Bob Malone Awarded CRB Designation

February 17th, 2009

Bob Malone, sales manager of the Chili-Ogden branch of Nothnagle Realtors, earned the prestigious “Certified Real Estate Brokerage Manager” (CRB) Designation presented by the Council of Real Estate Brokerage Managers. The CRB is recognized industry-wide as the measure of success for real estate brokers and managers. REALTORS® earning the designation have completed a comprehensive program combining experience with management education.

The Council is a not-for-profit affiliate of the National Association of REALTORS® with almost 7,000 members in North America. Innovative and result-oriented programs, products and services are continually being developed to enhance the productivity and profitability of Council members.

Bob’s career has spanned over 25 years and achievements include serving as Chairman of the Greater Rochester Association of REALTORS® in 2000, and winning multiple Sales Master and Sales Master Gold awards for sales production. An active volunteer, Bob is involved with numerous community activities including Easter Seals, Hospice House, the REALTORS® Charitable Foundation, and his church. Married to his wife Beth for over 25 years, Bob is the proud father of two girls. In addition to the CRB, Bob also holds the Certified Residential Specialist (CRS) and Graduate REALTOR® Institute (GRI) designations.

Bob can be reached at (585) 349-6000.

Sensationalism and the Housing Bubble

February 16th, 2009

By Rich Levin, President of Rich Levin’s Success Corps

This makes me mad every time I see it. Either the National Association of Business Economists is full of people with no real business experience or fools. This is a headline from a major online Real Estate publication, “Economists See Credit Problems as Bigger Threat than Terrorism.” 

I know they were all alive just seven years ago when terrorism cost the lives of three thousand American citizens. That headline goes beyond sensationalism. It is rude and insensitive. 

The article goes on to say that one in three members of the NABE, “…Said the housing boom can be described as a ‘serious National bubble.’ Then later in the article three in four said they would “buy a house today if they intended to use it as their primary residence.” 

Would someone please tell these academic fools that housing is local in nature? While many major markets suffered and are suffering from the overzealousness of investors followed by the overzealousness of foolish subprime lenders, there are many markets that are healthy and many more that are suffering a softening but nothing close to a collapse. 

These gloom and doom headlines supported by a minority of questionable economist opinions feed the problem they are describing. While the facts support the opposite conclusion. Even the economists own research supports the opposite conclusion. 

In the same article, “Asked to look five years into the future, 42 percent expected US home prices to remain flat, 41 percent said prices would rise.” Then how did 34 percent of the same group call this a bubble that is fed by a threat bigger than terrorism.

Let’s give credit where it is due. “59 percent still say there is no national housing bubble, only significant local bubbles. Another 8 percent say there’s no bubble at all and that the market is functioning correctly.” 

Hooray for those groups. They got it right. There are some local bubbles where there were hundreds and thousands of development parcels and homes developed and built in anticipation of future sales and the sales that were feeding that demand was investor speculation (Boise and Sarasota to name two).

In late 2005 and through 2006 the investors realized that the boom was being fed by their own demand so withdrew. This left tremendous inventory in some cities or areas of cities.

Unfortunately, in 2006 this was immediately followed by the secondary market lenders realizing that they had allowed a foolish combination of underwriting standards for the previous five years or so. They were buying loans that allowed buyers to have both, little or no down payment and marginal credit. How this happened (and who should be prosecuted for it) is a mystery that will likely remain unsolved. 

The result was in some communities around the country, particularly where there were high priced homes and with less sophisticated buyers; many of these mortgages were used to purchase homes. That created additional pockets of excess inventory which stalled prices in those areas.

Now the majority of lenders loaning jumbo loans, over 417,000 have stopped funding these high-end loans for some period of time. This will further increase inventory and dampen prices in some areas. 

Notice the language, dampen prices in some areas. Most of the country is experiencing a normal buyer’s market that normally follows a long healthy seller’s market. 

The latter group of economists put it perfectly. The market is functioning correctly. In 1986 after two to three years of a soft buyer’s market not unlike what we are experiencing now (although it was driven by different causes) there was a long strong period of a healthy seller’s market with steady appreciation. 

There was a momentary softer buyer’s market around the Gulf War in 1991 (although not caused by it) followed by over a decade of a healthy buyers market that lasted until 2006. If we learn from history strong seller’s markets last longer than softer buyer’s markets. 

So again the economists got this right. The same article said 58% of the economists predicted a ‘meaningful’ recovery in U.S. housing markets before the second half of 2008 or in the second half of 2008. The majority of the other 42% predicted the recovery in 2009. 

This is completely consistent with history. This two or three years of soft buyer’s market with slightly flattening prices will likely be followed by five or more years of a healthy seller’s market with equally healthy price appreciation. 

REALTORs® all learned in their first Real Estate class that the market is driven by supply and demand. So as long as there is an increasing population of people with reasonable or better incomes, the demand will keep the market healthy. 

Add to that the fact that the Federal government repeatedly states that they realize that the Real Estate market is critical to the health of the economy and they will do whatever is necessary to keep mortgage money available. 

It all adds up to a principal residence continuing to be the safest and smartest investment for a person living in this fabulous nation. (Just be careful of areas that have experienced rapid appreciation for more than twenty-four months. There could be a windfall or just a fall looming.) 

If you are associated with Real Estate, please separate the sensationalism from the truth. If you are in most communities in this country everything, is pretty normal.  Prices are appreciating a little slower but still appreciating. Houses are on the market longer. Buyers are fussier. Yes, it is tougher to sell Real Estate. But you still have one of the best jobs in the world with more personal freedom and opportunity for success than any other business person or professional on earth. 

If you are in one of those tougher markets, my heart is with you. You do have an uphill battle for another twelve to twenty four months. You have my strongest wish that you can survive and succeed through this.

I love this business for what it provides to our society, the people in it, and the strong bright professionals that make me proud to be a part of it.

Rich Levin is a nationally known coach, educator and speaker. Rich has been in the Real Estate Business for over 30 years with the last 15 dedicated to coaching and speaking. His specialty is working with productive Real Estate Agents and Brokers taking them to their highest levels of production and performance in their business and in their lives. He is a regular contributor to various Real Estate publications and has spoken at events from small offices to NAR convention as well as coaching top Agents from across the country. He is CPBA and e-PRO certified.

Contact him at 585-244-2700 or visit http://www.RichLevin.com. Ask Rich a question at http://www.AskCoachRichLevin.com

How to Have your Best Year in Real Estate

February 2nd, 2009

For many this past year has been difficult. Many Agents’ have left the Real Estate Business and others are struggling and probably thinking of leaving this wonderful business. But some Agent’s are having their best year ever. How do you ask? The answer is that these Agents simply shifted their state of mind. You may think that this sounds hokey but it is true.  It is grounded in medicine, how your body works, your psychology and how your mind works is critical to your success. 

By regularly applying the following simple process you will shift from concern and procrastination to focused, positive accomplishment. 

There are three basic ways to shift your state of mind.

First, do ten to twenty jumping jacks to get your blood flowing. 

Second, as you do the ten to twenty jumping jacks I want you to say the following, “Today is a great day for my business.”

And third focus your thinking and focus your mind on what could happen that day to make it a great day.

Think about this. You are sitting at your desk.  You are bored, or tired, or feeling lazy.  Your shoulders are slumped your mind is focusing on some aspect of your business that reinforces your negative mood.

Then, your mobile phone rings and you can’t exactly remember where you put it so you run around to look for it.  You find it, slightly out of breath. 

The person calling is a past Client who tells you that he/she is getting married and wants you to list both houses and sell them a much bigger one.  The new spouse is independently wealthy and not only are they going to buy a big house from you but they are willing to be completely cooperative on price because they realize the nature of the market.  Plus they want to invite you to the wedding and introduce you to all the people in the spouses sphere as their REALTOR®.

After that call your state changes from a mild depression to focused, energetic and enthusiastic.  It happened in an instant.  And it happens because three things changed.  First your physiology changed as you ran looking for your phone, then your focus changed as you got the great news.  Then as you understood the nature of the call the meaning of the news kept expanding and getting better in your mind.

You don’t need this example to really happen although it would be nice, you can change your state of mind by simply doing the above three steps.

Now that you have started to shift your state of mind you need to put steps into place to reach the goals you set.

Create a strategic business plan. What I mean by that is create a plan that is both realistic but also includes the steps to accomplish the goals that you set in your plan.

You accomplish this by first committing to spend thirty minutes a day for a maximum of fifteen days on your business plan. This creates the habit. After all, it is the health and the success of your business we are talking about here. 

As you start your day powerfully day after day this leads to more successful days, as those kinds of focused days, those days full of accomplishment, stack up day after day your business rises to its next level. 

Begin your habit of taking five minutes a day before you open your e-mail each day, what I call five to thrive. Then take thirty minutes once per week before you open your e-mail to add focus power and leverage to your day and your week.

In those five minutes before you open your e-mail you are going to do three things.

1.     Record new appointments, sales and listings that occurred in the last day … and as you do … look at your numbers for the week, the month and the year.

2.     Consider what your priority project is for the week and where you are in relationship to its accomplishment.

3.     Choose the action you will take that day to reach your appointment goal for the week and to move your project for the week to completion.

Then once a week take a half hour instead of five minutes.  Choose one day of the week.  On that half hour day, in addition to doing the previous three things; you will also do the following three things.

1.     Choose a priority project that would be of greatest benefit to you.  Or look at what project or system you are working on and your progress over the past week.

2.     Choose what you want to accomplish on that project or system for the next week. 

3.     Schedule time in your calendar to do the things toward the completion of that project that will move that project forward or get it complete.

Never give up on this habit.  If you do nothing on the project or haven’t even chosen a project, never give up.  Just keep that weekly appointment with yourself.  I promise you that within a week or two you will both have a project chosen and you’ll take action toward it.

I just mentioned a mantra of mine; Five to Thrive.

F-Focus
I- Insight
V- Vitality
E- enthusiasm

The five minutes a day are going to give you focus all day, insight into your business that you have never had before, vitality which means energy for the day and enthusiasm for your business and toward the people you encounter throughout the day.

Now, this is not for everyone.  Some of you enjoy your lousy attitudes so much that you don’t want to change it.  You are so certain that your days can’t be that good simply by taking responsibility for your state of being.  And you may have other reasons you discount these ideas. 

For those of you committed to having a great business and a great life, put what I have written here into practice starting today. 

You have my sincerest wish for a successful year. 

Rich Levin is a coach and speaker whose focus is teaching Agents to understand and control their business. Through that understanding achieve exceptional happiness and wealth in their life. Take control of your business, register for a 2009 Strategy Session. Rich is President of Rich Levin’s Success Corps Inc.  Contact him at 585-244-2700 or rich@richlevin.com.

Nothnagle Recognizes Marcia Glenn, #1 Agent in 2008

February 2nd, 2009

Nothnagle Realtors held its annual awards event on January 30, 2009, at the Doubletree Hotel. Marcia Glenn, Associate Broker with the Penfield branch, was recognized as the company’s top sales agent for 2008.

Licensed in 1992, Marcia has been affiliated with Nothnagle Realtors her entire real estate career. She has been in the “Top 30” since 1994 and has been the #1 agent in the Penfield branch for several consecutive years.

“Marcia’s hard work and dedication have placed her in the top 1% of all Realtors in the Rochester region,” said Armand D’Alfonso, President and CEO of Nothnagle Realtors. “Marcia is a dedicated professional and takes great pride in providing exceptional service to all of her clients. Her impeccable attention to detail and unique marketing strategies consistently exceed people’s expectations time and time again.”

“Marcia is very dynamic, passionate and fun to be with. She is a loyal friend and a proud mother and grandmother. In business, her clients are her top priority and she frequently goes above and beyond the duties of a Realtor. Marcia genuinely cares about each and every person she works with and takes great pleasure in helping them achieve their dreams. It is an honor to work with someone so determined, knowledgeable and professional,” said Marcia’s business partner and Nothnagle Realtors Sales Associate Christie Nasello.

Marcia serves all of Monroe County and the surrounding areas and has over $150 million in career sales. Since 1994, Marcia has been the recipient of numerous awards, including Sales Master, Sales Master Gold, Sales Master Platinum and the Zenith Award. She is an accredited Domestic and International Relocation Specialist. Marcia is a lifelong resident of Rochester and she strongly believes in the strength of our community and all that it has to offer. Her expertise, passion and ability to get the job done deliver a truly extraordinary experience to all of her clients.

Contact Marcia Glenn and The Glenn Advantage Team at 248-1064.

Home Sales in December

January 19th, 2009

This past month there was a 0.6 percent increase in monthly closings and a 5 percent increase in homes listed for sale as compared to December of 2007 according to statistics released by the Genesee Region Real Estate Information Service (GENRIS), the information subsidiary of GRAR. The median sale price for our area is down 0.4 percent at $117,000 year-to-date. 

Locally, Monroe County finished 2008 down 12.8 percent in number of closings year-to-date compared to 2007 while the City of Rochester ended ’08 down 14.9 percent. 

The surrounding counties of the Greater Rochester MSA, specifically Yates County showed positive activity all throughout 2008 ending with a 3.2 percent increase in monthly closings year to-date. 

With holidays and the weather as it is this time of year, a seasonal slowdown in the market is to be expected. However, we urge residents of our region to be optimistic about our market – while we may not experience the housing booms that have occurred elsewhere, we are also fortunate that we do not experience the dramatic decreases in sales either, as other parts of the country currently are. Interest rates are historically low and real estate is local.

CONTACT:

Chuck Hilbert, President Greater Rochester Association of REALTORS®, Inc.

930 East Avenue, Rochester, NY 14607 • (585) 732-6181

Nothnagle Associates Honored at WCR Holiday Event

January 9th, 2009

Bob Maves was named “Mentor of the Year” and Patti Kesselring was honored as “Humanitarian of the Year” by the Rochester Chapter of the Women’s Council of REALTORS®. The awards were distributed at the WCR annual holiday event held last month.

Bob Maves, Associate Broker and Branch Manager of Nothnagle’s Pittsford office, was nominated for his coaching style and commitment to the success of every agent in his office. He also has served in the past year in a leadership capacity at the Greater Rochester Association of REALTORS®, on their Board of Directors and as Chairman of the Genesee Region Real Estate Information Service, Inc. (GENRIS), which manages the local Multiple Listing Service (MLS).

Patti Kesselring, an Associate Broker with the Pittsford branch of Nothnagle Realtors, won “Humanitarian of the Year” for her dedication and commitment to numerous organizations and causes within our community over the years. In 2008, Patti headed up a team for the American Cancer Society Walk and a fundraiser for the Al Sigl Center, in addition to activities to raise awareness and funds for breast cancer research.

Smart Real Estate Agents Can Survive a Tough Market

January 7th, 2009

By Rich Levin

The market is tough. There is no reason to sugar coat it. Many Agents are experiencing challenges for the first time in their real estate career. Clients with strong credit are being challenged by the lenders. Homeowners are not putting homes on the market. Buyers are submitting low ball offers. Foreclosure and short sales are happening in record numbers. Buyers are negotiating harder. There are obstacles at all stages of the transaction. On top of all these issues people are frozen waiting to see what will happen with their jobs, the economic bail out, Wall Street, and the Madoff scandal just adds to the uncertainty.

An Agent Client and I looked at her numbers for the year and we realized that out of forty three deals she had had eleven deals die. The year before in 2007 she had four out of fifty die; the year before that she had forty nine, with no dead deals. Unfortunately, this is not uncommon. Fortunately, it is not all gloom and doom.

The truth is that many Agents will not survive this era. But those that know how to or learn how to get through it will not only survive they will thrive in the healthy market that will follow. My Clients and many Agents are utilizing creative marketing and building their skills with their business practices to succeed. Here are some examples.

1. Freddie Mac has recently loosened their policy for the amount of short sales they will accept and I am sure many other lenders will follow suit. This will open up a stream of homes on the market. Yes they will be more difficult sales. And yes the Agents that learn to sell them will be more successful.

2. Investment Real Estate is extremely hot right now. The sharpest investors know that this is the best time to buy and they are out there looking for desperate Sellers. The sharpest Agents are honing their skills in finding and working with these savvy investors. An Agent Client in Southern California recently had an investor buy a 4-plex rental property for $84,000. That’s right I said $84,000 in southern California. The deals are out there. Real Estate continues to be the most safe, stable investment with the highest returns over the medium and long term. Income property investors have not only been unhurt in the present financial debacle, most are thriving.

3. Literally, there has not been a better time for first time home buyers in thirty years. The $7,500 tax credit now available, low interest rates, low prices, and lots of inventory to choose from; is a shopper’s dream. Agent Clients who have been fussy in the past about working in higher price ranges are exploiting the opportunity of first time Buyers. One said to me, it’s the easiest work she has done. She is strong, confident and bold about their opportunity.

4. Get to Know your Lenders. Instead of sending your Clients to the big lending houses, get to know your local banks. Create a relationship with the people there. They have portfolio money. They offer some of the best terms available and they are eager to lend.

5. Conventional 5% down mortgages with Seller Concessions are widely available. Ten or fifteen years ago it was unheard of for people to buy a home with no money down. You can easily thrive on what is available. Yes there may be additional paperwork, glitches and delays. That’s why you get paid so much. The not so secret, secret is simply to prepare your Buyers for this extra paperwork and the glitches and delays. Then when it happens they are ready for it and grateful to you for the heads up.

Loans are still being funded so search them out and take advantage.

6. In some markets, short sales and foreclosures make up the majority of the sales. The Agents embracing the need to do what it takes to deal with these more difficult transactions are surviving. While those moaning, groaning and fighting over the more difficult transactions are going broke. Find Brokers that are dealing with these properties and align your self with them.

7. Be an expert. Right now people are afraid of Real Estate because of all the news reports. This is the time to effectively communicate to your spheres of influence and past clients what is really happening in the market. I suggest you send out a postcard this week with a headline that says “Find the Golden Opportunities in this Crisis.” Put on the mailing that this is a great time to buy. Describe some of the opportunities I have mentioned in this article. Inform your sphere that mortgage money is readily available. Be smart and find lenders to underwrite these postcards. When you are the voice of opportunity and optimism in this time of uncertainty you will both succeed through it and boom as the healthier market ensues.

8. Move up Buyers can buy property that was previously out of their reach. In every market there are modest price ranges that are pretty healthy and higher end price ranges that are pretty soft. Buyers are getting top dollar for the modest price ranges and truly amazing buys on property that they couldn’t afford two years ago. Find those price ranges in your market. Look for the modest home owners with stable investments and employment. You will make sales that will even surprise you.

9. Watch your numbers. Know what your goals are. Know how many appointments per week you need to reach your goals. Know your monthly open sales and listing goals. Compare your sales and listing results with previous years and against your goals. Smart, successful business people know to watch their numbers more carefully in a more challenging market.

10. Cut expenses. Yes I know this is self defeating as I am a Real Estate coach and coaching is an expense. More Agents are hiring me than ever before because of proven results. That’s the key. Cut expenses that don’t show proven results. Cut personal and professional expenses to a minimum. Your family will understand this is a temporary situation.

Most importantly, now is the time to be positive, to be optimistic. You have a choice; you can dwell on the negative or search for the positive. You control your attitude at every moment. Learn to snap yourself into a peak state. Attitude is the only way you can survive this tough market with joy. The smart and resourceful Real Estate Agent will make it through. Find the opportunities. You have my sincerest wish for a successful year.

Rich Levin is a coach and speaker whose focus is teaching Agents to understand and control their business. Through that understanding achieve exceptional happiness and wealth in their life. Take control of your business, register for a free 2009 Strategy Session. Rich is President of Rich Levin’s Success Corps Inc.
Contact him at 585-244-2700 or rich@richlevin.com

Introducing The 2009 GRAR Board Officers

January 6th, 2009

Chuck Hilbert, President

To President Chuck Hilbert, the Greater Rochester Association of REALTORS® (GRAR) plays an important role not only in the success of its members, but also for the work it does on behalf of this community.

“GRAR and its members are the voice of real estate for the area,” Chuck says. “In a time when municipalities are adding taxes and raising fees to close budget gaps, GRAR’s members are fighting to protect the issues of home ownership and personal property rights,” he adds, “Our members are also strong advocates for Rochester not only through advocacy but also by way of volunteerism and community involvement.”

A Rochester native, Chuck began his 22 years in real estate as part of a family firm — Hilbert Realty Inc. — and went on to run its Webster office.  In November 2008, Hilbert Realty merged both of its offices into Keller Williams Realty Greater Rochester.  Chuck is the Operating Principle/Broker in charge of this office.

Prior to being elected as GRAR’s President, Chuck was on the board of directors for six years. He has been very active on many committees at the Association.  He is also very active with the New York State Association of REALTORS® (NYSAR) and is on its Board of Directors as well as on the Board of Directors of the Delegate Body of the National Association of REALTORS® (NAR).

Chuck has earned the GRAR Sales Master Gold and Platinum awards, and the 2003 GRAR REALTOR-Associate® of the Year.  In 2005 REALTOR® Magazine, a national publication for the real estate industry did a feature article on Chuck and his wife Tiffany and two children CJ and Rachel.

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Carolyn Stiffler, President-Elect

Carolyn Stiffler, ABR, e-Pro, SRES, has served on the GRAR Board of Directors since 2004. Becoming a Real Estate professional in 1989, Carolyn has owned and operated her office – Carolyn Stiffler Realty – in Greece serving her clients with dedication and expertise since 1999.

In 2006, Carolyn was named the Business Person of the Year by the Greece Chamber of Commerce.

Citing her as a success story and an example for others, in June 2006 State Senator Joe Robach named Stiffler a 2006 New York State Senate “Woman of Distinction.”

“Carolyn is one of those success stories that we can proudly share with our daughters, sisters, and neighbors and who will serve as an example for achievement and excellence for our entire community,” stated Senator Robach. “Her name now joins that of other women such as Lucille Ball and Eleanor Roosevelt, whose accomplishments, sacrifices and deeds on behalf of others are deserving of special honor,” he added.

Carolyn was also the recipient of the Women’s Council of REALTORS® – Rochester Chapter’s first ever “Businesswoman of the Year” Award in 2007. Presently Carolyn is part of the New York State Association of REALTORS® “Leadership Academy” and is in training for a future leadership role at the state level. She currently serves as a NYSAR Board of Director and will sit on several committees for 2009.

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Steve Babbitt, Treasurer

Licensed since 1979, Steve is an associate broker with RE/MAX Realty Group. With 30 years experience in real estate, Steve Babbitt has demonstrated a longstanding commitment to the real estate industry and holds numerous prestigious designations: Certified Residential Specialists (CRS), Internet Specialist (e-PRO), Graduate Realtors Institute (GRI), Transnational Referral Certified (TRC), and most recently Certified International Property Specialist (CIPS). Steve has earned the GRAR Salesmaster Gold and Salesmaster Awards and has sold over 1,500 homes in his career.

Prior to being elected Treasurer, Steve was on the Greater Rochester Association of REALTORS® Board of Directors for two years. He is also currently in the middle of serving a 3-year term of Director for the New York State Association of REALTORS®. As Certified Residential Specialist (CRS), Steve was president of the CRS Chapter of New York State for 2004-05 and last year was on the Chapter Policy Review Board for the National Council of Residential Specialists.

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Rob Reimer, Secretary

Licensed in 1983, Rob is an associate broker and has been a Senior Manager for the last 15 of his 25 years with Nothnagle REALTORS®.  Over his career, Rob has demonstrated a longstanding commitment to GRAR serving on numerous committees including Communications, Member Services and Grievance to name a few.

Rob is a Certified Real Estate Exchange Advisor and has been a member of the Appraisal Institute since 1986.  Aside from having his Certified Buyer Representative (CBR) designation, Rob has the recipient of many real estate awards: Nothnagle “TOP 25”, Gold Circle New Home Award, and Nothnagle Home Securities “TOP 30” Award.

As the Board Secretary, Rob’s responsibilities include monitoring the accuracy and timely distribution of meeting minutes; presiding at meetings in the absence of the President and President-Elect, as well as, serves as a voting member of the REALTORS® Charitable Foundation (RCF) Board of Directors. \

Realtors Push for 4.5% Interest Rate Buy-Down

December 19th, 2008

RISMEDIA—A federal mortgage interest buy-down program would help spark the housing market, the National Association of Realtors® said in a letter sent Monday to James B. Lockhart, chairman of the Oversight Board of the Federal Housing Finance Agency. NAR seeks a 4.5% mortgage interest rate buy-down program financed through the U.S. Treasury Department’s Troubled Asset Relief Program.

In the letter to FHFA, NAR shared three potential implementation procedures for a federal buy-down plan:

- TARP would fund the payment of points at the individual level.

- The Federal Home Loan Banks would raise funds by selling below-market-rate bonds to the Treasury Department for them to make the 4.5% interest rates available to lenders.

- Fannie Mae and Freddie Mac would purchase mortgages at the 4.5% interest rate but pay lenders the market rate.

“The buy-down program would complement other initiatives and help stabilize, stimulate and revitalize the housing market,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “We must address the foreclosure crisis and increase housing demand. Lower interest rates and foreclosure mitigation are two sides of the same coin. Together they represent the key ingredients to stabilizing the housing market and preserving communities and homeownership.”

NAR has calculated that a 1 percentage-point decrease in mortgage rates would result in an additional 500,000 home sales.

In addition to suggesting that TARP assets be used to buy-down mortgage interest rates, NAR has recommended other principles that would help create long-term stability by ensuring that safe and affordable mortgages are available throughout the nation:

- The higher loan limits passed in the economic stimulus bill earlier this year should be made permanent.

- The federal government should ensure sufficient capital to support mortgage lending in every type of market.

- The temporary $7,500 tax credit for first-time home buyers should be extended to all home buyers and the repayment requirement eliminated.

Courtesy of RISMedia.com  

Real Estate Misconceptions Debunked

December 16th, 2008

RISMEDIA—Buying and selling residential real estate can be complex and confusing, particularly amid a process rife with misconception. To dispel common real estate myths, Robert Jenson, CEO of The Jenson Group at RE/MAX CENTRAL, offers some “truths” to help real estate consumers better navigate the home buying and selling process:

MYTH: All Realtors are created equal

TRUTH: Real estate agents vary widely in terms of experience, skill, ingenuity, accessibility and ability to produce results quickly and smoothly, among other key factors. Interview at least 3 agents, and come prepared with a list of questions you plan to ask. What is their track record? How do they market listings? Do they have a team to help show your home or does the responsibility fall on one particular agent? Due diligence is key to finding a representative prepared to work hard and who will be available to answer your questions along the way.

MYTH: Home inspections should wait until an offer has been presented

TRUTH: Even before listing a home, sellers should hire professionals to inspect the property including the roof, pool, and other structural elements, as well as for termites and other important buyer considerations. Make all repairs before you list the house on the market. Today’s buyer is discriminating and has many choices – don’t give them a reason to have concerns. A complete list of the completed inspections and repairs should be made available to serious buyers, which will go a long way in expediting the process at large.

MYTH: All negotiations start with a buyer submitting an offer

TRUTH: Sellers do have ways to kick start a negotiation, such as a “Reverse Offer.” Consider that one buyer who has been back for a second or possible third look, but hasn’t pulled the trigger. Make them an offer! Yes you, as the seller, should put something in writing and submit it to the buyer’s agent. This will create an opportunity for the buyer’s agent to sit down with his or her client and potentially help close the deal.

MYTH: Only home sellers – not buyers – need a real estate agent

TRUTH: Purchasing a home could be the most important and complex financial transaction you engage in, and going it alone is risky. Indeed, a buyer’s agent can save you time, hassle and thousands of dollars. Take time and care when selecting a real estate buyer’s agent – find someone you can trust, and that you have a good rapport with.

MYTH: Buyers should wait to secure loan approval until they’ve found a home they want to buy

TRUTH: Many buyers want to find the “perfect” home before having their credit pulled, which can backfire when an offer is on the table and time is of the essence. It’s wise to get pre-approved for a loan even before you view your first home. Your credit report may contain inaccurate information that you were not aware of, which can be a time consuming process to rectify. Or, you might not like what loan program you qualify for, or you might qualify for a higher loan value than you thought. Ultimately, you will need a pre-approval letter with your offer, so do yourself a favor and do this in advance. It’s free, after all.

MYTH: There is no real benefit to “shopping” for a mortgage among multiple lenders

TRUTH: A difference of even half a percentage point can mean a considerable savings over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8% vs. 7.5% is about $35 per month. Over 30 years, that’s $12,600. Be a smart consumer and comparison shop for the most favorable mortgage rates and terms.

MYTH: All real estate agents charge the same commission percentage

TRUTH: Not all agents – and agent packages – are created equal. From full-service agents to discount agencies, make sure you know the type of professional you are hiring and what EXACTLY they are going to do to sell your home. An agent that can professionally market your home above and beyond the MLS listing will increase your exposure within the marketplace, which will lead to a higher selling price and less days on the market. Will your agent incur costs to give your home that visibility? Find out, so that you may take everything into consideration when establishing the commission percent. Despite what an agent might say otherwise, commissions are always 100% negotiable.

Courtesy of RISMedia.com