More Housing Crisis Changes?
February 21, 2011
In talking with various investors and potential short sale clients, one issue that has concerned many is what are the lending institutions going to do about the difference between the mortgage amount owed on the property and the amount the owner was able to get the lender to agree to accept at the time of the short sale. This difference is known as a deficiency and there are some who believe the lenders can bill the short seller/homeowner to make up the difference and/or have the difference added to the tax liability of the seller. We will try to clear up some of the current thought process here.
Well, in August 2010 the California Legislature approved Senate Bill 931 (SB 931), which was added to Section 580e to the Code of Civil Procedure (CCP 580e), which will go into effect on January 1, 2011. The new law provides “…No judgment shall be rendered for any deficiency under a note secured by a first deed of trust or first mortgage for a dwelling of not more than four units, in any case in which the trustor or mortgagor sells the dwelling for less than the remaining amount of the indebtedness due at the time of sale with the written consent of the first deed of trust or first mortgage…..”
This piece of legislation applies to only the first mortgage or deed of trust for one to four unit dwellings. So many of the more popular programs taken out immediately prior to the housing disaster, such as second mortgage or trust deeds are not addressed along with home equity lines of credit or cash out refinance first and second loans.
Naturally those loans, which were approved sales based on fraud, are not exempt in any aspect. The most common cases of fraud are when the borrower claims a false hardship or otherwise lies about the financial conditions of the borrower. The new law also does not appear to apply when the homeowner commits vandalism to the home prior the leaving the home. Trashing the home, neglecting maintenance, removing fixtures and appliances or any other intentional damage to the home may still result in the holder of the deed seeking damages against the homeowner.
A very technical aspect of the new law is “residential purchase money secured loans” are always considered non-recourse loans. As the name indicates, a non-recourse loan does not allow the lender to pursue anything other than collateral. Recourse loans get their name because the lenders have power to go after the homeowner for the amounts you owe, even after they have taken collateral. The lender can bring a legal case against the homeowner to garnish their wages and try to collect the amount still owed.
As I stated California appears to be a non-recourse state relative to foreclosures and short sales. Here is where it gets sticky. Mortgages used to acquire a house tend to be non-recourse loans, while refinanced loans and home equity loans tend to be recourse loans.
How would this law affect you? California had a recourse law which addressed initial purchase loans while the new law includes short sales involving all first trust deed loans. Prior to the new law, a homeowner who had taken cash out in a refinance transaction would have the potential deficiency liability on a short sale unless the lender had released a written statement in the short sale approval letter indicating a full discharge of the indebtedness.
If you have been reading this site for any time, you know I am not impressed with the various government options made available for homeowners in financial trouble on their property. The Home Affordable Foreclosure Alternatives (HAFA) does have one positive aspect to their program and that is there is a non-recourse provision in the plan. HAFA seems to have been not particularly attractive to the vast majority of homeowners since many of those who have applied for the HAFA options have dropped out of the program before completion.
There are a variety of opinions about the second mortgages, cash out second loans and HELOC’s which were used to purchase the property initially. A number of these loans were written as recourse loans but some legal scholars believe these loans also fall into the non-recourse loan category because they were initially used to purchase property.
As much of this discussion has been about what was legal and not, you want to talk with your attorney before you consider these options. We can expect more changes as the new Federal and State Legislatures convene and try to address the housing crisis so stay tuned.
Tom Fitzgerald writes about real estate investments and its relationship to the financial community in his blog http://www.GreatDayForRealEstate.com. His writings, primarily addressing foreclosures and REOs, can serve as a primer for the new investor as well as a resource for the experienced investor. Tom would like your comments on those articles you find informative.
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The Benefits of a Real Estate Auction
February 9, 2011
Many situations occur that are tailor-made for a real estate auction, but most, if not all, would fit under the category “time is of the essence.”
Property A is sold, and on the strength of this sale, your client purchases Property B. Now sale A develops problems in escrow and the sale cannot close. The client is now in a state of hysteria since his only hope of closing on Property B in 60 days is by closing on Property A. What do you do? Auction Property A and arrange a sale date well in advance of the closing date on Property B, stipulating that part of the terms and conditions of the real estate auction is a quick closing. This can only be accomplished with a real estate auction.
A type of situation which dictates the advantage of a real estate auction is the high divorce rate and the need to dispose of the real estate quickly. Often neither party can afford to hold a property that they previously owned as husband and wife.
When a partnership dissolves, the situation often demands an immediate sale of the assets, including the real estate. Private negotiated marketing cannot guarantee a sale within a set, short time period. A real estate auction can.
Heirs to an estate that involves real estate are usually highly motivated for a fast sale. Most states encourage a real estate auction as a method for generating the highest price in the shortest period of time. Illness, or the need for immediate cash, or the inability of the owner to hold and maintain the real estate is another reason you should recommend a real estate auction. Holding costs can be crippling. All too often, the carrying or holding costs during a private negotiated marketing effort won’t be recovered in a higher selling price. Instead the price is reduced. Therefore, the sooner a property sells, the greater the bottom line dollars in pocket for the seller.
An exchange being held up waiting for a buyer on one of the legs – auction it. The real estate auction can also work especially well in a “Bull Market”. The law of supply and demand, where the demand exceeds the supply, is an ideal market to expose the real estate to competitive bidding to get the maximum return. The real estate auction is highly desirable in overbuilt or stagnant markets, where no reading exists on how low prices will fall or how long the market will stay overbuilt.
The private negotiated method and auction marketing method are different. A real estate auction can most generally guarantee a sale within a short period of time, and the attention is directed to the property being auctioned. Private negotiated marketing can’t accomplish this.
Clearly, real estate auctions offer owners of all types of real estate advantages that are not available with private negotiated real estate firms.
All of us in the real estate profession are salespeople first and foremost. Let’s forget for a moment the fancy titles and diplomas we have earned during our years in the business. The bottom line of success in our profession is still determined by our ability as salespeople. We constantly look for sellers so we have more listings. Our next step is to find the buyers.
A professionally managed real estate auction is a method of marketing that will find the buyers crawling out of the woodwork, and it is this benefit that will enable you to gain additional sales by offering your clients the real estate auction marketing option.
Adrian has many years as a real estate educator, investor, and personal financial consultant. He has personally purchased over 50 single family houses in the past 5 years using various methods of creative real estate investing.. He shares his invaluable experience and techniques to those looking for guidance in their real estate and personal financial activities. He is currently a Certified Real Estate Auctioneer selling properties in the Tacoma/Seattle area of Washington State. For more information visit his website at http://www.auctionsnorthwest.com
Rich Haas, of Mankato, Minnesota is president of Continental Real Estate & Auctioneers. The company does primarily real estate auctions on a regional level, but because of the nature of the auction business, Haas said the company “gets involved with all types of auctions.” He is also president of Continental Auctioneers School in Mankato. http://www.auctioneerschool.com/
Article Source: http://EzineArticles.com/?expert=Adrian_Loepp
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Real Estate Investors Must Diversify Or Die in 2011
February 2, 2011
Real Estate Investors are in for a tougher time in 2011 unless they adapt their current methods of investing. I’m sorry to be the bearer of bad news today but there’s some data I have in my hands that I must reveal to you.
Short Sale flips are tougher to do than ever. There simply aren’t enough people who can get bank loans to “cash you out” once you get your short sale approval from the bank. Plus title companies are very strict on disclosing back to back flips to both the “A” and “C” lenders. Anyone who’s an active short sale flipper knows this is getting tougher to do.
Rehab flips are tougher to do than ever. Title problems and “robo-signing” scandals have tainted the title to many properties and caused uncertainty about the quality of title when buying an REO. On top of that buyers must have a 700+ credit score on average to qualify for a FHA loan plus a down payment. This means there are less buyer’s to “cash you out” using FHA loans.
Most leads that you will generate into your real estate business will be houses with little or no equity. So if you are an “equity” wholesaler you will have trouble getting “equity” leads in 2011. My prediction is that this is just 5% of the deals I’ll do in 2011.80 -100 million people – roughly 30% of our entire population cannot qualify for a traditional bank loan. Cool thing is there’s a “golden opportunity” that’s been created because of tighter bank lending standards.Credit is expected to tighten in 2011, not loosen, according to Inside Mortgage Finance magazine.
Look at these statistics 10.7 million home owners have no equity according to CoreLogic. Another 4.3 million have very little equity. They are 87% – 100% leveraged. The FHA short refi program has helped just 3 people in 4 months. Just ask the FHA. *52% of all HAMP loan modifications “fall out” within 6 months. Just ask Obama. He knows.
So where are the real estate investment opportunities in 2011? What can you do about this and still be a successful investor in 2011? The answer: Go where the money is and diversify into strategies that do not require banks at all.
There are four simple, fast, safe and easy ways for you to make money that don’t require any banks whatsoever that you can profit from any type of property. Houses with equity, houses with no equity and no default (which are most common) and over-leveraged houses in foreclosure (short sales).The investment strategies are proven and have been used by astute investors since 2004. Just now in late 2010 and 2011 they really going to “blast off” because of the current state of the financial markets.
These four techniques will enable investors to continue to profit for many years to come. Some investors are finding that they can get cash now, cash flow each month, and then cash out down the road without ever owning the home. These types of leads are everywhere and require little to no marketing costs on your part to obtain. This is the easiest, fastest way to make money in real estate with no money, bad credit, and no loans for you or your buyers. So position yourself and your business for massive success in 2011 without any banks, FHA loans, private money or government programs using new “Cash Infusion” strategies.
I personally think the jokers at Fannie Mae, Freddie Mac and FHA are not all bad guys. They just are in over their heads. A recent Fannie Mae study showed 54% of the people surveyed want to buy a home in 2011. They realize there are lower prices than ever out there. Problem is with the current Fannie and Freddie and FHA guidelines they simply won’t qualify. So how are you going to use this to your advantage?
Duncan Wierman teaches how investors how to take their business to new levels using creative marketing methods and strategies. Find out more about real estate investing cash strategies http://www.duncanwierman.com/strategies-for-2011 or marketing at http://www.duncanwierman.com/blog
Article Source: http://EzineArticles.com/?expert=Duncan_Wierman
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Real Estate Predictions for 2011
January 18, 2011
Well it’s going to be a question of good news and bad news, depending on which side of the fence you stand: buyer or seller.
If you are a seller, I expect that prices in the Phoenix metropolitan area will remain flat, with a possibility of some areas losing another 10% in value. This is because we are not done with distressed properties. In fact, Bank of America’s recent moratorium on foreclosures, since expired, only served to kick that can down the road. Add in the fact that the state of Arizona is suing them, and you can deduce that 2011 will also be a rocky year.
At this point I must add, and I have said this before, that the banks are also their own worst enemy. Their languid responses to short sales, (anywhere from two to twelve months) is costing sales and delaying the possibility of a return to a normal market; whatever that will mean in the future. Their utter disdain for the conventions and customs of the real estate market is certainly not winning them any friends among the ranks of real estate professionals. So, keep offering insulting commission rates for what are arguably more difficult transactions and see the caliber of agent you will attract. Keep insisting that potential buyers MUST pre-qualify with your Aunt’s second cousin at Billy-Bob’s Ammo, Pizza and Mortgage Emporium. Let me know how it all works out for you. Many real estate pros have long memories so your future will not be bright.
I think the main problem with the banks, due to their corporate culture, is that few of the people tasked to approve a short sale have the stones to actually sign off on that loss. Too often they are scrambling for excuses to kick it upstairs, or off to another lackey, so as to avoid responsibility for any decision-making. This further exacerbates the problem.
On the positive side, it won’t be a bad year for buyers, price-wise at least. For those who saw prices sky-rocket in ‘05 and ‘06 and who thought that the dream of home-ownership had died for ever, the reprieve has been extended. It will be a demanding and possibly fraught experience due to the above-mentioned reasons, and the cautiousness, understandably, of the appraisal community. However, for those buyers with a steady job and a good credit score there will be some good deals to be had.
Here’s hoping that everyone enjoys a happy, prosperous and most importantly, a healthy 2011.
Gary Kiernan is a broker in Arizona. He specializes in the Greater Phoenix area concentrating on Cave Creek, Carefree, Scottsdale, Phoenix and including Desert Hills, Anthem, Paradise Valley, Gilbert, Mesa and Chandler. To learn more about Gary and Cave Creek, Arizona and the surrounding communities please visit his website at http://www.garizonaproperties.com or you may email him at skiernanc21@yahoo.com
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How to Find a Good Tenant in Scotts Valley
November 9, 2010
Most of the people in Scotts Valley have their own homes. However, the apartment market in the area is actually a booming business as well. Sometimes, it’s better to own an apartment complex rather than your own house, especially in the face of today’s economic climate. But though the idea seems wonderful, apartment owners actually have quite a number of headaches associated with their decisions. However, these problems can be easily avoidable if you just find the right tenants.
The first thing to do if you want to find the right tenant is to determine what sort of people you want to live in your apartment. You can choose to have a family live there, or maybe a group of employees, or maybe even a group of college students. Each kind would have its own advantages and disadvantages. Families are generally more stable and more peaceful, although families with kids can cause a lot of damage on the apartment’s fixtures. Young children, especially, can be particularly worrisome, especially if the parents aren’t strict. College students, on the other hand, can be particularly rowdy. Again, each type has its own pros and cons, and what you just need to do is to weigh these and choose accordingly.
Next, prepare a list of the documents that you want your potential tenant to present. This is where you’re going to determine whether or not the tenant has a fixed income and can pay the rent on time. As you can probably imagine, the biggest headache for apartment owners comes when its time for the tenants to pay up. At this point, some tenants would give excuses and what not just to avoid paying rent. You can avoid this problem by finding a tenant who won’t have a hard time scraping up the money to pay for the rent.
Finally and probably most importantly, draw out a contract with your tenant. Be specific. Don’t be afraid to delve into the nitty-gritty parts. After all, if you’re the apartment owner and they’re the tenants, you’re practically going to have to deal with each other for an indefinite amount of time. It’s better to get all the logistics done right at the very start in order to avoid future quarrels. For example, if you need the rent at a specific time of the month, say so. Lay out the rules for apartment maintenance as well so that there won’t be any annoying, not to mention avoidable, fixes to take care of.
All in all, the strength of a relationship depends on how you lay out its foundations. So, if you want to find a good tenant, be meticulous, be choosy.
Santa Cruz Real Estate – Ideal Destination For Real Estate
September 5, 2010
Incredible beach, awesome weather, and bright sunny sky all year round – these are some of the key terms that define Santa Cruz. If you are keen to invest in real estate then undoubtedly Santa Cruz is the best choice.
Let us analyze the reasons why it is a great place to invest on properties. First and foremost while investing in a property one needs to ensure that it is not only a great place to stay but also a location where a property has a resale value. Santa Cruz properties fit both these criterion.
The Santa Cruz County with its amazing coastal beach, miles of sandy shoreline and bright sunny sky all around the year is an ideal place to stay. Its delightful downtown and amazing coastal mountain backdrop is a real treat for the eyes. The mesmerizing Mediterranean climate here makes the place even more appealing to all.
With the convivial summer temperatures which are a bit cooler if one moves down past Capitola to Seacliff and Rio Del/Seascape, the place for sure is a great location to build a house. Not only the summers but also the winters are also pleasant.
This county is a great place for outdoor activities with plenty of parks, landscapes and places. One can indulge in several activities like sailing, fishing, windsurfing, kite boarding etc. It is well surrounded by greenery and has an excellent natural landscape. The oldest amusement park in California makes the Santa Cruz Beach Boardwalk the Santa Cruz Wharf one of the most attractive places.
Such attractions and options for recreations make the place an ideal choice for home investment. The residential investment opportunity is simply unbelievable in it. Looking for a great home or an income generation property? This can be your best bet! This excellent place will allow you to live amidst nature in style.
The area has a bustling economy too and excellent job opportunities. Great educational institutions like University of California make it an ideal choice for people looking for home. Being situated at the center of California, it is an ideal destination for real estate investment. This is a place that has developed and at the same time retained its cultural charm. No wonder then investing in Santa Cruz Real Estate is a great idea.
Experts opine that despite a crisis in the economy the prices of real estate in Santa Cruz will not decline at a rapid pace. This is because it is a place that is well balanced because of its appealing landscapes and weather, great quality educational institutions as well as a booming economy. Are you keen to know more? Then Gregg can provide you with all the information you are looking for.
Gregg Rio is the author of article written on Santa Cruz Real Estate and SantaCruz Beach Homes. For more information, please visit : PropertyinSantaCruz website.
Article Source: http://EzineArticles.com/?expert=Gregg_Rio
Consider Making a Real Estate Investment in Santa Cruz, California
August 21, 2010
Buying a home ocean front – Santa Cruz, California
Santa Cruz County is very pretty and uniquely situated with several nice ocean side communities. Located within 3 hours drive from approximately 5 million people, it has been a magnet for relaxation and enrichment for well over a century. With Silicon Valley only 45 minutes away and San Francisco just an hour and a half, the beach house you want is close at hand. As with most great real estate investments, location is usually one of the strengths. Proximity to the water or to quaint little local towns like Capitola, Seacliff or Rio Del Mar, have a lasting appeal. Of course the best location is at the beach. Having a beach front home on the sand or a more private one on the bluffs, not only says you have arrived, but it has a superior investment potential. They are not making any more beaches and the world keeps getting more populous. Think ahead and guess what the prices maybe in 10 years, then buy now.
Why buy a beach house in Santa Cruz, California?
For many that is not a question of why, because it is a great place to unwind and recharge, but which community and beach? Who does not like going to the beach in Santa Cruz? So really the decision comes down to what you can afford, when do you plan to use your home or investment, and how will you use it? For some the idea is making money with their beach house, for others, it is a place for family gatherings and a place to get away. Renting your beach home can be economically beneficial as it can help defray some of the costs. People pay the most to stay at the beach, on the sand or in close proximity. So if you consider the potential payback of an ocean front home, the investment can be attractive from an income and tax perspective. As with any such consideration consult a CPA or an exchanger in doing a 1031 tax deferred exchange. You can exchange out of apartments or other rental properties for a beach condo in Pajaro Dunes or at the Seascape Resort, or a home on the sand in Rio Del Mar.
What other real estate investments are good in Santa Cruz?
Since Santa Cruz beach houses continue to grow in value, investing in one can be a wise decision. Beach houses often have the highest appreciation. These properties are in relatively short supply, and there are no more beach front or oceanfront developments. Buying a home nearby a few streets back can also be a good decision. The cost is less, and you can be a matter or 5 or 6 blocks from the water for half the cost. After all, even if you don’t plan to live in the house or to rent it out, simply reselling it in the future may help you achieve a nice profit. You could consider an ocean view condominium in Capitola, or Seascape as a lower cost investment as well. Frankly I believe that real estate is a 5-10 investment window and the single family homes that are on the Rio Del Mar beach front or ocean view bluff homes in Santa Cruz will appreciate the most. Property in Santa Cruz and the surrounding communities are at great prices now, and there is a good selection. The time to buy a home is now while the rates are low.
Enjoying Your Private Beach House in Santa Cruz
Of course, if you decide to purchase a Santa Cruz beach house, you don’t have to sell it for a profit or use it only as a rental property. Rather, you can enjoy all that Santa Cruz has to offer and keep it as your own private retreat! There are a number of beautiful beaches, including Capitola beach, Rio del Mar Beach, my favorite, Sunset Beach, Seabright Beach, Manresa, and Natural Bridges. People come from all over the United States to enjoy these beaches, surf and play – just imagine having one of them in your own backyard. When you are ready to learn about the benefits and beauty of owning Santa Cruz real estate, go to propertyinsantacruz.com and see the videos of Capitola, Aptos, and find the Santa Cruz beach house of your dreams.
Gregg Camp is a resident of Santa Cruz County for 30 years and has been buying and selling Santa Cruz real estate for 20 years. He is a real estate broker in Capitola is active in the senior community as a Senior Real Estate Specialist( SRES).He enjoys the many Santa Cruz beaches for their beauty and fresh air. For more details please visit www.propertyinsantacruz.com
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Real Estate Leads 101: Online Lead Generation Tools
July 11, 2010
Real estate leads are as good as gold to a real estate professional – literally. The real estate leads you follow up with today are your clients tomorrow and your paycheck a month from now. Much of your time as a real estate professional is spent generating real estate leads and converting those leads to clients. The advent of the Internet and its emergence into main stream culture brought a new tool to real estate agents in the late 90s: online lead generation services.
Nowadays, the majority of people looking to buy or sell a home or do anything real estate wise are going to the internet first. Years ago, people would get ready to buy or sell, and then walk into a local Realty office and get themselves a real estate agents. Now, they can start researching real estate anywhere from 3 months to 5 years before they actually make a move! That means real estate professionals need to come up with new ways to catch these real estate leads early, so they have time to work them and turn them into clients. There are two major ways to do that now: purchasing a lead generation service and paying for real estate leads and creating your own website with contact pages to generate your own real estate leads.
Which way is better? Truthfully, if you’re not doing both, you’re not being as successful as you could be. Any real estate professional who wants to be a top producer NEEDS their own personal website with homeowner information, contact forms, a blog, etc. That way real estate leads can FIND you on the web.
On the other end, the majority of top producers out there not only have their own website, but they also subscribe to one or more lead generation service, such as HouseValues or GetMyHomesValue. Companies such as these sell real estate leads to agents either at a monthly subscription price, or having the agent pay per lead. These services set up websites offering homeowners free home value information in exchange for their contact information. Basically, a homeowner goes and fills out a simple form about themselves, their contact information and their home and submits it to the company’s website. The company in turn, gives this “lead” to whatever real estate professional they have subscribed in that lead’s area and it is up to the real estate agent themselves to work up the value and follow-up with these real estate leads.
Each lead generation company does things a bit differently: for instance, GetMyHomesValue offers exclusive leads – where the lead is given to one and only one agent in the area, whereas other companies out there will sell the same real estate leads to several different agents. HouseValues has extensive e-mail drip campaigns and scripts to make follow-up a bit easier for agents, while GetMyHomesValue has their staff attempt to contact the leads several times for the agent and then leaves the rest of the follow-up to the individual agent.
The criticism most of these lead generation companies receive has to do with what actually constitutes real estate leads. Because these “leads” are filling out information online, they can often give fake information to avoid being contacted. This then makes it harder for the agents to follow up with the leads.
The successful agent, however, does not give up with confronted with real estate leads that give a property address and e-mail address, but a bad name and number. A great agent will exhaust all options of follow up before scrapping ANY lead, such as using public directories like the White Pages online, tax records of the property, reverse look-ups, etc. They will e-mail the lead on a weekly basis and even stop by the property listed in order to determine who actually submitted the lead.
What happens if the owners of the property claim they did not request their home value information, nor are they looking to sell? The no-so-hot agent will be angry at the waste of their time and blame the lead generation company for selling bogus real estate leads. The HOT agent will introduce themselves anyway, offer their services in any way they can and hand out a business card, then lead the home content in the knowledge that although they may not have gotten to the bottom of the lead, they did just add another prospect to their pipeline of real estate leads.
Online lead generation tools are a HUGE asset to real estate professionals – when used correctly. To be successful with real estate leads gathered online, you’ve got to be ready to work hard and long. You may not convert the lead for 6 months, a year, even two years, but as long as you’re working your real estate leads and keeping your name in their head, you’ve got a leg up on the competition.
Ashley Lichty
http://www.articlesbase.com/sales-articles/real-estate-leads-101-online-lead-generation-tools-134174.html
Real Estate Leads 101: 5 Ways to Show your Appreciation
June 29, 2010
When working to convert your real estate leads into clients, it is important to show appreciation for your leads – nothing will endear you to a homeowner faster. Even if you have been unable to make contact with a particular lead, you should intersperse your normal follow-up with an occasional thank you card or gift just to let your real estate leads know you appreciate their time and consideration.
Too many agents are more worried about getting a check than ensuring their clients’ satisfaction. It doesn’t take much time or money to show that you see more than dollar signs when you meet with your real estate leads. By spending only $200 or less per month, you can show your gratitude in a way homeowners can appreciate.
Use some of these 5 great ideas to show appreciation for your real estate leads (after all – they ARE the ones who will wind up paying your salary!):
1. Free goodies – you probably print up thousands of calendars, magnets, pens, or bottle openers a year with your name and logo on them. Are you just giving them to current clients? I surely hope not. You’ve already got their business and by all means, you should DEFINITELY be showing them appreciation, but the little trinkets with your contact information need to be going out to your real estate leads. Everybody can use a magnet, so don’t be shy about sending free things to ALL your potential customers – better yet, you’ve got a car, use it – rather then spend money on postage, deliver little gift bags to your real estate leads personally.
2. Gift cards – everybody loves a nice gift card, all the more so when it’s a totally unexpected surprise. You can spend $100-200 a month to get gift cards in increments of $5 and send them to 20-40 of your real estate leads that seem to have the most potential. It doesn’t have to be a gift card to anywhere fancy – Blockbuster, Home Depot, a super market, even to an area restaurant – show your real estate leads that you appreciate them even if they HAVEN’T decided to list with you yet – their time is precious and they didn’t HAVE to spend it with you, but they did anyway.
3. Tickets to an event – if you know some of your real estate leads really like baseball, or love the theater, you may want to splurge a bit on a pair of tickets. Find a great local show and buy a few tickets or get tickets to the games of your local baseball team (doesn’t have to be the major leagues) and personally drop them off at your lead’s house. Make sure the tickets are far enough in advance so the lead can schedule around the event. If you feel fairly confident with the lead, make it a condition that you’ll take them to the event! A few hours with the lead and you’ll likely come out of it with a friend and a new client!
4. Stuff for the kids – if you know your real estate leads have kids, use it to your advantage. Put a little gift bag together for the kiddies – nothing too crazy though! Try to stay away from things parents may not want to give their kids, like sweets and candy. Keep it simple – perhaps a children’s book, or a simple toy like a ball or a yo-yo. Again, not something that will break your bank, but just something to show you’re thinking not just of the lead, but their family as well. If they don’t have kids, but do have pets, you may want to look into buying something for Fido – some people treat their pets the same as they would their children!
5. Be crafty – if you’ve got a creative streak, don’t be afraid to throw something together (or go online to get gift ideas). For example, one agent I knew made something she referred as Dishtowel Angels. It basically involved a dishtowel and matching pot holder put together with ribbon and wire to resemble an angel. Something like that, or a gift basket with useful tools, or even a nice flower for planting in the front yard can really warm someone up to you. Using something you put together yourself gives it that extra little touch that shows your real estate leads you care.
Those are just five quick and easy things you can do to show your appreciation and hopefully convince your real estate leads that no other agent can give them the kind of attention you can. Take these ideas and run with them, come up with your own gift ideas – especially once you’ve gotten to know your leads a bit better. Even if you’ve never talked to them before, but you’ve driven by their home and noticed them playing with their dog, or gardening out front – use what you know to come up with the perfect way of thanking your real estate leads. It puts you one step closer to turning them into clients!
Ashley Lichty
http://www.articlesbase.com/marketing-articles/real-estate-leads-101-5-ways-to-show-your-appreciation-137331.html
California Real Estate No Longer California Dreaming
February 1, 2010
“Locally the median price has dropped about $100,000 in 2007 and is expected to drop another $100,000 in 2008,” said the central coast California realtor, “but we are in better shape than many areas.”
Not too many years back realtors were knocking on doors trying to find listings because property values were shooting up. It was reminiscent of Tokyo real estate in the 1990’s, a time when any fool could make money in real estate.
In January California home foreclosures equaled the number of sales, a daunting figure if there ever was one.
For a while the getting was good and any investment today would be worth more tomorrow. In that kind of environment sub prime lending — lending to the marginally credit worthy — began to flourish. Even the lower paid and unskilled could jump on the real estate boom and improve their net worth and equity by signing on the sub prime dotted line.
Call it greed, flipping, speculation, gambling or just bad business; call it any of those things but it has led to the worst housing crisis California has faced. The crisis is particularly bad in California’s interior. Upscale coastal areas such as Santa Cruz, Carmel, and Monterey have had a steep decline in housing values but because of the demographics and desirability, the decline has not been as severe and is not expected to last as long.
“We only have about a nine month inventory which is not bad,” said one Scotts Valley realtor, “some places like Miami have over a three year inventory which means that it will take years for that market to recover. Part of that is we are in a ‘no growth’ area so there isn’t a great influx of new homes on the market. We’re lucky.”
That is because the most desirable areas have very few first time home buyers. The upwardly mobile real estate treadmill is particularly hard when the median home price exceeds $700,000. Many of these “outside” buyers do not need financing.
Upwardly mobile locals are not buying up homes in Pacific Grove and Capitola. Non-locals from other parts of the United States and foreigners make up the bulk of home buyers. And as such, the demographics and “look and feel” have changed. No longer is Santa Cruz the hippie haven for artists; all the starving artists couldn’t afford to starve anymore and have moved out. What was once the bastion of far left liberal thinking is now slowly turning into a techie “Arnold Republican” free zone.
In towns like Watsonville and Stockton banks and construction companies are bringing in buses for foreclosed housing auctions. Rumors are rampant about cheap homes and rumors fuel speculation; what home buyer wouldn’t like a 50% discount?
“But buyer beware” said one realtor, “the truth is both the banks and construction companies are sending in their own ‘dummy bidders’ to drive up the auction price.”
“They know what they want to get for the house and they drive up the bidding to get to that price. The banks and construction companies can’t lose: they either get their price or don’t. They are not going to take it on the chin…at least just yet.”
Part of the boom in the interior was caused by Bay Area commuters looking for more affordable housing that they could pay for with high paying Bay Area jobs. But as gas approaches $4 a gallon commute costs have skyrocketed. So the poor commuter is not only seeing their home equity plummet but their commuting costs are constantly going up. For many Bay Area commuters, buying in Tracy or Merced was a big mistake.
Even many of the Latino immigrants have decided the American Dream is no longer for them. Most can tell of a cousin or brother that signed on the subprime dotted line and then walked away when they could not afford a $3800 a month mortgage.
Many of these immigrants are now saving up and planning to return and buy property in Mexico, which in many areas of Mexico is affordable if one earns U.S. dollars. Mexico is the next real estate boom. The California real estate industry itself is in a transition as it is going through a decline, consolidation and subsequent “shake out.”
“The hobby and part time realtors have closed up shop and gone back to what they were doing before the boom,” said one Aptos realtor, “some are getting bought up by the bigger players who are better positioned to weather this storm.”
We’ll see how this plays out. Just remember it has taken Tokyo a good decade for the real estate market to correct itself. It’s just not clear if California actually has a decade to make that correction.
Jack Deal is the owner of JD Deal Business Consulting, Salinas and Santa Cruz, CA. Related articles may be found at http://www.jddeal.com/blog/real_estate and http://www.freeandinquiringmind.typepad.com
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