Real Estate

Numbers, Short Sales and Taxation…oh my!!!

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ScottsCam 001

Wow!  Lots of great info was shared today at training
– numbers, top ten questions ready to be answered, short sales in any market
and then Aronson & Company notes on taxation of debt forgiveness.

 

Numbers (in Northern Virginia)

 

  • Active (Sales)                                      5414
  • Vacant                                                 1597
  • % of Market                                         29.5%
  • Month Supply (For Sale)                      1.8
  • Month Supply (For Rent)                     2.2
  • Month Supply Sold                              2.1

 

 

Top Ten Questions – ready
to be answered!

 

  1. Is the housing market getting better?
  2. When will housing bottom out?
  3. What signals should I watch to determine
    whether my local market is improving?
  4. How can I figure out the value of my home?
  5. Does it matter whether I’m ‘under water’?
  6. If I lose my home to foreclosure, how long
    will it take to repair my credit record?
  7. If I’m renting, is now a good time to buy a
    house?
  8. Can I get a tax credit if I buy a home now?
  9. Can I get a mortgage on attractive terms?
  10. Should I invest in foreclosed homes?

 

 

Aronson & Company
Notes

 

·       
Cancellation
of debt is a taxable event

·       
Bankruptcy
does protect from tax liability from a tax liability that occurred prior to
bankruptcy.

·       
Deed in Lieu
of Foreclosure – similar to short sale – selling to third party with bank’s
approval. 

·       
Loan
Modifications can also result in cancellation of debt and the modifier may
receive a 1099 from the lender – be aware this is could possibly happen!

·       
The discharge
of acquisition debt secured by the taxpayer’s principal residence is excluded
from income up to $2,000,000 until December 31, 2012.  This date is subject to change.


For a complete chart of
the implications of the Taxation of Debt Forgiveness handout we received call
or email me and we will get it to you. 
As is always the case – you learn more by listening, taking notes and
reading the materials than you do by reading my synopsis – get to training
yourself to internalize it more!  Get
it?  Got it?  Good!

 

Now, go sell something!

Determine Your Good to Great Moment!

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Our Accelerent meeting
featured another outstanding speaker Don Yaeger
– the former editor of Sports
Illustrated.  In over hundreds of
interviews and encounters with athletes over the years he developed his 16
Consistent Characteristics of Greatness.

Don-headshot_web

 

Qualities that those who
demonstrate greatness possess

  • Hate losing more then love winning
  • No excuses. 
    Excuses keep you from going from good to great.  Basically make it happen.  Determine
    what is your good to great moment!      

 

Three themes of Greatness

  1. Greatness is a process – no one is born
    great.  You must work at it
    consistently and persistently.
  2. Not one single characteristic requires
    physical skills; you must be mentally, emotionally and spiritually
    disciplined.
  3. Great ones understand they are not perfect – they
    must continually work to get it done.

 

Other
thoughts that were shared

  • Get help if you need it – never too big never
    too small.
  • Something will happen that will affect your
    life – it is destine to happen – will you be better or bitter?  Use adversity as the fuel to motivate
    yourself – this is your inner fire! 
  • Value education

 

If you can’t change the people
around you, change the people you are around – seek to get better!

 

Determine what you will
get out of every situation you are in – yearn to learn! 

 

So here are the 16 Consistent Characteristics of Greatness

 

How They Think

  1. It’s Personal – They hate to lose more then
    they love to win.
  2. Rubbing Elbows – They understand the value of
    association.
  3. Believe – They have faith in a higher power.
  4. Contagious Enthusiasm – They are positive
    thinkers…They are enthusiastic…and that enthusiasm rubs off. 

 

How They Prepare

  1. Hope for the Best, But…They prepare for all
    possibilities before they step on the field.
  2. What Off-Season?  They are always working towards the next
    game…The goal is what’s ahead, and there’s always something ahead.
  3. Visualize Victory – They see victory before the
    game begins
  4. Inner Fire – They use adversity as fuel

 

How They Work

  1. Ice in Their Veins – They are risk-takers and
    don’t fear making a mistake.
  2. When All Else Fails – They know how and when to adjust their game plan.
  3. Ultimate Teammate – They will assume whatever
    role is necessary for the team to win.
  4. Not Just About the Benjamins – They don’t play
    just for the money.

 

How They Live

  1. Do Unto Others – They know character is
    defined by how they treat those who cannot help them.
  2. When no one is watching – They are comfortable
    in the mirror…They live their life with integrity.
  3. When Everyone is Watching – They embrace the
    idea of being a role model.
  4. Records are Made to be Broken – They know
    their legacy isn’t what they did on the field.  They are well-rounded. 

November Listing Exchange

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Listing Exchange 004

We are experiencing short sale success!  One agent got a short sale approved with
clients being current on their mortgage, another one was approved in 3.5 weeks,
many are being approved with the commission negotiated with the sellers, and
one agent got one approved while sitting in the exchange – 6 months after
submission but it was still approved. 
Bank of America is now retaining the right to pursue a deficiency
judgment and letting the seller know that the MI Company may also pursue the
deficiency.  More banks may follow suit –
stay tuned!

Inventory is dropping all over Northern Virginia and the
market continues to be extremely price sensitive.  A home was listed at $275,000 received 3
contracts and the price was escalated up to $300,000 and appraised close to the
sales price.  As luck would have it, the
loan was denied due to fraudulent tax returns being submitted.  Property was relisted for $300,000 because of
the appraisal and 27 showings occurred with no contracts in 2.5 weeks so price
was reduced to $275,000 and two offers are coming in – price properties
correctly and they will sell.

At a recent Buffini
conference he noted:  in 2010 be a Go
Getter or be a Go Goner;   Be a stay
puter and be a bankrupter;  be a do
nothinger and be an out of the businesser! 
What are you going to be next year?

4 million foreclosures expected in 2010 – filings are
slowing down after 6 consecutive months of increases in foreclosure filings.        

Rates are at near low rates for the year.  MBS being purchased by the government will
stop in March – what will happen to rates? 
Who will be a buyer of mortgages at that time?  Right now, we are in a high 4’s market will
probably be in a high 5’s market now.  Again,
now is the time to buy a house!

FHA has reserves of .5% because of demand on their
insurance…what will happen?  Will we need
higher down payments?  Will upfront
mortgage insurance be higher?

In a recent survey of buyers, they felt that on a scale of 1
– 10, 10 being difficult to obtain a loan, getting a loan today ranks as an
8.1.  Lenders are requiring more
paperwork, analyzing loans more and are more difficult to get through.

As most of us know, the tax credit has been
extended…but most REALTOR’s and lenders are not explaining it correctly.  Take advantage of the opportunity and explain
it to your clients and ask for new business!

Upcoming events:

Food Bank ends Friday – please contribute

December 4th is our Quarterly meeting featuring
Dave Stevens – please register!

Breakfast with Santa is December 5th in the
Chantilly office – invite all of your clients!

At our events, the education is great, the food is plentiful
and the networking is awesome – you need to attend.  Get it? 
Got it?  Good!

Now go sell
something!

Tips for Time Management

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I was recently interviewed for the NVAR
Update magazine about time management tips here is what was said!

First you must have goals – daily, weekly, monthly and
yearly.  We have an exercise where you
take a chart, put 5 year goals, 3 year goals, 1 year goals, 270 day, 180 day,
90 day, 60 day and 30 day goals and work backwards  to determine what steps  you need to take to accomplish them within
the timeframe set for yourself. 

Schedule these activities on your calendar and prioritize
them so you work effectively throughout the day.  Also, make sure you schedule family time; fun
time and friend time into your calendar to give you balance in your life.   Treat these activities as appointments like
any other appointment.

When you are at work – work – don’t waste time socializing
or hang around with others that do.  Be
focused on your activities to ensure they get accomplished.

Create task lists to keep you on track for accomplishing
your goals.

On your schedule, have a complete understanding of the
timing of events – if you don’t know ask someone.  You should know how long it takes to get
places, how long your listing appointments should last, home inspections, etc.

Develop a routine in your schedule.  Set your schedule to do certain tasks at the
same time every day.  As an example:   prospect first thing in the morning, return
emails and phone calls next, visit properties, conduct showings and listing
appointments in the afternoons, etc. 
Make your schedule a habit and you will see results.

Close your door at the office to minimize distractions.

As a general rule, delegate. 
Stay focused on what you do best and delegate the rest of the activities
that are not revenue generating activities.

Have an agenda for meetings to keep on track and not waste
time by getting off topic.

Utilize tools such as phonetag and blackberries to handle
phone calls and emails.

It is more important today than ever before to get organized
to get ahead in the business.  Get
it?  Got it?  Good!

Now, go sell something!

It’s all about continuous improvement!

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Continuous improvement is a critical piece of the puzzle when putting together a successful career.  To be the best in any field, it requires practice, education, training/coaching and participation.  Let’s take a quick look at Tiger Woods.  Without question, he is the best in his field today.  Does he practice golf?  Does he study the golf course he is going to play and visualize each shot on the course?  Does he train and have a coach or multiple coaches? And does he go out and play or just sit back and watch?  I think we all know the answers to the questions.  If you want to be the best, why aren’t you doing what it takes?  Why do you only go half way?  Continuous improvement means you take risks, make mistakes and then learn and grow from those mistakes.

In order to determine where you need to improve, you must first analyze where you are today.  How is your business?  How are your marketing efforts?  What is your ideal client? How is your prospecting?  How is your follow up?  How are your results?  How is your knowledge of our business? How are your systems?  By careful, through thoughtful analysis of these areas, you can determine how, if you pay a little attention to what you can do to improve yourself and your business.

When looking at your business, are you working “on” your business or are you working “in” your business?  Do you study trends?  Meet with other industry experts?  Review and revise your business plan?  Do you educate yourself on what is currently happening in the marketplace?  Are you obtaining designations?  Are you involved in your association and hear different points of view on what is happening in the industry?  Do you have the right team members and are they in the right job to ensure your success?  Take a look and see where you can improve on your business.

Where are your marketing efforts, marketing dollars and time going and are you seeing results?  How do you know if you are getting results?  What tracking systems do you have in place?  Have you researched other advertising venues?  The question is – are you a secret agent?  Make yourself known in the market but do it wisely and inexpensively!

Have you determined who your ideal client is for you and your business?  Are you spending time or better yet, wasting time with people who don’t fit your profile?  If you are – why?  By working with those outside of your parameters can cause frustration, higher stress levels and drain your energy.  If people won’t help themselves, why should you help them?  Take the time to define your ideal client then spend your time finding and helping them.  You will be much happier and have more energy when working with them and your business will prosper.

We just hit on finding your ideal client so let’s review your prospecting strategies.  How are your sphere contacts?  How often are you communicating with them?  How are you communicating with them?  How are you building your database?  How broad is your database?  How are your networking skills?  Are you referring prior to asking to be referred?  Are you getting out in front of clients or are you hiding behind your desk either at home or in the office?

How do you measure results?  Is it number of leads?  Sales?  Hours worked?  Your pay per hour?  Have you analyzed and determined if you are getting the results you desire?

How is your education?  How is your knowledge of the contract?  The listing agreement?  Can you recite each paragraph and reference its number without having to see it?  Do you know what the right advice is to give your clients based upon how the contracts read?  What addendums are you using and are you intimately familiar with what they mean?  Are you obtaining designations in areas of our business that will help your clients buy and sell real estate in areas like distressed properties, green designations or with your Accredited Buyer Representation designation?  Are you attending training?  Seminars?  Are you building your educational base to help your clients?  You’ve got to learn more to earn more!

If you continuously improve in each of these areas – consistently – you will get results and obtain the success in our business you desire.  Get it?  Got it?  Good!

Now, go sell something!

Platinum Group – November

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PG1

Don’t wait to put houses on the market – multiple contracts
at $875,000 in Lansdowne – needs work but 7,500 sq ft on three levels – people
waiting in line to buy

Reasons to list today – you know what prices are today, you
know inventory levels, you know what  rates are today, buyers who are looking this
time of year are serious buyers

Where do you price properties and why – psychology of buyers
or internet strategies of being on the number for search engines – when market
is hot, it doesn’t matter – analyze DOM and number of showings in first week in
same area at same price

Agents continue to be agitated over short sales when
expectations are not set up front.  When
expectations are communicated from the beginning agents are easier to work
with…also, don’t burn bridges with agents who pester you – don’t blow off agent
because they are keeping your feet to the fire.

CDRS – America’s Home Rescue Short Sale process is the
program to work with when dealing with short sales

Write addendum to contract outlining your process for
handling the short sales – communication the time frame, your communication
frequency and type, who communication is with and when and why then have buyer
sign.  Are you committed?  Are you sure this is the right house for
you?  Are you prepared for the process to
take several months?  Will you be ok with
not hearing from me, as the listing agent for sometimes weeks at a time?

The foreclosure report: 
sense from Kent Eley and Fannie Mae is 2nd quarter of
2010.  Administration is trying to be
gentler on folks and not kicking them out in winter and around holidays as well
as push loan modifications.  Also, money
given in stimulus package, banks were told not to foreclose by try and work the
loans out.  Other agents feel that it is
the ignorance of the bank and no one moving fast enough because no one is
giving them direction on what to do as banks are overwhelmed.

Is anyone specifically marketing to get move up buyers into
the market?  What are you doing to get
the word out because most people don’t know or understand what was in the
extension.  Email campaigns, newsletters,
phone calls – just do it. 

Quick analysis: 
Market on upswing, foreclosures coming in second quarter, MBS are going
to stop being purchased by the government in March, tax credit ends on April 30th
even though you have to close by June 30th – therefore you will make
a majority of your money in the first quarter of next year and you need to get
busy today to take advantage of the future market.

What happens to Fannie and Freddie moving forward?  Who will absorb the secondary market funds?

PG2

RPAC

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  • President has signed the Tax Credit.  It passed by a vote of 403
    to 12 in Congress and by a vote of 98 to 0 in the Senate.  Woohoo, it’s already done!  All the politicians in attendance broke
    bones over this – they broke their arms patting themselves so hard on
    their back voting to get this through when it was a no brainer to begin
    with in my opinion.
  • $6500 credit to people who have
    lived in their house 5 of the last 8 years.  $225k combined income on properties up to
    $800k
  • These measures will spur growth
    but credit needs to be easier to obtain to boost rest of the economy
    nationally
  • Commercial Real Estate and
    retail is a concern – Federal government is only real lessee in town
  • Raising funds for Metro Rail is
    and will be a challenge
  • Must be CRS to appraise
    properties over $1,000,000 – I hadn’t heard this before
  • Questions to ask appraisers
    • Do you have contact
    • Do you have comps
    • Do you know the neighborhood
    • Where are you located
    • How long have you been
      appraising
  • One agent has not had a local
    appraiser in listing for 6 months – take on at State level
  • HVCC sunsets in June 2011 – I had
    not heard this before
  • Must deal w/ deficit issues
    head on and match our deeds to words to stay ahead of China
  • Leading Nations in the
    corresponding centuries
    • 16th – Spain
    • 17th – France
    • 18th – Britain
    • 19th – Britain
    • 20th – United
      States
    • 21st – ???  (Let’s hope it’s not China!!!)
  • Local economy grew 3% Q3
    unemployment is less than 5% in our area
  • Stimulus $$ will benefit Tech
    and R&D industries in our area
  • Knowledge based economy has
    helped our area – no smoke stacks,  plants or factories
  • Heath care is a tremendous
    concern if you’re lucky enough to live long enough we will all have a pre-existing
    condition – things need to change
  • Analyzing how the politicians
    throw around Billions, ½ trillions and trillions like it’s not real money
  • Loan limit rate increase was
    extended through end of 2010 so it will remain at $729,750

Answering the ‘Not So Simple Questions’

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I was recently asked by an old friend, an innocent question
in his mind I am sure but as you can see from my answer it is anything but a
simple question.  He asked, “How will the
market be in the spring?”. 

Here is the response: 

You ask an interesting question which requires me to pull
out my crystal ball.  Here goes my best
guess.  There is a lot of uncertainty of
what can happen in the spring.  There is
speculation that the extension
of the Tax Credit will pass and be offered to all buyers (with
restrictions) through April 30th, then reduce quarterly through the end of the
year until it is gone.  This measure will
help sustain momentum that we currently have in the market – especially in the
under $400,000 market.  In all likelihood
it should pass this week.  This, as
previously mentioned will be good for our market. 

At this time we have very low inventory – it's down 54% from
this time last year.  It has been rumored
that foreclosures
will be released into the market by the banks – the question is, how many
are in NOVA and how will they be released? 
Slowly or just dumped.  If we have
a lot and they are released simultaneously, how far will prices fall?  We have seen the phenomenon of prices falling
with low supply and high demand – it is a true economic anomaly in my
opinion.  If they are released
strategically and are allowed to be absorbed by the market naturally, we will
continue to see a rebound price wise and have a healthier market.  Tying into this question is how soon will
they be released?  This supply and demand
aspect which is tied to pricing is also critical to the strength of new home
sales.  With the cost of land, builders
can’t build product and make money in many areas, they are “shut out” of being
able to build.  Until we see an increase
in prices, many builders will remain on the sidelines.  This carrot of foreclosures has been dangling
in front of us for about a year now. 
Stay tuned on this one as it may be a critical piece to our housing
recovery depending upon how it is handled.

Mortgage interest rates are low now but have slowly
increased upward the last few weeks. 
The government has committed to buy Mortgage Backed Securities through
next spring – to the tune of $1.2 trillion. 
Who will step up to buy these securities in the future?  If no one does, how high will rates go and
how quickly?  Additionally, it appears as
if we see the high loan limit of $729,750 stay at this level for our area, if
it doesn't, how drastically will it hurt the upper price points that are
already experiencing a slower market.

Right now, we have buyers looking for homes, we have low
inventory levels, low interest rates and loan programs to get buyers into
houses.  It is a great time to be in the
market.  Over the next few weeks, we will
see how things play out for the spring – beyond that will require a second
crystal ball.  Hope this helps!

How to Expedite the Loan Modification Process

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As a Member of the Top 5 in Real Estate Network®, I am frequently asked these
days for my advice on loan modification…specifically, how quickly new loan
terms can be arranged. Waiting to find out if your application for loan
modification has been accepted can be a nerve-wracking and frustrating
experience—especially if you’re still receiving late payment notices and
creditor calls. Here are some important insights into the loan modification
process from consumer advocate and author Ralph R. Roberts.



1. The loan modification
process typically takes 30 to 90 days, depending mostly on your
lender. The loan modification timeline, however, is not set in stone. The more
complex your situation, the longer the process takes. Borrowers with a lot of
collateral issues can see their loans take longer than what has become the
typical 30- to 90-day timeframe.

2. A professional can
often reduce the amount of time required by processing your
paperwork efficiently, presenting your application exactly the way the lender
wants it, and knowing from past experience what the lender is able and
typically willing to agree to. Find out how long the process is likely to take
and mark the dates on your calendar.

3. Refer all matters to
the professional who is representing your loan modification.
Anything you say to the lender could confuse things or compromise your
representative’s ability to negotiate the best deal on your behalf.

4. Log all phone calls and
correspondence between you and your lender or representative. Keep track of
important dates. Consistent follow up is paramount to a successful
modification.

5. Explore other
options. If the lender denies your request for a loan
modification or presents an offer that you cannot accept, you will need a plan
B. Consult a real estate agent about listing your home for sale. Talk to a
mortgage broker or loan officer about refinancing. Speak with a bankruptcy
attorney to find out whether filing bankruptcy would be a better choice.

6. You might continue to
receive delinquency notices or late payment phone calls. Push
to have all default and foreclosure actions put on hold while your workout
attempts are underway.

The loan modification process can be long and trying, but doing your part to
keep the process on track by remaining informed can increase your chances of a
positive outcome and reduce stress. For more advice on loan modification,
please e-mail me—I can point you in the right
direction. Please also forward this important information to your social
network; it just might help someone you know.

New Agent/Refresher Series Update

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Our New Agent/Refresher Series was another big hit
Tuesday.  Josh Burruss from Potomac
Mortgage Group reviewed the second half of qualifying buyers to a packed
conference room – again!  Yes, I said part 2 of qualifying because so many
great questions were asked in the first session that we had to add a
second.  It is amazing how our training started off as new agent training
and how many experienced agents have participated in these trainings.  It
is a testament to them wanting to refresh themselves, find out what is new on
the horizon and pick up on a new technique or two in the process.  Josh
had printed his presentation recently and, of course, some things had changed
since.  It goes to show you how our industry changes so rapidly and how
important it is for us to stay on top of these changes so client’s we serve get
the right advice when buying or selling real estate.

PMG1       

Our New Agent/Refresher series features agents that excel in
various segments of our business.  Upcoming events in November
include:  Paul Hunter and
prospecting by referral; Art
Grace and the sales agreement which can be credited to post licensing or
continuing education.  To learn more about our training programs check
out this link or check out our calendar for upcoming events.  As we always
preach – you gotta learn more to earn more.  Get it?  Got it? 
Good!

 

Now, go sell something!