real estate news

What’s it all mean?

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Over the last few years we have been providing you with information on the real estate market that we believe is valuable to you and helps aid you in your decision as to whether or not to buy and sell real estate.  Also, our thought is it gives you something to talk about around the office, with your neighbors or at cocktail parties! 

  • But what do all the numbers and terms mean you may ask?  Well, here is a quick guide for you going forward.  The numbers we quote are for the areas our offices conduct a majority of their business.  These areas include Arlington, Fairfax, Prince William, Loudoun, and Fauquier Counties plus all the cities in between like Alexandria, Falls Church, Fairfax, Manassas, and Manassas Park. 
  • Active inventory or resales are the number of houses for sale where the owners are selling their homes and not a builder. 
  • Month’s supply of houses is the absorption rate or sales of homes divided into the number of active properties on the market.  Basically, if no other houses came on the market, it would take that many months to sell all the houses that are for sale.  As a general rule, 6 months is considered to be a balanced market – neither a buyer or seller’s market.  Less than 6 months is considered to be a seller’s market and more than 6 months is a buyer’s market. 
  • Days on the market are the average number of days on the market it takes for a house to sell after going up for sale.  Again, typically the fewer the average days on market the more likely it is to be a seller’s market and the longer the average days on market is typically indicative of a buyer’s market.  In addition, the fewer the days on the market of a particular home, the more likely the sellers are to receive a full price offer or even multiple offers. 
  • This brings us to multiple offers.  It is what it says.  The owners received more than one offer to purchase the home when it was put on the market for sale.  How does this happen?   Typically it is because of high demand for an area because of the school district, location to commuter routes, shopping, etc. along with the sellers pricing the property properly, getting the home in the right condition and the staging of the house that makes this possible.
  • Distressed property inventory are houses that represent short sales and foreclosures.  A short sale is when a home owner owes more money on the house than what the house is worth and they are trying to get their lender(s) to approve a sale for less than the amount owed to them.  A foreclosure is where the owner of the house stopped making payments and the bank took the property back through a series of steps required by the state and allowed through the deed of trust.

If you have any other questions or concerns about the numbers or the terms discussed monthly, feel free to contact me.  As Sy Sims used to say, “An educated consumer is our best customer”.

The bubble burst…Now what?

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What has been the catalyst in spurring the housing bubble and subsequent burst that has left us in the mess we are in today?  Was it the run up of prices?  Was it greed?  Was it poor advice given to buyers by Realtors and lenders?  Was it lax underwriting guidelines?   Was I the government’s proclamation that everyone should be able to achieve the American Dream of home ownership?  The answer is yes to all of the above.

The housing prices escalated at ridiculous rates – far above historical percentages that had been established over decades.  Builders couldn’t build fast enough to satisfy the demand which drove up their prices.  Buyers were having a difficult time being able to purchase a home and therefore bid up the price of the home above what they were willing to pay for a house originally.  It was a stressful and fascinating time to be a Realtor.  Buyers were mad that they had to bid so high to get into a home and sellers were mad at Realtors because their neighbor’s house sold for more money than theirs did – no one was happy.  Yes, over escalating prices were one of the causes that affect us today.

The greed factor came into play with “flipping”.  Many people bought homes from builders.  In most cases, as they went through the lengthy construction phase and because of demand, prices escalated.  You could buy a house, not do anything to it other than wait until it was ready, then raise the price and sell the home for a profit – many times for tens of thousands of dollars more than their original purchase price.  It seemed as if everyone had a story of someone who did this so they tried to do the same thing.  As the saying goes, too many chefs spoil the pot – well same thing happened in the new homes arena.  As prices declined, buyers bailed and builders got left holding too much inventory.  Also, greed came into the picture with people using their homes as a piggy bank and not a savings account.  How many people do you know that refinanced not just once but many times and bought properties, fancy cars, and vacations they normally would not have been able to afford?  Greed is not good Gordon Gekko and it has affected us today.

How many inexperienced, uneducated people got into the real estate and lending business when the times were good?  Hundreds of thousands got into our businesses.  Whose interests were they looking out for in the transaction?  One guess, not the buyers – theirs.  They got into the business for what was believed to be easy money.  They gave advice that wasn’t the right advice about the market and where prices were headed.  They got people into loans that were not right for the people they gave them to and as a result, they defaulted.  Poor advice definitely contributed to people’s over exuberance in their decisions on purchasing and financing properties and it is taking its’ toll on the market today.

Was it the policies that were put into place that lead to lax underwriting guidelines a cause that lead to where we are today?  You better believe it!  These loose guidelines resulted in allowing people who should not have become home owners to become home owners.  In my opinion, this probably had the biggest impact on how everything listed above was able to occur.  What were the guidelines that were slack you ask?  Here are just a few:  debt to income ratios up to 45%, no income no asset loans, loans up to 125% of value if combined with other liens, minimum FICO scores of 620 for prime loans, 10% down payments for financing investors, interest only loans and of course the teaser rate loan products.  Without these underwriting guidelines being loosened, we wouldn’t have had the ability to do all that was stated above.

Was the government’s belief that everyone should be afforded the American Dream of Home Ownership a contributing factor?  Of course it was.  Not everyone should be a home owner.  Credit scores need to be higher to be considered prime.  People should have some skin in the game and not be allowed to finance above the sales price to get into a home.  People need to verify their employment, prove they have cash reserves, and provide tax returns, etc. in order to obtain financing – it is common sense.  The problem today is the virtually the same legislators who made these loans possible have swung the pendulum too far the other direction and are hampering our recovery efforts in the housing sector of the economy.  FHA costs have risen, talk of raising down payments to 20% are going to hurt the market, stricter ratio requirements are in place and the overall costs associated with a loan are up 8.8% over last year as reported by Bankrate.com.  These trends have to stop if we want to see true recovery in the housing market and the overall economy.

Real estate has always been the key to getting the economy out of its slump and the longer housing languishes, the longer we will be in a recession.  What we do know is that more strict underwriting guidelines are not the answer.  Responsible lending and more educated agents and lenders providing the consumer the right information are going to be part of the solution  but getting the underwriting guidelines back in line with reality is the catalyst to recovery.   Get it?  Got it?  Good!

Now, go sell something!

My crystal ball broke…it’s all about the numbers

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Although my crystal ball is currently in the shop, we do know where things stand in regards to the local housing market in Northern Virginia.  Inventory levels of active resales are virtually the same – we currently have 7,640 homes for sale in Fairfax, Loudoun, Arlington, City of Alexandria, Prince William and Fauquier Counties.  This time last year we had 7,680 – pretty similar.  There is a slight difference between these two timeframes and that is in the number of distressed properties on the market.  This year there are only 293 foreclosures for sale along with 882 short sales – last year, there were 450 foreclosures and 1109 short sales.  This result is a difference of about 5% of the total inventory.  The perception is we are inundated with distressed properties when in reality, we have a lower percentage of overall inventory than the rest of the country in relation to foreclosures and short sales.  Our market is healthy. 

We have a 2.6 month supply of homes which is a seller’s market.  Houses are selling when the sellers have them priced right, in the right condition, and staged properly – often times with multiple offers.  We had several agents engaged in multiple contract situations this past weekend with a few of those properties being listed for several months.  We have buyers in our market because we have jobs.  One of our agents relayed a story of his nephew and their job search.  Over 140 people interviewed for a job at an oil change shop in Florida – that’s unbelievable.

Our rental market is strong, currently posting a 1 month supply of homes.  The reason is people relocating into our area are gun shy on purchasing.  This is as a result of a few different factors.  It may be their confidence in the housing market because of where they came from to relocate here, they can’t buy because of a potential short sale or foreclosure on their credit report or they are losing out to other contracts and have a short time to find a property and get forced into renting.  Either way, it is a great time to be an investor in Northern Virginia.

Prices are stable to increasing in the Washington Metropolitan area.  We are seeing price increases throughout our region in several price points.  Typically in house priced below $400,000 (pretty much everywhere) and those priced between $800,000 and $1,200,000 (closer into the beltway and DC).   In addition, builders found their bottom in pricing towards the end of last year and the first quarter of this year and have started to escalate their prices as they have seen an increase in sales of their homes.  Reports show that we are expected to have a 7.4% increase in housing prices in our region compared with -3.2% in the rest of the country – a difference of over 10%.  Again, we have a healthy market.

We also have low interest rates which are fueling our sales – housing is affordable because of rates.  If people are waiting to buy because they feel prices will come down – they are mistaken.  If they think rates will continue to decrease, they are mistaken as rates have actually increased over the last few weeks.  Now is the time to buy.

 

Top Prodcers meet to discuss the market

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It is hard to believe it was the second Thursday of the month already…time and summer sure fly by fast!  Here is what the Top Producers in real estate had to say this month.  If you have questions you would like me to pose to them, please let me know.

Negative news is everywhere.  Some websites even post good news one day and negative news the next.  How do you handle it and when will it stop?  Tell people to look at time frame of ownership – long terms hold will have fluctuations no matter what the investment is – stocks, gold and housing.  Show stats of our area being number one in appreciation month over month.  We are seeing incremental price increases in lower prices.  The news is reporting what is true across the country, we are just jaded because our prices are stable, unemployment is low, and pay rates are low plus they can’t sell houses.  Use the bad news to get price reductions.  Talk about the “cost” of money today and how great rates are compared with other years.

The government will come to an agreement on the deficit so we don’t lose AAA status, rates will stay low and the dollar won’t devalue.  Both sides of the aisle on Capitol Hill will do the right thing and make it happen because if they don’t, we all lose.

Control your closings – select the title company to get information on the lender when agents fail to give you Form 100 – removing financing contingency.  The bottom line is too many agents are not familiar with the contract or the process.  Agents need to be educated and then educate their buyers.

Interest rates have increased recently, have you seen any effects on the market?  Everyone agrees that nothing has really slowed down.  The market remains stable.

Where is the market?  Contracts have slowed down in Loudoun and Prince William counties, agents are busy listing houses and trying to find where the prices should be on their listings and trying to find buyers.  Townhouses are selling well in Western Fairfax County – singles are lingering on the market.

Appraisals are problems for some not for all right.  Appraisers are still coming from outside the area to and are appraising properties low – herein lies the issue.  We need market specific appraisers every time.

What are you going to do the second half of the year?  Some agents are hiring coaches for the second half of the year, focusing on new home construction, and one is bringing in vendors to open houses to provide gift cards to agents who attend.  Others are calling their sphere more frequently and generating leads this way.

The discussions today were lively so it is better to attend if you qualify then just by reading the notes.  Get it?  Got it?  Good!

Now, go sell something!

 

Our donation dollars at work!

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Our Visit to Children's Hospital 
There are times in your life when you feel fortunate and humbled at the same time.  Our visit to The National Children’s Hospital in Washington, DC was one of those occasions.  We are fortunate that our children are healthy and not undergoing treatments that many of the children at the hospital have to endure.  We are fortunate to have experienced the hospital as visitors and not as parents or friends of a patient staying at the hospital.  As a result of our contributions to the Children’s Miracle Network we were able to have a VIP tour of the hospital.  It is an amazing facility that provides unbelievable care to children for any reason regardless if they have insurance or not. 

What immediately struck me was the kindness of the staff from the valet parker to our tour guide Milton to our liaison, Kimberly Lane.  They all truly appear to love their job.  Next was the color scheme and design features of the floors we visited.  The design feature input was made by the families and children who had to have a stay at the hospital.  Bright colors, balloons, and vibrantly colored floors and walls highlighted each floor and gave the appearance of no other hospital. 

The art room is another aspect that helped bring a new appreciation of what the children who stay at the hospital have to endure make this facility a special one.  The children can do art projects  to help them escape their current situation and help aid them in their healing process.  In addition to the art room are the playrooms they make available to the children so they can seek solace and “get away” from the hospital staff in a fun environment.

The hospital rooms offer as much privacy as possible and are designed with three separate sections – medical, patient and family areas.  They are designed to make the stay more comfortable for all involved.  There are also separate “family” areas as well as laundry facilities available so parents can remain close to their children while allowing them to get some time out of the hospital room.

The wall of encouragement is what had the biggest impact on me.  The wall features photos of former patients that told their story, what impacted them most about their stay at the hospital, what the current patients can do stay positive and lastly, who is their inspiration and why.  It was a very moving experience to read how these children coped with their conditions and made their stay a success to help the others become success stories as well.

All in all, it was a great experience and one that I am proud to be a part of by contributing a portion of each sale to CMN and encouraging our agents to do the same.  We highly encourage doing all that you can by helping support us in this cause – one visit to the hospital will get you hooked.  As discussed at our Quarterly Meeting in December, all of our Chili Cook-off donations will go to support CMN as well.  As we expand offices, we will be doing soup cook-offs, barbeque cook-offs and other cooking competitions to support this cause so please let us know your thoughts on how we can make these events even better and well attended.  Get it?  Got it?  Good!

Now, go sell something – so you can make a contribution!

You’ve got to do more to get more!

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Sales is a tough job, no doubt about it, especially today in real estate.  You hear, read and talk about with others that in the real estate business, it is a numbers game.  If you want more results, you have to do more activities, talk with more people, hold more open houses, make more calls, and basically, just do more to get more business.  While this is true, it is only partially true. 

You need to have quality contacts to truly have an impact on your bottom line.  You need to provide value to those you speak with and earn the business or else your bottom line won’t change.  You must engage others buy asking about them, their families, their business, etc. and take an interest in them before you talk about you – basic relationship building. 

In addition, it is not just enough to say you are in real estate and business is unbelievable, you need to have an “elevator speech” about the services you provide, the information you share, and how you are different than others in the business.  If you don’t, why would your business increase?  Holding more open houses, knocking on doors, calling more FSBO’s or expired listings won’t get it done – you need to build relationships.  You need to add value to those you speak with to earn their trust and in turn, you will get the opportunity to grow your business through referrals. 

You need to know what is impacting our business and how that is impacting both buyers and sellers today.  Yes, today because the real estate market changes virtually daily.  How are property values and why is now a good time to buy and conversely, why it is a good time to sell.  How do the low rates effect payments at loan amounts of $250,000, $300,000 or $500,000 and what is the difference if rates go up 1%?  What are house values in your neighborhood, your town, and county for all categories of houses – condos, townhouses, and single family homes?  How many properties are for sale?  What are the month’s supply of houses and what does this mean?  Is it a buyer’s or seller’s market?   What price ranges are hot, who is buying in those price ranges and why?  How is the rental market locally?  How are their prices?  What is their month’s supply?  If you had the answers to these questions, do you believe you would be perceived as an expert by those you encountered and hence, obtain more business? 

You have to know the real estate business, the numbers and the trends.  Where is the market headed and why?  Give your opinion and be able to back it up with facts.  Watch videos, read blogs, read newsletters, network with others in our industry and absorb what they are saying and develop your conversation strategy based upon what you have learned to earn more business.

As previously mentioned, you need to increase your activities but you also need to improve the quality of your conversations.  You need to become an expert in the business.  If you only increase your activities or only gain knowledge and don’t share it with others, you won’t have the same business building results if you do them in concert with each other.  Get it?  Got it?  Good!

Now, go sell something!

Control your destiny or someone else will!

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You are in control of yourself, your life and all that you do in it.  How do you move past the current situation you are in today?  Get educated – learn all you can about your industry or one you want be a part of and become the expert.   It doesn’t take much.  Read for one hour per day in the field you wish to learn.  One hour per day turns into one book per week.  One book per week becomes 52 in one year.  You tell me if you read 52 books on one subject and can’t become an expert, I will tell you, you are wrong.  Most people don’t read one book in a year.  Learn what you have read and apply it to the real world situations you encounter.

Those who know and do more than others in any walk of life earn more respect, get more recognition and go further in their careers.  And, guess what?  They earn more money.  If you want to change where you are in life, you need to change your attitude and regain control of your thoughts, desires and where you want to be.  As the saying goes, “if it is to be, it is up to me”.   So become positive and optimistic.  There are so many negative people in the world and there is so much negative press on the television, in newspapers, etc. and they all want company.  My advice is to avoid these people.  Look at every opportunity as a learning experience and as an opportunity.  Not a problem.  Become solution oriented and you will get results and become even more optimistic and positive.  If you smile more – this too will help you so start with this simple task!  Hang around positive forward thinking people and learn how they handle situations and remain optimistic.  It is a learned skill – teach it to yourself.

Stop blaming others, the economy, the industry you are in, the government or any other excuse.  You determine where you end up in life.  There are countless numbers of people whom have come from every walk in life with every opportunity presented to them and it is the ones who take advantage of what is presented and makes the most of the experiences that gains the most from them.

Other people get tired of hearing negative responses to everything said or about everything that happens around them.  Take the time to figure it out for yourself.  Do something about your current situation.  Don’t be a victim and become a success story and share your story with others.  Life is a contact sport, become a part of it and direct yourself to where you want to go and reap the rewards.

Again, you control your destiny.  Make the most of your time – do what makes you the most productive, consistently and you will get results.  Get it?  Got it?  Good!

Now, go sell something!

What’s up with Gateway? News from our Quarterly Meeting

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The Lorton office is progressing quite nicely – we should be officially open the week of the 10th along with the help of the county.  Feel free to stop by anytime for a visit as we are getting settled in with the technology, and finishing touches.  Hope to see you there soon!  Since this time, we have received our Occupancy Permit – great job to Brett for seeing this difficult process all the way to fruition – it was extremely frustrating and tenuous.

We have a great opportunity to potentially sublease some of our space in Chantilly.  The landlord has a need for the space coupled with KHov’s desire to give up some space so if you see activity over the next month or so, you will know what is happening.  In addition to relinquishing some space, we will be extending our lease for an additional 10 years.

For those of you unfamiliar with the changes at RE/MAX, RE/MAX has changed their name to RE/MAX, LLC.  What does this mean to you?  It puts our Independent Contract Agreements out of date.  In addition, it refers to RSN which is now RE/MAX University, it references Web Roster which is now on Mainstreet and some other minor changes.  Therefore, we have a 3 page revised agreement that we need you to sign to bring us into compliance with the headquarter company.  Kate will be sending out the agreements for you to sign – please do so at your earliest convenience.  Thanks!

The free trip to Vegas is moving along nicely for some – not so much for others!  Joe Doman is in the point standings lead as he has participated in the most trainings, charity events, etc. so far.  You still have time to catch up as the contest doesn’t end until the end of the year.  For more details on how you can get to Vegas on us, please let me know!

Please remember to sign your paperwork on listings and buyer agreements!!  As is the case every quarter, we need to discuss paperwork.  Please be compliant so we don’t need to have this covered next meeting!

We are putting together bowling teams for RPAC for each of the offices.  Please let us know if you can make it out on the 16th of June to Bowl America at Fairfax Circle. We’d love to see you there!

Gary Plaag of Couragio Consulting helped us all tremendously with our presentations thanks to Kathy Worek giving Gary her listing presentation.  We were all amused and educated at the same time.  For more details on how Gary can help you get better results, call him at 703-858-6162.

Now, go sell something!

 

Who really knows if the price is right?

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Price 

If you follow real estate at all, you know that there are 3 pricing indexes that get quoted fairly regularly – S&P Case Shiller, FHFA, and Corelogic HPI.  Are they good for tracking home prices as a buyer or seller?  My belief is no – a professional Realtor is your best option.  All of these indices are flawed from what they track, to the timeframe in which they use to track data, to what their data sources encompass, to how much weight is given to price points and to what areas are used to gain their pricing policies.  Why is this important to know you may ask?  Well, it is where your clients, sphere, and potential clients hear in the media about housing prices.  You need to be able to speak intelligently about them and convey the true story about housing prices.  By doing so, you will position yourself as a trusted resource in real estate by providing value to those whom you know.  Now, let’s take a closer look at each pricing model so you can give the right advice when you are helping a client buy or sell a house.

Here is what you may not realize about the S&P/Case Shiller Home Price Index:

  • The index was developed for Wall Street to hedge the housing market, not as a monthly consumer metric
  • Based on a 3 month moving window of closed sales which washes out the annual seasons in housing
  • Lags contract signing dates by 5-7 months
    • Translation:  Q1 2011 report = Q3 2010 Contracts
    • Based on prices, not sales activity where sales activity may be trending
    • Comprised on single family sales only.  Excludes: condos, co-ops and new development sales
    • Only represents 20 cities nationwide
    • Washington DC covers a large area of which includes:
      • Calvert, MD
      • Charles, MD;
      • Frederick, MD
      • Clarke, VA
      • But these areas also included:
        • Warren, VA
        • Jefferson, WV

This is NOT what most readers of the Washington, DC data understand the coverage area to be.

The CSI reported with a two-month lag and is based on three months of data.

  • For example, data released in January 2011 was for the three months ended November 2010 (November, October, and September 2010).

 Understanding the FHFA HPI:

  • The House Price Index is based on transactions involving conforming, conventional mortgages purchased or securitized by Fannie Mae or Freddie Mac – only. All mortgage transactions on single-family properties are included – refinances included but no condos, coops or multifamily are considered.
  • Conventional mortgages are those that are neither insured nor guaranteed by the FHA, VA or other federal government entities.
  • The HPI is a weighted, repeat-sales index, meaning that it measures average price changes in repeat sales or refinancing on the same properties.
  • A full release is provided every three months – not exactly timely.
  • The HPI includes indexes for all nine Census Divisions, the 50 states and the District of Columbia.

The best of the rest – CoreLogic.

The CoreLogic HPI provides a multi-tier market evaluation based on price, time between sales, property type, loan type (conforming vs. nonconforming), and distressed sales.  The CoreLogic HPI is a repeat-sales index that tracks increases and decreases in sales prices for the same homes over time, which provides a more accurate “constant-quality” view of pricing trends than basing analysis on all home sales. The CoreLogic HPI provides the most comprehensive set of a monthly home price indices and median sales prices available covering

  • 6,507 ZIP codes -  58 percent of total U.S. population
  • 611 Core Based Statistical Areas -  86 percent of total U.S. population
  • 1,119 counties -  83 percent of total U.S. population and
  • Located in all 50 states and the District of Columbia.

 The CoreLogic HPI is published on approximately a 5 week lag from the end of the data collection period.

How does the FHFA HPI differ from the S&P/Case-Shiller Home Price indexes?

  • The S&P/Case-Shiller indexes only use purchase prices in index calibration, while the all-transactions FHFA HPI also includes refinance appraisals.
  • FHFA’s valuation data are derived from conforming, conventional mortgages provided by Fannie Mae and Freddie Mac. The S&P/Case-Shiller indexes use information obtained from county assessor and recorder offices.
  • The S&P/Case-Shiller indexes are value-weighted, meaning that price trends for more expensive homes have greater influence on estimated price changes than other homes. FHA’s index weights price trends equally for all properties.
  • The geographic coverage of the indexes differs. The S&P/Case-Shiller National Home Price Index, for example, does not have valuation data from 13 states. FHA’s U.S. index is calculated using data from all states.

As you can see, it is nowhere near how we value properties but it is where most of Americans get the idea of housing values.  We have more accurate, up-to-date information that we can provide clients.  Let your clients know why these indexes are made available – CSI, for Wall Street and hedge funds;  FHFA HPI, to track valuations on Freddie and Fannie products to assess risk;  and lastly, CoreLogic’s HPI, for banks to assess risk when lending money.  None of them are used to determine the value of a home when selling or buying – let others know the facts and become a source for valuable real estate information.  Get it?  Got it?  Good!

Now, go sell something!

Awesome Top Producer Panel

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**TOP PRODUCER PANEL**

Peter Knapp’s Comments

Subscribe to the 4 P’s

  • Persistence
  • Purpose
  • Perspective
  • Patience
  • Reminding yourself “why”
  • Why are you in the business?  Providing for family
  • The idea of “you signed up for it”
  • Available 24/7
  • It’s your job so do you best
  • Embracing the profession
  • Be responsive
  • Separating yourself from the transaction
  • Don’t be emotional – Be honest
  • Emotions
  • Separate yourself from the transaction – Don’t take personally
  • Creating quality of life
  • Servant mentality
  • serve all the time
  • Outworking people – some people are smarter but no one will outwork me
  • And common sense
  • Each transaction, you are working for more than one sale
  • By servicing everyone they will refer you.
  • Every client is the only client
  • Have people say  – I thought I was the only client you were helping
  • Do Charity events as client events
  • Address previous hurdles with clients in initial interview to minimize problems down the road

 **Tom Connor’s comments

Peter’s list was on target – he didn’t miss a beat!

It is important to block time off.

Spend majority of time on lead generation – Most Agents don’t do this.

Manage Team like a business – presentations, systems, and processes are important.

Website built with lead generation – on Back office – Real Pro Systems

Discuss business and an Agent’s productivity with buyers and sellers so they understand how hard you work and what your results are versus the “standard/average” agent.

Be responsive

Be communicative

Develop online biz but understand it is hard – lots of rejection – must be persistent

Read Book “Work for a Reason”

John Rumcik – ‘RUM’ –No Team – leverage company events with sphere to show you are involved in the community and give back to charities.

  • Hard work has no substitute
  • Work 100% by referral
  • BNI is great – members & clients are referring because of high level of service
  • Tons of referrals
  • Work outside the box
  • Don’t say “no” if it’s legal & ethical – yes, I will try for you is the right answer
  • Advertise on Craigslist to help military for free on rentals and your email will blow up.
  • Nothing is below me
    • BPOs and rentals pay RE/MAX expenses – no deal is to small or beneath me to provide my clients
    • BPOs help with knowing valuations
    • Sell clients for the future 

What are your motivations and how do you stay accountable?

Rum – Motivated by money

  • Has business plan
  • Has goals

Peter – Meets with Scott

  • His “why” of why he’s in the business

Tom – Incoming bills – money

  • Drive from within:  either you have it or you don’t.

Just a few more thoughts…

Do the little things and they will eventually add up to something big – rentals, BPOs, etc.

This job is mental →

Never be satisfied with success – always strive for more.

And we had the market update…

From DSNEWS.com  

Foreclosure Sales in Q1 = 158,434 – Altogether, third parties purchased a total of 158,434 bank-owned and short sale homes during the first three months of this year.  That’s down 16% from the previous quarter’s total and down 36% from the first quarter of 2010.

…REOs that sold in the first quarter had been repossessed by the bank an average of 176 days prior to the sale…

…Sales of bank-owned homes and those in some stage of foreclosure accounted for 28 percent of all U.S. residential sales in the first quarter of 2011 – in our area is was 30%, the highest percentage since the first quarter of 2010.”

…California and Arizona, foreclosure sales accounted for 45% of all residential home sales during the first quarter – in Vegas it was 53%.

…Residential home prices slipped 2.5% during the first quarter of this year when compared to the previous quarter…Our area sales prices are up 5.84% – an 8.24% difference.  We are lucky to be where we are today in regards to home sales and pricing!

From Builderonline.com

Foreclosures Continue to Take Toll on Pricing…only 20% of the 1.2 million homes in some stage of foreclosure have hit the markets – how is this going to affect prices?  In addition, over 4,000,000 are behind/in default on their mortgages.

From Realtor.org – Today’s REALTOR:  older and more experienced

Sales agents report $25k median net income in 2010. How much did you or your Realtor earn last year?  Experience=money – you better ask!

The typical REALTOR of today is older and has more experience than the typical REALTOR on year ago, according to the national Association of REALTORS’ 2011 Member Profile.  The average age is 56.

NAR had 1.01 million members.

Only 12% of REALTORS under 40, half are between 40 and 59, and 38% are age 60 or older. Only 6% of REALTORS said real estate was their first career. By comparison, homebuyers had a median age of 39 in 2010.  Get in tune with your buyers!

8% did not complete a single transaction in 2010, down from 12% in both 2009 and 2008.  I believe this number is very suspect…

Real estate was the sole occupation for 75% of REALTORS…

From DAILY REAL ESTATE NEWS

 New-home sales see monthly rise in April

Sales of new, single-family homes saw a monthly rise in April, the U.S. Census Bureau and Department of Housing and Urban Development reported today.

New Home Sales increased an estimated 7.3% in April compared with March and it is 29.2% above the rate in February, when such sales hit an all-time low.

The median sales price of a new homes rose 4.6% year-over-year in April, to $217,900.  Builder’s homes are priced right that is why they are selling and they are seeing price increase.

From WASHINGTON BUSINESS JOURNAL

 Rates fall for sixth straight week – what a great time to buy!  Rates are down and prices are up.  Time to get in now before both are too far out of reach!

 HOUSING DATA

Last May versus this May – week 4

                                                                2010                                                       2011

Active homes for sale                                7,428                                                     7,516

Month’s supply  of u/c                              2.1                                                          2.1

Settlements last 30 days                           3162                                                       2598

Month’s supply of solds last 30                  2.3                                                         2.9

Percent of market that is distress inventory      15.2

We are in a very similar situation to last May – pretty crazy!  As usual, we had a great training that shared a lot of information.  Be sure to see video footage at www.youtube.com/scottmacdonald5 to hear more!  Get it?  Got it?  Good!

Now, go sell something!