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Whenever I receive an Internet lead…or at least nine times out of ten…the prospect requires “strong negotiation skills” as one of their decision criteria.  And it always strikes me as a funny requirement because nowhere in our training to become licensed agents are we trained in how to negotiate.  That’s because WE ARE NOT NEGOTIATORS…WE ARE AGENTS!  Our job is to bring together Buyers and Sellers in regards to a common goal which is to buy or sell property at a mutually agreed to market value.  (By the way…just so you know…market value is defined as “the price a Buyer is willing to pay and a price the Seller is willing to accept”.)

Now don’t get me wrong…there is a tremendous amount of advice and consultation that goes on between an agent and their client.  After almost 10 years as a Realtor, I bring an enoumous amount of experience to the table because of all of the different types of transactions I have been involved with.  So I can advise my client on the best strategy for them based on the situation.  But the ultimate “negotiation” and decisions are made by the Buyer and Seller…not the agent. 

Since neither agent can actually speak to the other agents client, we are simply passing our clients decision on to the other agent and trying to influence them as to how to present it to their own client.  Now, if being a “strong negotiator” means that I dig my heels in and say to the other agent “here is the offer, accept it or my client will move on”, that to me is not strong, that’s DUMB.  What if the Seller says “OK then strong negotiator…go ahead and move on”.  Where does that put my client?  This isn’t like buying a car where the Buyer can go to the dealership down the street and buy the identical product.  There is only one of these properties. 

But if I deliver my clients offer with a supporting strategy…”here is how my client arrived at the offer and this is the information we used to determine what my client believes is fair to both parties…if you have differing information, my client would certainly be willing to review it”…that’s SMART.  At least this creates a sitaution where there can be dialogue.  And if I have advised my client properly, they can negotiate in confidence.  And even if the transaction does not have a favorable ending, they will at least know that their strategy was sound and maybe the other party was not interested in being fair.

Real Estate transactions are not about a Buyer or Seller getting the better of the other.  This is not an adversarial business.  Unfortunately, not everyone involved in this business is in tune with this.  Believe me when I say that an agent will do everything possible to get their clients the best deal.  Because if they can’t, there will probably be no transaction at all.  And when this happens, everyone loses.  But it also has to be a fair deal…so that everyone feels good at the end of the day. 

So, please don’t call me a strong negotiator…call me a smart agent instead.

I guess it depends on who’s asking the question.  If it’s a Buyer, then the answer is YES!  There has never been a larger selection of homes and great prices than there is right now.  And mortgage rates…especially fixed rates…are at an all time low.  There has never been a more opportune time to buy real estate.  If it’s a Seller, same answer.  Now is the time to get into the fray and compete for those Buyers that will buy a home.  Yeah…we have a lot of inventory.  But let me tell you a little story.

About 6 months ago, I began working with a Buyer couple…first time homebuyers with a small child.  They had done considerable research and knew what they wanted.  Over the course of about 4 months, we looked at 25-30 different homes…none of them were just right.  These included homes that had been on the market for a considerable length of time with several price drops…so we knew the Sellers were probably very negotiable and motivated so we could have negotiated a good deal…and homes that were new on the market.  Then it happened.  A home was newly listed on a Tuesday morning…we looked at it on Tuesday afternoon and had it under contract by Wednesday.  Days on Market = 1.  With average Days on Market in the 90-120 range, this was certainly an anamoly.  But it does happen.  The reason…PRICE.  This particular house was well maintained and showed well…but we saw a lot of houses like this.  However, the Sellers had priced this house below market and below any other comparable home in the area.  It wasn’t a steal, but the SOLD price that was finally negotaited was fair for both parties.  We closed in 30 days…the Seller is off with the next chapter in their lives and the Buyers are now building equity on their own home.  And guess what?  Most of the homes that we looked at are still on the market.  Most Buyers are saying…”If no one else wants to buy this home, why would I?”.  Excellent question.  Every home will sell and 9 times out of 10, it will be due to price.  For every 30 days that a home sits on the market, the Buyer pool is reduced by 50% and the price a Seller can negotiate falls by 1% to 1.5%. 

Now as a Realtor, my answer is always YES!  I advise my all of my clients…Buyers and Sellers…”take the word wait out of your vocubalary”.  If you’re a Buyer, take your time but be ready to pounce when you find what you like because chances are lots of other Buyers like it too.  For Sellers, take your best shot right out of the bag because you may not get a second chance.

Boy…do I get this question a lot.  “My credit score sucks…how can I fix it?”  Well first off, no credit score sucks…some are just better than others.  And even though the mortgage lenders have tightened up their requirements for lending their money to home buyers, that is not to say that even marginal credit scores can’t get you a mortgage. 

There is a standard that the mortgage lending community goes by…FICO…which stands for Fair, Isaac and Company which provides the credit scoring model.  And they have set a FICO score of 680 as the “stake in the ground” by which all other credit scores are measured.  I won’t get into how the score is determined…that’s a whole other subject.  But anything at 680 and above is considered “A” credit or “A” paper.  This means that a buyer can generally get just about any type of mortgage that they want including 100% financing with really good rates.  The higher the FICO score goes, the better the mortgage programs get. 

Now, if the FICO score is below 680, all is not lost.  Some mortgage lenders still have what is called “A minus” programs for buyers that are just below the magical 680 score but still with other good qualifications.  I just worked with a first time buyer that had a FICO score of 677 but was still able to get 100% financing.  They had to pay mortgage insurance…which with a 680 score would have been eliminated…but still received a very good mortgage rate with no points.

When a buyers FICO score starts falling well below 680…the traditional sub-prime market which has all but vanished…things get a little more challenging.  Fortunately, FHA mortgage programs are still available to help these types of buyers and more of the sub-prime lenders are starting to add these to their product lines not only to help these types of buyers BUT ALSO TO STAY IN BUSINESS.  Believe me, lenders will do everything they can to help…it’s mutually beneficial after all.

If you want to improve your credit score, here are some tips that might help…

What does a credit score range from?
     300 to 850
What is a good score?
     680 and above is considered “A” credit.
What determines the credit score?
     35% payment history (lates, collections, charge-offs, public records)
     30% account utilization (balances being carried)
     15% length of credit history
     10% types of credit (mixture is best)
     10% inquiries (only the first 10 count)
Should a person payoff their debt?
     The only debt that should be paid during the loan process is unsecured debt (credit cards). Paying collections will decrease the credit score due to the date of last activity become recent.  But if you do decide to pay off a collection, MAKE SURE that the creditor gives you a letter of delection first.
What balance should I carry on my credit card to maximize my credit score?
     As close to zero as possible.  But if you can’t pay them to zero, make sure that all balances are under 50% of the limit, preferably 30%.
How much do inquiries hurt the score?
     Between 2 and 50 points…but only for a year from the date of the inquiry. Only the first ten inquiries are counted and all auto and mortgage inquiries made within a 14 day period are treated as one.
Does the score go down if a person runs their own personal credit report?
     NO. You can pull your report as many times as you want personally and it will not affect your score. However, the score that you receive from a credit report you ordered will be higher than the credit score from a lender.
How many credit cards should a person have?
     3 to 5 cards is best.

Hope this helps a little in trying to understand this whole issue of credit scoring.  Needless to say, there are lots of ways to work within the framework that has been established to get a mortgage…even witout perfect credit.

Are we lucky or what!  January in Dallas and it’s shirt sleeve weather.  Having lived in Phoenix for a while before becoming a “naturalized” Texan, I sometimes take this weather for granted…until that Norther blows through.  So when this great weather decides to bless us, I kind of go into autopilot mode and rev up one of my favorite outdoor activities…grilling meat! 

 For those of you that are addicted to this past time, I applaud you and console you at the same time.  If you have figured it out…way to go.  If not…keep at it.  Grilling is an artform and it takes practice.  Believe me…I have turned many prime cuts into burnt offerings to the grilling gods.  But when everything falls into place and your fellow diners say…”WOW, can we have this for dinner everynight”…it’s all worth it.

I have 4 grills…2 gas, 1 charcoal and a barrel smoker I call Bubba.  The folks at Barnes and Noble, Half Price Books and Borders know me by name and get a gleam in their eye when I walk in…they know that the cookbook section is about to be pillaged.  And it is amazing what you can actually “grill”.  Just about anything you want as long as you can keep it from falling through the grate into the fire. 

Over time, I have learned what to do and what not to do.  So here is a list of 10 Rules that may make your grilling experience a little richer.

Rule 1.  Always keep your grill clean.
Rule 2.  Use oil or cooking spray on your cooking grate when grilling lot fat meats and other foods.  This will keep it from sticking to the grate.  Always apply to an unlit grill.
Rule 3.  Always give yourself plenty of time.  Don’t leave your guests waiting.
Rule 4.  Always keep an eye on what your are grilling.  Timing is extremely important.  Use a meat thermometer.
Rule 5.  Do not use a spray bottle of water to contral flare-ups.  Trim excess fat and when you turn meat, move it to a differnt part of the grate.
Rule 6.  Do not add sugary or oily sauces or marinades to meat on the grill.  This can cause burning.
Rule 7.  Keep your grill away from anything flammable like lighter fluid, fences, YOUR HOUSE, etc.
Rule 8.  Spice up your food a good hour before you grill.  This lets the flavor sink in.
Rule 9.  Use the proper tools.  Forks are good for eating, not good for grilling.  Use tonks are a spatula instead.
Rule 10. Always make more than enough for everyone.  If it turns out good, there won’t be any left anyway.

If you have any other Rules you would like to share or a recipe the has been a hit, send it along and I will publish it for you.