13 Ways to Get the Earnest Money Back

1.  Financing Requirements: Your buyer can terminate the contract and get their earnest money back if the property doesn’t satisfy the lenders’ underwriting requirements.

2.  Under Title Policy and Survey:  Where are those Commitment and Exception Documents that were to be sent to the Buyer?  If they are not delivered within the time required, buyer may terminate and the earnest money will be refunded to the buyer.

3.  Under Title Policy and Survey: Back to the Commitment and Exception Documents… Seller is not obligated to incur any expense; Seller shall cure the timely objections of Buyer or any third party lender within 15 days after Seller receives the objections and the Closing Date will be extended as necessary.   If the objections are not cured within the 15 days,  the contract will terminate and the earnest money will be refunded to Buyer, unless he waives the objections.

4.  Statutory Tax Districts – under Title Notices:  Don’t fly through these notices, because you need to know about this one.  If the property is situated in a utility or other statutorily created district providing water, sewer, drainage, or flood control facilities and services, Chapter 49 of the Texas Water Code requires that the seller must deliver and buyer must sign the statutory notice, prior to final execution of the contract.  If seller does not provide the notice in a timely manner, buyer  shall be entitled to terminate the contract.  This right of termination is not stated in the TREC Contract form.

5-6.  Numbers 5 and 6 pertain to the Seller’s Disclosure Notice:  So what if the buyer does not receive the Seller’s Disclosure within a certain amount of time after the contract is executed?  First, if the buyer does not receive the Notice,  Buyer may terminate the contract at any time prior to closing and the earnest money will be refunded.  Second, if the Notice is delivered, Buyer may terminate the contract for any reason within 7 days after receiving the Notice or prior to closing, whichever first occurs, and the earnest money will be refunded to Buyer.

7-8.  Under Property Condition: two more outs for the buyer.  First, if the parties do not agree to pay for the lender required repairs or treatments, the contract will terminate and the earnest money is refunded to the Buyer.  Second, if the cost of the lender required repairs and treatments exceeds 5% of the Sales Price, Buyer may terminate this contract and the earnest money will be refunded to the Buyer.

9.  Completion of Repairs and Treatments:  The Seller can’t seem to complete any of the agreed repairs and treatments prior to the Closing Date.  So what does the Buyer do?   Buyer may exercise remedies under Paragraph 15 or extend the Closing Date up to 15 days.    Paragraph 15 says that if Seller is in default, Buyer may (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest money.

10.  Casualty Loss:  After the effective date of the contract, if any part of the property is damaged or destroyed, Seller shall restore the property to its previous condition by the closing date.  If Seller fails to do so, Buyer may (a) terminate this contract and the earnest money will be refunded to Buyer, (b) extend the time for performance up to 15 days and extend the closing, or (c) accept the property in its damaged condition with an assignment of insurance proceeds and receive credit from Seller at closing in the amount of the deductible under the insurance policy.

11.  Default: if  Seller (or Buyer) fail to comply with this contract, what happens?  If the Seller fails to comply with the contract, Seller will be in default and Buyer may (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest money, thereby releasing both parties from the contract.

12.  Most agents know the Termination Option:  If the Buyer gives notice of termination within the time prescribed, the Option Fee will not be refunded; however any earnest money will be refunded to Buyer.

13.  Credit: If the Buyer cannot obtain Credit Approval within the agreed amount of days indicated in the Third Party Financing Addendum for Credit Approval, the contract will terminate and the earnest money will be refunded to the Buyer.

In today’s world we are on the go more than ever, so it’s important that we have the right tools by our side to remain efficient while on the go.  To this point, I thought I’d provide my three favorite apps for getting work done on the go.

SlyDial

Connect directly to someone’s mobile voicemail, without their phone even ringing!  Imagine this… You’re working on a dozen different transactions and have equally as many calls to return. Instead of being stuck on the phone chatting with just one client, leave each a voicemail with an update and you may just have enough time to enjoy Happy Hour.

MagicPlan

Want to go above and beyond for your home seller?  Spend 30 minutes putting together a floor plan of the home and provide potential buyers with an idea of how the property flows not just what it looks like.  (Free, but upgrades are available.)

DropBox

Dropbox is the easiest way to store, sync, and, share files online. There’s no complicated interface to learn. This is the easiest way to transfer files from your desktop or laptop to your iPad. This free app is must-have for any real estate agent.

We’ll let’s add one more in here just as a bonus!

Evernote

Have you ever written down something your client said, and then later when you need to remember it, the paper or device you wrote it down on isn’t with you.  Evernote fixes this issue with instant syncing across all your devices.  In fact, even if you are without your phone (Scary, right?) you can log in on any computer or a friends phone and get immediate access to your notes.  For even more on this bonus app, check out: The Clean Slate blog

And yes, you read that correctly. As surprising as it may be to some, it turns out that young people today aren’t all obsessed with luxury cars or fancy lifestyles. Most want to be home owners, and they’re willing to do whatever it takes. Means of accomplishing their financial goals include working second jobs, budgeting properly, and even moving back in with their parents.

Well last week, 5 months after the original survey, Better Homes and Gardens has just released the results of a brand new survey to shed more light on what this new breed of home buyer is looking for when searching for their ideal home.

Millennial home buyers differ from previous generations in several major ways. A few of the results from the survey include these quick observations:

• The majority prefer the “essential” home to the luxury home
• Most prefer to handle home improvements themselves and 1/3 prefer a “fixer-upper” to a “move-in” ready house
• Customization and technology are extremely important factors in choosing a home
• Many seek to utilize every room for entertainment space, such as adding a TV to the kitchen instead of other popular amenities such as a second oven

To sum it all up: men and women ages 18-35 are eager about home ownership, with a desire to create a unique and personal environment in the home they choose. A majority prefer to make each customization themselves and look for the opportunity to do so when selecting a home.

More information about the surveys is available in the videos below:

As a world-class brand, we at Better Homes and Gardens® Real Estate strive to be an industry leader by providing our network of over 7500 real estate professionals with the innovative tools necessary to not just succeed, but thrive by gaining the competitive edge within their prospective market.

It is with these thoughts in mind that we announce the launch of our revolutionary marketing and advertising campaign, “Be Better.”  The “Be Better” campaign is designed to offer real estate professionals outside of the network a glimpse into what makes Better Homes and Gardens® Real Estate a better place to call home.

Our Core Values

From inception, the Better Homes and Gardens® Real Estate brand has been built around key policies that define our beliefs and act as guiding principles that steer us toward success.

The core values unique to Better Homes and Gardens® Real Estate are a set of written rules that we each live by daily, whether at work or play.

P.A.I.G.E

• Passion:  To stimulate energy to a higher level of inspiration
• Authenticity: Being actually and precisely what we claim to be
• Innovation:  To be contemporary in our approach to business and life
• Growth:  To have increasing influence
• Excellence:  To consistently exceed expectations

It is those core values that we wished to spotlight throughout the “Be Better” campaign. We decided that there was no better way to highlight the foundational beliefs of the brand than to build a campaign around actual brokers and agents in our network who live and breathe these values each and every day.

As a result, the campaign highlights people who offer a living representation of the exceptional brokers and agents who make our brand the best in the industry.

The “Be Better” Team of Professionals

The campaign features six professionals in our network who represent brokerages of different sizes in different areas of the country.  Each person has their own special story about why they love the brand and why the brand helps them “Be Better” and includes:

• Marsha Rand, CEO & Founder, Better Homes and Gardens Real Estate Rand Realty
• Chris Masiello, President & CEO, Better Homes and Gardens Real Estate Massiello Group
• Miguel Berger, President, Better Homes and Gardens Real Estate Tech Valley
• Andrew Gaydosh, REALTOR®, Associate Partner, Better Homes and Gardens Real Estate Big Hill
• Herman Chan, REALTOR®,  Better Homes and Gardens Real Estate Mason-McDuffie
• Krystal Woy, REALTOR®,  Better Homes and Gardens Real Estate David Winans & Associates

Why You Can “Be Better”

For real estate brokers, agents, and consumers alike, Better Homes and Gardens Real Estate is committed to providing an exceptional real estate experience. We achieve this by offering our franchisees cutting-edge technology, agent recruitment strategies, broker business building systems, and a comprehensive consumer lifestyle value proposition.

As a brand, it is our goal to empower our network with the support, guidance and relevant marketing content they need to succeed in today’s market.

Better Homes and Gardens® Real Estate is:

• A Better Place to Call Home

Better Homes and Gardens Real Estate is a BETTER place for real estate professionals to call home by providing:

• Top notch resources that present greater efficiency. This in turn provides a better overall experience for buyers and sellers.
• Day-in-day-out technical and training support
• The most unique, relevant brand in the industry
• A place where YOU are a part of the future of real estate
• A company with a great sense of community that actively gives back

• Partnered with the Better Homes and Gardens Legacy Brand

Better Homes and Gardens Real Estate is a BETTER place for real estate brokers, agents, and consumers because of the relationship we consistently leverage with Better Homes and Gardens. We do this by:

• Building upon the name reputation of an established, well-known, relevant brand
• Capitalizing on all that a brand that has meaning beyond real estate has to offer
• Gaining the competitive edge by accessing a database of customers through  Pinpoint
• Establishing the BHGRE brand through the power of the highly-trafficked BHG.com site and social media support
• Offer an incomparable house warming gift through the Better Homes and Gardens customized subscription program

Your experience at Better Homes and Gardens Real Estate is a true partnership. Whether you are an independently owned brokerage or currently aligned with another National franchise now is the time to experience a brand that is committed to your future success.

To learn more about the Better Homes and Gardens Real Estate Brand, click here. 

I know everything is bigger here in Texas, but I didn’t quite realize how much bigger. Look at it this way, the video below shows a young man living in NYC in a 78 sq/ft apartment, yet Texas could fit the entire world’s population and provide each human 1,100 square feet to stretch their legs.

Luke Clark Tyler, I commend you.

I’d like to thank Lance Selgo and Unique Exposure Photography for the guest contribution that follows.  UEP is a great company that provides excellent photography and digital services to real estate agents across the DFW Metroplex.

1. How many buyers searched the Internet for a home?

In 2006, 80% of home buyers searched the Internet when looking for a home. Four years later, in 2010, the percentage of home buyers that searched the Internet when looking for a home jumped to 89%. Consumers are purchasing and becoming competent with more technology devices such as laptops, iPods, iPads, tablets and smart phones. These consumers are home buyers, and they want to shop online. Their trend is showing us that they recognize how useful technology is and therefore they are going to be better at noticing professional versus point-and-shoot photos.

With all of the competition on the market, it is important to have professional photos because they are your first, and maybe only impression, to the majority of buyers who are searching for homes on the Internet.

2. How many more clicks do professional photos receive?

Using professional photos can draw more attention to your listings and result in more clicks by potential buyers. Papilios Real Estate Photography examined listings that used their photos and compared the click rates to listings both in the same MLS area and Zip Code. They found listings that utilized professional photos generated an average 139% increase in clicks compared to similar listings.

Although more clicks do not guarantee a sale, it does mean more potential buyers are viewing your listing. Reaching more buyers with your listing betters your chance of finding the right buyer.

3. What percentage of homes sold were sold with photos from a professional camera vs point-and-shoot?

The Wall Street Journal published a graph to show that in the majority of price brackets, more homes sold that had photos from a professional camera compared to photos taken with a point-and-shoot. A professional camera can affect how a buyer looks at a listing and the benefits can be seen starting in the $300K price point. This data was obtained in bulk and therefore the image data was examined to see if a professional camera was utilized to take the photo. No consideration was taken to determine if a professional photographer was controlling the camera. Most likely if the data represented photos taken by a professional photographer, not just an image taken with a professional camera, the benefits would be even greater.

4. What percentage of active listings use professional photos?

Unique Exposure Photography researched local MLS listings for Dallas, TX and Fort Worth, TX and made note of listings utilizing professional photos and listings that were represented with point-and-shoot photos. Overall, Dallas, TX is more progressive and about half of the local listings are marketed with professional photos. Around 32% of Fort Worth, TX listings are marketed with professional photos. As expected, the higher the listing price, the more likely professional photos are utilized.

If you are listing a home in a higher price bracket, you need to use professional photos to match the rest of your competition. If you are listing in a price bracket with little professional photography being used, take advantage and stick out from the competition by embracing professional photography.

5. Make professional photography part of your brand.

As a realtor, you may have to compete with your peers to obtain listings. Professional photography is a great way of improving your marketing portfolio when meeting with potential sellers. If a seller has to choose between a realtor that uses professional photography versus a realtor that uses a point-and-shoot, they are more likely to go with the realtor that uses professional photography. Their home is a big investment and they want it marketed to the best of your ability. Using professional photography, you are solidifying your marketing and showing the seller you mean business.

A lot of real estate business comes from referrals so it is important you give your clients something to talk to their friends and family about. Show your clients you operate professionally and they will bring you more business.

6. Save time and stress, have a professional photographer handle the photos.

Taking photos takes time. As a realtor, you have to drive to the property and go room by room snapping photos. But your work does not stop there. Once you get back to the office you have to pull the images off your camera and place them onto your computer before you can upload them to the MLS. It is easy to get stressed when something goes wrong with your computer and your photos do not download correctly. If you happened to take a blurry photo, you have to decide to discard it or go back to the property to retake the shot. Otherwise you risk posting a photo to the MLS that does not meet your standard of quality and you end up advertising your brand in a poor manner when potential clients view your listing online.

A professional photographer will not only take the photos, but they will re-size them and send them to you over email or through their website. All you need to do is download the image files and upload to the MLS. Interested in a Virtual Tour? Your professional photographer should provide that for you. They also can probably link the Virtual Tour to sites like realtor.com for you.

Some shots also benefit from tools that real estate photographers carry with them, such as poles for extending the height of their camera. There might be a slope in the back yard so when you take a photo of the pool, all you see is landscaping. A professional real estate photographer will utilize a pole to put the camera 12+ feet into the air to capture the best angle possible.

7. A professional real estate photographer might be your best all-around marketing teammate.

Ask your real estate photographer if they can help in other areas of marketing so you get the best exposure possible for your listing. Ask if they can help you print brochures or fliers. Having them design and print marketing materials gives you a unique product to represent your listing, allows you to spend your time on something more important and guarantees the photos you paid for are going to be crystal clear on your print materials. Have you ever used a two-sided brochure where one side is a full 8.5” x 11” photo of the property and the other side has smaller photos plus supporting features? Wow your clients – ask your photographer to design your print material.

It is important sellers know you use a professional photographer. Ask them to give you brochures that showcase their work and show examples of their photos. Include a brochure in your marketing materials and leave it with the buyer so they can see the excellent product you are about to deliver if they choose you as their realtor.

Have an outdated headshot? Ask your professional real estate photographer to take a headshot and represent yourself online with a strong, professional photo.

Think outside the box and take your business to the next level. Ask your photographer if they shoot video. 73% of homeowners say they are more likely to list with a realtor offering to do video, yet only 12% of the real estate industry currently have YouTube accounts. Video is very powerful and can act as the first walk-through for a buyer. If they call to view the property, you know they are serious and interested in the property. Quality buyers matter!

8. How do you choose a professional real estate photographer?

• Examine what they offer. Ask them if they are willing to work with you to create additional marketing materials.
• Develop a relationship. If your photographer is shooting home after home and doesn’t have time to talk, they are more interested in getting paid. Find a photographer that wants to improve your business and is willing to listen to your ideas.
• Look at their portfolio online and make sure you like the work they have posted.
• Ask them what they wear. Your photographer is an extension of you and your business and they will be representing you at the property. If the seller is present, make sure your photographer dresses appropriately.
• Find out if your photographer does anything to help out the community.
• Decide what is more important to you. Cheaper up-front cost with inconsistent results, or a little more money up front with consistent, personal service and ultimately a better valued product.

What to avoid when choosing a professional real estate photographer:

• Inconsistent results. Choosing a big photography company will most likely save you money, but you will not know who is shooting your properties and the results will not be consistent.
• Distorted architectural features. Homes are built with vertical walls. If wall joints and ceiling joints are curved, the photographer is using a wide-angle lens incorrectly. Make sure all horizontal and vertical lines are straight.
• Poor compositions. If the photographer is in a hurry, they will make poor composition choices. Your photo should not be of the back of a sofa. Your photographer should take enough time to examine the space and find the best compositions. Using composition correctly, a photographer can omit items from the home such as a dog kennel.
• Fake “painting” photos. HDR (High Dynamic Range) is a process used to merge multiple photos together to create a great exposure. Although this process can be done correctly, many real estate photographers end up with a product that looks painted and fake. If their photos look painted, cartoon-like or “too good to be true”, you will want to avoid that photographer so buyers are not greeted by a home that does not appear to be like the photos they saw online.

Lance Selgo is a co-owner of Unique Exposure Photography, specializing in Dallas/Fort Worth Real Estate Photography and Video to assist real estate agents in marketing their properties.

Can you believe that in the state of Texas it takes more education to be licensed as a manicurist than it does to become a real estate agent? It takes 3 times the education to cut and paint nails than it does to be granted access to every home in the MLS. Scary.

How do you feel about the perception of Realtors?  Let us know in the comments below.

(Yes, we know manicurist do a lot more than paint nails, but come on…. It’s still scary!)