Negotiations, Broker Bryant style.

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

 Today I'm going to write a little bit about negotiating. As a listing Broker it's one of the things I enjoy most about my job. I would be perfectly happy to never do anything but sit at my desk and negotiate deals over the phone.

Negotiating is an acquired skill that anyone can learn. It's one of those things that the more you do it the better you get. I also think everyone has their own way of doing it so I'm just going to try to explain what works for me and then you can tweak it or add to your current way of doing things so that it works for you and your market. And hopefully, you will be able to add some suggestions or techniques, in the comments, that will help me to improve. So here goes:

One of the first things I learned about negotiations is, unless the offer is acceptable, I always suggest to my Sellers that they counter offer. We never out right reject an offer. Actually, this assumes they aren't asking us to do something illegal. I've had offers that were extremely low, that the Sellers wanted to reject, they countered instead and the Buyers came up. So you never know. Sometimes Buyers just have to get the low ball offer out of their system. It's just an offer. Don't let the Sellers take it too personal and get upset over it. Counter it.

When I receive an offer on one of my listings, the very first thing I do is call the REALTOR® and go over the offer with them. I do this for two reasons, one I want to make sure I have the entire offer and I'm not missing an addendum that may have additional terms on it and secondly, I want to open up communications and get friendly with them. Why? Well, it's simple, they may tell me something that my Sellers and I can use while negotiating. You would be surprised at the things I've learned during the course of a conversation.

The next call I make is to the loan officer or mortgage broker. Same strategy, ask questions and listen. You can find out quite a bit of information. But most importantly, I want to make sure the Buyers truly are qualified. You can usually tell if the LO is being truthful with you or not.

Now folks, I have to say, I am not working for the Buyer. I work for the Seller and my goal is to get as much money as I can for my Seller's property. There is nothing wrong with me asking questions. If the Buyer's side chooses to answer something they shouldn't, well that's their problem not mine.

Once I have taken these two steps, and I'm satisfied with the answers, I prepare a Net sheet and transaction outline for my Sellers. Now I'm ready to get with my Sellers and go over the offer. Personally, I prefer to present the offer via Email or by phone. At this point in the negotiations I've just found it easier on the Sellers if I'm not burying them in paperwork right up front. I present the offer by using the Net sheet and transaction out line that I have prepared. I want them to concentrate on the things that are important to them, at this time, not 10 pages of useless disclosures and addendums. We can go over that stuff later.

Now, I like to present a strong counter offer. I usually counsel my Sellers to counter just a few thousand above an acceptable offer. We want the Buyer to be tempted to accept our counter. I also suggest they agree to as many minor things as they can i.e warranties, closing costs contributions, closing dates and the such. If they are within reason, accept them. The reason is we want our price so give the Buyer the small stuff. Plus it's easier to get a counter accepted if you are not changing or denying every little thing the Buyer is asking for. If the Buyer wants closing costs and warranties, we are just reflecting it in the price anyway. So why not leave them in?

Once the Seller has decided on a counter offer I make the changes on the contract and mark where the Buyer needs to initial. Now my next step, may be a little controversial and some may not agree but here goes, my Sellers do NOT sign or initial the counter offer. I Email it to the Buyer's agent with no signatures or initials. "But Broker Bryant, why do you do that?" Well, let me tell you, I want the Buyer to commit before my Seller signs off on it. My Seller ALWAYS signs last. I keep the property on the market and take showings and offers until the Buyer has agreed and signed and initialed everything AND put up his escrow deposit. I want my Sellers to be in a position to negotiate and accept another offer if one should come in that's better. I don't want the Buyer to sit on my Seller's counter for two days while they decide whether or not to accept it or counter it.

OK, this post is getting long, so I'm going to wrap it up. Oh, I did want to mention, NEVER give an ultimatum in negotiations. Don't say, "This is my Seller/Buyers final offer, take it or leave it." It slams the door shut on any further negotiations and it's not true anyway. I can assure you, if my Seller comes back within $500, your Buyer will probably accept it. So just don't give ultimatums. I negotiate until the deal is accepted or dead and buried. Here's a few links to some other posts I have written about negotiations.

OK, that's it for now. So what am I doing wrong?

Broker ‘Big Boy" Bryant serving up Redfin for you enjoyment!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

 

OK, I think you guys are going to like this one. I received this Email last night:

Subject: Redfin Rebate to the Buyer

I saw one of your posts and wanted to get your thoughts about rebating "the selling commission" to the buyer. It seems to me if I am the seller and am charged x% for the listing agent and x% for the buyers agent but y% of the sales price of the home is rebated back to the buyer then I have been falsely charged for the buyers agent's fee? Apparently this is legal in some states but other not? END OF EMAIL. NOT EDITED

Now isn't that interesting? My take on this, is that this consumer (?) has agreed to pay Redfin a certain amount to list his home and has also agreed to offer a co-broke in order to get the home listed in the MLS. Redfin has now also provided the Buyer (double dip) and is rebating part of the selling side commission to the Buyer. The consumer's perspective is he is being taken advantage of. Hmmm……

Is he? Well I guess it depends on how the listing agreement was written. Legally, probably not. But he certainly brings up a good point. Remember perception is everything.

As a listing Broker I rarely work with Buyers. And if I do, I pass the savings on to my Seller, since they are the ones that have hired me. Granted, this may enable my Seller to accept a lower purchase price, which does benefit the Buyer as well BUT it is not a Buyer rebate. The NET to the Seller would look the same, as in the above scenario, BUT the Seller's perception is much different. Hmmm…..

Now as we all know, an ABM (alternative business model) such as Redfin depends on doing volume, they MUST work both sides of the transaction, when the opportunity presents itself, to make their numbers work. So the million dollar questions are:

  • Where does their loyalty lie? 
  •  Are they looking out for the Seller at all? 
  •  Would Redfin EVER counsel a Buyer to walk away from a deal? 
  •  Or are they just paper pushers?

Folks, I do not know the answers to these questions. As I've stated many times, I have NO problem with any ABM. But when I read this Email it really got me thinking. I will be linking this post to the consumer that sent me the Email, so, have at it. What is your opinion? How would you answer his question?

Related posts by Broker Bryant:

Don't forget to enter the "Broker Bryant Image Contest". The deadline is June 15th.

***Broker Bryant image compliments Ines Garcia and Chris Elizabeth Griffith Thanks again Ines and Chris!

All content copyright © 2007 – Broker Bryant Real Estate Ramblings

Blogging. Push me…pull me?

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

 Howdy fellow Rainers. I read an article in this month's Realtor magazine titled "E-mail or Blog?" written by Jim Kimmons. Jim touched down a little about e-mail being "push" marketing and a Blog being "pull" marketing. I certainly agree with this. It was a good article even though he mentioned the Typepad Blogging platform but neglected to mention ActiveRain. Now, since Jim is a member of ActiveRain, I'll cut him a little slack and assume he just forgot about us. Anyway, his conclusion was…why choose? Use both. Well, to that, I totally agree.

Below is an actual E-mail that I sent out earlier today showing how I incorporate my Blogging into my E-mails. I've been doing this for quite a while now and usually the next response I get from the consumer is…"How soon can you place my property on the market?"

This will show how effective Blogging and ActiveRain can be for your business. Blogging IS "pull" marketing but it pays to "push" it out there.

*******************************************

Hi Mr. NeedMeBad,

Thank you for your email received. I just pulled up the details on your house located at 123 MustSell Dr. and it certainly looks like it's priced OK. As you may know, the market in Poinciana is very difficult right now but I'm still surprised it hasn't sold at that price. The listing looks good. I can't see any thing that your current REALTOR(R) is doing wrong. However, some times a change can be a good thing. I have been selling houses in Poinciana exclusively for 13 years and personally do not work with Buyers. But I do have an agent that works for me that handles all of our Buyers. I do this on purpose. My job is to negotiate the best deal for you, not to try and appease Buyers. I keep myself separated from that side of the transaction. It helps me avoid having a conflict in interest. (He asked me if I work with Buyers)

Below are several links that will give you a good idea of how I conduct my business.

Please feel free to contact me and I will be happy to look at the property and see what we need to do to get it sold.

Poinciana market reports:

Additional information:

Also, I have attached a copy of my print ad for the free home guides. I hope this information will help you with your decision. I will look forward to hearing back from you.

*******************************************************************************************

Now folks, this is a pretty basic and simple E-mail. I do that on purpose because I want him to check out the links. All of his questions will be answered in the links that I have provided. No need to expand upon my services in the Email. That's the beauty of having a Blog. If you are actively writing about Real Estate then you already have a complete library of marketing materials ready to use. And the best thing is you wrote it! That makes you the expert. No need to link to anything but your own stuff. So if you're not already, give it a try. I can assure you it works.

So that's it for "Broker Bryant's Real Estate Ramblings" today. How did I do?

Image used with permission of Mount Lehman Llamas. Thanks Brian!

All content copyright © 2007 – Broker Bryant Real Estate Ramblings

The ebb and flow of a real estate market.

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

OK, today I want to take a little trip down memory lane. As most of you know I have been selling real estate in Poinciana Fl since 1994. I have seen this community grow from 7,000 people to almost 70,000 today. Poinciana has been the 2nd fastest growing PUD (planned unit development) in the country for many years. The oldest houses in Poinciana were built in 1973. So it took 20 years to get up to 7,000 people and then in 13 years we added more than 60,000 with most of the growth coming in the last five years.

I've come up with a little visual to show you how values in Poinciana have been affected over the last 17 years. I'm going to use a house that I have listed and sold 3 times since 1998 and had managed prior to that. This is a typical Poinciana house built in 1990 with 3 bedrooms, 2 baths, swimming pool and 1186 sq ft of living space. Here it is:

 

 

 

 

 

 

              1998                                                            2002                                                               2005

This house was bought new in 1990 for $86,400 by a man from England. I started managing it in 1994 and used to rent it out by the week for $450. Not much happened in Poinciana from 1973 to 1998 and values actually declined. I put this house on the market in 1998 and sold it for $79,900. After 8 years of ownership the value had decreased by 8%.

Now move forward to September 2002 when I sold it again for 102,000. From 1998 to 2002 Poinciana had experienced about a twofold increase in population and had about 17,000 people. This house's value had appreciated by 28% during this 4 year period. Things were looking up.

For the next couple of years values were slowly starting to increase but were still only averaging about 5% a year. Then we had three direct hits from Hurricanes during the summer of 2004. Poinciana was devastated. Surprisingly by the end of 2004 Poinciana started to recover and the real estate boom was upon us. This little house was gutted after the storms and rebuilt from the studs up.

In June of 2005 I placed it on the market again and sold in one week for $165,000. The boom was in full affect and values were increasing rapidly. The Seller experienced a 38% increase during his 21 months of ownership!

The second half of 2005 was amazing!! By the end of the year this house had a value of $215,000. From late 2004 to late 2005 values doubled in Poinciana and our population tripled. From 2002 to early 2006 we now had a population of over 60,000 people up from less than 20,000 in 2002!

Now fast forward to today. The last two sales(this month), of similar homes, were for $158,000 and $145,000! This is down from a high of about $215,000. That's a decrease of about 30% with most of that coming in the last 6 months. The fall out of the sub prime market had a major affect on values in Poinciana Fl. Inventory is on the rise and values are declining rapidly. My prediction is we are in for a rough ride for a couple of years. I think 2008 will be better than 2007 but I don't see a substantial positive change until maybe late 2009. But of course this is just an educated guess based on years of experience.

Poinciana's growth was due to affordability. It is Not a destination market. People move to Poinciana because they can't afford to live in Kissimmee or Orlando. Now they can. Our prices need to drop another 15% to 20% in order to be a value driven market. It's also an investor driven market. Once values come down, to where rentals make sense, the investors will be back. In my opinion, that's the first thing that will happen. Investors will swoop in as they did in 2005 and 2006 because the values make sense. Until that happens we are dead in the water.

Now I don't have a crystal ball, so of course, all of this is speculation on my part. So we'll see. In the meantime, I have some leads to sell you! So what's happening in your market?

All content copyright © 2007 – Broker Bryant Real Estate Ramblings

HELP!!!! I’m a newbie and I can’t compete!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

 On my last post, “Listing to sell NOT signing to fail”, Michael Eisenberg asked, “How does someone with little or no track record get the listing appointments?” Michael, that is a very good question so let me see if I can help answer it with this post. In fact, let me take it a step further and also answer, “Being a new REALTOR®, with no track record, how can I compete and convince folks to list with me?”

Question #1: “How does someone with little or no track record get the listing appointments?”

I think this is actually the easier question to answer. First, If you are not already, you need to be working the expired listings market. These are the very best leads you can get. These Sellers have already decided to sell and they have already decided to use a REALTOR®. It doesn’t get any better than that. The reason their property didn’t sell is because it was overpriced. So, if you can get them to call you, you will have a good chance of getting the appointment.

It’s important to remember to not try and sell folks over the phone. When someone calls you, your only goal is to make an appointment. You must get in front of them. When anyone calls me to see about listing their property the very first thing I do is get their name, the address of the property and then I tell them I will call them back in a few minutes. I simply say, “Let me pull your property details up and I will call you back shortly so we can discuss the way forward.” I do not try to pitch them at this time. I get the info I need then I hang up.

The reason I do this is I want to be able to talk to them about their specific property when I call back. It only takes a few minutes to see if they have been on the market before or are currently listed, when they bought it, how much they paid etc…Once I have this info I call them back. Usually within 15 minutes or so.

When I call back, I just ask them very basic questions about why they are selling and what’s their time frame, then I go for the appointment. “How about I stop by tomorrow at 11:00?” Make the appointment. Do not answer questions about commission structures or how much you think their house is worth. Simply say, “We will go over all of that once I have had a chance to see your house. I would be doing you a disservice by trying to answer these questions without seeing your house first. But, when I come over tomorrow, I will be loaded with information and I will be able to give you my honest opinion on what it will take to get your house sold. And, if all is agreeable, I will have you up and running immediately. I‘ll see you tomorrow at 11:00. I’m looking forward to working with you.” So far, you being new and having no track record is a no issue. Short sweet, to the point and make the appointment.

OK question #2: “Being a new REALTOR®, with no track record, how can I compete and convince folks to list with me?”

This is a little more difficult but can be achieved. First, you cannot fake experience and market knowledge. Experience will come with time. Market knowledge can be learned. Pick an area. Maybe just a few subdivisions to concentrate on. Then, make it your job to learn them. Preview every home on the market. Drive by the ones that have recently sold. Study the MLS everyday. Start soliciting all the expired listings and all the FSBOs in these areas. Visit yard sales. Drive around on the weekends and talk to folks when they are outside working in their yards. Make your face a fixture in the communities you want to work.

Tag along with more experienced agents when they have listing appointments. Successful people love to help others succeed. Just ask them. Pull up some random addresses in your area and practice doing a Market Analysis on them. Have an experienced agent critique them. All of these things will help you gain market knowledge.

OK, so let’s assume you have an appointment in your market and you are comfortable with your analysis. One of the biggest fears newbies have is that lingering thought “What do I say when they ask me how long I have been a REALTOR® or how many houses I have sold?” Folks, this thought process is inevitable and will show in your presentation. You will be so concerned about them asking you this that it will throw your concentration off. The only solution is to take control of the situation and get this out in the open before they ask. Once it’s out there you can concentrate on the task at hand and that’s getting the listing. So this is what you do:

When they open the door say, “Hi there, I’m Bryant. I really appreciate you folks having me over today. I’m fairly new to this but I’m really excited about working with you to get your house sold. It looks like you have a great place. Let me set my stuff down at the table and you can give me the tour. Then we’ll sit down and together we can go over a strategy to get your house sold.” That’s it. You said it, it’s in the open and now you can move forward. If you say this with a big smile on your face and talk with confidence it will not come up again. Now you are ready to get to work.

I guess I’m just not capable of writing a short post about this stuff. Taking listings is what I do. I’m an expert at it and I could write or talk about it for days. So let me try to wrap this up here.

OK, let them give you the tour. Then take them back to the dining room table and just talk with them. Your analysis is not going anywhere, leave it alone. You only goal at this time is too bond with them. Ask them questions and then sit back and let them talk. People hire people they like. This is the most important part of your “presentation” and it doesn’t require experience or market knowledge. It requires genuine care and concern. You are there to find out their needs and come up with a plan to help them achieve them. You are building trust.

Once they are comfortable with you, then and only then are you ready to talk business. Now folks, at this point, I’m going to link to some other posts I have written that will help you. Read through them and see if they answer your questions. If not? Well, leave your question in the comments and I will write another post. How did I do?

>>>>>>>Ten posts on listing presentations by Broker Bryant.

Graphic compliments of Danny Smith. Where’s Danny???

All content copyright © 2007 – Broker Bryant Real Estate Ramblings

You want my buyer to do what?

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Hi folks. I don't normally post two days in a row but this one's too good to not share.

This morning, I took my buyer back to the builder to do the contract for her purchase. This particular builder requires that buyers are pre-qualified through their preferred Lender who is on site. You don't have to close with them but you do have to qualify with them. They do this so they can remove the financing contingency from the contract.

Anyway, while our sales rep was preparing the contract my buyer and I had to go see the "mortgage momma" to get my buyer prequalified. Now folks, my buyer is a young lady and this is her first home purchase. She lives at home and over the last two years has had three different jobs. Two in her field of journalism and most currently working for her father in the family business as a marketing rep.

I guess the "mortgage momma" decided that "getting her through" would be a little difficult since my buyer hasn‘t had the same job for two years. Even though my buyer's credit scores are over 700 and she has a pretty good income. The "mortgage momma" did mention an FHA loan but thought it would be easier to just go conventional.

She then proceeded to "coach" my buyer by telling her to say she has worked for her father for two years. The kicker was to make sure dad confirmed it when they did the VOE (verification of employment) and to make sure he didn't mention that they were related. Then of course she gave us the cursory wink!!

In a nutshell, she was "coaching" my buyer on how to lie and commit mortgage fraud!!! And she did this with me sitting right there in front of her. I'm not sure she realized I was a Real Estate Broker, or she just didn't care and assumed I would just agree with her. After all, "Everyone does it".

Well, she was dead wrong! Broker Bryant don't play that crap! My buyer looked at me like "Why is she asking me to lie?" and I looked at the "mortgage momma" and told her that my buyer will not be committing mortgage fraud just to make her job easier. For some reason she seemed a little shocked!

We left "mortgage momma" and decided we would go a different way with the financing. If fraud is her normal way of doing business then doing business with her is out of the question.

I guess I need to write a letter to KB Homes on Monday to let them know their Countrywide "mortgage momma" is a disgrace to our profession. What's wrong with people? What do you think?

DISCLAIMER: I have no problem with KB Homes or Countrywide. BUT I have a serious problem with "mortgage momma".

EDIT: I have change the term "loan lady" to "mortgage momma". It seems there is a real Loan Lady in South Florida and she has politely asked me to make the change. This post in no way refers to the Loan Lady in Sarasota. 

All content copyright © 2007 – Broker Bryant Real Estate Ramblings

A. House, in Poinciana FL, tells his story!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

 Hi humans. My name is A. House and I'm five years old. I know that doesn't sound old to you but for A. House in Poinciana Fl that's pretty old. Some nice folks gave birth to me back in January of 2002. They liked me a lot. They made me look real purdy too. I was dressed up in bright red carpet and my skin inside and out was bright pink. I guess they figured since my street name was Flamingo they would make me look like a bird. I didn't mind too much since they took excellent care of me.

I knew they loved me. They paid $149,500 for me in January of 2002 which was a lot of money for A. House, my size, back then. I remember something about them not needing any money to give birth to me. So, maybe some of that money was closing costs but I'm not sure.

Everything was going well and then all of a sudden in late 2003 they quit taking care of me. I thought they didn't love me anymore. They quit making payments and started letting my grass grow and everything. I was neglected.

Then in May of 2004 this nice lady come over and stuck a sign in my yard and was trying to get people to give my humans $129,900 for me. I guess no one wanted me because 30 days later the sign was gone and my humans moved out. I was left here all by myself. It sucked.

I was all alone for more than two years. Finally, some guy in a three piece suit adopted me. But he didn't care about me, he never even looked at me, just put me on the books and renamed me REO. My name is A. House not REO!

Here I was, all alone again, until February 2007 when this big guy came over and stuck another sign in my yard. I don't know who he was but he was sooooo good looking. He was nice too. He had all these people come over and they gave me a bath, cut my grass and made me look purdy again. I was so happy. I thought he was going to move in and take care of me but he was just trying to find me some humans to adopt me for $185,000.

Not only was the big guy sooooo good looking but he was an excellent adoption Broker too! In fact, only 19 days later, some humans came in and decided they wanted me! I was so excited! I was so tired of being alone and just wanted someone to come stay with me. It's not good for A. House to be alone.

Then a few weeks later something happened. The guy, that was sooooo good looking, came back and put his "For Sale" thingie on his sign again. Something about the sub-prime fall out. The humans, that wanted to adopt me, couldn't do it any more. I was pissed!!!

It was very frustrating. Humans kept coming over and walking all over me but nobody wanted me. I felt so inadequate and started getting a real bad inferiority complex. I think the sooooo good looking guy was getting frustrated too. He changed my price to $165,000.

Then in August, another human came over and walked all over me. He had this funny looking thing in his hand and it looked like he was punching in numbers or something. I don't know if he loved me or not but he told the sooooo good looking guy that he would adopt me for $150,000. I guess the sooooo good looking guy was tired of coming over every week and checking up on me because he said, "deal!"

Three weeks later I had a new human! He was cool too. His name was Mr. Flipper. He came in and pulled up all my bright red carpet and replaced it with all this tile stuff. It was a little cold but it was real shiny!! I was lookin' good! I was so excited. I couldn't wait for this human to move in and take care of me. No more loneliness for me!

Well, was I ever wrong, Mr. Flipper, sent another lady over and she stuck a sign in my yard this morning. At least Mr. Flipper thinks I'm worth a lot of money. He now wants $225,000 for someone to adopt me! While I'm flattered, I fear I will be lonely for a long time to come. He ain't never goin' to get someone to pay $225,000 to adopt me. All the other Houses around me only get $150,000. Why is he doing this to me? I'm A. House, I'm not a retirement fund!

Maybe this time they'll change HIS name……to Mr. Flopper! You humans suck!

Copyright © 2007 Broker Bryant Real Estate Ramblings | All Rights Reserved

ActiveRain Mortgage/Housing Crisis Resource.

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

 Hey guys. I took a little time today to put together this resource for you. In case you hadn't noticed there were some excellent posts written over the last few days relating to the mortgage crisis. I've placed all the links in one place so I can send it to my Sellers. This is good stuff.

Ten  Nine Writers with close to 200 years and 1,000s of closed transactions in experience writing their opinions on the mortgage crisis. These writers are Real Estate Brokers, Mortgage Experts, Fraud Experts and Title Agents who work everyday in the trenches. 

This compilation truly shows the power of ActiveRain. Use it.

THE ACTIVERAIN MORTGAGE/HOUSING CRISIS RESOURCE

Ed Rybczynski-Mortgage Fraud Speaker and Expert located in MD

Lenn Harley-Broker/Owner in VA and MD

Broker Bryant-Broker/Owner in Central FL.

Carole Cohen-REALTOR® in Cleveland OH

Renee Burrows-REALTOR® in Las Vegas NV

Gena Riede-Associate Broker in Sacramento CA

Janet Guilbault-Mortgage Expert in San Francisco CA

Fran Gaspari-Title Agent with over 35 years experience-Limerick PA

Kaye Thomas-REALTOR® with 28 years experience in Manhattan Beach CA.

Brian Brady-Mortgage Expert and hard money Lender-San Diego CA

Lola Audo-Broker/Owner located in Grand Rapids MI

Gabriel Silverstein-Broker/Owner in Chicago IL with over $1 Billion in Real Estate Experience.

Mike Jones-Mortgage Expert located in Tucson AZ

Bob Mitchell-Owner/Broker and Mortgage Broker-Saint Louis MO

Bill Roberts-Real Estate Broker-San Diego CA

By the way, if I missed any posts please place a link in the comments section and I'll add it if it's suitable.

Copyright © 2007 Broker Bryant Real Estate Ramblings | All Rights Reserved

***Edited: I had to remove one of the post from Ed Rybczynski and the post from Brian Brady. I didn't realize they were for "members only". This post is public so they had to go. Sorry about that.

***2nd Edit:: Ed made his post public so I added it back in. I also added a new post from Lenn. I will contune to add to this list as posts come up.

Sovereign Wealth Funds. Who’s your "daddy".

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Ok folks, I'm writing today to get some input on Sovereign Wealth Funds(SWFs). I read an article the other day in Time magazine mentioning the fact that foreign countries, specifically, China, Indonesia, Saudi Arabia, Abu Dhabi, Singapore, Norway and a few others are investing large amounts of money in our financial markets.

From what I understand, these SWFs are controlled by the governments and have been aggressively purchasing shares in Citi Group, Merrill Lynch, Morgan Stanley, Barclays and Bear Stearns to name a few.

It seems the interest in these markets has skyrocketed since the sub-prime fall out in April of this year. These companies looking for capital and liquidity are more than anxious to welcome these foreign investors and their money.

Here is a little printout I found giving you an idea of the investments that have been made.

Wealth fund stakes (percentage of ownership)

*  Barclays – China Development Bank 3.1%; Temasek 2.1%

*  Bear Stearns – * Citic Secs (China) $1billion share-swap

*  Citigroup – Abu Dhabi Investment Authority 4.9%

*  Merrill Lynch* – Temasek(Singapore) 9.9%

*  Morgan Stanley – China Investment Corp 9.9%

*  UBS – Government of Singapore Investment Corp 9%; Saudi Royal Family just under 2%

Now folks, I may be a little slow but you'll notice that all of these countries, with the exception of Norway, are NOT democracies. They are in fact communists, autocracies and dictatorships.

I'm not talking millions of dollars here but billions of dollars! The total value of these SWFs at this time is roughly 2.1 TRILLION dollars and is expected to be as high as 10 TRILLION over the next few years. That's almost 12% of global GDP(Gross domestic product)!! That my friends is a ton of money. Money that these countries are holding as surpluses mostly from goods and oil sold to us.

We are selling our country piece by piece every time we buy a piece of crap from China. Who then turns around and invests this money into our financial markets. What do you think about that?

I'll tell you what I think. I think we are going to be in deep shit if some kind of control is not put into place. As it stands, transparency does not exist in this SWF market. Except for Norway, we have no idea where this money is coming from and who is controlling it.

What would happen, if in the near future, China owns a 25% stake in Citi Group and then just decided to unload it? Unfortunately, they can afford to do that. Could they have the power to manipulate our financial markets? I think so.

I am by no means an expert on this stuff. These are just my thoughts based on my research over the last few days.

Below is a link if you would like to do some studying and form your own opinion. I hope you do. I also hope you come back and tell me what I am missing here. Your opinions and thoughts are appreciated. Someone please tell me I am wrong. Maybe I'm reading too much into this. Or maybe I'm not. What say you?

SOVEREIGN WEALTH FUNDS

Copyright © 2007 Broker Bryant Real Estate Ramblings | All Rights Reserved

Broker Bryant…..you’re FIRED! Or not.

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Call Broker Bryant today!!! 407-873-2747

 

Recently, I re-listed one of my listings that had expired about six weeks ago. At the time it expired the hubby decided they need a new REALTOR® so did not re-list with me. I HATE it when that happens!!!

I had the property on the market for 5 months and had quite a bit of activity but being on the high side of the market, for Poinciana, we never received any offers. Got real close but nothing materialized.

Anyway, the Sellers came down before Christmas and decided to try another REALTOR® that was a friend of a friend of a friend. We all know how that goes.

I’m very close with my Sellers and talk with them all the time. Mrs. Seller did not want to switch but Mr. Seller just felt he needed to try something new. No biggie. It happens in a down market. Folks get anxious. I completely understood and wished them well.

Being the good little Broker that I am, I decided to treat these folks as if they were still my Sellers until such time that I saw the listing pop up as a new listing in the MLS. So every week, just as I had done when the listing was mine, I called the Sellers to check in on them.

Three weeks went by and the property still had not shown up in the MLS yet. Needless to say MY Sellers were very surprised to hear this since they had signed a listing agreement with their new REALTOR® when they were down for Christmas.

So, they figured they had best track down their new REALTOR® to see what was going on. It seems their new REALTOR® didn’t work over the Holidays and hadn’t had time yet to activate his new listing. Too busy opening presents I guess. Either that or his shift at Wal-Mart was keeping him busy. After all, it WAS the Holidays! Well OK then!!! You’re FIRED!!!

Do you guys like my new (old) listing? I LOVE it when that happens!! Never give up.

Poinciana Real Estate Poinciana Real Estate Poinciana Real Estate Agent

Copyright © 2007 Broker Bryant’s Real Estate Ramblings| All Rights Reserved

About us

I am a licensed real estate Broker in the state of Florida. My opinions on real estate have been formed from my experiences and 15 years of working in the business. My opinions are in line with Florida Real Estate laws and the REALTOR(R) Code of Ethics. Your State’s laws may differ. So do your own homework before implementing any of my business practices into your business.