by Jennifer Allan
Have you ever heard the commission-negotiation-avoidance strategy of creating a menu of packages for a seller to choose among? For example (all figures are illustrative only), you might offer a 4 percent package which includes minimal services; a 5 percent package which has a moderate level of service and a 6 percent package that includes a kitchen-sink level of service.
Sounds good, doesn't it? After all, it demonstrates to the seller what you actually DO to sell a house and probably reduces the likelihood of his asking for a discount. If he wants to pay less, he gets less. HIS choice.
Sorry, but I think this is a lousy idea. Why?
Oh, let me count the ways ... .
You want to sell the house don't you? Yes? Well, then why are you asking your SELLER how to market it? As the expert in selling houses, YOU know what needs to be done and you, as a professional, should do those things.
You should also know what doesn't sell houses in your market. And you shouldn't be offering and charging for those services if you (as a professional real estate agent) know they aren't effective.
When I get a new listing, I really want to sell the darn thing and I spend a lot of time and energy figuring out what we need to do to make that happen. By "we," I mean me and my seller. I don't market every house exactly the same, nor do I advise every seller to do the same things. It's part of my service to analyze each situation individually and proceed accordingly. Some listings will benefit from Open Houses, some won't. Some (most) homes need staging, some don't. Some listings will benefit from newspaper ads, most won't. It's my job to know these things.
Besides, you want to provide exceptional service to all your clients, don't you? Don't you want their future business and referrals? By purposely limiting your service (especially if it affects the marketability of the home), you may be blowing your reputation and credibility with this client and potential source of future business. And of course, you may also be blowing your chances of getting a paycheck if your seller doesn't pick the right package and the house doesn't sell.
Be a professional real estate agent and do what it takes to sell your listings. That's your job.
http://realtytimes.com/rtpages/20080827_menuservices.htm
Wednesday, August 27, 2008
Monday, August 25, 2008
Existing home sales rise, but prices still sinking
Sales by homeowners increased more than expected in July, as median prices fell 7% from July 2007. But supplies still rise to a record high, pushing prices even lower.Are you better off than you were seven years ago during the last economic downturn?
NEW YORK (CNNMoney.com) -- Sales of existing homes rose more than expected in July, but prices continued to fall and inventory increased. That's according to the latest reading on the battered housing market by an industry trade group released Monday.
The National Association of Realtors reported that sales by homeowners in July increased to an annual pace of 5 million, up from the revised June reading of 4.85 million.
That's better than the annual pace of 4.9 million that economists surveyed by Briefing.com expected, and it's the highest pace since February. Still, July sales were down 13.2% from a year earlier.
"Sales volume is starting to increase because prices are collapsing," said Michael Larson, an economist with Weiss Research. "When lenders are aggressive enough on pricing, especially in certain markets, it's enough to attract buying interest."
Falling prices
The median price of all homes sold during the month - including single-family homes, townhomes, condominiums and co-ops - fell 7.1% to $212,400 from $228,600 a year ago. Before the start of the current housing slump, it had been 11 years since prices fell compared to a year earlier.
At the same time, the single-family home median price fell 7.7% from a year ago to $210,900. The trade group has tracked those sales prices going back to 1989.
The rate of existing home sales rose in every region of the country except the South, where sales slipped by a seasonally adjusted 0.5%. Sales in the Northeast rose 5.9%, while the Midwest saw an increase of 0.9%. The West saw the largest jump in sales, up 9.7%, as prices fell a whopping 22.2% in that region.
Prices in the Northeast declined 4.9%, while the South saw a dip of 3.5%. Prices actually rose 1% in the Midwest.
"Home prices generally follow sales trends after a few months of lag time," said Lawrence Yun, NAR chief economist. "Still, inventory remains high in many parts of the country and will require time to fully absorb."
Expanding inventory
Even as sales picked, up, the excess supply of homes on the market still rose 3.9% in July to a record high of 4.67 million. Realtors estimated that represents an 11.2 month supply.
That is up from the 11.1-month supply in June, though NAR said the rise in inventories was due to a sharp jump in the number of condominiums on the market. Inventory of single family homes declined slightly, falling to a 10.6 month supply from 11 months in June.
"The troubling thing about this report is that the supply issue is not going away," said Larson. "It would be okay as long as the inventory went down, but there were enough new listings that overall supply rose more than sales."
In response to the struggling market, President Bush signed the Housing and Economic Recovery Act late last month. The bill includes a temporary tax credit of up to $7,500 for first-time home buyers who haven't purchased a home in three years.
Qualified buyers must earn less than $75,000 - or $150,000 for a couple - after which point the tax credit begins to phase out. The Senate Finance Committee estimates that about 1.6 million people will use the credit.
But if inventory continues to rise, it may be a while before the the market can recover.
"This report illustrates a housing market that's going to continue to struggle," said Larson. "Pricing pressure will remain for a while."
NEW YORK (CNNMoney.com) -- Sales of existing homes rose more than expected in July, but prices continued to fall and inventory increased. That's according to the latest reading on the battered housing market by an industry trade group released Monday.
The National Association of Realtors reported that sales by homeowners in July increased to an annual pace of 5 million, up from the revised June reading of 4.85 million.
That's better than the annual pace of 4.9 million that economists surveyed by Briefing.com expected, and it's the highest pace since February. Still, July sales were down 13.2% from a year earlier.
"Sales volume is starting to increase because prices are collapsing," said Michael Larson, an economist with Weiss Research. "When lenders are aggressive enough on pricing, especially in certain markets, it's enough to attract buying interest."
Falling prices
The median price of all homes sold during the month - including single-family homes, townhomes, condominiums and co-ops - fell 7.1% to $212,400 from $228,600 a year ago. Before the start of the current housing slump, it had been 11 years since prices fell compared to a year earlier.
At the same time, the single-family home median price fell 7.7% from a year ago to $210,900. The trade group has tracked those sales prices going back to 1989.
The rate of existing home sales rose in every region of the country except the South, where sales slipped by a seasonally adjusted 0.5%. Sales in the Northeast rose 5.9%, while the Midwest saw an increase of 0.9%. The West saw the largest jump in sales, up 9.7%, as prices fell a whopping 22.2% in that region.
Prices in the Northeast declined 4.9%, while the South saw a dip of 3.5%. Prices actually rose 1% in the Midwest.
"Home prices generally follow sales trends after a few months of lag time," said Lawrence Yun, NAR chief economist. "Still, inventory remains high in many parts of the country and will require time to fully absorb."
Expanding inventory
Even as sales picked, up, the excess supply of homes on the market still rose 3.9% in July to a record high of 4.67 million. Realtors estimated that represents an 11.2 month supply.
That is up from the 11.1-month supply in June, though NAR said the rise in inventories was due to a sharp jump in the number of condominiums on the market. Inventory of single family homes declined slightly, falling to a 10.6 month supply from 11 months in June.
"The troubling thing about this report is that the supply issue is not going away," said Larson. "It would be okay as long as the inventory went down, but there were enough new listings that overall supply rose more than sales."
In response to the struggling market, President Bush signed the Housing and Economic Recovery Act late last month. The bill includes a temporary tax credit of up to $7,500 for first-time home buyers who haven't purchased a home in three years.
Qualified buyers must earn less than $75,000 - or $150,000 for a couple - after which point the tax credit begins to phase out. The Senate Finance Committee estimates that about 1.6 million people will use the credit.
But if inventory continues to rise, it may be a while before the the market can recover.
"This report illustrates a housing market that's going to continue to struggle," said Larson. "Pricing pressure will remain for a while."
Get Free & Valuable Media Exposure for your Listing
As a real estate agent, you are expected to create a marketing plan for your seller. When seeking the listing, you present the seller with your strategies about what you’ll do to promote the home. When was the last time you included Public Relations as part of your marketing matrix? Probably not lately and that’s likely because you don’t understand the public relations process and how the media works. This column will help change that.
The Media is "Looking for News” – Give them what they Want! First, understand this -- the media are (constantly) on the lookout for new, interesting and exciting (news) stories. What this means to you is that the media is entirely approachable. All you need to do is learn how to present "your news” to them.
The Key Four Steps to Obtaining Free Publicity for your Property
So how do you go about getting a property you represent featured in the newspaper or spotlighted on television? It all starts with an angle, followed by a smartly and properly written press release, targeting the right media as a potential outlet for your story and then pitching them your story idea.
That’s it. Your PR game plan consists of four key steps: Angle/Story idea, Press Release, Target Appropriate Media, and Pitching Skills.
Get Started Grabbing
Your Share of the Limelight How do you start getting free publicity? There are a few ways, the media coverage can be about you, your company, about your new listing, or in a perfect world, all three. The questions below will serve as triggers for the things you need to think about and answer that can serve as the basis of a press release you can use to pitch a potential story "about you” to the media.
Disclaimer: Here’s what this Article Will do, and what it will not Do.
This article will not teach you "how to" write a press release. There is not enough space to do that. There are literally hundreds of books both off line and online that can assist you in this area, some for free, others not. What this column will do for you immediately is provide you with the critical thinking that expands your world from a marketing point of view that will allow you to begin the process of understanding what’s involved in creating a proper PR storyline that can help you potentially obtain free media coverage. So let’s begin.
Have you earned any special achievements, awards, certificates, designations, etc?
Have you emerged as a "sales leader” in your organization? Have you overcome any "obstacles” personal and/or professional to achieve the accomplishments or status that you have earned? Do you have any "inside or secret techniques” you can share with your industry colleagues regarding securing listings, reading buyers, negotiating, marketing? How would you document your rise to success – overcoming obstacles, if any, to become a premier player (in whatever niche you might specialize in or if you are a player at the top end of the very elite spectrum of the real estate industry – this applies to "your success” either within your sales organization and/or the industry at large in your community)
Have you worked with – either buyer(s) or seller(s) that are high profile – celebrities from the worlds of entertainment, business, sports, government, etc., etc.?
These connections and tie-ins are very strong and useful in creating media interest and excitement in you and your story, especially if you have photos either of you with them or even just them alone – at your house/property, etc..
Case studies and Teaching Opportunities – what secrets and/or tips can you share that would be helpful and/or informative to others in the industry? Do you have a secret listing technique? What about reading buyers? How do you close? Your tips, if any, on negotiation? What is and/or was the most interesting/challenging home/project listing/sale, etc.? What lessons did you learn from this/these and can these lessons be passed on to your colleagues? Here is the PR bottom line: Maybe you’re special, maybe you’re not. If you can answer these questions, either any single one of them, or any combination of them, in a press release format, with a word count of approximately 550 words, you have a shot at obtaining the media holy grail -- FREE PRESS coverage.
Working from this list you can craft a press release that could potentially be of interest to your local and/or industry real estate trade journals, possibly even your daily newspaper or even magazines. Remember, the media are always looking for news. If you package, present and pitch your information the right way, you may very well find yourself in the media spotlight. That’s good for you, and your business. And best of all, it’s free.
By: Jeff Mustard
http://realtytimes.com/rtpages/20080825_publicrelations.htm
The Media is "Looking for News” – Give them what they Want! First, understand this -- the media are (constantly) on the lookout for new, interesting and exciting (news) stories. What this means to you is that the media is entirely approachable. All you need to do is learn how to present "your news” to them.
The Key Four Steps to Obtaining Free Publicity for your Property
So how do you go about getting a property you represent featured in the newspaper or spotlighted on television? It all starts with an angle, followed by a smartly and properly written press release, targeting the right media as a potential outlet for your story and then pitching them your story idea.
That’s it. Your PR game plan consists of four key steps: Angle/Story idea, Press Release, Target Appropriate Media, and Pitching Skills.
Get Started Grabbing
Your Share of the Limelight How do you start getting free publicity? There are a few ways, the media coverage can be about you, your company, about your new listing, or in a perfect world, all three. The questions below will serve as triggers for the things you need to think about and answer that can serve as the basis of a press release you can use to pitch a potential story "about you” to the media.
Disclaimer: Here’s what this Article Will do, and what it will not Do.
This article will not teach you "how to" write a press release. There is not enough space to do that. There are literally hundreds of books both off line and online that can assist you in this area, some for free, others not. What this column will do for you immediately is provide you with the critical thinking that expands your world from a marketing point of view that will allow you to begin the process of understanding what’s involved in creating a proper PR storyline that can help you potentially obtain free media coverage. So let’s begin.
Have you earned any special achievements, awards, certificates, designations, etc?
Have you emerged as a "sales leader” in your organization? Have you overcome any "obstacles” personal and/or professional to achieve the accomplishments or status that you have earned? Do you have any "inside or secret techniques” you can share with your industry colleagues regarding securing listings, reading buyers, negotiating, marketing? How would you document your rise to success – overcoming obstacles, if any, to become a premier player (in whatever niche you might specialize in or if you are a player at the top end of the very elite spectrum of the real estate industry – this applies to "your success” either within your sales organization and/or the industry at large in your community)
Have you worked with – either buyer(s) or seller(s) that are high profile – celebrities from the worlds of entertainment, business, sports, government, etc., etc.?
These connections and tie-ins are very strong and useful in creating media interest and excitement in you and your story, especially if you have photos either of you with them or even just them alone – at your house/property, etc..
Case studies and Teaching Opportunities – what secrets and/or tips can you share that would be helpful and/or informative to others in the industry? Do you have a secret listing technique? What about reading buyers? How do you close? Your tips, if any, on negotiation? What is and/or was the most interesting/challenging home/project listing/sale, etc.? What lessons did you learn from this/these and can these lessons be passed on to your colleagues? Here is the PR bottom line: Maybe you’re special, maybe you’re not. If you can answer these questions, either any single one of them, or any combination of them, in a press release format, with a word count of approximately 550 words, you have a shot at obtaining the media holy grail -- FREE PRESS coverage.
Working from this list you can craft a press release that could potentially be of interest to your local and/or industry real estate trade journals, possibly even your daily newspaper or even magazines. Remember, the media are always looking for news. If you package, present and pitch your information the right way, you may very well find yourself in the media spotlight. That’s good for you, and your business. And best of all, it’s free.
By: Jeff Mustard
http://realtytimes.com/rtpages/20080825_publicrelations.htm
Friday, August 22, 2008
Top Agent's Business plan for 50 transactions a year
Everyone needs a plan to succeed in this market. This is a great article I found in the realty times.
http://realtytimes.com/rtpages/20080822_topplan.htm
Beginning in the late seventies, Walter re-wrote records in real estate particularly in number of transactions and dollar volume. His best year was 1992 with $72 million in sales. In today’s economy, that would equal to over $133 million dollars per year in personal production sales! He sold a house a day for seventeen years.
Now, he is one of the most requested trainers in real estate. Franchises request and mentor his systems, which he has developed. Delegation, net-profit strategies, working hard and still having a life are a few of the easy to implement, low-cost strategies that we are proud to bring you. Some industry decision-makers believe Walter Sanford was one of the top agents in North America during the ‘80s and early ‘90s. To contact Walter, you can email him at walter@waltersanford.com or by calling 815.929.9258.
http://realtytimes.com/rtpages/20080822_topplan.htm
Beginning in the late seventies, Walter re-wrote records in real estate particularly in number of transactions and dollar volume. His best year was 1992 with $72 million in sales. In today’s economy, that would equal to over $133 million dollars per year in personal production sales! He sold a house a day for seventeen years.
Now, he is one of the most requested trainers in real estate. Franchises request and mentor his systems, which he has developed. Delegation, net-profit strategies, working hard and still having a life are a few of the easy to implement, low-cost strategies that we are proud to bring you. Some industry decision-makers believe Walter Sanford was one of the top agents in North America during the ‘80s and early ‘90s. To contact Walter, you can email him at walter@waltersanford.com or by calling 815.929.9258.
Wednesday, August 20, 2008
DON'T WAIT: CREATE!
Don't passively wait for business and success to come to you. Proactively create business and make success come to you. Too many Agents have let the market over the last few years create all of their success.
Recently, it has been pretty easy nationally to make a very good living selling real estate. You could have been passive and been okay. In today's marketplace, with changing inventory levels, more cautious buyers, and rising interest rates, you just can't wait – you have to create.
You must proactively and consistently prospect for leads. Most Agents never prospect proactively. Let's look at the truth; we mail things out and rarely pick up the phone or get face-to-face with anyone. Most Agents do lead follow-up, which means they follow-up on leads that came to them. They use passive techniques to create leads. We must also proactively create leads and proactively follow-up on our current leads. I tell Agents all the time, "If you need a boost in your production inventory, call all of your leads, even the longer term ones."
The vast majority of a Champion Agent's new listing inventory in a given month comes from their pipeline of leads. If you want to change your inventory level of listings, first go to your leads. Then start to prospect to build up your pipeline.
Sell prospects on "service presentation" meetings
This is an area we need to improve on. We rely on sending large quantities of information via e-mail rather than getting face-to-face. We have to focus on getting face-to-face with all prospects, even if they are six months out. The way to best determine if the lead is outstanding is the face-to-face meeting. It's also the thing that most other Agents they are talking to are not doing. The tightest connection you can create will be from a face-to-face meeting. In a service presentation meeting, you are not doing your full listing presentation; you are trying to determine desire, need, ability, and authority.
Prospect, Prospect, Prospect
In this marketplace, more time is needed in prospecting. It will take:
* More dials to = same amount of contacts
* More contacts to = same amount of leads
* More leads to = same amount of appointments
* More appointments to = same amount of contracts
* More contracts to = same amount of revenue
It might not be fair; it is what it is
Far too many Agents over the last few years have been totally reliant on one area of business: the "wear it like a badge of honor; I'm a 'by referral only' Realtor." While I believe referrals are essential to a healthy business, they are not the lifeblood of any successful business. Relying on 100% of one's revenue from one source is not a sound business practice. Even having 80% to 90% of one's income from one source leaves the business vulnerable to market shifts.
When the public's consciousness for real estate is at an all-time high, referrals generate significant revenue. When real estate is not the main topic of conversation at every cocktail party across North America, fewer leads and opportunities are created through referrals.
"There is a rude awakening about to happen for a significant segment of successful Agents."
Let's look at a real-world company, recently in the news, that had to declare bankruptcy due to their customer mix coming from predominantly one source. Delphi recently declared bankruptcy because their biggest customer is General Motors. More than 60% of their sales are made to General Motors. Due to the problems at GM and high labor costs, Delphi was forced into bankruptcy.
Many Agents await that same fate because of an eventual drop in referrals. The time to expand our streams of leads and income is now. Once most Agents realize the reduction in the number and quality of referrals due to a lower consumer demand and awareness for real estate, it will be too late. The time to act is now.
Resolve to add one new income stream in the next 90 days. I caution you to only add one. The natural tendency is to try a whole bunch. Focus on adding one with excellence rather than a whole bunch poorly
by Dirk Zeller
Realty News
http://realtytimes.com/rtpages/20080407_dontwait.htm
Recently, it has been pretty easy nationally to make a very good living selling real estate. You could have been passive and been okay. In today's marketplace, with changing inventory levels, more cautious buyers, and rising interest rates, you just can't wait – you have to create.
You must proactively and consistently prospect for leads. Most Agents never prospect proactively. Let's look at the truth; we mail things out and rarely pick up the phone or get face-to-face with anyone. Most Agents do lead follow-up, which means they follow-up on leads that came to them. They use passive techniques to create leads. We must also proactively create leads and proactively follow-up on our current leads. I tell Agents all the time, "If you need a boost in your production inventory, call all of your leads, even the longer term ones."
The vast majority of a Champion Agent's new listing inventory in a given month comes from their pipeline of leads. If you want to change your inventory level of listings, first go to your leads. Then start to prospect to build up your pipeline.
Sell prospects on "service presentation" meetings
This is an area we need to improve on. We rely on sending large quantities of information via e-mail rather than getting face-to-face. We have to focus on getting face-to-face with all prospects, even if they are six months out. The way to best determine if the lead is outstanding is the face-to-face meeting. It's also the thing that most other Agents they are talking to are not doing. The tightest connection you can create will be from a face-to-face meeting. In a service presentation meeting, you are not doing your full listing presentation; you are trying to determine desire, need, ability, and authority.
Prospect, Prospect, Prospect
In this marketplace, more time is needed in prospecting. It will take:
* More dials to = same amount of contacts
* More contacts to = same amount of leads
* More leads to = same amount of appointments
* More appointments to = same amount of contracts
* More contracts to = same amount of revenue
It might not be fair; it is what it is
Far too many Agents over the last few years have been totally reliant on one area of business: the "wear it like a badge of honor; I'm a 'by referral only' Realtor." While I believe referrals are essential to a healthy business, they are not the lifeblood of any successful business. Relying on 100% of one's revenue from one source is not a sound business practice. Even having 80% to 90% of one's income from one source leaves the business vulnerable to market shifts.
When the public's consciousness for real estate is at an all-time high, referrals generate significant revenue. When real estate is not the main topic of conversation at every cocktail party across North America, fewer leads and opportunities are created through referrals.
"There is a rude awakening about to happen for a significant segment of successful Agents."
Let's look at a real-world company, recently in the news, that had to declare bankruptcy due to their customer mix coming from predominantly one source. Delphi recently declared bankruptcy because their biggest customer is General Motors. More than 60% of their sales are made to General Motors. Due to the problems at GM and high labor costs, Delphi was forced into bankruptcy.
Many Agents await that same fate because of an eventual drop in referrals. The time to expand our streams of leads and income is now. Once most Agents realize the reduction in the number and quality of referrals due to a lower consumer demand and awareness for real estate, it will be too late. The time to act is now.
Resolve to add one new income stream in the next 90 days. I caution you to only add one. The natural tendency is to try a whole bunch. Focus on adding one with excellence rather than a whole bunch poorly
by Dirk Zeller
Realty News
http://realtytimes.com/rtpages/20080407_dontwait.htm
Friday, August 15, 2008
Investor Rules: Tax Pitfall
Here's a tax alert for real estate investors who use popular tax-free exchanges: The recently signed federal housing legislation contains a hidden zinger that could cost you thousands of dollars if you don't plan around it.
As of next January 1st, investors who exchange into rental or second home properties that they later convert into their personal homes no longer will be eligible for the full $250,000 to $500,000 tax-free exclusions now available on sales of principal residences.
Instead, they'll need to allocate their time of ownership between taxable investment or second home usage and non-taxable principal residential usage.
To qualify for tax-free exclusions they'll still need to use a property as their primary home for two out of the five years preceding any sale or exchange. But if any part of their total usage time after January 1st is what the new law calls "nonqualified" -- that is, investment, rental or second home use - then that will lower their maximum exclusion.
This an especially big deal for investors using "Section 1031" exchanges because they frequently shield their real estate gains on rental houses and condos by moving into them for a couple of years and converting previously taxable gains into non-taxable principal residential profits.
Just how popular has that technique been in recent years? "Extremely popular," says tax-free exchange intermediary George Foss in Littleton, New Hampshire. "Many of my clients have used it because it's a way to totally shield yourself" from capital gains taxation.
Congress's new limitation of the strategy is "terrible in my opinion," said Foss in a discussion with Realty Times last week. "It's just rotten."
An example of the dollars and cents impact of the change was provided by the Federation of Exchange Accommodators, a national trade group representing investors and intermediaries. Under the old law, an investor could exchange into a property that he or she then rents out for three years. Then the investor would move in and use the property as a principal residence for two years.
When the investor -- who is single -- sold the house for a $300,000 gain, $250,000 of that amount would be tax-free under the old law.
Under the new law, three fifths of that gain -- $180,000 out of the $300,000 -- would be taxable, while just $120,000 would be tax free.
That $130,000 difference is why exchange investors are so upset with Congress's latest tax increase.
Published: August 15, 2008
by Kenneth R. Harney
As of next January 1st, investors who exchange into rental or second home properties that they later convert into their personal homes no longer will be eligible for the full $250,000 to $500,000 tax-free exclusions now available on sales of principal residences.
Instead, they'll need to allocate their time of ownership between taxable investment or second home usage and non-taxable principal residential usage.
To qualify for tax-free exclusions they'll still need to use a property as their primary home for two out of the five years preceding any sale or exchange. But if any part of their total usage time after January 1st is what the new law calls "nonqualified" -- that is, investment, rental or second home use - then that will lower their maximum exclusion.
This an especially big deal for investors using "Section 1031" exchanges because they frequently shield their real estate gains on rental houses and condos by moving into them for a couple of years and converting previously taxable gains into non-taxable principal residential profits.
Just how popular has that technique been in recent years? "Extremely popular," says tax-free exchange intermediary George Foss in Littleton, New Hampshire. "Many of my clients have used it because it's a way to totally shield yourself" from capital gains taxation.
Congress's new limitation of the strategy is "terrible in my opinion," said Foss in a discussion with Realty Times last week. "It's just rotten."
An example of the dollars and cents impact of the change was provided by the Federation of Exchange Accommodators, a national trade group representing investors and intermediaries. Under the old law, an investor could exchange into a property that he or she then rents out for three years. Then the investor would move in and use the property as a principal residence for two years.
When the investor -- who is single -- sold the house for a $300,000 gain, $250,000 of that amount would be tax-free under the old law.
Under the new law, three fifths of that gain -- $180,000 out of the $300,000 -- would be taxable, while just $120,000 would be tax free.
That $130,000 difference is why exchange investors are so upset with Congress's latest tax increase.
Published: August 15, 2008
by Kenneth R. Harney
Wednesday, August 6, 2008
Has the Market Bottomed Out?
Commentary by Walt Baczkowski
RISMEDIA, August 5, 2008-At the top of the most frequently asked questions’ list is, “How will we know when the market has ‘bottomed out’ and we should buy a home?”
Historically, two major indicators that a market has bottomed out are: a decline in the number of listings and an increase in listing and sold prices. Obviously the key here is making your move at the right time-which would be right before these two items begin to manifest in the market.
Based on sales data provided by MLSs, it appears that we are beginning to realize a slight decline in listing volume. I say “appears” because with the factors affecting the market today-and the foreseeable future-this may be a seasonal issue or being caused by any number of things.
Tracking the listing volume over the next several months will provide additional information regarding this question. In regard to sold prices, this is more difficult. Real estate-owned property or property in some stage of the foreclosure process has been driving the price point for real estate for some time now.
With a significant volume of lending institution-owned property on the market selling at what historically, could be viewed as discounted prices, we do not anticipate seeing an increase in sales prices in the near future.
With sales showing increases compared to last year in most areas and declines in listing volume, it would appear that the market is slowly changing from the buyer’s market we have experienced for the past several years.
A large listing inventory remains, however, and problems in the job sector-coupled with rising fuel costs and the overall economic state in the country-will undoubtedly prolong the market conditions we are currently experiencing.
During this time, we are also seeing a plethora of innovations and new ideas coming forward. We all need to do something that differentiates us from our competition. New services and products have continued to be introduced over the past few years, only to fail shortly thereafter or morph into something entirely different.
However, a point to keep in mind is that self respect and common sense should remain at the top of everyone’s list. This has been-and remains to be-the basis of business success.
Walt Baczkowski is president of the Metropolitan Consolidated Association of REALTORS®.
To contact him, please e-mail walt@mcaronline.com.
Tuesday, August 5, 2008
GET MORE OUT OF YOUR MARKETING
From Realtor.com
In just seven months, real estate marketing coach Jennifer Cummings helped Christina Martinez, the highest-producing real estate agent in the country, boost her commissions to $7 million from $4 million.
Cummings says the secret to success is for agents to move from "advertising," or generating attention and promoting images or brands, to "marketing," which involves motivating someone to make a purchase. She recommends that agents discover the prospect's needs, build trust, and lead them to the point where they are ready to make a commitment.
Cummings also urges agents to market to a specific group, determine whether they will use the Internet or print as their medium of choice, and figure out what message they want to send, then identify the needs and wants of their target audience.
Additionally, practitioners should create a hook to grab the reader's attention, such as "Save up to $100,000 on Your Next Mortgage!," and ensure that their marketing materials are written in a conversational tone.
They should employ bullet points, headlines, and subheads to make their content easy to read and provide a way for prospects to contact them to receive special reports or checklists.
link to this story
http://www.realtor.org/RMODaily.nsf/pages/News2008080405?OpenDocument
In just seven months, real estate marketing coach Jennifer Cummings helped Christina Martinez, the highest-producing real estate agent in the country, boost her commissions to $7 million from $4 million.
Cummings says the secret to success is for agents to move from "advertising," or generating attention and promoting images or brands, to "marketing," which involves motivating someone to make a purchase. She recommends that agents discover the prospect's needs, build trust, and lead them to the point where they are ready to make a commitment.
Cummings also urges agents to market to a specific group, determine whether they will use the Internet or print as their medium of choice, and figure out what message they want to send, then identify the needs and wants of their target audience.
Additionally, practitioners should create a hook to grab the reader's attention, such as "Save up to $100,000 on Your Next Mortgage!," and ensure that their marketing materials are written in a conversational tone.
They should employ bullet points, headlines, and subheads to make their content easy to read and provide a way for prospects to contact them to receive special reports or checklists.
link to this story
http://www.realtor.org/RMODaily.nsf/pages/News2008080405?OpenDocument
Monday, August 4, 2008
TIME TO LOCK IN YOUR MORTGAGE RATE
Cnnmoney.com reports the following:
Since mortgage interest rates are on the rise, home buyers can save considerable cash by locking in a reasonable rate when they find one.
During the housing boom, interest rates were extremely low - generally between 5.5% and 6.5% - and very stable. So borrowers often didn't bother to ask lenders to lock in their rates regardless of market fluctuations. If one good interest rate deal disappeared, another one was generally right around the corner.
But today the mortgage market is very volatile, and rates are trending upwards. So losing out on a good deal may mean it's gone forever. If buyers see a bargain, say experts, they should pounce.
"If you hear of a rate that seems to be much better than the rest of market, get it in writing and lock it in," said Steve Habetz, a veteran mortgage broker in Connecticut.
We encourage all of our clients to lock in their rates immediately. The volatility in the market demands it. It's like rolling the dice or spinning the roulette wheel, but you are gambling with your home and how much interest you are paying over the term of your loan.
LOCK IN TODAY!!!!!!!!!!!
Since mortgage interest rates are on the rise, home buyers can save considerable cash by locking in a reasonable rate when they find one.
During the housing boom, interest rates were extremely low - generally between 5.5% and 6.5% - and very stable. So borrowers often didn't bother to ask lenders to lock in their rates regardless of market fluctuations. If one good interest rate deal disappeared, another one was generally right around the corner.
But today the mortgage market is very volatile, and rates are trending upwards. So losing out on a good deal may mean it's gone forever. If buyers see a bargain, say experts, they should pounce.
"If you hear of a rate that seems to be much better than the rest of market, get it in writing and lock it in," said Steve Habetz, a veteran mortgage broker in Connecticut.
We encourage all of our clients to lock in their rates immediately. The volatility in the market demands it. It's like rolling the dice or spinning the roulette wheel, but you are gambling with your home and how much interest you are paying over the term of your loan.
LOCK IN TODAY!!!!!!!!!!!
Friday, August 1, 2008
Selling: Oh, Thank You Very Much, Canada
Canadian buyers are bolstering business for real estate practitioners throughout the United States. Here's how you can target buyers to the north.
By G.M. Filisko | August 2008
“If it wasn’t for bad luck, I wouldn’t have no luck at all” goes the old blues standard. Change a few words, and you’d be singing the tune of a good many real estate salespeople today.
Not so for real estate pros in resort areas and along the northern United States border, where Canadian buyers are generating significant business today.
“Since the beginning of 2007, all of my buyers have been Canadian,” says Jacques Drouin, a native of Quebec who’s now a sales associate at Realty Executives of the Palm Beaches in Lake Worth, Fla.
Mike Kent, a sales associate at Windermere Real Estate in the resort area of Birch Bay, Wash., also has been buoyed by neighbors from the north. He says 80 percent of his buyer pool is Canadian. ‘The greatest phenomenon is three to four miles from the border,” he says. But it’s not limited to that geography. Kent also represents a large condo project in Bellingham, Wash., about 20 miles south of the Canadian border, where about 40 percent of his sales in late 2007 also were to Canadians.
The weak U.S. dollar means that the Canadian dollar, nicknamed the “loonie,” buys more in the United States. That, coupled with softening real estate prices, makes the U.S. market a bargain for Canadians. The loonie has risen roughly 60 percent against the U.S. dollar from its 2002 low. As of early June, 97 Canadian cents bought one U.S. dollar.
Snowbirds in the Sunbelt
Although interest has picked up in the current market, Canadians have long been investors in U.S. real estate, making up 11 percent of international buyers; that ranks them third behind buyers from Mexico (13 percent) and the United Kingdom (12 percent), according to the 2007 NAR Profile of International Home Buying Activity, the most recent study tracking international buyers.
Where are Canadians buying? In addition to near the Canadian border, “primarily the Sunbelt states,” says Keats. “Arizona is really high, Florida is really high, and California and Texas are, to a lesser extent.”
What are they buying? Diane Byrne, vice president of marketing at Cachet Homes in Scottsdale, Ariz., says most of the homes she’s sold to Canadians have been “lock and leave” lifestyle condos or townhomes in gated communities with such amenities as clubhouses and heated pools.
Kent is selling both single-family homes in a resort community and high-rise condo units.
Calling all Canadians
To target Canadian buyers, “you have to show you have knowledge of the Canadian market in terms of where Canadians are going to live and what their needs are with respect to immigration, taxes, and titling,” Keats says.
Also, be able to send them to attorneys who can explain and guide them through the U.S. property title process, which is different from what they’re accustomed to in Canada.
In addition, Keats recommends joining clubs catering to Canadians. “There are Canadian clubs in just about every state; you can get a list from the Canadian consulate,” he says. “Joining them helps in terms of advertising and doing workshops.”
By G.M. Filisko
From Realtor.org
http://www.realtor.org/rmosales_and_marketing/articles/2008/0808selling
By G.M. Filisko | August 2008
“If it wasn’t for bad luck, I wouldn’t have no luck at all” goes the old blues standard. Change a few words, and you’d be singing the tune of a good many real estate salespeople today.
Not so for real estate pros in resort areas and along the northern United States border, where Canadian buyers are generating significant business today.
“Since the beginning of 2007, all of my buyers have been Canadian,” says Jacques Drouin, a native of Quebec who’s now a sales associate at Realty Executives of the Palm Beaches in Lake Worth, Fla.
Mike Kent, a sales associate at Windermere Real Estate in the resort area of Birch Bay, Wash., also has been buoyed by neighbors from the north. He says 80 percent of his buyer pool is Canadian. ‘The greatest phenomenon is three to four miles from the border,” he says. But it’s not limited to that geography. Kent also represents a large condo project in Bellingham, Wash., about 20 miles south of the Canadian border, where about 40 percent of his sales in late 2007 also were to Canadians.
The weak U.S. dollar means that the Canadian dollar, nicknamed the “loonie,” buys more in the United States. That, coupled with softening real estate prices, makes the U.S. market a bargain for Canadians. The loonie has risen roughly 60 percent against the U.S. dollar from its 2002 low. As of early June, 97 Canadian cents bought one U.S. dollar.
Snowbirds in the Sunbelt
Although interest has picked up in the current market, Canadians have long been investors in U.S. real estate, making up 11 percent of international buyers; that ranks them third behind buyers from Mexico (13 percent) and the United Kingdom (12 percent), according to the 2007 NAR Profile of International Home Buying Activity, the most recent study tracking international buyers.
Where are Canadians buying? In addition to near the Canadian border, “primarily the Sunbelt states,” says Keats. “Arizona is really high, Florida is really high, and California and Texas are, to a lesser extent.”
What are they buying? Diane Byrne, vice president of marketing at Cachet Homes in Scottsdale, Ariz., says most of the homes she’s sold to Canadians have been “lock and leave” lifestyle condos or townhomes in gated communities with such amenities as clubhouses and heated pools.
Kent is selling both single-family homes in a resort community and high-rise condo units.
Calling all Canadians
To target Canadian buyers, “you have to show you have knowledge of the Canadian market in terms of where Canadians are going to live and what their needs are with respect to immigration, taxes, and titling,” Keats says.
Also, be able to send them to attorneys who can explain and guide them through the U.S. property title process, which is different from what they’re accustomed to in Canada.
In addition, Keats recommends joining clubs catering to Canadians. “There are Canadian clubs in just about every state; you can get a list from the Canadian consulate,” he says. “Joining them helps in terms of advertising and doing workshops.”
By G.M. Filisko
From Realtor.org
http://www.realtor.org/rmosales_and_marketing/articles/2008/0808selling
Get To Know the 4 Types of Buyers
You can improve your sales by understanding buyers as fitting into four distinct personality types, says Bayham Consulting LLC President Alan Bayham.
Once you identify their type, you can customize your presentations to meet their stylistic preferences.
1. Direct Type Buyers have Type A personalities, are direct and in a hurry, and have no qualms about interrupting a presentation. Practitioners would be wise to allow this buyer to do the talking and avoid giving too many details because he or she will make a decision quickly.
2. Interpersonal Buyers are pleasant, excitable, and more focused on relationship building, making it important for practitioners to socialize and create a positive atmosphere without imposing hard restrictions.
3. The Safety or Status Quo Type Buyer is calm, listens to what the practitioner has to say, and asks questions; and practitioners should keep in mind that it is crucial for them to present the information slowly, inquire about the buyer's needs, offer support, and take a gradual approach to obtaining commitment.
4. The Contemplative Buyer does not like small talk, wanting as many details as possible and conducting his or her own research beforehand. Practitioners should be careful not to encroach on this buyer's personal space, be thorough in providing information and documentation, and be willing to wait for the buyer to make a decision.
Once you identify their type, you can customize your presentations to meet their stylistic preferences.
1. Direct Type Buyers have Type A personalities, are direct and in a hurry, and have no qualms about interrupting a presentation. Practitioners would be wise to allow this buyer to do the talking and avoid giving too many details because he or she will make a decision quickly.
2. Interpersonal Buyers are pleasant, excitable, and more focused on relationship building, making it important for practitioners to socialize and create a positive atmosphere without imposing hard restrictions.
3. The Safety or Status Quo Type Buyer is calm, listens to what the practitioner has to say, and asks questions; and practitioners should keep in mind that it is crucial for them to present the information slowly, inquire about the buyer's needs, offer support, and take a gradual approach to obtaining commitment.
4. The Contemplative Buyer does not like small talk, wanting as many details as possible and conducting his or her own research beforehand. Practitioners should be careful not to encroach on this buyer's personal space, be thorough in providing information and documentation, and be willing to wait for the buyer to make a decision.
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