOT rules but rather they are guidelines, such as time and distance parameters.
- 22:15 – “I can’t use that comp.” is usually meant that the appraiser doesn’t “want” to use it, not that that they “can’t” use it.
- 22:35 – Cate: lender may have a rule or guideline so keep that mind as that can affect the appraisers work process and comp selection.
- 23:00 – BREAK OUT: Don’t use price per square foot for your valuation. We don’t buy cars by weight. Don’t sell your homes by size.
- 24:40 – Pretentious Porsche lovers vs. Camaro guy.
- 25:27 – Inspiring quote: Where there is no knowledge, there is no value.”
- 26:10 – Appraisers really are saint-like. Understand the appraisal process. Knowing the good and bad time to talk with the appraiser. Communicate useful information to the appraiser. Know appraisers must “sell” their report to the lender.
- 27:05 – Closing, part 2 is next week. Make your day legendary!
SHOW LINKS
- INXS, “Devil Inside” – https://www.youtube.com/watch?v=hv_zJrO_ptk
- Yaz, Upstairs at Erics – https://www.youtube.com/watch?v=tLTGs4fqxBk&list=PLjIuADMrDKIaJThxTsBFO7d-tIiZfSsli
- Definition of an Appraisal – https://en.wikipedia.org/wiki/Real_estate_appraisal
- The Golden Rule – https://quoteinvestigator.com/2015/01/11/has-gold/
- Car and Driver review, Porsche Taycan vs. Tesla Model S Performance – https://www.caranddriver.com/reviews/comparison-test/a30799498/2020-porsche-taycan-turbo-s-vs-2020-tesla-model-s-performance/
- Camaro ZL1 vs. Porsche GT3 – https://fastestlaps.com/comparisons/bdcelcp2skpk
- @ProducerChristian on Instagram - https://www.instagram.com/producerchristian/
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 025 - Are You Mad? Put On A Cape. Now You're SUPER MAD!
Who is your favorite super hero? Iron man, Wonder Woman? The Wasp? Before you decide, listen to get to know "Super B"! Today we had a surprise visitor! (From another planet? Certainly from another reality.) Super B filled in when Brian was nowhere to be found.
You're gonna wanna see this episode on YouTube: https://youtu.be/HOaYru_aQ-k
Super B talked about how understanding real estate processes gets better results than just being upset and yelling about the situation. The more you know, the better you can serve your clients and your business. Don’t be mad. Learn more about how other real estate professionals do things and you can be a super hero to your client, too!
SHOW NOTES
- 00:30 – Where’s Brian? Cate takes over while he is gone. BOOM! We meet Super B!
- 01:30 – One of Super B’s superpowers is showing up on time and reading a script.
- 02:45 – Song of the week:
- 03:50 – Facebook comment: An appraiser and inspector should only be paid if the transaction closes. VERY short sited and misinformed position.
- 04:45 – Appraisers are superheroes are their own circles. They are not out to “kill” a deal. There is usually more work for the appraiser when there is a “low” appraisal.
- 06:00 – There are a few bad apples and do a bad job. Inspectors, appraisers, lenders all have bad characters, but most of those individuals are great and do a great job.
- 06:25 – Cate: Appraisers and inspectors are to provide information. It may not be what you want to hear, but you must hear it, nonetheless. Good to know it now instead of later. Let’s focus on how you react to the information.
- 07:05 – Christian: Has Super B ever saved an appraiser? No need, they are superheroes. Superhero appraiser school with their tights…the required uniform.
- 08:00 – Learning the processes. Education is huge in understanding why appraisers, inspectors, etc. do what they do so you can work with them. Most of their processes are not to make you mad, but rather compliance issues or other requirements that they don’t control.
- 09:30 – So easy to criticize what others do when you don’t know what they do. Get educated.
- 09:43 – Cate: clients tend to get angry because they don’t know what to expect and the agents don’t spend the time to help their clients understand what is happening in their transaction. Educate your client so they don’t fly off the handle.
- 10:50 – Cate’s Side Note Tangent – angry people scare Cate. She has an anecdote about an experience up in Chicago when she was a bad driver. Super B is so sad he wasn’t there to save Cate.
- 13:15 – Super B reveals there is a Superhero HR department. Superhero issues with Super “girl” vs. Super “woman”. What does the manual say?
- 14:00 – Read #5: Be proactive, not reactive. Get ahead of problems, not wait for them to happen. Example: home inspections.
- 15:02 – Cate: Alarmist inspectors; remind your client that everything can be fixed. Hold their hand and ease their fears.
- 15:30 – Future episodes with Brian, the super appraiser.
- 15:45 – Pre- appraisal packet; Cate: get a sketch or measure square footage. If you knew the correct information, you would have a better valuation.
- 16:12 – Complaining about the process, especially on social media and in front of their clients. Makes agents look unprofessional. Your client is looking for your guidance and help. Your anger does not help. Drives your client out of control. Work toward solutions instead.
- 17:08 – Cate: take a step back; how can I make the situation better? Don’t act out of emotion, act out of education.
- 17:32 – Christian: Super B has nothing to complain about…especially not a scratchy mask.
- 17:55 – Super B quote of the week. Superhero meeting with The Wasp: “Be the hero they already know you to be.”
- 19:00 – As an agent, be the hero your client hired you to be. Do your super service. Be the hero they hired you to be.
- 19:28 – Super B’s phone is going off and he must fly off. A volcano is erupting in Hawaii.
- 20:30 – Brian shows back up after taking a call from an agent and is ready to record the podcast episode. He is completely unaware of the fact that Super B saved the day in his absence. Interesting that Brian missed Super B. Hmmm…
- 21:20 – Brian closes the episode: Don’t be mad, find solutions. Learn the processes. Be proactive, not reactive. Stop complaining. Be a professional. If you’re mad, put on a cape so you too can be SUPER MAD with Super B!
- 23:06 – Be a superhero for your client and be legendary!
SHOW LINKS
- You're gonna wanna see this episode on YouTube: https://youtu.be/HOaYru_aQ-k
- 3 Doors Down, “Kryptonite” – https://www.youtube.com/watch?v=xPU8OAjjS4k
- Seinfeld, “Breath taking” Episode – https://www.youtube.com/watch?v=E3xwFanvTjA
- Supergirl or Superwoman Debate – https://ew.com/article/2015/08/10/supergirl-superwoman-argument-cbs/
- YouTube video of the episode – ??? (didn’t know if we had a link for it yet)
- The Wasp, “Be the hero…” – https://www.youtube.com/watch?v=EaGXTa3DwRA&t=93s
- Hawaii volcano erupting – https://www.nps.gov/havo/planyourvisit/lava2.htm
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 024 - Is Fiduciary Just Another 9-Letter Word?
“Fiduciary” is not just a term you learned in pre-licensing class. The word has significant meaning to your client, your business, and your license retention. Outside of the legal issues that can come about if you don’t follow through with your agency duties, the longevity of your business depends on taking care of clients from A to Z.
Agents, do what all the cool kids are doing! Take care of your clients, act as their fiduciary, and I promise your business will thank you!
SHOW NOTES
- 02:30 – After the enthralling discussion about Star Wars LEGOs, toy stores and commercial jingles, we finally get started.
- 03:20 – Song of the episode: “Spoonful of Sugar”; Swallow our “medicine” as agents to do what we must. The sugar is when we receive loyalty from our clients.
- 04:45 – “Fidelity Fiduciary Bank” and Dick Van Dyke played the roll of the bank’s president
- 05:49 – Pre-licensing included a huge discussion about agency. Clients hire us for a reason.
- 06:40 – Think about your relationship with your doctor or attorney and how you like to be treated. Treat your clients the same way.
- 07:23 – Cate: Expectations of confidentiality. Clients “pour their hearts” out to you.
- 08:08 – Reminder of what Fiduciary means: you are an agent that has been hired by your client to perform a service and the agent is the client’s fiduciary. Fiduciary defined: faithful servant; involving trust. Ethically acting in another’s best interest. This is the law.
- 09:10 – Cate agrees with B…as expected.
- 09:18 – Technical piece: COLD-AC; Care, Obedience, Loyalty, Disclosure, Accounting, and Confidentiality.
- 10:20 – Care: how do you take care of your client? Can you take care of your client? Example: residential agent wants to get involved in a commercial transaction. You like cannot take care of your client in that transaction. Do not think about your commission. Think about your client, their needs and can you help your client.
- 11:45 – Disclose to your clients some options: 1) refer to another agent; or 2) align with another experienced agent to work together (share commission) to take care of your client.
- 12:35 – Cate: it becomes a “win-win”. You learn something new; you get some of the commission; and you take care of your client.
- 13:02 – Many other examples: mortgage, inspection, etc. What do you need to learn? What are your limits? Ask questions and take care of your client.
- 13:45 – Cate: B knows everything. Do you know the meaning of obedience? Doing what your client asks. Does not apply to spousal issues.
- 14:30 – Loyalty – putting my client ahead of everyone else. Putting my client’s best interest ahead of my client. My commission is not more important to what my client needs.
- 15:00 – You can other clients, but you are working only for one in each transaction. Where do your loyalties lie when you represent both the buyer and seller in the same transaction? You cannot have loyalty for both.
- 15:43 – Legal example: divorce; one attorney cannot represent both divorcing parties.
- 16:00 – Cate: “I’m looking out for your needs above and beyond anyone else’s, including my own.”
- 16:18 – Disclosure: if I become aware of any information, good or bad, that would affect my client, I am required to tell them about it. Examples: defect, zoning issue, etc.
- 16:45 – Accounting: monitor the financial aspect of the transaction, such as closing statements, lender charges, and also handling earnest money receipts and deposits. Commingling and conversion.
- 17:10 – Confidentiality: privileged information stays confidential. You don’t tell anyone…EVER! Same as “attorney-client privilege” and “doctor-patient privilege.”
- 17:36 – Cate: FOREVER…even if they gave you information 5 years ago. You take it to your grave.
- 17:50 – Movie that B cannot remember…The Firm. “You are ship out to sea and never find a port.”
- 18:35 – Christian: remember that you cannot keep illegal information confidential. You must disclose defects and other legal issues.
- 19:05 – Cate’s Side Note Tangent: B and Christian grew up in the same subdivision. B grew up in the slums of Carefree South. Small world!
- 22:17 – Dual/Limited Agency: B HATES this! Agents rarely handle it correctly, legally, and ethically. We are a professional industry and limited agency restricts that.
- 23:05 – What limited agency requires: disclosure to all clients that my agency duties are now limited and sometimes gone…such as loyalty. By definition, loyalty is GONE for each client. Disclosure and Care are both affected. In some ways, they are now both a customer, not a client.
- 24:18 – Cate: hard for both clients to walk away feeling like they were represented well. Example: blunt client: “just got the tri-fecta”. He didn’t feel he was represented well and only in it for the commission. If you want referrals down the road, limited agency is NOT the way to make that happen.
- 25:20 – Quote of the Episode: “Just having satisfied clients is not good enough anymore. If you really want a successful real estate career, you have to create raving fans.” -B
- 26:42 – Closing: remember COLD-AC. Make sure your clients understand them. Act like a professional. Building a long-lasting business filled with referrals counts on us taking care of our clients. Be their fiduciary and they will love you!
SHOW LINKS
- Children’s Palace Theme Song - https://www.youtube.com/watch?v=_pohJZ5HKi4
- Star Wars LEGOs - https://www.lego.com/en-us/themes/star-wars
- Jeopardy, Alex Trebek being savage - https://www.youtube.com/watch?v=MOK955yCrxw
- Mary Poppins, “Spoonful of Sugar” - https://en.wikipedia.org/wiki/A_Spoonful_of_Sugar
- “Fidelity Fiduciary Bank” – https://www.youtube.com/watch?v=XxyB29bDbBA
- COLD-AC – https://thismatter.com/money/real-estate/real-estate-agency.htm
- “The Firm” Movie – https://www.imdb.com/title/tt0106918/
- Carefree Subdivision – https://www.carefreeclub.org/
- Green Machine – https://www.walmart.com/ip/Huffy-Green-Machine-RT-20-Inch-3-Wheel-Tricycle/46533185
- Tickle Me Elmo - https://en.wikipedia.org/wiki/Tickle_Me_Elmo
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 023 - Negotiating Is NOT For the Weak-Minded
Negotiating can make or break your transaction, your credibility, and your business. If you're scared of negotiating, then your clients suffer. In this episode, we talk about Star Wars; songs from the 80’s; Cate’s and Christian’s plans for a new podcast.. Oh yeah, we also cover how to negotiate. Listen as B trys to save his relationship while negotiating out of a touchy situation--without the use of Jedi mind-tricks! As the title says, negotiations are not for the weak-minded. Learn a few quick techniques that will help both you and your client get what you want.
SHOW NOTES
- 02:13 – “The force can have a strong influence on the weak-minded.” - Episode IV (or Episode 1, based on how we're counting!)
- 02:33 – Not if you’re a Toydarian. If you are trying to negotiate, do not try mind tricks on Watto or other Toydarians.
- 03:20 – The song of the episode: Queen, “Under Pressure”
- 05:10 – Compromise conversation…Cate has a push back.
- 05:30 – How to negotiate to help our clients with their transactions. Negotiating with agents, clients, appraisers, etc.
- 06:40 – Most negotiations start with an “adversarial” position. Framing can make or break the negotiation. “I have to win” mindset can drive a bad transaction.
- 07:30 – Compromise defined: A settlement of a dispute in which two or more parties accept something less than they originally wanted.
- 08:15 – Ultimately working toward is getting a win-win. Example: we close on the transaction.
- 08:36 – Cate: Reframe what is a “win” for your client. Many ways to find alternate means to win. Not just “black or white.”
- 09:15 – Rare that both sides are far apart. Usually closer than we both think.
- 10:00 – Stop! Collaborate and listen! Cate and Christian want to start their own podcast…not about Star Wars.
- 11:00 – Stop and collaborate and listen to each other. We are going to slow down and relax.
- 11:20 – Cate: “Bite your tongue” until it “bleeds” because are so angry and caught up on “principle”.
- 11:48 – Work with both sides. B touts on Cate about her ability to work with both sides of the transaction. She will call the other side to find out what is important to them. She can structure a better offer.
- 12:54 – There is a difference between a “want” and a “need”.
- 13:22 – What is the ambition? Cate: Talk with the listing agent; can find out their ambitions.
- 13:50 – Christian has an anecdote about his transaction. Everyone worked together.
- 14:55 – Sometimes there are concerns that have nothing to do with the transaction at all. There might be something personal, something emotional going on. Sometimes there are issues that transcend the economics or quantifiable concerns.
- 16:15 – Have empathy. LISTEN to what is going on. Have sympathy for the other side.
- 17:45 – Christian got the win by understanding and negotiating with knowledge of what is happening between the parties.
- 17:55 – Cate’s “Side Note Tangent” – Cate’s first cassette was “Ice Ice Baby”. Did you know Robert Van Winkle, aka Vanilla Ice, has a show about flipping homes?
- 20:09 – Other tips to consider when negotiating: Let the other side win.
- 20:35 – Have patience (Shut up Cate). Psychological negotiations: let them sleep on it and let them sleep on it.
- 22:17 – Keep the discussion continuing without exhausting everyone.
- 22:25 – Sometimes people need their ego stroked.
- 22:50 – Cate: some people need to vent. Blurt it out and move on.
- 23:00 – Make sure you are playing fair. Don’t lie, cheat or steal. Maintain confidentiality.
- 23:30 – Engage with a third party. Get your managing broker involved. Sometimes have an “authority figure” can help relieve some of the strain.
- 24:10 – Cate: everyone has a different perspective and a different way to present things.
- 24:22 – Quote to close out: Compromise is a virtue to be cultivated, not a weakness to be despised.
- 25:10 – This is not for the win of my ego or my strength, it is for the good of my client and the transaction.
- 25:30 – Close out the episode with some final thoughts. Look for the smile on your clients face when you do a great job!
SHOW LINKS
- Is A New Hope really episode 1? - http://screenprism.com/insights/article/was-star-wars-episode-iv-a-new-hope-originally-released-under-another-title
- Obi-Wan Kenobi Quote - https://www.youtube.com/watch?v=532j-186xEQ
- What is a Toydarian? - https://starwars.fandom.com/wiki/Toydarian
- Queen & David Bowie, “Under Pressure” - https://www.youtube.com/watch?v=YoDh_gHDvkk
- Vanilla Ice, “Ice Ice Baby” - https://www.youtube.com/watch?v=rog8ou-ZepE
- Definition of Compromise - https://www.merriam-webster.com/dictionary/compromise
- “Let It Go” – https://www.youtube.com/watch?v=L0MK7qz13bU
- Vanilla Ice Project – https://www.diynetwork.com/shows/the-vanilla-ice-project
- Guns and Roses, “Patience” - https://www.youtube.com/watch?v=ErvgV4P6Fzc
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 022 - Marketing As Easy As ABC
Agents, stop making marketing so difficult! Stop doing things you hate and don’t want to do to acquire clients. Your clients can sense that sentiment right away. Both you and your sphere will get worn out. Stop wasting countless hours on traditional “marketing” processes that are either outdated or overplayed.
Work smarter--not harder--with your sphere and they'll send business like you won’t believe! Follow along with us on this episode to truly become a legendary agent and create raving fans!
SHOW NOTES
- 01:40 – Marketing as easy as ABC
- 02:20 – This episode is all about how to more effective “market” to your clients to achieve greater success.
- 02:45 – Getting our sea legs back with our segments; Song of the week: Jackson 5, “ABC”, recorded in the same month as the birth of B: greatness is born? No coincidence there!
- 04:58 – There are a lot of things that agents do in marketing that are likely not very effective, because all agents do it and it becomes white noise, vanilla.
- 05:25 – Agents are commonly taught there is one path to marketing: break marketing over the heads of your clients until you beat them into submission. WRONG!
- 05:55 – Recurring theme: work harder, work more hours, spend more time calling clients and begging for business. Not a good way to run a business. Wrong mindset, as people and the industry has changed.
- 06:20 – Cate: “Networking” is the old school method, instead use “Nurturing” relationships.
- 06:45 – Think about the last time you bought something…did you enjoy being sold? Did you enjoy the sales pitch? Pushed into it? Sometimes things agents do come off that way, even if it is unintentional.
- 07:35 – Cate: agents are taught to sell and sell ourselves. Change your mind. We are here to “educate” our clients. “Educate” them about you so it does not come off as a sales pitch.
- 08:05 – Think outside of the box. Do what other agents are not doing. We are looking for a long-lasting business.
- 08:25 – It is so much easier to have a great business when we act natural and be ourselves…not a salesperson. Relax!
- 09:15 – Be someone that people love, and they will become raving fans and send you business like crazy!
- 09:45 – Friend of the show, Terry Waggoner, said, “People want a friend, not a Realtor.”
- 10:05 – What does a friend do? Educate yourself on what your friend needs. Ask questions and listen.
- 10:26 – Christian: people are more likely to engage in a search for what they want, not a search for you. Problem they are trying to solve is their needs: schools, stores, etc. not what agent they want to work with.
- 10:55 – First thought is about their needs; Second thought might be what agent they want to use. The pesky agent (fly) might be too annoying and will be shooed away.
- 11:30 – “Marketing” is so easy: be natural, personal contact: lunch, dinner, a drink, hanging out at a pool.
- 11:55 – Cate: how she got going, “Me time”. Going to lunches with friends and have play dates with her kids and her friends kids. “Networking” in a way by sitting around, chatting about whatever (you know how ladies can drone on! (that was B)) and getting to know your friends better. The intent is not to get business from them, but to connect and the business comes later.
- 13:35 – Just hanging out with her “Man-hater, woman club.”
- 14:05 – Making calls just to see how your clients are doing. People like talking about themselves. Ask about family, job, funs things you have done, vacations, and good places to eat. Let them vent.
- 14:50 – Joy in our office reached out to elderly parishioners from her church to see if they were okay and if they needed anything. She planted the seeds that she was willing to help.
- 15:15 – Handwritten notes with a genuine message. Do not add the P.S. asking for business. Keep the note about them. No business card or anything else.
- 15:45 – Cate: Stalk your friends (in a non-creepy way) on social media and see what they have been up and send a note about what they did. Make it personal.
- 16:10 – Show your clients you love them, and they will love you back.
- 16:25 – Cate’s Side Note Tangent: B loves Star Wars; Star Wars Land for his 50th “They do their customer service right.” Clean, everyone had a smile, everything was convenient. Think about how Disney treats their guest. Agents should do the same for their sphere.
- 17:45 – B’s favorite part of going to Star Wars Land: building my lightsaber; the experience was “insane” and a theatrical event. Green for my lightsaber.
- 18:43 – Social media: agents throw too much of their business as their sphere. Make personal posts about your kids, pets, social gatherings. Pepper in real estate events. Your friends care WAY more about your personal stuff than your closings, pended properties, and new listings. You will get more engagement and interest from your personal posts.
- 19:26 – Look at what your sphere is doing on social media. Respond to their posts with happiness, excitement.
- 20:00 – Cate: engage with other people. Comment on their posts. They get so much excitement out of it.
- 20:13 - THAT'S marketing! It does not sound like it though because that is not what you are taught. It is not a generic post card or flyer. You’re doggone right it’s not! People don’t want those traditional marketing things.
- 20:42 – B trying not to be arrogant: B know about a lot of things and many people in his sphere reach out to him for his expertise. Maybe when they are ready to buy, they think of me.
- 21:16 – Cate: You don’t just have to be an expert on home things. Food, drink, DIY, modge podge, puzzles. Post about it and show you are an expert. People will connect with you. Cate likes being a resource.
- 22:00 – Do all of that! Do that kind of marketing! Your sphere will sing your praises and send you referrals like crazy. Do not look at endless phone lists and phone calls. The traditional marketing does not work! Stop wasting your time by doing what every other agent out there is doing. Stop being white noise. Do that and you will have a great business!
- 22:40 – Cate: you will create raving fans by giving them what they need, not by selling to them.
- 22:50 – B’s weekly quote: “Seeds need nurturing, care and time to grow, but grow they will and will produce fruit for a long time.” Agents, plant those seeds now, nurture them and we guarantee you will see a harvest like never before.
- 23:50 – Closing out the episode: love your sphere. It is a long-term plan, but is a plan that will last and ensure you to have a great business.
- 24:30 – Take care and make your day legendary!
SHOW LINKS
- Lego Star Wars – https://www.lego.com/en-us/themes/star-wars
- Jackson 5, “ABC” – https://www.youtube.com/watch?v=ho7796-au8U
- Disney Star Wars Land – https://disneyparks.disney.go.com/star-wars-galaxys-edge/
- Build Your Own Lightsaber – https://disneyland.disney.go.com/shops/disneyland/savis-workshop-handbuilt-lightsabers/
- Outback – https://www.outback.com/
- Modge Podge - https://www.google.com/search?q=define+modge+podge&rlz=1C1CHBD_enUS831US831&oq=define+modge+p&aqs=chrome.0.0j69i57j0.3414j1j4&sourceid=chrome&ie=UTF-8
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 021 - It's Not About You RELOADED
Agents, stop thinking about yourself! Even if you don’t think you're doing it, you are! We help you figure out how to take a “client-first” perspective in all areas of your business so your clients love what you do for them, become raving fans and help your business explode.
SHOW NOTES
- 01:10 – You have a client…shocker! You are hired for your knowledge, wisdom, ability and expertise.
- 01:20 – “Home” vs. “House”
- 02:15 – Change your verbiage. Don’t use “transaction” or “property”. Use “process”
- 03:15 – Sterile, mechanical process
- 03:45 – Doctor/Patient analogy, Cate: “specimen”
- 04:20 – Shifting your mentality, client-first mentality. You project what you focus on. Client will also sense your inspiration or desperation.
- 05:35 – Agents are in the service industry, not the sales industry.
- 06:45 – Clients might have to give up something, “price, location or home details”
- 07:15 – 4 C’s: Clients, Co-Agents, Company, Commission…in THAT order!
- 08:20 – Co-Agents are NOT your competition. Share your knowledge. They will help you get ahead.
- 09:20 – Every agent is different. Maybe this client doesn’t mesh with you or you don’t know the property type.
- 10:25 – Sharing the wins. Cheering each other on.
- 11:25 – Make the real estate industry great and the bad people get weeded out.
- 11:50 – Company is ahead of you. Respect for your company.
- 13:10 – Everything you do or say has a consequence to not only you but also others in your company.
- 13:55 – Get out if you don’t like the company you work for.
- 14:45 – Commission is last. Do the other three C’s and your commission will get there.
- 15:20 – Pay yourself a salary to avoid the stress of commissions.
- 16:35 – Legal side of being an agent, called Agency. Brian: “Agency means something.”
- 17:30 – Doctor analogy
- 18:30 – Use referrals more often, and/or partner with another agent to help clients.
- 19:00 – Survey: Most Trusted Professions; Real estate agents’ rank at the bottom.
- 19:40 – Limited/Dual Agency soapbox
- 21:25 – Brian asks for agents to fight him on limited/dual agency
- 22:20 – Even if you handled it perfectly, what does your client think? They question the agent motivation and future business and referrals.
- 22:55 – “Me-Me” deals SUCK!
- 23:15 – What does it take to be a legendary agent? Step 1: get your client; Step 2: treat client like a king/queen; you become legendary.
- 24:35 – Warm referrals. Warm leads.
- 25:10 – Cate’s “side note, tangent”. Family and friends can be your worst client, but want the above and beyond. May be harder to please. Be professional so they view you as the professional. Very easy to get lazy and relaxed with them.
- 27:35 – Be careful about complaining about other clients around your family. Vent to accountability partners.
- 28:00 – Think about your client. Have a passion toward that! Create raving fans!
SHOW LINKS
- https://www.dictionary.com/browse/specimen
- https://www.urbandictionary.com/define.php?term=Soap%20Box
- https://www.youtube.com/watch?v=HxUuDPNbkJk
BETWEEN THE LINES LINKS
briancleebtl@gmail.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 020 - Want to Make More Money?
Want to make more money? (If not -and- you're independently wealthy -and- want to donate money to your favorite podcaster in the world, then please send me a message!)
For everyone else, a little extra income makes a big difference. There are many ways to make more money, but one frequently overlooked is maximizing tax deductions to keep more money that you already earned. Give yourself a raise by using the tax benefits you already have. "Pay what you owe, but not one penny more," as B likes to say!
SHOW NOTES
- 01:00 – Are you thinking through your finances, your budgets, your income to keep more of your commissions?
- 01:30 – Song of the week: The Who, “Did You Steal My Money”; Are you letting the IRS take your money by not taking advantage of the deductions you are entitled to use? Pay every dime you owe, but not a penny more.
- 05:25 – Is your plan to make more money based solely on selling more homes? There are other ways to make money without selling more homes. Do what smart agents do and set your business up for success. Are you doing things that increase your costs of doing business? STOP!
- 06:15 - $750 expense and have to earn a $1,000 gross income to net $750 to pay the expense, OR you can earn a $750 gross income to pay that $750 expense? Which sounds better?
- 07:20 – Being smart gives you flexibility. Earn $1,000 and give yourself a $250 raise OR work less to earn what you need. Be intentional.
- 09:45 – Disclaimer, I AM NEITHER AN ACCOUNTANT OR ATTORNEY! Get with your financial and legal pros to learn how this applies to you.
- 10:20 – Do you have a budget? Stop living "paycheck-to-paycheck".
- 11:15 – Set up your income as a salary. Don’t pay yourself more or less based on busy or slow months. Help your budget and keep your expenses on track.
- 12:20 – Budgets are flexible. Pay yourself a bonus if you’ve done well in a particular month.
- 13:00 – Set up your business structure. LLC & S-Corps are legal structures and need to be created by a professional. Don’t create an LLC without an operating agreement or articles of incorporation.
- 13:45 – Check with your insurance carriers to verify that your company is covered. Does your auto insurance fully cover you if you work out of your home? Does your homeowner’s policy cover your business and equipment (ex. computers, copiers, etc.) inside your home?
- 14:55 – Consider buying an umbrella insurance policy.
- 15:40 – Cate’s Side Note/Tangent: Cutting your own hair and B’s "man bun".
- 18:35 – Setting up your business structure. (LLC and S-Corp). Both have pros and cons.
- 19:10 – LLC is a legal shield that is not recognized by the IRS. You must tell the IRS how you want that LLC taxed: sole-proprietor, partnership or S-Corp.
- 19:50 – LLC needs a legal document to define and create the legal shield for you. It's called an operating agreement that an attorney can create. Or you can use online resources, such as Legalzoom.com.
- 21:00 – LLC can be taxed and have the benefits of an S-Corp. An S-Corp may have more legal benefits than an LLC. Both can have the same tax benefits.
- 21:55 – Watch for the breakout video related to this episode about saving 7.65%, or more, on taxes by setting up an S-Corp.
- 23:00 – Regarding tax deductions, get with your accountant on what you can do. Legal entities have more flexibility with deductions. Don’t get classified by the IRS as a "hobbyist".
- 24:00 – IMPORTANT NOTE FOR AGENTS: If you work for someone else (managing broker, company) and they cut you a commission check, that commission check must be paid to your business entity and EIN if you want the deductions. DO NOT collect a commission check in your name and social security number and then deposit the commission income into your business account. Make sure the 1099 shows your business and EIN.
- 24:45 – Qualified Business Income (QBI), ask your accountant how this might apply to you and your business.
- 25:00 – Is there anything you can do to reduce your taxes even more? Yes! Consider some type of retirement account such a ROTH, SIMPLE or Traditional IRA, SEP, 401k, etc.
- 25:50 – Health Savings Accounts (HSA) and 529 accounts (if applicable in your state).
- 26:35 – This can get complicated. DON’T let your fear keep you from saving money. You are losing money by setting up a business carelessly. If you can’t do it, hire someone. The cost to create the proper entities will MORE than pay for itself in the long run.
- 27:10 – Get with a CPA! Not H&R Block, Liberty Tax, or TurboTax. Quick tax file services have a purpose, but agents need a CPA. Well worth every penny!
- 27:45 – Cate: Stop living paycheck-to-paycheck. Create a tax plan. Prepare for your future. We’ve all been there. Take it step-by-step. Take one day to work through all of it.
- 28:10 – B’s weekly quote: “You must gain control of your money, or the lack of it will control you.” - Dave Ramsey
SHOW LINKS
- The Who, “Did you Steal My Money” video: https://www.youtube.com/watch?v=VuUUSMNAu30
- IRS website: https://www.irs.gov/
- Umbrella insurance policy defined: https://www.investopedia.com/articles/personal-finance/040115/how-umbrella-insurance-works.asp
- Great Clips: https://www.greatclips.com/
- Create an LLC Operating Agreement: https://www.legalzoom.com/business/business-formation/llc-overview.html
- Indiana College Choice Direct (529) Plan: https://www.collegechoicedirect.com/home.html
- Dave Ramsey: https://www.daveramsey.com/blog/how-to-take-control-of-your-money
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 019 - Locked In - Interview with Jenny Laughner, Agent
LOCKED IN – Want to wallow in the real estate pool of misery during the quarantine? If you do, go somewhere else, because we've invited Jenny Laughner—a South Side Indy real estate agent—to talk about what she's seeing in her transactions.
Jenny's effervescent personality brings a little levity to this sometimes discouraging set of circumstances. She talks about things many agents are dealing with right now--and--she's still able to make us laugh! Non-huggers...beware!
SHOW NOTES
- 02:35 – Welcome Jenny Laughner! Real estate professional and one of Cate’s ninja agent ladies.
- 03:30 – Tell us about yourself. 18th year in real estate. Seen everything over 18 years and this “takes the cake”. Balancing being a mom, e-learning and real estate is crazy. “If real estate doesn’t work out, teaching is NOT an option.”
- 04:55 – What do you do when you are not working? Super social and entertain on their house a lot. Hang out at home.
- 05:36 – Zoom meetings for family events now.
- 05:55 – What is one thing you have missed the most? “Hugging” Closings and client interaction.
- 07:15 – Christian: How long is too long for a hug? 4 seconds? When they start pushing away?
- 07:55 – So many people are missing that personal connection, being in front of someone instead of a screen.
- 08:20 – What are you seeing right now with buyers and sellers? South side agent.
- 09:20 – Things are coming in waves. Slow one day and then get multiple calls in one day.
- 10:03 – Also, having a lot of phone conversations. Typically, she does not have that many.
- 10:34 – Long conversations are happening because they are lonely? People typically do not have a ton of time but do now. They want to take the time to understand the entire process.
- 11:30 – People got into the hustle and bustle of daily routines, “go, go, go” uninhibited and quarantine has forced us to slow down. Maybe we needed that reset. All of this is a big positive and get back to basics.
- 12:10 – Buyers under $200k, they are not feeling immense pressure to get out immediately to a home that was just listed.
- 12:30 – Cate: Buyers, less intense feeling to move quickly? Yes! Sellers want more notice. Sanitize. More of a process.
- 13:06 – Cate: Sellers taking their home off the market? Had a few and even a few that “really surprised me.” Two sides of a coin: Best captive audience to get your home sold right now. Buyers are on home sites looking more at homes. Other side of the coin: possibly bringing the virus into seller’s home.
- 14:34 – Christian: Virtual showings? Yes, but no one has bought a house with only a virtual showing. They will start off with a virtual showing, like the home enough to see it live, and then schedule an appointment to physically view the home.
- 15:22 – When we are out of this quarantine, what we will adapt to? Definitely think it will change beyond the quarantine. Sanitize everything and every time. Seller’s will be more conscientious about cleaning. Think once quarantine eases, business will be extremely busy.
- 17:50 – Do you have any positive story out of this? Hard to think of a positive situation recently. Credit score issues, furloughed employees have been a challenge. Single mom looking for a while and being careful what she wants to invest in and was able to get her a home.
- 19:35 – Cate: the number of buyers under $200k have decreased so it has opened the door for some buyers. Essential employees can reap the opportunity right now. Many people that are buying under $200k are hourly or salaried and have lost jobs, income and/or hours.
- 20:16 – How to reach Jenny: (317) 339-6972
- 21:00 – We are in this as a community. Agents like Jenny show hope.
- 21:23 – WASH YOUR HANDS!
SHOW LINKS
- Jenny Laughner – https://www.remax.com/real-estate-agents/jenny-laughner-greenwood-in/100067116
- Jenny's Contact Number: (317) 339-6972
- What is a Ninja? - https://en.wikipedia.org/wiki/Ninja
- How long is too long for a hug? – https://www.sciencemag.org/news/2011/01/hugs-follow-3-second-rule
- How to create a virtual showing. - https://www.youtube.com/watch?v=NjLrhF5qo4M
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 018 - Locked In - Interview with Tonya Ott, Title Expert
LOCKED IN – Tired of being told what to do during the quarantine? Sick of news about the ever-changing real estate transaction landscape? We certainly are!
So we invited Tonya Ott--a title expert and trainer with Chicago Title--to talk about what's happening behind the scenes in the title world. Hunker down, because what she is seeing is CRAZY! Enter at your own risk!
SHOW NOTES
- 02:50 – Welcome to the awesome, the amazing, the stupendous Tonya Ott with Chicago Title Indiana. Celebrity in the real estate world. “If you don’t know Tonya, you are probably nobody.”
- 03:25 – About Tonya: started in 1992 with Chicago Title. The last few weeks have been the most “interesting”. Adjust, pivot, keeping balls in the air throughout something that we have not experienced before. “Sprinkle in COVID-19” and this has been crazy.
- 05:00 – What have you missed while in quarantine? Being a people person, I miss the “belly to belly” interaction. (PG rating, this is a family friendly show.) See people in person and interact with them. Building relationships and rapport is best done person-to-person. Things get lost in text and email. Zoom has been okay
- 06:24 – Tonya has put out some great YouTube training videos recently about recording concerns and e-notary changes. With all these changes, what are you seeing behind the scenes? Concerns over employees and exposure. Title cannot happen virtually. It has been difficult to handle the same number of closings with the constraints and mindfulness of safety for everyone. Scheduling and having staff is a challenge.
- 09:35 – Closing is the grand finale of everything everyone has worked toward. In the past closings have been an experience, but now they are a little bit sad as that same feel cannot happen. Not as much fun as we would like it to be. Memorable for different reasons.
- 10:22 – Patience is required and sometimes agents do not have that. Title and mortgage professionals seem to have a target on their back. What does that look like for you in balancing state and federal requirements and keeping everyone happy? Basically saying, “Agents, shut up!”. Pre-COVID the buck stops with the title. There has always been pressure to get it done. Expectation that things are supposed to move as they always have. People are grappling for some sense of normalcy.
- 12:35 – Legitimate fear that if the transaction does not close, someone could lose their job and the transaction cannot ever take place or buy the home. That type of concern is motivating the pressure.
- 13:05 – As Indiana executive orders were released, phones blew up with a number of people pushing to move up their closings. First quarter has been “phenomenal”. Managing pressure and expectations have been hard.
- 14:10 – We are in a repeat and referral business. Diffusing situations has been more common. We are on your side and working toward your objective.
- 14:35 – Christian question: Governmental workers and processes have slowed down. Can things be done electronically? Two different points: on title search, some counties are closed or skeleton staff. Some require a scheduled appointment. Indianapolis and surrounding counties have electronic records and they have access to information. Some information is not available online such as court cases, judgements, divorces and requires research in person.
- 16:10 – Back end, e-recordings are done by all counties. Title companies are handing those recordings, but the county offices must process those requests and they are needing some additional time. Title companies do not have any control.
- 16:42 – Cate: Have your closers talked about their experiences with consumers with closings in the parking lots? In large part, everyone is okay. There are a few issues, but people are people. Managing expectations is huge and should be set. Knowing what you are walking in to is helpful. Communication is key.
- 17:45 – Closing where people bring in their 4 teenage kids, mother-in-law, and their dog. Wow!
- 18:20 – Other end of the spectrum with people cracking their windows while wearing masks and gloves and tube socks. Call on cell phone and talk them through it.
- 19:04 – Windy and soggy days with curbside closings are not fun. We are committed to get it done.
- 19:15 – Will this change your practices going forward? Set up closings like a Sonic drive-thru restaurant with a menu board and closers wearing roller skates. Tonya can “rock some roller skates!”
- 20:12 – The quarantine has forced us to consider other alternatives that would not have before. What makes sense moving forward. We learn a lesson with every trial we go through.
- 21:20 – Tonya, you are amazing! We enjoy talking to you. Thank you to all title companies and closers! You have rolled with it and gone to work. Without you, we would not have closing.
- 22:10 – How can people reach you? Email: ott@ctt.com Cell phone: (317) 684-3939.
- 22:45 – Thanks to professionals like Tonya, we will get through this together.
- 23:22 – WASH YOUR HANDS!
SHOW LINKS
- Tonya Ott – https://www.chicagotitleindy.com/People/TOtt.htm
- Tonya Contact Info: Email: ott@ctt.com Cell phone: (317) 684-3939
- Chicago Title Indiana – https://www.chicagotitleindy.com/
- Welcome to The Twilight Zone – https://www.youtube.com/watch?v=NzlG28B-R8Y
- Zoom – https://zoom.us/
- Tonya’s Training Video, e-Notary – https://www.youtube.com/watch?v=ygUywrrt-Cg&feature=youtu.be
- Tonya’s Training Video, County Recordings – https://www.youtube.com/watch?v=TbJKW9y5gcI
- Sonic Drive Through - https://www.sonicdrivein.com/
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 017 - Locked In - Interview with Kelly Dather, Agent
LOCKED IN – Anyone want to talk about mortgage forbearance? NOOOO! We're pretty much done with conversations about what you’re supposed to do during the Coronavirus. We invited Kelly Dather--a real estate agent with Keller Williams from Fishers Indiana--to talk about what he is seeing on the front lines. Kelly talks about how the Coronavirus has affected his business and what he's planning when things settle down.
SHOW NOTES
- 02:40 – Kelly, normally agents don’t look forward to CE, but CE with Brian was literally the best CE ever.
- 03:55 – Kelly – got into the real estate business after corporate job took him around the US. Liked everything here and didn’t want to move anymore. Took VP job in Marketing and got relocated but decided to stay. Loved the economics of real estate.
- 06:05 – What is the one thing you have missed throughout the quarantine? “Made me realize all of the things I have missed.” Freedom, ability to jump in the car and go wherever we want when we want. Hindered ability to talk to people face-to-face.
- 07:35 – Meeting virtually is nice, but it's getting old.
- 08:30 – Working as an agent has presented challenges in this quarantine. What are you doing to work through this? Implementation and execution. Do you execute the plan?
- 09:12 – Colts analogy: everyone knows the play, but if everyone doesn’t execute, you likely won’t get the desired result.
- 09:20 – Team: let’s make the most of this opportunity. Make contact with everyone we can. Not only current clients, but past clients and even those that are not clients. Friends, family, older people that are shut in. Call just to say hi. Talked to people he hasn’t talked to in 15 years.
- 10:13 – As a team leader, taking care of new agents. Start fresh out of the gate and then get hit with the quarantine. It “takes the helium out of the balloon.” Keep them motivated. Call them periodically, tell them a joke, keep it personal.
- 11:10 – Great advice for all the time! Put together a plan and keep pushing through. Change it if needed but keep pushing through
- 11:30 – When times are good, we fail to do those things because we take it for granted. Forget about the basics and fundamentals. Slide to a lower level.
- 12:00 – Corporate perspective: when things are good, they hire 100’s of employees. When they get bad, they cut back to 50 and still get the work done. So if you can get the work done with 50, why have 100? Follow the fundamentals.
- 12:25 – At some point, we will get back to some form of normalcy. What do you think that will look like? “Don’t like the term ‘new normal’” That’s saying we will accept whatever is given us. We set the “new normal.”
- 13:30 – Kelly plans on going back to the old way. “I don’t like virtual.” People have hired us to do a job. Spending a quarter of a million dollars with you. That requires some personal contact.
- 14:30 – Reframing the “new normal” to not be a negative thing.
- 14:50 – Christian: “Have you coughed in public lately.”
- 15:35 – Have you had any light in spite of this situation? Everyone is appreciative.
- 16:00 – Neighborhood in Fishers called Sunblest built in the 70’s. Listed a ranch home in that community. Property was updated nicely. 22 showings and 6 offers in one day during the quarantine. One request, buyer’s agent represented a client with a respiratory issue. Kelly shut down showings for 30 minutes to allow that client to view the home. Great example of working together.
- 18:45 – That story can be used to show it is okay for agents to work together. Watching out for our clients and the public interest, not our own interest.
- 19:22 – Kelly: working together and professionalism. Just because we work for different companies and/or different clients does not make us adversaries or disrespectful. It means we are professionals and are trying to meet our client’s goals together. If you give 100%, I will too. Bring it together and at the end, 99.79% of the time, everyone is excited and happy.
- 21:00 – Thank you for coming on the show today! How can people reach you? Google: Kelly Dather; kelly@kellydather.com, (317) 496-9308; smoke signal
- 22:00 – Let’s work together!
- 22:29 – WASH YOUR HANDS!
SHOW LINKS
- Kelly Dather - https://www.kellydather.com/
- Kelly Dather - kelly@kellydather.com or call directly at (317) 496-9308
- Best CE Ever – https://www.indianarealestateinstitute.com/courses-offered.html
- Sunblest Fishers map - https://www.google.com/maps/place/Sunblest,+Fishers,+IN+46038/@39.9641642,-86.0417248,14z/data=!3m1!4b1!4m5!3m4!1s0x8814b39a7f97c42d:0xcf8a61335a7edabf!8m2!3d39.9620288!4d-86.0249117
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 016 - Locked In - Interview with Brian Brent, Loan Officer
LOCKED IN – Anyone want to talk about mortgage forbearance? NOOOO! We're pretty much done with conversations about what you’re supposed to do during the Coronavirus. We invited Brian Brent, a loan officer at Bailey & Wood, to talk about what he is seeing on the front lines and how the Coronavirus has affected lending.
SHOW NOTES
- 01:05 – Last few episodes have been very technical with information coming at you like water from a fire hydrant. People are getting tired of updates and being told what to do.
- 01:50 – Changing the conversation to talk about the “boots on the ground perspective” from real estate professionals working right now in the field.
- 03:00 – Introducing THE one and only Brian Brent, loan officer with Bailey and Wood.
- 03:52 – Brian gives his background. Been in the business for 18 years. “The only thing I know how to do.” Jody Bleier is his partner. Linda Leverage, mom, title rep and assists Brian now. Grew up in this business. Married to Billie. 4 “fur babies”.
- 05:45 – What is the one thing Brian misses the most during quarantine? Professionally: going to closing and being in front of people, celebrating victories in person. Personally: going to the gym, miss hugs, draft beer, taking wife out.
- 09:10 – Brian’s perspective and what is he seeing. Getting “sea legs” now after a few weeks into this. Over communicating with customers. Remaining agile with circumstances. Advising customers not to take a voluntary layoff or to do it. Doing what is right for the customer. Teamwork and unrelenting effort. With those elements, you can come out of this situation smelling like a rose.
- 12:25 – What have done to adapt to Coronavirus and quarantine? Quicker on response times. More communicating with listing agents. Over communicate with all parties. Positivity. Don’t spread negative. Not marketing to a database. Turning volume up on what we already do.
- 14:05 – Did you have digital systems in place? Yes. App is available on your cell phone and access it from any device. Uploading documents and going paperless. Being there for the customer without physically being there.
- 15:05 – Cate testimonial: Their app is great. Quick updates, clear to close faster.
- 15:28 – Chase changed their requirements for credit scoring and down payment on some loans. What was your take on that? Brian: didn’t change anything substantially. Unless the virus takes a dramatic turn for the worse, maybe everyone does that. Profitability for large banks on loans is very small. They make the most money on their deposits. Loans are too much downside risk for a small profit center.
- 17:23 – Christian – Jamie Dimon.
- 17:45 – Thank you Brian for joining us today and hope to have you on again.
- 18:00 – How to reach Brian Brent: (317) 695-5353, hoosiermortgageteam@bawfg.com
- 18:49 – Brian: Quick story about appraiser and a drive-by appraisal. Came up short on value. Go the extra mile to take care of your client. Get into the homes unless you absolutely can’t.
- 20:18 – Stay strong, we are a great community, we will get through this together.
- 20:35 – WASH YOUR HANDS!
SHOW LINKS
- Brian Brent - https://www.bawfg.com/bbrent/
- Bailey & Wood - https://www.bawfg.com/
- Bailey & Wood Mortgage Express App – https://bawfg.mortgageexpressapp.com/borrower/signup/thensley@bawfg.com
- Chase Bank changes their requirements – https://www.cnbc.com/2020/04/11/jpmorgan-chase-to-raise-mortgage-borrowing-standards-as-economic-outlook-darkens.html
- Who is Jamie Dimon? – https://en.wikipedia.org/wiki/Jamie_Dimon
- Neil Diamond, “Sweet Caroline” - https://www.youtube.com/watch?v=1vhFnTjia_I
- Neil Diamond, "Cherry Cherry" - https://youtu.be/egZPeAyIOd4
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 015 - Locked In - Providing Value To Your Clients While Quarantined
LOCKED IN – With agents stuck in their homes and not able to attend closings, view homes, and have limited contact with their clients, what should they do to continue marketing? In these unusual times, the traditional picture of agent success is not the best image to put out to customers who may be losing their jobs and going through tough times.
Instead, it's time to be a legendary agent and think about what our clients really need during this time: levity, hope, encouragement and help. We discuss ways to “market” in non-traditional ways during these non-traditional times.
SHOW NOTES
- 02:50 – Our clients need us…Not for housing. They need our calm attitude, showing of patience, professionalism and help finding resources.
- 03:28 – We have an opportunity to show the world the real estate community is here to help them. We are not all about trying to sell homes.
- 03:50 – Stop the politics during this time. Everyone has an opinion. Nobody cares about your opinion and they never did. They don’t care about your “expertise” on medically related things. Now especially.
- 04:30 – Clients care about food, toilet paper, cleaning supplies, child care, loss of jobs, economy, real estate markets. Provide info on those things.
- 05:42 – Cate: Provide an uplifting message of hope and help. Watch what you are “liking” and commenting on in social media. They rely on us for that hope.
- 06:05 – We are looked at as professionals like a doctor or attorney. People do rely upon us and trust us. Be that professional. Be a beacon of light. Stop the scare tactics.
- 06:50 – If you don’t have the FACTS, don’t put out half-truths or false information.
- 07:05 – Clicks do not equal value. Do emojis count?
- 07:20 – What are you going to do to provide value to your clients? Find solutions to the things they want and need.
- 08:25 – Have sympathy and empathy, reach out and find out if they are okay, but offer solutions to their woes as well.
- 08:30 – Provide value to your communities. Maybe there is something you can do to help the subdivisions where you live and work.
- 08:45 – Consider a “parade” through the communities to uplift the kids. Tour a neighborhood.
- 09:45 – Schools are providing meals for kids and families that may be down on their luck. Share that with your community.
- 10:15 – Be a resource for property and market information. Many homeowners are concerned about property values right now. Help them see what is actually going on.
- 11:35 – Cate: compare the quarantine to the holiday season. People are distracted with things other than real estate, but the market will pick right back up once the quarantine is lifted.
- 12:00 – Provide levity, comedy. Put out jokes, memes, songs, and inspirational quotes.
- 12:40 – Not the typical real estate marketing. Be a good partner in your community. Be a shoulder to lean on.
- 13:05 – Provide updates on information. As professionals, we usually find out things before the public. If you know of some information, get it out to the public.
- 14:05 – Provide value to your clients based upon what they need. Not what you need. Reach out to them. Call your clients and ask how they are doing.
- 14:45 – This WILL pay off in the long run. Be genuine. They will see that and will come to you when the time comes for them to buy or sell their home.
SHOW LINKS
- Seinfeld, “Can you spare a square?” – https://www.youtube.com/watch?v=tVA1i26SkKE
- Organize a neighborhood “parade” – https://www.wikihow.com/Organize-a-Parade
- Are we in a recession? – https://www.bloomberg.com/graphics/us-economic-recession-tracker/
- Steve Martin, playing banjo - https://www.youtube.com/watch?v=DiraO4fI-3k
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 014 - Locked In - SBA CARES Act and PPP
LOCKED IN - Special Edition bringing you updates as we get them. They'll change again...just wait. In the meantime, here is what we know about SBA loans and Paycheck Protection Program, (PPP), designed to help small businesses, agents, and professionals to get through these tough economic times. Stay tuned, since there will be more to come.
SHOW NOTES
- 03:00 – Doing more podcasts lately to keep you updated.
- 03:50 – SBA loans, CARES Act, PPP (Paycheck Protection Program)
- 04:18 – Cate: agents, these programs are not only for yourself. Maybe your clients can benefit from this information as well.
- 05:10 – This can help you, as the agent, look great to your clients.
- 05:22 – Fund is set up initially at $349 billion (Current documents in the Senate are trying to increase that amount). Once funds have run out, they are gone, unless more money is added (which is almost guaranteed to happen). Must make application by 06/30/2020.
- 06:20 – 500 or fewer employees. Had to have been in operation on or before 02/15/2020. Pay payroll taxes.
- 06:55 – Applicable for any individual that operates as a sole-proprietor/independent contractor/self-employed person.
- 07:20 – Ineligible people include those with felony in past 5 years and/or behind on other SBA loans.
- 07:53 – Purpose of this loan/grant is to pay employees. To keep them hired and at the same wage levels as before Coronavirus.
- 08:30 – Basic loan calculation (more details to this, ask your lender): take past 12 months of wages, divide by 12 to arrive at a monthly average and then multiply the monthly average by 2.5.
- 09:00 – This loan is for payroll. You must use 75% of the loan toward payroll in order to make the loan forgivable. You can use 25% of the loan toward other costs. Compensation, salary, and tips are included. Benefits are also included.
- 10:30 – Individual employees with over $100,000 per year income, all income over $100,000 is excluded from the calculation.
- 10:57 – Loan details: 1% interest rate; maturity date is 2 years (originally was going to be 10 years) from date of disbursement; first six months of payments can be delayed, but interest will still accrue.
- 13:10 – If the loan is used for forgivable expenses, the loan is forgiven. You get the money for free.
- 13:40 – Forgivable rules: 75% of the loan must be used for payroll; can’t cut wages or salary, hours or employees.
- 14:00 – 25% of the loan can be used for mortgage interest payments, lease payments and utility costs.
- 14:45 – Include this with the stimulus checks for most, the government is trying to keep the economy going and keep people employed.
- 15:00 – Only $349 billion available right now. Take the loan if you need it, but don’t take it away from others that desperately need it.
- 16:00 – Talk with your bank as they each have their own processes. All of this is handled through your local bank branch.
- 16:22 – This is not a federal loan, so the application is not made through the federal government. It is a federally insured loan that is loaned by a bank.
- 16:45 – No collateral will be required. No personal guarantee required. No application fee or service fees.
- 17:24 – Final thought from B: Thomas Paine quote, “These are the times that try men’s souls…”. We are facing something that is unprecedented. We can either let it define us, get us depressed, or we can stand up and keep charging on. Show the world we are awesome! Build yourself up!
- 19:00 – Stay legendary and WASH YOUR HANDS!
SHOW LINKS
- US Small Business Administration: sba.gov
- CARES Act: https://www.congress.gov/116/bills/hr748/BILLS-116hr748enr.pdf
- Payroll Protection Plan (PPP): https://home.treasury.gov/system/files/136/PPP--Fact-Sheet.pdf
- Austin Powers, Dr. Evil “$100 million”: https://www.youtube.com/watch?v=EJR1H5tf5wE
- Thomas Paine quote, “These are the times that try men’s souls.”: https://www.goodreads.com/quotes/175410-these-are-the-times-that-try-men-s-souls-the-summer
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 013 - Locked In - Mortgage, Rent, and Unemployment
LOCKED IN – With people being laid off, furloughed and unable to work, what should they to do about their mortgage and rent payments? Also, what are the state and federal governments doing to help with those who are unemployed? Today we'll discuss what the government currently doing to address the COVID-19 crisis.
SHOW NOTES
- 02:20 – Today’s episode details. Might be helpful for agents directly, agents can help their clients, family and friends.
- 03:10 – Governor of Indiana put a stay on court actions of foreclosure and evictions for 3 months. Does not mean you don’t owe the money. The actions are ONLY paused. They will likely will still happen in the future.
- 04:30 – What will happen when the 3 months expire? We will be watching.
- 04:45 – What happens if you can’t make your payments? Different lenders are doing different things.
- 05:00 – Reach out to the lender or their landlord to discuss your situation and how it can be resolved. The worst thing you can do is to just stop making payments.
- 05:40 – “Forgiving” of payments. Forbearance – lump sum payments? Ask lender how they are allowing the lack of payments.
- 07:27 – What is forbearance? Not the only option though. Call the lender and ask their options. Forbearance, extend your loan, or increase your payments by adding the missed payments into your existing payments.
- 09:30 – Loan modification based upon restructuring of the debt details (ex. rate, maturity date, etc.).
- 10:23 – Make all of these a last resort as lenders are not doing great things.
- 11:15 – Rental payments. Unfortunately, no state or federal oversight of rental issues. Talk to your landlord to see what can be done. Landlord has control of what happens. No standard of practice. Some landlords are working with tenants and some are being jerks.
- 12:40 – Do not harass tenants. If landlords are doing this, take note, keep emails, text messages to set up a better situation in the case of eviction.
- 13:30 – When communicating with landlord, will this affect my credit or rent history. Find a way to make things work.
- 14:00 – Unemployment, help you clients with more information. Federal Stimulus package includes additional federal payment of $600 per week above state funds. Funds run through 07/31/2020.
- 15:00 – State funds are already available, but federal funds have not yet. The law is still being worked through and negotiated with each state. The money is coming. Be patient!
- 15:55 – Brian is a loser and ignored his wife to read the CARES act in bed, not snuggling Cate. Doing this for our listeners!
- 16:33 - $600 additional payment may be extended?? Election year can change everything.
- 17:30 – “Golden nugget”, not the same as the Tiger King. 13 additional weeks of federal unemployment payments for most people.
- 17:45 – Sign off with a quick thought. With everything going on, there is plenty of doom and gloom. No rainbows, unicorns and puppies.
- 18:20 – Plant the seeds now for a future harvest. Agents, help clients, friends, family with information now and those will turn in “fruit” someday for you.
- 19:00 – Be positive! All of opportunity and we are getting help
- 19:20 – WASH YOUR HANDS!
SHOW LINKS
- Indiana Coronavirus updates: https://coronavirus.in.gov/
- FHA, VA & USDA loan relief options: https://www.housingwire.com/articles/fha-rolls-out-new-mortgage-relief-options-amid-coronavirus-outbreak/
- $600 Federal Unemployment money coming: https://www.cnn.com/2020/04/07/politics/unemployment-benefits-cares-act-covid-pandemic/index.html
- Tiger King “golden nuggets”: https://www.youtube.com/watch?v=k2tozw7Ffh0
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 012 - Locked In - Covid-19 Contract and Title Procedure Updates
LOCKED IN – PART 2 of today’s podcast is all about three new COVID-19 contract amendment/addendum from IAR (Indiana Association of REALTORS®). We also give a quick update on title issues related to government offices closing or running with a skeleton crew. Are we having fun yet?
SHOW NOTES
- 02:14 – “You’re right B!”
- 02:35 – Part 2 of today’s content
- 03:00 – IAR (Indiana Association of REALTORS®)
- 03:30 – Don’t be adden-dumb.
- 03:55 – Difference between an addendum and amendment.
- 04:50 – Purchase agreement addendum/amendment: pushing dates out due to some delay with COVID-19.
- 05:40 – If buyer and seller come to agreement on changing a date, have them fill out an amendment to provide clarity on the date.
- 06:35 – Talk with your buyers and sellers about the use of this form. It might not be applicable for everyone.
- 06:50 – Listing contract addendum/amendment: will sellers allow physical showings.
- 07:35 – If seller does NOT want showings, make sure you comply with MIBOR rules.
- 08:25 – Don’t take advantage of the situation and only allow showings for listing agent clients, not other agent’s clients. What you do for one, you must do for all! Could be a fair housing and/or a license law issue.
- 09:50 – Have patience and be a professional in this situation.
- 10:05 – Waiver of Physical Inspection form: mitigates liability in the case of inadvertent spread of the virus during a showing, appraiser or inspection.
- 11:15 – Helps set appropriate expectations for all parties involved.
- 11:45 – Even if you don’t want to use these forms, at the very least have these conversations with your clients about all of the issues.
- 12:20 – Another title issue has come about: County offices are either closed or working on skeleton crews and title personnel are not able to visit their offices.
- 12:30 – Concerns: title records may not be completely accurate.
- 13:20 – Title companies might not insure everything. Talk with your title company to see how they are handling.
- 13:25 – Gap insurance policy; some are not charging for it and some might charge.
- 13:55 – Most of the time this won’t be a problem, but occasionally there could be a problem.
- 14:20 – Recording of documents might be delayed.
- 14:35 – Filing for exemptions, and proof of ownership issues can result.
- 15:00 – Put a note in your calendar to check in with your client in November/December to verify exemptions have been filed.
- 15:17 – Side Note Tangent with Cate: once county offices re-open, there will be flood of filings, so prepare for clerical errors and missed items because they are trying to catch up. Think about refiling exemptions and GET RECEIPTS!
- 16:05 – Moral of the story, talk with your title company reps.
- 16:10 – This was part 2, make sure to listen part 1.
- 16:28 – Producer Christian: fast moving information. We are watching and will update you on everything.
- 17:12 – WASH YOUR HANDS!
SHOW LINKS
- IAR: https://indianarealtors.com/
- IAR COVID-19 Delay Addendum: https://www.indianarealtors.com/wp-content/uploads/2020/03/COVID-19-IAR-Addendum-Amendment-to-Purchase-Agreement-Form-61.pdf
- IAR COVID-19 Listing Addendum: https://www.indianarealtors.com/wp-content/uploads/2020/03/COVID-19-IAR-Addendum-Amendment-to-Listing-Contract-Form-62.pdf
- IAR Disclosure & Waiver Addendum: https://www.indianarealtors.com/wp-content/uploads/2020/03/COVID-19-IAR-Disclosure-and-Waiver-Prior-to-Physical-Showing-or-Inspection.pdf
- Set expectations: https://blog.hubspot.com/agency/managing-client-expectations
- Title company Gap Policy: https://www.atgf.com/underwriting/news/gap-dealing-recording-and-indexing-delays
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 011 - Locked In - Appraisal, Lending & SBA Updates
LOCKED IN – With COVID-19, (Coronavirus), updates are coming in daily. We want to keep you in the loop as quickly as we can with new information. Hopefully, we can help you understand more about what's changed and give you our take on the newest updates. Today’s episode covers changes in VA appraisal valuation, major lending changes coming down the pike, and--possibly--good news for real estate agents. Stay tuned for more updates!
SHOW NOTES
- 02:25 – Welcome! We're splitting information into two episodes, since there is a lot. Stay tuned for PART 2 to follow.
- 03:15 – Appraisal updates. 3/23, Fannie & Freddie allowed lenders to use drive-by and desktop type of valuations. Go back to episode 8 to review those updates.
- 04:08 – 3/27, VA appraisal updates are allowing appraisers to do drive-by appraisals.
- 05:20 – VA appraisal is ordered as an interior inspection and then appraiser can determine if there are risk factors to make the decision to make a drive-by inspection. This is different than Fannie and Freddie rules because the lender decides the type of report.
- 06:03 – If property is vacant, an interior inspection MUST be completed. Seller/owner of the property can deny entry, which will make the report a drive-by report. Appraiser must communicate that info with lender and VA.
- 06:50 – No updates on FHA yet.
- 07:00 – Huge lending changes that will affect borrowing in the coming weeks and months.
- 07:50 – Due to unemployment, cutting back of hours, layoffs, etc. the risk factors have increased, so fewer security backed mortgages purchasers will not buy high risk loans. As a result, lending criteria will tighten. For example, expectation of higher credit scores and lower Debt-To-Income (DTI) ratios.
- 08:45 – Example: last week a borrower qualified with a 620 credit score, today they likely will not require unless they have a 630, 640, or higher. Those score requirements are expected to increase even higher.
- 09:25 – A large number of people may not qualify for a loan in the next few months.
- 10:05 – Producer Christian: irony with the Fed trying to loosen monetary policy, but private sector working against this.
- 11:03 – Investors and lenders are very likely gun shy after the Great Recession of 2007 to 2009. Hopefully they have learned their lesson from that and are doing these things to stop a bigger issue.
- 11:18 – FHA and VA loans may become obsolescent for the short-term due to increasing credit standards. They are NOT done forever, just slowing down and not used.
- 12:20 – FHA and VA won’t pay to sell something. That is what is happening and that is why Ginnie Mae backed loans (FHA & VA) will likely go away for now.
- 13:10 – Important for agents, if you have a buyer that will borrow money to purchase, COMMUNICATE with the lender on lending requirements now and what they will do if those lending requirements change during the approval process.
- 14:00 – Check with loan officers to make sure approval letters are still good.
- 14:25 – Agents, if you are working with a buyer that does not qualify with current standards, provide some value to them to explain what is going on and get them connected with someone that can help them increase their scores in the next month or two.
- 14:45 – Verification of Employment (VOE): many employers are working skeleton crews so VOEs may not happen or be delayed, which can delay a closing. Suggestion: be proactive with your client. Have them reach out to their HR departments to manage expectations. Ask HR their timelines so lender can get the information they need.
- 15:45 – Is a furloughed employee considered “employed”? Lenders are making this decision. Most lenders are completing a verbal VOE and asking a simple question, “Is your employee still employed?” Depending on how the lender responds may alter the ability for the borrower to get a loan.
- 16:42 – It is very likely that lenders will ask more poignant questions with more specifics needed before final loan approval. Due diligence will increase on the lenders part.
- 17:05 – STAY TUNED! SBA loans and other benefits for agents to help them during COVID-19. CARES Act ($2 Trillion stimulus package).
- 17:35 – SBA will allow you borrow up to 2.5 times your average monthly wages. If wages stay the same, the SBA loan will be completely forgiven (not paid back).
- 18:40 – Most agents are paid as 1099 contractor by their managing broker, but you can still qualify if you pay yourself as a W-2 employee.
- 19:15 – So much more info to sift through and we will follow up very soon as we get it!
- 20:30 – WASH YOUR HANDS!
SHOW LINKS
- of VA Circular on Valuation Practices: https://www.benefits.va.gov/HOMELOANS/documents/circulars/26_20_11.pdf
- What is a good credit score? https://www.experian.com/blogs/ask-experian/credit-education/score-basics/what-is-a-good-credit-score/
- Who is Ginnie Mae? https://en.wikipedia.org/wiki/Government_National_Mortgage_Association
- The Great Recession: https://www.history.com/topics/21st-century/recession
- SBA: https://www.sba.gov/
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 010 - Locked In - Closing While Socially Distant
LOCKED IN - With COVID-19, (Coronavirus), impacting everything we do, how can we as agents help our clients and ensure that closings go off without a hitch--all the while staying at least 6’ apart? In this episode, B, Cate & Producer Christian talk about what we're doing. We also provide suggestions to help agents take care of their clients, while still remaining at safe and healthy distances.
SHOW NOTES
- 02:27 – Part 3 of 4 talking about closings during COVID-19
- 02:55 – Communication with title companies to discuss how they are handling closings.
- 03:14 – Cate: her experience. Individual title companies are handling closing a little differently.
- 04:35 – Get the paperwork before the closing so the client can read and not take up more time at the title company. Basically, sign and go.
- 05:20 – Cate: make sure lender documents come from the lender and title documents come from the title company. Also, remind clients that most documents are “boilerplate” and standardized, so they are getting the majority of information by reading them up front.
- 06:00 – Request those documents at least a week ahead since everyone is working on a skeleton staff.
- 06:05 – Be cautious about identify theft. Ask title company if they have a way to transmit documents securely. Maybe the agent can physically pick them up and deliver them to the client while keeping socially distant and respectful of everyone’s wishes.
- 06:50 – Should agents attend closings? Watch your license law. Indiana requires attendance at closings with some exceptions.
- 08:20 – Cloud based closings. FaceTime or Skype or phone call attendance. Regardless, be there for your client.
- 08:50 – “Be there” for your client. Pay attention, not cooking dinner. Treat it as an appointment and be focused.
- 10:30 – Try to eliminate the number of people in the closing room.
- 10:47 – Cloud based closing and digital signing: software systems are not allowing many of them. They are difficult and have issues. In addition, there are still some documents (ex. deeds) require a “wet signature.”
- 11:30 – Feel clients out to see what they want. First time buyer, attend. Client with experience, don’t physically attend.
- 11:54 – Be proactive. Transfer of items such as keys, documents, etc. Recommend having home scrubbed down.
- 13:20 – Closing gift idea: basket of cleaning supplies.
- 13:37 – Producer Christian: Head of State Department of Health takes 30 minutes for the virus to settle.
- 14:27 – Consider adding language to your contracts (Update: IAR has new addendum/amendment regarding COVID-19)
- 15:35 – Discuss with your managing broker and your client about how to handle
SHOW LINKS
- Margot Robbie Fan Page: http://margot-robbie.us/
- Identity Theft Page of Indiana Attorney General: https://www.in.gov/attorneygeneral/2349.htm
- Skype: https://www.skype.com/en/
- FaceTime: https://apps.apple.com/us/app/facetime/id1110145091
- State Department of Health: https://coronavirus.in.gov/
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 009 - Locked In - Helping Buyers & Sellers During Covid-19
LOCKED IN – Since we're all quarantined and socially distant, we're putting out several short episodes to guide agents. In this episode, we cover how to best serve buyers and sellers. Taking into account the concerns of COVID-19, (Coronavirus), we talk about showings, closings, documents, etc. and provide suggestions on how to best help our clients.
SHOW NOTES
- 02:17 – Helping buyers and sellers. Are we satisfying our clients needs? Liability concerns, health concerns… are all so important. Stay in place.
- 03:10 – Real estate agents in Indiana are recognized as essential services. Brian shows Cate he is definitely essential.
- 03:38 – Talk with your seller on how they want to handle their listings. Showings with high risk sellers. Seller makes the decision.
- 04:45 – Seller agrees to showings, agents get with buyer agents to verify buyers are not lookers. Verify they are pre-approved and that they are serious and not just bored.
- 05:30 – Virtual tours are an option. Smartphone technology helps. Make a video so buyer can see home and maybe that takes them out of a viewing. Example: kitchen isn’t what they wanted so don’t view the home. Reduce the number of people coming into the home as much as possible.
- 06:45 – Get home ready for showings. Open doors, switch on lights, leave a note to not touch the home. Leave booties, masks and gloves at the front door.
- 07:32 – Producer Christian tech tip – 3-axis gimble for your cell phone. Cheap and easy way to make a smooth video to provide a great image of the home. “Buttery smooth video.” - Christian
- 09:12 – Provide a gift basket with Clorox wipes, masks, booties, sanitizer, etc.
- 09:55 – Working with buyers – communicate with them. Is now the right time to buyer? Consider health, safety issues. Can you hold off? Might be good since there might be less competition
- 10:55 – Bad for buyers – mortgage rates are all over. Make sure they are locked in with their lender.
- 12:00 – Buyer’s agent might provide a virtual tour, FaceTime for buyer. Buyer can sit out in the car and watch the video. If they don’t like home, don’t go in home. If they do like home, then view it, safely.
- 13:23 – Have conversation with buyer about what are their “must haves” and go through the homes online before seeing them. Video conferencing platforms are widely available.
- 13:54 – Suggest the buyer still drive the area and neighborhood. Gets them out, but only in the car. They can see if they like the area and it feels good to them.
- 14:35 – Buyer agent, get home showing ready if seller didn’t. Turn on lights, open doors, have booties, masks, gloves, etc.
- 14:46 – Found a house, but still need inspection, appraisal, documents delivered. Maybe agents take on a larger role in delivery of documents. Digital signature platforms.
- 16:00 – Work with your clients. Make sure everyone is safe…clients and yourself.
- 16:32 – Cate: your hands have touched steering wheel and shifter “thingy”. Hand sanitize before enter your car to prevent further spread of anything.
- 17:00 – If you don’t feel comfortable with a situation. If you are in a higher risk category, refer clients to other agents.
- 17:49 – Now is not the time to freak out. Market is currently not falling apart. Short-term pain and we will be stronger in the end.
- 18:50 – WASH YOUR HANDS!
SHOW LINKS
- Tips on Creating a Video Tour: https://www.youtube.com/watch?v=hmaZ3Uk9HvU
- 3-Axis Gimbal: https://www.amazon.com/Stabilizer-Smartphone-Youtuber-Inception-Time-Lapse/dp/B07R9XZSGL/ref=sr_1_3?crid=G87O1ODLK44W&keywords=cell+phone+3axis+gimbal&qid=1585579772&sprefix=3+axis+cell%2Caps%2C177&sr=8-3
- Docusign: https://www.docusign.com/
- Dotloop: https://www.dotloop.com/
- Properly wash hands: https://www.youtube.com/watch?v=yfGXzwzwImY
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 008 - Locked In - Appraisal Issues During COVID-19
Real Estate "Locked In" Between The Lines! Since we're all quarantined and socially distant, we're releasing several short episodes to guide agents during this unusual time. On our first episode, we cover appraisal-related issues happening right now. We discuss immediate concerns with inspections, value, fees and how lenders and the government are allowing alternative methods to value property.
SHOW NOTES
- 01:30 – B is RUDE! Introduce Cate & Christian
- 02:20 – A large portion of appraisers are not wanting to inspect the interior of homes right now. Slow turn times on reports and maybe higher fees. More risk for appraisers.
- 03:15 – Agents, talk to your lenders about how they are dealing with this issue.
- 03:30 – Fannie & Freddie announcement on 03/23/2020. They are allowing some lending products to use a drive-by or desktop type appraisals. FHA & high-risk products are still requiring an interior appraisal. (UPDATE: After the recording of this episode, VA revised their rules to allow drive-by reports. See the show links for that info.)
- 04:30 – What is a desktop appraisal scenario? Likely a person that is not an appraiser to view the exterior and comps and provide some data to an appraiser that is sitting in front of a computer screen.
- 05:00 – Concern: will the non-appraiser catch things from the outside that a trained appraiser would likely catch.
- 05:20 – Drive-by appraisal scenario: appraiser does the exterior viewing of the property
- 05:30 – Good: appraiser won’t see the “bad” parts of the interior of the property.
- 06:25 – Bad: appraiser won’t see the “good” parts of the interior of the property. Value issues? Send list of upgrades and updates, pictures of the elements should be sent to the appraiser.
- 07:00 – Appraisers are considered to be essential services as of 03/26/2020 in the state of Indiana.
- 07:40 – Watch appraisal fees if desktop or drive-by appraisal is completed.
- 08:15 – Now you might actually get to talk to the appraiser. Good or bad? Help appraisers during this time with information.
- 09:00 – Christian: Does this apply to home inspectors? Every inspection company is doing something different. Ask the inspector on how they are handling it.
- 10:35 – Tips on preparing your home for appraiser (and inspector): Leave a bottle of Captain Morgan.
- 11:05 – Get home showing ready. Turn on lights, open doors, crawl space and attic openings. Leave a ladder. Make it so we don’t have to touch as much as possible.
- 11:50 – Good for the homeowner too. Appraiser may transmit something the more they touch.
- 12:45 – Communicate with appraisers to find out what they need.
- 12:57 – Have PATIENCE with appraisers! It might take a bit longer, have more questions. Appraisers are not trying to be mean. They have genuine concerns too.
- 13:28 – Set appropriate expectations for clients. What type of appraisal. Communicate!
- 13:55 – We are in this TOGETHER!
SHOW LINKS
- Fannie Mae directive on appraisal: https://singlefamily.fanniemae.com/media/22321/display
- VA directive: https://www.benefits.va.gov/HOMELOANS/documents/circulars/26_20_11.pdf
- Got a little "Captain" in you?:https://www.captainmorgan.com/en-row/
- Indiana Stay-At-Home Order: https://www.in.gov/gov/3232.htm
- We’re in this together: https://www.youtube.com/watch?v=DykVJl6wr_4
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 007 - Systems Can Make or Break You
Everything in your business is going great and then BAM! A new client calls you out of the blue when you're on vacation. Or, a transaction issue comes up while you’re showing a home. “What do I do?” is not a good reply to either situation. Systems keep you organized and give you a plan for how to work through your daily processes. Systems should include both business and personal activities. On this episode, we provide tips on what to include in your systems and how to make your business run efficiently and legendarily!
SHOW NOTES
- 00:50 – Welcome to the episode. Systems can make or break you.
- 01:15 – Song of the week: System of a Down, “Chop Suey”, meaning “miscellaneous leftovers.”
- 05:00 – Everyone will have a different system. There is not a be all, end all plan that everyone will be able to follow. Work with your team, your broker, yourself to break down your operations into a checklist.
- 06:15 – You don’t need to come up with a highly customized plan. It is okay to R.O.A.D. (Tom Ferry: "Rip Off And Duplicate"). Find what others are doing and then incorporate it into your process. Sit down with another agent that you respect to help put this together.
- 07:20 – 1st System, Client Acquisition: drip campaigns, marketing, client touches, break down clients into A/B/C/D tiers or segments. Spend your marketing dollars in the right place.
- 08:45 – 2nd System, Client Handling: working with a buyer or seller, assess what is needed. Signs, lockboxes, contracts, marketing materials, other documents. Break down systems for buyers and sellers. Get a checklist to the client so they know what is going on and what comes next. Remember to include the client in the process, too.
- 10:45 – Cate uses email templates ready to send out to client and reps for title, mortgage, inspection, etc.
- 11:10 – 3rd System, Transaction Checklist: includes a list of things that need to happen through a purchase/sale. Make sure it considers both sides of the transaction. You may only represent one side of the deal, but if the other side doesn’t do what they are supposed to, your client will suffer. Should include inspection, title, appraisal, mortgage, closing, etc.
- 12:20 – Talk to each segment of the profession to find out what they need. Example: the mortgage rep can set their expectations, such as bank statements, paystubs, W-2s, etc.
- 13:00 – 4th System, Business Backend: since the closing has occurred, we turn in paperwork, accounting (commission), and follow up with client after closing, then input them into your CRM.
- 14:00 – Don’t forget your business. You need receipts, notes for each transaction so you can maximize deductions and tracking expenses.
- 15:00 – Cate’s Side Note Tangent – 2,000,000 people are diagnosed with OCD in the US.
- 18:05 – Set up your tasks into tiers. Dustin Harris’ (The Appraiser Coach) tier system. Tier 1 through 5.
- 19:00 – Tier 1 level: Entry level (secretarial) position, likely not licensed. Gatekeeper to take phone calls and emails and directs them to the necessary person. Provides a benefit to the licensed person by taking over “simple” or innocuous tasks.
- 19:45 – Tier 2 level: Highly trained, but still likely unlicensed. Probably a transaction coordinator. Highly knowledgeable about the processes, but not licensed to handle licensed activities. Can order title, follow up with lender, ensure paperwork is in order, etc. Watches and monitors systems.
- 20:45 – Tier 3 level: Usually a licensed person. They will have a lot of interaction with the client. Showing homes, talking in depth with clients about specialized issues.
- 21:45 – Tier 4 level: Management, team leader. Office manager person. This tier is usually only needed with high production agents with several transactions working at once.
- 22:10 – Tier 5 level: Owner, lead agent, head of the team.
- 22:20 – Each of these tiers could be one, two or more individuals. Each tier can be different people. But, if you're a newer agent, you might be all 5 tiers simultaneously and need to understand the responsibilities for each tier that must be managed. As you grow, it will be easier to hire and manage those others by including them in tiered tasks.
- 23:00 – Cate – What hat am I wearing today? OINII (On It Not In It).
- 24:00 – Recognize your system will be different than other agents. Hire based upon your need, not what everyone else is doing.
- 24:40 – Training systems, videos. Videos for other agents, clients, etc. Videos help convey your message more clearly. Also, the videos can be sent to any client to let them know more about the process.
- 25:45 – B’s Quote of the Week
- 26:35 – Closing
SHOW LINKS
- System of a Down, Chop Suey: https://www.youtube.com/watch?v=CSvFpBOe8eY
- Tom Ferry, ROAD (Rip Off And Duplicate): https://www.tomferry.com/tag/ripoff-and-duplicate/
- Real Estate CRM: https://theclose.com/best-real-estate-crm/
- Dustin Harris – The Appraiser’s Coach, Tier system: https://theappraisercoach.com/the-tiered-appraisal-office/
- OCD: https://iocdf.org/about-ocd/
- Cate templates: sidenotetangent.com
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 006 - Use Your Words
“Give me the title work.” “I need the listing sheet emailed to me.” Are we really that rude? Our words matter! How we present ourselves to our clients and to other industry professionals can the set the tone for this transaction and all future business. In this episode we talk about ways to improve our communication and be the professionals our clients and industry expect. LISTEN TO IT NOW! (ha ha)
SHOW NOTES
- 00:35 – “Cate! Go get me a sandwich!”
- 01:25 – Maybe it’s intentional or unintentional, but the way we speak comes off as very rude. Maybe you're busy, kids are yelling in the background, or you're writing something quick.
- 02:55 – Shouting seldom get’s what you want in the real estate industry. Kind words will usually get you more of what you want and “need”.
- 03:30 – Music lovers unite…new segment to make the podcast more personal. Every episode will include a song that ties into the episode.
- 04:25 – Introducing Producer Christian (italicized for the disdain in enunciating his name).
- 05:05 – “What was your first concert?” Cate: Bon Jovi; Producer Christian: Doobie Brother w/ special guest Little River Band; Brian: Neil Diamond, B’s first concert and took his mom on a date, too.
- 07:55 – This week’s podcast episode song is by Metallica, “Fuel”.
- 09:35 – B & Cate’s shirt
- 11:10 – Getting into the content…FINALLY!
- 11:20 – Do you have any manners? "Please" and "thank you" are still okay to say. Gives you professionalism and will get you things.
- 12:10 – Smile when you communicate. Face-to-face, text, email, phone...doesn’t matter...SMILE.
- 14:25 – Yelling and tantrums don’t work. Might “grease the squeaky wheel” but won’t get what you want. Maybe you’re mad about something that you don’t understand or just part of the situation that can’t be changed, controlled or helped.
- 15:25 – Cate: keep a calm head. You can’t change other agent’s attitude. Guide your client with a cool demeanor and they will likely follow your lead.
- 16:30 – Respect is earned, not given. Your words and actions establish who you are. “You get more flies with honey than with vinegar.” Being mean seldom gets you what you want.
- 17:00 – Multiple offer situations can push the agent with a bad demeanor out of contention.
- 18:30 – Create raving fans by putting their offers in the spotlight with positive attitudes, complimentary comments, etc.
- 19:30 – Mid-episode break; Cate’s “Sidenote/Tangent”: Famous house in Top Gun...with a sidenote, sidenote tangent.
- 23:10 – Problems with technology and communication: texting, email, etc. Someone infers a negative comment even though you didn’t intend it to be negative. Maybe a phone call is better.
- 24:20 – Cate doesn’t like the word, “Sure” in a text.
- 25:00 – Autocorrect fails.
- 26:00 – Communication apps that can help: Voxer, SlyDial and Bomb Bomb. Watch for bonus content about those apps.
- 26:40 – Social media concerns
- 26:50 – Sometimes you do need be angry about a situation. Act appropriately.
- 27:30 – Use an "accountability partner" to vent. Refrain from venting to your client or the person you are mad about.
- 28:00 – Weekly Quote from B: “Your words have power. You can use them to either benefit yourself, or use them to benefit others.” Benefit others rather than yourself.
- 28:45 – Closing. Use your words. Remember your kids are watching.
SHOW LINKS
- 80’s Hair Band: http://hairbands.xyz/bands/
- Top Gun: https://youtu.be/AfDZc99N5Tg
- Steve Amell, Actor on “Arrow”, DC universe, "Sinceriously"
- Hangry: https://youtu.be/bMLRKpoz8f4
- Movie, “UP”, squirrel scene: https://youtu.be/xrAIGLkSMls
- Top Gun house that is a national monument; New Point Loma Light House: https://goo.gl/maps/iKkycrYKgFaEi9s38
- Voxer: https://www.voxer.com/
- Slydial: https://www.slydial.com/
- BombBomb: https://bombbomb.com/c/
BETWEEN THE LINES LINKS
brian@brianclee.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 005 - Live and Die by the Contract
Clients hire us for many reasons, not the least of which is help with various contracts. Those contracts could be the purchase agreement, listing contracts, leases--or many others. While agents are NOT attorneys and should NOT give legal advice, your clients do have some expectation of guidance throughout the contract process. We give helpful suggestions on how to guide your clients to make better informed decisions.
SHOW NOTES
- 00:55 – Talking about contracts. Cate LOVES contracts.
- 01:30 – Contracts are important, and we are about helping you become a legendary agent.
- 02:30 – Clients hire us for many things. Not your pretty face. Access to MLS. They MOST want our expertise on a very complicated transaction.
- 03:35 – We are NOT attorneys but maybe can shed some light and save clients some money.
- 03:50 – Clients think they know about the law. “Uncle Fred told me…”; “HGTV” showed me how to do…
- 04:30 – Contracts are part of the reason clients hire us. Agents should tread carefully, unless they are an attorney.
- 05:00 – Definition of a contract: 1) Legal capacity (legal age and sound mind); Example: Elderly client with diminished mind. Example: Drunk client shows up to closing.
- 07:05 – 2) Mutual assent – both parties agree to the terms. Agreement of promises. Meeting of the minds.
- 08:05 – 3) Legal purpose – cannot enter an illegal contract. Trickery, forgery, non-disclosure, etc.
- 09:05 – 4) Consideration – the reason we are entering into this contract. Example: money, ownership.
- 09:40 – Some contracts are required to be in writing to be enforceable. Example: A lease for less than one year are not required to be in writing to be enforceable in court. This is called Statute of Frauds.
- 10:55 – Can you write a contract on a napkin?
- 11:25 – Verbal agreement, “handshake” agreement issues. Parol evidence rule. GET IT IN WRITING.
- 12:30 – “Ring” doorbell systems and other potential “personal property” items are getting more contentious. Is it a “fixture?” Write in the contract whether the item stays or does NOT stay.
- 13:45 – B: “You are not a legitimate agent until you've had to buy an appliance.” Agent “thinks” everyone was honest and being reasonable, but you get burned.
- 14:25 – Cate: What happens when agent goes on vacation? The contract is what everyone will lean on. Get notes and make sure everything is covered.
- 14:50 – How well do you know your contracts? Challenge: READ all your contracts, front to back. KNOW them! Get with someone that can walk you through them. Your clients are going to ask you about them. Do NOT gloss over them with your clients. Don’t do a disservice to your clients. Do not interpret since you are not an attorney.
- 16:45 – Read your contract in sections. Keeps it fresh in your mind. Jump around so it doesn’t get boring.
- 17:15 – Get with your accountability partner or another agent in your office to practice presenting an offer to your client. Practice, Practice, Practice. Know if forward and backward. Understand what it means.
- 18:15 – Other contract pieces: Addendum and amendment. Addendum means add to an existing contract. It does NOT mean change because you aren’t changing anything already agreed to. Amendment means amend (change, alter) an existing contract. This means you are changing a previously agreed to element of an existing contract.
- 20:10 – How a contract works. Offer and counteroffer process in creating a contract.
- 20:50 – A counter is a rejection of the previous offer and the offeror is under no longer bound by that previous offer.
- 22:50 – Rescinding a counteroffer. The counter is a rejection. Buyer can accept, but not required.
- 23:25 – The best way to handle many contract issues is to re-write the contract. “Don’t be lazy!” Digital contracts make it so much easier. “GET OVER YOURSELF!”
- 26:00 – If you make any change to a contract, your client needs to re-sign the contract. Don’t make a change AFTER they have signed the contract.
- 26:40 – If you are in a situation that is not clear, get with your broker and/or an attorney.
- 27:00 – I don’t like possibly, maybe, sort of, kinda okay is NOT okay.
- 27:15 – Valid, void and voidable contracts.
- 27:30 – Void = we don’t have a legal contract. In fact, a void contract is not a contract at all because it cannot legally be completed. Fraud, deception, forgery.
- 28:00 – Cate = “typical agent”. Voidable = one party has the right to cancel the contract. Example: not of legal age or lack of mental capacity.
- 29:45 – Valid contract = typical contract, has all the legal elements of a contract.
- 29:50 – Breach of contract. Suit for specific performance = court order to force a party to perform their contracted promised. Liquidated damages. Mutual release.
- 31:15 – Cate interjects her philosophical suggestion: “Let your client sleep on it.” Let them vent to you.
- 32:35 – You’re NOT an attorney. Know your boundaries. Ask your broker for help.
- 33:15 – Contract example: Closing costs. Watch your words when you write the contract.
- 34:50 – Your words matter!
SHOW LINKS
- Statute of Frauds: https://en.wikipedia.org/wiki/Statute_of_frauds
- MY LEGS - Marriage, contract for Years, Land, Executorship, Guarantor, Sale (over a certain dollar amount) - https://www.thelaw.com/law/the-statute-of-frauds-and-contract-law.247/
- Electronic Document Signatures: docusign.com
- Electronic Real Estate Transactions: dotloop.com
- Parol Evidence: https://www.hg.org/legal-articles/what-is-parol-evidence-31812
- GnR does "Live and Let Die": https://www.youtube.com/watch?v=RywqQ_AKB9M
BETWEEN THE LINES LINKS
briancleebtl@gmail.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 004 - Are Agents Used Car Salespeople?
A dinner with a stranger helped Brian see how real estate agents sometimes fit the “used car salesperson” mold. In this episode we talk about how NOT to be a salesperson. Instead, be the smartest agent in the room when your client needs you. Your clients want and deserve both.
SHOW NOTES
- 01:00 – How do agents rank? National survey shows public perception is that agents are one of the least trusted professions.
- 02:10 – B had dinner with Steve, a car salesman. “What do I think of Carvana?”
- 03:10 – Two things came out of the conversation: 1) no one likes to be "sold", and 2) so many salespeople don’t know what they are selling.
- 05:05 – Cate: “Everyone wants to buy, but no one wants to be sold.”
- 05:35 – B talks about a car buying experience. B, “You can feel the BS!”. Don’t BS me.
- 07:00 – Agents, your commission does not supersede your client’s needs. Do what is best for your client.
- 07:25 – Units, volume and commissions will pay off in the long run.
- 08:45 – Sometimes the best home for your client might be one that doesn’t pay you a commission. FSBOs are a good example.
- 09:35 – The best home for your situation is not a home at all. Look out for your clients need. Clients don’t have to buy a home for them to be a referral source. Moving soon, financial issues, barely skim by on credit score. I’m not a gatekeeper, but be your client’s conscience.
- 12:00 – Maybe there is a good reason not to buy a home.
- 12:25 – Expand your knowledge. Know what you are doing.
- 13:10 – It’s okay to say, “I don’t know.” Prep for questions you encounter more regularly. Shadow agents to expand your brain. Go to closing, inspections, etc. to get more experience.
- 14:45 – CE (continuing education) is not just a state requirement. Go into it with a better attitude, listen and learn.
- 15:45 – Take more than the minimum. Search about classes on topics that you want to learn about.
- 16:20 – Take classes that are not real estate related. Life lessons will help you to work with clients. Life coach.
- 18:05 – Sometimes there are boring topics and instructors. Search for engaging, entertaining, educational instructors…like Brian. That will help you learn more.
- 19:35 – Your clients hire you for your expertise. Education will help give you that expertise.
- 20:20 – You can become an expert in areas. Dive deep into a geographic area and know that area like the back of your hand. Get yourself involved in the community.
- 21:10 – Agents should be educators for their clients. Be proactive, not reactive. Home inspection and a new home buyer experience. What a home inspector does and does not do. Every home has defects. Anticipate the questions.
- 22:50 – Set appropriate expectations. Eases concerns. Clients will be less likely to “fly off the handle” or get worried unnecessarily.
- 23:20 – DISC personality profile. Some clients want bullets points. Some want details. Understand your client’s needs.
- 24:00 – HGTV is not a good prep for your clients.
- 24:20 – Don’t overstep. Agents are a guide. Our CLIENTS make the decisions and choices for the transaction. Don’t create a liability issue. Talk about options. Talk about pros and cons of the options. Interject opinion, but don’t push or decide.
- 25:45 – B admits he doesn’t know everything. Cate is not shocked. No one know everything. It’s okay to say, “I don’t know.” We can get with an expert. Don’t be an attorney or CPA.
- 26:50 – It’s okay to refer your clients to another agent!!! Clients come first, not your commission.
- 27:35 – Remember fans don’t like to be sold. They like a well-rounded agent that knows the process.
SHOW LINKS
- https://news.gallup.com/poll/1654/honesty-ethics-professions.aspx
- https://www.carvana.com/
- https://www.youtube.com/watch?v=hOhImlaplP8
- DISC personality test: https://www.discprofile.com/what-is-disc/overview/
BETWEEN THE LINES LINKS
briancleebtl@gmail.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 003 - It's Not About You
Agents, stop thinking about yourself! Even if you don’t think you're doing it, you are! We help you figure out how to take a “client-first” perspective in all areas of your business so your clients love what you do for them, become raving fans and help your business explode.
SHOW NOTES
- 01:10 – You have a client…shocker! You are hired for your knowledge, wisdom, ability and expertise.
- 01:20 – “Home” vs. “House”
- 02:15 – Change your verbiage. Don’t use “transaction” or “property”. Use “process”
- 03:15 – Sterile, mechanical process
- 03:45 – Doctor/Patient analogy, Cate: “specimen”
- 04:20 – Shifting your mentality, client-first mentality. You project what you focus on. Client will also sense your inspiration or desperation.
- 05:35 – Agents are in the service industry, not the sales industry.
- 06:45 – Clients might have to give up something, “price, location or home details”
- 07:15 – 4 C’s: Clients, Co-Agents, Company, Commission…in THAT order!
- 08:20 – Co-Agents are NOT your competition. Share your knowledge. They will help you get ahead.
- 09:20 – Every agent is different. Maybe this client doesn’t mesh with you or you don’t know the property type.
- 10:25 – Sharing the wins. Cheering each other on.
- 11:25 – Make the real estate industry great and the bad people get weeded out.
- 11:50 – Company is ahead of you. Respect for your company.
- 13:10 – Everything you do or say has a consequence to not only you but also others in your company.
- 13:55 – Get out if you don’t like the company you work for.
- 14:45 – Commission is last. Do the other three C’s and your commission will get there.
- 15:20 – Pay yourself a salary to avoid the stress of commissions.
- 16:35 – Legal side of being an agent, called Agency. Brian: “Agency means something.”
- 17:30 – Doctor analogy
- 18:30 – Use referrals more often, and/or partner with another agent to help clients.
- 19:00 – Survey: Most Trusted Professions; Real estate agents’ rank at the bottom.
- 19:40 – Limited/Dual Agency soapbox
- 21:25 – Brian asks for agents to fight him on limited/dual agency
- 22:20 – Even if you handled it perfectly, what does your client think? They question the agent motivation and future business and referrals.
- 22:55 – “Me-Me” deals SUCK!
- 23:15 – What does it take to be a legendary agent? Step 1: get your client; Step 2: treat client like a king/queen; you become legendary.
- 24:35 – Warm referrals. Warm leads.
- 25:10 – Cate’s “side note, tangent”. Family and friends can be your worst client, but want the above and beyond. May be harder to please. Be professional so they view you as the professional. Very easy to get lazy and relaxed with them.
- 27:35 – Be careful about complaining about other clients around your family. Vent to accountability partners.
- 28:00 – Think about your client. Have a passion toward that! Create raving fans!
SHOW LINKS
- https://www.dictionary.com/browse/specimen
- https://www.urbandictionary.com/define.php?term=Soap%20Box
- https://www.youtube.com/watch?v=HxUuDPNbkJk
BETWEEN THE LINES LINKS
briancleebtl@gmail.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 002 - Get Organized in Business, Money and Life
Before you run, you must first learn to walk. I dislike that saying because I just want to hit it hard right out of the gate. However, I have learned--the hard way--that planning and being intentional saves time, money, energy and stress. Let Cate and I help you get organized so you can become a legendary agent that stands above the crowd.
SHOW NOTES
- 00:20 – Nothing is more “fun” that getting organized.
- 00:40 – There is not one path that everyone must follow to be great. Everyone has a different need. Anyone that says, “this is what you need to do” is likely wrong because they don’t know you and what you need.
- 01:22 – Business, money, and life are tied together. If don’t have all three, you will likely lead to ruin. Work/Life balance. Cate: “If you’re not enjoying life, what is the point?”
- 02:10 – Your clients will sense your desperation and misery and won’t respond well.
- 02:35 – What is holding you back? You have to answer that for yourself. Take an introspective look.
- 02:50 – SWOT: Strength, Weakness, Opportunities and Threats; Where do you fall in that acronym.
- 03:50 – Ask for help from family, friends, other agents, etc.. Outside perspectives may help you to see what you can’t about yourself. We are our own worst critic. The outside perspective might help you see more of yourself.
- 05:30 – Don’t be generic. Be specific. What do you need? Marketing, money is not specfic.
- 06:55 – Income is not solely something that you acquire. Are you budeting your money well? You are likely throwing away money that you have already earned and hurthing yourself.
- 07:50 – Your life and personal side plays into a huge part in your work success.
- 08:10 – Work Life Balance. Our industry is a lifestyle. Getting personal fulfillment. Cate: “Be intentional about the things that fill you up.”
- 09:40 – The real estate business will beat you down. It is relentless.
- 10:15 – Movie, “Rocky” quote. How hard can you get hit and keep going forward.
- 11:50 – Be proactive, not reactive. Some things you can change and some things you can’t.
- 13:30 – “Intentional” defined: done on purpose
- 14:30 – You will have an off day. You are creating new habits. Pick yourself back up and move forward.
- 15:05 – You are NEVER alone. You are not the only one struggling with the same thing as you.
- 17:00 – You are going to have struggles that you don’t expect. Know that they could happen.
- 17:45 – Make this about your dream. Not someone else’s dream. Judge your life against your own, not others.
- 19:10 – Stop making excuses. Do something about it. Make the future you love what you do today. Don’t hate the past “you” because you can’t change that past.
- 21:00 – WRITE IT DOWN! Vision boards. Create a reference for you to track and go back to.
- 21:20 – Cate: Categorize your life in four areas: Family, Career, Financial and Personal.
- 22:45 – What is your “why”? “Why am I doing this?” Vision board will help remind you.
- 23:30 – Get an accountability partner. Accelerate yourself by having someone who will help and push you.
- 25:05 – “Board of Directors”, meet with them regularly. Partner with other agents.
- 26:30 – Meeting ideas: 3 wins, review last week’s tasks, set next week’s tasks.
- 27:00 – YOU ARE WORTH IT!
SHOW LINKS
- dictionary.com
- befunky.com
- https://www.youtube.com/watch?v=D_Vg4uyYwEk
- https://www.businessnewsdaily.com/4245-swot-analysis.html
BETWEEN THE LINES LINKS
briancleebtl@gmail.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 001 - Change Your Mind
Think outside the box of typical real estate training. Be different! Be legendary! Change your mind, focus on your client and they will turn into ravings fans to propel your business like nothing else can!
SHOW NOTES
- 01:25 – Change your mind to become a legendary agent. Think outside of the box that is beyond marketing.
- 02:05 – What is a real estate legend? Length in the business? Stats? Units? What’s more important is what my clients think of me and the service I provide.
- 02:55 – Be the expert that clients think of when they have questions and need help. Be well rounded
- 03:35 – No training teaches this. No pre-licensing educates this.
- 04:35 – Work intentionally! Be remembered, be respected. Leave a legacy!
- 05:20 – Be proactive, not reactive. Prepare clients for potential issues. Set expectations. This will set the agent apart from other agents.
- 06:35 – Agents, stop talking about your commissions, units, numbers…about yourself!
- 07:25 – Track client happiness. Follow up with the client. Survey your clients. Consider hiring an outside source.
- 08:50 – Make 10 great clients happy, instead of 100 potential clients that don’t know you.
- 09:55 – Get warm leads, not cold leads
- 11:10 – Not a typical marketing system. Not a get rich quick idea. This is a long-term business plan.
- 12:10 – How do you view yourself as an agent? Do you view yourself as a “salesperson” or as a doctor or attorney that clients go to for advice? That gets portrayed to your clients and they respond.
- 13:00 – Clients watch their agents and sense their urgency
- 13:50 – Remember that clients are involved in a few transactions in their lifetime. We are involved with several every month.
- 14:40 – Use a “bedside manner approach” with your clients.
- 15:00 – Love what you do. Have passion for your clients and their needs.
- 15:50 – Work out of inspiration, not desperation.
- 16:30 – Agents can have a bad day but reframe your mind when you engage with your client.
- 17:05 – “It’s not about you, agents”. Agency says you are being hired to take care of them. I am here to serve you. I am an advocate for you.
- 18:05 – Agents, love your clients and they will love you back with referrals, positive feedback on social media, etc.
- 18:30 – Our business is a lifestyle. You have to be on all the time. Be a real person and be genuine.
- 19:50 – Be a resource to your client. It is a show of respect for you and a comfort that your clients have with you.
- 20:40 – Change your mind. Become a legendary agent. We promise you will create raving fans that love you and will propel your business.
SHOW LINKS
- https://www.youtube.com/watch?v=Y944YxuE1OU
- http://www.teamlynchrealestate.com/Customer-Satisfaction-Survey
- https://www.youtube.com/watch?v=Jstox3uOKWU
BETWEEN THE LINES LINKS
briancleebtl@gmail.com
cate@craftsmanrg.com
Web
brianclee.com
catelee.com
realestatebetweenthelines.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
Episode 000 - Intro to Real Estate Appraisal Between the Lines
Just like all good stories, there is a beginning, a middle, and an end. We had our beginning, middle, and end, and beginning. What? We re-recorded our intro episode to our podcast to discuss what we’ve done and where we are going.
Our podcast started out at as broad spectrum discussion on real estate. In January 2021, we shifted gears and focused on real estate appraisal and valuation to help agents understand the finer points and fun facts of real estate appraisal, valuation, and writing CMAs. Is that really fun, you ask? Listen in and I think we might change your mind on a few items that fall between the lines. Enjoy!
SHOW NOTES
- 00:30 – You’re friendly neighborhood appraiser. Antonyms?
- 01:15 – Welcome to Cate, the co-host for right now and B’s wife and business partner.
- 01:30 – Listeners like to first listen to episode 000. Ours gets better from here.
- 02:15 – Let’s talk about B, the most important person. Appraiser, broker, and instructor. IU Grad. Husband, father, and Star Wars geek.
- 04:40 – Cate talks about herself. Broker, coach, mentor, Psych major from Franklin College. Wife and mom. Jeeper.
- 07:10 – Talk about the podcast. Re-Introduce the podcast due to the change in focus.
- 08:00 – Cate has a great idea…we have podcast seasons.
- 08:42 – Started the podcast in February 2020 when COVID-19 became a big thing. At that time, the focus was across the board real estate topics.
- 11:20 – End of 2020, Cate & B had some conversations and Cate said she “hated Brian” and wanted out. We re-focused our efforts. Listen to episodes 50 and 51 to hear the changes we made and why we are here.
- 12:54 – Demand surrounded the appraisal topics, and we are focused on that.
- 13:55 – “Re-Launching” the episode with episode 52 that are appraisal focused. New episodes will come out weekly and will be short, 5 to 10 minutes long. All about valuation items.
- 15:22 – Cate: we will help agents to write CMAs by working through situations.
- 15:58 – Will include interviews and other things agents want to know. This podcast is centered around agents, not appraisers. Not technical.
- 16:54 – There are podcasts to help appraisers. Podcasts that help agents on broad spectrum items. There are not many pricing properties podcasts that help agents.
- 17:45 – Good-bye Cate. Cate still hates Brian. Good luck with her podcast. (ha ha) She will be back as a guest.
- 19:45 – We are excited for this new format. Great feedback from agents so far.
- 20:05 – Reach out B to ask questions and tell us what you want to learn and hear about.
- 21:15 – Brian is a narcissist with his email and website. But Cate is even more so with tons of websites devoted to her.
SHOW LINKS
- Indiana University – https://www.indiana.edu/
- Star Wars – starwars.com
- Cate Lee – catelee.com
- Rubicon Realtor – rubiconrealtor.com
- Yin and Yang – https://en.wikipedia.org/wiki/Yin_and_yang
- George Costanza (I’m out) – https://www.youtube.com/watch?v=O27RzZEOkeA
- Tiger King – https://www.netflix.com/title/81115994
- Brian Lee voice actor – brianlee.com
BETWEEN THE LINES LINKS
brian@brianclee.com
Web
brianclee.com
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?