platinum club

Got to love great real estate minds….

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Wow, what Platinum Group today.  Agents are feisty, fed up and frustrated with lenders.  Issues were flying across the conference room fast and furious.  The question was asked – How’s the market?  Here is what came about – Financing problems are prevalent.  Some owner problems by not disclosing full details – not telling agent about businesses, tax situations or other properties owned.  But most seem to be lender problems – mainly, not telling the truth.  One lender didn’t tell the agent the Visa expired, said application was in all paperwork submitted and nothing was turned in – contract and lender letter said conventional then switched to FHA at appraisal time.  Lending guidelines are too strict, lenders are too ambiguous and regulations need to be relaxed to make well qualified, legitimate buyers home owners.  We are held accountable to performing at a higher standard and the lenders are not – it is a huge problem!  Lenders need to adhere to a business standard – develop one, make them sign it and if the lender doesn’t, don’t use them.  They have no skin in the game, no accountability and no repercussions.

Agents have buyers coming out of their ears.  Listings are being shown but there doesn’t seem to be any sense of urgency from the buyers.  Move up buyers seem to be lurking out in the market as well.

What prices are selling?  The lower price points are selling – mid price points are coming down and languishing on the market.  Prices are up year over year but are dropping month to month since July.  Keep an eye on this trend through the winter.  Prepare sellers to price competitively from the beginning or the house may not sell or you will end up chasing the market.

Are foreclosures coming?  Agents are not doing BPO’s, short sales are down, and notice of trustee sales in the papers is down so the answer is not now.  Asset managers don’t have any idea of what is coming down the road either.

How are short sales progressing?  One has been in process 2.5 years – has had 6 contracts and still not approved – it is a Bank of America deal…no surprise.   We had one agent had 3 short sales drop out last week.  Another one has 10 under contract and they are languishing on the market.

Is the loan limit reduction hurting your business?  It has had only a limited effect on the agents in the group.  Only one deal has had an impact with 10 agents and multiple transactions in process.

Agent’s years are about the same as last year.  Their volume is up but units are down but overall, income will be the same – we will see how the loan limit reduction will affect us next year.  How will 2012 be for you?  Spring is going to be strong.

All the agents agreed that this was one of the best meetings we have had which is great.  The energy was high, there was lots of passion and everyone left with enthusiasm.

Now, go sell something.

A meeting of even greater minds…

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One agent says it is slowest quarter in 3 years but he also agrees that results he is achieving are a direct result of the activities he has participated in the previous 120 days.  We all know what we need to do – you just have to do it.  Others continue to stay busy.  Here is the office activity the last  few weeks:  36 sales 14 listing, 18 sales 10 listing, 30 sales 20 listings, and 20 sales 5 listings  – a little up and down don’t you think?

Houses have to be jazzed up – granite, stainless, hardwood floors but most importantly price.  Buyers want everything in the house with nothing to have to do to fix it up and at the lowest price.  Pricing is a fine line today…price it right, not a little high to getter done

Banks are negotiating cash or financing loans to offset the differences.  Joe negotiated a deal with bank, they were $250,000 upside down bank wanted $40,000 cash to close – he negotiated $30,000 loan for 10 years no interest or $15,000 cash at any time.

Inventory levels are up – where is the market?  Not completely crystalized on the next quarter and what it is going to bring us.  Rates need to bump up to get people off the fence – we keep saying they are going up but they are at the lowest point this year.  Only things selling are the “good” deals are selling.  If nothing grabs the buyer, it is not selling. 

New homes are doing really well.  Brambleton had a record year last year – 354 sales last year and through the end of April they had sold over 200.  Toll Brothers has sold 52 year to date in South Riding. – Broadlands is crushing it too.  Pulte at East Market is selling at a record pace because of price and location.  Stanley Martin is ahead of last year’s record pace.  And NV Homes sold 7 homes in Saranac versus 1 for Brookfield – not many other new homes for sale

Sellers dominate the landscape amongst the agents in Platinum Club.  If you need new buyers – hold open houses:  18 people went through one open house last week in Centreville, 47 people went through another one in Fairfax – Home Buying Seminars are working now too, one agent had 50 people attend – internet advertising is working too.  You have to be actively involved in the business to get business.  Buyers have so many avenues to find properties plus they have access to so much information that they feel they don’t need an agent.  You need to develop relationships, get referrals and build the bridge or else you won’t get them – best way is to have a face to face buyer presentation.  Therefore, the adage of listers last will ring true for years to come.

First time buyers are getting bumped out who are using FHA loans – cash, conventional and even LFMI loans are beating them out.  The first time market continues to be red hot.

You have to meet appraisers now more so than before to get the house to appraise.  Most are open to your feedback so show up and do your job to protect your sellers and your contract.

Google yourself and see what happens.  Get it?  Got it?  Good!

Now, go sell something!