Realtor Coaching & Training: association of realtors
Are you an agent in California?
Have you been avoiding learning how to do short sales and become a REO Listing Agent? WHY? Are you still believing that you can somehow survive in real estate without having these skills?
A simple suggestion for you…don’t wait another moment. Its not too late for you if you take action NOW to learn what this market..what we call, ‘The New Normal’ demands…
Great article from our friends at DNSNews:
Foreclosed homes taken back by lenders and distressed short sales accounted for nearly half of all residential home sales in California in 2009, according to a market report released this week by the California Association of Realtors (C.A.R.). In 2008, such sales made up 38 percent of annual transactions.
WOW! What else can you say? Agents, the question that I have for you is…how many of those short sales did you list and sell? How many home homeowners could you have helped had you known how to easily list and sell short sales? Watch the FREE HREU CDPD Short Sale Secrets video NOW. Learn the new 2010 ways to easily list and sell short sales.
As one of the hardest-hit states by the housing downturn, the Golden State is littered with bank-owned properties and homes facing foreclosure, but the lower prices and increasing buyer appetite for these deals are helping to reduce some of California’s distressed inventory.
The median price of distressed properties declined nearly one quarter to $250,000 in 2009, compared with $330,000 in 2008, C.A.R. reported. Meanwhile, the median price of non-distressed properties decreased only 10.4 percent to $485,000 compared with $541,000 in 2008.
Although one-third of sellers sold their homes for a loss last year – the highest level on record since C.A.R. started tracking net cash losses in 1989 – the lower home prices lured investors. According to the state Realtors association, more than 70 percent of properties purchased by investors were either short sales or REO/foreclosures. The typical investment property had a median price of $232,750.
Lower home prices and a large supply of distressed properties, coupled with federal tax breaks, also encouraged first-time buyers to take the plunge into
homeownership. The percent of first-time buyers increased dramatically to 47 percent in 2009, up from 35.9 percent in 2008, according to the report.
“It is clear that the federal tax credit for homebuyers worked well in 2009 and is continuing to drive home sales,” said C.A.R. President Steve Goddard. “The homebuyers’ tax credit is arguably the most successful strategy employed by the government’s efforts to stimulate the economy.”
…really? More so than the Fed buying MBS to artificially lower the interest rates….?
According to a survey conducted by C.A.R. on the effectiveness of the federal tax credit, nearly 40 percent of homebuyers in the state said they would not have purchased a home if the tax credit was not offered.
C.A.R. also noted that the large number of distressed properties led to more than half of all first-time buyers purchasing an REO/foreclosure or short sale property.
According to C.A.R.’s analysis, California’s median home price hit bottom in February 2009 at $245,170. Since then, the median home price has increased steadily in month-to-month comparisons, but remained below 2008 levels throughout 2009. The annual median price is projected to increase to $280,000 in 2010 from $271,000 in 2009, the association said.
Homes priced $500,000 or less dominated the sales mix throughout 2008 and 2009, but C.A.R. says sales of high-end homes started picking up in late 2009, with the number of closings for homes priced $500,000 or higher rising 3 percent, and sales of homes priced $1 million or more experiencing their first year-to-year increase since July 2007.
A separate study by a local newspaper shows that a growing number of Californians are turning to the courts to fight the foreclosure process and prevent their homes from becoming REOs. According to numbers complied by the San Jose Mercury News, the number of foreclosure lawsuits filed in federal court in California has ballooned from just 29 cases statewide in 2005 to nearly 1,400 in 2009
Popularity: 1% [?]
One of our favorite monthly reads is the California Association of Realtors monthly magazine.
They do an excellent job balancing current trends with future looking content.
Speaking of content and balance…
We have been asked to recommend several California based Harris Real Estate University students for an upcoming story.
The topic of the article will be on time management and balance.
If you think this is a fit for you…drop me a quick email and I will put you in touch:
Tim@HarrisRealEstateUniveristy.com
Popularity: 2% [?]
What are YOUR 2010 Housing Market Predictions?…
Housing market rebound, Housing Crash Version 3.0…..more of the same?
Here are a smattering of ‘predictions’ (maybe expectations) from many well respected sources.
Mortgage originations probably will decline 16 percent next year as the homebuyer tax credit expires and the Federal Reserve winds down purchases of mortgage-backed bonds, according to a report by Keefe, Bruyette & Woods Inc.
Lending may drop to $1.6 trillion in 2010 from $1.9 trillion this year, Bose George and Jade Rahmani wrote in a research note today. The volume of refinancings will decline after the end of the Fed program in March boosts rates, and home purchases will “taper off” after the tax credit expires in April, according to the analysts for the New York-based firm.
“We do not expect the government to attempt to boost refinance activity further, primarily because there are limited options available to do so,” the analysts wrote.
The housing market was helped this year by an $8,000 first- time buyers tax credit that pushed resales to a 6.1 million annual pace in October, the highest since February 2007, the National Association of Realtors said in a Nov. 23 report. Home sales are likely to be “flat” in 2010, Keefe said.
Agents…you need to re-read that again….home sales will be ‘flat’ once all the government stimulation runs dry. Check out the term dates…the home buying tax credit expires April 2010. We know (and all of you should know) that the banks are going to move forward on literally millions of foreclosures. This will result in 2010…2011 and most likely 2012 having record REO sales. Its NOT too late for YOU to become a REO Listing Agent. Watch the FREE Agent REO Secrets video and download the FREE How-To List REO’s book. Earn your CREOD (Certified Real Estate Owned Designation)…start now for only $97!
President Barack Obama last month signed a bill extending the program into 2010. The new version keeps the first-time buyer benefit and makes a smaller credit available to some move- up buyers.
The Fed in January began purchasing $1.25 trillion of bonds backed by home loans in an effort to reduce fixed mortgage rates. The rate dropped to an all-time low of 4.71 percent during the week ended Dec. 4, according to McLean, Virginia- based Freddie Mac. It increased to 4.81 percent last week.
What else do we know. The FHA is raising lending standards. The Fed has made it clear that they will stop ‘investing’ in mortgage backed securities. This WILL result in overall tighter lending standards and….ultimately….a stable housing market.
Ok, more tidbits….
About $2.5 trillion in adjustable-rate mortgages are due to reset from July through August 2011, a substantial amount of it in places already reeling from the foreclosure crisis, said Rick Sharga, senior vice president of Irvine, Calif.-based RealtyTrac. Foreclosure filings could approach 4 million nationwide next year with about half of them coming primarily in four states — Florida, Nevada, California and Arizona.
Predictions from Trulia…
Pete Flint, chief executive officer of San Francisco-based Trulia.com, said he’s still seeing a lot of inventory for sale with substantial price reductions. Asking prices have been reduced by about 16 percent in Las Vegas, which is surprising, he said.
“It suggests the market is still on the decline,” Flint said. “A lot of cuts are at the top of the market. It would not surprise me to see double-digit declines, unfortunately, in Las Vegas over the next 12 to 18 months. Until unemployment levels off and starts to get better, we expect foreclosures to continue to play a big role in the 2010 housing market.”
More from Rick Sharga…by the way…if you don’t know who Rick Sharga is…Google him. This guy has been stone cold accurate about housing.
Sharga said emerging foreclosure markets include Boise, Idaho; Provo, Utah; Portland, Ore.; Joliet, Ill.; and Fayetteville, Ark. “Follow the unemployment numbers and you’ll be able to track it,” he said..
On to what the Mortgage Bankers are predicting to come….
The Mortgage Bankers Association is reporting some 7 million home loans in default, creating what some analysts have called a “shadow inventory” of foreclosures on the way.
A survey from RealtyTrac and Trulia.com focusing on buyers’ attitudes toward foreclosures showed investors, trade-up buyers and renters are most likely to purchase a distressed property.The online survey, conducted Nov. 5-9 by Harris Interactive, found a notable decrease in consumers’ willingness to buy foreclosed properties, with 43 percent of U.S. adults saying that they are at least somewhat likely to consider purchasing a foreclosed home in the future, compared with 55 percent surveyed in May.
How big of a role will Short Sales be in 2010? Lets look at our hometown of Las Vegas….
A lot of attention has been given to bank-owned properties in Las Vegas, but the real need is to get contingent short sales approved, said Robyn Yates, owner and broker of Windermere Realty.
About 75 percent of all contingent sales in Las Vegas are awaiting bank approval for a short sale, or a sale for less than the mortgage balance. Of the 11,021 contingent home sales, 8,229 are short sales and 1,909 are real estate-owned, or bank-owned.
…I read stats like that daily….I blog about what is happening with Short Sales…and how 2010 IS the year of the Short Sale.
We have literally tens of thousands of agents read this blog every month….and yet…..how many agents are successfully listing and CLOSING Short Sales?
What are you waiting for? In most markets Short Sales will dominate the sales activity. In 2010 Short Sales are going to be streamlined…watch the videos about the new 2010 Treasury Department Short Sale Guidelines.
In 2007 we were the first coaching and training company to introduce Short Sales to a national audience. (No, I am not saying we ‘created’ the short sale process). Since then we have had literally thousands of fellow agents take action and earn their HREU CDPD. Because we KNOW that Short Sales are going to be where the market is for 2010 we are making it easier for agents to earn their designation.
Do this, if you want to enroll in the HREU CDPD Agent Short Sale coaching program NOW call 866-422-9497. You can get started for only $97. You will be personally coached by 2 agents who are selling over 100 short sales this year…in other words, you will be given the best, cutting edge information.
Important Note: Listen I know there are companies that have popped up in the last 12 or so months that are trying to charge $500+ for their ‘designations’. And for that amount of money..you get 2 days of someone trying to upsell you into something that costs…$99 per month. Agents, do your homework before you invest your Time and your MONEY. If you are using Twitter…send @Kristalk a message…ask her what her experience was with one of these new upstart short sale designation mills.
Popularity: 4% [?]
Many agents are still confused about commissions when it comes to short sales.
Here is what is important:
1) If the INVESTOR is Fannie Mae or Freddie Mac the commission can’t be any greater than 6%.
2) There is an appeals process if you have any (or had any) issues collecting your commission as a result of the servicer (or more traditionally called ‘the Bank/ Lender/ Mortgage company etc) not paying you 6%. (this is assuming the listing contract that the seller signed was for 6%)
3) To learn if its a Fannie/ Freddie loan go here: http://www.makinghomeaffordable.gov/loan_lookup.html
As you know we have been offering short sale training for years and years now. We were the first national coaching company to teach agents how to do short sales…and we are by far the largest. Thousands of agents have received their HREU CDPD* (Certified Distressed Property Designation). We have made it easy for you to learn everything you need to know to easily list and sell short sales. Watch the FREE Short Sale Secrets video and grab your FREE Short Sale Book. If you would like to go ahead and enroll now for only $97 call 1-866-422-9497 or sign up here
Fannie Mae Confirms Short Sales Commissions Policy and Establishes Appeals Process
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001In discussions between NAR and Fannie Mae, Fannie Mae has reconfirmed its short sale commission policy
and established a process for REALTORS® to follow if issues arise. On February 24, 2009, Fannie Mae sent
Announcement 09?03 to its servicers instructing them not to negotiate commissions on short sales below
the amount negotiated by the listing agent, unless the commission exceeds 6 percent.Private mortgage
insurance companies and second lien holders may still seek to reduce commissions. In response to
concerns raised by NAR that some servicers of Fannie Mae loans are unaware of this policy or believe it is
not binding, Fannie Mae has established a process for NAR members when short sale commission issues
arise.Step 1: Determine whether the loan is owned or guaranteed by Fannie Mae. Only the holder of the loan is
allowed to do this, so do so in the presence of your client or after obtaining their written permission.Use this website: www.fanniemae.com/loanlookup, or
If you don’t have convenient internet access, call: 1?800?7FANNIE (8am to 9pm Eastern Time)
Step 2: If the servicer is unaware of or disagrees with the policy, provide a copy of Announcement 09?03 to
the servicer and negotiate an appropriate commission based on the listing agreement (up to 6 percent).Step 3: Contact Fannie Mae if the dispute is not resolved directly with the servicer. Be prepared to provide
the property address, name of owner, and Fannie Mae loan number (if available):Call: 1?800?7FANNIE (8am to 9pm Eastern Time), or
Email: Resource_center@FannieMae.com.
Fannie Mae Announcement 09?03 (2/24/09)
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0903.pdf
AND FreddieMac’s Commission Guidelines….
Freddie Mac Issues Written Short Sales Commission Policy
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001On August 20, 2009, Freddie Mac confirmed in writing that its servicers are not allowed to renegotiate short sales commissions. According to the policy, as a condition of the servicer’s acceptance of a short sale offer, servicers cannot renegotiate the sales commission below the amount agreed to by the real estate broker and the seller/borrower. However, if the negotiated commission exceeds 6 percent, servicers are required to limit it to 6 percent. This Freddie policy is consistent with Fannie Mae’s policy. Private mortgage insurance companies and second lien holders may still seek to reduce commissions.
NAR has asked Freddie to establish an appeals process for cases when servicers refuse to comply with Freddie Mac’s policy.
Freddie Mac Single-Family Seller/Servicer Guide Bulletin 2009-22 (August 20, 2009)
http://www.freddiemac.com/sell/guide/bulletins/pdf/bll0922.pdf
Fannie Mae Short Sales Commissions Policy and Appeals Process
http://www.realtor.org/wps/wcm/connect/4fb4f4804e824cf0a6e8e696c79aa288/government_affairs_fannie_short_sales_policy.pdf?MOD=AJPERES&CACHEID=4fb4f4804e824cf0a6e8e696c79aa288
NAR’s Short
Popularity: 3% [?]
This week we will be exploring the housing data.
There ’seems to be’ many reports pointing to a recovery…and housing bottom. Yet, we know that there are literally millions (as in up to 13,000,000) bank controlled homes that will be coming for sale.
SO, what is the truth?
Read this post and share your thoughts…..what are you seeing in your market…what is selling, what isn’t…what do you expect for 2010?
Here is a great article from BBC.com
A key US housing index has risen to its highest level in almost three years, helped by first time buyers taking advantage of a popular tax break.
The National Association of Realtors said its Pending Home Sales Index rose 6.1% in September to 110.1, its eighth straight monthly rise.
Analysts said first time buyers were rushing to beat an end of November deadline for a tax credit.
Separate data showed US manufacturing output rising again in October.
The Institute of Supply Management said its factory index rose for the third consecutive month, increasing to 55.7 from 52.6, with any figure above 50 indicating growth in the sector.
It said both production and employment were increasing in the manufacturing sector.
Popularity: 1% [?]
Here is an interesting video from someone who has proved himself to be a reliable source for information….
Recent data suggests the dismal housing market is making a turnaround.
* U.S. home prices are up nearly 4% from their low point in April.
* The Standard & Poor’s/Case-Shiller Index has risen for three consecutive months.
* New home sales are up 58% on an annualized basis since January.Even Robert Shiller admits, “the suddenness of this shift surprised me.”
Whitney Tilson, founder of T2 Partners agrees. “The rebound has been stronger than we’ve anticipated,” he says. Still, the author of More Mortgage Meltdown remains “confident this is the mother of all head fakes.”
Tilson points to the following reasons for the sudden upturn in housing.
* Low Interest rates
* First Time Home Buyer Tax Credit
* Falling Prices
* SeasonalityBut Tilson says there’s still supply and demand issues that will hamper the recovery. The National Association of Realtors reports housing inventories — the overhang of unsold homes — are at an 8.5 month supply, well below its recent peak. But “the total inventory is triple what’s actually being reported,” Tilson says, estimating there’s twice as many homes in foreclosure or near foreclosure that aren’t for sale yet.
Tilson doesn’t forecast “another calamity to come,” but thinks housing is won’t bottom until those homes are off the market, forecasting at least another 10% decline in prices and no true bottom for another year, at the earliest.
Popularity: 1% [?]
I love this post that I found over on Sellsius.com
It honestly makes be feel proud to be in the real estate industry when I discover other real estate professionals that truly ‘get-it’.
The only true hope for homeowners are Realtors who have the mindset to be of service and the skillset to serve.
Read this blog post and share your comments….
We make a living by what we get. We make a life by what we give ~Winston Churchill
I have been campaigning for the NAR to add a Pro Bono Article to the Realtor° Code of Ethics. It has been a grassroots effort. Thanks to the help and support of Bill Wente, Frances Flynn Thorsen, Sherry Chris, Bill Lublin, Benn and Lani-Anglin Rosales, Scott Forcino, Esq., Jay Thompson, Collen Kulikowski, Kelly Roark, David Steinberg, Larry Yatkowsky and many, many others, a buzz has been building.
5 Reasons Why It Must Be Done:
1. An iconic brand MUST do more than just sell homes. It must innovate beyond product, be a maverick in word and deed and LEAD by example. NAR ought promote the fact that public service is good for the community, good for the economy, good for business and good for the agent. It will distinguish (and elevate) the brand. Is the Realtor brand iconic? Prove it.
If you cannot feed 100 people, then just feed one ~Mother Teresa2. The National Association of Realtors must re-establish the fundamental principle that Realtors have a duty to SERVE consumers. This includes consumers who are in real need, not just those with 750 FICO scores. Do not leave any doubt of this.
If you have no charity in your heart, you have the worst kind of heart trouble ~Bob Hope
Realtors, are you ready to learn how to start your own blog….to learn how-to make money from social media? Watch the FREE Agent Tech Secrets video now…learn how to make money from Social Media…learn how to use Twitter!
3. Goodwill. There is no denying Realtors have a bad public image. NAR must raise public awareness of its commitment to public service and benevolence. And let’s be clear about one thing– real estate professionals throughout this great country ARE doing charitable acts– every day– except few know about it. It’s time to tell folks about this good work and encourage others to follow.
No act of kindness, no matter how small, is ever wasted ~Aesop
4. It’s good for business. People who are in need will reach out to those professionals expressing a desire to do pro bono work. After these folks are helped, they will tell others. And they will never forget the good deed. People who are not in need will nonetheless be drawn to professionals whose moral compass is pointed in service to their fellow man. Competence with charity is a compelling message.
Charity sees the need, not the cause ~ German proverb
5. The times cry out for it. Americans have been hit by a financial Katrina. Do not leave them to wait for their government to help them. Let us find ways to keep families (children) in their homes instead of figuring out ingenious ways to make money from their misfortune. The time for pointing fingers is behind us. If, indeed, we, as a people, have voted for Change, let us work for change in the industry which is the foundation of this nation’s wealth.
The existing Realtor Code demands it:
Such interests impose obligations beyond those of ordinary commerce. They impose grave social responsibility and a patriotic duty to which REALTORS® should dedicate themselves, and for which they should be diligent in preparing themselves. REALTORS®, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor. (Preamble, National Association of Realtors Code of Ethics, 2008)(emphasis added)
Here is a simple starting point:
Voluntary Pro Bono Public Service
Every Realtor who is able has a professional responsibility to provide real estate related services, without compensation, to those unable to pay or of limited means. Every Realtor should aspire to render pro bono service on at least one (1) real estate transaction per year.
You must be the change you want to see in the world ~GandhiLet’s do more than just think about it. Let’s do it.
If you support this initiative, add your voice and share this with other real estate professionals, especially those who are in position to effectuate or influence change. I have witnessed bloggers bring about change before.
Popularity: 2% [?]
