More and more I am getting calls from agents about other agents who seem to be forgetting some basic rules of courtesy and safety!
As business starts to pick up, you may find that your time is getting harder and harder to schedule. No matter how busy, frazzled, or frenzied you are, don't forget the lessons that you learned when you first entered the business:
1) Avoid letting clients into properties if you won't be accompanying them - Several of the calls I've received are from an angry or irritated listing agents who stumbled across buyers who "let themselves" into the property. This is especially frequent with vacant and REO properties that have combination lockboxes. Just because a home is unoccupied doesn't mean that anyone can come in.
Never give your clients the combination to a lockbox. You don't know when they will access the property or how many times. You may be liable if damages or theft occurs. If you are too busy to meet them at the property, have a trusted colleague or co-worker assist your clients until you are available. (In the 2010 REALTOR® Code of Ethics, allowing someone unauthorized access to a lockbox or property will be a violation of Article 1!)
2) Don't let your clients move in until everything is recorded and funded - Just because your clients have signed all the documents doesn't mean the house is theirs. I am hearing that clients are moving into houses and making changes to the property before the sale has recorded. This is (again) happening frequently with REOs.
It belongs to the bank until everything is final. Accessing and changing things without the owner's [re: the bank's] permission is considered trespassing. If your clients start changing things (paint, peeling up carpet, fixing things) and something happens, there is legal liability.
If you are the one giving them the keys early, you could be liable as well. Just because the keys are in the lockbox doesn't mean you have the authority to provide them to the new homeowner. Homeowners will get keys when everything is final and they need to wait for that.
Advise your clients who are getting appointments lined up (such as cable hook ups or appliance delivery) to wait to schedule those until the property has changed ownership. It it tempting to have it all lined up for the day after "closing" but just in case of delays in recording, wait for everything to be final. Some of the new lending standards can cause delays in paperwork as well and having appointments scheduled so tightly can really cause problems. Your clients may ask you to let them in early and you don't want to put yourself in that position!
Besides those, remember basic things - call before you show a property (even if it says 'vacant' on the MLS listing!) - leave your card after showing - if you can't make an appointment or will be late, let them know - be professional in all you do: what you say, how you act, how you treat others.
Good luck and be safe!
Monday, November 30, 2009
Monday, November 23, 2009
Smart Growth Principles and Attracting Young Professionals to Boise
The Idaho Business Review published a terrific article today about attracting young professionals to Boise and how important the Principles of Smart Growth are to these residents. Take a look! http://tinyurl.com/yfdstas
Kit Fitzgerald
Red Barn Real Estate
Kit Fitzgerald
Red Barn Real Estate
NAR RESPA Seminar Available on Realtor.org
NAR's RESPA Realities seminar, recently presented at the NAR 2009 Annual Convention and Expo in San Diego, is now available on Realtor.org.
National RESPA expert, Phil Schulman, a partner at the Washington, D.C. law firm of K&L Gates, discussed the new RESPA rule with a focus on what practitioners will need to know to comply with the new mandatory Good Faith Estimate and HUD-1 forms which go into effect on January 1, 2010.
NAR members may log-in to Realtor.org and go to the "RESPA Realities" page to download Mr. Schulman's PowerPoint slides. An audio recording of the session will also be available on the RESPA Realities page in the near future.
HUD FAQs dated November 19, 2009 >
Contacts: Scott Rinn, 202-383-7508 Contacts: Marcia Salkin, 202-383-1092 Contacts: Kenneth Trepeta, 202-383-1294
National RESPA expert, Phil Schulman, a partner at the Washington, D.C. law firm of K&L Gates, discussed the new RESPA rule with a focus on what practitioners will need to know to comply with the new mandatory Good Faith Estimate and HUD-1 forms which go into effect on January 1, 2010.
NAR members may log-in to Realtor.org and go to the "RESPA Realities" page to download Mr. Schulman's PowerPoint slides. An audio recording of the session will also be available on the RESPA Realities page in the near future.
HUD FAQs dated November 19, 2009 >
Contacts: Scott Rinn, 202-383-7508 Contacts: Marcia Salkin, 202-383-1092 Contacts: Kenneth Trepeta, 202-383-1294
HUD Announces 120-day Period of Restraint in Enforcement of New RESPA Rule
On Friday, November 13, 2009, the Department of Housing and Urban Development (HUD) announced a period of "restraint" in enforcing the new Real Estate Settlement Procedures Act (RESPA) rule, which will go into effect on January 1, 2010. The period of restraint will last for 120 days.
Enforcement restraint will be shown for FHA approved lenders acting in good faith to comply with the new rule, including the mandatory Good Faith Estimate and the HUD-1. HUD also asked other federal and state enforcement agencies to exercise restraint. HUD Secretary Shaun Donovan stated: "While we will not delay implementation of RESPA's new requirements, we are sensitive to the concerns of the industry as it integrates the new rules into their day-to-day business practices."
Contacts: Scott Rinn, 202-383-7508 Contacts: Marcia Salkin, 202-383-1092 Contacts: Kenneth Trepeta, 202-383-1294
Enforcement restraint will be shown for FHA approved lenders acting in good faith to comply with the new rule, including the mandatory Good Faith Estimate and the HUD-1. HUD also asked other federal and state enforcement agencies to exercise restraint. HUD Secretary Shaun Donovan stated: "While we will not delay implementation of RESPA's new requirements, we are sensitive to the concerns of the industry as it integrates the new rules into their day-to-day business practices."
Contacts: Scott Rinn, 202-383-7508 Contacts: Marcia Salkin, 202-383-1092 Contacts: Kenneth Trepeta, 202-383-1294
Thursday, November 19, 2009
NAR Survey Shows First-Time Home Buyers Set Record in Past Year
San Diego, November 13, 2009
First-time home buyers reached the highest market share on record during the past year, according to the latest consumer survey of home buyers and sellers. The study was released here today at the 2009 REALTORS® Conference & Expo.
The 2009 National Association of Realtors® Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, preferences, marketing and experiences of recent home buyers and sellers. Among national surveys, NAR’s Profile of Home Buyers and Sellers is unprecedented in size and scope.
Paul Bishop, NAR vice president of research, said several factors have been at play. “Tax incentives, record high affordability conditions and a pent-up demand brought a record share of first-time home buyers into the market,” he said. “These buyers are critical to housing and a general economic recovery because the market always heals from the bottom up – they absorb inventory, free existing owners to make a trade and stimulate related goods and services.”
The number of first-time home buyers rose to 47 percent of all home sales from 41 percent of transactions in last year’s study, and was the highest on record dating back to 1981. The previous high was 44 percent in 1991. “It’s interesting to note the last cyclical peak of first-time home buyers was during the last noteworthy economic downturn, with first-time buyers starting the chain reaction that led the nation out of recession,” Bishop said.
Read the rest of the story
First-time home buyers reached the highest market share on record during the past year, according to the latest consumer survey of home buyers and sellers. The study was released here today at the 2009 REALTORS® Conference & Expo.
The 2009 National Association of Realtors® Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, preferences, marketing and experiences of recent home buyers and sellers. Among national surveys, NAR’s Profile of Home Buyers and Sellers is unprecedented in size and scope.
Paul Bishop, NAR vice president of research, said several factors have been at play. “Tax incentives, record high affordability conditions and a pent-up demand brought a record share of first-time home buyers into the market,” he said. “These buyers are critical to housing and a general economic recovery because the market always heals from the bottom up – they absorb inventory, free existing owners to make a trade and stimulate related goods and services.”
The number of first-time home buyers rose to 47 percent of all home sales from 41 percent of transactions in last year’s study, and was the highest on record dating back to 1981. The previous high was 44 percent in 1991. “It’s interesting to note the last cyclical peak of first-time home buyers was during the last noteworthy economic downturn, with first-time buyers starting the chain reaction that led the nation out of recession,” Bishop said.
Read the rest of the story
Forecast Hopeful with First-Time Home Buyers Leading the Way
San Diego, November 13, 2009
Aided by the home buyer tax credit, the outlook for housing and the economy appears headed for a sustainable recovery, according to the National Association of Realtors®.
Lawrence Yun, NAR chief economist, said the projections are enhanced by a tax credit expansion to more home buyers through the middle of 2010. “Given the success of the first-time buyer tax credit to date, and the need for qualified buyers to continue to absorb inventory that will include additional foreclosures over the coming year, we are hopeful about the impact of the expanded tax credit because it will stabilize home prices,” he said. “In fact, the credit is working better than first projected – it now looks like we’ll have 2.3 to 2.4 million first-time buyers this year.”
A large consumer study being released later today, the 2009 National Association of Realtors® Profile of Home Buyers and Sellers, shows first-time buyers accounted for a record 47 percent share of home sales over the past year, up from 41 percent in the 2008 survey. The share has risen steadily since a cyclical low of 36 percent in 2006.
Existing-home sales are expected to total 5.01 million in 2009, a gain of 2.0 percent over last year, and then are forecast to rise 13.6 percent to 5.69 million in 2010. “A steady draw down of inventory will help home values to turn positive in 2010, but risks such as unemployment remain in the economy,” Yun said.
New-home sales are projected at 397,000 this year, recovering to 549,000 in 2010. Housing starts, including multifamily units, should total 564,000 units this year but grow to 752,000 in 2010.
The 30-year fixed-rate mortgage will probably average 5.3 percent in the fourth quarter, rising gradually to 5.8 percent by the end of next year. NAR’s housing affordability index will set a record in 2009, averaging 30 percentage points higher than 2008. Affordability will decline from record highs next year but will remain at historically attractive levels for home buyers.
“We’ve seen a steady downtrend in housing inventory for well over a year and home prices appears to be in the early stages of stabilizing. With expansion of the tax credit to additional buyers through the middle of next year, and no major unforeseen events impacting the economy, home prices should rise between 3 and 5 percent in 2010, but with wide geographic differences,” Yun said.
He expects growth in the U.S. gross domestic product to be at a pace of 2.5 percent in the current quarter, with GDP up 2.8 percent in 2010.
The unemployment rate is close to peaking and is projected to ease to 9.5 percent by the end of next year.
“The size of the U.S. budget deficit is a concern going forward, and carries the risk of higher inflation. At this point, that risk appears to be restrained,” Yun said. Inflation, as measured by the Consumer Price Index, is seen contracting 0.4 percent this year, then rising 1.6 percent in 2010. Inflation-adjusted disposable personal income is estimated to grow 0.4 percent this year and 1.2 percent next year.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
Aided by the home buyer tax credit, the outlook for housing and the economy appears headed for a sustainable recovery, according to the National Association of Realtors®.
Lawrence Yun, NAR chief economist, said the projections are enhanced by a tax credit expansion to more home buyers through the middle of 2010. “Given the success of the first-time buyer tax credit to date, and the need for qualified buyers to continue to absorb inventory that will include additional foreclosures over the coming year, we are hopeful about the impact of the expanded tax credit because it will stabilize home prices,” he said. “In fact, the credit is working better than first projected – it now looks like we’ll have 2.3 to 2.4 million first-time buyers this year.”
A large consumer study being released later today, the 2009 National Association of Realtors® Profile of Home Buyers and Sellers, shows first-time buyers accounted for a record 47 percent share of home sales over the past year, up from 41 percent in the 2008 survey. The share has risen steadily since a cyclical low of 36 percent in 2006.
Existing-home sales are expected to total 5.01 million in 2009, a gain of 2.0 percent over last year, and then are forecast to rise 13.6 percent to 5.69 million in 2010. “A steady draw down of inventory will help home values to turn positive in 2010, but risks such as unemployment remain in the economy,” Yun said.
New-home sales are projected at 397,000 this year, recovering to 549,000 in 2010. Housing starts, including multifamily units, should total 564,000 units this year but grow to 752,000 in 2010.
The 30-year fixed-rate mortgage will probably average 5.3 percent in the fourth quarter, rising gradually to 5.8 percent by the end of next year. NAR’s housing affordability index will set a record in 2009, averaging 30 percentage points higher than 2008. Affordability will decline from record highs next year but will remain at historically attractive levels for home buyers.
“We’ve seen a steady downtrend in housing inventory for well over a year and home prices appears to be in the early stages of stabilizing. With expansion of the tax credit to additional buyers through the middle of next year, and no major unforeseen events impacting the economy, home prices should rise between 3 and 5 percent in 2010, but with wide geographic differences,” Yun said.
He expects growth in the U.S. gross domestic product to be at a pace of 2.5 percent in the current quarter, with GDP up 2.8 percent in 2010.
The unemployment rate is close to peaking and is projected to ease to 9.5 percent by the end of next year.
“The size of the U.S. budget deficit is a concern going forward, and carries the risk of higher inflation. At this point, that risk appears to be restrained,” Yun said. Inflation, as measured by the Consumer Price Index, is seen contracting 0.4 percent this year, then rising 1.6 percent in 2010. Inflation-adjusted disposable personal income is estimated to grow 0.4 percent this year and 1.2 percent next year.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
RPR and HouseLogic: Projects of Striking Scale
By Robert Freedman, Senior Editor, REALTOR® Magazine
So many announcements are made at NAR’s annual meeting that it’s easy to lose sight of just how trend-shifting some of them are. At the opening forum of the 2009 REALTORS® Conference & Expo in San Diego yesterday, NAR CEO Dale Stinton made back-to-back introductions of two initiatives that stand to define how you’ll do business in the years ahead.
The first is the REALTORS® Property Resource, something NAR leaders first started discussing several years ago then gave the go-ahead about two years ago as part of NAR’s massive Second Century Initiatives.
When it launches in the second quarter of 2010, it will be a database of 147 million parcels of real estate accessible to all REALTORS®. For each parcel you’ll have quantitative data—size, assessment, and so on—plus qualitative data: comments from you and your colleagues on what’s really key about the property.
Any database that has 147 million of anything is a massive resource; when the data consists of the amount and quality of the information that Stinton describes, you really get a sense of its scale. It will put an unprecedented amount of informaton at your fingertips, making you a go-to resource for your customers that would have simply been impossible years ago. If you think about it, it’s exactly the kind of thing that associations should be doing for their members: pooling their resources to undertake massive projects that shift the long-term competitive landscape in their favor. Read more
So many announcements are made at NAR’s annual meeting that it’s easy to lose sight of just how trend-shifting some of them are. At the opening forum of the 2009 REALTORS® Conference & Expo in San Diego yesterday, NAR CEO Dale Stinton made back-to-back introductions of two initiatives that stand to define how you’ll do business in the years ahead.
The first is the REALTORS® Property Resource, something NAR leaders first started discussing several years ago then gave the go-ahead about two years ago as part of NAR’s massive Second Century Initiatives.
When it launches in the second quarter of 2010, it will be a database of 147 million parcels of real estate accessible to all REALTORS®. For each parcel you’ll have quantitative data—size, assessment, and so on—plus qualitative data: comments from you and your colleagues on what’s really key about the property.
Any database that has 147 million of anything is a massive resource; when the data consists of the amount and quality of the information that Stinton describes, you really get a sense of its scale. It will put an unprecedented amount of informaton at your fingertips, making you a go-to resource for your customers that would have simply been impossible years ago. If you think about it, it’s exactly the kind of thing that associations should be doing for their members: pooling their resources to undertake massive projects that shift the long-term competitive landscape in their favor. Read more
HVCC: Bad Code or Badly Implemented Code?
By Robert Freedman, senior editor, REALTOR® Magazine
The Home Valuation Code of Conduct is getting a bad rap for causing what real estate professionals say is a rise in inaccurate appraisals, Alfred Pollard told a packed room of REALTORS® Friday in a risk management-regulatory issues joint forum at the 2009 NAR Conference & Expo in San Diego.
Mark Johnson, chief operating officer of appraisal management company LSI.
Pollard, the general counsel for the Federal Housing Finance Agency (FHFA), said HVCC was released at a time when the economy was in a massive contraction—what he called a systemic event—and that this broader picture has to be taken into consideration when talking about valuation trends. “Concerns [over valuations] might not be 100-percent tied to this code,” he said.
FHFA oversees Fannie Mae and Freddie Mac, which earlier this year adopted HVCC and applied it nationwide in an agreement with the New York attorney general. HVCC expires in late 2010 but the two secondary mortgage market companies can retain all or parts of HVCC going forward.
Nor is it fair to rap all appraisal management companies (AMCs) for handing out valuation assignments to inexperienced or out-of-market appraisers who are willing to work for reduced fees, Mark Johnson, COO of LSI, a big AMC, said at the forum.
Any AMC that lets appraisers work outside their area of geographic competency is violating appraisal standards under USPAP and they should be reported, he said. “I do believe there have been some bad actors,” he said.
The average travel distance of the 20,000 appraisers in his company’s database is eight to 12 miles, he said. Any appraiser who wants to travel more than 25 miles under his company’s policy must explain why and get an OK. “We don’t want guys driving 50 miles,” he said. “We want to get rid of that guy [who goes outside his area of geographic competency].”
Steve White of Keller Williams Realty in Santa Clarita, Calif., and chair of NAR’s Risk Management Committee, said real estate professionals are losing deals because valuations are coming in far below the price agreed upon by the buyer and seller and that the process for getting valuations reconsidered doesn’t work.
Valuations are taking so long that there is no time to get them reconsidered before the deal collapses. What’s more, when real estate professionals try to share comparables or familiarize out-of area appraisers with unique market issues, appraisers say they can’t talk to them.
Pollard and Johnson said there’s nothing in HVCC that prohibits real estate professionals from sharing comparable or other information with appraisers. “You can talk; you just can’t drive them to a value,” said Pollard.
Johnson gave out an e-mail address, nar@lsi-lps.com, that goes directly to him that REALTORS® can use for sending in complaints if they believe one of LSI’s appraisers hasn’t produced a competent valuation or is inappropriately restricting them from sharing information. “Send me the name of the guy and let’s root him out,” he said.
The Home Valuation Code of Conduct is getting a bad rap for causing what real estate professionals say is a rise in inaccurate appraisals, Alfred Pollard told a packed room of REALTORS® Friday in a risk management-regulatory issues joint forum at the 2009 NAR Conference & Expo in San Diego.
Mark Johnson, chief operating officer of appraisal management company LSI.
Pollard, the general counsel for the Federal Housing Finance Agency (FHFA), said HVCC was released at a time when the economy was in a massive contraction—what he called a systemic event—and that this broader picture has to be taken into consideration when talking about valuation trends. “Concerns [over valuations] might not be 100-percent tied to this code,” he said.
FHFA oversees Fannie Mae and Freddie Mac, which earlier this year adopted HVCC and applied it nationwide in an agreement with the New York attorney general. HVCC expires in late 2010 but the two secondary mortgage market companies can retain all or parts of HVCC going forward.
Nor is it fair to rap all appraisal management companies (AMCs) for handing out valuation assignments to inexperienced or out-of-market appraisers who are willing to work for reduced fees, Mark Johnson, COO of LSI, a big AMC, said at the forum.
Any AMC that lets appraisers work outside their area of geographic competency is violating appraisal standards under USPAP and they should be reported, he said. “I do believe there have been some bad actors,” he said.
The average travel distance of the 20,000 appraisers in his company’s database is eight to 12 miles, he said. Any appraiser who wants to travel more than 25 miles under his company’s policy must explain why and get an OK. “We don’t want guys driving 50 miles,” he said. “We want to get rid of that guy [who goes outside his area of geographic competency].”
Steve White of Keller Williams Realty in Santa Clarita, Calif., and chair of NAR’s Risk Management Committee, said real estate professionals are losing deals because valuations are coming in far below the price agreed upon by the buyer and seller and that the process for getting valuations reconsidered doesn’t work.
Valuations are taking so long that there is no time to get them reconsidered before the deal collapses. What’s more, when real estate professionals try to share comparables or familiarize out-of area appraisers with unique market issues, appraisers say they can’t talk to them.
Pollard and Johnson said there’s nothing in HVCC that prohibits real estate professionals from sharing comparable or other information with appraisers. “You can talk; you just can’t drive them to a value,” said Pollard.
Johnson gave out an e-mail address, nar@lsi-lps.com, that goes directly to him that REALTORS® can use for sending in complaints if they believe one of LSI’s appraisers hasn’t produced a competent valuation or is inappropriately restricting them from sharing information. “Send me the name of the guy and let’s root him out,” he said.
FHA Head Praises Realtor Role in Recovery
San Diego, November 15, 2009
Realtors® are the face of the housing market, the focal point of information, involvement and inventory, and the Federal Housing Administration is committed to help them be successful, FHA Housing Commissioner Dave Stevens told more than 1,000 Realtors® at a gathering here today.
“You help to stabilize the community, and without homeownership, there can be no stability in communities,” Stevens said. “Together, we must never let overexuberance overtake the housing market again, and interrupt the housing market and the lives of untold millions of Americans. Our goal must be nothing less than to craft a solid, sustainable housing market, a market with a secure foundation for the future.”
Stevens said he and Shaun Donovan, secretary of the Housing and Urban Development, recognize that the National Association of Realtors has been at the forefront of efforts to address the housing crisis, and he has met with NAR on several occasions to consider their concerns. FHA has taken direct action on a number of those concerns.
Stevens announced that effective Monday, Nov. 16, FHA will no longer require a second appraisal on high-balance loans for properties in declining markets. “We did not find our previous policy to be particularly helpful and were very concerned about the additional burden on lenders and consumers,” Stevens said. He noted the policy change will bring industry alignment, streamline loan processing and reduce costs to consumers.
Read the rest of the story.
Realtors® are the face of the housing market, the focal point of information, involvement and inventory, and the Federal Housing Administration is committed to help them be successful, FHA Housing Commissioner Dave Stevens told more than 1,000 Realtors® at a gathering here today.
“You help to stabilize the community, and without homeownership, there can be no stability in communities,” Stevens said. “Together, we must never let overexuberance overtake the housing market again, and interrupt the housing market and the lives of untold millions of Americans. Our goal must be nothing less than to craft a solid, sustainable housing market, a market with a secure foundation for the future.”
Stevens said he and Shaun Donovan, secretary of the Housing and Urban Development, recognize that the National Association of Realtors has been at the forefront of efforts to address the housing crisis, and he has met with NAR on several occasions to consider their concerns. FHA has taken direct action on a number of those concerns.
Stevens announced that effective Monday, Nov. 16, FHA will no longer require a second appraisal on high-balance loans for properties in declining markets. “We did not find our previous policy to be particularly helpful and were very concerned about the additional burden on lenders and consumers,” Stevens said. He noted the policy change will bring industry alignment, streamline loan processing and reduce costs to consumers.
Read the rest of the story.
Wednesday, November 11, 2009
October Market in Review - Sure is Better Than Last October
After a few pretty tense weeks, REALTORS® succeeded in getting Congress and President Obama to do the right thing on behalf of American homebuyers.
On Friday, November 6, The Home buyer Tax Credit was extended to April 30, 2010 and expanded to include current homeowners (with certain qualifications; see Nov. 5 post for details).
No wonder then, that October sales numbers were strong.
Sales in October were up 7% over September and up a whopping 45% over October ’08. But, to be fair to the memory challenged among us, Oct. ’08 was the month when the consumer confidence was at its lowest; the stock market was crashing and pundits predicted we were entering the next Great Depression.
Month over month sales in ’09 have now been up for 9 out of 10 months. Total sales are up more than 200% from January of this year.
Median price declined from $165,000 to $155,000 in October. Digging into this number a little deeper reveals a couple of interesting points. Existing homes are tenaciously holding on to their value – declining only $2,000 from September to $160,000. At the same time new homes median dropped from $168,990 to $147,390. This is the first time that news homes median has been less than the median for existing homes. There are likely several reasons for such a decline; higher foreclosure and short sales, deep discounting and the trend in new construction is for homes in the lower price range.
Inventory fell to its lowest number since May ’06. Our highest inventory number was 5198 in July ’07. We are nearly one-third less than that record amount. Compared to October ’08 we are 25% less. Translating that into months of inventory on hand; we are at less than 7 months. (combined new and resale). This is 50% reduction from January ’09.We have traditionally defined “market equilibrium” as 6 months of available inventory. In October we are at 6.3 months overall.
Measuring the impact of the first time home buyer tax credit; NAR recently reported that the Tax Credit will result in an additional 1million sales this year. In Ada County, sales of homes under $160,000 account for almost 40% of all sales. This is up 12% from January ’09.In this price category, inventory is even scarcer. Inventory of new homes under $160,000 is at 5 months. Inventory of existing homes under $160,000 is at 4.6 months.Short sales in October were 14% of all sales; down slightly form September. REO sales in October increased to 22%; up 4% from September.
Pending sales continue to forecast a solid future. At the end of September there were 876 pending sales. This is down by about 7% from September.In theory, the expansion of the Tax Credit to current homeowners should enable more move-up buyers.
NAR ‘s Chief Economist, Lawrence Yun told us last month that, because of the incredible affordability and continued low interest rates there are now 5 million more renters that qualify to buy than there were in 2000.
The Tax Credit expires at the end of April…for real this time. Spring will come quickly.
On Friday, November 6, The Home buyer Tax Credit was extended to April 30, 2010 and expanded to include current homeowners (with certain qualifications; see Nov. 5 post for details).
No wonder then, that October sales numbers were strong.
Sales in October were up 7% over September and up a whopping 45% over October ’08. But, to be fair to the memory challenged among us, Oct. ’08 was the month when the consumer confidence was at its lowest; the stock market was crashing and pundits predicted we were entering the next Great Depression.
Month over month sales in ’09 have now been up for 9 out of 10 months. Total sales are up more than 200% from January of this year.
Median price declined from $165,000 to $155,000 in October. Digging into this number a little deeper reveals a couple of interesting points. Existing homes are tenaciously holding on to their value – declining only $2,000 from September to $160,000. At the same time new homes median dropped from $168,990 to $147,390. This is the first time that news homes median has been less than the median for existing homes. There are likely several reasons for such a decline; higher foreclosure and short sales, deep discounting and the trend in new construction is for homes in the lower price range.
Inventory fell to its lowest number since May ’06. Our highest inventory number was 5198 in July ’07. We are nearly one-third less than that record amount. Compared to October ’08 we are 25% less. Translating that into months of inventory on hand; we are at less than 7 months. (combined new and resale). This is 50% reduction from January ’09.We have traditionally defined “market equilibrium” as 6 months of available inventory. In October we are at 6.3 months overall.
Measuring the impact of the first time home buyer tax credit; NAR recently reported that the Tax Credit will result in an additional 1million sales this year. In Ada County, sales of homes under $160,000 account for almost 40% of all sales. This is up 12% from January ’09.In this price category, inventory is even scarcer. Inventory of new homes under $160,000 is at 5 months. Inventory of existing homes under $160,000 is at 4.6 months.Short sales in October were 14% of all sales; down slightly form September. REO sales in October increased to 22%; up 4% from September.
Pending sales continue to forecast a solid future. At the end of September there were 876 pending sales. This is down by about 7% from September.In theory, the expansion of the Tax Credit to current homeowners should enable more move-up buyers.
NAR ‘s Chief Economist, Lawrence Yun told us last month that, because of the incredible affordability and continued low interest rates there are now 5 million more renters that qualify to buy than there were in 2000.
The Tax Credit expires at the end of April…for real this time. Spring will come quickly.
How to Stop People From Secretly Thinking You're Full of Crap
This was an article published on AgentGenius.com. I thought it had some great tips and wanted to pass along:
Their Problem = Who To Trust?
Full of Crap or True Blue Trustworthy? Civilians secretly think Real Estate Agents are full of crapola. The civilian perception is:
1. Real estate agents follow-up and follow-through like Donald Trump combs over, spectacularly irresponsible.
2. Real estate agents behave and screech, “It’s ALL about ME”. ”I’m famous.” ”I’m NUMBER ONE.” ”Dig ME, Dig MY awards, Dig MY bill boards.” ”I exceed your expectations (for egoism and poor performance.)!” Etc.
3. Real estate agents spend more money on their Personal Promotion than property promotion.
4. Real estate agents charge too much and do too little. List it > plant scratched, crooked, rusty framed For Sale sign > shoot lame photos > deliver William (I have no professional training) Hung service > ignore empty Take-One flyer box > run a print ad > lay low till it sells > collect a commission check.
Let’s face it. Civilians think most sales people are full of crap. Who can blame them. We have a ton to overcome. Let’s get started…
Our Problem = Lack Of Trust
Here’s How Untrustworthy Is Created, Reinforced and Forwarded:
1. Dress like you’re on vacation, a hobo or a hooker.
2. Speak in shallow generalities.
3. Demonstrate sloth, ignorance and apathy.
4. Act inconsistent.
5. Never apologize, always make excuses, blame and stay the same.
6. Screech: YOU are NUMBER ONE. Talk about YOU exclusively. Talk more than YOU listen.
7. Act like YOU are the most important person in the room.
8. Take phone calls while engaged with clients.
9. Keep people waiting.
10. Cut corners.
11. Take ka-ka photos with cheap equipment.
12. Create property flyer’s using clashing font styles, garish colors and seat-of-the-pants layout and design.
13. Sprinkle your MLS listing remarks and property promotion materials with uninspiring, overused and misspelled words.
14. Do as little as possible.
MORE>>
How To Stop People From Secretly Thinking You’re Full Of Crap
By Ken Brand on October 19, 2009
Their Problem = Who To Trust?
Full of Crap or True Blue Trustworthy? Civilians secretly think Real Estate Agents are full of crapola. The civilian perception is:
1. Real estate agents follow-up and follow-through like Donald Trump combs over, spectacularly irresponsible.
2. Real estate agents behave and screech, “It’s ALL about ME”. ”I’m famous.” ”I’m NUMBER ONE.” ”Dig ME, Dig MY awards, Dig MY bill boards.” ”I exceed your expectations (for egoism and poor performance.)!” Etc.
3. Real estate agents spend more money on their Personal Promotion than property promotion.
4. Real estate agents charge too much and do too little. List it > plant scratched, crooked, rusty framed For Sale sign > shoot lame photos > deliver William (I have no professional training) Hung service > ignore empty Take-One flyer box > run a print ad > lay low till it sells > collect a commission check.
Let’s face it. Civilians think most sales people are full of crap. Who can blame them. We have a ton to overcome. Let’s get started…
Our Problem = Lack Of Trust
Here’s How Untrustworthy Is Created, Reinforced and Forwarded:
1. Dress like you’re on vacation, a hobo or a hooker.
2. Speak in shallow generalities.
3. Demonstrate sloth, ignorance and apathy.
4. Act inconsistent.
5. Never apologize, always make excuses, blame and stay the same.
6. Screech: YOU are NUMBER ONE. Talk about YOU exclusively. Talk more than YOU listen.
7. Act like YOU are the most important person in the room.
8. Take phone calls while engaged with clients.
9. Keep people waiting.
10. Cut corners.
11. Take ka-ka photos with cheap equipment.
12. Create property flyer’s using clashing font styles, garish colors and seat-of-the-pants layout and design.
13. Sprinkle your MLS listing remarks and property promotion materials with uninspiring, overused and misspelled words.
14. Do as little as possible.
MORE>>
Industry-First Social Networking MasterMind Launched
Read about this today. I know Michael Russer. Very sharp. Realtors have found lots of success in "Mastermind" type groups. I've joined one myself with a group of AE's from Associations like ours.
As I read this, it suggests that there is a cost, but I don't know what it is.
There is a requirement that you be an eTEAM member. I went on the site and read about it, but I'm still not sure of any details.
Give it a look...but keep your eyes open.
Santa Barbara , CA , November 11, 2009 — With social media being recognized as the hottest way of generating business online, Michael Russer (aka Mr. Internet®) of Online Dominance™ has teamed up with Brad Carroll and Bobby Carroll of Dakno Marketing to form a powerful MasterMind group for agents who are seriously focused on boosting transactions.
In an endeavor that changes almost daily, the Social Networking MasterMind Group will be presented with content that puts them ahead of the digital curve during its monthly meetings, as well as the best strategies for using it. This is the first ongoing venue exclusively for top performing real estate professionals to keep up with the latest in this essential trend.
“Far too many agents are given access to tools like social media, often at sizable expense to their brokerages, without understanding how to really use them correctly. They seem like so much fun to play with, but they have no concept how much time and effort is truly required to make social networking effective, resulting in nothing but mounting frustration and hours of time sucked away from productive business. Would you give a teen with a learners permit the keys to your new Ferrari? If so, you’re braver than me!” says Michael Russer.
This sentiment is echoed by top social networker and Vice President of Sales & Marketing at Dakno, Bobby Carroll, who will take the lead in facilitating the MasterMind. “Using social media today is like the California Gold Rush – a few prepared individuals struck it rich, but most laid waste to the landscape. Truth is, you can do more harm to yourself than good if you aren’t properly equipped with the right skills. To experience any measure of success with social networking, real estate professionals must understand these new, ever-changing tools, AND have a plan ready to use them!”
The Online Dominance™ Social Networking MasterMind Group is open to eTEAM Members only. Also, members will be held accountable for implementing what they learn and reporting on the results. To find out more about the Online Dominance Mentoring Program™, or for more information about Michael Russer or to book him as a speaker, call Vickie Smith at 877-977-1188 x81 or email vsmith@russer.com. For more information on Dakno Marketing, contact Bobby Carroll at Bobby@Dakno.com.
As I read this, it suggests that there is a cost, but I don't know what it is.
There is a requirement that you be an eTEAM member. I went on the site and read about it, but I'm still not sure of any details.
Give it a look...but keep your eyes open.
Santa Barbara , CA , November 11, 2009 — With social media being recognized as the hottest way of generating business online, Michael Russer (aka Mr. Internet®) of Online Dominance™ has teamed up with Brad Carroll and Bobby Carroll of Dakno Marketing to form a powerful MasterMind group for agents who are seriously focused on boosting transactions.
In an endeavor that changes almost daily, the Social Networking MasterMind Group will be presented with content that puts them ahead of the digital curve during its monthly meetings, as well as the best strategies for using it. This is the first ongoing venue exclusively for top performing real estate professionals to keep up with the latest in this essential trend.
“Far too many agents are given access to tools like social media, often at sizable expense to their brokerages, without understanding how to really use them correctly. They seem like so much fun to play with, but they have no concept how much time and effort is truly required to make social networking effective, resulting in nothing but mounting frustration and hours of time sucked away from productive business. Would you give a teen with a learners permit the keys to your new Ferrari? If so, you’re braver than me!” says Michael Russer.
This sentiment is echoed by top social networker and Vice President of Sales & Marketing at Dakno, Bobby Carroll, who will take the lead in facilitating the MasterMind. “Using social media today is like the California Gold Rush – a few prepared individuals struck it rich, but most laid waste to the landscape. Truth is, you can do more harm to yourself than good if you aren’t properly equipped with the right skills. To experience any measure of success with social networking, real estate professionals must understand these new, ever-changing tools, AND have a plan ready to use them!”
The Online Dominance™ Social Networking MasterMind Group is open to eTEAM Members only. Also, members will be held accountable for implementing what they learn and reporting on the results. To find out more about the Online Dominance Mentoring Program™, or for more information about Michael Russer or to book him as a speaker, call Vickie Smith at 877-977-1188 x81 or email vsmith@russer.com. For more information on Dakno Marketing, contact Bobby Carroll at Bobby@Dakno.com.
Monday, November 9, 2009
Realtors Property Resource - The Other Side of the Coin?
The following is a blog post from "Notorius Rob"...
On November 6th, at roughly 3:15PM Eastern Standard Time, the National Association of REALTORS declared war on the rest of the real estate industry. To be fair, NAR probably did not realize that it did so. Judging by the initial responses, it doesn’t appear to me that most people see what I saw. But, probably because of my twisted nature and my penchant for focusing on the dark side of human nature, I am predicting nothing short of civil war in the real estate industry going forward unless REALTORS Property Resource (or RPR) in its current form is immediately scrapped.
What brings forth such hyperbole?
RPR, or REALTORS Property Resource, was a project shrouded in secrecy. Brian Larson’s post of October 19th, 2009 is a pretty good pre-unveiling summary of the questions and concerns around RPR. Brian Boero’s initial take is a very decent summary of the post-unveiling. But since Brian is a much nicer, much sunnier, much more positive guy than I am, I believe what you’ll get from Brian is the “Glass Half Full” vision.
Strap in for the darker vision.
http://www.notorious-rob.com/2009/11/07/the-coming-civil-war-in-real-estate-the-rpr-saga-begins/comment-page-1/#comments
Read the rest
On November 6th, at roughly 3:15PM Eastern Standard Time, the National Association of REALTORS declared war on the rest of the real estate industry. To be fair, NAR probably did not realize that it did so. Judging by the initial responses, it doesn’t appear to me that most people see what I saw. But, probably because of my twisted nature and my penchant for focusing on the dark side of human nature, I am predicting nothing short of civil war in the real estate industry going forward unless REALTORS Property Resource (or RPR) in its current form is immediately scrapped.
What brings forth such hyperbole?
RPR, or REALTORS Property Resource, was a project shrouded in secrecy. Brian Larson’s post of October 19th, 2009 is a pretty good pre-unveiling summary of the questions and concerns around RPR. Brian Boero’s initial take is a very decent summary of the post-unveiling. But since Brian is a much nicer, much sunnier, much more positive guy than I am, I believe what you’ll get from Brian is the “Glass Half Full” vision.
Strap in for the darker vision.
http://www.notorious-rob.com/2009/11/07/the-coming-civil-war-in-real-estate-the-rpr-saga-begins/comment-page-1/#comments
Read the rest
Realtors Property Resource
NAR's Second Century Initiatives include the creation of the REALTORS Property ResourceTM (RPR), an online real estate library/archive that will provide real estate professionals with data on every property in the United States.
This initiative will provide access to a national database of real property information and will give real estate professionals the best access to real property information needed to serve their clients and customers. It will include in-depth, trusted information on every parcel of real property including public record information, details of prior transactions, MLS-provided information, zoning information, transfer tax information, and other relevant information.
The initiative will be based on the collaborative efforts of REALTORS® and the real estate community, including MLSs. It will drive development and implementation of data standards and definitions, and will increase the breadth, depth, immediacy and power of real estate information available to REALTORS®.
REALTORS Property Resource™ Fact Sheet > (PDF: 84KB)
For ReferenceThe following resources provide a detailed overview of the initiative from its early stages.
NAR Leadership Team White Paper
This initiative will provide access to a national database of real property information and will give real estate professionals the best access to real property information needed to serve their clients and customers. It will include in-depth, trusted information on every parcel of real property including public record information, details of prior transactions, MLS-provided information, zoning information, transfer tax information, and other relevant information.
The initiative will be based on the collaborative efforts of REALTORS® and the real estate community, including MLSs. It will drive development and implementation of data standards and definitions, and will increase the breadth, depth, immediacy and power of real estate information available to REALTORS®.
REALTORS Property Resource™ Fact Sheet > (PDF: 84KB)
For ReferenceThe following resources provide a detailed overview of the initiative from its early stages.
NAR Leadership Team White Paper
Thursday, November 5, 2009
House and Senate Pass Home Buyer Tax Credit
By a vote of 403-12 the House just passed the Unemployment Extension Bill which contains the Home Buyer Tax Credit.
President Obama will get it...and sign it...tomorrow.
Here's NAR's latest FAQ on the extended and expanded tax Credit.
Question: Existing homeowner credit: Must the new house cost more than the old house?
Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.
Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.
Question: I am a firsttime homebuyer but was not within the prior income limits at the time I
entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?
Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase,
which is the settlement date. So if the new rules have been signed when you go to settlement,
you should be eligible for the credit (or a portion of the credit if you're within the phaseout
range).
Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I
have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit?
Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.
Question: I owned my home for 10 years, but sold it two years ago year and have been renting
since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000
and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight what he did since 3 years doesn't impact eligibility.
Question: I am an eligible first time home buyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date ffect me?
Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.
More to Come....
President Obama will get it...and sign it...tomorrow.
Here's NAR's latest FAQ on the extended and expanded tax Credit.
Question: Existing homeowner credit: Must the new house cost more than the old house?
Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.
Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.
Question: I am a firsttime homebuyer but was not within the prior income limits at the time I
entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?
Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase,
which is the settlement date. So if the new rules have been signed when you go to settlement,
you should be eligible for the credit (or a portion of the credit if you're within the phaseout
range).
Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I
have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit?
Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.
Question: I owned my home for 10 years, but sold it two years ago year and have been renting
since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000
and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight what he did since 3 years doesn't impact eligibility.
Question: I am an eligible first time home buyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date ffect me?
Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.
More to Come....
Wednesday, November 4, 2009
Senate Passes Tax Credit
The Senate votes 98-0 to extend the Tax Credit. It now goes to the House. Way to go REALTOR(r) Party!!!
Quick Tax Credit Extension Update
The Senate is expected to pass the Unemployment Insurance bill that contains the Homebuyer Tax Credit Extension this evening. The House will take up the Senate passed bill possibly as early as tomorrow, Thursday. The bill will then go to the White House for the President's signature.
Monday, November 2, 2009
Extending the Tax Credit - ALMOST There
The extension and expansion of the homebuyer tax credit is the pending business in the Senate.
After a long week of negotiation on the credit, an agreement on the scope of both expansion and extension has been reached. The extension is part of a larger bill that has not yet gone to a vote, however. A Senate vote on the underlying bill will occur in the Senate during the week of November 1.
The package will then go back to the House. The House is expected to accept the Senate amendments, vote on the package and send it to the President for signature. The underlying bill is an extension of unemployment benefits. Other provisions in the bill include expansion of the net operating loss carryback rules, new requirements for some tax return preparers and noncontroversial provisions that "pay for" these changes. The agreement on the extension and expansion of the credit is as follows:
Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.
Credit remains at $8000 for first-time purchasers. No change to definition of first-time purchaser.
New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
New anti-fraud limitations are imposed.
The White House has indicated that President Obama will sign the legislation.Call Your Senator >Take Action >Visit www.realtor.org/2009housingtaxcredit >Contacts: Linda Goold, 202-383-1083 Contacts: Samuel Whitfield, 202-383-1131 Contacts: Megan Booth, 202-383-1222
After a long week of negotiation on the credit, an agreement on the scope of both expansion and extension has been reached. The extension is part of a larger bill that has not yet gone to a vote, however. A Senate vote on the underlying bill will occur in the Senate during the week of November 1.
The package will then go back to the House. The House is expected to accept the Senate amendments, vote on the package and send it to the President for signature. The underlying bill is an extension of unemployment benefits. Other provisions in the bill include expansion of the net operating loss carryback rules, new requirements for some tax return preparers and noncontroversial provisions that "pay for" these changes. The agreement on the extension and expansion of the credit is as follows:
Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.
Credit remains at $8000 for first-time purchasers. No change to definition of first-time purchaser.
New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
New anti-fraud limitations are imposed.
The White House has indicated that President Obama will sign the legislation.Call Your Senator >Take Action >Visit www.realtor.org/2009housingtaxcredit >Contacts: Linda Goold, 202-383-1083 Contacts: Samuel Whitfield, 202-383-1131 Contacts: Megan Booth, 202-383-1222
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