Clifton

It is that time of the month again…

Leave a comment

Platinum Club!  Here is what we discussed…

· Agents are concerned about appraisals – again.  Recently we had an appraiser come from Annapolis to do an appraisal in Leesburg – over 1.5 hours away – stay tuned about how it will turn out.  In another instance, an appraiser did an appraisal in Centreville who came from Frederick Maryland – at least a 1.25 hour drive away and it came in low to kill the deal.  Agents need to personalize themselves to the appraiser and build rapport with the appraiser as they do with any other client or business situation.  Suggestions were to take off lockbox and meet the appraiser to build the relationship.  Also, by taking off the lockbox you can say that you were inundated with showings and contracts and the sellers wanted it to stop to build excitement about your property.  Also, ask if they need help – don’t tell them what they need to know.

· Banks are doing strategic loan modifications to well qualified borrowers to get their loan mod numbers up to the government so they can foreclose on others…very sneaky!

· Sales continue to be brisk under $350,000 when the houses are priced right and are in top condition…it seems we say this every month!!

· It has been an investors market for several months now and will continue to be so for the next few years going forward because of jobs being created here, the strong rental market, low interest rates, affordable house prices and demand from those who have sold their houses through short sales or foreclosure needing a place to live.

· Fannie foreclosure assignments are rolling in but not many other foreclosures are not being released onto the market…of the Fannie listings, only about 25% are able to be placed on the market due to repairs, evictions or improper foreclosure.  Currently there are only 468 foreclosures on the market in Northern Virginia.  Our total distressed market only makes up 22.5% of our market – it is just over 30% in the rest of the country.

· Speaking of distressed properties, sellers are getting HAFA notices after short sales are in process and are requesting to switch to the program.  They are doing this because of the moving assistance credit of $3,000.  Many are doing this even after getting approval for the short sale and then they are getting foreclosure notices and completely screwing up the sales in the process.  People’s greed will never cease to amaze us!!

· It appears to be somewhat of a quirky market in a lot of cases…houses that are gorgeous  and priced right that the agents thought would sell quickly are sitting on the market and those they thought would never sell because of price, condition, location, etc are flying off the shelves – you never know what’s gonna happen.

· Quick pieces of advice – market to your sphere, talk to your sphere, stop by and see your sphere, and additionally, grow your sphere.  Network with others, know your numbers, know the trends, be a provider of valuable information and be a great communicator.

The networking with these other top notch professionals is an opportunity that should never be missed when invited to attend.  The jokes, camaraderie and discussions make you feel great and truly pump you up on the business.  Plus it is an opportunity to convey to clients what other top producing agents are saying about the market in an invitation only – exclusive environment.  Don’t miss it again.  Get it?  Got it?  Good!

Now, go sell something!

What makes a TRUE leader?

1 Comment

It is one of the most debated questions amongst business owners, community groups, and associations.  There is no exact answer, but there are a lot of opinions and there are a lot of questions surrounding this topic. 

Are leaders made or born?  Is there a “ladder” one must climb to reach the top and if so, does each rung need to be touched?  Are there those who just show up, participate in activities and deserve to be the leader because of tenure or can one be recognized for achievement, ability and knowhow and be placed into a leadership role ahead of others who have “played” the game?

One of the best characteristics of a leader is charisma.  Are people attracted to and want to learn from an individual because of how they carry themselves?  When they enter a room do they command respect and recognition from others?  Do people seek them out and ask their opinion both privately and publicly?  Are they confident and approach others easily and vice versa?  Are they warm and welcoming?  Do they smile easily and genuinely?  Do they express empathy and convey understanding?  Do they dress and play the part of a leader?  If so, this person is on their way to leadership.

Do they have a rolodex of other leaders?  Do they know the owners of other companies that are not only local but national in scope?  Do they have the ear of these professionals because of the respect they earned on the streets?  Are they actively involved in their business as an owner who has been through tough times and pulled themselves up by the bootstraps and in turn inspired others to do the same or did they just go through the motions and accept what others told them to do?  If so, this person is on the way to leadership.

Do they accept and embrace change and look for another way of approaching how things are done?  Do they do the same thing others have done because that’s the way it has always been done and always should be done or do they break the mold?  Are they satisfied with the status quo or are they looking for ways to build a better mouse trap or continuously improve upon systems and processes?  Are they able to analyze situations to know when to say when and forge a new path or direction and have others follow them in the new direction?  Are they quick to adapt to different situations calmly yet quickly?  If so, they are on their way to leadership.

Are they able to communicate well with others across multiple platforms as well as across generations?  Do they know how to “speak” with people on their level and motivate them to accomplish more than they would have had they not met this person?  Is their communication concise, responsive and consistent? Are they comfortable speaking one on one as well as in front of groups publicly?  Are they often asked to participate in events, conferences or outings because of their ability to communicate with others and how they are perceived?  If so, they are on their way to leadership.

Do they accept accountability and encourage others to be held accountable?  Do they expect the best from themselves and motivate others to expect the best from themselves?  Do they praise publicly, early and often?  Do they correct others privately and help set a corrective course of action for improvement in performance?  If so, this person is on their way to leadership.

Are their time management skills in place?  Do they have the ability to juggle many balls while accomplishing them all well?  Can they delegate well to others and get the most out of them so that the job is done properly, every time?  Do they allocate the appropriate amount of time for others and empower them do the same?  If so, they are on their way to leadership.

Are they actively involved in all aspects of their business?  Do they attend conferences, seminars and trainings both locally and nationally?  Are they often asked to be a speaker at these events?  Are they involved in their association and have they been involved with it on multiple levels?  Do they have several revenue streams within their business which gives them a broader perspective on the business or is their approach to the business more narrowly focused?  Are they considered to be great networkers?  If these qualities are possessed by someone, they are on the path to leadership.

Are they able to clearly state their vision?  Is their vision clear and concise?  Is it one that inspires others to follow and want to be a part of as well?  Is part of their vision and mission to refer easily and be open to receiving referrals as well?  Do they share their knowledge, skills and abilities with others freely and openly?  If so, leadership is in this person’s future.

Obviously, it is difficult to find someone who possesses all of these qualities and this person should be embraced and accepted into leadership without reservation.  In addition, others may possess some or many of these characteristics but not all and should be given consideration for lesser leadership roles until they develop the qualities necessary for leadership positions.  Get it?  Got it?  Good!

Now, go lead someone!

What’s going on in our crazy market?

1 Comment

What a great event – the broker owner conference in Denver – turned out to be for all of those who attended.  The networking was excellent as always but it was the content of all of the sessions that had the most impact on us.  Michael Abrashoff delivered the key note address on leading your company.  Many of us are coming out of the survival mode and into the “new normal” economy so his message on leadership was very timely.  Each of the breakout sessions covered aspects that are relative to our industry today.  Topics included:  how to take advantage of the market we are experiencing, how to increase your exposure on the internet as well as marketing ideas to help you generate more business.

It is important to attend events such as these to get an understanding of what other agents and brokers are experiencing today, to hear what industry experts are forecasting for our market going forward and to get tips on making you a better agent to become a more professional business person.

Here are a few ideas that were discussed:

· Banks have only released 30% of their inventory up to this point

· Short sales on average are sold at 15% discount – foreclosures are sold at a 35% discount so banks are going to adapt and begin to accept more short sales and are even considering principal reductions on loans of 10% because they will save money in the end

· Interest rates are going remain at this level for several more months

· The job market is stabilizing

· The US Dollar is stabilizing

· The bulk of the Stimulus money is being released in 2010-2011

· There should be 5.5 million home sales in 2010 – 5.2 to 5.3 million in 2011

· 14.75 million houses are underwater – 9.1 million have negative equity of 20% and 4.1 million are have negative equity of 50%

· Foreclosures will continue through 2012 and will begin to slow in 2013

· 70% of all loans are being handled by 4 banks

· 1.7 million GSE loans are 60+ days past due

· Government agencies hold almost half of all REO inventory

· Strategic defaults may have peaked

· Chase is no longer doing short sales so be sure to let your clients know!

· Foreclosures accounted for 31% of Q1 sales – distressed properties accounted for over 50% of all sales

· Investors make up 20% of the market today and will represent 50% over the next 3 years, so it’s time to get educated on working with them to capture this piece of our market

So what do you think the moral of the convention was for most of us?  Get busy understanding distressed properties, how to handle short sales, and the options sellers have going forward.  Get it?  Got it?  Good!

Great information was shared last night at the Real Estate Information Exchange!

Leave a comment

Real Estate Information Exchange news you can use!

 

· Fannie Mae & Freddie Mac have been ordered to delist from the NYSE because they have been trading below $1 for more than 30 days. The delisting will be effective July 8th .

o   They can still post filings w/ the SEC

o   Investors will be able to buy & trade on the over-the-counter bulletin board (I attached a definition)

o   Trading on the over-the-counter bulletin board will cause the trading volume will drop, prices will deteriorate further, price volatility will increase it will become more difficult to trade a large number of stocks

 

·     Housing starts fall

o   Housing starts in May fell 10% from April (but up 7.8% from this time last year)

o   Building permits are down 5.9% from April (but up 4.4% from this time last year)

o   Builder confidence is dropping due to problems with obtaining financing, faulty appraisals, competition from short sales & foreclosures

 

·      Senate approves extension of Tax Credit Closing Deadline because of backlog of closings due to close by June 30th…homebuyers and lenders now have until September 30th to close on their properties!

 

· Bank of America has converted an additional 16,000 homeowners from trial to permanent loan mods this past month….bringing its total to 70,000!

o   HAMP is B of A’s biggest effort and have completed 71k non-HAMP mods so far this year

o   Total delinquency rate (according to Moody’s) among 2005-2008 subprime loans peaked at 54.4% in Jan. 2010 and since then the rate has began to decline and as of April is 51.5%

o   24% of delinquent borrowers in Feb were current in March

o   Expect that 50-70% of permanent mods will eventually default…wow! Because negative equity is such a significant driver of default (the level will depend heavily on the successful implementation of principal forgiveness)

 

· VA Dept of Health recommends denying 2 applications for a Haymarket Hospital – just so you know what is happening in our area…

 

· RIS Social Media conference…lots of good information, you have to leverage social media in your business… it’s the future. If you would like to learn a few tips, set up a time to meet with me!

 

· Josh Burruss of Potomac Mortgage Group briefed us on what’s happening in the mortgage side of things.  New Disclosures! Undisclosed Debt Disclosures and New Debt Acknowledgement at Closing form.  Credit will be pulled for FHA borrowers 3 days prior to closing and these forms have to be signed confirming that no new debt has been incurred during the time period while we wait for closing.  This can hurt a lot of buyers whose credit scores are one or two points away from being in the poorer credit zones. Stay tuned as things seem to change daily.

Why salespeople are successful!

2 Comments

I recently wrote an article about why agents fail and thought I should counter that article and mention why salespeople are successful.  Here are a few tips to help you know why agents are successful:

· They are continuously prospecting.  When at their kids games, or at the grocery store and any place in between, they are adding people to their database to increase their chances of receiving a referral.

· They can communicate their value proposition to those they meet.  They know why they are in the business and how to let people know, in an informative way of why they should buy or sell and use them as their agent.

· They know the market, stats, and trends and can repeat them quickly and easily.  People love to speak about real estate and if you can be the information provider, you will become a trusted advisor to them and receive more leads.

· They know why today is a good time to buy or sell and can state 3 examples of why this is the case.  People need to know the “real” reasons why now is a good time to buy or sell a house that is factually based and personal to their situation.

· They further their education above and beyond the minimum standards of continuing education.  Agents who earn designations and can communicate why the designation is important to the client earn more money than agents who do not earn a designation. 

· They are continuously networking with business people, previous clients and other industry professionals.  They join BNI, chambers, or start networking groups of their own to increase their databases and get more opportunities for referrals.

· They have a plan and work their plan.  If you don’t have a business plan, develop one today!  Your business plan will give you the direction you need to be successful and give you a daily plan of action to accomplish your goals.

· They utilize social media as a tool to market themselves and their listings and services.  It is a fact – social media is here to stay.  It is time to embrace this phenomenon and get online.  Blog, get on Facebook, Linkedin, Plaxo and reach out to your database to let them know you are in the business and you are successful in it.

· They communicate the value of working with a Realtor and subscribe to the code of ethics.  They are professional and show it through their actions and interactions with others.

· They are results and solution oriented and don’t dwell on the negative situations they encounter.  They look for the educational value or learning experience in each opportunity they face.  Failure is approached as learning experience not a negative one.

· And lastly, they have positive attitudes and attack each day with enthusiasm.  Be an example to others in how you approach situations with optimism and passion and results will follow as they do with other successful people.  Get it?  Got it?  Good!