Keller Williams CEO Anounces KW Worldwide
May 19, 2010
Mark Willis, CEO of Keller Williams International announced at the 2010 KW Family Reunion the company was laying the ground work to expand beyond North America.
On May 6th, 2010, it was announced that Chris Heller of The Heller Real Estate Group and Operating Principal of the Carmel / Del Mar, California Market Center would take the helm as President of KW Worldwide.
Through 2010 Mr. Heller and a team of researchers will determine exactly where the company will begin its worldwide expansion. The first destination will be announced at Family Reunion 2011.
Short Sale Break Down
May 12, 2010
Short Sales and Real Estate!
I started Real Estate back in July of ’09. I practice all over the Phoenix metropolitan area. I missed the boom and by the time I started two thirds of all realtors left their profession; I actually started my career with a mop in one hand ready to help clean up after the party. Since I started I have had the luxury of only knowing the Foreclosure and Short Sale market. I have made so many calls to banks that AT&T called to see if my phone was stolen. I have put together enough short sale packets that I could give Encyclopedia Britannica a run for shelf space. The biggest opportunity I have found is The Short Sale Process. Love them or hate them short sales will be a huge part of real estate for years to come. Some realtors try to ignore them and others are trying to embrace them but at the end of the day this beast needs to be tamed. There are many different avenues to take when working on a short sale on both the buying side and listing side. For my next few blogs I will dive into different parts of the short sale process. Things to know, processes to learn, and even bank and Realtor edict.
Today I’m going to touch on being an educated Short Sale Buyer’s agent:
Educating yourself will not only save you time, help you make money, but will make you a hero realtor for your clients. Not all short sales were created equal and because of this fact you need to focus on what will close. Please, before you start, fully prepare your clients for the road ahead. Make sure they understand the process and the time it can take (sometimes a half a year) and the overall possibility of being rejected. Now lets begin.
Days on Market & Comparable Properties
If a house has been on the market 60+ days there can be some major timing issues. Most distressed home owners have stopped paying the mortgage completely. A foreclosure will start at 90 days of missed payments. There is no guarantee that a foreclosure will be postponed by the bank while a short sale offer is in review. So tread carefully.
Don’t fall for a teaser rate. If the price seems to good to be true…it is. Always check your comparable properties! If a house is worth $160k market value the bank will not ok an offer at $100k. Many buyer disappoints don’t come from the bank not approving a short sale but are upset about the price it’s approved for. Unfortunately there are good reasons that teaser rates exist. I will touch on these points when I discuss listing a short sale.
Control the searches & Make a lot of calls (Multiple Liens are the enemy)
This seems like Real Estate 101 but you must control the properties your client sees. The internet makes it easy to gather information. Everybody knows just enough to make your job harder. Have a conversation early on why the properties you bring to the table have the best chances of closing. Explain teaser rates, multiple liens (we’ll talk about this in a moment), proper comps, and your 100% commitment to finding the best properties (insert you best selling phrase)! Just make sure you have the reins other wise prepare to defend every property you show.
Now that you have the reins make sure you steer your clients properly. You need to find out the basics on every situation. Before you start calling other agents prepare the questions you need answered
How many offer are they working with?
Simply put: don’t waste your time as a back up.
How many LIENS are on the property?
It’s hard enough asking one bank to forgive debt but multiple banks will be manifold times harder.
What is the hardship?
You are not looking for heart throb story but simply that there is a real one. Divorce, loss of income, medical, etc… The client’s investment home lost to much value doesn’t count. If it’s not legit the bank might not want to play ball leaving your clients disappointed.
Are the HOA payments current?
Not all banks are willing to pay for past dues on HOA’s and that can become a substantial amount for your clients at closing. Also HOA companies can put a lien on a property. They are guaranteed to be paid in a foreclosure not a short sale. They can be a vicious hurdle to over come.
Who are the liens with?
Knowing the bank can open your eyes to a plethora of information. You can research their turn time and amount of successful closes. Knowing if all the liens are with the same bank can sometimes make life easier….not always. At least you have the opportunity to make a more educated pick for your client.
Have you collected and submitted all necessary paperwork for the short sale packet?
This will help gauge how far a long the listing agent is and also show their commitment.
Are they working with a Short Sale Negotiator?
This is a big one. A short sale negotiator can really make the process run smoothly but at a cost. If it is a third party they may take a slice from everyones pie. If the negotiator is another agent from their firm it will most likely be a split only on their side. If they aren’t using a negotiator find out how experienced the agent is.
Will you do a 50% split on what the bank approves?
If you don’t ask don’t expect to receive. Most agents that put 2.5% or less on their listings is because they were burned before. Most agents are willing to split 50%; just have it in writing at some point.
Asking these questions will help you find the best candidates that will close. At the end of the day a property that has no chance of closing was never an actual option.
Article contributed by Justin Botner
Mesa Real Estate
Tax Incentive is gone…next? Take the poll!
May 4, 2010
Among industry professionals, there is much debate as to what will happen in the marketplace now that the tax incentives for first time homebuyers and others to buy have now gone away. Will the sales continue? At what pace? Will there be other incentives? Where will the buyers come from?
So many REALTORS are asking themselves these questions, but the REAL question is this: Now that these incentives have sunsetted…what are YOU experiencing out there in the marketplace?
For RealEstateIndustryWatch to get a handle on that, we are conducting a poll. (Look on the right hand side of this page and you will see it.)
Do you have an opinion and want to write about it? We are happy to hear from you. Simply comment on this post with your prognostication.
NAR urges Senate to act on Rural Housing Assistance Bill
May 1, 2010
According to this post on REALTOR.org, The National Association of Realtors® is urging the Senate to act quickly to approve House legislation passed today to extend loan commitment authority under the Rural Housing Service program to help families purchase homes in rural areas. The present commitment is expected to expire Friday, April 30.
The House bill, H.R. 5017, the Rural Housing Preservation and Stabilization Act of 2010, would provide additional commitment authority under Section 502, Rural Housing Service (RHS) Single Family Housing Guaranteed Loan Program, for the remainder of the fiscal year, which ends Sept. 30.
Women pleads no contest to being an unlicensed real estate broker
March 21, 2010
A 43-year-old Miramar Beach woman was sentenced to five years in prison after she was caught running a property management firm without a license.
In July 2009, a couple hired Connie Jo Hludzik to rent out their condo, according to a Walton County Sheriff’s Office news release. Hludzik told the couple she ran a company called CJ’s Cleaning and Property Management LLC.
Hludzik rented out the condo, and turned over two checks to the owners totaling $1,746, the release said. The checks failed to clear the bank, and investigators learned that Hludzik did not have a real estate license.
Also in the summer of 2009, a man sent Hludzik a $400 check to reserve a condo in Destin for a week, the release said. The man was unable to make further contact with Hludzik.
Hludzik pleaded no contest Tuesday to grand theft and to being an unlicensed real estate broker. She was sentenced to five years in prison.
She remains a person of interest in a few similar fraud cases in Florida, according to the Sheriff’s Office.
Source: http://www.nwfdailynews.com/news/woman-27108-management-firm.html
This is a huge scam that I am so disappointed to hear about. The women rightly deserves 5 years in prison. I do hope that other scam artists read this article. Realtors can all be aware and report any suspicious activity to their local boards as well.
RE/MAX Utilizes Roku IPTV to Replace Satellite Network
March 15, 2010
RE/MAX recently rolled out RE/MAX University’s new training platform. It utilizes IPTV (Internet based TV) as opposed to Satellite as a delivery vehicle. This move is expected to accomplish two major objectives:
1) By moving to an IP based system, affilliates can access training on demand via their TV. This is a simple to use platform that will pick up any high speed internet connection. This even allow RE/MAX agents the ability to get continuing educations and earn designations from their TV without waiting for the satellite network. It is accessible 24/7
2) This is expected to reduce costs for the franchise network. While no figures were available at the time of this writing
HomeGain completes survey on Agent marketing preferences
March 12, 2010
HomeGain recently published their survey of the Top Ten Marketing Strategies for Real Estate Agents. This survey was conducted December 2009 through February 2010 and measured what marketing channels agents are currently using in marketing and what they intend to use in 2010. This provided some interesting results.
“While Realtors are increasingly moving their marketing activities online, it’s interesting to see the continued strength and perceived effectiveness of print and mailer campaigns,” stated Louis Cammarosano, General Manager at HomeGain.
With the economy going through a difficult cycle and REALTORS strapped for cash and looking for low cost, high impact marketing opportunities, it will be interesting to see where agents actually spend their time and money in pursuit of new business.
Tax Credit Coming to an End?
February 8, 2010
The First Time Home Buyer Tax Credit of 2009 was given new life late last year. President Obama extended the original credit end date until April 30th for purchases and buyers under contract before then have until the end of June to close escrow and claim the credit. The credit has been a success to this point, helping to drive consumers back into the ailing real estate market.
There has been some talk in the media about 2010 being the rebound year for the economy. Home sales in several areas around the country are up and prices have stabilized or increased. However, foreclosures are still a problem in several states coupled with high unemployment. Considering the overall state of the union, I wonder if the government isn’t considering an extension of the credit into the fall.
Interest rates are still very low and there is plenty of surplus housing available. Consumers have been buying but new inventory coming on the market is still a factor.
What do you think?
International Living Reveals Top 10 Best Countries to Live
January 23, 2010
The 2010 Quality of Life Index, produced by International Living, ranks and rates 194 countries based on their quality of life. The index looks at nine categories: cost of living, culture and leisure, economy, environment, freedom, health, infrastructure, safety and risk, and climate. For the fifth consecutive year, France tops the list.
The top 10 countries in the 2010 Quality of Life Index and some of the characteristics that contribute to their high ranking are:
- France: An unsurpassable quality of life, including the world’s best health care.
- Australia: Countrywide access to an active and healthy lifestyle. Urban dwellers enjoy plenty of great culture, excellent food, and a favorable cost of living.
- Switzerland: A super-efficient, high-tech society and alpine tourism.
- Germany: Theater, art, and classical music concerts. Average employee earnings of €41,509 ($61,433).
- New Zealand: Pristine landscapes and absence of high crime rates, abject poverty, pollution, congestion, health issues and cramped city living.
- Luxembourg: A financial center and tax haven, and a per capita GDP of $88,000.
- United States: Convenience of getting what you want, when you want it.
- Belgium: Expat friendly with everything from English-language cinema to international schools.
- Canada: High living and health care standards. Vast natural resources, robust financial industry, and innovative manufacturing.
- Italy: Grand historic cities, 60 percent of the world’s art treasures, and a WHO-acclaimed national health care system.
Promising Outlook for Commercial Real Estate Worldwide in 2010
January 17, 2010
Worldwide, 2010 looks promising for commercial real estate investment across most markets, and Asia offers the best opportunities, according to the 16th edition of the LaSalle’s Investment Strategy Annual.
The report says that the free fall in values has stopped in nearly all the major markets it follows and the early stages of restored investor confidence have begun.
Markets across the globe are recovering in very different and surprising ways. LaSalle offered the following information about specific markets:
United Kingdom: While capital values will still increase, a sharp rebound in prices means that the best opportunities have passed, the report says.
Continental Europe: France and Germany are set to see most of the investment activity in 2010. Re-pricing in other countries continues at varying speeds and Central Eastern Europe continues to be paralyzed.
United States: Its recovery is slower because the market has yet to reach bottom. Weak economic fundamentals are expected to push vacancies up and prices down until the second half of 2010.
Asia: The area is expected to offer investors the greatest range of opportunities in 2010 as China and India growing rapidly, and economies that have experienced a contraction in economic output reclaim lost ground by 2010.
LaSalle summarizes that investors in commercial real estate should be cautiously optimistic about the outlook in 2010. However, as a late cycle participant in the general economic recovery, real estate will behave differently from other asset classes.
