05 October 2011
The REALTORS ® Toolbox: Getting on the Same Page
The REALTORS ® Toolbox: Getting on the Same Page: I had a good meeting with my boss today. We are both busy people who have a lot on our respective plates and are never really without so...
I had a good meeting with my boss today.
We are both busy people who have a lot on our respective plates and are never really without something to do. It is just a fact that one of his "plates" is making sure I am doing all I can to provide assistance, support and value to the associates and managers within our organization so they can continue to deliver outstanding service and memorable experiences to their clients and customers.
When you start getting busy it becomes easy to think you're on track with your actions and on schedule to deliver what is expected but having some check points along the way is always a good idea.
How do you make sure you're on the "same page" with everyone and anyone who might be reading from the same manual?
Servicing Your Sellers
How are you "touching base" with your Sellers during the listing process? It might be a wise practice to schedule weekly "check ins" with all of your Sellers so you can discuss your marketing efforts, any changes in the market (new listings, price changes, new pending deals, buyer activity) and upcoming events you may have planned.
Doing this weekly allows you to create open communication with your clients and let's them always know what you're doing to not only maximize exposure on their home and generate potential interest, but eventually earn your fee they will pay you when it sells.
Another thing this might do is eliminate many of those "got a minute" interruptions that some Sellers might bother you with throughout the week if they knew they could count on your weekly call. Be sure to put it in your schedule and be diligent about making the call. Prepare your thoughts the morning of these calls and anticipate any questions or concerns they may have for you.
Scheduling these "check ins" at the time you take the listing will start your relationship off on the right foot and show them that they have listed their home with a true sales professional instead of someone who just sits back and waits for the market to deliver an offer. These weekly calls also eliminate the possibility of your Sellers saying they "never hear from you."
Positioning Your Purchasers
If you're a full time Realtor in today's challenging market, you know you don't have time to be a chauffeur and spend your day working with "lookers." You want to work with people who are ready, willing and able to buy, right?
We spoke in The Realtor's Toolbox earlier this year about the 5 Reasons for a Buyer Counseling Session (see video blog series here) so let's assume that this is where your relationship truly begins with each Buyer. How are you making sure that you're always on the "same page" with your clients who are searching for that next place to call home?
Are you what might be called a "Pop Tart Agent" who just jumps and runs when a client wants to see a house or do you have a system to identify the right listings that match what the client has identified as their needs and wants? If you don't get control of your schedule don't be surprised if your schedule grabs control of you.
Schedule your showings and don't be afraid to ask your clients after each session if they want to explore moving forward on any of the houses you showed - also known as "asking for the sale." If you feel that you're spending too many sessions just "looking" don't be afraid to schedule another "mini" Buyer Counseling Session to verify that what you're showing them and what they are looking for are still in alignment. Otherwise you're not only wasting their time, you're wasting your time!
Get in Tandem with Your Teammates
Do you keep in touch with your lenders, inspectors, attorneys and title companies? How do your systems you have in place ensure that you and your office staff know what is going on with your transactions? If you have a team of agents you work with, do you schedule regular meetings with each other so everyone knows what going on with your clients? Does your manager have a good idea of what your current "pipeline" looks like so he or she can help you keep all the deals you're juggling from falling at your feet?
Constant communication, dotting every 'i' and crossing each 't' can be a good idea because you never know when a question or emergency might arise.
Don't leave success to chance. Make sure you're utilizing systems and scheduling regular meetings with anyone who has a chance to affect or impact your business. That way you can focus on building relationships, solving problems and having fun.
Photo via Flickr - courtesy of Horia Varlan
I had a good meeting with my boss today.
We are both busy people who have a lot on our respective plates and are never really without something to do. It is just a fact that one of his "plates" is making sure I am doing all I can to provide assistance, support and value to the associates and managers within our organization so they can continue to deliver outstanding service and memorable experiences to their clients and customers.
When you start getting busy it becomes easy to think you're on track with your actions and on schedule to deliver what is expected but having some check points along the way is always a good idea.
How do you make sure you're on the "same page" with everyone and anyone who might be reading from the same manual?
Servicing Your Sellers
How are you "touching base" with your Sellers during the listing process? It might be a wise practice to schedule weekly "check ins" with all of your Sellers so you can discuss your marketing efforts, any changes in the market (new listings, price changes, new pending deals, buyer activity) and upcoming events you may have planned.
Doing this weekly allows you to create open communication with your clients and let's them always know what you're doing to not only maximize exposure on their home and generate potential interest, but eventually earn your fee they will pay you when it sells.
Another thing this might do is eliminate many of those "got a minute" interruptions that some Sellers might bother you with throughout the week if they knew they could count on your weekly call. Be sure to put it in your schedule and be diligent about making the call. Prepare your thoughts the morning of these calls and anticipate any questions or concerns they may have for you.
Scheduling these "check ins" at the time you take the listing will start your relationship off on the right foot and show them that they have listed their home with a true sales professional instead of someone who just sits back and waits for the market to deliver an offer. These weekly calls also eliminate the possibility of your Sellers saying they "never hear from you."
Positioning Your Purchasers
If you're a full time Realtor in today's challenging market, you know you don't have time to be a chauffeur and spend your day working with "lookers." You want to work with people who are ready, willing and able to buy, right?
We spoke in The Realtor's Toolbox earlier this year about the 5 Reasons for a Buyer Counseling Session (see video blog series here) so let's assume that this is where your relationship truly begins with each Buyer. How are you making sure that you're always on the "same page" with your clients who are searching for that next place to call home?
Are you what might be called a "Pop Tart Agent" who just jumps and runs when a client wants to see a house or do you have a system to identify the right listings that match what the client has identified as their needs and wants? If you don't get control of your schedule don't be surprised if your schedule grabs control of you.
Schedule your showings and don't be afraid to ask your clients after each session if they want to explore moving forward on any of the houses you showed - also known as "asking for the sale." If you feel that you're spending too many sessions just "looking" don't be afraid to schedule another "mini" Buyer Counseling Session to verify that what you're showing them and what they are looking for are still in alignment. Otherwise you're not only wasting their time, you're wasting your time!
Get in Tandem with Your Teammates
Do you keep in touch with your lenders, inspectors, attorneys and title companies? How do your systems you have in place ensure that you and your office staff know what is going on with your transactions? If you have a team of agents you work with, do you schedule regular meetings with each other so everyone knows what going on with your clients? Does your manager have a good idea of what your current "pipeline" looks like so he or she can help you keep all the deals you're juggling from falling at your feet?
Constant communication, dotting every 'i' and crossing each 't' can be a good idea because you never know when a question or emergency might arise.
Don't leave success to chance. Make sure you're utilizing systems and scheduling regular meetings with anyone who has a chance to affect or impact your business. That way you can focus on building relationships, solving problems and having fun.
Photo via Flickr - courtesy of Horia Varlan
28 July 2011
10 Real Estate Markets to Watch in 2011 | Inman News
2. Buffalo-Niagara Falls, N.Y.
Total population (2009): 1,123,804
Median sales price (Q4 2010): $126,500
Median sales price % change (Q4 '09-Q4 '10): 14.3%
Sales volume (# units sold year-to-date in Nov. 2010): 14,401
Sales volume % change (Nov. 2010 vs. Nov. 2009): -12.3%
Unemployment rate (Dec. 2010): 8.2%
Foreclosure activity rate (2010): 1 in 332 units
Walk Score: 51
The delinquency rate in the Buffalo-Niagara Falls metro area stayed essentially flat between November 2009 and November 2010, at a relatively low 4.1 percent. The area's foreclosure activity rate fell 43.5 percent in 2010, to one of the lowest rates in the country. One in 332 housing units received a foreclosure filing last year, compared with 1 in 45 units nationally.
RealtyTrac also included the Buffalo market in its top 10 list of markets for buying and investing, which took into account decreases in REO (bank-owned) inventory, as well as higher discounts for foreclosure properties compared to nonforeclosure properties (see RealtyTrac chart).
"(Lower REO inventory) is important because when you hear people talking about shadow inventory and inventory overhang having an effect on prices, that's an indicator that inventory is being whittled away," said Rick Sharga, senior vice president of RealtyTrac.
Higher foreclosure discounts indicate healthier markets because that means foreclosures are having less of an impact on the sales prices of nonforeclosure properties, according to RealtyTrac.
"When we first started tracking, Las Vegas had one of the lowest foreclosure discounts in the country. When you get beyond a certain percentage of sales that are foreclosure-related, it takes the whole market down with it," Sharga said.
The Buffalo market has one of the fastest-rising median list prices in the country, according to Realtor.com (see Realtor.com chart). Buffalo was also one of the few markets to see its median sales price rise from the year before in both 2009 and 2010, according to NAR's data. Even so, 85.8 percent of the market's homes were affordable to households earning the area's median income in the fourth quarter of 2010.
"The Buffalo market is incredibly brisk, incredibly strong -- especially in the urban areas. I am having houses sell over the asking price in one day and certainly in one week. I've just had one this past week sell a thousand (dollars) over the asking price in one day. I don't have enough inventory for the buyers who are out there at certain price points," said Susan Lenahan, an agent at MJ Peterson Real Estate in Buffalo.
"Buffalo is different than the rest of country. We have a very stable market. It didn't go up dramatically, (and) didn't go down dramatically."
The Buffalo metro area has its share of federal entities. The area is home to one of seven districts for the U.S. Army Corps of Engineers, a field office for the FBI, the Niagara Falls Air Reserve Station, a field office for the Department of Homeland Security, and the headquarters for the U.S. District Court for the Western District of New York.
Buffalo also hosts New York's largest state university and high-tech jobs in the medical industry, Lenahan said. Yahoo operates a data center on the outskirts of Buffalo, and Verizon is considering a data center in Niagara County.
"Those kinds of business opportunities were not typical in Buffalo before. It's no longer a Rust Belt town," Lenahan said.
10 Real Estate Markets to Watch in 2011 | Inman News
Total population (2009): 1,123,804
Median sales price (Q4 2010): $126,500
Median sales price % change (Q4 '09-Q4 '10): 14.3%
Sales volume (# units sold year-to-date in Nov. 2010): 14,401
Sales volume % change (Nov. 2010 vs. Nov. 2009): -12.3%
Unemployment rate (Dec. 2010): 8.2%
Foreclosure activity rate (2010): 1 in 332 units
Walk Score: 51
The delinquency rate in the Buffalo-Niagara Falls metro area stayed essentially flat between November 2009 and November 2010, at a relatively low 4.1 percent. The area's foreclosure activity rate fell 43.5 percent in 2010, to one of the lowest rates in the country. One in 332 housing units received a foreclosure filing last year, compared with 1 in 45 units nationally.
RealtyTrac also included the Buffalo market in its top 10 list of markets for buying and investing, which took into account decreases in REO (bank-owned) inventory, as well as higher discounts for foreclosure properties compared to nonforeclosure properties (see RealtyTrac chart).
"(Lower REO inventory) is important because when you hear people talking about shadow inventory and inventory overhang having an effect on prices, that's an indicator that inventory is being whittled away," said Rick Sharga, senior vice president of RealtyTrac.
Higher foreclosure discounts indicate healthier markets because that means foreclosures are having less of an impact on the sales prices of nonforeclosure properties, according to RealtyTrac.
"When we first started tracking, Las Vegas had one of the lowest foreclosure discounts in the country. When you get beyond a certain percentage of sales that are foreclosure-related, it takes the whole market down with it," Sharga said.
The Buffalo market has one of the fastest-rising median list prices in the country, according to Realtor.com (see Realtor.com chart). Buffalo was also one of the few markets to see its median sales price rise from the year before in both 2009 and 2010, according to NAR's data. Even so, 85.8 percent of the market's homes were affordable to households earning the area's median income in the fourth quarter of 2010.
"The Buffalo market is incredibly brisk, incredibly strong -- especially in the urban areas. I am having houses sell over the asking price in one day and certainly in one week. I've just had one this past week sell a thousand (dollars) over the asking price in one day. I don't have enough inventory for the buyers who are out there at certain price points," said Susan Lenahan, an agent at MJ Peterson Real Estate in Buffalo.
"Buffalo is different than the rest of country. We have a very stable market. It didn't go up dramatically, (and) didn't go down dramatically."
The Buffalo metro area has its share of federal entities. The area is home to one of seven districts for the U.S. Army Corps of Engineers, a field office for the FBI, the Niagara Falls Air Reserve Station, a field office for the Department of Homeland Security, and the headquarters for the U.S. District Court for the Western District of New York.
Buffalo also hosts New York's largest state university and high-tech jobs in the medical industry, Lenahan said. Yahoo operates a data center on the outskirts of Buffalo, and Verizon is considering a data center in Niagara County.
"Those kinds of business opportunities were not typical in Buffalo before. It's no longer a Rust Belt town," Lenahan said.
10 Real Estate Markets to Watch in 2011 | Inman News
27 May 2011
Why You Need a True Professional to Sell Your Home
Many people ask us whether they should hire an agent to sell their home or whether they should first try as a For Sale by Owner (FSBO). In today’s volatile market, we believe this is an easy decision: you need an experienced professional!
You need an expert guide if you are traveling a dangerous path
The field of real estate is loaded with land mines. You need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a buyer willing to pay fair market value for your home at a time that there are mass inventories of foreclosures and short sales will take a true real estate professional. Finding reasonable financing can also be tricky in today’s lending environment.
You need a skilled negotiator
In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible re-negotiation of that off after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.
Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family? If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal.
Bottom Line
We believe that famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.
Why You Need a True Professional to Sell Your Home
You need an expert guide if you are traveling a dangerous path
The field of real estate is loaded with land mines. You need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a buyer willing to pay fair market value for your home at a time that there are mass inventories of foreclosures and short sales will take a true real estate professional. Finding reasonable financing can also be tricky in today’s lending environment.
You need a skilled negotiator
In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible re-negotiation of that off after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.
Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family? If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal.
Bottom Line
We believe that famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.
Why You Need a True Professional to Sell Your Home
18 May 2011
10 May 2011
5 Reasons You Should Consider Selling Now
5 Reasons You Should Consider Selling Now
by THE KCM CREW on MAY 10, 2011 ·
If you plan on moving anytime in 2011, you should strongly consider selling your house now rather than waiting. Here are five reasons why:
1.) This is when your house will get the most exposure
The spring, and particularly the month of May, is when most buyers enter the real estate market. This surge of buyers dramatically increases the exposure for your house . The best chance of getting quality offers (perhaps even multiple offers) is RIGHT NOW!
2.) Foreclosures and short sales will increase in about 90 days
The good news is that the number of people paying their mortgage on time is increasing. This will lead to less distressed property sales later this year and throughout 2012. The not-so-good news is that there is still a large inventory of existing foreclosures and short sales that will still be coming to market.
As an example, LPS reported in their latest Mortgage Monitor that:
There are still twice as many loans going 90+ days delinquent as are starting foreclosure
There are almost three times the number of foreclosure starts as there are foreclosure sales
Distressed property inventory levels are almost 45 times the rate of monthly foreclosure sales
This means that there is a backlog of properties which will start coming to the market in about 90 days as banks clear up their paperwork challenges. These properties sell at dramatic discounts. They will be your competition. Both Fannie Mae and Freddie Mac have recently discussed the magnitude of this challenge.
3.) Interest rates have risen over the last six months
Interest rates have stabilized recently. However, in the last six months, interest rates have climbed over 1/2%. Every time the rates increase 1/4%, approximately 250,000 buyers are eliminated from qualifying for a mortgage. In an environment of volatile rates, waiting could mean that there will be fewer buyers eligible to purchase your house. It also could mean that you will pay a higher rate on the next home you buy.
4.) Qualifying for a mortgage is about to get even more difficult
Besides increasing rates, there are other factors that will hinder a buyer’s ability to qualify for a mortgage as we move forward. Lending standards have been getting tighter over the last year. And as the government debates the new proposed guidelines (QRM), banks are gearing up for even more stringent standards.
Morgan Stanley recently stated:
“Recent developments in issues such as GSE reform, Dodd-Frank securitization rules, and foreclosure settlement issues suggest a tighter and more expensive environment for mortgage credit.”
This may impact any potential purchaser for your property and may also impact your next purchase.
5.) It’s time to get on with your life
Probably the most important reason to sell is so you can get on with your life. You placed your home on the market for a reason. Do not allow a less-than-stellar housing market prevent you from reaching your goals as an individual or as a family. Think about the reasons you decided to move in the first place. Are these reasons still important to you? If you have to take less than you were originally hoping to get for your house, your family has a question to ask each other: Is the dollar difference in sales price worth putting off our plans? Only you and your family know the answer to that question.
Bottom Line
If you plan to sell this year, the reasons above prove that selling now makes more sense than waiting to later in the year. Sit with a real estate professional in your area today to fully understand your best option.
5 Reasons You Should Consider Selling Now
by THE KCM CREW on MAY 10, 2011 ·
If you plan on moving anytime in 2011, you should strongly consider selling your house now rather than waiting. Here are five reasons why:
1.) This is when your house will get the most exposure
The spring, and particularly the month of May, is when most buyers enter the real estate market. This surge of buyers dramatically increases the exposure for your house . The best chance of getting quality offers (perhaps even multiple offers) is RIGHT NOW!
2.) Foreclosures and short sales will increase in about 90 days
The good news is that the number of people paying their mortgage on time is increasing. This will lead to less distressed property sales later this year and throughout 2012. The not-so-good news is that there is still a large inventory of existing foreclosures and short sales that will still be coming to market.
As an example, LPS reported in their latest Mortgage Monitor that:
There are still twice as many loans going 90+ days delinquent as are starting foreclosure
There are almost three times the number of foreclosure starts as there are foreclosure sales
Distressed property inventory levels are almost 45 times the rate of monthly foreclosure sales
This means that there is a backlog of properties which will start coming to the market in about 90 days as banks clear up their paperwork challenges. These properties sell at dramatic discounts. They will be your competition. Both Fannie Mae and Freddie Mac have recently discussed the magnitude of this challenge.
3.) Interest rates have risen over the last six months
Interest rates have stabilized recently. However, in the last six months, interest rates have climbed over 1/2%. Every time the rates increase 1/4%, approximately 250,000 buyers are eliminated from qualifying for a mortgage. In an environment of volatile rates, waiting could mean that there will be fewer buyers eligible to purchase your house. It also could mean that you will pay a higher rate on the next home you buy.
4.) Qualifying for a mortgage is about to get even more difficult
Besides increasing rates, there are other factors that will hinder a buyer’s ability to qualify for a mortgage as we move forward. Lending standards have been getting tighter over the last year. And as the government debates the new proposed guidelines (QRM), banks are gearing up for even more stringent standards.
Morgan Stanley recently stated:
“Recent developments in issues such as GSE reform, Dodd-Frank securitization rules, and foreclosure settlement issues suggest a tighter and more expensive environment for mortgage credit.”
This may impact any potential purchaser for your property and may also impact your next purchase.
5.) It’s time to get on with your life
Probably the most important reason to sell is so you can get on with your life. You placed your home on the market for a reason. Do not allow a less-than-stellar housing market prevent you from reaching your goals as an individual or as a family. Think about the reasons you decided to move in the first place. Are these reasons still important to you? If you have to take less than you were originally hoping to get for your house, your family has a question to ask each other: Is the dollar difference in sales price worth putting off our plans? Only you and your family know the answer to that question.
Bottom Line
If you plan to sell this year, the reasons above prove that selling now makes more sense than waiting to later in the year. Sit with a real estate professional in your area today to fully understand your best option.
5 Reasons You Should Consider Selling Now
26 April 2011
Is This Really a Buyer's Market?
Daily Real Estate News | April 26, 2011 | Share
Is This Really a Buyer's Market?
With falling home prices and higher inventories, most of the public views real estate as a “buyer’s market,” in which buyers hold more of the control and sellers will more eagerly accept lower offers just to sell.
Not so fast, say buyers and sellers. More buyers are finding the sellers in the driver’s seat.
Buyer Young Hammack gave up looking for homes for a while after being outbid on three properties in California. "It's a false buyer's market," Hammack says. "If you think prices are cheap, wait until you start putting offers in."
Many sellers may be unable or unwilling to lower their home prices — mostly because they may be underwater on their mortgage — so buyers are increasingly finding lower offers than list price denied. Buyers, on the other hand, may be reluctant to agree to a deal if they don’t feel like they are getting it at a deep discount, industry insiders say.
Traditional buyers also are finding even buying a foreclosure can be difficult as they’re increasingly outbid by investors who are willing to pay cash.
"There's a shortage of attractive inventory," says Glenn Kelman, chief executive of Redfin Corp. "Customers just keep getting outbid on the houses that they want."
Real estate professional Steve Capen with Keller Williams Realty in St. Petersburg, Fla., says that the homes most in demand among buyers often don’t require much repair work and are located in good school districts and choice neighborhoods near transit hubs.
"What's selling is the cream of the crop, and they sell fast," Capen says. "If it's not cream of the crop, it's getting hammered."
Source: “Buyers' Market? Stressed Sellers Say Not So Fast,” The Wall Street Journal online (April 25, 2011)
Is This Really a Buyer's Market?
With falling home prices and higher inventories, most of the public views real estate as a “buyer’s market,” in which buyers hold more of the control and sellers will more eagerly accept lower offers just to sell.
Not so fast, say buyers and sellers. More buyers are finding the sellers in the driver’s seat.
Buyer Young Hammack gave up looking for homes for a while after being outbid on three properties in California. "It's a false buyer's market," Hammack says. "If you think prices are cheap, wait until you start putting offers in."
Many sellers may be unable or unwilling to lower their home prices — mostly because they may be underwater on their mortgage — so buyers are increasingly finding lower offers than list price denied. Buyers, on the other hand, may be reluctant to agree to a deal if they don’t feel like they are getting it at a deep discount, industry insiders say.
Traditional buyers also are finding even buying a foreclosure can be difficult as they’re increasingly outbid by investors who are willing to pay cash.
"There's a shortage of attractive inventory," says Glenn Kelman, chief executive of Redfin Corp. "Customers just keep getting outbid on the houses that they want."
Real estate professional Steve Capen with Keller Williams Realty in St. Petersburg, Fla., says that the homes most in demand among buyers often don’t require much repair work and are located in good school districts and choice neighborhoods near transit hubs.
"What's selling is the cream of the crop, and they sell fast," Capen says. "If it's not cream of the crop, it's getting hammered."
Source: “Buyers' Market? Stressed Sellers Say Not So Fast,” The Wall Street Journal online (April 25, 2011)
22 April 2011
Foreclosures: Bringing Clarity to the Confusion
Headlines created by the numerous foreclosure reports often contradict each other. One headline announces foreclosures are rising while the next talks about the decrease in foreclosure numbers. This has led to tremendous confusion regarding the issue. Let’s bring some clarity to the data. There are five individual stages of the foreclosure process that are reported:
1.) 90+ Day Delinquencies
Once a homeowner falls three months behind on their payments, most financial institutions count them in their foreclosure numbers. Why? Less than 2% of those who fall that far behind ever catch up in their payments. The other 98% will end up as a distressed property (foreclosure or short sale). Homeowners in this category don’t always receive a foreclosure notice immediately. In some cases, homeowners who have not paid their mortgage in 12 months have not yet received a notice of foreclosure.
2.) Homes in the foreclosure process
These homes have received a formal notice which officially starts the foreclosure process. In different states, because of court procedures, it takes varying time frames to complete this process.
3.) Homes repossessed by the bank
These homes have finished the foreclosure process and are now owned by the bank. These homes are known as REOs (Real Estate Owned).
4.) REOs placed on the market
These are the REOs that banks bring to market. Many come to market quickly. Others must be refurbished before being put up for sale.
5.) REOs Sold
Obviously, these are the REOs that actually sell.
This seems very straight forward. Why is there so much confusion?
Here’s an example. Just a few weeks ago the major daily newspaper on Long Island, NY had a headline that announced delinquencies were up to over 10% of all homes. One-in-ten homes on Long Island were 90+ days delinquent. That was a major increase from the year before. Exactly seven days later, the same newspaper headlined a story that foreclosures on Long Island were down dramatically. That seems a contradiction. Though both headlines were accurate, they led to confusion.
Let’s dig a little deeper into the data. Yes, the percentage of homes being foreclosed on has decreased. Why? The court systems in NY are now taking almost a year to process a foreclosure. There are not less homes eligible for foreclosure. They are just caught in a slow moving pipeline. Likewise, there are not a growing number of delinquencies. These homes are just not working their way through the process. The delinquency numbers would be much lower if there wasn’t a logjam in the court systems.
Bottom Line
To truly understand the distressed property situation in your market and what impact it may have on prices, contact a local real estate professional. They should be able to simply and effectively explain with the use of strong visuals (charts & graphs) what is happening in your area and how it impacts you.
Foreclosures: Bringing Clarity to the Confusion
1.) 90+ Day Delinquencies
Once a homeowner falls three months behind on their payments, most financial institutions count them in their foreclosure numbers. Why? Less than 2% of those who fall that far behind ever catch up in their payments. The other 98% will end up as a distressed property (foreclosure or short sale). Homeowners in this category don’t always receive a foreclosure notice immediately. In some cases, homeowners who have not paid their mortgage in 12 months have not yet received a notice of foreclosure.
2.) Homes in the foreclosure process
These homes have received a formal notice which officially starts the foreclosure process. In different states, because of court procedures, it takes varying time frames to complete this process.
3.) Homes repossessed by the bank
These homes have finished the foreclosure process and are now owned by the bank. These homes are known as REOs (Real Estate Owned).
4.) REOs placed on the market
These are the REOs that banks bring to market. Many come to market quickly. Others must be refurbished before being put up for sale.
5.) REOs Sold
Obviously, these are the REOs that actually sell.
This seems very straight forward. Why is there so much confusion?
Here’s an example. Just a few weeks ago the major daily newspaper on Long Island, NY had a headline that announced delinquencies were up to over 10% of all homes. One-in-ten homes on Long Island were 90+ days delinquent. That was a major increase from the year before. Exactly seven days later, the same newspaper headlined a story that foreclosures on Long Island were down dramatically. That seems a contradiction. Though both headlines were accurate, they led to confusion.
Let’s dig a little deeper into the data. Yes, the percentage of homes being foreclosed on has decreased. Why? The court systems in NY are now taking almost a year to process a foreclosure. There are not less homes eligible for foreclosure. They are just caught in a slow moving pipeline. Likewise, there are not a growing number of delinquencies. These homes are just not working their way through the process. The delinquency numbers would be much lower if there wasn’t a logjam in the court systems.
Bottom Line
To truly understand the distressed property situation in your market and what impact it may have on prices, contact a local real estate professional. They should be able to simply and effectively explain with the use of strong visuals (charts & graphs) what is happening in your area and how it impacts you.
Foreclosures: Bringing Clarity to the Confusion
12 April 2011
4 Financial Reasons to Buy Now
4 Financial Reasons to Buy Now
by THE KCM CREW on APRIL 12, 2011 ·
As Dean Hartman said last week, the purchase of a home is a personal decision. However, we want to give everyone four great financial reasons why you should not wait before taking the plunge into homeownership.
Interest Rates Are Increasing
Interest rates have increased almost 3/4 of a point in the last six months. Most experts expect rates to continue to increase through the year. Interest rates along with price determine the overall cost of a home. Even with prices softening, if interest rates rise, it may be less expensive to buy now rather than wait.
The 30-Year Mortgage May Disappear
There has been much debate regarding government’s role in providing support for homeownership. There are several experts who believe If Fannie Mae and Freddie Mac’s roles are eliminated, or even limited, it may be the end to the 30-year mortgage. This concern is addressed in MSN Real Estate’s Is it curtains for the 30-year mortgage?
QRM Requirements Could Be Much More Stringent
Here are proposed changes to the requirements for a ‘qualified residential mortgage’:
Certain mortgage types would be eliminated
You would need to put a minimum of 20% down
You would need a minimum 690 FICO score
The ratios of income to both the mortgage payment and overall debt would become much more conservative (28% and 36%)
There would be loans available to purchasers who don’t qualify under the new rules. However, they will probably be more expensive to the buyer (both in rate and costs).
Rents Are Expected to Increase
The supply of available rentals is decreasing and the demand is increasing. That will lead to an increase in rental costs throughout the year. The Wall Street Journal this week quoted a report by Reis, Inc:
“Expect vacancies to continue declining, and rents rising through the rest of 2011 at an even faster pace.”
Bottom Line
You may be waiting on the sidelines to see if prices will continue to depreciate before you purchase a home. The mortgage expense is a major piece in the overall financial picture of homeownership. Make sure you consider it when timing your decision.
4 Financial Reasons to Buy Now
by THE KCM CREW on APRIL 12, 2011 ·
As Dean Hartman said last week, the purchase of a home is a personal decision. However, we want to give everyone four great financial reasons why you should not wait before taking the plunge into homeownership.
Interest Rates Are Increasing
Interest rates have increased almost 3/4 of a point in the last six months. Most experts expect rates to continue to increase through the year. Interest rates along with price determine the overall cost of a home. Even with prices softening, if interest rates rise, it may be less expensive to buy now rather than wait.
The 30-Year Mortgage May Disappear
There has been much debate regarding government’s role in providing support for homeownership. There are several experts who believe If Fannie Mae and Freddie Mac’s roles are eliminated, or even limited, it may be the end to the 30-year mortgage. This concern is addressed in MSN Real Estate’s Is it curtains for the 30-year mortgage?
QRM Requirements Could Be Much More Stringent
Here are proposed changes to the requirements for a ‘qualified residential mortgage’:
Certain mortgage types would be eliminated
You would need to put a minimum of 20% down
You would need a minimum 690 FICO score
The ratios of income to both the mortgage payment and overall debt would become much more conservative (28% and 36%)
There would be loans available to purchasers who don’t qualify under the new rules. However, they will probably be more expensive to the buyer (both in rate and costs).
Rents Are Expected to Increase
The supply of available rentals is decreasing and the demand is increasing. That will lead to an increase in rental costs throughout the year. The Wall Street Journal this week quoted a report by Reis, Inc:
“Expect vacancies to continue declining, and rents rising through the rest of 2011 at an even faster pace.”
Bottom Line
You may be waiting on the sidelines to see if prices will continue to depreciate before you purchase a home. The mortgage expense is a major piece in the overall financial picture of homeownership. Make sure you consider it when timing your decision.
4 Financial Reasons to Buy Now
06 April 2011
05 April 2011
OK. You Win. Stop Listening to Real Estate Agents!
OK. You Win. Stop Listening to Real Estate Agents!
by THE KCM CREW on APRIL 5, 2011 ·
Each day we attempt to give truthful insight on the current housing market. If we report what is perceived as negative news, some in the real estate community come down on us hard. However, when we explain that we think now is a great time to buy, we get an avalanche of feedback from the general public attacking us for being nothing more than puppets for real estate agents across the country. Today, we don’t want you to listen to what we think about the opportunities that exist for buyers in this market. Instead, we want to report on what some members of the investment community are saying.
The Wall Street Journal
Jim Woods wrote an article earlier this year for Market Watch, part of the Wall Street Journal’s digital network. Its title: Why your best investment is a house. Mr. Woods compared the investment potential of real estate against other asset classes such as stocks and precious metals. Here was his conclusion.
One reason your best investment right now could be a home has to do with the relative upside of getting in on an asset class while it’s at the bottom versus buying into other asset classes that could be near a top. Consider for a moment the tremendous upside we’ve seen in stocks, precious metals and agricultural commodities over the past 12 months…
If you’re a long-term investor looking to put money to work, now is not really the best time to get into any of these three asset classes. However, with home sales starting to improve, and with prices now possibly forming a bottom, real estate could well be the asset class that represents the best low-risk buying opportunity out there today…
Mr. Woods went on to talk about the financing portion of the purchase:
Yes, mortgage rates still are near historical lows, but if we see these rates rise, then the cost of a new home could climb significantly. So, now could really be the best time to pull the trigger on that home purchase — and it could also be your best investment right now.
Fortune Magazine
Shawn Tully, senior editor at large for Fortune penned an article last week which was titled: Real estate: It’s time to buy again. In the article, Mr. Tully explained:
Forget stocks. Don’t bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing.
Let’s state it simply and forcibly: Housing is back. Two basic factors are laying the foundation for dramatic recovery in residential real estate. The first is the historic drop in new construction … The second is a steep decline in prices, on the order of 30% nationwide since 2006, and as much as 55% in the hardest-hit markets. The story of this downturn has been an astonishing flight from the traditional American approach of buying new houses to an embrace of renting. But the new affordability will gradually lure Americans back to buying homes. And the return of the homeowner will start raising prices in many markets this year.
Bottom Line
Neither of the two media sources mentioned above has ever been accused of cuddling up to the National Association of Realtors. However, both have come to the same conclusion. It’s time to buy real estate. Perhaps we should listen to them.
by THE KCM CREW on APRIL 5, 2011 ·
Each day we attempt to give truthful insight on the current housing market. If we report what is perceived as negative news, some in the real estate community come down on us hard. However, when we explain that we think now is a great time to buy, we get an avalanche of feedback from the general public attacking us for being nothing more than puppets for real estate agents across the country. Today, we don’t want you to listen to what we think about the opportunities that exist for buyers in this market. Instead, we want to report on what some members of the investment community are saying.
The Wall Street Journal
Jim Woods wrote an article earlier this year for Market Watch, part of the Wall Street Journal’s digital network. Its title: Why your best investment is a house. Mr. Woods compared the investment potential of real estate against other asset classes such as stocks and precious metals. Here was his conclusion.
One reason your best investment right now could be a home has to do with the relative upside of getting in on an asset class while it’s at the bottom versus buying into other asset classes that could be near a top. Consider for a moment the tremendous upside we’ve seen in stocks, precious metals and agricultural commodities over the past 12 months…
If you’re a long-term investor looking to put money to work, now is not really the best time to get into any of these three asset classes. However, with home sales starting to improve, and with prices now possibly forming a bottom, real estate could well be the asset class that represents the best low-risk buying opportunity out there today…
Mr. Woods went on to talk about the financing portion of the purchase:
Yes, mortgage rates still are near historical lows, but if we see these rates rise, then the cost of a new home could climb significantly. So, now could really be the best time to pull the trigger on that home purchase — and it could also be your best investment right now.
Fortune Magazine
Shawn Tully, senior editor at large for Fortune penned an article last week which was titled: Real estate: It’s time to buy again. In the article, Mr. Tully explained:
Forget stocks. Don’t bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing.
Let’s state it simply and forcibly: Housing is back. Two basic factors are laying the foundation for dramatic recovery in residential real estate. The first is the historic drop in new construction … The second is a steep decline in prices, on the order of 30% nationwide since 2006, and as much as 55% in the hardest-hit markets. The story of this downturn has been an astonishing flight from the traditional American approach of buying new houses to an embrace of renting. But the new affordability will gradually lure Americans back to buying homes. And the return of the homeowner will start raising prices in many markets this year.
Bottom Line
Neither of the two media sources mentioned above has ever been accused of cuddling up to the National Association of Realtors. However, both have come to the same conclusion. It’s time to buy real estate. Perhaps we should listen to them.
01 April 2011
Home buying more than an investment question - Chicago Sun-Times
Q. Home prices keep falling and we’ve been waiting to buy our first home. We’ve saved up enough for about a 15 percent down payment. But now we’re beginning to wonder if we should buy at all — or keep renting.
A. Well, you’re right about home prices. The most recent Case-Shiller Home Price Index shows that prices fell 3.1 percent, year over year, compared with January 2010. The 20-city composite index, as of January, has fallen 31.8 percent from its peak in July 2006.
In fact, there’s talk of a “double-dip” housing recession, which would be defined by the Case-Shiller 20-city price index hitting a new low — even lower than the bottom made in April 2009. As of January, the 20-city index was only 1.1 percent above that low point.
The decline in home prices, combined with previous lenient lending standards, has resulted in nearly 25 percent of homeowners having a mortgage that is larger than the current market value of the home. (Keep in mind that nearly one-third of the homes in America are owned free and clear, without a mortgage.)
You don’t need to be an economist to realize that homes have not been a great investment for the past eight years. And you don’t have to have a crystal ball to predict that this situation could continue for quite a while, since there are so many foreclosed homes on the market, along with desperate sellers, all combining to push prices down.
But the real question is: Why were you thinking of buying a home? If you ask your grandparents, if they’re still around, they would probably never mention “price appreciation” as one of the significant reasons they bought a home 50 or 60 years ago.
They probably would have said something about wanting something that was all their own, that they could “fix up” the way they wanted it (unlike rental housing in those days). They planted trees and expected to be around to see them mature, along with their children.
Your grandparents would have talked about “raising a family” in this home, and about the memories they would build — not the equity. In fact, their goal was to have the mortgage paid off before they retired, so they could live in this home for most of their lives without the burden of a monthly payment in retirement.
That was the American dream of home ownership. If you share that dream, to any extent, then there’s no reason not to buy a home right now. You said you have the down payment money, and, I presume, the good credit to qualify for a mortgage.
Mortgage rates are low, and so are prices. And if you’re pretty sure you’ll be living in the same area for at least five years, and pretty sure that the home will fit your growing family, then this is a wonderful time to buy a home.
But if your question is whether buying a home now is a good investment — well, that depends. It depends on the price you pay, and on your time horizon, and on the rest of the economy. The price of a home reflects more than supply and demand; it reflects the availability of financing and the mood of the public as it evaluates whether future inflation will make assets, including houses, more valuable.
Right now Congress is deeply in the mode of “locking the barn door after the horse is out.” After years of pushing for credit availability for low-income home buyers (Rep. Barney Frank) and easy mortgage standards so banks could profit by making loans (Sen. Chris Dodd), the game has changed.
Now the Dodd-Frank banking reform bill named after these two Washington insiders has reversed the playing field. New “standards” are likely to make it more difficult for first-time home buyers. A 20 percent down payment will be required to get the lowest rates. A more limited financing market could impact the demand for homes, and the prices sellers can expect to receive.
I think this is a good time to buy a home for both financial and lifestyle reasons. No one ever picks a “bottom” — but despite (or because of) all the negativity, we could be close. And I do believe in the American dream of home ownership as a place to raise a family and build a community.
But just in case I’m wrong about that evaluation, there’s one other good thing about buying a home: This is the one investment you can live in , if you happen to make a mistake in your timing. And that’s The Savage Truth.
Terry Savage is a registered investment adviser.
Home buying more than an investment question - Chicago Sun-Times
A. Well, you’re right about home prices. The most recent Case-Shiller Home Price Index shows that prices fell 3.1 percent, year over year, compared with January 2010. The 20-city composite index, as of January, has fallen 31.8 percent from its peak in July 2006.
In fact, there’s talk of a “double-dip” housing recession, which would be defined by the Case-Shiller 20-city price index hitting a new low — even lower than the bottom made in April 2009. As of January, the 20-city index was only 1.1 percent above that low point.
The decline in home prices, combined with previous lenient lending standards, has resulted in nearly 25 percent of homeowners having a mortgage that is larger than the current market value of the home. (Keep in mind that nearly one-third of the homes in America are owned free and clear, without a mortgage.)
You don’t need to be an economist to realize that homes have not been a great investment for the past eight years. And you don’t have to have a crystal ball to predict that this situation could continue for quite a while, since there are so many foreclosed homes on the market, along with desperate sellers, all combining to push prices down.
But the real question is: Why were you thinking of buying a home? If you ask your grandparents, if they’re still around, they would probably never mention “price appreciation” as one of the significant reasons they bought a home 50 or 60 years ago.
They probably would have said something about wanting something that was all their own, that they could “fix up” the way they wanted it (unlike rental housing in those days). They planted trees and expected to be around to see them mature, along with their children.
Your grandparents would have talked about “raising a family” in this home, and about the memories they would build — not the equity. In fact, their goal was to have the mortgage paid off before they retired, so they could live in this home for most of their lives without the burden of a monthly payment in retirement.
That was the American dream of home ownership. If you share that dream, to any extent, then there’s no reason not to buy a home right now. You said you have the down payment money, and, I presume, the good credit to qualify for a mortgage.
Mortgage rates are low, and so are prices. And if you’re pretty sure you’ll be living in the same area for at least five years, and pretty sure that the home will fit your growing family, then this is a wonderful time to buy a home.
But if your question is whether buying a home now is a good investment — well, that depends. It depends on the price you pay, and on your time horizon, and on the rest of the economy. The price of a home reflects more than supply and demand; it reflects the availability of financing and the mood of the public as it evaluates whether future inflation will make assets, including houses, more valuable.
Right now Congress is deeply in the mode of “locking the barn door after the horse is out.” After years of pushing for credit availability for low-income home buyers (Rep. Barney Frank) and easy mortgage standards so banks could profit by making loans (Sen. Chris Dodd), the game has changed.
Now the Dodd-Frank banking reform bill named after these two Washington insiders has reversed the playing field. New “standards” are likely to make it more difficult for first-time home buyers. A 20 percent down payment will be required to get the lowest rates. A more limited financing market could impact the demand for homes, and the prices sellers can expect to receive.
I think this is a good time to buy a home for both financial and lifestyle reasons. No one ever picks a “bottom” — but despite (or because of) all the negativity, we could be close. And I do believe in the American dream of home ownership as a place to raise a family and build a community.
But just in case I’m wrong about that evaluation, there’s one other good thing about buying a home: This is the one investment you can live in , if you happen to make a mistake in your timing. And that’s The Savage Truth.
Terry Savage is a registered investment adviser.
Home buying more than an investment question - Chicago Sun-Times
24 March 2011
are you ready at all times???
1. Be Ready for the Pre-appointment Appointment
In order to best take advantage of the opportunities this year will bring, make sure you are ready to speak real estate at any moment. Whether it is at the food store, the movies, or at your child's ball game, people are again talking about real estate. Be prepared to intelligently articulate answers to the questions that come up. Ensure this by being very mobile with your information (smart phones, iPads, or tablets).
KCM Members receive updated charts, graphs, and other visuals for their mobile devices every month. Learn more about KCM and discover the benefits of being a member by visiting www.KeepingCurrentMatters.com/KCM.
2. Understand the Advantages of Owning Over Renting
We sell real estate for a living. We must be prepared to be an evangelist for homeownership. Know that owning is less expensive than renting in 72% of the country. Be able to explain all the financial benefits of owning a home and learn the non-financial reasons people buy a home.
3. Know That Today's Mortgage Opportunities Will Never Exist Again
Today, a buyer can purchase a home with a 5% interest rate guaranteed for 30 years. These low rates will disappear as the economy improves. If the lending reform that many are calling for happens, there is a chance that the 30 year mortgage will also disappear. For more on this point, click here.
4. Realize the Wealthy Are Back in the Market
In 2010, sales of homes under $1 million were down 2.8% from the previous year. Yet, home sales of properties priced over $1 million were up 18.6%. That means that the people who best understand the principle "cost vs. price" best think now is the time to buy real estate.
5. Don't Forget It's Still About "Supply and Demand"
There will be a steady supply of buyers purchasing homes this spring. Houses will sell; many houses. Don't allow this increase in demand to fool you or your homeowners. Home prices will not appreciate on increased demand alone. Price is determined by the ratio between supply and demand. Make sure you know the month's supply of inventory available for each category of house you have listed. Only then can you give great counsel on pricing.
In order to best take advantage of the opportunities this year will bring, make sure you are ready to speak real estate at any moment. Whether it is at the food store, the movies, or at your child's ball game, people are again talking about real estate. Be prepared to intelligently articulate answers to the questions that come up. Ensure this by being very mobile with your information (smart phones, iPads, or tablets).
KCM Members receive updated charts, graphs, and other visuals for their mobile devices every month. Learn more about KCM and discover the benefits of being a member by visiting www.KeepingCurrentMatters.com/KCM.
2. Understand the Advantages of Owning Over Renting
We sell real estate for a living. We must be prepared to be an evangelist for homeownership. Know that owning is less expensive than renting in 72% of the country. Be able to explain all the financial benefits of owning a home and learn the non-financial reasons people buy a home.
3. Know That Today's Mortgage Opportunities Will Never Exist Again
Today, a buyer can purchase a home with a 5% interest rate guaranteed for 30 years. These low rates will disappear as the economy improves. If the lending reform that many are calling for happens, there is a chance that the 30 year mortgage will also disappear. For more on this point, click here.
4. Realize the Wealthy Are Back in the Market
In 2010, sales of homes under $1 million were down 2.8% from the previous year. Yet, home sales of properties priced over $1 million were up 18.6%. That means that the people who best understand the principle "cost vs. price" best think now is the time to buy real estate.
5. Don't Forget It's Still About "Supply and Demand"
There will be a steady supply of buyers purchasing homes this spring. Houses will sell; many houses. Don't allow this increase in demand to fool you or your homeowners. Home prices will not appreciate on increased demand alone. Price is determined by the ratio between supply and demand. Make sure you know the month's supply of inventory available for each category of house you have listed. Only then can you give great counsel on pricing.
22 March 2011
14 March 2011
REALTOR® Magazine-Daily News-6 Most Promising Real Estate Markets for 2011
REALTOR® Magazine-Daily News-6 Most Promising Real Estate Markets for 2011
WE ARE #2!!!!!! Buffalo-Niagara Falls, N.Y.: This metro area for the last year has boasted a low delinquency rate and one of the lowest foreclosure rates in the country. It also has one of the fastest-rising median list prices in the nation.
▪ Median sales price (Q4 2010): $126,500
▪ Median sales price % change (Q4 ’09-Q4 ’10): 14.3 percent
▪ Foreclosure activity rate (2010): 1 in 322 units
WE ARE #2!!!!!! Buffalo-Niagara Falls, N.Y.: This metro area for the last year has boasted a low delinquency rate and one of the lowest foreclosure rates in the country. It also has one of the fastest-rising median list prices in the nation.
▪ Median sales price (Q4 2010): $126,500
▪ Median sales price % change (Q4 ’09-Q4 ’10): 14.3 percent
▪ Foreclosure activity rate (2010): 1 in 322 units
25 February 2011
24 February 2011
KCM 5 Quick Tips
1. Take Advantage of the Opportunity in Front of You
We are in the middle of an opportunity that our industry has not seen in years. There is a momentum building in consumer confidence regarding real estate. Trulia is reporting record buyer home searches on their website. Credit Suisse
is reporting that buyer activity is back to levels not seen since the tax credit. NAR's Pending Home Sales Report (which reports on homes going into contract) has increased 5 of the last 6 months. Let's make sure we get our share of these purchasers and also make sure we have built a salable listing inventory.
2. Change From 'Presentation' Manuals to 'Conversation' Manuals
As professionals, we must stop talking 'at people' and begin speaking 'with people'. In order to establish trust with our customers and clients, we must sit down and have an open and frank conversation about how their goals and aspirations can be accomplished in the current real estate market. They will know we care only after we prove we are willing to listen to what is important
to them and their families.
3. Realize we are in the 'Eye of the Storm' Regarding Foreclosures
Because of paperwork challenges, banks have delayed the foreclosure process on many properties. This has resulted in fewer distressed properties coming to market over the last 3 months. These properties will be released for sale
by mid-year. Let's make sure we explain this to our sellers. They want to sell BEFORE this discounted competition comes to market.
4. Be Mobile!
Make sure your smart phone and iPad/tablet are loaded with great graphs, charts and other strong visuals so you can intelligently discuss this market anywhere at anytime.
The KCM Crew puts together a monthly audio-visual presentation that can provide you with just these types of updated charts & graphs. To learn more about the KCM product, visit www.KeepingCurrentMatters.com/KCM.
5. Be a Real Estate Agent, Not a Secret Agent
We must keep the positive momentum going. Whenever possible, start conversations about how the market is changing for the better. Talk about the uptick in buyer activity. Espouse the benefits of homeownership. If we don't, who will? Not sure what to say? Read The KCM Blog EVERY day.
KCM Quick Tips
We are in the middle of an opportunity that our industry has not seen in years. There is a momentum building in consumer confidence regarding real estate. Trulia is reporting record buyer home searches on their website. Credit Suisse
is reporting that buyer activity is back to levels not seen since the tax credit. NAR's Pending Home Sales Report (which reports on homes going into contract) has increased 5 of the last 6 months. Let's make sure we get our share of these purchasers and also make sure we have built a salable listing inventory.
2. Change From 'Presentation' Manuals to 'Conversation' Manuals
As professionals, we must stop talking 'at people' and begin speaking 'with people'. In order to establish trust with our customers and clients, we must sit down and have an open and frank conversation about how their goals and aspirations can be accomplished in the current real estate market. They will know we care only after we prove we are willing to listen to what is important
to them and their families.
3. Realize we are in the 'Eye of the Storm' Regarding Foreclosures
Because of paperwork challenges, banks have delayed the foreclosure process on many properties. This has resulted in fewer distressed properties coming to market over the last 3 months. These properties will be released for sale
by mid-year. Let's make sure we explain this to our sellers. They want to sell BEFORE this discounted competition comes to market.
4. Be Mobile!
Make sure your smart phone and iPad/tablet are loaded with great graphs, charts and other strong visuals so you can intelligently discuss this market anywhere at anytime.
The KCM Crew puts together a monthly audio-visual presentation that can provide you with just these types of updated charts & graphs. To learn more about the KCM product, visit www.KeepingCurrentMatters.com/KCM.
5. Be a Real Estate Agent, Not a Secret Agent
We must keep the positive momentum going. Whenever possible, start conversations about how the market is changing for the better. Talk about the uptick in buyer activity. Espouse the benefits of homeownership. If we don't, who will? Not sure what to say? Read The KCM Blog EVERY day.
KCM Quick Tips
18 February 2011
17 February 2011
11 February 2011
The Cost of Waiting for Prices to Fall
Many purchasers have been sitting on the sidelines waiting for home prices to hit bottom. They want to guarantee that they are purchasing at the best possible price. Like them, we also believe that prices still have some room to fall in most markets. However, we disagree that waiting is a good financial decision. The buyer should not be concerned about housing prices. They should be concerned about cost.
The cost of a house is made up of the price AND THE INTEREST RATE they will be paying. Two different pieces of news released yesterday highlight this point.
The Cost of Waiting for Prices to Fall
The cost of a house is made up of the price AND THE INTEREST RATE they will be paying. Two different pieces of news released yesterday highlight this point.
The Cost of Waiting for Prices to Fall
27 January 2011
great article from Houselogic.com.. stay warm!!
-
8 Easy Ways to Seal Air Leaks Around the House
For what the typical family wastes every year on air leaks—about $350—you can plug energy-robbing gaps, start saving money, and enjoy a more comfortable home. Read
Visit houselogic.com for more articles like this.
Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
21 January 2011
building a playful culture
Building a Playful Culture
It’s unfortunate; when people speak about a playful office environment, they often describe Nerf darts, beanbag chairs, and funny hats. This stereotype, reinforced by lavish dot-com and web 2.0 spending, comes from poor consulting cultures that positioned juvenile behavior as necessary for those coming up with new and novel ideas. This only serves to reinforce the view of designer as magician -- that somehow, while playing hours of foosball or XBox, designers are busy dreaming up the next Twitter, Apple, or Nike.
When people speak about a playful offices, they often describe Nerf darts.
In fact, playfulness in culture can be designed, and it doesn't require any Nerf toys at all. But it requires some top-down qualities that will challenge traditional corporations and financially-strapped agencies. To be playful, an organization needs to embrace dynamic constraints, provide a runway to explore deviant ideas, and support and encourage flow.
Embrace Dynamic Constraints
While the word constraint has a negative tone, constraints act as the central construct for managing an otherwise overwhelming design activity. Designer Charles Eames described constraints as the qualities that contain a design problem, that mark its beginning and ending, and that illustrate to what extent the designer can affect change. Clients and technologies provide constraints, but the most useful and actionable constraints come from within the designer, and are often established during synthesis. A playful culture enables a designer to propose new constraints, and when the context of the situation demands -- to the frustration of business owners everywhere -- the designer can selectively ignore constraints entirely. Consider the following dialogue between a designer and a product manager concerning a web-based flow:
Designer: This is such a critical moment in the checkout flow that I highlighted the area in red and made the action abilities a bit larger than on other pages.
Product Manager: But that doesn’t fit within the parameters of the templates we’ve established and everyone has signed off on. It’s different from the other pages. Won’t it be inconsistent?
Designer: Yes, it is inconsistent. But I think, at this part of the flow, it’s important to call it out as separate.
Product Manager: I’m confused. When we developed the templates, you told me consistency was important. Now you are telling me it’s not important. Which is it?
Does the designer have the ability to establish constraints during synthesis? Are they empowered to make decisions like this? Most importantly, is there institutional support for the design team -- have the directors and other managers enacted policy, procedure, and precedent that brings designers into a situation early enough to make this form of strategic recommendation?
Provide a Runway to Explore Deviant Ideas
Most businesses embrace an established hierarchy of decision making. This, theoretically, helps streamline important decisions, enforces accountability, and minimizes risk. In the context of creativity, while senior and director-level designers have refined their craft, it's unlikely that they will have the "best idea" during a synthesis session, as synthesis is dependent on a breadth of experiences and unique viewpoints. To hold a playfully deviant point of view in the context of a serious design discussion allows a designer to explore divergent ideas, temporarily move the problem constraints, and expand the boundaries of what might be considered "appropriate" design decisions. A playful culture will provide a runway for those with deviant ideas to explore and refine the ideas -- even when those ideas conflict with the vision of leadership. Sometimes this runway consists of permission; other times, it requires hours and financial support. But in all cases, support comes from above, by setting a tone and approach that embrace conflicting ideas.
Does your company culture afford freedom, flow and decision-making?
The notion of being playful is to appreciate and encourage divergent thinking and the shifting, flexing, and removing of constraints. Play is about exploring "what-if" scenarios; that is, dream states. Our lives, jobs, and compensation are so frequently tied to rational thought that we have often forgotten how to actively dream, yet these dreams -- the ability to generate ideas, outlandish or otherwise -- are at the core of design innovation. Design synthesis embraces this divergent dreaming.
Support and Encourage Flow and Autonomous Decision Making
According to psychologist Mihaly Csikszentmihalyi, flow is an optimal experience achieved during creativity that is an "automatic, effortless, yet highly focused state of consciousness." Flow is literally the awake-dreaming state of mind that occurs when a designer is able to move through the space of a problem, holding many design "moves" in the mind at once, and suspending self-criticism while retaining idea-based judgment. To state the obvious, this takes time -- blocks of undisturbed time. Conference calls, meetings, check-ins, standups, email threads, bug-lists, IMs, and other distractions can make it literally impossible to enter this flow-like state. A culture that recognizes the importance of flow can create a virtual barrier around a design team, where someone -- usually a creative director -- can play interference for the team by handling all of the tedium described above.
If someone's making decisions during a flow-like state, they aren't checking in with the team, and they aren't waiting for consensus before moving forward. Simply, they are empowered to act autonomously -- rejecting the increasing trend towards "socialization" of every decision made during the development of a product, system or service. Consider if your company culture affords this level of freedom, flow, and individual responsibility and decision-making.
Synthesis is the ability to make meaning out of data, and playfulness is a cultural phenomenon central to meaning-making. Play can be introduced, over time, into any organization. Start by embracing the dynamic nature of constraints, providing a runway for employees to explore deviant ideas, and supporting and encouraging flow and individual decision making.
During Part I of this series, I offered some tactics on how to jump into synthesis; in Part III of this series, I’ll describe the importance of celebrating bias in your design synthesis work. See you next week.
JON KOLKO
Jon Kolko is the Executive Director of Design Strategy at Thinktiv, a venture accelerator in Austin, Texas.
It’s unfortunate; when people speak about a playful office environment, they often describe Nerf darts, beanbag chairs, and funny hats. This stereotype, reinforced by lavish dot-com and web 2.0 spending, comes from poor consulting cultures that positioned juvenile behavior as necessary for those coming up with new and novel ideas. This only serves to reinforce the view of designer as magician -- that somehow, while playing hours of foosball or XBox, designers are busy dreaming up the next Twitter, Apple, or Nike.
When people speak about a playful offices, they often describe Nerf darts.
In fact, playfulness in culture can be designed, and it doesn't require any Nerf toys at all. But it requires some top-down qualities that will challenge traditional corporations and financially-strapped agencies. To be playful, an organization needs to embrace dynamic constraints, provide a runway to explore deviant ideas, and support and encourage flow.
Embrace Dynamic Constraints
While the word constraint has a negative tone, constraints act as the central construct for managing an otherwise overwhelming design activity. Designer Charles Eames described constraints as the qualities that contain a design problem, that mark its beginning and ending, and that illustrate to what extent the designer can affect change. Clients and technologies provide constraints, but the most useful and actionable constraints come from within the designer, and are often established during synthesis. A playful culture enables a designer to propose new constraints, and when the context of the situation demands -- to the frustration of business owners everywhere -- the designer can selectively ignore constraints entirely. Consider the following dialogue between a designer and a product manager concerning a web-based flow:
Designer: This is such a critical moment in the checkout flow that I highlighted the area in red and made the action abilities a bit larger than on other pages.
Product Manager: But that doesn’t fit within the parameters of the templates we’ve established and everyone has signed off on. It’s different from the other pages. Won’t it be inconsistent?
Designer: Yes, it is inconsistent. But I think, at this part of the flow, it’s important to call it out as separate.
Product Manager: I’m confused. When we developed the templates, you told me consistency was important. Now you are telling me it’s not important. Which is it?
Does the designer have the ability to establish constraints during synthesis? Are they empowered to make decisions like this? Most importantly, is there institutional support for the design team -- have the directors and other managers enacted policy, procedure, and precedent that brings designers into a situation early enough to make this form of strategic recommendation?
Provide a Runway to Explore Deviant Ideas
Most businesses embrace an established hierarchy of decision making. This, theoretically, helps streamline important decisions, enforces accountability, and minimizes risk. In the context of creativity, while senior and director-level designers have refined their craft, it's unlikely that they will have the "best idea" during a synthesis session, as synthesis is dependent on a breadth of experiences and unique viewpoints. To hold a playfully deviant point of view in the context of a serious design discussion allows a designer to explore divergent ideas, temporarily move the problem constraints, and expand the boundaries of what might be considered "appropriate" design decisions. A playful culture will provide a runway for those with deviant ideas to explore and refine the ideas -- even when those ideas conflict with the vision of leadership. Sometimes this runway consists of permission; other times, it requires hours and financial support. But in all cases, support comes from above, by setting a tone and approach that embrace conflicting ideas.
Does your company culture afford freedom, flow and decision-making?
The notion of being playful is to appreciate and encourage divergent thinking and the shifting, flexing, and removing of constraints. Play is about exploring "what-if" scenarios; that is, dream states. Our lives, jobs, and compensation are so frequently tied to rational thought that we have often forgotten how to actively dream, yet these dreams -- the ability to generate ideas, outlandish or otherwise -- are at the core of design innovation. Design synthesis embraces this divergent dreaming.
Support and Encourage Flow and Autonomous Decision Making
According to psychologist Mihaly Csikszentmihalyi, flow is an optimal experience achieved during creativity that is an "automatic, effortless, yet highly focused state of consciousness." Flow is literally the awake-dreaming state of mind that occurs when a designer is able to move through the space of a problem, holding many design "moves" in the mind at once, and suspending self-criticism while retaining idea-based judgment. To state the obvious, this takes time -- blocks of undisturbed time. Conference calls, meetings, check-ins, standups, email threads, bug-lists, IMs, and other distractions can make it literally impossible to enter this flow-like state. A culture that recognizes the importance of flow can create a virtual barrier around a design team, where someone -- usually a creative director -- can play interference for the team by handling all of the tedium described above.
If someone's making decisions during a flow-like state, they aren't checking in with the team, and they aren't waiting for consensus before moving forward. Simply, they are empowered to act autonomously -- rejecting the increasing trend towards "socialization" of every decision made during the development of a product, system or service. Consider if your company culture affords this level of freedom, flow, and individual responsibility and decision-making.
Synthesis is the ability to make meaning out of data, and playfulness is a cultural phenomenon central to meaning-making. Play can be introduced, over time, into any organization. Start by embracing the dynamic nature of constraints, providing a runway for employees to explore deviant ideas, and supporting and encouraging flow and individual decision making.
During Part I of this series, I offered some tactics on how to jump into synthesis; in Part III of this series, I’ll describe the importance of celebrating bias in your design synthesis work. See you next week.
JON KOLKO
Jon Kolko is the Executive Director of Design Strategy at Thinktiv, a venture accelerator in Austin, Texas.
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