Every so often I do a tech tip that inevitably helps others in the real estate community.  This is one of those times.

ZipForms is a great tool that most of use now to create and fill out the various contract documents associated with a real estate transaction.  ZipForms Online is the online version, which by most standards, I would find perfect for what I need to do, but there’s something about the online version I don’t like, which is why I’ve been using the desktop version.

The desktop version is installed locally on your hard drive which allows you to work offline.  As connected as I typically am, I decided that blowing $60.00 every month on a mediocre wireless access card through one of my cell providers wasn’t a great use of my money, considering that I’m usually near a WIFI hotspot.

Even with that in mind, there are certain limitations to the online version of Zipforms that have nothing to do with Zipforms, and everything to do with the internet connection that you’ve joined for the time being.  Sometimes coffee shops just don’t have the bandwidth I need to get my contracts written.  I tend to work much faster than an internet connection can accomodate, so being able to do the meat of the work offline, create my digital packages to send to my clients, then connect and send is much more efficient.

The Problem

ZipForms desktop is fantastic when it comes to offline editing of files.  It’s not fantastic when you’re someone who not only uses multiple applications on one computer, but multiple computers.  I have a desktop at home, a Windows based laptop, and now, a MacBook Pro.  The desktop version stores all of the information about your transactions on the computer you’re using, not on the internet, so you cannot access a contract written on one computer on the other…unless you employ the following tool…

Microsoft has a great synchronization tool that allows you to choose a folder, or set of folders on one computer that can be synchronized through the internet to another set of folders on another computer.

ZipForms Desktop stores all of your transactions, clauses, templates, etc., in the same folder on each computer, so it’s quite simple to setup synchronization between those folders to ensure that all of the changes you make in one transaction are nearly immediately available on all of the other computers involved.

Getting Started

Before you can sync files over the net, you’ll need to create a Windows Live Login.  I know, this is probably one of many options on the internet, but to date, it’s the most reliable I have used, and even though it’s a Microsoft product, which I typically cringe at, it works.

Head over to http://login.live.com and create an account if you don’t already have one lingering around from years past.  Once you have an

Challenge:  Buy a primary residence with a loan.

After Forclosure:  Probably not for about 5 to 7 years.
After Short Sale:  More likely 2 years.

Challenge:  Borrow to purchase an investment property.

After Foreclosure:  You’ll be waiting 7 years before you can do this.
After Short Sale:  2 Years and you’re golden.

Challenge:  Borrow money from anyone other than Fannie Mae to purchase a property.

After Foreclosure:  Applications ask if you’ve foreclosed.  By law, you have to disclose.
After Short Sale:  No applications will ask if you have ever sold a house short of what you owe.

Challenge:  Maintain Credit Score

After Foreclosure:  You’ll be affected by 250 to 300 points for roughly 3 years.
After Short Sale:  When you close a short sale, they report the debt as paid for less.  This is not as derogatory as a foreclosure, and may only drop your score by about 50 points for a year to a year and a half.

Challenge:  Sparkling clean credit history

After Foreclosure:  This will remain on your credit report for 10 years or more.
After Short Sale:  Not reported.  They do not report “Short Sale” on credit reports.  It will be reported as Paid or Settled.

Challenge:  Get a job in the military or other highly secure position in corporate America.

After Foreclosure:  Not likely.  You blew it dude.  Now you have a history of bailing out.
After Short Sale:  No problem.  Won’t show up on a background check.

Challenge:  Stay employed.

After Foreclosure:  Disclose that you foreclosed on your property and your employer may catch wind of it, which could lead to termination, especially if you’re in a position that is sensitive to the company.
After Short Sale:  Not reported on your credit, so they won’t have a clue.

Challenge:  Get a job.

After Foreclosure:  Employers can check your credit, and challenge your potential employment due to this type of derogatory mark on your history.
After Short Sale:  Not Reported.  You’re hired!

Challenge:  Avoid a deficiency judgment.

After Foreclosure:  If you live in a state that is a non-deficiency state, you may be safe, but if you don’t, you may be on the hook for the difference of what the house brings at auction, and what you originally agreed to pay.
After Short Sale:  No deficiency, depending on the type of loan.  Part of the short sale agreement typically releases you from all liability.

Challenge:  Minimize the amount of the deficiency.

After Foreclosure:  The cost of foreclosure increases the amount you’ll be deficient.  If your home forecloses, you could end up being on the hook for far more than if you sell short.
After Short Sale:  Short sales, unlike bank owned properties, sell closer to market value, thereby minimizing the amount that you would be deficient.

An article was recently pushed across my desk which really has made a difference in my life.  It was written by Bill Gray, and I’m not sure where the article was originally published, but I’m posting it here so you have the chance to also read it.

DISCIPLINE, by Bill Gray

Over time it has been proven, without a doubt, that those who possess self-discipline are the most successful.

Self-discipline relates to a person’s integrity and moral ways; it becomes an internal compass that leads you toward your goals.

Those with discipline do not need to be told what to do and rarely need a guidance counselor too lead the way.  No one tells a person with discipline when to get up, when to go to work, or what to do when they get there.  This type of person will set his or her own priorities and schedules and meet their own deadlines.

Self-discipline is more powerful than luck, aptitude, or talent, and provides greater results.  Discipline allows you to set your siights on a target and find a way to achieve it.  It will wear down th etoughest opponent and help overcome the greatest obstacles.

Discipline is the primary ingredient to economic success.  If you lack discipline, your chances of success are slim.  Many with outstanding futures and abundant talent have failed when discipline was lacking.

Most unhappiness comes from a lack of discipline.  Society makes millions of dollars a year on those who lack self-control.  You can inherit a million dollars, but without a disciplined plan you will be no better off in a few years.

We live in a society of abundant “starters” but very few “finishers.”

Bill Gray is publisher of the Arizona Journal of Real Estate & Business and president of the Arizona School of Real Estate & Business.

As of now, we have a total of 43,705 single family detached homes on the market.  Our total number of residential listings is at 52,542.  A total of 1053 properties sold between August 18th and August 24th 2008, which was down from the 1200 that sold the previous week.

The average asking price for this week was $409,037 while the average sales price was $238,943 which was a slight increase over the previous week.  It’s time for the market to correct.  Prices over the next 12 months are expected to increase gradually, but not at the rate that we would normally expect of our real estate economy.

We’re currently

at an average of 112 days on market with roughly 9 1/5 months supply of inventory overall.

The world of Real Estate in Arizona is about shift.  July is a big month for the technically savvy agent because our property listing system is being completely overhauled.  But more importantly, it’s a big month for you because the system that you rely on to view property searches is being vastly improved.

Client Gateway is a clunky online system that allows you to see various properties based on searches that I have created for you.  Client Gateway will soon be a think of the past.  The new Flex MLS system enables you to login to a free online “Portal” to your property information.  Through this portal, you have far more information that Client Gateway could ever provide, and the system is much more efficient and responsive.  It’s also fun to use.

Rather than attempt to describe how it works or outline all of the features, I’ve included a link to a video tutorial that you can watch before you get started.

If you’re ready to begin searching for a home and you’d like to have your own personal portal login please complete the form below and I’ll set you up.

cforms contact form by delicious:days

I was recently sent a link to this video which expresses how many of us feel, most of the time, when we’re wired with a flair for creativity. I have that thing.

What Matters to You // Me? from Jr.canest on Vimeo.

Believe it or not, even though you may have heard that lenders have tightened their grip on loans, as long as you meet the conditions of your lender and the Fair Housing Administration, it is very possible to buy a home with nothing down.

It was a beautiful Memorial Day this past Monday, May 26th in Phoenix, Arizona. The sun was out, the air was cool, and the beer tasted magnificent. What a day for a pool party. In my sphere of influence, we have a few regular gatherings in which we share our lives, our ambitions, fears, and failures. Monday happens to be called Lazy Monday, because we get together and cook and eat and talk, and that’s where I had the opportunity to speak with one of my married friends about the realistic possibility of purchasing a home.

One of the interesting facts about their situation is that even though they’re married, even though they’re of age to vote and drink, they consider themselves to be young. Too young. Too young to be responsible enough to purchase their own home. After explaining a few things to them, including the fact that it wasn’t until I had reached age 30 that I had myself purchased a home, it became clear to them that they might just be able to purchase a home, and then they appeared as though they were defeated. They seemed to be down on the fact that they had missed out on an opportunity. You see, they are currently living in a home owned by their parents, and they are planning on moving into another one of their parents’ homes to rent for a year, this June.

The most common objection I hear first time home-buyers offer up is that they don’t have any money to buy a home. It’s an understandable fear. Newly married, tight on the budget, looking for a place in the world, starting out a new career and a new business. Of course it’s overwhelming. But that’s what we’re here for. Our job is to educate the buyer so he or she knows that it’s very possible to own a home, and it’s even possible to get into a home with no money down.

Don’t worry, even though the prospect of no money down in today’s market conjures up thoughts of mortgage fraud, I can assure you there are programs in place to help the first time home buyer.

STEP 1: Get pre-qualified.

Find a good lender and find out where you stand financially. You need to know what you can afford. Remember that renting makes the other guy rich. Develop a baseline from which you can start. If you know how much your lender will loan you, you know what type of home you can purchase. Working out the down payment comes later.

STEP 2: Find the right home.

There are currently 36,224 active listings in Maricopa county that may qualify for FHA financing. Some properties, depending on the ratio of investment properties to owner occupied properties in a given development, are not eligible for FHA financing.

(Note: The Federal Housing Administration does not write loans. They insure loans. Most major lenders can lend within FHA guidelines and according to FHA programs.)

To qualify for any zero down program, you’re going to have to keep your prospective home price at or below the current FHA limits. I can help you find the perfect home by setting up the types of searches that internet search sites only offer members of their local MLS board. Sites like Realtor.com and Trulia.com only allow you to select limited criteria. I can drill down through the data to find very specific information for you, and I have access to the homes, so I can show them to you. Don’t go into the home buying process with the expectation of finding a stellar bargain. What you’re going to focus on is finding a home that you can get into for zero down.  Susan Gruenling of SonoranHouse.com recently wrote in an article entitled “Is the Right Time to Buy Now?” writes:

Buyers, you need to realize that with more homes on the market now you have increased negotiating power. And the negotiating is not limited to just the purchase price, but includes closing costs, closing date, home warranty, HOA transfer fees, repairs and other options. It is important to work together with your Realtor to structure your best offer.

STEP 3: Make an offer on the home.

This is where the zero down payment comes into play. On a conventional loan, it is common to see the buyer ask the seller to cover some of the expenses that the buyer would normally be paying for. For instance, they may ask the seller to contribute up to 6% of the purchase price towards closing costs, pre-paids, and acquisition fees.

So let’s expand on that simple idea. You, the buyer, decide to purchase a home for $100,000. Your offer, when prepared properly by a competent REALTOR, will ask the seller to contribute a percentage of the purchase price towards closing costs. In this case, we’ll ask for 3% concessions. This reduces the amount that you’ll need to borrow from $100,000 to $97,000. We could essentially call this a 97% offer, meaning if the seller accepts your offer, it would be just like offering $97,000 with no concessions, and most sellers will jump on it. Asking for concessions keeps the selling price of the home at $100,000 which helps stabilize the market, rather than reducing the neighborhood pricing.

“Well, that’s fantastic,” you say, “but how does this help me with a down payment, which the FHA financing still requires, and we don’t have?”

Answer: The AmeriDream Down Payment Gift Program

AmeriDream, established in 1999, is a 501(c)(3) charitable organization creating opportunities for qualified low to moderate income individuals and families to purchase affordable homes, improve their financial lives, begin a family legacy, and strengthen their communities. AmeriDream provides a wide range of programs to benefit the individuals and families it serves, including homebuyer education, foreclosure prevention, building affordable homes, and providing financial support through privately-funded down payment gift assistance.

Through the AmeriDream organization, a home seller can be asked by you, the buyer, to contribute up to 10% of the purchase price towards down payment assistance for future home buyers. At closing, AmeriDream will cover the agreed-upon down payment amount from previously collected gifts that other sellers have contributed to AmeriDream.

“Why would the seller want to forfeit some of their net return on their home to benefit the buyer?”

Like I mentioned before, in a market where the seller is motivated, it’s highly likely that a 90% offer would be accepted. If you were to come to the table with a 100% offer, then ask for 3% towards closing costs and 3% down payment gift to AmeriDream, then you’re essentially coming in at a 94% offer, and if the seller was ready to accept 10% less than asking price, they’re sure to accept 6% less. Sure, you could ask for more, in fact, you can ask for up to 6% of closing costs and 10% towards AmeriDream, but this is stretching it, as most sellers will see $16,000.00 lost for every $100,000 of purchase price. Who knows? Perhaps they would take it if they were desperate enough.

The benefit to asking for this type of concession is that it will keep the price of the home where it should be, because you’ll be making a full price offer (provided the home is priced right), and you’ll be purchasing a home where the seller covers your minimum down payment requirements for FHA insured financing.

Make sure you check with your lender to confirm the cap on concessions before you proceed with the home buying process.

STEP 4: Proceed

Step 4 will only occur if the seller accepts your offer, and we’ll save that for another article.

Many real estate licensees have chosen not to be active in the marketplace. The costs associated with running your own business can be more than many wish to handle. What if, even though you aren’t actively selling real estate, you were able to collect a referral fee just for bringing business to the table?

Realty Executives has a referral program for the licensee who doesn’t actively sell real estate but wishes to keep their license. If you’re one of these people, and you still want to make a great income without actually working in real estate, give me a call and I can discuss how it works with Realty Executives.

The basic premise is this. When you come across a potential client, you pass them on to me and I’ll take care of them. As long as you’re part of the Realty Executives referral program, you will receive a referral check. Their program allows you to hang your license in such a way that allows you only to participate in referrals, and it’s very inexpensive.

Interested? Give me a call today and I’ll point you in the right direction.

I stumbled across this video today which shows a lovely experience for an unsuspecting couple looking to buy a home.

I believe that over the next year we will continue to see steady growth in real estate sales. Buyers are finally loosening up their grip on their pocketbooks to wisely invest in a time where the prices are at or near the bottom of the price curve.

It is still a buyer’s market. If you have property, hold on to it, unless you have unique motivation to sell, as history shows that it will increase in value. Remember, when the world is saying the market is awful, it’s time to buy. When the world is saying the market is fantastic, it’s time to sell.