NAR 2010 Homebuyer Survey Results

NAR conducted their annual Homebuyer survey and the results for 2010 were just released. If you haven’t had a chance yet to review, below is an overview of some of the key findings.

- In 2010, first-time homebuyers constituted 50% of the market. There are a number of factors to explain this significant increase, one of which is that first-time buyers don’t have to sell a home before they can buy. Moreover, prices have been dropping while interest rates remain low by historical standards. Especially, government policies such as tax credits have played a major role.

- Only 4% of buyers purchased a home that had been foreclosed or that was in the process of foreclosure. That is actually lower than a couple of years ago. In 2010 a full 39 % of buyers did not even consider buying a home in foreclosure. Of those who did consider making such a purchase, but did not ultimately do so, the primary reason (26%) was that they simply could not find a home that was right for them. Nineteen percent did not purchase a foreclosure home because the process was too difficult or complex. Another 17% did not buy because the house was in poor condition.

- This year 74% of buyers said that they used the internet frequently during the search process, about the same as 76% last year. In 2003 that number was 42%.

- 36% of buyers went to the internet as the first step in the home search process. 19% contacted a real estate agent first, and 7% began by driving through neighborhoods looking for homes for sale.

- Buyers use multiple sources of information in the process of looking for a home. Far and away the most used sources are the internet (89%), real estate agents (88%) and yard signs (57%).

- Multiple Listing Service (MLS) websites were the primary source of information for buyers who used the internet in their search process. 59% of those buyers went to MLS sites. 45% used Realtor®.com, 43% went to real estate company websites, and 42% went to sites hosted by individual agents. Aggregators such as Zillow, Homegain, and Yahoo were visited by 41% of buyers.

- In 2001 only 8% of buyers found their home on the internet. In 2010 37% of buyers learned about their home through the internet.

- In 2001, a yard sign was the third most likely source of information leading to the home that was purchased (15%). This year it is still the third leading source at 11%. Print media may not be dead, but it has shrunk to insignificance in this arena. In 2001, 7% found the home they purchased through a newspaper ad; in 2010 it was 2%. Fewer than 1% found their home through a home book or magazine.

Top 10 Real Estate Marketing Tools

1. Relationships- Go The Extra Mile!
2. 95% of your time should be spent getting the listing and 5% finding a buyer; Telemarketing, Mail, Door Knocking and GET THE PHONE NUMBER!
3. Keep in touch with People
4. Internet leads-track where your leads come from
5. Get more by saying less on your marketing materials
6. Quality of service and office consistency
7. Know your business and the business will find you
8. Investors...Do you know anyone that wants to make a 30% return on their investment? To learn more about this, go to www.cias.com
9. Deal of the week- Offer a deal of the week, let one of your listings stand out for the week.
10. The Million Dollar Real Estate Agent-READ IT!

Top Panel of Real Estate Agents (Kenny Klaus, Russell Shaw, Shavani Dallas and Brett Tanner).

Greening Your REO and Short Sale Properties

Cheryl King, Associate Broker, Keller Williams Realty East Valley/KW Commercial
www.hybridhomeliving.com

It is that time of year when we prepare our business plans for the coming year. We plan out how many transactions we need to close to reach our financial goals, set our budgets for online services and marketing and plan our 33 and 8x8 touch campaigns.

With the growing number of listed properties being REO and short sales, many of us will be focused on buyers or adding buyer’s specialists to our teams. These can be challenging transactions, however the distressed inventory is actually an advantage if you know how to “Green” the properties. Over the next few months, I will share with you how integrating Green into your business (residential and commercial) will grow your business and your bottom line. First, since “Green” has many different meanings, we need a common definition. When I refer to “Green” I am referring to a high performance home – one that saves energy, lowers monthly utility costs and increases the value of a home.

Tip #1: Rebates and tax incentives: A lender recently told me that 25% of the REO homes in the Arizona market fail to close because the homes do not have an AC unit or the existing one needs to be replaced and the buyer doesn’t have the funds to purchase a new AC. If the home is in an APS service area, APS will subsidize the cost of the new AC (www.aps.com) and there are federal tax credits as well (SRP will have a program similar to the APS program). Truly win/win: the buyer gets their home, a utility company rebate check after closing (some contractors will even advance the rebate), lower monthly electric bills and a federal tax credit. You close a sale and make a client for life. Next month, I will provide more information about how your buyer can benefit from energy efficient loans in addition to the utility company rebates and federal tax credits. Many tax credits expire on 12/31 so suggest that your clients contact their tax accountant today!

If you have a question you would like answered, please send me an email at cking@hybridhomeliving.com or call me at 480.747.8339. Also, watch our events page for the next Greening Your REO and Short Sale class.

As you brush up on your buyer mastery skills for 2001, add a touch of Green!

REAL ESTATE SALES TAX TO GO INTO EFFECT 2013 (Part of HC Bill)

Under the new health care bill all real estate transactions will be subject to a 3.8% Sales Tax. The bulk of these new taxes don't kick in until 2013. That's a $3,800 tax on a $100,000 home. If you sell your $400,000 home, there will be a $15,200 tax. This bill will most negatively affect the retiring generation who often downsize their homes. (http://www.businessweek.com/news/2010-03-18/health-bill-said-to-add-3-8-medicare-tax-on-unearned-income.html)

"Any tax on the Real Estate industry right now or in the next 3-5 years will not only hurt an already decimated market, but will also deter even more people from trying to purchase or sell a home. It is just bad business." Said a Fidelity National Title representative, Maricopa County.

www.fntarizona.com
480-214-450
info-fntarizona@fnf.com

The key to getting better results in the Arizona Market is the Right Realtor

We have had four straight months of Record Short Sale closings in Arizona, 62% of all Pending sales are now distressed and the days on market have gone from 157 days, to 130for short sale closings.

Our Lender partners, Wells Fargo, Bank of America and GMAC have all improved dramatically on their Short Sale process, communication and making quicker decisions. We are going through some transition, with all Lenders no longer postponing as many trustee Sales and in turn sending the extended pipeline properties to foreclosure to get them pushed through.

There is ONE more big thing, that needs to happen to really help all of us to push through the Distressed Property challenge that faces Arizona, we need to engage our very BEST Real Estate Practitioner’s, the very best REALTORS in the state, in the process. I can tell you as someone who closes over 1500 transactions a month in our state, it is clear the Lenders that have used our assistance to put the best REALTORS in our state into both their Short Sale and REO programs, have clearly had more closings, with less hassles and in the end the Consumer and the Lender is the big winner!!!!

The key to getting a better result, for the Consumer, the Bank and in turn our Real Estate Market is getting the right Realtor, our stats show this fact clearly, feel free to reach out to me, if you want access into our Distressed Property Division, which highlights our very best Realtor Partners.

Steve de Laveaga
Senior Vice President of Sales and Marketing
Fidelity Natioanl Title Maricopa County
steve.delaveaga@fnf.com
480-214-4500

Make More on the Listings You Don’t Take Than the Ones You Do!

What does that mean? And why is the concept of making money on the listings you don't take even possible?

As discussed in the "Thriving in a Down Market" event we sponsored on October, 5th, it was discussed why doing a seller consultation before taking the listing will actually make you more money than just taking and working as many listings as you can. The reason is Time is money. Here are some suggestions on how to ensure your seller is "ready for business":

1. Talk to you seller to make sure they have all the right paper work together.
2. Make sure the paperwork is complete
3. Make sure the seller has met with an attorney,
4. Qualifying the seller, is there a hardship?
5. Not taking a listing 45-60 days before foreclosure.
6. What type of loan does the seller have?
7. Who is the lender?
8. Are they considering bankruptcy?
9. Is there Mortgage Insurance?
10. Will the seller have any money to contribute to closing?

Jean Clements
Marketing Director Fidelity National Title
jean.clements@fnf.com

Subject Ideas for Social Media and Email Campaigns

Day 0- Set expectations of what what you will be sending and communicating. Call it "Fidelity Finds" for example.

Day 3- Consumption. “Did you check out my point 3?” Make sure they are reading email.

Day 7- New Content- Maybe a video, subtle tone, "Folks found this cool…If you’re interested in…"

Day 10- Consumption- Cause and Effect. Did you see what happened in the industry..when blank happened?

Day 13- Building social proof. Testimonials, wisdom of crowds. Hey I got an email from Joe, Bob and Sue who jumped on this idea. I would love to help you out too. Email me with your burning question.

Day 17- Push social feedback

Day 21- These questions are objection crushers. All the reports say you should not buy or sell now, so should I? Phrase it in question format.

Weekly posts after that.


Michelle Manning
480-518-7005
michelle.manning@fnf.com
www.michellemanningfnt.com

Tips for Homeowners Facing Foreclosure

1. How do I find out if I qualify for a loan modification? go to www.makinghomeaffordable.gove. Follow the instructions to pre-qualify for a loan modification, which will take you to your lender's website where you can complete the necessary forms.
2. What are my options if Loan Modification does not work? Contact your lender from your mortgage statement and ask them to explain your options.
3. Research, Research, Research. Any major life decision needs to be taken seriously. Do your homework, talk to referrals and talk to several experts.
4.Avoid programs that are questionable. If something sounds too good to be true, it probably is.
5. Contact a skilled tax preparer to look into the tax consequences of a short sale versus foreclosure. Everyone's scenario is different, so make sure to talk to a tax specialist that knows the laws and is best equipped to assess your situation.
6. If you are seriously considering bankruptcy la, the requirements have tightened in recent years and consulting an attorney that knows bankruptcy law is important for you to consult.
7.Once you have followed these steps, you may find that selling your home in a short sale, where your lender approves a sale of your home for less than the debt, is your best alternative for you and your family.
8. Finding the right agent, with the necessary short sale skill sets, training and most importantly the right moral compass is the key to the success of the short sale.
9. Think of this as a marathon. You need good training to get to the finish line. Take care of yourself, eat well, sleep, pace yourself so you don't lose energy.
10. Don't let time run out! Reach out for help before it is too late! The earlier you get into the process before you miss payments that you seek help, the easier the decision making process will be for you.


A special thanks to Gayle Henderson! For her 10 Short Sale Tips and for her partnership.
Gayle Henderson, CDPE
RE/MAX Excalibur Realty
8510 E. Shea Blvd, Suite 100
Scottsdale, AZ 85260
Business: 602.850.4335
Fax: 480.355.3505
Toll Free: 1.888.233.0682
Office: 480-355-3500
E-Mail: gayle@azmovingplan.com
www.azmovingplan.com

Doing FHA Getting Real Tough, Real Soon

You will want to make sure you see this!

Watch This Video To Learn More.

Short Sale Marketing Tips!

Don't Miss Fidelity's Big Mouth Blog from the CDPE National Convention!
http://www.fidelitybigmouth.blogspot.com/

Short Sale Success Forum - “Best Practices & Marketing” with Guest Speaker Brett Tanner, Keller Williams Lifestyle Realty, was in fact a huge success!

It was standing room only as realtors from all corners of the valley came to the Home Design + Idea Center in North Scottsdale. The strong turn-out of 150 realtors indicates the need for education, information and interest in short sales and its longevity in real estate. As well, there isn’t another single realtor in the state doing business on the level of Brett Tanner and The Brett Tanner Team. They’ve taken over 300 short sale listings, as of this writing he has over 160 open listings and has closed over 150.

Brett Tanner discussed in detail how to structure your short sale business by breaking down infrastructure, marketing, goals and selling tactics into scalable “chunks”.

“If you want 10 or fewer listings next month, here’s what to do …”, “10-20 listings, here’s what to do …” His detail on what to spend, what to say, mailing and marketing was organized and structured and PLANNED.

Additionally, his insight on infrastructure and the specialization of each person on his team, “laser focused roles … a buyer’s agent on my team will never take a listing…”

Brett recommended that the best way to blow up your short sale business is by door knocking. It’s the most economic and results driven marketing tactic if you’re starting or a singular agent. Brett broke it down; his results averaged a minimum goal of targeting 40 doors to get a new listing. (Taking into consideration how many people you’ll actually get to speak with etc.)

Brett’s philosophy today hasn’t changed from when he first started with just him and one other agent. Every month he picks a number, A GOAL. He now manages a team of 20 and needs 4-5 buyers agents because they literally cannot keep up with the leads. A Goal. A real number. Write it down – which he made everyone do. Brett recalled setting a goal of 10 new listing not long ago and it seemed unfathomable – his team took down 41 listings in March. They’re doing something right.

Throughout his presentation he continually emphasized the importance of partnerships and his closing remarks summarized how his success is contributable to his partners (Academy Mortgage, Fidelity National Title and Vineyard Property Preservation). “A loan, rehab and title/escrow are part of almost 100% of transactions, work with people who do more than just that, work with partners that help you grow your business.”

Written by Bernadette Espinosa, Fidelity National Title, www.BernadetteEspinosaFNT.com or bernadette.espinosa@fnf.com

Don't Miss Fidelity's Big Mouth Blog!

Banks and Lenders react to the market and embrace the “Short Sales" Learn more, click here!

The Government To Pay The Consumer For Short Sale!

It is now more clear than ever, that we are going to see Short Sales and quite possibly Short refinances become the preferred liquidation of property means by lenders, as now we have the government becoming a stakeholder in the Short Sale process. This has really been on the cards for months, as there is no way we are going to see this mountain of foreclosures come onto the market as has been predicted since last May, in an election year and more than ever, this article tells the story, enjoy!!!!

http://www.cnbc.com/id/35762827

The New Face of Loss Mitigation Departments....

To view Steve de Laveaga, SVP of Sales and Marketing at Fidelity National Title's, perspective on the new look and focus of loss mitigation, Click Here!

First Fidelity National Title Crystal Ball 2010 Event A Success!

We held our inaugural “Real Estate Crystal Ball” event on Wednesday, January 13th and what a success! All bases covered from statistics and forecasting to practical business ideas and comic relief! One of the best outcomes was a general air of confidence by all that participated and attended … knowing what to expect, how it might curve ball on us, concentration on infrastructure and systems and lastly some validation that many of the thoughts, theories and principles we’ve all independently pondered on have credibility and merit your concern and attention. The best attention paid is to prepare your business for a topsy-turvy environment full of opportunity amidst its ‘curve balls’.

I especially thought the “Likely 2010 Scenarios”, shared by Mike Orr, echoed and confirmed that short sales will continue to grow, pending foreclosures will decline and we’ll see a growing segment of 3rd party buying at trustee sales. Unfortunately, the forecast is that pricing will likely continue to slip through the first quarter with expected bounce backs first in the short sale sales prices and in traditional resale sales prices. I thought the shortage of rental listings was also an interesting indicator to observe how it affects our real estate market.

Finally, I found the panelists to be such a diverse group representing many different facets of real estate from geographic area, areas of expertise, best practices and opinion. Sandra Wilkens, pointed out her focus on online commerce/marketing and how important education is. Scott Gibson, who’s done over 700 transactions predominantly in the REO arena, is making a sharp full-focus effort on short sales & traditional resale, that systems/infrastructure and strategic partnerships are pivotal to his team’s success. Don Matheson, Remax Fine Properties, remarked that how he runs his real estate business will also take into consideration economic indicators like unemployment and legislature. My hat’s off to all the panelists for their candor and openness to share their “secrets” on how they run their businesses and develop their best practices.

Notes provided by Bernadette Espinosa
Fidelity National Title
Business Developement and Marketing
602-448-9907
bernadette.espinosa@fnf.com
http://www.bernadetteespinosafnt.com/

Fannie Mae Short Sale Guidelines

Click Here to See What Fidelity National Title's BIG Mouth Blog as to say about it!