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Saturday, January 29, 2011

2010 Year End Real Estate Market Update

From Dan Elsea

December Pending Sales were at a relatively strong pace, giving us more market momentum going into 2011 than we had into 2010. Overall we are seeing what appears to be a trend towards a stable market in terms of inventory levels and sales pace. It is also a reasonable window into what we can expect in 2011, an active buyer market with sales near 2010 levels (possibly slightly lower without the tax credit help of 2010). The months supply of inventory (MSI) is still running over 6 months, putting the market on the Buyers side, however it dips closer to 5 months in the under $100,000 range, but still over 24 months in the over $500,000 range. Which means price appreciation is still a year away for the lower priced areas and more for the higher priced markets. So should buyers wait? As we have said may times, it is pretty clear we have hit the market bottom, and although appreciation won't be taking off soon, interest rates will certainly rise, as they have already. A 1% rise in rates wipes any savings from a 10% price drop and it is far more likely that interest rates will rise by 1% than values will fall by 10%. Also, with an FHA loan, buyers will lock in a low interest rate that is assumable when they sell their home. In five years, a 4.75% rate will make your home more saleable when the rates are at 6.5%.

Also, keep in mind that there are thousands of former homeowners, who were forced to sell and now lease and whose credit is now repaired and ready to take the homeownership plunge. In the most recent NAR surveys, the vast majority of people who lost their homes due to financial hardship are still looking to own another home first chance they get.

2010 was the fifth year of our “new normal”, where most sales required 2-3 negotiations (to the buyer, the appraiser, the lender) and considerably more time. We worked extra hard, but there has not been a time when we have been needed more by our clients. Through it all you closed more transactions than ever before in our 81 year history!! We are one of only five brokers among the Real Trends 500 to show an increase in sales associate productivity! You worked hard for your clients and it showed in our collective success rates.

Thank you for a great 2010 and an even stronger 2011


Here is how the market shook out this year:

The 5 minute Business Plan

The 5 Minute Business Plan:
A business plan doesn't have to be complicated, but without one you will likely be one of the 90% of agents in our industry who earn only 10% of the income. Most of us don't have a business plan because we don't know where to begin. Here it is. The beginning, the middle, & the end result in 5 minutes. At the end of each day, you will only need to ask yourself one question to know if you did your job. Check it out: The 5 Minute Business Plan If you or anyone you know wish to learn how to jump start your new year in real estate, you may register for a free workshop on this topic - Register Here

Tuesday, January 25, 2011

How To Use Craig's List To Generate Leads

How to Us Craigs List to generate leads!

Jan 11
By Tracey Velt | Category : 2 categories
2 Comments | Speak Up Too!
How to Use Craigslist to Generate Phone Calls
Are you putting your listings on Craigslist? If you answered 'no', why not? Sure, the time investment may seem overwhelming, but EXIT International National Sales Trainer Johnny Loewy says you can generate one phone call every two days for EACH listing you put on Craigslist. So, those 10 listings will get you five phone calls in two days. Here's how he does it:

1. Put 10 listings a day into Craigslist without fail. "We put 10 listings a day for 7 days into Craigslist," says Loewy. If you don't have enough listings to advertise, he says you should go to local new-home builders. "They'll be glad to let you advertise their homes for free," he says.

2. Try a listing syndicator. Lowey's team uses Postlets. "It lets you create a listing flier that posts right to Craigslist and hooks in the client," he says.

3. Talk the talk. "With technology, it's easy to get the lead, but not easy to convert it. You have to have a conversation with the people who call," he says. That means having a planned script that forces you to set the appointment.

"If you post 10 listings a day for seven days, you'll get about five phone calls a day," says Loewy, who cautions that it may take 20 to 30 hours of prep work to post those listings. "But, you can you can use the same inventory for a few months and I promise it will keep generating business for you."

What's your internet strategy for lead generation?
Please share.

Stop Selling - No one Likes it

We all have a natural fear of being sold. Accept it and stop trying. You are a consultant. Focus on asking the right questions to determine what your customers needs and priorities are. It is impossible to help anyone without knowing 3 key answers:

1.) What are you trying to accomplish?
2.) Why have you chosen to do it now?
3.) By when do you need to have it done?

Without each of these answers, it is impossible to provide solutions to our customers and with this knowledge it is impossible to be seen as selling them anything! With these answers you are equipt to devise a plan of action that addresses their goals.

What's your most effective question?

Thursday, January 6, 2011

Housing Market Recovery Depends on Jobs and Access to Credit, Says NAR

Housing Market Recovery Depends on Jobs and Access to Credit, Says NAR

Although the recent trend of rising long-term borrowing rates may mean higher mortgages for consumers in the coming months, the greater obstacles to housing market recovery are job creation and availability of credit, according to a National Association of Realtors analysis. "Modest changes in mortgage rates are less important to a housing market recovery than the number of people who are able to obtain mortgages," said NAR Chief Economist Lawrence Yun.

Last week, NAR's Board of Directors approved a credit policy to urge the mortgage lending industry to reassess and amend their policies so more qualified home buyers can become homeowners.

"Currently, the overly tight underwriting standards are holding back the pace of housing market recovery," said Yun. "In particular, creditworthy small business owners and those who want to purchase investor properties have encountered extreme difficulties in obtaining a mortgage. In contrast, all indications are that recently originated mortgages with Fannie Mae, Freddie Mac, and the Federal Housing Administration have solid loan performance, implying that credit is only going to the most well-qualified borrowers. Additional creditworthy borrowers who are willing to stay well within budget and meet reasonable underwriting criteria should be able to obtain a loan to help speed the housing and economic recovery."

To qualify for a loan, most buyers must also be gainfully employed. As Congress reconvenes this week and considers an extension of the Bush tax cuts, their decision could impact job creation.

If the Bush tax cuts are extended for those earning less than $250,000, but taxes are increased for higher earners, Yun expects about 1.5 million net new jobs to be added to the economy in 2011. Mortgage rates are expected to rise to 5.4% by the end of 2011 from the current 4.2% average rate provided the inflation rate stays manageable at near 2%. Total home sales, both existing and new combined, would rise to 5.5 million in 2011 from 5.1 million in 2010. If the Consumer Price Index inflation rate was to reach 3%, then mortgage rates could rise to 6% by the end of 2011, cutting home sales to 5.2 million.

"If the Bush tax cuts were extended for everyone across the board, an additional 400,000 additional jobs could be created in 2011, with home sales rising by an additional 60,000-80,000," said Yun. "Of course, there are many factors that could influence job creation, and we also need to be mindful of the very high current budget deficits."

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