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, September 24, 2010
Friday, September 17, 2010
Friday Facts September 17, 2010
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
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, September 10, 2010
Friday Facts 9-10-10
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.
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, September 3, 2010
Friday Facts 9-3-20
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.
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, August 27, 2010
Friday Facts August 27, 2010
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.
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, August 20, 2010
Friday Facts Aug. 20, 2010
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.
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, August 13, 2010
Friday Facts Aug. 13, 2010
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.”
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.”
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