Shirley's San Antonio Real Estate Blog: December 2008

Let me first say that I'm not a negative person.  Rather, I'm probably the most positive person that I know....Therefore what I'm about to say does not reflect an angry bitter person, but someone who has sat back and analyzed this 4.5% 30 year fixed rate that everyone's talking about.  Let me say that I'll conclude with some positive advice for all the young bucks in real estate that want to make this a positive.  Let's start with some of the facts.

1)  Last week there's an announcement that there may be a 4.5% 30 year fixed rate.  Here's the deal.  We don't know much about it.  We know that the target is first time homebuyers and that IF it comes out, we just don't know when, for how long and what the terms are.  There are thoughts that the government will buy the rates down to 4.5% for first time homebuyers.  We're not sure if that rate will be fixed or a temporary buy down of that rate.  There's been a lot of banter about both.  If the rate drops to 4.5% on a temporary basis, we may be recreating the whole mortgage default situation again when the temporary buy down expires. 

2)  The government, in another vein, stated that it may buy up all the mortgage backed securities (MBS's).  The purpose of this would be to strengthen MBS's.  This has been a favorite investment of hedge funds throughout the world until the whole mortgage crisis.  What was once viewed upon as one of the strongest platforms throughout the world has dropped attraction because of the mortgage fallout.  The mid east and China have quit buying them.  THAT'S A HUGE PROBLEM.  So buy having the government buying or backing the MBS's we'd see this become a strong asset.  A great biproduct would be that it should drive the 30 year rate down below 5% on it's own merits.  In other words, this has nothing to do with the 4.5% rate for first time homebuyers.

Items number 1 and 2 are separate but both being talked about in the same vein.  This is huge opportunity, but means that there is so much confusion.  So what's the negative about all this?  Here you go.

1)  We don't know when and if either will happen.

2)  We don't know if the 4.5% 30 year fixed rate is permanent or temporary.  We do know that it's for first time homebuyers (in its current stage right now). 

3)  Buyers and refinancers think that the 4.5% is for them.  It probably isn't unless they're a first time homebuyer.  Further, when will the program be rolled out and what are the terms, and finally....WILL IT EVEN HAPPEN?????

4)  People think that this is imminent an therefore may hold off refinancing even though a refinance today would benefit them greatly.  They're passing on something good to HOPE for something better.  They're basing this decision on facts that they're not aware of.

Soooooooooooo anywho..... What is the positive on something like this?  Here you go.

1)  Contact your current clients and offer to do a mortgage analysis.  If the client refinances, great, but if not, make sure that your inner circle is well prepared the rate may drop sharply and soon.  Reconnect with your A+ clients and tell them that it will be a mad house, but as a preferred client they will have first shot at a great refinance.  Despite the chaos, they'll be protected.  GET YOUR A's IN LINE.  No matter what happens, you become the source of information as a trusted advisor.  THIS IS HUGE. 

2)  As I've called my client database to prep them, some of them said why wait....let's take advantage of a good thing.  Translation...as you're connecting and informing your database, you'll find opportunity and revenue now.

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I'll admit it. After reading a story in Wired 2.0 about how blogging is quickly becoming a professional's game, I've become hooked on the whole notion of leveraging social networks like Facebook and Twitter for business purposes. I somehow missed out the whole MySpace craze (thankfully, visiting a MySpace page now just makes my eyes hurt) - but Facebook has me hook, line and sinker.

You should be thinking about marketing your business in the places where your target markets are these days. Believe me, that's rarely in the classifieds sections of your local newspapers anymore.

Now, industry social networks like ActiveRain are great for connecting with your peers; but let's face it, Consumers aren't hanging out there. If you're looking for buyers and sellers, in this day and age you need to be a little more creative.

I got thinking on how you can take this idea and use social networks like Facebook or Twitter to really power your business and I came up with a few things.

1. Encourage past clients and new clients to ‘friend' you or ‘add' you to their networks. Include links to your profile in your marketing materials, business cards etc. Build out a brand new online "sphere".

2. Create Groups - This is the most obvious way to use the social network. Create a "Portland Homebuyers" group for example and help first time buyers with their questions. Leverage your expertise to become the expert in the group.

3. Creating a unique Group is also a great way to keep in touch with business networking contacts you meet - maybe it's at a local Chamber of Commerce meeting or even a Brand Mastermind group.  You can engage in post conference discussions, share information in a neutral open forum that doesn't demand the intimacy of an email or telephone contact.

4. Shares - You could use Facebook to market properties to a select group or share properties with your friends . A handy bookmarklet lets you add external links to your Shares. You could add a link to a property from your own site, even a vFlyer page.

Think about it, you could have an exclusive Group of Realtors in your market, maybe its even inside a single branch office, and you could share great listings with each other even before they hit the MLS.

5. If you're a blogger, add your RSS feed to your profile. Facebook lets you add a Blog feed to your Notes. Active Rain even let's you option into posting to twitter automatically.  You could find new readers and even drive traffic back to your blog by sharing your posts with your network.

I think that maximizing your exposure on social networks like Facebook and Twitter are going to be increasingly important to small businesses - especially in industries that are already so network-dependent like real estate. Unfortunately, due to the fleeting nature of these sites, the trick is going to be to stay on top on where everyone is. The real danger is arriving too late and finding your audience has already moved on.  

Carpe diem,

 

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5 Reasons for Buyers to Get off the Fence !

In the Philadelphia real estate market, I am seeing some substantial opportunity for buyers to procure great deals as well as have teriffic opportunity before them now.  Thus, if you are one of those "on the fence" buyers, it is time to cross over and accomplish your goal ! Here are 5 reasons why:

1.  Mortgage Rates - Mortgage rates are at 2008 lows !  The mortgage officer in my office has been screaming up and down the hallway about this is the time to lock.  A buyer that we have been working with just locked into a 30 year fixed rate of 5.25 !  Are you kidding me ?  This gives buyer incredible purchasing power in addition to being a great deal.  Yes, rates may trend lower but there is no guarantee for how long.

2. Inventory - There is a lot to choose from !  Take advantage of it while you can as that gives the buyer more negotiating leverage.  In the Philadelphia real estate market, I have not seen too many new listings pop up in areas such as Old City or Northern Liberties so as soon as the inventory starts to decline a little bit, the more difficult it is going to be to negotiate that better deal for the buyer !

3.  Inspections - Similar to number 2 above, this is the time where sellers are more willing to negotiate for repairs or offer financial consideration or concessions for inspection items.  When the market turns, there will be many more sellers not willing to do anything.  Of course if a seller agrees to sell a property for a great price, there might not be too much room for repairs as it crosses their pain threshold.

4. Time of Year - Many sellers believe that nothing happens between Thanksgiving and New Years.  I constantly get asked if it is just going to be dead during this time.  My answer to this is to see my post on Black Friday - we are jamming right now.   In any event, because of this, once again a seller that has their property on the market now will probably be more willing to negotiate with the fear that there may be no activity until spring !

5.  First time homebuyer tax credit of $7,500 - see our prior post on this tax credit.  Buyers have until mid-year to close on a property and take advantage of this incentive.  Yes, it is an interest free loan but how often does that ever happen ?

Also, because of the above, I have already seen in our own office a sharp pickup in activity which will lead to our next blog post concerning the "pulse of the market" .

As an agent, I would recommend to communicate this week to all your buyer clients that are "waiting" these benefits to act sooner than later.  They should be highly appreciative of the communication, especially the updates in the mortgage market !

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The Somers - Philadelphia Real Estate

The Philadelphia Real Estate Blog

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In today's INMAN NEWS REPORT there is an article entitled "Roadmap to Recovery". I suggest all Realtors go online today and go to: http://www.inman.com/reinventing

After reading the article, answer the questions that follow, for yourself. Here is my response to the second question:

2. How will the business model or business practices of the title, brokerage or lending industries change in the future?

 

This past month the unthinkable happened in our resort town of Bend, OR: two long-standing name brand brokerages constricted out of the Bend marketplace. I was one of the unlucky agents to find myself interviewing with new Principal Brokers...and highly questioning the validity of the Brokerage business model. To survive in today's market you must be nimble and sure-footed, with a firm grasp on where your market is coming from, and what your sellers are expecting from you in the new media generation. The Brokerage model fails because its focus is "THE BROKERAGE" not the individual agents that must create their own momentum, separate from that of the larger corporation. I believe the New Model to emerge will be a grand throw-back to the ages of true network marketing, paired with the new generation of media capitalization as my generation lives on the web. Monthly desk fees, coupled with the enormous "nut" to crack at Brokerages, simply doesn't jive with capable, entrepreneurial, well-adjusted business Brokers of 2009. What would happen if the crème-de-la-crème in each city formed their own network and readjusted their business to revolve around a collaboration of product, clients, and marketing aimed at specific target markets? That, my friends, would be a revolution.

 

I'd love to hear what other Brokers have to say on this subject.

This site is so fantastic.  You can post WANTED or OFFER and get rid of or receive things, just like that.  It works so fast it can make your head spin.  Go to www.freecycle.org, join the yahoo group in your area, and boom, you are giving and receiving free things.  I posted a wanted for a basketball hoop... got it within an hour.  My daughter and I have been playing at least a half hour a day, making many baskets at regulation height I might add. Someone posted a WANTED for her sister who had been out with a back surgery and needed clothes to go back to work.  I had clothes!  I freecycle'd at least six bags of clothes.  It's wonderful because it helped me to clean up and helped someone else at the same time.  My desktop monitor went crazy on me, I posted a WANTED and received a free monitor within minutes.  Did I need to buy a monitor before Christmas?  No! 

I subscribed to freecycle in another state because my good friend there was slow to start and I wanted to find things for her.  I love to annoy her with "OFFER: Bunny, leash and potty trained, free to good home."  She doesn't want or need a bunny... I did find someone in this state who needed clothing for her children to have Christmas presents and tomorrow I am mailing 3 outfits each, with winter hats and gloves.  It's such a powerful thing.

Check it out, www.freecycle.org, and see if you can give and receive rather than continue on the purchasing pattern we are all on.

 

What is the spirit of Christmas?  It's in GIVING isn't it? 

 

While we have been so adept at giving so much of the useless, we have become stingier and stingier with the important stuff:  our time, our efforts, our involvement.

 

Who needs another sweater?  Who needs another trinket?  Why not do something special and new this year?  Why not really put some thought into this year's Christmas gift giving? 

 

I know that while my 95 year old grandmother appreciates any material gift I give her, she would trade it all in for another day spent with me.  Taking her for a walk in her wheelchair, asking her specific questions that jot her memory about her youth, brushing her hair, listening to yet another CD of Romanian folk songs while I dance for her, now THAT would make my grandmother much happier than any jewelry or clothes I could buy her.  That's just what I'm going to give her for Christmas this year.

 

My sister will love the picture I found going through my old albums.  I am personalizing the frame to accentuate the mood of the picture.  She will love it!  It's a very special moment in her life and it will put a smile on her face every time she looks at it. 

 

There are so many meaningful gifts we can give our loved ones.  Gifts that say:  you are so important to me!  Look at how much thought I put into this!  Instead of mindlessly picking up a gift at the mall, look at what I've created for you!

 

From baking a loaf of fresh bread, to framing a picture, or reading someone a book.  This year, show that you really care:  put away your credit cards and give this gift giving business a deep thought!

Let's put our heads together and come up with some real winners!   If you've created something special for your loved one, please share it with us!  Let's make this an exchange of wonderful ideas for meaningful gifts!

 

Myrtle Beach Homes by Mirela Monte               Join the Optimist Group!

 

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