Real Estate Associates Cape Cod Real Estate News

Friday Facts June 10, 2011

2011-06-10T08:45:00.001-07:00

FRIDAY FACTS
June 10, 2011

NAR reports that nationally, pending home sales fell 11.6% this April compared with March. They fell 26.5% comparing April 2011 with April 2010. In the Northeast, pending sales rose 1.7% in April compared with March, but fell 33.4% in April 2011 compared with April 2010. In Barnstable County, pending single family sales fell 18.3% this April compared with last April.

Inman News reports that real estate investors are likely to be three times more active than other types of home buyers in their local markets in the next two years

Inman also notes that housing affordability hit a new record high in the first quarter of 2011. Nationwide, 74.6% of homes sold were affordable to families earning the national median income of $64,400.

The latest Case-Schiller Housing Data shows that U.S. home prices fell to 2002 levels in March.

RIS Media had an article on International buyers in the U.S. 30.8% came from Europe. 27.5% came from North America. 25.2% came from Asia. The rest were from Latin America, Africa and Oceania. 69% of their purchases were single family homes, 18% were condos. They paid on average 20% more than the domestic buyer and 45% paid cash.

An article in Inman News indicated that foreclosure sales were 28% of U.S. home sales in the first quarter of this year and that those properties sell on average 27% less than non-foreclosed properties.

Friday Facts March 25, 2011

2011-03-25T07:36:00.000-07:00

FRIDAY FACTS
March 25, 2011

Although the government has no money, HUD is increasing the grant amounts of $27.6 million in 2010 to $40.8 million in 2011 used to investigate allegations of housing discrimination, educate the public and housing industry about their rights and responsibilities under the Fair Housing Act. Most the money ($28 million) will go to enforcement initiatives.

From Inman News: Beach.com will launch this summer. It will feature customized searches for beaches, beachfront property and land for sale and for rent, hotels, restaurants and travel deals.

Also from Inman: In an attempt to insure accuracy of data, Trulia is providing a free system, Trulia Direct Reference. Participating MLS’s provide accurate data on factors such as list price and status. The system automatically reports discrepancies back to the MLS, broker, and listing agent. The agent can then visit the 3rd party sources and make corrections.

RealTrends reports that Realty Trac has released a foreclosure search widget which allows users to insert a fully functional nationwide foreclosure property search on their websites which delivers real time foreclosure data from Realty Trac.

As if Zillow’s zestimates for home sale price weren’t enough, they will now provide rent zestimates for about 70% of all U.S. homes and apartments.

Friday Facts March 18, 2011

2011-03-18T07:15:00.000-07:00

FRIDAY FACTS
March 18, 2011

Beware unintended consequences. An article in RISMedia quotes John Badalamenti, Prudential Fox & Roach Realtors, Wayne, PA, “Buyers are still looking for perfection with comfort. As a result of the home staging craze, buyers have become a bit spoiled. Homes are almost being put on the market as museum pieces. You can bounce a dime off a bed.”

Steve Murray notes in RealTrends, “Finding a niche, a special market segment, will be key to prosperity in the future. What’s new about this, is not that this is the lesson for sales professionals, but that now even brokerage firms will have to specialize in some form or format of brokerage – no more can a brokerage be all things, to all people, at all times.”

Here are excerpts from an article in the Wall Street Journal on February 26, 2011 entitled, “Five Signs That Say ‘Buy’:
Jobs. Jobs data are about one month old and can show the direction of the local economy.
Recent Sales Activity. Look at a composite of housing inventory, sales volume and prices.
Construction. Check the number of building permits issued recently.
Mortgage Availability. Gauge local lending patterns
Anecdotal Evidence. Check out open houses and talk to local agents.

· A Re/Max office has now opened in a Stop & Shop in Springfield, MA, part of a 5 year deal between Re/Max and Stop & Shop.

· Gahlord Dewald reports in Inman News that last week, Google rolled out a new algorithm change, a result of growing concern over the quality of search results on Google. The new algorithm is meant to deliver higher quality search results. It means that the quality of real estate content on websites is now being mathematically calculated.

· From ICREA’s WorldProperties.com, during January and February, Canadian property entrepreneur, Cam Good, sold more than 500 homes to mainland Chinese investors and immigrants in the Vancouver and Toronto areas.

Friday Facts March 11, 2011

2011-03-11T08:14:00.000-08:00

FRIDAY FACTS
March 11, 20100

According to an article in the Wall Street Journal on February 16, 2011, the down payments demanded by banks to buy homes have ballooned since the housing bust forcing many people to rethink what they can afford and potentially shrinking the pool of eligible buyers. Median down payments in 9 major U.S. cities rose to 22% on conventional loans. That percentage doubled in 3 years and represents the highest median down payment since tracking began in 1997.

From a blog by Steve Murray of RealTrends: The market is shifting again. Indications are that listings may be moving back into a position of importance. With the growing strength of such sites as Realtor.com, Zillow and Trulia along with strong traffic on Craigslist, having listings online is driving an increase in traffic to sales professional websites.

Inman News reports that Realty Trac’s 2010 stats show that 1 in 4 sales or 26% of U.S. home sales were foreclosures. On average, they sold for more than 28% less than those homes not in foreclosure. Realty Trac’s CEO says that the Catch 22 for 2011 is “accelerating foreclosure sales will help clear the oversupply in the long run…in the short run they’ll continue to weigh down home prices”.

RISMedia posted that HomeGain.com announced the results of its FSBO versus Realtor survey. 83% of sellers surveyed used a Realtor, and of those, 59% sold. 17% of sellers did not use a Realtor, and of those, 39% sold. 24% of FSBO’s eventually enlisted a Realtor to help sell the home.

Good news and bad news. NAR reported that nationwide, existing home sales were up 2.7% in January. This is the first time in the last 7 months that sales were better than in the previous year. NAR also reported that pending home sales fell 2.8% in January which was the second straight monthly decline and the slowest pace since October.

Friday Facts March 4, 2011

2011-03-04T07:04:00.001-08:00

March 4, 2011

Harry S. Truman said, “A pessimist is one who makes difficulties of his opportunities and an optimist is one who makes opportunities of his difficulties.”

Corelogic reports that stats published by NAR appear to overstate sales of existing homes by 15 to 20% and that home sales fell more sharply last year than previously thought according to an article in Inman News.

ICREA notes that the rate of decline in property values in Ireland moderated in 2010 but that lack of availability of mortgage financing for qualified buyers has put further pressure on the property market. Sound familiar?

Again from ICREA, prices in Spain are down 5% from a year ago and are now almost 20% below the peak in 2007. New Zealand is currently operating at very steady value levels although the numbers of properties being sold has reduced substantially from pre-2008.

Here’s a tip for agents from Bernice Ross in Inman News: “If you post an ad for one of your listings on your Facebook profile page, you have violated the terms of use and can have your account cancelled. You are only allowed to post information about your listings on fan pages, business pages and Facebook Marketplace.

And, a tip for sellers from Dian Hymer in Inman News: “The information reported in the public record is often wrong. Before you put your home on the market, find out what the public record reports on the characteristics of your home and try to correct any mistakes that could work against a sale.”

Friday Facts February 25, 2011

2011-02-25T07:04:00.001-08:00

FRIDAY FACTS
February 25, 2011

Did you know that in February 2010, “spot loan” approval to obtain FHA condo financing was terminated, and every single condo development has to have project approval by HUD?

Google no longer has real estate listings on the classified listing site on Google Maps.

In the fourth quarter of 2010, 11%, or 18.4 million, of the 130 million housing units in the U.S were vacant.

A panelist at the Inman Connect Conference noted that since 1980, homes outperformed gold, 2.5 to 1.

One of the largest real estate sites has been formed by the merging of the Zillow and Yahoo Real Estate sites. Later this year, look for a similar partnership when Move’s Realtor.com uses the recently acquired ListHub to syndicate listings to AOL Real Estate.

Bernice Ross writes in Inman News of three points in time to coax an unrealistic seller into a price reduction:
When they’ve had 10 showings with no offer
When they’ve had 200 online page views with 2 or fewer showings
After 30 days.

Friday Facts February 18, 2011

2011-02-21T07:07:00.001-08:00

FRIDAY FACTS
February 18, 2011

FOLLOWING ARE SOUNDBITES FROM THE INMAN CONNECT CONFERENCE HELD JANUARY 12-14 IN NEW YORK CITY.

Websites should be built for the user. Give them only that. Make it easy. Don’t make them think. You have about 3 seconds to get them engaged. You need a simple, well-designed, professional home page.

Someone who gives a phone number takes precedence over someone who gives and e-mail address because they’re ready to deal with you NOW.

Watch your social media. Tweeting, “I’m showing this listing that’s perfect for a single student at NYU” would be a Fair Housing violation.

Marketers will begin to realize the value of attention, not just reach and impressions.

The information overload has resulted in a lot of talk about “curation”, and those who can separate art from junk. Some will be automated; some will be powered by humans.

Evernote is the new post-it. Sync it to all your devices.

A panelist from Zillow noted that in New England, more than others, addresses aren’t displayed. It’s a mistake because the consumer wants the address. Mapping is a popular way to search. The Zillow app is GPS based and without an address, the listing doesn’t appear. With an address there is 5X more property search, 6X more page view, and 6X more e-mail contact.

Realtor.com says that one of their most popular categories is “sort by # of photos”.

In 2010, 41% of buyers found the house themselves and 37% found the house through a Realtor.

Bigger ads don’t create dumber buyers. Most buyers know what’s going on. Pricing properly is critical. Look at your CMA and take 10% off. Watch the delinquency rates in your market (by county – can access on the NY Fed website) and let your seller know.

98% of people who fall 3 months behind never catch up. Nationwide, 7.6% of all property is 90 days behind, 12.9% of those properties over $1 million, and 14.8% of those over 4 million.

Friday Facts February 11, 2011

2011-02-11T07:38:00.003-08:00

FRIDAY FACTS
February 11, 2011

Here’s a notable quote from Tracey Velt in a RealTrends blog, “I was in the market for a house in 2005. Unsure whom we wanted to use as our real estate professional, my husband and I called the listing agents for properties we would consider. We looked at 10 homes, 10 different listing agents. Only one prequalified us. Only one took our names and asked us what we were looking for. Only one found out that we had two houses to sell in addition to the home we were buying. Guess who got our business? Guess who we’ll call the next time?”

From DSNews.com: David Shulman, a senior economist with UCLA says, “Unfortunately, even with the job gains averaging 150,000/month in 2011 and 200,000/month in 2012, unemployment will remain above 9% through the 3rd quarter of 2012.”

From an article by Mary Ellen Podmolik in RISMedia: “Looming large over the mortgage market are provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act that have yet to be finalized. Among them is a requirement that mortgage lenders maintain some ‘skin’ in the game on the mortgages they originate by holding at least 5% of the credit risk rather than bundling the loans and selling them off entirely.”

NAR projects sales of existing homes will rise 7.9% to 5.3 million in 2011, and that median price will rise .5% to $173,800.

Think about it. Teresa Boardman writes in Inman News, “I am working with a single father who wants to make sure there are children in the neighborhood for his son to play with. One simple thing parents can do is look for swing sets. If there are swing sets, there are probably children to go with them. If I encouraged him to live in a neighborhood with a large population of children, I would be guilty of steering”.

Friday Facts February 11, 2011

2011-02-11T07:38:00.001-08:00

Friday Facts February 4, 2011

2011-02-04T07:51:00.001-08:00

FRIDAY FACTS
February 4, 2011

An article in RISMedia, “Extended Families Come Together under One Roof to Make Ends Meet” offers the following statistics: The average home today has 2.59 people, the highest number in a decade, and just 357,000 new households were formed in the U.S. last year, the lowest number since at least 1947.

In the Bay State Realtor, Robert Kutner, Esquire writes on the Massachusetts Supreme Judicial Court’s recent ruling that every property owner now has a duty to use “reasonable care” for the protection of others from hazards arising from snow and ice. He suggests that every owner should:
Review insurance policies to be sure there is adequate coverage
Determine whether contractors or those hired to remove snow and ice have insurance
Be vigilant when there is newly fallen snow or when temperatures allow melting and re-freezing. If complete clearing is not possible, warning signs may be appropriate.

§ When representing buyers, keep in mind a statistic from Mary Umberger in Inman News that 45% of home owners association managers say their groups are facing “serious” problems as a result of the economic downturn, and 9% describe their situation as “severe”.

§ RISMedia notes that the 2010 census shows movement of people from the Northeast and the Midwest to the South and West. Texas was the big winner in the decade just ending. With its low home prices and pro-business, pro-growth policies, Texas felt relatively little effect from the housing melt down and has bounced back from the recession faster than other big states.

§ Zillow’s traffic in December exceeded 13 million unique users, up 77% from the previous December.

§ RealTrends reports that the annual consumer credit forecast from U.S. credit bureau TransUnion foretells a 20% drop in national mortgage loan delinquencies by the end of 2011.

Friday Facts January 28, 2011

2011-01-28T09:02:00.001-08:00

FRIDAY FACTS
January 28, 2011

RISMedia has an article by Chip Poli on 4 Tips to Ensure a Smooth Real Estate Transaction:
1. Have your client check their credit score to make sure they meet minimum requirements. Don’t waste your time showing homes to someone who can’t buyer them.
2. Have your client obtain a pre-approval
3. Make sure your client has set aside enough cash for closing
4. Your client should be prepared to pay closing costs unless they qualify for a no points, no closing costs loan.

§ Here’s an interesting response from Tara-Nicholle Nelson in Inman News to a seller complaining that her agent didn’t show their home to her own buyers, just to other agents with their clients. “You seem to be operating under the impression that your agents primary job is to personally procure buyers and show them your home herself. In fact, your agent’s primary job is to market the property, not just or even primarily to buyers, but to buyer’s brokers.”

§ Carl White, Chief Strategist for MortgageMarketingAnimals.com offers a simple 10 work email that will revive dead deals from months past for real estate agents:
Subject Line: A quick question for you
Email Body: “Are you still looking to buy a home on Cape Cod?”
He says that you may be tempted to add to this email, but don’t. It has three things going for it: It’s short, it’s personalized, and it’s expecting a response.

Here’s something to think about from a RealTrends blog: Jim Rohn’s philosophy on wealth – if you make a sale, you make a living. If you make an investment of time and good service in a client, you can make a fortune.

A new columnist for Inman News, Ken Harney wrote an article noting that the Obama administration is working on an energy scoring program for houses. They will shortly begin pilot tests of energy rating disclosures in 10 real estate markets across the country. Home sellers in France must provide their energy consumption rating scores to any interested buyer and as of January 1st, have to include their ratings in all ads whether online or in print, and at the real estate office..

Friday facts 1-21-11

2011-01-21T08:37:00.001-08:00

FRIDAY FACTS
January 21, 2011

In December, NAR estimated that the sales of existing homes in 2010 would be 4.8 million, down about 6% from 2009. Contributing factors were unemployment, tight credit and worries about further price declines.

From an Inman News story titled, “Real Estate Market to Hit Bottom in 2011?” Altos Research expects the housing recovery to start in about a year. From 2012 to 2014 or so, the company expects the market to stabilize and slowly improve, though high unemployment and high inventory will keep prices low even as transactions pick up over time.

Here’s a quote from Lou Barnes in Inman News: “Financial market people do all they can to ignore housing, hoping that one day it will just go away. On current trend, it might. This notion of consumer-based economic acceleration is fatally incompatible with all four home-price gauges reporting new declines (CoreLogic, Zillow, Federal Housing Finance Agency, Case-Shiller); and new declines in sales, with possibly no net absorption of inventory at all. A 1% increase in mortgage rates is not helpful.”

RealTrends reports that Freddie Mac’s servicers have been told to delay initiating foreclosures for at least nine months for financially troubled service members who are released from active duty through the end of 2011 and have Freddie Mac owned mortgages.

We’re doing better than many. CoreLogic reports that 15% of homes with mortgages in Massachusetts are worth less than the loan amount compared with 23% of homes nationwide

A holiday card sent by Inman News had a quote from Albert Einstein that we should internalize:

“Learn from yesterday
Live for today
Hope for tomorrow”

Friday Facts January 14, 2011

2011-01-14T08:38:00.000-08:00

Friday Facts
January 14, 2010

The CoreLogic report of 12/13/10 quotes their chief economist, Mark Fleming, “Negative equity is a primary factor holding back the housing market and broader economy. The good news is that negative equity is slowly declining but the bad news is that price declines are accelerating, which may put a stop to or reverse the recent improvement in negative equity.”

This same report notes the state where homeowners have the greatest positive equity: New York, 50%; Hawaii, 43%; Massachusetts, 40%; Rhode Island, 40% and Connecticut, 39%.

Inman News pulled “Tech Must-Haves for the New Year” from The Real Deal. They include:
QR codes – when scanned with the camera in a mobile phone, the user is given a message or website.
Docusign – allows contracts to be signed digitally
Mobile receipt – converts receipts into expense reports with the phone photo
Rulerphone – digitally measures objects after the phone’s camera takes a picture.
According to the Remodeling 2010-11 Cost vs. Value Report (www.costvsvalue.com), for mid-range remodeling projects, the following gave the greatest cost recoup upon sale in the Boston area:
1. 102.1% Steel entry door replacement
2. 72.8% Minor kitchen remodel tied with wood deck addition
3. 72.4% Vinyl siding replacement tied with wood window replacement
4. 72.2% Attic bedroom remodel
5. 71.6% Vinyl window replacement

· Inman News reports that the Congressional Oversight Panel overseeing TARP concluded that the Obama administrations Home Affordable Modification program will fall far short of its goals, and the Treasury Department’s failure to acknowledge this before it lost its authority to reallocate the $30 billion in TARP funds earmarked for the program means most of that money won’t be spent.

· From RealTrends: “Consumers today are expert comparison shoppers, always on the hunt for the best deal, but when it comes to their mortgage, borrowers often locked in their 1st home loan offer. According to a new Lending Tree survey, 96% of American consumers compare prices when shopping for anything but nearly 40% obtain just one loan quote.”

Friday Facts January 7, 2011

2011-01-07T08:48:00.000-08:00

FRIDAY FACTS
January 7, 2011

Nick Lonegrove reveals a disconnect in his article in Inman News: “Ask any real estate agent what they want their real estate website to be about and they will tell you that it has to reflect their track record, their successes, communicating their area knowledge, their expertise and that certain “je ne sais quoi” that makes them special … Ask buyers and sellers what they are looking for, and they will tell you that it really boils down to two things: the actives and the solds.”

Here’s the bad and the good news from a recent Zillow report: Homes are expected to lose $1.7 trillion in value in 2010. The second half of the year saw the largest decline. The loss in 2009 was $1.1 trillion. Since market peak in June of 2006, homes have lost $9 trillion in value, and Inman News notes that is equivalent to the cost of 12 Iraq wars. The good news is that among the 20 largest markets, only 3 saw an increase, the highest being Boston.

Facebook has 500 million active viewers – 250 million in the US. U.S. Facebook.com generates almost 1 in 4 page views in the US, 4X that of second ranked YouTube. Facebook represented 10% of US Internet visits in mid-November compared with 7% for search engine Google.

Think Big Work Small reports that Freddie Mac had a calculator on their website that spit out the wrong answers when determining whether it was a better option for a consumer to rent or buy. Calculations were based on the assumption that real estate prices would never go down

Friday Facts December 31, 2010

2010-12-31T06:31:00.000-08:00

FRIDAY FACTS
December 31, 2010

HAPPY NEW YEAR!

Bernice Ross of Inman News notes that education is the foundation for top producers. Top producers constantly seek new strategies, systems and technologies. The agents who really need the training don’t show up. Here are excerpts from her equation for more business in 2011:
Get out of the box. Open and read any training material you’ve purchased.
Small steps over time lead to big results
Work on your strengths, not your “shoulds”. If you hate it, you won’t do it. Identify what you enjoy.
Expand what is working
Focus on “right now” business
Don’t wait for the business to come to you
Stay in regular contact
Be an early adaptor.

To read the article, go to:http://www.inman.com/buyers-sellers/columnists/berniceross/real-estate-equation-more-business-in-2011

Friday Facts 12-24-10

2010-12-23T11:16:00.001-08:00

FRIDAY FACTS
December 24, 2010

Below is a chart that shows what happened to our market after the expiration of the tax credit. If you look at the year to date compared with last year, we still look okay with an 11.77% increase in the number of single family sales and a 3.12% increase in the number of condominium sales. However, the picture changes if you break the numbers into January through June and July through September. The first half of the year was extremely strong with a 35.84% increase in single family sales compared with the same period in 2009, and a 31.17% increase in the number of condominium sales. The second half of this year through November shows a 7.9% decline in the number of single family sales, and a 15.61% decline in the number of condominium sales for the same period last year.

CAPE COD & ISLANDS MLS
BARNSTABLE COUNTY

Time Period Type # $ Volume Median DOM

01/01/10-11/30/10 Single Family 2867 $1,323,197,065 $335,000 147 01/01/09-11/30/09 Single Family 2565 $1,112,055,593 $320,000 148

01/01/10-06/30/10 Single Family 1569 $ 771,432,784 $330,000 148
01/01/09-06/30/09 Single Family 1155 $ 464,713,233 $310,000 150

07/01/10-11/30/10 Single Family 1298 $ 611,764,281 $340,000 146
07/01/09-11/30/09 Single Family 1410 $ 647,342,360 $325,000 147

01/01/10-11/30/10 Condominium 595 $ 174,897,400 $245,000 190
01/01/09-11/30/09 Condominium 577 $ 158,326,021 $230,000 202

01/01/10-06/30/10 Condominium 303 $ 87,044,098 $238,000 190
01/01/09-06/30/09 Condominium 231 $ 61,428,074 $218,000 193

07/30/10-11/30/10 Condominium 292 $ 87,853,302 $251,000 190
07/30/09-11/30/09 Condominium 346 $ 96,897,947 $244,500 209

Now, more than ever, pricing a listing properly is critical. Here’s something from Dian Hymer in Inman News to use with your sellers: “It’s best to list your home at a price that buyers will perceive as a good value. Overpriced listings sit on the market. Real estate agents and buyers forget about them.

As difficult as it may be for sellers to consider a price reduction after only a couple of weeks on the market, that is often the best strategy. Buyers and their agents focus on new listings. Ideally, you want to reduce the price before your competition does.

Friday Facts 12-17-10

2010-12-16T12:04:00.001-08:00

FRIDAY FACTS
December 17, 2010
Here’s an interesting REAL Trends Comment by Steve Murray: The times they have changed
“Can we move on from the days where we thought we could manipulate consumers with the old saying “it is a great time to buy a home”? In the Internet age they can see for themselves and read for themselves what is going on in the housing market wherever they live and come to their own conclusions about whether it is or isn’t the best time to buy. Further whether it is or isn’t the best time to buy is a highly personal decision as well – do I need to make more, do I want to, can I bear the cost, can I get a decent price. Because while for some it might be a great time to buy, even the most over optimistic real estate professional might admit that it is a lousy time to sell.
The report from Fannie shows that consumers are far from the tipping point as far as the belief that housing has finished correcting. In some markets yes and in more than a few further corrections in price and inventory have yet to be completed. Those are just the facts on the ground.
We don’t do anyone any favors spouting “it’s a good time to buy”. Many consumers might think the pressure of this tough market has caused us to lose our collective minds.”
Nationwide, the average sales price of properties sold in some stage of foreclosure during the third quarter were discounted more than 32% compared with the average sales price of properties not in the foreclosure process.

Zillow now provides agent ratings for those agents and clients who have activated profiles on their site. Zillow will screen the reviews before publishing. They join the ranks of the Houston Association of Realtors, Redfin and Ziprealty in providing rating systems.

From a recent court ruling on whether agents should disclose a short-sale situation: “When a real estate agent is aware that the amount of existing monetary liens and encumbrances exceeds the sales price of a residential property so as to require either the cooperation of the lender in a short sale or the ability of the seller to put a substantial amount of cash into the escrow in order to obtain the release of the monetary liens and encumbrances affecting title, the agent has a duty to disclose this state of affairs to the buyer, so that the buyer can inquire further and evaluate whether to risk entering into a transaction with a substantial risk of failure.”

Friday Facts December 10, 2010

2010-12-13T09:06:00.000-08:00

FRIDAY FACTS
December 10, 2010

Inman News noted Corelogic’s reporting that the “shadow” inventory of homes likely to be repossessed or already in REO inventory but not yet on the market reached 2.1 million units in August, up from 1.9 million units a year ago. Because home sales have also slowed, that represents 8 months supply, up from 5 months one year ago. Adding the 2.1 million shadow inventory to the 4.2 million homes on the market, causes the total supply to reach 23 months of inventory, almost double NAR’s estimate in September.

Also in Inman News, as of January 31, 2011, the FTC is banning collection of fees in advance by for profit companies providing foreclosure rescue and loan modification services.

Fannie Mae is piloting a six month program, Home Path Online Offers, on its REO properties in Orlando, San Diego, and Detroit. It requires that offers be submitted online by agents representing buyers in an effort to increase efficiency, transparency and provide buyer’s agents with receipt of offer confirmation and tracking.

HudUser.org/portal/regional.html is a new HUD site with US Census Bureau, Labor Department and HUD data along with info from state and local governments and housing industry sources providing the latest available data on individual markets.

An NAR survey shows the impact of low appraisals. In October, 10% of Realtors had a contacts cancelled, 13% had a contract delayed and 16% had a contract re-negotiated to a lower sales price.

Friday facts December 3, 2010

2010-12-06T12:12:00.000-08:00

FRIDAY FACTS
December 3, 2010

Facebook is launching a messaging service that will meld all 3 forms of communication: e-mail, instant messaging and texting that can be managed through a single inbox on a PC or a mobile device.

Brian Montgomery, past FHA Commissioner recommends pulling FHA out of HUD because they have different mission statements. Additionally, FHA monies go to HUD and HUD refunds FHA 21 cents on the dollar.

RealTrends reports that Massachusetts, Washington, Maryland, New Jersey and Connecticut are the top 5 states at the forefront of the nation’s movement toward a global, innovation based economy according to “The 2010 State New Economy Index”. It measures the extent to which state economies are knowledge based, globalized, entrepreneurial, IT driven and innovation-based.

Also from Steve Murray (RealTrends): “… What we think is that we have some ways to go before housing truly has found its footing. And, that there are markets that are already recovering and those with years left to do so. Each market will recover at its own rate. Pay less attention to all of the national market metrics but close attention to your local conditions. In the end, that’s all that will truly matter to your business.

There is no Massachusetts law that requires that a home have a stove in place in order for it to be sold, according to Steve Ryan, MAR General Counsel

Recent issues in the news including the robo-signing controversy illustrate the importance of buyer’s title insurance. According to Mary Umberger in Inman News, “Industry data suggests that 1 in 3 title searches turn up some kind of fly in the property ointment.” She also cautions that title insurance just covers the purchase price of the home, and in the case of an as-is REO, the buyer may want to purchase a rider that covers improvements. “The product at its most basic insures that the person or entity selling a property really owns it and that others don’t have a legal interest in it or that other legal circumstances don’t cloud the seller’s right to convey ownership.”

Friday Facts November 26, 2010

2010-11-29T06:58:00.001-08:00

FRIDAY FACTS
November 26, 2010

According to “Think Big Work Small” HAMP, the federal government’s loan modification program has served 27,840 homeowners at a cost of $50 billion dollars. Hope Now, an alliance of 13 mortgage servicers, 360 counseling agencies and 1700 non-profits have served 147,425 homeowners at no cost to the taxpayer.

NAR is no longer making the email addresses of members available to other members after receiving complaints that spammers might be obtaining Realtors’ email addresses from NAR’s website.

RealTrends reports that third quarter homeownership rates remain at 66.9% which is equivalent to the 1999 rate of 66.7%. Each one point drop equates to roughly 1 million fewer homes.

Some lenders are abandoning MERS and going back to old-fashioned paper based system of physically recording mortgages to insure an unbroken chain of title.

NAR’s RPR is now live in 43 of 135 nationwide markets. CC&IMLS will be online December 14th. Realtors whose MLS’s haven’t signed onto the project won’t have access until the 4th quarter of 2011 and will then only have limited access. They won’t see active or historic listing data for their market.

Did you know that the value of U.S. real estate purchased annually by international buyers was $66 billion? 55% of global buyers paid cash. The median price paid by international clients was $219,400. There are 59 countries with REALTOR alliances. Global transactions took place in all 50 states.

Friday Facts 11-19-10

2010-11-19T07:03:00.001-08:00

FRIDAY FACTS
November 19, 2010

When your sellers want to wait for the spring market when all will be sunshine and roses, let them know:

Inman reports that housing is still deteriorating. The brand new guide to underwriters at Mortgage Guaranty Insurance Corporation (MGIC) covering 73 metropolitan areas found 27 “stable”, all the rest were “weak” or “soft”. Of the stable, 12 are softening leaving only one metro area in 5 truly steady.

Inman also quotes a Zillow report that nationwide, home values fell for the 17th straight quarter, a 25% drop from the market peak in June ’06. The current housing recession is rivaling the Great Depression’s real estate downturn.
According to NAR, during the year ending in June 2010, 1st time buyers accounted for half (47%) of all home sales.

WCVB Channel 5 lists the top 10 towns with the most foreclosures: Springfield, Worcester, Dorchester, Brockton, Lowell, New Bedford, Lynn, Lawrence, Fitchburg and Fall River.

On Cape Cod, year to date foreclosure deeds:
Town 2009 2010 %Change
Barnstable 15 10 - 33.37%
Bourne 19 37 94.74%
Brewster 5 9 80%
Centerville 22 30 36.36%
Chatham 6 15 150%
Cotuit 3 3
Dennis 21 47 123.81%
Eastham 8 14 75%
Falmouth 35 73 108.75%
Harwich 11 26 136.36%
Hyannis 67 99 47.76%
Marston’s Mills 8 26 225%
Mashpee 41 51 24.39%
Orleans 4 8 100%
Osterville 3 14 366.67%
Provincetown 6 18 200%
Sandwich 23 41 78.26%
Truro 1 2 100%
Wellfleet 3 4 33.33%
Yarmouth 47 97 106.38%

Friday Facts November 12, 2010

2010-11-12T08:13:00.000-08:00

November 12, 2010

Real Trends blog gives the following tips to become a market expert:
1. Narrow it down. Geographic area, price range, waterfront, golf course properties, etc.
2. View them. Look at properties all day every day. Know the inventory
3. Analyze. Understand where the best locations are
4. Write it down. Keep a spread sheet. For any property in your specialty, know the stats.
5. Become a detective. Know where the value is and who is motivated to sell and why

Broadcast your expertise only to Boomers. An article by Bernice Ross in Inman News breaks out the buying habits of the different generations:
o Born before 1965, Baby boomers and Traditionalists value expertise.
o Born between 1965 and 1976, Gen X doesn’t trust experts but has a strong belief in their ability to research and find information own their own
o Born between 1976 and 1994, Gen Y also has little or no use for expertise and is more concerned about what their peer group has to say.
You need to be the expert, but model your role based on the generation. Also remember that younger clients may watch you via your blog or social media activities for months before they contact you personally.

When your potential seller wants to wait to list their home until the spring market when all will be rosy, you might give them the following:
o Morgan Stanley analysts expect housing prices to continue to slide reaching new depths in 2012.
o Carter Murdoch, Senior Official with Bank of America’s Business Development Program says that the economy and housing will stay relatively flat through at least the end of 2011 because:
1. Consumer confidence though rising remains low
2. Income growth is anemic.
3. Unemployment may remain above 9% through 2011
o Allen L. Sinai, Chief Global Economist at the consulting firm, Decision Economics notes that median house prices have dropped 20% since 2005, and that given an inflation rate of 2%, it will take 13 years for housing prices to climb back to their peak.

From NAR’s 2009 Survey of Home Buyers and Sellers:
A third of all buyers looked online as the 1st step, 3% more than in ‘08
90% of home buyers used the Internet to search for a home, up 30% in 6 years
60% of buyers were likely to walk through homes viewed online.
36% found their home online, up 4% from ‘08
60% of homebuyers used MLS websites, the most frequently used online resource.
Where the buyer found the home they purchased. In 2001, 48% was through the real estate agent, and 8% was through the Internet. In 2009, 36% was through the real estate agent and 36% was through the Internet.

· In 2009, 13% of buyers had a purchase agreement that was cancelled, terminated, or fell through.

Friday Facts November 5, 2010

2010-11-05T07:45:00.000-07:00

FRIDAY FACTS
November 5, 2010

Something different. Inman News reports that on September 25th, the “Race for the Home Event”, planned and executed by gaming platform SCVNGR converted 50 open homes into a virtual game board. Competitors downloaded challenges at each location. After 3 hours, nearly 500 contestants gathered to see who won runner-up prizes such as tee shirts and sports tickets and who won the grand prize, a $20,000 down payment.

NAR statistics show that nationally, pendings rose 4.3% in August, but that was 20% below the pace in August 2009. Regionally, pendings were up 7% in the South, 6% in the West, 2% in the Midwest, but down 3% in the East. NAR anticipates a 6.4% drop in existing home sales in 2010 compared with 2009 to $4.82 million.

Inman News reports that GMAC Mortgage, JP Morgan Chase and Bank of America have halted foreclosure filings in 23 states because:
1. Documents were signed by employees who have not verified information
2. There was questionable legal notarization of documents
3. Different signatures of a single officials name appear leading to questions of forgery
4. Multiple banks claim the right to foreclose on the same property
Lawyers representing homeowners in foreclosure proceedings have challenged lenders on such grounds before and have mostly succeeded in delaying, not stopping foreclosure proceedings. Ultimately, most lenders have been able to prove they are the note holder. However, it could raise fears among homebuyers that if they buy a foreclosed home they could find themselves in a legal challenge by a former owner.

An article in Inman News explains that Poig is an online social network tool used to increase and expand the strength of your social network. The social object of Poig tends to be a small-scale get-together. Let’s say you’re going to grab a cup of coffee and wouldn’t mind having someone from your network show up. Here’s how it works:
1. Complete a profile
2. Select your event type
3. Enter in some details about the event
4. Publish your invitation to Facebook and/or Twitter.

Wells Fargo has put a stop on all short sale extensions.

Friday Facts Octovber 29, 2010

2010-10-29T07:33:00.001-07:00

October 29, 2010

Thanks in part to NAR’s efforts, Congress has approved a one year extension for the National Flood Insurance Program until September 30, 2011.

Real Trends reports that borrowers with credit scores below 620 are unlikely to get a 30 year fixed conventional mortgage – even with a down payment of 15-25%. Nearly 30% of Americans has a credit score this low. 47% of Americans have scores of 720 or above. For each 20 point credit score increase, the average low APR declines 0.12%.

Inman News published bits and pieces from a study done by Harvard. “Blame for the financial crisis lies with financial institutions that established the underwriting standards, agencies that rated securities backed by non-prime loans, firms that wrote credit default swaps against them, and the regulators that were entrusted with policing the system.” “It was they – not mortgage brokers, mortgage bankers, or borrowers … that determined the products that could be offered, the underwriting standards that would be tolerated, the requirements for capital reserves against losses, and the incentive structure for mortgage brokers … that rewarded volume more than long-term loan performance. In hindsight, there were significant regulatory and market failures.”

A poll of likely voters conducted by NAHB (National Association of Home Builders) showed that 81% support keeping the federal mortgage interest deductions. 76% support keeping the deductions for state and local taxes including property taxes.

MAR received funding from NAR to help defeat Ballot Question #2 which seeks to repeal Chapter 40B. The Massachusetts Affordable Housing Law is responsible for 80% of the affordable housing created over the past decade in Massachusetts outside the major cities. That translates to approximately 58,000 homes. Since 2001, Habitat for Humanity of Cape Cod has developed 47 homes (of a total 60) utilizing this law.

Friday Facts October 22, 2010

2010-10-22T10:19:00.000-07:00

FRIDAY FACTS
October 22, 2010

Paul Bianchina has an article in Inman News on the “3 L’s and 4 C’s of House Hunting”. Integral to purchase, but impossible or potentially very costly to change are: location, lot size, and layout. He cautions that buyers shouldn’t get hung up on the 4 “C’s” that can sometimes blind you to the potential in an otherwise ideal home: condition (as long as there are no major structural items), color, clutter, and cleanliness.

The number of foreclosures completed in Barnstable County last month was up 65% from the same period last year, the ninth straight monthly increase in the region. Year to date, foreclosures are up 79% from the same period in 2009.

Here’s another house hunting tip from Dian Hymer in Inman News – For most sellers it’s a good idea to develop an open house strategy that will maximize exposure to your property without over-exposing it. It’s usually wise to have a Sunday open house the first weekend a listing is on the market. If it’s taking months for homes to sell in your area, consider subsequent open houses every 2-3 weeks.

New home sales are at an historic low dating back over 40 years. August 2010 sales were down 28.9% from August 2009. The Northeast, however, saw a year over year decline of only 5.4%.

Fannie Mae will pay buyer’s agents a $1,500 bonus when they bring clients who close on the purchase of one of the companies REO’s as their primary residence by December 31st. The owner-occupant buyers can also receive up to 3.5% of the final sales price that can be used toward closing costs.

Curbed, a network of neighborhood-focused blog sites featuring quirky, often celebrity-related real estate trends launched a new national site under the domain, curbed.com. One focus is “real estate porn” which is defined as “sexy shots of real estate. The sort of stuff that you see that makes your mouth water, makes your jaw drop.”

Friday Facts October 15, 2010

2010-10-15T06:34:00.000-07:00

October 15, 2010

Nationwide, the average number of days to foreclosure is 461.
Jack Guttentag in Inman News points out that before the financial crisis, compliance with underwriting rules was subject to casual spot checks. Today, every loan is carefully scrutinized and those that don’t pass muster must be repurchased by the seller. The loss in a buyback wipes out the profit on about 8 loans of the same size.

We always say that now is a good time to buy. Well, Bernice Ross in Inman News gives the reason why. If interest rates increase from 4.42% to 5.42% on a $200,000 loan, the buyer will pay $43,802 or 27% additional interest on the life of a 30 year loan. If the interest rate increases from 4.42% to 6.42%, the buyer will pay $89,908 or 56% additional interest.

Remember that FHA loans are assumable. Interest rates will rise and the ability of a seller to transfer a loan and it’s financing terms (including rate) to the new buyer will have value.

Mary Umberger in Inman News gave a few tips for dealing with low-ball offers:
1. It’s critical in this market for sellers to be prepared for the possibility of an unacceptably low offer.
2. Low-ball offers may have any number of motivations and sellers shouldn’t automatically presume they stem from some one’s desire to be insulting.
3. There is debate as to whether a low-ball offer should be countered. Her advice is to counter slightly, reinforcing the asking price, but showing a willingness to “talk”.

Friday Facts Oct. 8, 2010

2010-10-08T07:55:00.000-07:00

FRIDAY FACTS
October 8, 2010

RISMedia offers three lessons from 3 years of recession:
A house is a home, not a piggy bank. Agents need to match home with heart.
The old way is not going to cut it. Clients are now buying movie tickets and SUV’s online. They are texting not calling. Their lives are busier than ever, so your service had better fit within their lives.
It really is all about people. Put the people you are serving ahead of everything else.

Trulia reports 10 cities where its better to buy than rent: Minneapolis; Arlington, Texas; Miami; Fresno; San Antonio; Mesa, AZ; Jacksonville, Fl; El Paso; Las Vegas. The 10 cities where it’s better to rent than buy: New York; Omaha; Seattle; Portland, Oregon; San Francisco; Oklahoma City; Kansas City, MO; Sand Diego; Dallas.

$60 million has been set aside for real estate licensees in 5 states affected by the Gulf oil spill: Texas, Louisiana, Mississippi, Alabama and Florida. Applications for claims close 11/23/10 and the limit per claimant is $12,000.

From Inman News: Zillow-like Zoopla claims to operate the U.K.’s most comprehensive property search website. It provides listing, valuations, public property records and local market statistics. It also claims to have information on every property in England, Scotland, Wales, and Northern Ireland (27 million homes) whether they’re for sale, rent, or off-market.

Kitchen design trends from RISMedia:
Counter tops: Stainless steel, antiqued marble, lava stone, wood, concrete, mosaics and flamed granite with a textured, matte finish.
Cabinetry: Fewer overhead cabinets, lift-up or sliding doors, self-closing drawers, glass-fronted cabinets and glass shelving, tracks inside doors for attaching storage accessories, pantries with multiple storage options, fresh finishes, from smooth, high-gloss and matte lacquer, to textured, horizontal-grain laminates.
Appliances: Free-standing accent pieces and fully-integrated designs that blend with cabinets, fridges with more crisper space and less freezer space, combination gas/electric ranges, designer range hoods, super-quiet dishwashers, specialty sink faucets, luxury items such as warmer drawers for coffee mugs.
Colors: Warm neutrals such as walnut, slate, sand, celadon and magnolia.

2010-10-01T08:41:00.001-07:00

FRIDAY FACTS
October 1, 2010

The U.S. Census Bureau released the 2009 American Housing Survey that shows:
Homeowners paid a median $1,000 in monthly housing costs, 20% of household income
Renters paid a median $800 in monthly housing costs, but that was 31% of household income
32% own their home free and clear, 2% have a line of credit only, 66% have a regular and/or home equity mortgage
48% of homes have a separate dining room, 35% have a usable fireplace, 64% have 3+ bedrooms.

In Barnstable County, foreclosure deeds were up 74% in the first half of 2010 compared with the same period in 2009. It is estimated that neighborhood homes within 250’ of a foreclosed property lose 1% of value.

According to the Shelton Group, Green Living Pulse, 3 features a green home must have are:
1. High efficiency (Energy Star) appliances – 45.6%
2. High efficiency (Energy Star) windows – 42.8%
3. Renewable electric power generation system – 36.9%

§ From NAR: home sales dropped a record 27.2% from June. The prediction had been a drop of 12%. “Buyers and sellers are in a standoff over prices. Many sellers are reluctant to lower their prices and buyers are hesitating because they think home prices haven’t bottomed yet.” Sales were down 35% in the Midwest, 30% in the Northeast, 25% in the West and 23% in the South.

MAR reports that single family home sales were down 28% in July compared with July 2009.

NAR has an online mailbox, HAFA@realtors.org for members to provide specific examples of the problems they are facing with lenders in getting short sales processed. You won’t get a response, but your emails will be used by NAR in its discussions with lenders and the U.S. Treasury Department.

Friday Facts 10-1-10

2010-10-01T06:46:00.000-07:00

Friday 9-24-10

2010-09-24T08:02:00.000-07:00

FRIDAY FACTS

September 24, 2010

Zillow reports that the most stable markets in the U.S. are: Grand Rapids, Michigan; Philadelphia, PA; Lincoln, Nebraska; Columbia, S.C.; Canton, Ohio; Pueblo, Colorado; tied for 7th: York, PA, Yakima, WA, and Washington, D.C.; and Denver, Colorado.

From Inman News by Tara-Nicholle Nelson, “Many who can afford to buy homes are now electing to rent … some until the price is right, others indefinitely. Additionally, we’ve seen that homeownership without equity, without income or with an unsustainable mortgage (balance or payments) can be more economically burdensome than beneficial. For this reason, it’s increasingly crystal clear that until the job market recovers, the real estate market will languish.”

An annual survey by Bankrate.com shows that closing costs on a home purchase are now about 2% of the mortgage amount, up as much as 37% from a year ago.

Kevin Brass notes in the International Property Journal that international buyers dominate Miami sales. Currently, 60% of home sales in South Florida involve a foreign buyer. Florida accounts for 20% of international sales in the U.S.

RISMedia reports that the number of people who sought local information on their smart phones grew 51% since last year, with the fastest growing method of access through downloaded apps.
The Real Estate Book iPhone app is another free app giving the ability to:
§ Search for home listings by city & state or zip
§ Map listings and get directions from current location
§ View property details and photos of listings
§ Save favorites and share or write notes and attach photos
§ Email or call the agent directly from the listing
§ View past searches and perform advanced searching

Friday Facts September 17, 2010

2010-09-17T06:09:00.000-07:00

FRIDAY FACTS
September 17, 2010

From an article by Mary Umberger in Inman News: Residential real estate auctions in the U.S. grew by nearly 48% between 2003 and 2008. Auctions are the standard method of home buying in Australia and the traditional way of selling a farm in the U.S. Most auction houses will allow buyers to involve their real estate agents who will receive a commission on the sale. The winning bid amount will be increased by any fees and taxes that go along with a conventional property sale as well as by the fees and commissions paid to the auction company and/or real estate agent.

Trulia reports that home sellers in the 50 largest U.S. cities slashed their home prices by $30.1 billion in August alone.

The FHA implementation date for the premium changes has been moved from September 7th to October 4th after lenders complained that they didn’t have adequate time to update systems and disclosures.

Check out ReallyRottenRealty.com for tips on why consumers need to be diligent in choosing an agent. For example, a seller shouldn’t hire a broker who subscribes to the “Three P’s of Real Estate Marketing: Put, Put, Pray – Put a sign in the yard, put the listing in MLS, and pray someone will come along and buy it.”

From RIS Media: To most effectively communicate with today’s client:
Be visible all the time: Pick a platform that works for you and stick with it whether it’s Linkedin, FourSquare, Twitter, Gist, Batchbook or Facebook. The key is repetition and the mastery of the medium, especially considering the average attention span for an individual is 20 seconds.
Engage the client on his terms: Identify your buyer. If its just first time homebuyers, find out where they play on the web and hang out there.
Embrace text messaging.

September 24, 2010

Zillow reports that the most stable markets in the U.S. are: Grand Rapids, Michigan; Philadelphia, PA; Lincoln, Nebraska; Columbia, S.C.; Canton, Ohio; Pueblo, Colorado; tied for 7th: York, PA, Yakima, WA, and Washington, D.C.; and Denver, Colorado.

From Inman News by Tara-Nicholle Nelson, “Many who can afford to buy homes are now electing to rent … some until the price is right, others indefinitely. Additionally, we’ve seen that homeownership without equity, without income or with an unsustainable mortgage (balance or payments) can be more economically burdensome than beneficial. For this reason, it’s increasingly crystal clear that until the job market recovers, the real estate market will languish.”

An annual survey by Bankrate.com shows that closing costs on a home purchase are now about 2% of the mortgage amount, up as much as 37% from a year ago.

Kevin Brass notes in the International Property Journal that international buyers dominate Miami sales. Currently, 60% of home sales in South Florida involve a foreign buyer. Florida accounts for 20% of international sales in the U.S.

RISMedia reports that the number of people who sought local information on their smart phones grew 51% since last year, with the fastest growing method of access through downloaded apps.
The Real Estate Book iPhone app is another free app giving the ability to:
§ Search for home listings by city & state or zip
§ Map listings and get directions from current location
§ View property details and photos of listings
§ Save favorites and share or write notes and attach photos
§ Email or call the agent directly from the listing
§ View past searches and perform advanced searching

Friday Facts 9-10-10

2010-09-10T07:51:00.001-07:00

September 10, 2010

Steve Bergsman of Inman News has an article on a new approach to keeping people in their homes. ISGN Corp., one of the largest providers of services and technology to the mortgage industry is partnering with EquityRock of San Francisco to offer a program called RESET (Real Estate Shared Equity Transaction). RESET gives borrowers who are qualified for a loan modification a principal reduction so they are no longer underwater in exchange with the lender for a share in any future equity.

HUD is claiming that the newly passed premium amounts going into effect September 7, 2010 will save the consumer money. It won’t. While the upfront premiums have dropped from 2.25 to 1.25, the annual premiums will nearly double. A $200,000 loan with a 3.5% down payment has $4,500 upfront premium and $1,100/year in annual premiums. After September 7th, the upfront premium falls to $2,500, but the annual premium rises to $1,800, an extra $58/month.

Buzz Tool on ZipRealty.com enables homeowners to post a trial listing of their home to get feedback from active buyers in their area. A real time Buyer Buzz results page gives feedback from agents and results of an online poll regarding the proposed list price.

Bernice Ross writes in Inman News: “The Health Care Bill changes how “miscellaneous income” is reported. The bill seems to require anyone who purchases $600 or more of business products to issue a Form 1099-MISC to the company from whom they purchased the product. In other words, if I buy $600 of office supplies at Staples, I have to give Staples a form 1099.”

FHA’s new underwater program will be launched on September 7, 2010. FHA will offer certain non FHA borrowers who owe more on their mortgage than their property is worth, the opportunity to qualify for a new FHA insured mortgage if their lender agrees to write off at least 10% of the unpaid principal balance of the first mortgage. This applies to primary residences; the borrower must qualify for a loan under standard FHA underwriting requirements; and the borrowers combined LTV ratio can be no more than 115% after the 10% write-off. The Treasury will provide incentives to existing 2nd lien holders who agree to full or partial release of the liens.

Friday Facts 9-3-20

2010-09-03T09:05:00.000-07:00

FRIDAY FACTS
September 3, 2010

In a study from Old Dominion University, looks do count. The more attractive a male finds his female agent, the higher the price he’ll probably be willing to pay. Women also seem to be susceptible to attractive female agents, although not to the extent that men are. Neither women nor men seem to respond much to attractive males.

From RISMedia, here are three common credit score misconceptions:
Paying late didn’t hurt my credit since I’m caught up now. Wrong. Late payments are credit score killers.
Dollar amounts matter in credit scores. Wrong. Dollar amounts don’t matter – the fewer late payments, the higher your score.
Closing credit card accounts helps your score. Wrong. It’s best for your score to keep cards open and active for small purchases.

The Realtor Association of Greater Miami and the Beaches and the Realtor Association of Miami-Dade County have merged, creating the largest association of agents in the U.S. The new real estate group will be called the Miami Association of Realtors and will include more than 23,000 members.

Bernice Ross of Inman News gives some sales strategies:
I’m not here to take inventory – I’m here to move it. Do you want a listing, or do you want sellers who have sold their home and have moved?
Pre-schedule your price reductions. Sellers must agree to reduce their price by 3% after every 10 showings or every three weeks – whichever comes first.
As the price changes, the marketing changes. After every price change, change the photos, especially the main photo.
Charge a refundable marketing fee. For properties under $700, charge a $250 marketing fee that is reimbursed when the property closes.
Detach sellers from their property. Meeting sellers in a neutral place or your office can give you a slight edge.

Did you know that foreign investors spent $66 billion on U.S. property sales last year?

ROFO.com is offering RealEstatePro, a new app for Linkedin that enables real estate professionals to add info about property listings and past transactions to their profile pages. Linkedin has 70 million users in 200 countries.

Friday Facts August 27, 2010

2010-08-27T09:22:00.000-07:00

TOP 7 REASONS BANKS ARE DENYING HOME LOAN REQUESTS:
1. Poor credit. Even FHA loans have an average credit score of 693.
2. Insufficient liquidity. A heavy down payment (20-30%) & strong excess liquidity are needed.
3. Lack of income. Consistent proof of income for 2-5 years
4. Lying on the application
5. Debt. Debt to income ratio exceeds bank’s guidelines
6. Unemployment
7. Self employment
§ Make sure you warn your clients to stop using their credit cards – especially for large purchases while they’re waiting to close on a property. After June 1, 2010, Fannie Mae instructed lenders to pull an updated credit report just prior to closing. Your buyers could be approved, and a change in their DTI could result in the loan being pulled.

§ Comment from RealTrends: “While those who study the housing market look a various data to report on trends, what brokers and sales professionals know right now is that written business has fallen in most markets since April, that inventory is rising and that sellers remain stubborn about pricing their homes where buyers will buy. We continue to be bullish long term, but for the remainder of this year, business will likely be down from the same period last year … Focus on finding and serving every potential client and customer and watch costs religiously for the next 12 months.”

I looked at CC&IMLS Barnstable County stats for July, and here’s what I found: July 2010 dollar volume is 62.29% of June 2010 (down 37.71%), and 88.73% of July 2009 (down 11.27%).

A University of Texas study of 60,000 residential real estate transactions, listings that mentioned new paint, new carpet and/or roof work sold, on average, for slightly less than those that did not.

KnowYourOptions.com is a new Fannie Mae site designed to help homeowners stay in their homes.

Friday Facts Aug. 20, 2010

2010-08-20T07:47:00.001-07:00

FRIDAY FACTS
August 20, 2010

An interesting blog by Bianca Torres in the San Francisco Business Times on Gen Y and home buying delay notes first that Gen Y’s were raised with a lot of self esteem building and reassurance. They tend to take breaks in their 20’s and 30s to travel and to go to grad school which is fulfilling but costs a lot of lost wages and earning potential. They choose where to live based on lifestyle, not job relocation. In the Bay area, a Gen Y household would need an annual income of $142,000 to afford a home where a Boomer in the 1980’s needed $48,000. What does this all mean? Part of the sluggish real estate market may reflect this delay in home buying – real estate depends on entry level buyers.

Neighborhood Scout Reports is a subscription based neighborhood information site that gives a profile of the neighborhood including home values, density, character, age, racial, occupational and language demographics.

Homeownership rates fell in the second quarter of 2010 to 66.9% which is equivalent to that of 1999. The Northeast stayed level at 54.2%, and the West saw the biggest drop to 61.4%.

Here’s a notable quote from Bernice Ross of Inman News: “If your website is merely an infomercial for you, visitors will surf to your site and then surf elsewhere in a matter of seconds. In fact, having your picture on the home page of your site causes up to 50% of your web visitors to leave. The reason? It’s about you rather than being about them.”

A coalition of 11 groups including the National Association of Realtors sent a letter to Treasury Secretary Geithner urging a ban of Wall Street Home Resale Fees. Recorded by covenant or sales contract by private third parties, every time a home is sold for the next 99 years, a percentage (usually 1%) of the sales price must be paid to the third party. To date, 17 states have restricted or banned the practice.

Friday Facts Aug. 13, 2010

2010-08-13T07:53:00.000-07:00

August 13, 2010

FHA changes now and coming impact your clients. From RealTrends blog:
Increase in FHA up front mortgage insurance premium as of 4/1/10 from 1.75% of loan amount to 2.25%. Impact: Higher upfront and/or monthly expense if fee is financed.
The increase of FHA monthly insurance (not yet enacted) will increase monthly expense to consumers. Impact: Buyers with tight debt ratios will qualify for lower loan amounts.
The decrease in maximum seller contributions from 6% to 3% of contract price (not yet enacted) may negatively affect sales in some markets. Impact: those who are reliant on seller contributions will no longer be in a position to purchase.

§ Kevin Brass reports in the International Property Journal that the only home Marilyn Monroe ever owned, and where she was found dead, is on the market. This 2600 square foot Spanish Colonial is located on a secluded Brentwood cul-de-sac. The lot is a “whopping 23,300 square feet including a small pool and citrus grove”. The listing price is $3.595 million, a bargain compared to the burial plot beside Monroe in Westwood which sold for $4.6 million last year.

§ RISMedia notes that “the massive financial reform law that just passed Congress has two main components that could negatively impact homeowners and homebuyers: It will be harder to qualify for a mortgage … and, higher mortgage rates … The takeaway is that if you can qualify for a mortgage now, you should do so, and not gamble your homeownership goals on the future impact of the new law.”

§ Think Big Work Small give the following loan qualifying tip: Most, if not all lenders will not use the income of the mother is she’s actively on maternity leave, even if there is a letter from the employer guaranteeing future employment and income.

§ Kris Berg writes in Inman News: “Make no mistake, I am a big fan of social media. It has become essential for marketing our services and for connecting with customers, not to mention maintaining relationships with our past clients. It is the language the world speaks and we need to be part of that conversation if we are going to eat tomorrow.”

Friday Facts 8-6-10

2010-08-06T06:59:00.000-07:00

FRIDAY FACTS
August 6, 2010

Here’s a notable quote by Teresa Boardman in Inman News that you can use to help make your sellers see reality: “Over the years I have watched these sellers chase the market down. I saw one instance in which a home was on the market for more than 400 days and now it is priced right but in the time it has been on the market it has lost as least 30% of its value”.

From a RealTrends comment noting that it’s okay to laugh sometimes: A US Senator, when commenting on the rejection of an amendment to require higher down payments for federally insured mortgages, reportedly said, “If we raise down payment requirements, then the only people who will be able to buy homes will be those who can afford to own a home”.

Bloomberg reports that homeowners are buried under $4 trillion in excess mortgage debt. This was compiled by the Federal Reserve by taking the total amount of home loans combined with the total amount of residential value.

A shift. Thing Big Work Small notes that purchases of REO’s now outnumber that of new homes. New home purchases usually represent 20% of the market and are now a little less than 11%, 19.5% are REO’s, and 69.5% are re-sales including short sales.

Inman News has an article about a new kind of real estate walk-through using Photosynth, a free web software that allows users to stitch photos together to create 3-D immersive renderings that consumers can click, drag and zoom in and out of. For example, you can click on the front door to “open” it and jump inside the house. Or, you can jump into the backyard through a window.

Friday Facts 7-30-10

2010-07-30T06:34:00.000-07:00

July 30, 2010

HUD’s 2009 Housing Survey reveals that 68% of US homes are owner occupied. 51% are located in suburban areas, 29% are in central cities, and 20% are outside of metropolitan areas. The median size is 1800 square feet. 53% have 6 or more rooms. 85% have a porch, deck or balcony. The most common heating fuel is gas. Most families with young children live within one mile of a public elementary school.

According to RealTrends, the Treasury has launched HAUP (Home Affordable Unemployment Program) which reduces or suspends mortgage payments for at least three months for those who have lost their job. To qualify, a first lien mortgage must have been originated before January 1, 2009, have an unpaid balance of $729,750 or less, and the mortgage must be in default or imminent default.

The New York Times reports that 25% of all homes under $200,000 sold in the U.S. are mobile homes. They state that the FHA is going to increase the number of lenders who can do loans on property not secured by real property.

Inman News says that cash buyers have made up at least 25% of home purchasers since the 1st of the year. These buyers most commonly include investors, parents buying homes for grown children, move-up buyers, retirees buying second homes and foreigners buying vacation homes. According to NAR, investors made up 14% of buyers nationwide in May.

NAR’s Profile of International Homebuyer Activity for 2009 shows the following distribution of purchases by foreign buyers in the U.S. – New England, 8.9%, the Midwest, 12.1%, the South, 47.1% and the West, 29%.

2010-07-23T06:39:00.001-07:00

FRIDAY FACTS
July 23, 2010

Fannie Mae will seek deficiency judgments in those states where it’s allowed against borrowers who do a strategic default. Those borrowers will be denied credit for 7 years.

House Hunting Tip from Dian Hymer in Inman News: Pay close attention to your competition. Don’t fall into the trap of pricing your house higher than your neighbor’s house because yours is better. If your neighbor’s house is too high for the market, neither will sell.

The effective date for the Homeowner Oil Heating System Upgrade and Insurance Law has been extended to September 30, 2011.

According to NAR, pending home sales nationwide dropped 30% in May from April, and 15.9% from May 2009. In the Northeast, pending sales fell 31.6% in May compared with April, and 14.8% compared with last May.

From Inman News: Fannie Mae released a notice on June 30th instructing lenders that they can only use appraisers who are knowledgeable about the area in which they are being asked to value property and who have the ability to access records on recent sales in those markets. Additionally, appraisers must consider a properties condition when choosing to use foreclosures or short sales as comps.

2010-07-16T06:30:00.001-07:00

July 16, 2010

Inman News reported that FNC, Inc. based out of Oxford, Mississippi will launch a website this fall titled, Collateral Vision Gulf Coast Crisis. It will track sale prices and property values for homes up to 100 miles from the coast. It’s designed to be a repository of detailed news about how lenders, loan servicers and insurers are responding to homeowners whose incomes and mortgages have been affected by the spill.

RIS Media had an article on “Four Housing Market Myths” by Dr. Stan Humphries, Zillow’s chief economist:
The housing recession is over. Nationally, home values probably won’t bottom until the third quarter of 2010.
Historical appreciation rates will return after prices bottom. They won’t. The bottom will be long and flat and historical appreciation is 3 to 5 years away.
The worst of the foreclosure crisis is over. Nationally, the rate of foreclosure is increasing.
The home buyer tax credit saved us. Although some sales were pushed forward and the market psychology shifted because of the credit, the improvement in sales came more from historically low mortgage rates, dramatically increased housing affordability and increased FHA lending.

§ Inman’s notable quote by Bernice Ross, “Regardless of what your market is doing, here’s one strategy that applies in any market: Focus your listing efforts in the areas that have the greatest demand and the fewest number of listings. That’s always where the opportunity is greatest.

§ Make sure you check out the Realtor.com beta site.

Friday Facts July 9, 2010

2010-07-09T07:32:00.001-07:00

July 9, 2010

From Inman’s Wheel Estate Cam, Broker Frank Llosa of Frankly Realty notes, “How do consumers know if their real estate agent is working hard, or hardly working?” The answer is communication. “Oftentimes there’s a common misperception that if you don’t see someone doing the work, you just assume they’re not doing anything.” Keep clients informed by sending copies of emails relevant to their transaction. The client will feel more in the loop and have confidence in what the agent is doing on their behalf.

The census bureau reports that new single family home size dropped to 2,438 square feet in 2009 after 30 years of increasing size. The peak was 2,521 square feet in 2007.

RealTrends reports that 75% of modified home loans through government sponsored programs will default within 12 months.

RIS Media suggests that you don’t stop with a home video tour. Consider doing a neighborhood tour. They have three tips:
Highlight common areas of interest: schools, shopping, recreation, etc.
Show what sets the neighborhood apart: landmarks, historic significance, natural beauty
Focus on lifestyle issues: climate, seasonal sports

§ According to a recent Coldwell Banker survey, singles of all ages are more likely to buy a home in the suburbs.

2010-07-02T07:57:00.000-07:00

FRIDAY FACTS
July 2, 2010

Here are some sound bites from the NAR Resort Symposium held at Lake Tahoe June 13-15th. For my notes from the conference, please use this link:

There is continuing debate as to whether the market has bottomed, and some consumers are waiting – right or wrong.

Greece has an 80-85% home ownership rate, the highest in the world and very few mortgage defaults. Bridal families buy homes with cash. Their problem is government default – too high deficit and too high debt.

From 1982-2007 we were living large. The average house size increased 50%. Now, it’s the end of excess, a consumer reset with the question being: “Do we need it or do we want it?”

For the third time this year, Congress has skipped town and not renewed the National Flood Insurance Program It’s caught up in the deficit debate. Congress keeps kicking the can down the road because ultimately they want to reform the program comprehensively. NAR is keeping an eye on the following issues: subsidies, maps, wind provisions.

Reputation, trustworthiness and honesty are the most important factors in choosing an agent according to 57% of sellers and 54% of buyers.

The person who determines the question also determines the outcome. We’ve allowed the media to determine the question.

The biggest problem today is the lack of funding for mortgages. NAR’s leadership will be meeting with the 5 largest lenders (collectively 73% of the business) to discuss performance and come up with protocols. One focus will be directed toward second homes and investment properties.

Social media outlets need to be integrated into your email signatures.

2010-06-28T07:53:00.000-07:00

FRIDAY FACTS
June 25, 2010

From TBWS Daily: GE is offering subprime loans in the United Kingdom, but they’ve changed the name to “complex loans”. Rates are fixed at 5.99% for two years, then float, and the borrower can have up to two defaulted loans (including a mortgage) and a judgment.

From an article by Bernice Ross in Inman News: Negotiate face to fact, not by fax. Control the offer process, and don’t miss the clues offered by body language. As a buyer’s agent you need to remember that the listing agent has a fiduciary duty to get the highest possible price for the seller. If you’re not personally presenting your offers, you are depriving your buyers of the representation they need to get the best possible deal.

As of May 27th, Fannie Mae will not finance a foreclosed home until the state law redemption period has passed.

Inman News reports that Doug Duncan, chief economist for Fannie Mae says that the overhang of housing inventory will cause a delay in housing recovery until 2013.

The real estate research site Housing Predictor forecasts a drop of at least 30% in real estate value in the areas of Louisiana and Mississippi affected by the oil spill.

From Inman News, the quote of the day by Kris Berg, “Now I’m all about analytics, so I can tell you that in the last 72 hours we have received 6 phone calls and 4 email inquiries about properties. Wow! That’s almost 10 prospects! What I can also tell you is that every one of them contacted us because they stumbled across a home for which they thought we were the listing agent.”

Friday Facts June 18, 2010

2010-06-18T08:01:00.001-07:00

FRIDAY FACTS
June 18, 2010

Global Edge Marketing reports on the 1st iPhone app for overseas property, HomesGoFast.com. It provides access to 50,000 properties in over 70 countries and gives the ability to store favorites and view property slide shows.

Want them to open your email? Pay attention to the “from” and “subject” lines. Surprisingly, 60% of readers decide whether to delete or read by the “from” line, and 35% from the “subject” line.

NAR submitted three questions to Fannie Mae regarding HAFA (Home Affordable Foreclosure Alternatives Program). Here are the answers:
1. Buyer’s agents are not permitted to rebate a portion of their commission to the buyer.
2. Sellers who are real estate agents must list their home for sale with another broker, not their own broker.
3. The incentive allowed for subordinate lien holders (6% of any one subordinate lien, up to a total of $6,000 for all subordinate liens) is a hard cap and may not be supplemented from any source.

§ Remember that on July 10th, 2010 the new Massachusetts law concerning home heating oil systems goes into effect. There are two major provisions:
1. The installation of either an oil safety valve or an oil supply line with protective sleeve on systems that do not currently have these devices (most systems installed after 1990 most likely are in compliance)
2. Insurance companies that write homeowners policies must offer coverage for leaks from heating systems that use oil. The insurance companies are mandated to provide the coverage, but purchasing the insurance is optional for the homeowner.

§ From Susie Hale’s Frog Pond Newsletter, 3 Tips for Asking Better Questions:
1. Be curious. Doing all the talking doesn’t make your effective. Be inquisitive and ask about topics that are important to you and the person with whom you are talking.
2. Be open-ended. Use what, how, and why questions. Don’t just ask about events, but about thoughts and motivations as well.
3. Dig Deeper. Don’t accept the first answer you get. Ask follow-up questions to get more detail and surface the real story.

May 2010 MLS Stats - click chart to enlarge

2010-06-11T12:27:00.001-07:00

2010-06-11T07:43:00.000-07:00

FRIDAY FACTS
June 11, 2010

The Case Schiller Index reports that home prices fell in the first quarter of 2010 compared to the fourth quarter of 2009, but were up 2% from the first quarter of 2009.

From an article, “Tracking Homebuyer’s Fickle Tastes” by Mary Umberger in Inman News:
Say good-bye to the subdivision clubhouse, whirlpool tub, home theaters, traditional living and dining rooms, mud rooms, and hobby/game rooms. Still in demand are walking paths, energy efficient windows, big kitchens with islands and granite, oversized showers with seating, home office space and “green”.

Mark Zandi, chief economist for Moody’s Economy says, “The tougher circumstances for twenty “something’s” and fifty “something’s” will weigh on housing demand over the coming decade. The first time buyer and second home markets will be most directly impacted.”

Think Big Work Small gives two warnings:
On some sold short sales, accounts are being marked as delinquent for up to ten months after closing. Have the seller call the ex-servicer and insist they not continue reporting “lates” after the close.
An under-reported story is the delay some buyers may experience when they expect to close at the end of June. If they don’t have a tax credit, but do have an end of June closing date, they may be moved to the back of the line.

Kathleen Kuhn, President of HomeMaster notes: “Approximately 40% of resale homes have at least one defect that can cost a buyer a minimum of $500 to repair. She recommends that the buyer:
1. Inspect the inspector. Ask for length of time in the business, training and ongoing education, and E&O insurance.
2. Ask for a sample of a report.
3. Arrange for ancillary inspections such as septic, water, radon, termite and mold.
4. Go on the inspection

Friday Facts June 4, 2010

2010-06-04T06:24:00.000-07:00

FRIDAY FACTS
June 4, 2010

Web metrics firm Hitwise reports that real estate related search fell 22% in April 2010 compared with April 2009, an 11th straight month of decline. However, non-vacation rental searches have increased 45% when comparing April 2010 to April 2009.

Here we go again! Congress left town without reauthorizing the National Flood Insurance Program (NFIP) and the Section 502 Rural Housing Programs. Until they extend NFIP, no new or renewal flood policies can be issued, and that means thousands of residential and commercial transactions are on hold. Please respond to NAR’s Call for Action.

As of June 1st, Fannie Mae will require a credit check of every applicant prior to funding a loan.

From Inman News: Something new that opens the door to myriad possibilities is the use of camera-equipped smart phones that click on scannable quick response bar codes to bring the user directly to a website. A New York broker in the Hamptons is putting the bar codes on hats and shirts to market her properties to vacationers.

From “How to Sell to Women” by Donna Stott, Quantum Training Systems:
. Women make or influence over 80% of all consumer purchases
. Women directly purchase or have controlling influence in the purchase of 91% of all new homes
. A female client will refer up to 28 individuals if she’s happy with the experience where a
malewill refer an average of 13.
. When men and women buy as partners, women control at least 4 of the 5 stages of the
purchasing process.
. 48% of working women contribute more than half of household income.

http://www.capeandislandsmls.com/library/NAR%20MIDYEAR%20LEGISLATIVE%20MEETINGS%202010.pdf

http://www.capeandislandsmls.com/library/CRS%20PANEL.pdf

Friday Facts May 28, 2010

2010-05-28T06:41:00.000-07:00

NAR's Midyear Legislative Meetings were held in Washington, D.C. from May 10-15th. Attached are notes from the various sessions I attended, and here are a few sound-bites:
From David Stevens, FHA Commissioner: Will the tax credit be extended? No. We will see significant issues from the commercial market situation that will impact our shaky recovery.
From the Real Estate Symposium REALTOR Town Hall Meeting: The market is now fragile, precarious. Real estate is still on life support from the government, but the government is starting to pull the tubes. It's a test.

There's a disconnect when the federal government gives an $8,000 tax credit - tax payers are paying for it. Political obligations are part of what got us into trouble in the first place. We're delaying getting down to where we need to be to allow a natural flow of buyers getting into the market.

From Challenges and Solutions to Strengthening U.S. and Global Capital Markets: HAMP is really just foreclosure delay. Letting dead bodies pile up outside the morgue doesn't mean they're alive.

From Lawrence Yun, Chief Economist for NAR: After the tax credit we need job creation. We need household formation. We need mobility and we need jumbo loans.
Dr. Mark Zandi, Moody's: House prices aren't going anywhere quickly. There will be further price weakness over the next 6-12 months due to foreclosures.

From the Regional Caucus, Region 1. 2018 NAR conference will be in Boston.

Friday Facts May 21, 2010

2010-05-21T11:47:00.000-07:00

INMAN NEWS:
From an article by Bernice Ross:

Gen X and Gen Y want to remain anonymous until they decide the time is right to work with an agent.
A recent study from Conscom revealed very surprising stats. Of the 6.3 million unique visitors to Trulia, 92 out of 100 do not visit Realtor.com
Today’s buyers and sellers don’t want to have to register to receive information.
Blogging keeps them engaged, builds their trust, and motivates them to work with you. It allows them to “stalk” you.
Younger buyers have no use for “expertise”. Instead, they believe in their ability to do it themselves. They are information hungry and will research multiple website prior to contacting an agent.

1st American CoreLogic Home Price Index shows a 30.6% decline in national home price from the peak in April 2006, or 21.7% if distressed properties are excluded. They expect continued year over year price declines in 29 of 45 markets tracked.

NAR reports that more homes came on the market in March than were sold. Altos Research cited rising inventory as the biggest concern for the housing market this year. Rising inventory tends to encourage sellers to lower listing prices, thereby preventing the market from stabilizing.

On the other hand, TRULIA REPORTS:

An early sign of stabilization in the national housing market can be seen in the drop in the number of current home listings that have been reduced at least once from 27% in April 2009 to 20% in April 2010.

TOP 9 DO-IT-YOURSELF GREEN HOME IMPROVEMENTS:

This comes from a nationwide HomeGain survey of real estate agents advising sellers to:

Plant trees and shrubs
Replace air filters
Green home staging
Weather strip and caulk doors and windows
Install programmable thermostats
Install low flow shower heads
Use auto turn-off power strips
Install CFL or LED lights
Paint with low VO paint