America Has a Heart Problem

I’m old enough to have grown up hearing stories about WWII. My father was drafted with a wife and 4 daughters at home and yet he told stories proudly about his time served. He didn’t whine about being yanked away from his family at a critical time…he did what he did for our Country. Although he was divinely protected from harm, he returned home a hero right along with 2 of his brothers. They were thanked for their service not criticized for their “involvement”. Americans were proud and willing to fight to defend this amazing Country of ours IN SPITE of the fact that (on the average) over 400 Americans died every single day…over 400,000 Americans lost their lives in WWIl. Incomprehensible.

Some of our relatives returned home to talk about it….some of them died defending their Country, their families, their freedom and their liberty. America was united and proud at that time. Americans rolled up their sleeves and did what they had to do to support our troops. I have heard time and time again about the celebrations that took place when that war FINALLY ended. What a glorious time that must have been. America was energized and prepared to move on to become a stronger union…a united front. America had a healthy heart.

I’m also old enough to have grown up hearing stories about the war in Vietnam. Countless brothers and fathers of my friends served in this horrific war under unspeakable conditions. The draft was in full force and the dodgers were running marathons to avoid the requirement to serve. On the average 26 American lives were lost each day…almost 60,000 in total. Unimaginable.

Most Vietnam vets were not warmly welcomed home. This war had become a political platform and our troops paid the price. They came home to criticism and judgment…protestors spitting insults at them and a Government not prepared to deal with the emotionally and physically wounded warriors and the challenging after effects of this war. Veterans were made to believe that they weren’t worthy of praise for service. They were made to feel like traitors for their involvement in spite of the fact that most of them were drafted to serve…like damaged goods for serving the Country that many of us still love. Unbelievable. A major sign of a heart problem.

I used to believe that the difference in the attitude of Americans between WWII and Vietnam was that America was under direct threat as part of WWII so most Americans could justify the war while many Americans questioned our involvement in Vietnam in the first place. Clearly I was wrong. Our war against terrorism began with a direct threat and the loss of thousands of American lives on U.S. soil and yet there is a never ending flow of judgment about our involvement in this war. Apparently this isn’t a good enough cause to fight back for many Americans. I just wonder where we’d be now if America had taken a soft approach to a treacherous attack.

I’m old enough to have a son and son-in-law PROUDLY serving in the United States Air Force. Nobody forced them to serve…they didn’t join the military because they didn’t have other options or because the unemployment rate is high…they didn’t join with a “shoot ‘em up” attitude. They joined because they believe America is worth fighting for and they are willing to do their part for our freedom and yet I can’t begin to count the times that someone responded to news of my family in service by saying “I’m so sorry…I’d never let my kid do that”.

I’ve never prayed harder nor have I ever been prouder than I am today and yet my heart breaks for them every time I overhear someone question our involvement or criticize our efforts. Clearly a sign of a serious heart problem. Make no mistake about it, each time you have this discussion in the presence of one of our warriors it is like spitting in the face of those who have chosen to serve our Country for all of the right reasons. Disgusting.

Nobody likes war. I may not be happy with the current state of affairs or our perplexing political platform but I’m still proud to be an American and I stand behind every brave warrior defending the United States of America.

Yep, America has a heart problem. Fortunately it’s not an incurable one. We just need to focus on the problem and seek the appropriate “treatment”.

Let’s set aside our political platform surrounding this war and say a few kind words to our troops instead of questioning their efforts. I grew up hearing “if you don’t have something nice to say, keep your mouth shut”. Sounds like pretty good advice when in the presence of someone willing to die for you and me, don’t you think?

HOA's...Blessing or Curse?

If you don’t live in a subdivision governed by an HOA you may be shocked to learn about how much power they have over the property owner. So much power that the right to quiet enjoyment of your property can be stolen from you effortlessly. So much so that, IF you are unable to pay your dues they have the right, and don’t hesitate to, foreclose on your property. The HOA has no problem obtaining a “priority lien” to collect the fees. You’d be shocked to hear of how many homes across the country have been foreclosed on by community Homeowner’s Associations. As if life isn’t hard enough these days.

One Homeowner’s Association in Edgewater, Florida votes this week on banning children from playing outside! “No bikes, no…no skateboards, no skipping rope, no loud voices”…no childhood. They believe that they are justified because they don’t have a community playground so “the occupants should have made a better choice about where to live”. Sadly there is every possibility that the HOA will win. What would you do if you and your family were living in a community that BANS children from playing outside? If the HOA gets its way, the homeowner can do one of two things. Abide by the rules or move.

I recently read about a single mom in Texas who lost her job and was struggling to keep up with all of her expenses. She fell behind in her dues for a few months but was able to catch up on her payments minus the $100.00+/- added to her bill for “legal fees” incurred to collect the HOA dues. She believed that this fee was no longer applicable because she paid her dues up-to-date before legal action was forthcoming. Nope. They foreclosed on her property for less than $200! Her home was completely paid off…she hit hard times…she paid her dues…but she LOST HER HOME because of the power of the HOA. This happens far more often than you would ever imagine.

I live in a large lot subdivision in Virginia that has raised my HOA dues from $400 per year when I first moved here 12 years ago to almost $6,000 a year now. Amenities? NONE. Services? NONE. We get our road frontage mowed and the snow removed in the winter. That’s it. Quite a price to pay for little return, don’t you think? There are gated communities with 24/7 guards, a community pool, tennis courts, trash service, high speed Internet and snow removal that pay far less than we do in our small Purcellville subdivision. Where is the rationale in that?

My property has been forced into an unmarketable position. The ability to sell has been drastically impaired because of the amount of the dues that can’t be easily justified to the potential buyer. How can you explain away almost $6,000 a year? As if this market doesn’t have enough problems of its own…nobody in their right mind would willingly take on these dues for more control than return on investment.

Of course, there are some that would chose to live within an HOA at ALL costs. They are so focused on the “risk” that they might get stuck with a bad neighbor that could “devalue” their property because of an above ground pool or a dirt bike. How did we get sold such a bill of goods that we believe that we have to surrender ALL property rights so that we have someone else to fight our “bad” neighbor battles for us? Does that really make sense to you?

Most people believe that they are forever stuck in HOA jail. Most are not aware than an HOA can be abolished and the property rights and management can revert back to the individual property owners. Majority rules in this case, based upon the by-laws of the individual HOA. If the majority votes to abolish the HOA it gets abolished.

So, what would you do? Would you fight to remove the HOA or are you so paranoid about someone painting their door the wrong color or one too many cars in the driveway that you would quietly remain in bondage to the rules and the governing power of the HOA?

I believe that the Homeowner’s Association agenda needs to be addressed and the power needs to revert back to the homeowners at all costs. I’ll deal with the risk of a “bad neighbor” or a front door painted the wrong color. Frankly, $6,000 a year would buy me a lot of legal advice to battle the challenges…if they ever come my way.

Think long and hard about your next purchase. Consider the power that the HOA will have over you and your family if you buy into an HOA subdivision. Keep looking…it will be worth it in the long run.

Do you have an HOA story or want to provide input? Please write to: HOAfacts@gmail.com.

Waiting For The Other Shoe to Drop....

Okay...so I've been called cynical a few times in my life but for the life of me I can't understand why anyone would believe that the economy is now out of the slump. I know...I know...the news is reporting that real estate sales are "up" and that prices are increasing. Sounds good on the surface and part of the reason we're seeing increased consumer confidence. However, the real estate market is supply and demand driven...the fewer properties on the market the more demand there is for what is available and the prices rise as a result of the demand. So...why are there fewer properties on the market in the midst of the worst economic storm our generation has ever seen?

I believe that we're overlooking the obvious. SOMEBODY, SOMEWHERE put a stop to introducing REO properties to the market and nobody seems to know what's going on with them. We know that by the end of 2008 there were already millions of REO properties on the books when the moratorium was put in place to delay the foreclosure process throughout the holiday season. In early 2009 the lenders moved forward with millions of pending foreclosures and (I assume) that most of the people in line for foreclosure were still right where we left them before the moratorium and they ultimately ended up losing their homes to foreclosure. We also know that the the number of foreclosures slowed ever so slightly in 2009 which means that we still averaged approximately 300,000 foreclosures per month throughout the year. Although I don't think that anyone can say for sure just how many properties the banks are holding, I think we could all agree that it is well into the millions. So...why are they holding them and how long with the continue to do so? Is it possible that the banks and government have conspired to hold off introducing any more inventory to the market in order to give the perception that things are improving? Imagine that!

The real question is, how long can we avoid the inevitable? How long will banks hold vacant, unlisted properties before they open the flood gates? If they aren't selling them or renting them what do they plan to do with them? Better yet, what condition will these properties be in when they finally decide to get them off the books?

I love America and I believe that this is STILL the greatest country in the world in spite of our problems but Americans are an amazing people. I guess we choose to ignore the obvious if it's just too painful to digest. Frankly, that is one of the reasons we're in the mess that we're in. We turned a blind eye to the obvious and allowed our economy to tank and we're all guilty as charged. The American people are lead around like sheep and buy into whatever the news tells them. It's been fascinating to watch this process from my cynical seat. The news reports that "we are not in a recession" and Americans believed it EVEN THOUGH all of the signs were there that we were not only "in" a recession but we'd been in one for 2 years before the networks finally reported the bad news. Now we're being told things are improving and we're buying into that too. Wake up America! There is a "boogie man" in the closet and someday soon he's going to get out and we're ALL going to feel the pain. Ignoring the problem does not make it go away.

No doubt I'm a cynic but I am NOT a fatalist. I'm able to deal with whatever comes my way as long as I can wrap my head around the "worst case" scenario. So...what is the worst case scenario with millions and millions of properties hovering out there on the horizon waiting to be introduced to the market? The possibilities are frightening.

May God Bless America. We're going to need it.

Chinese Come to U.S. for Auction Training

Better Understanding of Auction Process Needed

to Participate in U.S. Market

May 13, 2009 - /FLIERWIRE/-- Washington, DC, May 13, 2009 The Institute for Auction Learning, exclusive provider of the Certified Auction Specialist® (CAS) designation program, has signed a contract to provide auction training for 460 Chinese real estate agents & potential buyers of U.S. properties. The primary focus of this training will be to detail the process and raise the awareness so that the attendee is better equipped to participate in auctions nationwide. The first group will depart for the U.S. from Beijing in late May for training commencing on June 1st. The group will be accompanied by 92 Chinese translators that will assist in bridging the communication barrier throughout training. "We are excited to gain knowledge about auctions from U.S. experts. Our recent U.S. buying efforts have not been very successful because we lacked understanding of the auction process. We believe that this is the first of many groups that we will send to the U.S. for this training", said Huang Bo, Director of Zhongtou Development.

About The Trainer
The Certified Auction Specialist® (CAS) designation program, is available exclusively through The Institute For Auction Learning, and is taught by Ms. Gloria LYNN Gardner, past Chair of the Auction Forum for the National Association of Realtors and Chief Auctioneer for Gramercy Auctions, a leading provider of auction solutions to REO sellers nationwide. Gardner is recognized as the leading "pro-broker" auctioneer after co-founding the Auction Department for the largest independently owned real estate firm in the nation in 1994 and she is considered to be the leader in bridging the gap between traditional real estate brokerage and auction. Since 1994 Gardner has conducted over 4300 real estate auction transactions. "We are honored to have been sought out to provide this training service to these real estate buyers and agents from China. It is refreshing to see a direct approach to this market. While many U.S. real estate professionals are turning a blind eye to auctions, this group understands that knowledge is power and they are determined to become educated on the U.S. processes", said Gardner.

About Institute For Auction Learning
The Institute For Auction Learning was founded in 2005 and is based in Washington, DC but conducts training nationwide. "At the conclusion of this course the attendee will not be trained to conduct the auctions as an auctioneer. Instead, they will have broadened their horizons and are prepared to cooperate with the auction method on the buying and selling side of any real estate transaction," said Gardner. For more information please visit http://www.auctionlearning.net/


About Gramercy Auctions
Gramercy Auctions is a proven leader in delivering rapid and efficient closing to sellers of Real Estate Owned (REO) properties nationwide. Using its proprietary pricing model, the Gramercy Price Index (GPI™) and a unique marketing technology, the Target Marketing Algorithm (TMA™), Gramercy Auctions brings the right bidders to the auction maximizing the final hammer price. In addition, Gramercy’s focus on on-site auctions and superior back-end processing ensures greater certainty of closings in a faster time frame, improving value creation. For more information please visit www.gramercyauctions.com

SOURCE:
The Institute for Auction Learning
http://www.auctionlearning.net/


CONTACT:
The Institute for Auction Learning
1101 Pennsylvania Ave., NW
Washington, DC 20036
877 668 6131

Perception Becomes the Reality

I haven't spoken to an American in the past 6 months who can give a logical explanation about our current economic situation or a rational answer for the future moving forward. The biggest problem with this "dilemma" is that the fear of the unknown has put us all in a state of paralysis while the paralysis is creating the economic lock down. This "catch 22" will be read about in history books by our children and our grandchildren. A time in history where America hit a tipping point. A time when life changed overnight and suddenly our wallets are threatened and our toys are in jeopardy....almost overnight...a time of uncertainty that feeds on fear. The $64 question is...do we keep our heads buried in the sand or do we boldly confront our circumstances and make a difference moving forward that we can all be proud of?

"The pot calling the kettle black"

There has been enough finger pointing to last 3 generations. Democrats blaming Republicans...Presidents blaming Presidents...banks blaming real estate agents...real estate agents blaming appraisers. Now it's all the fault of Wall Street and ponsi schemes. I'm sure that we've heard every possible variation of blame imaginable . But we sure haven't blamed ourselves. In reality, it was through our insatiable desire to have bigger and better...more and more...that we threw caution to the wind and we pushed the economy right over the top all by ourselves. After all, where there is no demand there is no supply.

"I told you so"

We celebrated when friends and relatives were able to purchase real estate with no money down and no income to support the debt. Sadly, now that many of these same people are losing their homes, instead of jumping in with help and support, we don't miss an opportunity to let them know that we "knew they shouldn't have purchased the property" in the first place. Surely you aren't really saying that you knew that they would ultimately end up in bankruptcy and foreclosure but you let them go ahead anyway without saying a word?

"Perception Becomes The Reality"

SO here you are...reading a real estate blog and wondering what in the world any of this has to do with real estate. I believe that it has everything to do with real estate. There are still a lot more people out there that are solid financially than there are who aren't and there are millions of properties out there to be purchased. The market simply needs to reset itself and WE need to get back to business. The value WAS...the value IS...and the value ALWAYS will be determined by the market itself. Auctioneers have been proving that since before there were real estate licenses and we continue to bring ready, willing and able buyers today in spite of the current challenges. The real estate agents that have taken a long hard look at our economy and have been willing to adapt to the circumstances are very, very busy selling short-sale properties making incomes that exceed what they make when the market was "hot".

"When the going gets tough...the tough get going"

We need to get back down to basics. We need to roll up our sleeves and get back to the business of selling real estate. Einstein said that the definition of insanity is continuing to do the same thing over and over and expecting a different result. We need different results. This is a new world in real estate and it's time to get with the program. Auctions are thriving. Short sales are thriving. Are you thriving? Remember...when the going gets tough the tough get going.

Going...going...GONE

How To Select The "Right" Auctioneer for your Real Estate Business

As we continue to fight our way through this struggling economy more and more Realtors are reaching out for marketing options that will assist them in accelerating the sale process for their clients. As a result, we are frequently asked "how do I go about selecting an auctioneer"? This process should not be difficult for you, however there are a few key factors to seriously consider as you search for the "right" auctioneer for your business. Here are the top 12 considerations:

1. Chemistry. It is critical that you identify an auction professional that you feel comfortable working with AND that you trust completely. You will be embarking on unknown territory and you will be following the lead of your auction professional. TRUST is key to your success.
2. Expertise . You need to identify an auctioneer that has the EXPERTISE necessary to sell your listings. Although you may know someone who is very successful selling antiques, cars, household items, etc., don't expect them to naturally have what it takes to succeed in selling your real estate. Extensive real estate expertise is a must.
3. Experience. Don't be a guinea pig. Your clients won't be happy if they become your latest experiment. You need to identify an auction expert who has LOTS of EXPERIENCE. Someone fresh out of auction school is NOT prepared to sell your listings. It takes time to become a good auctioneer and it isn't as easy as it looks. Find a proven player.
4. Professionalism. Contrary to popular belief all auctioneers are not "cowboys". When in Rome...do as the Romans. If you live in Texas where cowboy boots and ten gallon hats are customary then that will work for you in your market. If not...find someone who fits your professional "profile". Your auctioneer will be a reflection of you.
5. Reputation. Don't believe everything you hear. Ask for references and FOLLOW UP with them to get a good idea of how your auctioneer interacts with clients and what the overall feelings are at the end of the day. You can't afford not to do your homework.
6. Credentials. Most states require auctioneers to hold a professional license. Inquire about licensing and confirm that your auctioneer is in good standing within your state. Most of the "top notch" auctioneers will also hold the CAI designation which is an advanced educational program offered through the National Auctioneers Association.
7. Availability. In order for this service to be blended into your core business, you will need to identify an auctioneer that will be reasonably available to you throughout the auction marketing process. Auctions are new to you and the process can be very hectic. You WILL have questions and need guidance. If your auctioneer isn't reasonably available to you then you might become unnecessarily uneasy about the process. Define your working relationship BEFORE you move forward.
8. Negotiate. I am amazed at how many real estate agents believe that they aren't compensated if their listing is taken over by an auctioneer. Although MANY auction firms will require that you delete your listing (for them to take over) and expect you accept a referral on the sale IT DOESN'T HAVE TO BE THAT WAY. I have managed over 4000 auction transactions and I have NEVER removed the agent or negated their listing fees. Look at your options and negotiate the transaction! It should be a win/win for all.
9. Style. Although the auctioneer will be in control of the auction promotion, it is a good idea to review some of their marketing materials before you make your decision. Keep in mind that auction promotion is VERY BOLD by design but it doesn't have to be unprofessional.
10. Timing . You will want to specifically address timing relative to your auction needs. A typical well-managed auction marketing program will take approximately 5-6 weeks from the time your seller signs up for the auction to the time you are at the block. Any auction campaign that is considerably shorter or much longer is reason to question. Make sure that your auction is a priority for the auctioneer and that they have time to accommodate your needs within a reasonable time frame (especially in this market).
11. Branding . Auctions are a great “added service” for your portfolio and although you will be working with a proven player, do not lose your identity as part of the process! If you are going to add this option into your business then you should be gaining recognition for doing so. Insist that your name and broker information is included in all advertising and ask that you be able to keep your sign in the yard when they add theirs.
12. Closing Process . It isn’t safe to assume anything. Determine who will escrow the deposits, who will be closing the transaction, what Title Company will be used, who will be tracking the transaction to closing, how forfeited deposits will be distributed, etc. These details need to be discussed before your first transaction. There could be great differences in the way the transactions are managed by your auctioneer and you need to know before you’re headed to closing.

Adding auction services to your core real estate business is a must in this market. To ignore this option is to walk away from business. Don't waste any more time contemplating the possibilities. Use this checklist as a guideline and get to work! Time is money in this market.

If we can be of assistance to you throughout the process feel free to email your questions to info@auctionlearning.net. Good luck!

History Always Repeats Itself

Washington, DC, Apr 24, 2008

Land acquisition deals mimicked the madness of the Gold Rush as builders and developers sought to keep up with the demand for new homes gobbling up and competing for land throughout the early 2000's. Unfortunately, with a real estate market that appeared to soften overnight, many builders are now left holding new homes and buildable lots with little hope of saturation over the next several years.

Mitchell & Best Builders, a Maryland based, award winning 2nd generation builder, was ecstatic to have acquired a 849 acre farm in western Loudoun County, VA at a time when new homes were selling much faster than they could be built. Unfortunately, the rezoning and subdivision process outlasted the market and they are now left with over 100 single family lots with buyers few and far between. Mitchell & Best has scheduled an auction event to generate interest and produce sales quickly. Just days into the auction campaign buyers are submitting contracts with the hope of buying their lot long before the auction event. A testimony to the power of aggressive marketing campaigns in a sluggish market and a sign that there really are ready, willing and able buyers out there.

"Many people are under the impression that auctions are a "give away" strategy. What they don't realize is that the market determines the price regardless of the sales method used to get there", said Gloria LYNN Gardner, Corporate Auctioneer for HomeLand Auctions, the firm hired to conduct the sale for Mitchell & Best. "We speed up the sale process and create a competitive environment so that sellers have the opportunity to see the market speak for itself. At the end of the day the decision is up to the seller as to whether they accept what the market has to say or not. We don't determine the market, we just bring it to them and make it speak", said Gardner.

"Auction is all about the marketing. We do for real estate what a 4th of July sale does for a retailer. We set the date and time, we set the terms, we tease the consumer away from the competition, we advertise it like crazy and we sell to the masses. The auction puts a different spin on the transaction allowing the buyers to feel much more in control of the process. It's a win/win for all and precisely what the doctor ordered for this market", said Gardner.

Gardner is considered to be one of the leading auction experts in the broker/builder world Prior to launching HomeLand Auctions to accommodate national auction needs, Gardner co-founded the Auction Department for Long & Foster Real Estate, a mega broker with over 200 offices and 20,000 agents. Long & Foster was recognized as leader in the real estate auction world just a few short years after rolling out this innovative service throughout their region in 1994. Though there was little interest in auction throughout the real estate boom, Gardner is working with Long & Foster again to assist in the re-introduction of auction to their agents, clients and customers and Gardner has a long list of brokers ready to follow suit.

The Auction Department for Long & Foster was strategically positioned within their New Homes Sales Division in order for them to offer builders accelerated marketing campaigns to assist in moving inventory throughout the last slow real estate market. Together the team has conducted very successful auction events for Ryland Homes, Equity Homes, Morrison Homes, Washington Homes, M/I Homes and many more. Builders are just now re-considering the auction method as a viable tool in the aftermath of a heated market. "History always repeats itself&it was just a matter of time", added Gardner.

SOURCE:
HomeLand Auctions
4/24/2008 20:35 AA ET
www.HomeLandAuctions.us

CONTACT:
HomeLand Auctions Gloria LYNN Gardner/Corporate Auctioneer 877 668 6131 auctioneer@homelandauctions.us