Realtor Coaching & Training: real estate coaching
The S&P Case Shiller Home Price index was just released. Here are the talking points:
* Home Prices RISE for the 7th straight month in a row!
* Government intervention IS a huge factor. Agents, remember….this ‘intervention’ end this spring AND don’t expect for the buyer credit to be extended.
* Very uncertain what will happen once the government stops buying MBS (Mortgage Backed Securities) and interest rates rise. Higher rates = fewer buyers.
* Added insecurity from the ending of the home buyer tax credit. Dr. Shiller seemed to believe that once the credit expires the market will suffer.
* Home prices are almost at pre-bubble values…2000. So…yeah…if you are going to own your home for a long time…it is indeed..A GREAT TIME TO BUY.
* Double dip in housing can’t be ruled out. Dr. Shiller was concerned that once the interest rates rise, the credit expires there may be a ‘double dip’ in national home values.
* Not optimistic for builders in the short run.
* Housing has no momentum..negative or positive.
* Unemployment rate and consumer confidence
* His bottom line, once the bubble appreciation is completely deflated.
* Long term? Slow…boring…moderate to low (or no) home value appreciation for the long run. Homes are a place to live…NOT and ‘investment’.
Here is a video from CNBC:
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We have been hearing from HREU Students for well over a year about this housing trend…Multi-Generational house holds.
In Europe this is normal. Travel to Italy and you will find that most families live together, sharing a home. Will be interesting to see if this is a real estate trend….due to the Great Recession…or if this is a real estate Mega Trend signifying a lasting shift in housing.
From a cultural and real estate perspective, this trend is a good thing for our country. Generally speaking, closer relationships with your family is a beneficial. If we look at this trend from a real estate perspective it makes sense that multi-generational house holds will need more space…more space means larger homes. So, there could be a light at the end of the tunnel for the savagely beaten down McMansion/ Luxury type properties. Maybe the next wave of buyers for these types of homes isn’t the traditional ‘move up buyer’ but, a multi-generational house hold buyer.
Agents, what are you experiencing? Are you working with buyers who are buying for more than just their immediate family?
More generations are living under the same roof and the trend will deepen as U.S. families grappling with near double-digit unemployment share expenses, a study showed Monday.
Demand is escalating for multi-generational housing as buyers scale down during the deepest housing crisis since the Great Depression, according to a survey by Coldwell Banker Real Estate in Parsippany, New Jersey.
Thirty-seven percent of the company’s real estate agents polled in January said that in the past year, buyers were increasingly shopping for homes that fit more than one generation.
Almost 70 percent of the agents said they expect economic conditions will drive still greater demand for this type of housing over the next year.
“More buyers are pooling investments, considering bringing mom and dad into it,” said Diann Patton, a Coldwell Banker real estate consumer specialist based in Grass Valley, California, in an interview with Reuters.
Buyers were primarily driven by financial concerns when deciding to combine generations in a household, the survey found. Health concerns were the second most common reason and strong family bonds a distant third.
Patton said one of her clients sought to bring her mother out of a health care facility. The mother and daughter pooled resources, buying a house with separate entrances with units for each and room for a caregiver.
This shift in homeownership comes as unemployment hovers just under 10 percent and many consumers are being dealt wage cuts. College graduates unable to get jobs are often returning to their parents’ homes.
Merging generations under one roof could foster more demand in the struggling move-up market, with families buying together to get larger homes than the entry-level houses some might otherwise be able to afford. Some current supports for buyers will soon end.
Borrowers eligible for a $6,500 federal tax credit aimed at move-up buyers, as well as the $8,000 first-time buyer credit, need to sign contracts by April 30 and close on loans by the end of June before these programs expire.
Downsizing also comes on the heels of massive overbuying during the housing boom earlier this decade. Many consumers bought more house than they could afford, spurring a tidal wave of late payments and foreclosures.
The government has been compelled to spur lenders to modify mortgage terms for struggling borrowers still occupying their homes. But so far, lenders have been unable to keep pace with the number of mortgages that are failing.
On the plus side, houses are more affordable after prices toppled about 30 percent, on average, from 2006 peaks and with 30-year loan rates holding near record lows under 5 percent.
Coldwell Banker, a unit of Realogy, based its online survey of multi-generational home trends on responses from 2,360 of its real estate agents.
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Something a little different for all of you…to tide you over until Monday.
Remember the Movie, Wall Street from 1987? (Can you believe that was over 20 years ago?!)A classic movie with the famous line, ‘Greed is Good”. Perhaps in retrospect far too many young ‘yuppies’ who were just starting their careers on Well Street took those words far too literally…based on the current greed enduced economic crisis our world is currently digging itself out of.
In case you haven’t heard…Oliver Stone is about to release a sequel in April 2010. Regardless, if you are an Oliver Stone fan or not…or a fan of the original Wall Street…you have to admit, this movie is being released at the perfect time.
My favorite line from the original move, “Stop going for the easy buck and start producing something with your life. Create, instead of living off the buying and selling of others.”
Here is the trailer. Give this a watch and let me know what you think….will YOU see this movie?
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BREAKING NEWS….
* Strategic Defaults…so-called walk aways..are the rising wild card. 25% off all homeowners with mortgages are now upside down.
* Delinquent 9.47%
* 90 day delinquents…5.09%
* 30 day delinquents..3.63%
* Largest quaterly decline
* In foreclosure 4.58%
* Total number of ALL US HOME Mortgages in trouble: 15%
Agents, the bottom line is…2010 IS the Year of the Short Sale. The number of homeowners in trouble is now at a record rate. Learn how to help those homeowners. Watch the free HREU CDPD Agent Short Sale video and grab your free short sale guide. Learn the new 2010 ways to list and sell short sales.
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Join us for the week’s FREE Superstar Interview featuring:
Valerie Fitzgerald. 
Long time HREU Students will recall that we interviewed Valerie about a year ago. That interview has proven to be one of the most popular interviews ever. Due to popular request we asked Valerie sit down with us again and share her perspectives on the ultra high end real estate market. Valerie’s market is Beverly Hills. Valerie calls many of Hollywood’s best known movie stars and celebrities her clients.
Go here now for all the Superstar Interview Event information <———Important link, click for free event info.
Here are a few of the questions we have prepared for Valerie’s interview:
1. How long have you been selling real estate..if you had to guess, how much in terms of dollar volume have you sold?
2. What are the 2-3 biggest secrets..the most important keys to your long term success?
3. Describe your typical client? Has that client profile changed over the last 36 months?
4. Can you share with us a celebrity real estate story?
5. How do you lead generate…what are your biggest sources for new listings etc?
6. What have you stopped doing…because you realized it was a waste of money or because it no longer worked?
7. In this price range…how important is it that you are using social networking…and being connected online?
8. Are you having to deal with the chronic upside down issue that is effecting most markets? (where the seller owes more than the homes value)
9. Are you experiencing any ‘distressed sellers…or maybe strategic defaults’
10. In this market…are you seeing more clients wanting to move UP in price..or down? How are your clients financing their transactions?
11. With the upper end luxury home market, what are the biggest trends you are experiencing?
12. What effect has the economic collapse had on the buying and selling decisions of your clients?
13. When we spoke last we discussed the fact that there seemed to be a shift away from mass consumerism towards…something else…maybe voluntary simplicity..has this trend continued?
14. How have you changed as a result of the shift in the economy and housing market…personally and professionally? (Reduced or added overhead etc.)
15. Your market is obviously very competitive….when you don’t take a listing…why? What have you found to be the reasons why a seller may choose to list with someone else?
16. What are your biggest challenges..what are your ‘works in progress’?
17. You have been one of the nations leading agents for years…so, you know how to succeed consistently…what have been your biggest real estate career mistakes or mis-steps?
18. If you don’t mind sharing…what are your goals for this year..for your real estate business? What drives you?
19. How do you hold yourself accountable?
20. If someone asks you if they should consider real estate as a career…what do you tell them?
17. You wrote a very popular book….Heart and Sold…your book has received rave reviews…why did you write it?
A little more on Valerie:
We are a Beverly Hills real estate brokerage and are experts in the buying and selling of luxury homes and condominiums.
We represent Buyers and Sellers in all luxury real estate communities including Beverly Hills, Bel Air, Brentwood, Hollywood Hills, Santa Monica, Pacific Palisades,Venice and Malibu.
Our extensive knowledge of luxury real estate and all price ranges will give you confidence when you work with our team that you will make informed decisions in the buying and selling of residential real estate at all times.
Our team is comprised of talented, dedicated administrative and real estate professionals. We have a strong track record of providing quality service and strong local market representation to our Buyers and Sellers in all real estate markets. Contact Valerie Fitzgerald today.
Valerie Fitzgerald has 20 years experience as a leading Los Angeles real estate broker in the Beverly Hills area and surrounding neighborhoods. She’s authored a newly published book by Simon and Schuster called Heart and Sold: How to Survive and Build a Recession-Proof Business, lending practical advice and tools for new and seasoned real estate agents.
Valerie’s awards:
| 2008 Wall Street Journal – Top 200 in Real Estate Nationwide Award |
| 2008 Los Angeles Business Journal – Excellence in Marketing Award |
| 2007 #11 Agent Worldwide – Coldwell Banker |
| 2007 #3 Agent Westside Los Angeles – Coldwell Banker |
| 2007 #4 Agent Southern California – Coldwell Banker |
| 2006 #3 Agent Greater Los Angeles – Coldwell Banker |
| 2006 #4 Agent Worldwide – Coldwell Banker |
| 2005 #1 Agent Beverly Hills – Coldwell Banker |
| 2005 #11 Agent Worldwide – Coldwell Banker out of 117,000 agents |
| 2004 #1 Agent Beverly Hills – Coldwell Banker |
| 2004 Nominated: Women Making a Difference – Los Angeles Business |
| Journal Award, Small Business CEO category |
| 2003 #7 Agent out of 113,000 worldwide – Coldwell Banker |
| 2003 #1 Agent Beverly Hills – Coldwell Banker |
| 2002 #1 Agent Beverly Hills – Coldwell Banker |
| 2002 #6 Agent for All Companies – in US Realtor Magazine |
| 2001 #3 Agent Worldwide- Coldwell Banker/ National |
| 2001 #1 Sales Top Producer – Coldwell Banker/ Beverly Hills |
| 2001 Women of Achievement Award – Big Sister’s Organization Los Angeles |
| 2000 #7 Agent Worldwide – Coldwell Banker/ National |
| 2000 #1 Sales Top Producer – Coldwell Banker/ Beverly Hills |
| 2000 #1 Top Sales Volume LA County – Los Angeles Business Journal |
| 1999 #4 Agent Internationally – Coldwell Banker/ National |
| 1999 #1 Sales Top Producer – Coldwell Banker- Jon Douglas / Beverly Hills |
| 1998 #5 Agent Internationally – Coldwell Banker/ National |
| 1998 #1 Sales Top Producer – Coldwell Banker- Jon Douglas/ Beverly Hills |
| #1 Sales Top Producer – Coldwell Banker- Jon Douglas/ Beverly Hills |
| 1998 “Realtor to the Stars” – Feature July Issue Marie Claire |
| 1997 #1 Sales Top Producer – Coldwell Banker/ Beverly Hills |
| 1997 Chairman’s Circle Award – Top 1% Real Estate Agents Nationwide |
| 1997 Top 100 Sales Associates Nationwide – Prudential California Realty |
| 1996 Chairman’s Circle Award – Top 1% Real Estate Agents Nationwide |
| 1996 #1 Sales Associate – Prudential California Realty |
| 1996 Top 100 Sales Associates Nationwide – Prudential California Realty |
| 1995 Chairman’s Circle Award – Top 1% Real Estate Agents Nationwide |
| 1995 #1 Sales Associate – Prudential California Realty |
| 1995 Distinguished Member – Who’s Who Worldwide |
| 1994 #1 Sales Top Producer – Prudential California Realty |
| 1994 Distinguished Member – Who’s Who Worldwide |
| 1994 Chairman’s Circle Award – Top 1% Real Estate Agents Nationwide |
| 1994 Top 100 Sales Associates Nationwide – Prudential California Realty |
| 1993 Chairman’s Circle Award – Top 1% Real Estate Agents Nationwide |
| 1992 #1 Sales Associate – Prudential California Realty Beverly Hills |
| 1992 #7 Sales Top Producer Nationwide – Prudential California Realty |
| 1992 Largest Residential Trade Transaction in West Side Real Estate History |
| 1992 Chairman’s Circle Award – Top 1% Real Estate Agents Nationwide |
| 1991 Chairman’s Circle Award – Top 1% Real Estate Agents Nationwide |
| 1991 Top 100 Sales Associates Nationwide – Prudential California Realty |
| 1988 Second Largest Purchase – Alvarez, Hyland & Young |
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Great CNBC Video..
Pay attention to what they have to say about strategic defaults….as we have been reporting for nearly 3 years…the housing crisis will linger on (and on) as long as homeowners are upside down…no equity, no incentive to stay.
There is no doubt that 2010 is the year of the short sale. Its not too late for you to become a HREU CDPD (Certified Distressed Property Designation). Watch the FREE Agent Short Sale Secrets video now…and download your FREE Short Sale Book!
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Interesting article from Bankrate.com. Worth sharing with your real estate clients.
Entering 2010, many home sellers feel they’re mired in the winter of their discontent, but there are signs the real estate market is on the mend. Sales activity is up, homebuilders are finally moving inventory and values are rising slightly in many American cities. At year-end 2009, mortgage rates stood at historic lows, spurring a wave of new applications.
But don’t be too jubilant. A recent report by Deutsche Bank estimates that by 2011, about 48 percent of all U.S. mortgages will be underwater. Short sales and foreclosures will continue to put pressure on home prices in 2010 as they work their way through the pipeline slowly. It was apparent in 2009 that lenders were holding back much of their foreclosure inventories and REO, or real estate-owned property, in an effort to keep values up.
Translation: 2010 IS the Year of the Short Sale. Expect the number of approved short sales to skyrocket in 2010-2011. Learn the NEW ways to easily list and sell short sales. Watch the FREE HREU CDPD Short Sale Secrets video now…and grab your FREE Short Sale book.
Meanwhile, housing’s biggest economic driver — the job market — continues to stagnate as average unemployment remains high, at around 10 percent. So it’s no surprise the new year will ring in another buyer’s market, though with far more upside than in 2009. With that as a backdrop, here are 10 real estate tips for homebuyers and owners in 2010.
Tip 1: Take up Uncle Sam on his offer.
The $8,000 first-time homebuyer tax credit program that helped jump-start the real estate market in 2009 has been extended into 2010 and expanded. First-time homebuyers who sign a binding contract to buy a home by April 30, 2010, and close on it by June 30, 2010, qualify. The program’s maximum income limits have jumped from $75,000 to $125,000 for individuals and from $150,000 to $225,000 for couples.
For those who have owned their homes for at least five years and want to trade up to a different primary residence, a separate $6,500 tax credit has been added. Further, many homeowners who are underwater in their real estate loans are eligible for a loan-modification program with their current mortgage company or loan servicer through the Making Home Affordable Program.
The buyers want to imagine themselves in the house for years to come and your excess decor and whatnots only distract from this vision. And don’t get defensive about colors or design patterns or flooring that you love. It’s OK to grit your teeth as you grin. Let your agent be the buffer. Remember, the customers (your buyers) are always right, unless, of course, they’re low-balling you.
Might as well get a piece of that big stimulus pie while it lasts. At some point, the federal government will have to let the toddler walk on its own legs.
That time…is April of this year. Let your buyers know that they must buy now if they want to take advantage of the tax credit…
Tip 2: Find down payment assistance.
There are several down payment assistance programs for first-time homebuyers at the federal and local levels. Other down-payment assistance programs that can piggyback ongoing federal programs are often available at the city, county and state level. Just conduct an Internet search for “down-payment assistance programs” with your locality’s name added.
Tip 3: Make home improvements now.
For households with access to credit, now may be the best time in years to fix up the homestead, either for a potential sale or simply for the sake of better living. Low financing costs, reduced construction materials costs and lower contractor costs make rehabs more affordable. Repairs that typically yield the highest returns are kitchen and bathroom makeovers with an emphasis on counters and cabinets. Get three different estimates. Then, factor in an additional 10 percent for those on-the-fly “change orders” that inevitably crop up. See home improvement strategies and checklists at Homegain.com.
Tip 4: Hire real estate agents and home inspectors wisely.
Now is not the time to hire a friend or relative as your real estate agent, especially with one of the most important transactions of your life on the line in this still-shaky market. You want someone who is well-connected with other agents, lenders and other fellow industry pros. Check credentials, references and recent performance histories.
Translation: only work with agents who know how to do short sales….list and sell REOs. Agents who have the new mindset of service and the needed skillset to be of service and having their best years ever. Its NOT too late for you to become a REO listing agent. Watch the FREE Agent REO Secrets video and download the FREE Agent REO Secrets book.
If you’re hiring an appraiser, make sure he or she is a veteran with at least five years of experience who’s appropriately state-licensed or state-certified. Because of potential conflicts of interest, don’t pick one based solely on a reference from a real estate agent. The same diligence should apply to hiring a home inspector. Conduct reasonably brief phone interviews with at least two or three before you choose.
Tip 5: Price accordingly, sellers.
This should be on every real estate seller’s priority list. In most of the U.S., there are few reasons that a house can’t go under contract in 60 days or less. The listings that generate activity while others gather dust are typically those whose owners have adjusted expectations based on comparably priced homes, or “comps.” That doesn’t mean you should drop your price precipitously on your well-maintained home to undercut the litany of poor-condition foreclosure homes. It just means “price to the present,” not to a fantasy market.
Tip 6: Don’t wait out the recovery.
Yes sellers, housing has been repriced. And by the looks of things, it will take years — even a decade or more — for values to return to their highs of two years ago. That potential loss you’re fretting over may only be on paper, especially if you’ve been in the house awhile. Example: Take a move-in-ready house that appraises for $250,000. Because there’s competing inventory, your agent advises you to take 10 percent off the price. Now you’ll be selling for $225,000. “Ouch,” you might say. But consider that you only paid $175,000 for the place in 2000. So how is a $50,000 profit, a loss? What’s more, if you’re planning to move up in the same or a similar market, you will likely realize that same 10 percent discount on your move-up purchase.
Tip 7: Think long term.
Buyers, don’t settle for “good enough.” Just because you’re getting a bargain doesn’t mean you’re getting a home that suits your long-term needs. Think functionality, neighborhood, location, access to services, highway access, work routes, schools, relatives and mass transit, and not price only. Do your homework, keep a cool head and carefully examine all the options. If you can spare the time, give yourself an extra month or two to make a decision. A house is a habitat first, an investment second.
If you want to take it a step further, you can buy greener (and more expensive) energy-saving products, including solar energy systems, geothermal heat pumps, small wind systems, residential fuel cells and micro-turbine systems, and get 30 percent tax credit with no spending limit on each system, through 2016. Go to EnergyStar.gov’s Federal Tax Credits for Energy Efficiency for a complete summary.
Tip 9: Consider rent-to-own deals.
The current market has driven many former homeowners into rentals, where they have nothing to show for their payments. Rent-to-own or lease-to-own deals allow buyers to “tire-kick” a home for a designated period while paying a higher-than-market rent to buy down an eventual down-payment. This gets renters vested in a home while they repair their credit and also helps frustrated sellers generate an above-market revenue stream. Make sure to draft a very specific contract that spells out all the options.
Tip 10: Don’t take or make it personal.
Our homes have such a personal connection to us that we’re often challenged to turn them back into just plain houses when it’s time for us to sell. It is always best to remove personal effects such as pictures, knickknacks, mementos, trophies, greeting cards and the like before showing a house. (A good agent or home-stager should emphasize this.) There is a rule of thumb that you should count every item in every room of a for-sale home and eliminate or store 50 percent of them.
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