Here We Go Again

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Platinum Club October

Asset managers are checking up on their listers to make sure
properties are being marketed properly. 
If you are listing foreclosure properties – tighten up if you want to
keep your listings!

2nd quarter is when the next “wave” of foreclosures
is to be released – here we go again!

3 month moratorium on foreclosures is more here say yet
properties are going to foreclosure in November.  Apparently, the banks are going to do away
“stages” of appraisals.

Ekko works well with short sales, S5 is OK –nothing above
the others, and Advanced Title gets them done.

Banks have stacks of short sales to work through – Bryan had
4 approved in the last week – 1 in 70 days, 2 in 3 to 4 months and 1 in 6
months.  It seems as if the Asset Manager
makes all of the difference not necessarily the bank. 

Take short sale listings to generate buyer s leads and close
them because chances are your listing
won’t close.  Short sales make the agents look incompetent.

Buyers are indecisive and becoming unrealistic – coming up
with excessive home inspection lists.

Upper bracket prices continue to fall and those buyers are
more cautious.  People are backing out of
remodeling contracts as well – the economy is their excuse of why they aren’t
moving forward.  National news and lack
of details about our market is making them uncomfortable in both scenarios.

Are there more listings coming on the market?  The answer is yes – inventory is low put it
on now.

Builder activity is on the rise.  One builder, Van Metre is up 40% and is
raising their prices – NVR posted a 50%
increase over last year’s sales.

We all believe Tax Credit for first time buyers will be
extended.  As previously discussed each
real estate transaction “touches” 29 different industries and generates $62,000
in capital to the economy.

We also believe that the loan limit will go back to $625,500
and remain there as prices are lower – we all have had fewer sales above the
$700,000 price range.  Also, the
government may want to diminish their exposure and not raise it back up.

Condo associations need to be proactive to get their
properties approved FHA after November 2, 2009 – no one has heard of any
associations taking the lead.  Be sure to
make sure the project is in process of approval prior to finalizing
contacts.  No more spot approvals with
FHA after this date.  Here
are the outlines of the program
– lots of questions are still
unanswered.  Will this kill the condo
market?

What does all of this mean? 
Professional Realtors are more valuable and more needed today more than
ever.  Get it?  Got it? 
Good!

Now, go sell something!

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Great Opportunities and Great Information!!

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Quick update on upcoming important company functions:  www.demandsuccesstoday.com
is on October 28 from 9 – 12 – register today, Continuing Education with Champion Title on the new HUD-1 from 2
-4 at the Sully District offices on 0ctober 28th, and short sale training with America’s Home Rescue from 9 -12
in Chantilly.  Also, there is still time
to get in on our Annual Business Planning this weekend.

Due diligence in dealing with our transactions is more
important today than ever before. 
Recently we have had experiences with leased propane tanks, fuels and HOA
docs.  Read, and reread the contract to
know what to say when situations arise. 
Knowledge is power people!!

What do you need to do when dealing with short sales and the
HUD-1’s?  Add 9 months of taxes, and HOA
dues to whatever is past due currently so there are no surprises to the
noteholder when the approved HUD is 6 – 9 months old and the numbers don’t add
up.  Are short sales getting easier?  We don’t think so!

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Jason Smith

Foreclosure inventory is down

Sales are getting easier – when dealing with arms length transactions

Houses are staying on the market a little longer so urgency
isn’t as great

Inventory is stable over the last few months but still way
down from the beginning of the year, month’s supply is consistent, rental
market is tight right now as well.

Appraisals continue to be issues on all fronts.  We have experiences with appraisers who are
inexperienced and bring in numbers way too high or way too low – it continues
to be a crap shoot.

Pat
Cunningham

Condo sales – starting November 2nd – approved
condo rules are going to change.  Spot
approvals are going to more difficult

Rates have inched up about ¼ – ½ point over the last few
weeks – they will continue to rise

Flipping rules may come into play with conventional loans
when they require Private Mortgage Insurance. 
Be careful if you are selling a flip.

Wall Street Journal ad between NAHB and NAR was published
today.  The ad showed that $28 billion to
the economy because of jobs.  An average home
sale generates $62,000 and involves 29 different industries are effected by
each sale.  It is good for continuing
momentum

Homepath financing is for Fannie Mae owned properties and is
offering special financing options. 
Conventional loans, 5% down, no MI, no appraisal, rates are only ¼ to ½
% higher, investors can get in for 15% down and there are no income
requirements plus credit score only needs to be above 660.  Check out www.homepath.com.

No new news on keeping the loan amounts at $729,750 after
December 31st.

Agents shared details on various properties throughout the
area as well as buyers they are working with to try and get them into homes
prior to going on the market.

Our next exchanges will include a commercial agent and
appraiser to keep us up to speed on those aspects of our industry.  Keep learning so you keep earning.  Get it? 
Got it?  Good!

Now, go sell something!

It’s time to invest!

What was the first thought that came into your mind?  Was it about the stock market?  Or was it about buying investment properties?   Perhaps you thought it was getting others to invest in the previous two areas of opportunities.  Now, what do you believe this statement is about?  What does invest mean?  Dictionary.com says it means :

1.

To put (money) to use, by purchase or expenditure, in something offering potential profitable returns, as interest, income, or appreciation in value.

 

2.

To use (money), as in accumulating something: to invest large sums in books or education.

 

3.

To use, give, or devote (time, talent, etc.), as for a purpose or to achieve something: He invested a lot of time in growing himself personally and professionally.

 Well, taking this into account, my intention was that it is time to invest in yourself and your business.  The top companies in the world invest in their people – you should invest in you as well!  If companies do it, why don’t you?

The real estate market, the economy and your business are not out of the woods yet.  Yes, some aspects of the economy are stabilizing but we have a long way to go – foreclosure numbers, default rates, and unemployment rates (although reported to have slowed) continue to rise.  Therefore, now is the time to invest in your business.  It has become obvious to me that during times like these, many agents get too involved “in” their business when in fact, if they want their business to soar to the next level, they should get involved working “on” their business – today.  It is time to reflect on what is working and what isn’t – where are trends in our area heading – who are key players in the industry and what are they doing – more importantly, what are you doing?  Are you attending training?  If not, why not.  If you are involved in foreclosures, are you going to conferences out of town to meet new people, strategize and get new accounts?  If not, why not?  If you are doing short sales, are you meeting with experts who are experiencing success in the business locally and nationally to learn more about trends and what they are doing to be successful?  If not, why not?  Are you taking advantage of the free educational opportunities your association is making available to you?  If not, why not?  Are you taking advantage of one on one opportunities with your broker, fellow agents or a coaching program to help get through the market we are in and are going to encounter?  Again, if not, why not?

These examples could go on for some time.  It is my belief that you need to get out of your house, get out from behind your desk and educate yourself or else you will be left behind – doing what you’ve always done and get the results you’ve always gotten will not propel you to success.  Times change, programs change, economies fluctuate and you need to as well if you want to succeed now and in the future. 

It is important not to confuse activity with accomplishment.  Determine what you want to accomplish and what you need to do to achieve what you set out to do.  If you get willowed in the mire of day to day activities, put blinders on to what is happening around you,  get out and network with others, and ask yourself how can you accomplish “big” things in your life.  It is my opinion you need to invest in you today.  Attend trainings, get coaching, attend business planning (it’s not too late), get a designation, attend mastermind sessions, go to real estate information exchanges.  Take the time to get educated – NOW!  Get it?  Got it?  Good!

Now go sell something!

How disappointing!

It is disappointing to be ranked so low in the consumer’s mind as to how we handle ourselves relative to others in sales.  What I am referencing is most consumers rank Realtors very close to where they rank new and used car sales people.  In the past month or so I have shopped for a car for myself, helped our company vice president and lastly, my mother.  We have looked on used car lots as well as luxury new car lots.  We explained our situations – my lease ends at the end of October, one car broke down, and one car was totaled – basically, we all had an immediate need.  How many have followed up when we told them exactly what we were looking for in our next vehicle and what our situations were  – um – zero.  How many wanted to sell us something we didn’t want – um – all of them except 2 out of about 20.  How many were obnoxious, overbearing, unprofessional, made us feel uncomfortable and made it difficult for us to leave the lot – um – again, all except 2 out of about 20.  As a result of this experience, I asked myself, “why was this case”.  How can Realtors be compared with sales people who exemplified this behavior?  Do we truly have that many untrained, unprofessional agents in our industry? 

Let’s examine what we had done with our shopping experience and how others in our industry can improve if they exemplify the used car sales approach.  In our journey, we had tried to make their job as easy as possible as I don’t like to be sold.  We had partially qualified ourselves for them by telling why we were there, what we were looking for in the next vehicle, how much we wanted to spend, how soon we needed our cars, and that we had our financing lined up.  So, what was the problem?  First, I don’t believe they have been trained in professional sales.  The biggest problem was, they didn’t listen – they were too concerned about making a sale.  Had we not prequalified ourselves, I don’t believe they could have done it for themselves because they weren’t focused on us – only the sale.  They didn’t ask any follow questions like, what kind of cars we had – what we liked about them – what we were looking for in the next car and why – had we looked anywhere else – what did we find there and what did we like or not like.  They were too busy talking and definitely didn’t ask us any questions to build rapport.   The only way they knew what I did was because I gave them my card to follow up with me.  Guess what?  They still didn’t follow up with me – at all. 

As professionals we know the basics of sales which are:  people buy from those they know, like and trust.  If they are so busy talking about what we don’t want to hear, how can this chain of events happen?  The agendas we followed was not ours but theirs – they wanted the sale.  They believe that they had to speak the whole time to be in control when the fact is, those who ask questions are the ones in control. 

Their technique of closing was so far off it was laughable.  We wouldn’t buy from anyone who subscribes to the ABC theory of sales…Always Be Closing.  Don’t close until you know enough about your client so you can help them make the right decision.  Closing is an evolution not a forced approach to sales.

In order to build trust, demonstrate your knowledge of your business.  Listen, clarify, then respond to clients don’t oversell and force yourself on others.  Dress the part, be polite, and communicate effectively.  These skills will result in sales, I assure you.

So the moral of the story is – if you want to attain more sales as well as referrals you need to differentiate yourself from other sales people.  Start by prequalifying effectively, ask lots of questions and then, listen to the answers – don’t tell.  Don’t sell from an empty wallet you are looking to fill, put their needs/agenda ahead of yours, people can sense this immediately.  Build rapport by learning about them and what their needs are.  Have an effective follow up system in place to show your professionalism.  Act, look, and communicate the role of a professional.  Close at the appropriate time in the process – not continuously – it turns people off.  If you follow these little techniques, you will attain the success you desire.  Let’s elevate ourselves from the lower ranks of sales people!  Get it?  Got it?  Good!

Now, go sell something!

Walter Bond, Kathy O’Neal…what a great day of speakers!

Walter bond
Today’s speaker at our exclusive business development group
Accelerent was Walter Bond who amazed the crowd with his personality, flair and common business sense to help us “sell” our way out of the recession.  Here are a few of his tips:  strive to be the top in your business – whatever your chosen field may be; connect with people – don’t just communicate; execute the principals of the of your business – be fundamentally sound; differentiate yourself and most importantly be likable!  As we know, people buy from people they know, like and trust.  They know you by branding yourself, they like you because they you “connect”/build rapport with them and the trust you through your knowledge, skill and expertise you display in your business.  Also, to be the best, carve out your niche!

Our Top Producer Panelist in today’s training was Kathy O’NealKathyo
 

Team of 3 plus Kathy

Unlicensed assistant – visual tours, schedules appointments, client coordinator

Part time IT guy – does videos, website design, blogs

Husband – writes blog, works internet stuff, but they don’t do twitter or Facebook or Linkedin

Kathy – the face of the team

Videos are of testimonials, interview Kathy, buyer process – people know you before you meet them – think about

Incorporate video into your program – financing, seeing properties, writing contracts, settlement, foreclosures, short sales

Now send video emails introducing yourself

Keep up with past clients – know market area – newsletter – client party (cut down Christmas Trees nic– birthday cakes about

Podbeam – podcasts that are hosted by another

Blog a few times a week – interview clients, potential buyers

Thoughts on the market – under $400 is hot – people who would put house on the market don’t know they can sell their house in today’s market – not enough houses for sale – lots of buyers out there – not enough move up buyers – not too many appraisal problems – think prices are coming down, sell now – foreclosures are coming so not sure how this will affect values, we know where it is now – appreciate agents who answer phones

Keys to success – do the basics, good service, keep up with your client base, figure out what you do well and keep doing it, keep up with the market, connect with people, be a real person, look for new trends. 

Here are the numbers!

 Active inventory is down 56% from 2008 with onluy 5,850 active listings on the market. The vacancy rate is holding steady at 28% of the market leaving us with a 1.7 months supply of houses for sale.

The rental market has a 1.9 month supply of rentals on the market with 3,004 properties currently for rent.

Now, go sell something!

 

Another GREAT Real Estate Information Exchange last night!

It was a terrific turnout – we had 25 people attend.  Thanks for all who came out to be educated!  Here is a synopsis of what was discussed.  Hope to see more of you next time!

Scott MacDonald:

Market Update…builders have said activity and contracts have been up. The summer lull is gone and activity is picking up. Great news for us! In talking to other agents, they are saying the same thing. It’s important to tell your sellers that the market is still price sensitive. There is still activity, but it’s important to get the house priced right to get it sold quickly.  We are still seeing multiple contracts. BPO’s are picking up as well.

Leslie Wish – SunTrust:

Rates continue to be great.  Phones are ringing off the hook with buyers wanting to close by the end of the November.  It is better to close prior to Thanksgiving and not wait.

Lenders are skittish on condo loans because of litigation against the condo association – any litigation no matter who is suing whom, no conventional loans – FHA loans will allow “some” litigation.  Lender questionnaire will bring to light lawsuits and delinquencies.

Scott Mayhew – NuStart Credit Restoration:

Pull credit report to see what issues are with the report.  Typical problem takes 90-120 days.  Process starts with letter writing – it is a must.  The letter must state name, address, loan number, discrepancy, timeframe to correct and expectations of resolution.  Only way to dispute discrepancy is to state the loan is not late or not mine – this is the only way to get it removed.  The letter must be signed in blue ink.  Lender has thirty days to respond with exact amount owed and details of delinquencies.  Consumer must write letter – not company.  Proof of accuracy letter must be returned by lender – if not, need to send another letter stating they have violated.  Paying off credit cards end of month doesn’t give you a great credit score.  Inaccurate data CAN be removed from credit report.  If your mortgage is 30 days late, it will show up on your credit score is 100 point deduction, it used to be 40 points.  Credit rating goes from M1 to M9.  M5 is about a 40 point hit.  Tell short sale clients to have bank say paid in full as agreed and not to rate short sale higher than an M3.  Fee to correct is $395 one person $495 for two.

Keith Barrett – Champion Title

New HUD form is coming out January 1st – you have to be prepared if you want to keep clients happy.  Get caught up on all the changes at 4900 StoneCroft Blvd., Chantilly, VA 20151 on October 28 from 2pm to 4pm.

What in the world is going on in Northern VA real estate?

Well, we are starting to see more activity lately at our listings, more homes are selling than are going on the market reducing our inventory levels, builders are seeing increased activity and sales as well, rates continue to fall, prices are remaining stable, and now is a fantastic time to be in the Northern Virginia real estate market whether buying or selling.  What else could contribute to our market?  We continue to have low levels of unemployment locally compared to the rest of the country – which is a huge positive for us.  As a matter of fact, Virginia was ranked number 1 for an example of how employment has affected their total real estate market.

 

What is on our forefront?  There continues to be the threat of more foreclosures coming on the market but we haven’t seen it here in our area yet.  We have the impending expiration of the First Time Buyer $8,000 Tax Credit or do we?  In speaking with the Former Governor, now Senator, Mark Warner, he indicated he was voting to extend the credit.  Many others in support of this initiative believe this will keep momentum moving in a positive direction with our recovery from the recession as the Housing Market has such a large impact on our national economy.  Interest rates may creep up – but they are so low, they have to increase at some point.  Basically, as stated above, we are fortunate we have the fundamentals to be one of the top real estate markets in the country.

An Enlightening Weekend

As a Realtor, you never know who you will run into to discuss our business.  This weekend was no different for me.  I was invited to attend a political function for an incumbent who is attempting to keep his seat as a delegate for our area.  Of course, Chuck Caputo is the right candidate and the right person for the job and, for our area, we need him to be re-elected.  His views on education, business and transportation for our area far exceed his competitor’s opinions on how to continue to run our region and for us to stay the number one state to do business in 4 years in a row. 

But I digress, at this function I had the opportunity to meet Mark Warner and we discussed our local real estate market.  Our conversation included inventory levels, supply and demand challenges, trends in housing prices, profiles of our purchasers, as well as HVCC and the First Time Buyer $8,000 Tax Credit.  Over the last several years, we have discussed the need to know your numbers, and know the trends in our business and to have them ready to discuss at any time.  As a result of staying abreast in these areas, I was able to accurately convey why we need to address the HVCC issue but more importantly, the need to extend the First Time Buyer Tax Credit.  In our discussion, he told me he was going to vote to extend the credit!  It is a wise decision to keep the housing sector of our economy moving forward and to help continue to bring our country out of the recession.  When it comes to making the right decisions about our economy, we need to knock down political affiliations and work together for the common good.  Get it?  Got it?  Good.

Now, go sell something!

Social Media Training

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Please attend the free event at NVAR – rebarcampdc.com October 27, 2009 – 8:30 – 5.  Please RSVP soon to make sure you get in!

Blogging is an important part of your internet presence – 73% of internet users have read a blog.

Google loves blogs – to get higher in the searches on various search engines – you’ve got to blog.

Blogs enhance your image on the internet.

Use http://technorati.com/ to “ping” your blog and get higher in search engines.

Incorporate videos and hyperlinks into your blogs.

Blogging allows you to present your internet presence to sellers in listing presentations.

Provide information on market, neighborhoods, and industry news to show your expertise in real estate.

Tips for blogging: www.davidrisley/2008/11/50-rapid-fire-tips-for-power-blogging/

Ed says – change or die!  Remember when people complained about the new electronic lockboxes…

Here is the presentation from today!

As usual – THANK YOU Kendall and all of our attendees!

Now, go sell something!

Yesturday’s Economic Summit at GMU

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Michael Fratantoni 

 

-The true unemployment number is up to 13.3% (people who can no longer claim and still don’t have a job) but is report as 9.7% – it will peak midyear next year to a reported 10.2 % similar to the early 80’s

-No pressure on inflation –some deflation happening right now to keep it in check –as an example energy prices are down – a barrel of oil is in the $70’s when a price of $90 to $100 is normal

-Stock market losses $6 trillion slight rebound in Q1 & Q2

– New home sales lowest on record in 50 yrs

-Housing prices nationally are not going to rise until 2011 and won’t stabilize until mid 2010

-The Federal Reserve is largest buyer of MBS 60% currently and they hold $850 billion loans currently they have gone from 0% to 60 % this year and want to go back to 0% by year end.  Will going to 0% add volatility to market?  This is something to watch over the next 6 months when Fed leaves market increase in rates by .25 basis points – Just saw the Fed will buy MBS until March of 2010

-Theme things are looking up slightly but we have huge hole to climb out of

-FHA represented only 2% of loans in previous years.  This year they represent 45%!

-National delinquency survey show 14% of borrowers are 90 day or more late 2.5 million loans

-Prime fixed rate loans 28 million and many of those are reaching seriously delinquency rates – more than 90 days

-Delinquencies & foreclosures are delayed or lag behind employment trends

-Delinquencies – we are up because of jobs being lost

-25% of option arms have been modified or foreclosed on not the problem media has mentioned and continues to mentions as the problem in mortgage market

-Watch bill HR 1728 – Barney Frank

-Allen Jones BOA SS expert is available to us about Short Sales and BOA

Allen.h.jones@bankofamerica.com

Frank Nothaft

-Its going to get worse much worse slower recovery than previous recessions

-After end of 1991 recession unemployment peaked 15 months later

-After end of 2001 recession peaked 19 months later

-Bernanke says we may be out of recession – the question is how long before we peak with unemployment after this recession

-$15-17 billion is the cost to extend tax credit.  The challenge is too many politicians say they didn’t approve of spending gov’t funding to stimulate economy so even though they understood the need to extend they have politically painted themselves into a corner

-Freddie Mac National rebound of prices bottoms out in 2010 and it is 2011 before rebounding

-Lowest interest rate in 50 years

-Prime loans are performing worst since the 30’s – the depression

-Subprime 8 to 10% of loans represent over 35% of foreclosures

-9% of all loans are subprime but they represent 35% of foreclosures

13% of all loans are FHA and they represent 10% of foreclosures

15% of all loans are Prime/Arms and they represent 28% of foreclosures

63% of loans are Prime and Alt-A Arms and represent 27% of foreclosures

-4.2 million seriously delinquent 90 days behind

-To determine if loan is owned by Freddie Mac check out – http://www.makinghomesaffordable.com or http://www.Freddiemac.com

Lawrence Yun

 

No housing bubble it was a credit market bubble

We are overshooting bottom & need stimulus to nudge further back to make our market “normal” again

-From typical NAR survey 3000 responses – HVCC appraisal survey resulted in 30,000 responses1/3 had properties not close due to appraisals

Prices are below fundamental values

All cash purchases are 20 % of market typically low single digits 8 %

Foreclosures will rise because of toxic issues of unemployment & underwater buyers

Full builder recovery not until 2011

Our prices locally are down 20 % were 33 %

Stock market is at 1 year highs

Support tax credit extension  – Wall Street got $700 billion whole economic stimulus $800 billion extending the tax credit will only be $15 billion

NAR is on FB why aren’t you?

See his presentation below!

Stephen Fuller

 

View his updated slides in the link below!

Look for collaboration amongst our peers, share data, share ideas, work together get along 

We in DC are better at looking at bad news!

Dr. Frank Nothaft

Dr. Michael Fratantoni 

Dr. Lawrence Yun 

Dr. Stephen Fuller