Friday, February 4, 2011
Wednesday, February 2, 2011
Friday, January 28, 2011
Wednesday, January 26, 2011
Tuesday, January 25, 2011
Friday, January 14, 2011
Friday, December 31, 2010
Tuesday, December 21, 2010
Friday, December 10, 2010
Tuesday, December 7, 2010
Monday, November 29, 2010
Monday, November 22, 2010
Taking the Stress Out of the Home-Buying Process
Taking the Stress Out of the Home-Buying Process
By Paige Tepping
RISMEDIA, November 20, 2010--For many prospective buyers, the thought of going through the home-buying process is often filled with a lot of stress. From finding a qualified real estate agent, to narrowing down your choice of homes and then packing your belongings and moving across town can be an overwhelming process.
OpenSkyRealEstate.com offers the following tips to help you keep your cool as you begin the process of a buying a home.
-Buying a home is one of the biggest financial decisions you will make in your lifetime, and along with the finances come emotions. When you are choosing a real estate agent to work with, be patient and take the time you need to find an agent that you connect with. Finding a highly-skilled agent who fits with your personality is crucial.
-Every home buyer and seller is in a different situation, so it is important that you don’t compare your timeline and decisions to anyone else’s. As you make your way through the home buying process, remember that there is no right time to buy, just as there is no perfect time to sell. If you find a home that fits your needs, don’t let it slip out of your hands by waiting for interest rates to drop lower as you run the chance of losing out on the home of your dreams.
-It is natural to want to get opinions from those you trust before you make your final choice, but too much input will ultimately make the decision process much harder. Remember to focus on what your immediate wants and needs are so that everyone will be happy with the final decision.
-You probably aren’t going to find a home that is 100% perfect, so it is important to make a list that includes your top priorities that you can’t live without. Be sure to stick to the items on your list and let go of the minor things.
-Negotiation is an important part of the real estate buying process, but be sure you don’t take your negotiating too far. Trying to get an extra-low price or refusing to budge on your offer may cost you the home in the end. Successful negotiation depends on give and take, so make sure you are being fair in your requests.
-Don’t get too caught up in all the physical aspects of a home and forget about the more important issues. While the size of the rooms and the layout of the kitchen might not be exactly what you expected, be cognizant of issues such as noise level, location to amenities and other aspects that will have an impact on your day-to-day life.
-Getting approved for a mortgage should be taken care of well before you find a home and make an offer.
-Create a budget before you move into your new home and be sure to include maintenance and repair costs. Even if you buy a new home, there will be extra costs, so it is important to not come up short and let your new home deteriorate.
-After purchasing a home, a little buyer’s remorse is inevitable, but it will pass. Buying a home is a big financial commitment, but it also yields big benefits. If you are feeling remorseful after buying your home, remind yourself why you wanted to buy a home and what made you fall in love with your new property.
-When choosing a home, buy it because you love it. A home’s most important role is to serve as a comfortable, safe place to live, so don’t get bogged down with thinking about your home’s appreciation.
By Paige Tepping
RISMEDIA, November 20, 2010--For many prospective buyers, the thought of going through the home-buying process is often filled with a lot of stress. From finding a qualified real estate agent, to narrowing down your choice of homes and then packing your belongings and moving across town can be an overwhelming process.
OpenSkyRealEstate.com offers the following tips to help you keep your cool as you begin the process of a buying a home.
-Buying a home is one of the biggest financial decisions you will make in your lifetime, and along with the finances come emotions. When you are choosing a real estate agent to work with, be patient and take the time you need to find an agent that you connect with. Finding a highly-skilled agent who fits with your personality is crucial.
-Every home buyer and seller is in a different situation, so it is important that you don’t compare your timeline and decisions to anyone else’s. As you make your way through the home buying process, remember that there is no right time to buy, just as there is no perfect time to sell. If you find a home that fits your needs, don’t let it slip out of your hands by waiting for interest rates to drop lower as you run the chance of losing out on the home of your dreams.
-It is natural to want to get opinions from those you trust before you make your final choice, but too much input will ultimately make the decision process much harder. Remember to focus on what your immediate wants and needs are so that everyone will be happy with the final decision.
-You probably aren’t going to find a home that is 100% perfect, so it is important to make a list that includes your top priorities that you can’t live without. Be sure to stick to the items on your list and let go of the minor things.
-Negotiation is an important part of the real estate buying process, but be sure you don’t take your negotiating too far. Trying to get an extra-low price or refusing to budge on your offer may cost you the home in the end. Successful negotiation depends on give and take, so make sure you are being fair in your requests.
-Don’t get too caught up in all the physical aspects of a home and forget about the more important issues. While the size of the rooms and the layout of the kitchen might not be exactly what you expected, be cognizant of issues such as noise level, location to amenities and other aspects that will have an impact on your day-to-day life.
-Getting approved for a mortgage should be taken care of well before you find a home and make an offer.
-Create a budget before you move into your new home and be sure to include maintenance and repair costs. Even if you buy a new home, there will be extra costs, so it is important to not come up short and let your new home deteriorate.
-After purchasing a home, a little buyer’s remorse is inevitable, but it will pass. Buying a home is a big financial commitment, but it also yields big benefits. If you are feeling remorseful after buying your home, remind yourself why you wanted to buy a home and what made you fall in love with your new property.
-When choosing a home, buy it because you love it. A home’s most important role is to serve as a comfortable, safe place to live, so don’t get bogged down with thinking about your home’s appreciation.
Pay Off Debt Before Saving for Retirement
Pay Off Debt Before Saving for Retirement
By Claudia Buck
RISMEDIA, November 20, 2010--(MCT)--Hard times elicit tough choices. This week, Steven Zeller, a Gold River, Calif.-based investment adviser, tackles a reader's question on credit card debt and mortgage loans.
QUESTION: I've entered into a hardship payment program with the six banks that issued my 10 credit cards. I'm paying off $80,000 at an overall interest rate of 6 percent (down from an average of 20 percent). Due to the reduced payments, I now have $3,000 in monthly surplus income to either invest with, or pay down the credit cards.
I also have an upside-down mortgage on a rental house owned as income property. The bank seems (unwilling) to either modify or reduce the principal so I can sell it.
In time, this will all find its way into (Chapter 11 bankruptcy) courts. Life would be simpler if I pay down the credit cards and concentrate on (getting) the house above water. Instead, I've decided to invest the surplus in ERISA retirement vehicles and Roth IRAs. They would be exempt from collections but available as bargaining chips when negotiating with creditors. What is your opinion?
ANSWER: I would not encourage anyone to go into bankruptcy proceedings if he or she can help it. It creates a lot of stress and is not the best for your self-esteem.
If you have 10 credit cards to pay off, 6 percent is a pretty good deal instead of 20 percent.
I would begin paying off the credit cards, starting with the smallest one first, until they are all gone for good.
It may be painful at first, but you will increase your cash flow over time by (eliminating) the monthly payments.
Then I would attack the upside-down situation with your rental. In the long run, it is better, financially and emotionally, to be debt-free. And if the (credit card issuers) are giving you that opportunity, I would jump on it.
It would be a great personal and moral accomplishment.
At the end of the day, if you pay into an IRA and Roth IRA instead of paying down your credit card debt, you will still have debt. As far as negotiating with the (lender) on your rental property, I'm not sure it would look at the situation very positively if it saw you were fully funding your IRAs.
(c) 2010, The Sacramento Bee (Sacramento, Calif.).
Distributed by McClatchy-Tribune Information Services.
By Claudia Buck
RISMEDIA, November 20, 2010--(MCT)--Hard times elicit tough choices. This week, Steven Zeller, a Gold River, Calif.-based investment adviser, tackles a reader's question on credit card debt and mortgage loans.
QUESTION: I've entered into a hardship payment program with the six banks that issued my 10 credit cards. I'm paying off $80,000 at an overall interest rate of 6 percent (down from an average of 20 percent). Due to the reduced payments, I now have $3,000 in monthly surplus income to either invest with, or pay down the credit cards.
I also have an upside-down mortgage on a rental house owned as income property. The bank seems (unwilling) to either modify or reduce the principal so I can sell it.
In time, this will all find its way into (Chapter 11 bankruptcy) courts. Life would be simpler if I pay down the credit cards and concentrate on (getting) the house above water. Instead, I've decided to invest the surplus in ERISA retirement vehicles and Roth IRAs. They would be exempt from collections but available as bargaining chips when negotiating with creditors. What is your opinion?
ANSWER: I would not encourage anyone to go into bankruptcy proceedings if he or she can help it. It creates a lot of stress and is not the best for your self-esteem.
If you have 10 credit cards to pay off, 6 percent is a pretty good deal instead of 20 percent.
I would begin paying off the credit cards, starting with the smallest one first, until they are all gone for good.
It may be painful at first, but you will increase your cash flow over time by (eliminating) the monthly payments.
Then I would attack the upside-down situation with your rental. In the long run, it is better, financially and emotionally, to be debt-free. And if the (credit card issuers) are giving you that opportunity, I would jump on it.
It would be a great personal and moral accomplishment.
At the end of the day, if you pay into an IRA and Roth IRA instead of paying down your credit card debt, you will still have debt. As far as negotiating with the (lender) on your rental property, I'm not sure it would look at the situation very positively if it saw you were fully funding your IRAs.
(c) 2010, The Sacramento Bee (Sacramento, Calif.).
Distributed by McClatchy-Tribune Information Services.
How to Be the Expert in Tough Times
How to Be the Expert in Tough Times
By Margaret Kelly
RISMEDIA, November 22, 2010—With the bulk of the subprime mortgage resets behind us, it may seem that the only direction to move is straight up toward recovery. Projections through 2012, however, show two more waves of resets on more than $1 trillion in Alt-A and Option ARM mortgages.
Many owners of these properties may face foreclosure, as did subprime borrowers. This means the current shadow inventory is expected to remain at record levels. NAR estimates that there are 2.7 million delinquencies (90 days or more), foreclosures and REOs that have yet to reach the market. Absorption of these properties could take several years in some major markets.
It’s in everyone’s best interest—including the banks’—to release shadow properties onto the market in stages. Until the backlog is cleared, however, the housing market will continue to recover slowly. You can expect to see the market conditions you’re seeing today for the next few years. In the meantime, the real estate professionals who will succeed are the ones who are committed to being the experts in the tough times, too.
Move Out of the Shadows
If digging your heels in against entering the distressed property market seems more and more like a bad idea, it’s not too late to become an expert. Consider earning the Certified Distressed Property Expert (CDPE) designation, NAR’s Short Sales and Foreclosure Resource (SFR) certification, and the Five Star Institute’s Short Sale and REO certifications. Agents who have earned these credentials report a significant impact on their businesses.
Focus on Pricing with Sellers
The release of shadow inventory typically puts a strain on home prices, and can create a clogged pipeline of homes on the market. Pricing homes competitively is one of the simplest ways to buck that trend and stimulate demand among all types of buyers, including first-timers, repeat buyers and investors.
Make Buyers Aware
Although any of us would prefer this slump be behind us, there are positives in the market for qualified buyers. With interest rates so low and prices extremely competitive, there are opportunities for some buyers to find deals on previously unobtainable properties. Investors, in particular, will play a larger and larger role in moving inventory. It’s smart to reach out to all categories of buyers.
There is some good news in all this. By the end of 2012, the bulk of Alt-A and Option ARM resets will also be behind us. With no guarantees on how long it will take to re-establish balance in the market, it’s important in the short- and long-term that you’re prepared to face this challenging inventory head-on.
Margaret Kelly, CRB, is chief executive officer of RE/MAX LLC
By Margaret Kelly
RISMEDIA, November 22, 2010—With the bulk of the subprime mortgage resets behind us, it may seem that the only direction to move is straight up toward recovery. Projections through 2012, however, show two more waves of resets on more than $1 trillion in Alt-A and Option ARM mortgages.
Many owners of these properties may face foreclosure, as did subprime borrowers. This means the current shadow inventory is expected to remain at record levels. NAR estimates that there are 2.7 million delinquencies (90 days or more), foreclosures and REOs that have yet to reach the market. Absorption of these properties could take several years in some major markets.
It’s in everyone’s best interest—including the banks’—to release shadow properties onto the market in stages. Until the backlog is cleared, however, the housing market will continue to recover slowly. You can expect to see the market conditions you’re seeing today for the next few years. In the meantime, the real estate professionals who will succeed are the ones who are committed to being the experts in the tough times, too.
Move Out of the Shadows
If digging your heels in against entering the distressed property market seems more and more like a bad idea, it’s not too late to become an expert. Consider earning the Certified Distressed Property Expert (CDPE) designation, NAR’s Short Sales and Foreclosure Resource (SFR) certification, and the Five Star Institute’s Short Sale and REO certifications. Agents who have earned these credentials report a significant impact on their businesses.
Focus on Pricing with Sellers
The release of shadow inventory typically puts a strain on home prices, and can create a clogged pipeline of homes on the market. Pricing homes competitively is one of the simplest ways to buck that trend and stimulate demand among all types of buyers, including first-timers, repeat buyers and investors.
Make Buyers Aware
Although any of us would prefer this slump be behind us, there are positives in the market for qualified buyers. With interest rates so low and prices extremely competitive, there are opportunities for some buyers to find deals on previously unobtainable properties. Investors, in particular, will play a larger and larger role in moving inventory. It’s smart to reach out to all categories of buyers.
There is some good news in all this. By the end of 2012, the bulk of Alt-A and Option ARM resets will also be behind us. With no guarantees on how long it will take to re-establish balance in the market, it’s important in the short- and long-term that you’re prepared to face this challenging inventory head-on.
Margaret Kelly, CRB, is chief executive officer of RE/MAX LLC
Friday, November 19, 2010
Report: More Time from Mortgage Application to Closing Drives Decline in Customer Satisfaction
Report: More Time from Mortgage Application to Closing Drives Decline in Customer Satisfaction
RISMEDIA, November 19, 2010—Driven by an increase in length of time from application to approval, the average timeline of the mortgage origination process has increased for a third consecutive year, while customer satisfaction has declined, according to the J.D. Power and Associates 2010 U.S. Primary Mortgage Origination Satisfaction Study released.
The study, based on the voice of the customer, measures customer satisfaction in four key factors of the mortgage origination experience: application/approval process; loan officer/mortgage broker; closing; and contact.
The study finds that the time from application to approval has increased to 27.5 days in 2010 from 20 days in 2009. As a result, the time frame for the entire origination process has increased to 52.1 days in 2010 from 46.9 days in 2009. Consequently, overall satisfaction has decreased to 734 (on a 1,000-point scale) in 2010 from 739 in 2009.
"While the revised Real Estate Settlement Procedures Act guidelines appear to have streamlined and shortened the time from approval to closing, the unintended consequence is that the application-to-approval time frame has lengthened and become more complicated," said David Lo, director of financial services at J.D. Power and Associates. "Ultimately, this longer timeline has a negative impact on overall satisfaction, although there are specific best practices that may mitigate the negative perceptions."
The study finds that the most important best practices, which are most closely associated with high levels of satisfaction, are:
• Providing proactive updates on the status of the loan
• Providing a welcome acknowledgment after an application is submitted
• Avoiding asking for the same information more than once
• Closing on the promised date
• Clearly explaining loan options and ensuring that the customer understands
• Clearly explaining the entire process from application to approval
The study also finds that usage of the online application channel continues to increase. Nearly 20 percent of customers now go online to start the mortgage application process, up from 14 percent in 2009. In comparison, only 29 percent of customers start the mortgage application process in person, while 33 percent did so in 2009. In addition, fewer customers this year say that they met with their loan officer or mortgage broker in person during the mortgage origination process -- 50 percent, compared with 57 percent in 2009.
"Customer preference and, more importantly, perceptions, continue to increase with the online direct channel," said Lo. "Online lenders do a very good job of keeping their customers informed of the process every step of the way by providing periodic status updates and information pertaining to their loan."
The 2010 U.S. Primary Mortgage Origination Satisfaction Study is based on responses from 3,401 consumers who originated new mortgages. The study was fielded between July and August 2010.
RISMEDIA, November 19, 2010—Driven by an increase in length of time from application to approval, the average timeline of the mortgage origination process has increased for a third consecutive year, while customer satisfaction has declined, according to the J.D. Power and Associates 2010 U.S. Primary Mortgage Origination Satisfaction Study released.
The study, based on the voice of the customer, measures customer satisfaction in four key factors of the mortgage origination experience: application/approval process; loan officer/mortgage broker; closing; and contact.
The study finds that the time from application to approval has increased to 27.5 days in 2010 from 20 days in 2009. As a result, the time frame for the entire origination process has increased to 52.1 days in 2010 from 46.9 days in 2009. Consequently, overall satisfaction has decreased to 734 (on a 1,000-point scale) in 2010 from 739 in 2009.
"While the revised Real Estate Settlement Procedures Act guidelines appear to have streamlined and shortened the time from approval to closing, the unintended consequence is that the application-to-approval time frame has lengthened and become more complicated," said David Lo, director of financial services at J.D. Power and Associates. "Ultimately, this longer timeline has a negative impact on overall satisfaction, although there are specific best practices that may mitigate the negative perceptions."
The study finds that the most important best practices, which are most closely associated with high levels of satisfaction, are:
• Providing proactive updates on the status of the loan
• Providing a welcome acknowledgment after an application is submitted
• Avoiding asking for the same information more than once
• Closing on the promised date
• Clearly explaining loan options and ensuring that the customer understands
• Clearly explaining the entire process from application to approval
The study also finds that usage of the online application channel continues to increase. Nearly 20 percent of customers now go online to start the mortgage application process, up from 14 percent in 2009. In comparison, only 29 percent of customers start the mortgage application process in person, while 33 percent did so in 2009. In addition, fewer customers this year say that they met with their loan officer or mortgage broker in person during the mortgage origination process -- 50 percent, compared with 57 percent in 2009.
"Customer preference and, more importantly, perceptions, continue to increase with the online direct channel," said Lo. "Online lenders do a very good job of keeping their customers informed of the process every step of the way by providing periodic status updates and information pertaining to their loan."
The 2010 U.S. Primary Mortgage Origination Satisfaction Study is based on responses from 3,401 consumers who originated new mortgages. The study was fielded between July and August 2010.
Bankrate: Mortgage Rates Rise Significantly
Bankrate: Mortgage Rates Rise Significantly
RISMEDIA, November 19, 2010—Mortgage rates increased again this week, with the average conforming 30-year fixed mortgage rate now 4.62 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points.
To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.
The average 15-year fixed mortgage increased to 4.02 percent, and the larger jumbo 30-year fixed rate soared as well to 5.24 percent. Adjustable rate mortgages also climbed higher, with the average 5-year ARM inching higher to 3.71 percent and the average 7-year ARM rising to 4.01 percent.
Mortgage rates jumped significantly this week, posting a second consecutive weekly increase since the Federal Reserve announced renewed measures to boost the economy. Worries that the Fed's quantitative easing program will spark higher inflation, coupled with stronger economic data on retail sales and weekly unemployment filings fueled the latest increase. Although mortgage rates have increased, they remain extremely low in a historical context and will not be an impediment to well-qualified borrowers for the foreseeable future.
The last time mortgage rates were above 6 percent was November 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.62 percent, the monthly payment for the same size loan would be $1,027.68, a savings of $214 per month for a homeowner refinancing now.
RISMEDIA, November 19, 2010—Mortgage rates increased again this week, with the average conforming 30-year fixed mortgage rate now 4.62 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points.
To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.
The average 15-year fixed mortgage increased to 4.02 percent, and the larger jumbo 30-year fixed rate soared as well to 5.24 percent. Adjustable rate mortgages also climbed higher, with the average 5-year ARM inching higher to 3.71 percent and the average 7-year ARM rising to 4.01 percent.
Mortgage rates jumped significantly this week, posting a second consecutive weekly increase since the Federal Reserve announced renewed measures to boost the economy. Worries that the Fed's quantitative easing program will spark higher inflation, coupled with stronger economic data on retail sales and weekly unemployment filings fueled the latest increase. Although mortgage rates have increased, they remain extremely low in a historical context and will not be an impediment to well-qualified borrowers for the foreseeable future.
The last time mortgage rates were above 6 percent was November 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.62 percent, the monthly payment for the same size loan would be $1,027.68, a savings of $214 per month for a homeowner refinancing now.
Thursday, November 18, 2010
Stay Warm and Save This Winter
Stay Warm and Save This Winter
By Stephanie Andre
RISMEDIA, November 18, 2010—The cold weather will be here (if not, already) before you know it. And with it comes the likelihood of rising heating bills and drafty windows, doorways and spaces.
To help you make your home more energy-efficient this year, here are some tips from ComEd:
• Have home heating systems cleaned and inspected by a professional each year to ensure safety and optimum efficiency. Be sure to change the filter prior to the heating season, and check its condition monthly.
• Inspect the caulking and weather-stripping around all windows, doors and any openings for utility services. Replace caulking and weather-stripping as necessary. A drafty house lets warm air escape and is much more costly to keep warm.
• Remove window air conditioners if possible, or install an air conditioner cover to eliminate drafts.
• Keep fireplace dampers closed tightly when not in use.
• Reverse the rotation of ceiling fan blades. During the winter, blades should spin so the warm air that has risen can be re-distributed around the room.
• Switch to more energy-efficient lighting, such as CFLs (compact fluorescent light bulbs), which use about 75 percent less energy than standard incandescent bulbs and last up to 10 times longer.
By Stephanie Andre
RISMEDIA, November 18, 2010—The cold weather will be here (if not, already) before you know it. And with it comes the likelihood of rising heating bills and drafty windows, doorways and spaces.
To help you make your home more energy-efficient this year, here are some tips from ComEd:
• Have home heating systems cleaned and inspected by a professional each year to ensure safety and optimum efficiency. Be sure to change the filter prior to the heating season, and check its condition monthly.
• Inspect the caulking and weather-stripping around all windows, doors and any openings for utility services. Replace caulking and weather-stripping as necessary. A drafty house lets warm air escape and is much more costly to keep warm.
• Remove window air conditioners if possible, or install an air conditioner cover to eliminate drafts.
• Keep fireplace dampers closed tightly when not in use.
• Reverse the rotation of ceiling fan blades. During the winter, blades should spin so the warm air that has risen can be re-distributed around the room.
• Switch to more energy-efficient lighting, such as CFLs (compact fluorescent light bulbs), which use about 75 percent less energy than standard incandescent bulbs and last up to 10 times longer.
17 Ideas for Marketing Listings
17 Ideas for Marketing Your Listings
By Darryl Davis
RISMEDIA, November 18, 2010—Yesterday, we discussed five concepts to help you get your listings sold. Today, we’ll focus on the keys to marketing those listings. Here are tips and techniques that every Realtor can use:
Hold broker open houses. If selling the agents means getting more buyers, then a brokers’ open house is one of the best tools to use. You should look at it as an opportunity to introduce the product. It ideally should be done in the first one to two weeks that a house goes to multiple listing.
It might take some time to build the reputation and to get a good turnout, but eventually it will happen. Make the open house something special – more of a party or an event. Promote it by making fliers or sending faxes. It’s also a great vehicle for promoting listings that are not getting a lot of activity.
At the open house, distribute opinion sheets. The most important question on the sheet is, “What price do you think the house is going to sell for?” After the open house, sit down with the seller and go through the sheets to find out what most agents think. Then, you can give the option to the sellers to adjust the price accordingly so that you’ll get the activity that’s needed, or leave the price as is and hope you’ll get the activity.
Also, attend other agents’ open houses as well, because you want the same support from them.
Hold public open houses. These are time consuming, but the major plus is that it promotes you and highlights your listing. It shows the seller you’re servicing them and most importantly, you’ll get listing leads.
Showcase your listings. Run a larger-than-usual ad in a local paper, and instead of promoting a public open house on just one listing, promote four to six at a time. Put all the information about these houses into the ad and announce open houses that one weekend.
“Just listed” letters. These can be like “just sold” cards. They are highly effective and a lot easier to do if you are computerized. If you’re going to do these, don’t do postcards.
Call 100 surrounding neighbors of a house you just listed. In addition to telling them about the listing, ask if they know anyone else who might be selling in the area. Also, ask them if they themselves might be thinking of selling, and find out if they know anyone who they’d like to make their new neighbor. If you include this as part of your servicing campaign for sellers, it won’t seem like cold calls; it will seem like “just listed” calls.
The 10-10-20 rule. Since the general rule of “knocking on 100 doors” takes a lot of time and energy, it is more useful to knock on 10 doors to the left, 10 to the right and 20 doors across the street. People in these homes are the most likely to know the listing family personally and, therefore, are most likely to want to help them find a buyer.
Advertise in specialized papers. For example, let’s say you just listed a waterfront property. Then, advertise in boating magazines and other such publications.
A gift to the selling agent. Whenever an agent from another company sells one of your listings, give them a huge gift, like a television. And make sure you deliver it to the office of the selling agent in the middle of their office meeting. Watch the next time you do a Broker’s Open House how many agents attend your open house from that office.
Use report cards. This helps you track the activity of other agents calling on your listings. If you have a listing that’s been on the market for 30 days and you’ve gotten very few calls from other agents inquiring about it, then you’ve got to communicate that with the seller. This helps you get either a price adjustment or terms adjustment.
Hold periodic reviews. Meet with the seller at the 30-day and 60-day mark to discuss price adjustment, terms adjustment or marketing.
Have an individual folder for each listing. Even if you’re computerized, there are still papers and forms you must keep.
A list of your listings hanging by your phone with the price and expiration date. This will act as a constant motivator to get your listings sold. It will also help you stay focused on increasing that list of sellers.
Get a higher commission. One of your tasks is to sell other agents to help you sell this home. A higher commission will surely help you sell the agents
Bimonthly calls. Stay in touch with the seller every two weeks. Discuss what the competition has sold or when you’ll be running an ad about their house or about what kind of responses you’re getting from agents.
Agent evaluation cards. Send one of these to agents every time they show your home. This is based on the assumption that you’ve created a good reputation for yourself.
Farming agents. Create a mailing list of successful agents in your area. Personalize any mailing you send to them. That way, they get the personal attention they deserve.
Common sense pricing. Pricing of houses should be listed in such a way that they show up in more searches, meaning more exposure.
These are just some the items to get your listings sold. The most important one, however, is to have a communication system like we teach our students to validate the homeowner made the right decision when they hired you, and to show them you are doing everything you can to get their property sold. After that, it’s up to them to lower the price.
For over 20 years, Darryl Davis has traveled around the country coaching agents and brokers on how to achieve their Next Level of success. He is the creator of the nationally acclaimed www.ThePowerProgram.com, the only yearlong coaching and training course where Power Agents, on average, double their production over their previous year. Darryl is a best-selling author, one of the highest rated speakers at the NAR Convention each year, and has a career-curriculum that brings agents from “Rookies to Retirement”. To find out about his training programs and/or speaking availability, please visit www.DarrylDavisSeminars.com or call 1-800-395-3905. For more information on the get your listings sold program, go to www.GetYourListingsSold.com.
By Darryl Davis
RISMEDIA, November 18, 2010—Yesterday, we discussed five concepts to help you get your listings sold. Today, we’ll focus on the keys to marketing those listings. Here are tips and techniques that every Realtor can use:
Hold broker open houses. If selling the agents means getting more buyers, then a brokers’ open house is one of the best tools to use. You should look at it as an opportunity to introduce the product. It ideally should be done in the first one to two weeks that a house goes to multiple listing.
It might take some time to build the reputation and to get a good turnout, but eventually it will happen. Make the open house something special – more of a party or an event. Promote it by making fliers or sending faxes. It’s also a great vehicle for promoting listings that are not getting a lot of activity.
At the open house, distribute opinion sheets. The most important question on the sheet is, “What price do you think the house is going to sell for?” After the open house, sit down with the seller and go through the sheets to find out what most agents think. Then, you can give the option to the sellers to adjust the price accordingly so that you’ll get the activity that’s needed, or leave the price as is and hope you’ll get the activity.
Also, attend other agents’ open houses as well, because you want the same support from them.
Hold public open houses. These are time consuming, but the major plus is that it promotes you and highlights your listing. It shows the seller you’re servicing them and most importantly, you’ll get listing leads.
Showcase your listings. Run a larger-than-usual ad in a local paper, and instead of promoting a public open house on just one listing, promote four to six at a time. Put all the information about these houses into the ad and announce open houses that one weekend.
“Just listed” letters. These can be like “just sold” cards. They are highly effective and a lot easier to do if you are computerized. If you’re going to do these, don’t do postcards.
Call 100 surrounding neighbors of a house you just listed. In addition to telling them about the listing, ask if they know anyone else who might be selling in the area. Also, ask them if they themselves might be thinking of selling, and find out if they know anyone who they’d like to make their new neighbor. If you include this as part of your servicing campaign for sellers, it won’t seem like cold calls; it will seem like “just listed” calls.
The 10-10-20 rule. Since the general rule of “knocking on 100 doors” takes a lot of time and energy, it is more useful to knock on 10 doors to the left, 10 to the right and 20 doors across the street. People in these homes are the most likely to know the listing family personally and, therefore, are most likely to want to help them find a buyer.
Advertise in specialized papers. For example, let’s say you just listed a waterfront property. Then, advertise in boating magazines and other such publications.
A gift to the selling agent. Whenever an agent from another company sells one of your listings, give them a huge gift, like a television. And make sure you deliver it to the office of the selling agent in the middle of their office meeting. Watch the next time you do a Broker’s Open House how many agents attend your open house from that office.
Use report cards. This helps you track the activity of other agents calling on your listings. If you have a listing that’s been on the market for 30 days and you’ve gotten very few calls from other agents inquiring about it, then you’ve got to communicate that with the seller. This helps you get either a price adjustment or terms adjustment.
Hold periodic reviews. Meet with the seller at the 30-day and 60-day mark to discuss price adjustment, terms adjustment or marketing.
Have an individual folder for each listing. Even if you’re computerized, there are still papers and forms you must keep.
A list of your listings hanging by your phone with the price and expiration date. This will act as a constant motivator to get your listings sold. It will also help you stay focused on increasing that list of sellers.
Get a higher commission. One of your tasks is to sell other agents to help you sell this home. A higher commission will surely help you sell the agents
Bimonthly calls. Stay in touch with the seller every two weeks. Discuss what the competition has sold or when you’ll be running an ad about their house or about what kind of responses you’re getting from agents.
Agent evaluation cards. Send one of these to agents every time they show your home. This is based on the assumption that you’ve created a good reputation for yourself.
Farming agents. Create a mailing list of successful agents in your area. Personalize any mailing you send to them. That way, they get the personal attention they deserve.
Common sense pricing. Pricing of houses should be listed in such a way that they show up in more searches, meaning more exposure.
These are just some the items to get your listings sold. The most important one, however, is to have a communication system like we teach our students to validate the homeowner made the right decision when they hired you, and to show them you are doing everything you can to get their property sold. After that, it’s up to them to lower the price.
For over 20 years, Darryl Davis has traveled around the country coaching agents and brokers on how to achieve their Next Level of success. He is the creator of the nationally acclaimed www.ThePowerProgram.com, the only yearlong coaching and training course where Power Agents, on average, double their production over their previous year. Darryl is a best-selling author, one of the highest rated speakers at the NAR Convention each year, and has a career-curriculum that brings agents from “Rookies to Retirement”. To find out about his training programs and/or speaking availability, please visit www.DarrylDavisSeminars.com or call 1-800-395-3905. For more information on the get your listings sold program, go to www.GetYourListingsSold.com.
October Housing Starts Down
October Housing Starts Down
RISMEDIA, November 18, 2010—Nationwide housing starts declined 11.7 percent to a seasonally adjusted annual rate of 519,000 units in October, according to figures released by the U.S. Commerce Department. The decline was primarily registered in the more volatile multifamily sector, where starts retreated 43.5 percent to an 83,000-unit rate, while single-family starts posted a more modest 1.1 percent decline to 436,000 units.
"Home builders continue to be very cautious about starting new projects at this time," said Bob Jones, chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Mich. "That said, in markets where consumer demand for new homes is reviving, builders are finding it almost impossible to obtain construction financing, and this frustrating situation is producing an unnecessary drag on both new home production and economic growth."
"October single-family starts and permitting activity remained essentially in line with the third quarter's trend," noted NAHB Chief Economist David Crowe. "What this tells us is that the market is running at a steady, but slow, rate following the downturn that took place upon expiration of the home buyer tax credit program and the economic slowdown this summer. Today, builders are just starting to report some improvement in buyer demand, which should gradually translate into more sales activity, and more starts, as the economy strengthens. The great concern is that this positive momentum will be stifled due to builders' inability to obtain financing for new construction at a time when inventories of completed new homes are very thin."
A report to be released by NAHB later today will highlight the extent to which much of the U.S. single-family housing market is underbuilt following the severe decline in production that has taken place since 2006. This finding underscores the concern that demand for new homes could quickly overwhelm supplies as economic conditions improve.
Starts activity was mixed across the nation in October, with gains of 12.9 percent and 1 percent reported in the Northeast and Midwest, respectively, and declines of 13.4 percent and 30.5 percent reported in the South and West, respectively.
Permit issuance, which can be an indicator of future building activity, showed virtually no change in October, with a 0.5 percent gain to a seasonally adjusted annual rate of 550,000 units. This lack of movement was reflected in both the single-family and multifamily sectors, with a 1.0 percent gain recorded in the former and a 0.7 percent decline registered in the latter.
Regionally, permit activity showed no change in the Northeast, a 14.3 percent gain in the Midwest, a 3.4 percent decline in the South, and a 0.9 percent decline in the West.
RISMEDIA, November 18, 2010—Nationwide housing starts declined 11.7 percent to a seasonally adjusted annual rate of 519,000 units in October, according to figures released by the U.S. Commerce Department. The decline was primarily registered in the more volatile multifamily sector, where starts retreated 43.5 percent to an 83,000-unit rate, while single-family starts posted a more modest 1.1 percent decline to 436,000 units.
"Home builders continue to be very cautious about starting new projects at this time," said Bob Jones, chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Mich. "That said, in markets where consumer demand for new homes is reviving, builders are finding it almost impossible to obtain construction financing, and this frustrating situation is producing an unnecessary drag on both new home production and economic growth."
"October single-family starts and permitting activity remained essentially in line with the third quarter's trend," noted NAHB Chief Economist David Crowe. "What this tells us is that the market is running at a steady, but slow, rate following the downturn that took place upon expiration of the home buyer tax credit program and the economic slowdown this summer. Today, builders are just starting to report some improvement in buyer demand, which should gradually translate into more sales activity, and more starts, as the economy strengthens. The great concern is that this positive momentum will be stifled due to builders' inability to obtain financing for new construction at a time when inventories of completed new homes are very thin."
A report to be released by NAHB later today will highlight the extent to which much of the U.S. single-family housing market is underbuilt following the severe decline in production that has taken place since 2006. This finding underscores the concern that demand for new homes could quickly overwhelm supplies as economic conditions improve.
Starts activity was mixed across the nation in October, with gains of 12.9 percent and 1 percent reported in the Northeast and Midwest, respectively, and declines of 13.4 percent and 30.5 percent reported in the South and West, respectively.
Permit issuance, which can be an indicator of future building activity, showed virtually no change in October, with a 0.5 percent gain to a seasonally adjusted annual rate of 550,000 units. This lack of movement was reflected in both the single-family and multifamily sectors, with a 1.0 percent gain recorded in the former and a 0.7 percent decline registered in the latter.
Regionally, permit activity showed no change in the Northeast, a 14.3 percent gain in the Midwest, a 3.4 percent decline in the South, and a 0.9 percent decline in the West.
Wednesday, November 17, 2010
Top 5 Tips for Buying a Newly Built Home
For Your Clients: Top 5 Tips for Buying a Newly Built Home
By Dan Steward
RISMEDIA, November 17, 2010—Newly built homes, often in recently developed communities, are regaining popularity and are more affordable than in years past. New homebuilders are using desirable, open floor plans and are helping buyers get into new homes despite the nationwide credit crunch.
As with any major transaction, it’s critical that the buyer enter the home purchase fully informed and educated. Follow these important tips in a new home transaction to ensure that the outcome is a success.
1. Choose a Realtor Who Has New Home Sales Experience
Hire a buyer’s agent to represent you. Most of the time, your agent will be paid by the seller, but sometimes the responsibility for the agent’s fee is open for discussion. Even if you have to directly pay your agent, you can probably add that fee to the sales price, which would be worthwhile since a strong Realtor negotiating on your behalf can save you thousands more than the commission.
The builder’s sales agents are paid to represent the builder, regardless of what they may tell you. Many will use high pressure tactics to persuade you to sign the contract. Due to the high volume nature of brand-new home sales, lots of builder’s agents are paid less than a traditional commission; some earn a salary plus incentives, so turnover is important to their livelihood.
Your own agent will represent you, act as your fiduciary and disclose the positives as well as the negatives about the transaction. Builder’s agents don’t discuss drawbacks.
If your contract contains a contingency to sell your existing home before buying, again, hire your own seller’s agent to list your home. Be aware that buying before selling is not always in your best interest as hard bargaining goes out the window once you’ve emotionally already left your home.
2. Carefully Evaluate the Seller’s Lender before Committing
Builders often prefer their own lender because the builder will be kept fully informed of your personal progress; it’s one-stop shopping for a builder. However, a builder’s lender might not offer you the best deal. This is particularly true if the builder actually owns the lending company.
Builders will offer huge incentives to get you into your new home; sometimes up to 15% of the value of the home. However, they will often put one big stipulation on those incentives – that you use their lender. There are many problems that may crop up when you pigeon-hole yourself to one lender – higher rates and higher closing costs are the two biggest.
Ask to see a copy of your credit report and FICO cores. You can also order your own free credit report before shopping for a new home.
Insist that your lender guarantee its Good Faith Estimate. If the lender balks or makes excuses, go elsewhere. Reputable lenders will honor that request, even though it’s not required by law.
3. Check out the Builder’s Reputation
If a buyer has a bad experience with a builder, word spreads rapidly throughout a community. However, accurately and fairly assessing a builder’s history is the appropriate path—check public records for lawsuits or complaints and evaluate their resolutions.
Talk to the neighbors and scrutinize the construction quality of surrounding homes. Is the builder consistently building same-sized or larger than existing properties, or are homes shrinking in size, which could reduce neighborhood value?
Learn if the builder limits investor purchases – this ensures that the neighborhood doesn’t turn into a “rental” neighborhood, which may appear less well-maintained and reduce property value.
4. Hire a Home Inspector
Many people who buy new construction homes don’t bother to get a home inspection. Most new homes come with a one year “bumper-to-bumper” warranty that includes everything, and many home buyers feel that they can find out if there are any construction flaws during those 12 months. The problem is that many problems won’t surface until well after the 12-month warranty has expired.
If the inspector calls for further inspection by another professional contractor, find out if the inspector is telling you there could be a serious issue or if the inspector isn’t licensed to address that issue.
An inspection provides education about the property, and offers the validation of a trained, independent third party assessment of the structure and systems.
5. Obtain Legal Advice before Buying a Brand-New Home
Before you sign a purchase contract, talk to a real estate lawyer. Standard purchase agreements are designed to keep everybody out of court, but they don’t necessarily contain language that protects the buyer.
Ask questions about removal of contingencies and your cancellation rights. Make sure you understand your liability and commitments.
Find out if the materials used by the builder contain chemicals that are hazardous to your health. If your contract contains a warning about health issues, it’s probably because it’s a valid concern and other buyers have gone to court over it.
Dan Steward is president, Pillar To Post.
By Dan Steward
RISMEDIA, November 17, 2010—Newly built homes, often in recently developed communities, are regaining popularity and are more affordable than in years past. New homebuilders are using desirable, open floor plans and are helping buyers get into new homes despite the nationwide credit crunch.
As with any major transaction, it’s critical that the buyer enter the home purchase fully informed and educated. Follow these important tips in a new home transaction to ensure that the outcome is a success.
1. Choose a Realtor Who Has New Home Sales Experience
Hire a buyer’s agent to represent you. Most of the time, your agent will be paid by the seller, but sometimes the responsibility for the agent’s fee is open for discussion. Even if you have to directly pay your agent, you can probably add that fee to the sales price, which would be worthwhile since a strong Realtor negotiating on your behalf can save you thousands more than the commission.
The builder’s sales agents are paid to represent the builder, regardless of what they may tell you. Many will use high pressure tactics to persuade you to sign the contract. Due to the high volume nature of brand-new home sales, lots of builder’s agents are paid less than a traditional commission; some earn a salary plus incentives, so turnover is important to their livelihood.
Your own agent will represent you, act as your fiduciary and disclose the positives as well as the negatives about the transaction. Builder’s agents don’t discuss drawbacks.
If your contract contains a contingency to sell your existing home before buying, again, hire your own seller’s agent to list your home. Be aware that buying before selling is not always in your best interest as hard bargaining goes out the window once you’ve emotionally already left your home.
2. Carefully Evaluate the Seller’s Lender before Committing
Builders often prefer their own lender because the builder will be kept fully informed of your personal progress; it’s one-stop shopping for a builder. However, a builder’s lender might not offer you the best deal. This is particularly true if the builder actually owns the lending company.
Builders will offer huge incentives to get you into your new home; sometimes up to 15% of the value of the home. However, they will often put one big stipulation on those incentives – that you use their lender. There are many problems that may crop up when you pigeon-hole yourself to one lender – higher rates and higher closing costs are the two biggest.
Ask to see a copy of your credit report and FICO cores. You can also order your own free credit report before shopping for a new home.
Insist that your lender guarantee its Good Faith Estimate. If the lender balks or makes excuses, go elsewhere. Reputable lenders will honor that request, even though it’s not required by law.
3. Check out the Builder’s Reputation
If a buyer has a bad experience with a builder, word spreads rapidly throughout a community. However, accurately and fairly assessing a builder’s history is the appropriate path—check public records for lawsuits or complaints and evaluate their resolutions.
Talk to the neighbors and scrutinize the construction quality of surrounding homes. Is the builder consistently building same-sized or larger than existing properties, or are homes shrinking in size, which could reduce neighborhood value?
Learn if the builder limits investor purchases – this ensures that the neighborhood doesn’t turn into a “rental” neighborhood, which may appear less well-maintained and reduce property value.
4. Hire a Home Inspector
Many people who buy new construction homes don’t bother to get a home inspection. Most new homes come with a one year “bumper-to-bumper” warranty that includes everything, and many home buyers feel that they can find out if there are any construction flaws during those 12 months. The problem is that many problems won’t surface until well after the 12-month warranty has expired.
If the inspector calls for further inspection by another professional contractor, find out if the inspector is telling you there could be a serious issue or if the inspector isn’t licensed to address that issue.
An inspection provides education about the property, and offers the validation of a trained, independent third party assessment of the structure and systems.
5. Obtain Legal Advice before Buying a Brand-New Home
Before you sign a purchase contract, talk to a real estate lawyer. Standard purchase agreements are designed to keep everybody out of court, but they don’t necessarily contain language that protects the buyer.
Ask questions about removal of contingencies and your cancellation rights. Make sure you understand your liability and commitments.
Find out if the materials used by the builder contain chemicals that are hazardous to your health. If your contract contains a warning about health issues, it’s probably because it’s a valid concern and other buyers have gone to court over it.
Dan Steward is president, Pillar To Post.
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