Developers have sold 85 percent of the condos built in South Florida during the building boom beginning in 2002, according to a report released this week by Bal Harbour-based consultancy Condo Vultures.
The report, which studies condo markets from South Beach to West Palm Beach, found that developers have sold 41,258 condos in the last eight years, with the largest chunk of sales taking place in downtown Miami.
``People are certainly taking advantage of the fact that [condos] are affordable and available both to live in and also to invest in,'' said Leo Zabezhinsky, manager of business development and real estate for the Miami Downtown Development Authority.
While many of the boom-time buyers were speculators , many of today's buyers are investors and vultures, hoping to capitalize on the troubled market by renting out the units.
That explains much of the shift in sales activity taking place between South Beach and downtown Miami, as rental demand is up in places like Brickell and purchase prices are lower in the city than by the ocean, said Peter Zalewski, principal at Condo Vultures.
``An investor comes in, they look in South Beach, and they get sticker shock,'' he said. ``If they want to be on the sand, they go up to Sunny Isles Beach. If they're looking for investment value, new construction, they go to downtown Miami.''
Spurred by bulk buyers and lender takeovers, condo sales in downtown Miami reached 3,675 in 2010, up 57 percent from 2009, according to the report, based on county records. Condo sales in South Beach totaled only 123 last year, up from 107 in 2009. At the current sales pace, it would take about a year to sell out the remaining developer inventory in downtown, and more than a decade to sellthe 1,300 new condos in South Beach.
Areas like downtown Fort Lauderdale benefitted from good timing, as developers completed most of their condo projects before their housing market crashed. There are only 160 new condos yet-to-sell in downtown Fort Lauderdale, where more than 5,000 units were built during the boom.
Condo Vultures focused its report on seven housing markets in Miami-Dade, Broward and Palm Beach counties, concentrating on areas east of I-95 and near bodies of water. During the 8-year span covered in the report, 244 new condo projects were created in those markets, for a total of nearly 50,000 units.
The epicenter of the building, sales and developer default activity has been in downtown Miami and Brickell, where more condo units were built in the 2000s than in the previous four decades combined.
About 18,675 new condos have sold in the downtown area in the last 8 years, totaling about 84 percent of the inventory, according to the report, based on county records.
Developers ``built 23,000 condos, and when over 80 percent have been sold and occupied, clearly it tells you that this is where people want to live and invest,'' said Zabezhinsky. ``The condos have single handedly helped lead the transformation of downtown Miami into a 24/7 global city.''
Condo inventory detailed in new report
By TOLUSE OLORUNNIPA
tolorunnipa@MiamiHerald.com
Read more: http://www.miamiherald.com/2011/01/27/v-print/2036345/condo-inventory-detailed-in-new.html#ixzz1CduN9LdI
Monday, January 31, 2011
Deadly Sins Of Real Estate Prospecting
The Seven Deadly Sins Of Real Estate Prospecting
Real estate prospecting is an extremely vital component in developing your real estate brokerage business. Yet so many agents make simple mistakes that take them away from doing the prospecting that will have them earn and get paid the amounts of money they want to make each and every year. Keeping this in mind these are what I refer to as The 7 Deadly Sins of Real Estate Prospecting:
Not Prospecting Enough
Prospecting is a great way for you to find the leads that will become your successfully closed transactions in the weeks and months ahead. If you don't do what will have you find the best people to work with in your territory your competitors will find these people and successfully close transactions with them instead. Many, many people will be buying, selling, and leasing property in your territory in the months ahead. You have to be willing to do what will have you find these people before your competitors begin forming solid relationships with them.
Prospecting With a Poor Attitude
Do you ever notice how sometimes a person's attitude can change your own attitude? In addition to this have you ever noticed how quite often what you expect to happen does happen? People respond to you based upon what you are putting out to them. When you have a great, positive, fun-loving attitude people will like talking to you more. And when your prospects need a real estate agent they are more likely to remember the agent who made the best impression on them. Make that agent be you.
When you begin your prospecting sessions coming from a positive attitude and an expectation that you are definitely going to uncover some solid leads, you will often prove yourself to be 100% right.
Not Following-Up With Prospects
If you've ever uncovered leads from prospecting and weeks or months later found out that these same people listed their property or completed a transaction with another agent, you know exactly what I'm talking about here. Doing your prospecting is only part of the formula for success in your real estate business. Following-up on the leads you've uncovered and enrolling your prospects in working with you exclusively is really what being a successful real estate agent is all about.
Prospecting the Wrong People
Are you prospecting the people you ideally want to be working with? Are you prospecting in the geographical area that has the properties you really want be working on? Sometimes agents get to the point where they now want to work on transactions that will earn them more commission dollars per transaction than what they've normally worked on in the past. If this is true for you make sure you are prospecting the people who will be closing the exact kind of transactions you want to be working on.
Not Asking Your Prospects for Referrals
When you are prospecting you will maximize your results when you ask your prospects who they know who may be interested in buying, selling, or leasing in the near future. If any of the people you are prospecting right now aren't looking to do anything themselves you might as well ask them who else they know who may be looking to buy, sell, or lease. And if you have the great attitude we talked about above you are much more likely to have these people want to refer you to someone. Remember...when you're prospecting you're not just prospecting the person you're speaking with in the moment. When you ask the right questions you can also begin prospecting everyone else they know.
Not Continually Mailing to Your Prospects
Mailing to your prospects can literally be considered as "prospecting in print." If you have a territory with hundreds or thousands of prospects that you'd like to work with there's no way that you can possibly talk to each and every one of these people every single month. Mailing to them, though, allows you to get their attention and remind them of who you are every single month. You just have to be committed to doing it. The more you mail the more you increase the probability that one of your prospects will be looking to buy, sell, or lease right around the time that one of your mailers arrives with your name and phone number on it staring them right in the face.
Discontinuing Your Prospecting Once You Generate Activity
This is one of the biggest, most common mistakes that many agents make. To be the best you can be in your real estate career you need to be prospecting constantly. As you already know there's a time lag from the moment you identify a prospect to the time you successfully close a transaction with them. If you get busy with activity and stop or substantially reduce your prospecting you will most definitely experience a gap in your incoming commissions in the weeks and months ahead. Don't delude yourself about this. Know with certainty that whenever you slow down your rate of prospecting you will substantially decrease your income for the year.
by Jim Gillespie
From http://realtytimes.com/rtpages/20040128_deadlysins.htm
Saturday, January 29, 2011
Killer Lead Generation Ideas
Killer Lead Generation Ideas: How to Turn the 'Faucet' on Full Blast
Picture in your mind a bucket—but not an ordinary bucket. Think of this bucket as one you must keep full—full of leads so that your real estate business doesn't dry up.
The good news: Directly above this bucket are 10 faucets. We can call them "lead faucets." The bad news: Many Realtors don't use them.
That's unfortunate, because each lead faucet has powerful potential. And just a little tinkering can mean a steady gush of leads that will keep your bucket filled to the brim.
Let's look at these 10 'faucets' and how to create a fire hose-strength flow.
Past clients—Vital because their referrals come with an implied endorsement of your services. Put past clients into two categories: A – Those who've given you referrals, and B – Those who haven't given you referrals. Set a reminder system to stay in touch with each regularly with cards, calls, small gifts, etc.
Internet—A must if you plan to stay in business. Put your focus on responding to the site visitors. Can you respond in 15 minutes? If not, fix it so you can.
Interactive Voice Response (IVR)—The hotline numbers buyers can call to learn about properties. Again, ignore technology at your peril. (Incidentally, I have a client who landed 11,298 calls from his hotline number in 2005. His secret? An irresistible call to action.)
Sphere of Influence (SOI)—The more you think about your SOI (basically your family, friends and acquaintances) the larger it gets. That "acquaintances" category, for example, should include everyone you've met. Think how you interact with those you meet casually—develop the effective 10-second "elevator" speech for them.
Signs—Revisit your signs. How can you make them more effective with more eye-catching color and contrast? Do they include an IVR hotline number?
Direct mail—It can be expensive, so find out what's already being sent in the area you're considering. The two keys here are differentiation—will your mailer stand out and will the offer and the call to action actually produce desired results?
Broadcast radio and TV ads—Yes, some may be too expensive. But don't rule it out completely. Both radio and TV have massive reach and there are deals out there. The key is, if you do go with these mediums, use them regularly. Frequency beats reach—so don't buy for just a one-shot deal.
Print ads—Give them a fresh and thorough inspection. What's keeping them from really grabbing your target audience by the collar? Often, they lack contrast and that prevents them from being noticed in the first place. Don't forget to add muscle to your call to action.
Prospecting—Absolutely essential. It's one of just four real dollar-producing activities a Realtor can do. The trick is to schedule time everyday to do it—usually in the morning because it's the most controllable time of the day.
Networking—Choose where you network carefully. There are literally thousands and thousands of groups out there. Be strategic by examining what potential business they bring to the table.
Leads You Need
Published on Wednesday, August 26, 2009, 4:33 PM Last Update: 1 year(s) ago by Bob Corcoran
Prospecting
Prospecting: The Efficient Lead Generator
by Dirk Zeller
Prospecting is the most efficient lead generator ever created. All it takes is time and a little bit of skill. You don't need large amounts of money to prospect well. When I entered real estate sales, prospecting was my only option, since I was undercapitalized in starting my business (translation: broke!). Developing and implementing a large marketing and direct mailing campaign was out of the question. I was forced to prospect for business.
Looking back now, I would not have traded my broke position in the beginning with no capital to invest for anything. It freed me to learn a primary skill of every salesperson's success early in my career. There is no method of lead generation that deals so well with the law of cause and effect. The law states certain causes create certain effects. Making phone calls and talking to people creates leads in bunches ... period.
We really only have two types of people we can call. Everyone in the world fits into these two neat categories. The categories are people we know and people we don't know. Those are the only two options. The question is which of these categories is bigger? I'll give you a minute to think about it. The people we don't know is larger. There are more potential prospects in that group. The group of people we know is smaller, but the odds of us doing business with them are greater because we are an insider, not an outsider like we are with people we don't know.
Most agents are searching for the "magic pill" formula or solution to avoid prospecting and have a Champion Agent's business. They are hoping and praying that their marketplace runs contrary to the laws of success. We have to plant seeds before we can harvest. If you look at prospecting as merely planting seeds, that may help. There is no harvest without sowing seeds.
In ancient scripture, there is a parable called The Parable of the Sower. The story tells about how seeds must be sown or planted. If you just cast them to the wind, some seed will land on the road and be trampled or eaten by the birds. Other seed falls on rocky soil and sprouts, but the seed has no water and withers. Still others fall among thorns, and the thorns grow and choked the young plants out.
Finally, some falls on good soil and grows and produced a crop 100 times as great as the seed. In our prospecting, we will encounter the road and get trampled and beaten up. We will fall on rocky soil where things look promising but there is no depth to the prospect or even our strategy and technique, so our results will quickly wither. We will cast the seed of prospecting and get choked out by the negativity of others. The good news is some of the seeds of prospecting will land in good soil and will bring you wealth, success, and happiness exponentially, compared to the amount of seed planted - a crop that is 100 times as great.
Anyone who approaches you by saying, in effect, "I have taken out the road, rocky soil, and thorns and left you only good soil", you must question. That is, in effect, what most peddlers of the "magic pill" marketing gimmicks without some prospecting are offering. "Just send my stuff out in the world, and watch the flood of success come your way." It doesn't work that way in life, and we all know it! My best advice is if it seems too good to be true; it probably is.
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Dirk Zeller is a sought out speaker, celebrated author and CEO of Real Estate Champions. His company trains more than 350,000 Agents worldwide each year through live events, online training, self-study programs, and newsletters. The Real Estate community has embraced and praised his six best-selling books; Your First Year in Real Estate, Success as a Real Estate Agent for Dummies®, The Champion Real Estate Agent, The Champion Real Estate Team, Telephone Sales for Dummies®, Successful Time Management for Dummies®, and over 300 articles in print. To learn more regarding this article, please visit www.realestatechampions.com.
Friday, January 28, 2011
Four Effective Keys to Contacting Preforeclosures
According to the leading online marketplace for foreclosures, RealtyTrac, foreclosure listings have grown by as much as 39 percent in the last year. And in 2011, foreclosures are expected to reach 1.2 million. As you can see the inventory of foreclosures is rising, which means a good opportunity for you.
The most important opportunity for you is to contact these preforeclosure owners. However, this is also the point where many real estate agents and investors often struggle. Here are four keys to make this an effortless campaign.
Some real estate agents and investors mail letters to all of the preforeclosure owners in their cities. This blanket approach is not effective. The reason for this is simple: it’s virtually impossible to become a smart real estate agent or investor in several areas unless you have unlimited time and resources. Instead, think quality rather than quantity. For example, focus on identifying several zip codes that you are interested in working, and eliminate all those properties not in those zip codes.
It is important that you become very familiar with the real estate market in the few areas that you target. This will ensure that you make informed decisions on which preforeclosure properties to approach. As you become familiar with an area, you will know if new road construction is planned, for example, which may negatively impact an investment. Or, you will know if commercial rezoning has been approved close to that area.
Being on top of local issues like these can make or break a purchase.
Also, becoming very familiar with a few areas will also give you insight into when a preforeclosure on www.ipreforeclosures.com is a “diamond in the rough.” You may be able to find a gem with a high resale value, for example, if a school district changes its boundaries to include homes in a new neighborhood.
Once you have identified homes in a high resale area, it’s best to contact the preforeclosure owners by mail. You may expect to send 1,000 letters a year to preforeclosure owners. But if you close 10 deals a year that net $15,000 to $25,000 per deal, you will have created a very successful business for yourself.
It is important that your letters are professionally written. If you need to pay an experienced writer to compose your letters, it’s worth it. Remember this is part of your business. Any small investment you make in it will help guarantee its success.
Don’t be discouraged if you don’t hear from anyone after making contact with owners by mail. Most preforeclosure owners are in a state of denial about losing their homes. For this reason, you should contact them on a regular basis.
For best results, contact your database of preforeclosure owners once every week or every other week with original letters—no form letters or postcards. Each letter should reference the previous letter and should be slightly different. All letters should be individually signed and mailed with a first-class postage stamp.
In addition, purchase a stamp that says, “ADDRESS SERVICE REQUESTED” and place it one-quarter of an inch below your return address. This way, if an owner has moved the post office will give you the property owner’s current address.
People seem to be more receptive to mail received on Saturday. Therefore, mail your letters on Thursday so they arrive on the weekend.
And remember this: letters should appeal to the emotions of the preforeclosure homeowner because this is a difficult time for them. Accordingly, your stance should be one of wanting to help. Make it clear how you can assist them, including offering cash for their equity, finding them a new place to live and keeping them from having a foreclosure on their credit history — something that could make it extremely difficult to qualify for a home loan for up to seven years.
The main goal is to keep your name and phone number in front of the troubled homeowner as much as possible so that when they are ready to ask for help, they will contact you.
In addition to pursuing foreclosures, you could also establish some ads that would bring the foreclosures to you. There may be a higher cost, but the quality will be supreme, because these people are looking for help and have sought you out. The following message, on a flier, in the Classified section or in a homes magazine would be sufficient and to the point:
Don’t lose your home to foreclosure.
Learn your options. Preserve your credit.
For a Free Recorded Message 24 Hours a Day
Call 1-800-960-2291
Enter Extension #XXXX
Your recording on the extension could be as simple as:
“Hello, my name is
Like I mentioned above, you could include this in flyers and post them in various locations throughout your community as well as create signs with the above message and your sign riders with the toll-free number above. Simply get permission to place them in high-traffic areas
Thursday, January 27, 2011
30 Can't-Miss Home Staging Tips
30 Can't-Miss Home Staging Tips
Designed to Sell designer Lisa LaPorta shares some of her best home staging tips.
Grimy bathroom walls are a major red flag to buyers.
Here is an easy way to get rid of surface mold: Mix a spray bottle with one part water and one part bleach. Just spray it on the wall, and watch the mold disappear. Give it a fresh coat of paint, and your grimy bathroom will go from red flag to red-hot.
Don't replace a yucky shower door: Just scour it.
A grimy glass shower door can really wash out your sale. Instead of replacing it, clean it with a mixture of one part muriatic acid and about 10 parts water. Scrub with steel wool. After wiping it down, reinstall the door and you'll have a shower that'll help you clean up at the open house.
Avoid dated tile by painting.
Bathrooms sell houses, but dated tile in a bathroom doesn't. A low-cost alternative to replacing the tile is to use paint. First coat the tiles with a high-adhesion primer. Next, brush on a special ceramic epoxy covering. For a fraction of the cost of new tile, you will have an up-to-date bathroom that brings in big bucks.
Pedestal sinks are a big hit with buyers.
They show off square footage in small bathrooms beautifully. First, your old vanity has to go. Next, just hook up your new sink, and your bathroom will have dramatic appeal that brings in big bucks. Plus, buyers will see how much floor space your bathroom has.
A master bedroom should appeal to both sexes.
When you are selling, your master bedroom should appeal to buyers of both sexes. Get rid of features that seem too gender-specific. Paint the walls a neutral color, and choose bedding that matches. Then accessorize with items that complement the overall color scheme.
Do you have an overpowering brick fireplace that sticks out like a sore thumb?
Here's an easy way to tone it down with paint. Use a rag or brush to rub a light coat of paint on the bricks, one at a time. This will give them a new tone without covering them completely. And, if you use a paint color that matches the walls, your fireplace will go from sticking out to standing out.
Updating an old fireplace screen is a cheap (and quick) fix.
After removing the screen and wiping it down to get rid of the dust, mask off the windows so you won't get paint on them. Then, using a can of heat-resistant spray paint, give the screen a facelift. Hold the can about 18 inches away, and use long, even strokes. For less than $5, you will have a fireplace screen that'll keep your sale from going up in smoke.
Turn an unattractive fireplace into a selling feature.
Need to turn an unattractive fireplace into a selling feature? First, that dated brass screen has got to go. Next, give the fireplace a good cleaning, scrubbing it with soap and water. Then, using a stone color enhancer, polish the bricks to make them shine. In no time you will have a fireplace that will turn your house into the hottest property on the block.
Stain dated kitchen cabinets instead of replacing them.
Dated kitchen cabinets can be a big turnoff to potential buyers. Instead of paying big bucks to replace them, just stain them. First, apply the stain in even strokes, going with the grain of the wood. Add some stylish hardware, and your kitchen will have the up-to-date look that buyers love, for less than $200.
Stainless-steel appliances are definitely in with buyers.
Instead of buying a new dishwasher, here is a low-cost way to resurface an old one: First, remove the front panels, and clean them. Next, apply a stainless-steel stick-on covering, and cut it to size. For just $20 your dishwasher will go from outdated to ultra-modern.
Fill existing hardware holes instead of making new, unsightly ones.
Removing old kitchen hardware can leave your cabinets with stripped-out holes. Here is a trick to reusing the existing ones.
First, dip a toothpick in glue and place it in the stripped hole. Cut off the excess piece. Once the glue dries, you'll be ready to put in the hardware that buyers love.
Save money on granite countertops.
Granite countertops are a huge selling feature, but they can be expensive. Here are a few ways to save on this investment:
First, do the demo yourself. Also, ask the vendor for remnants from previous projects. Remember, any money you spend will definitely be returned in the value these beautiful counters add to your kitchen.
New kitchen appliances bring high returns from sellers.
Studies show that new kitchen appliances bring high returns from sellers, so get rid of old appliances that make the rest of the kitchen look dated. Once you install the new equipment, it will scream "new kitchen," and you will see that spending a little money will make you even more.
Need to dress up a window but don't want to shell out big bucks for window treatments?
Here's a trick: Use place mats. First, apply a hook-and-loop fastener to the place mats and attach them in a row to a basic curtain rod. Now that the place mats are attached to the curtain rods, pin them together at the bottom, and you'll have a stylish valance that costs about $12.
Adding drama to old hardwood flooring is easier than you might think.
First, isolate damaged boards, cut them out and replace them with new pieces. Rent a sander from a local hardware store, and give the floor a good sanding. The last step is to stain the boards with a rich color, and watch your floor go from drab to dramatic in no time.
Buyers love built-in bookshelves.
There's a fine line between filling them with clutter and staging them to sell. The trick is to arrange neutral items in clusters. Make sure that no single accessory stands out too much. That way, you'll show off your attractive built-ins, and not your personal belongings. Curb appeal is vital to attracting buyers.
Here is how to stop traffic using color. First, with two tones of paint, add a faux finish to any corner keystones. Next, bring out the color of walkway pavers using a stone sealer. Plant flowers in bloom, and you'll have buyers swarming like bees to your front door.
A nice outdoor deck can be a big selling feature, but an old one is a major liability.
To give your outdoor space new life, first sand the wood. Cover it with a light-colored stain instead of paint to give it a rustic, grainy look. Furnish it for entertaining, and watch your open house turn into a party.
Breathe new life into a worn patio.
Do you have a red-brick patio surface that needs to be freshened up? Here is an easy way to give it new life with paint. First, roll a light coat of paint onto the bricks. Next, lightly spray them with water and then dab them before they dry to give them an outdoor look. When you are done, you will have a patio that looks fresh and reels in buyers.
Staging rooms to show off their true potential is essential when selling your home.
Clear out clutter or other personal items that will distract buyers. Paint the walls a neutral tone, and furnish the space to show off how functional it is. When buyers come through and imagine themselves there, you can bet an offer isn't far behind.
A shabby wood-panel wall is not a strong selling point.
Instead of ripping it out, cover it up. Use wood filler to carefully fill in all the cracks between the panels. Then, use a sponge to wipe away the excess filler. Once it's dry, paint the room. You'll see an unattractive wall go from standing out to blending in.
Use tape outlines on the floor instead of actually moving furniture around.
Rearranging a room to stage it for your open house? Here is a tip to save time and effort: Instead of lugging the heavy furniture around the room to see what feels best, put outlines on the floor with painter's tape. Arrange the room according to your outlines, and save your energy for counting offers.
Vinyl tile is an inexpensive way to update your home.
Laying vinyl tile is an inexpensive way to update your home, but there's a right way and a wrong way to do it. You need to avoid laying patterns that look too perfect. Instead, make sure to switch up the direction and placement of the tiles to mix the tones. That way, you end up with a floor that has a natural feel. Let the sun shine in.
Buyers love light and airy living rooms, but dark and dingy isn't on their list. Open up your window shades to let some light in. Cheat some sunshine with a light-colored paint and lots of artificial lighting. You can never have too many lamps. Last, arrange the space with lightly colored furniture, and you'll have a living room that brightens your chances of a sale.
Stage rooms with one purpose so buyers will know what it is.
Potential buyers are confused by extra rooms that have a mishmash of uses. To avoid this problem, first clear away clutter and excess furniture. Paint the walls a neutral tone and then furnish the room with a desk to stage it as a home office in which buyers will want to get down to business.
Unpleasant pet odors won't win over buyers.
We all love our pets, but unpleasant pet odors can make a negative first impression. Be sure to get rid of old carpet that can trap offensive smells. Replace it with fresh new carpet in a neutral color. Plus, if you paint the walls to match, your living room will look bigger. It'll go from designed to smell to designed to sell.
Pack up unnecessary items and furniture before you show the house.
An overpacked living room is a red flag to buyers that your home lacks storage space. Pack up unneccesary items and furniture, and move items to your garage or a nearby storage facility. Clear the way for a sale by letting buyers see your square footage, not your personal belongings.
Storage space sells!
Potential buyers love homes that have lots of storage space. Since they will open your closets, it's a good idea to clear out unnecessary clutter, and organize your shelves to show off how much storage you really have. Plus, it gives you a chance to start packing, as you will definitely be moving once buyers see all that closet space.
Create a nice flow in your rooms.
Buyers are attracted to homes that have a good flow. You can create circulation by replacing square or rectangular dining tables with round ones. Cutting the corners adds room to this maneuver and creates a spinoff effect that adds flow to your home — cash flow, that is.
Create a better flow in the house by starting with the floor.
Want to create better flow in your house? Start with the floor. Join two rooms together by using the most cost-efficient material in the book: vinyl tile. First, use a snap-line to create a center point between the two rooms. Next, the fun part: Peel and stick the new vinyl tile down, and watch your kitchen and dining room go from old to sold!
http://www.hgtv.com/real-estate/30-cant-miss-staging-tips/index.html
HOW TO MOTIVATED YOUR SPHERE OF INFLUENCE
The following tips will enable you to motivate your sphere of influence to refer to you easily and effortlessly.
Tip 1: Have a script so you know what to say
What you decide to say may vary from person to person. For instance, the way you talk to a close friend may be quite different from the way you talk to a distant acquaintance.
There is no one formula of what to say. However, it is very helpful to have something to offer when you call. One idea that many of my clients have found helpful is to call your sphere of influence and offer to be a referral source for them.
In other words, let them know that you have plenty of connections to people who could help them. For example, you know many painters, electricians, plumbers, etc. and your sphere of influence should know that if they need any names and phone numbers, they should call you and you will be happy to provide a referral source for them.
Tip 2: Think of yourself as being “the giver”
Most of us love to be the giver. We know we will be well-received and people will like us. We also know that “giving” leads to more business.
Before you pick up the phone to call your sphere of influence, ask yourself: “what can I give to them?” One way that you could be of service to them is to offer to be a cross referral partner.
If they have their own business, ask them how their business is doing. Ask them how you could help them at their business. Ask them what kind of referrals they would like to receive. Let them know that you will do your best to send referrals to them. At the end of the conversation, you can say something like, “when you hear of anyone who’s interested in buying or selling a home, please call me with their name and number. If it’s okay with them, I will call them and make sure that their real estate needs are being taken care of.”
Tip 3: Send something of value each month
What kind of valuable gift should you send? It used to be that sending newsletters was a hot item. However, most people have gotten too busy to read a newsletter.
The selection that works the best is a colorful postcard that gives the events happening in their area. Their sphere of influence is likely to put that postcard on the refrigerator and refer to it often.
Of course, next to the list of events happening in the area is your photo, your phone number and your tag line such as “relax and let me run the extra mile to fulfill your business needs.”
Not only will you start to enter their stream of consciousness, they start to associate positive ideas with you:
-You are associated with happy events in their area,
-You are associated with brilliant bright, happy colors in the postcard,
-Your face smiles at them every time they go to the refrigerator.
Do you think they are more likely to remember you the next time they have a need for your service?
Tip 4: Don’t be afraid to call them too often
As long as you have a good reason to call, your sphere of influence will be happy to hear from you. Trust your own gut instinct about how often you should call. Many real estate gurus suggest calling people in your sphere of influence about once a month. You may choose to do that with your “A list,” the people most likely to refer to you.
Since you are sending an item of value each month, you can always ask your sphere of influence if they received your postcard. You can then follow that with, “so what event are you going to?”
Tip 5: Assume the positive
Simply assume that your sphere of influence will be happy to hear from you. Why wouldn’t they be? They are receiving a wonderful colorful, informative postcard from you each month, then you are calling and offering them something, and you are conditioning them to want to hear from you.
Assume that you have something valuable to offer- your friendship and your expertise- and people want to hear from you.
Tip 6: Be excited about your business
Remember, “desperation does not sell,” but “excitement” does. No matter what the current condition of your business, always say something like, “I am so excited about my business. I get to meet such wonderful people and I’m really in an expansion phase of my business. If you want to help out, just send people my way, I will be happy to help them.”
Tip 7: Use the Law of Attraction
To successfully use the Law of Attraction, you need to be clear about what you want. What do you want? Do you want your sphere of influence to send you several clients a month? If so, then set your intention, “I am now in the process of attracting several new clients from my sphere of influence each month.”
Do you have any opposing beliefs that you need to clear? The Law of Attraction cannot give you what you want if you have any beliefs that will oppose your desired outcome.
For example, if you want to attract an abundance of prosperity, don’t focus on beliefs such as:
-I don’t deserve to have a lot of money
-It’s selfish to want more than I have
-Money is the root of all evil
-Money can’t buy me happiness
-Rich people are usually not honest.
If you have any of the above beliefs, those are called “opposing beliefs.” Can you see that you could be doing all the right activities with your sphere of influence, but if you had opposing beliefs like these, you would not be attracting the clients and the income you want?
To get the Law of Attraction to work for you, you need to identify these old self limiting beliefs, release them and install empowered beliefs.
Here are some examples of empowered beliefs that will help you create the income you want:
-I do deserve an abundance of prosperity.
-It’s okay for me to be grateful for what I have and still want more.
-Money is neutral and can be used for good or evil.
-Money can’t buy me happiness, but I can create a better life for myself and people around me by being prosperous.
-Some people are honest and some are not. It has no relationship to whether or not they have money.
Practice repeating your empowered beliefs frequently and train your mind to focus on what you “want,” not on what you “don’t want.” If you find yourself dwelling on thoughts of scarcity, like “not enough money,” switch your focus and ask yourself, “so what do I want?” Start to notice yourself becoming more positive and attracting more of what you want.
Dr. Maya Bailey, author of Law of Attraction for Real Estate Professionals, integrates 20 years of experience as a psychologist and 12 years as a business coach with her expertise in the Law of Attraction. Get Bailey’s free report, 7 Simple Strategies For More Clients in 90 Days, by visiting www.90DaystoMoreClients.com [2].
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com [3].
Wednesday, January 26, 2011
5 Tips To Help You Take Better Property Photos
5 Tips for Better Property Photos
Photos of a home on the Multiple Listing Service can do a lot to show off a place, but a bad photo can quickly turn buyers off. Kathryn Learie, professional photographer of Owen Imaging in Kamloops, B.C., offers several pointers to taking better property photos:
1. Take horizontal photos. The MLS may not properly support vertically captured photos, so you're better off shooting horizontal.
2. Have the right equipment. Use a wide angle lens--28mm or wider--and a tripod.
3. Remove clutter before you shoot. Take note of anything that has the potential to distract in the photo and remove it before you take the photo, such as brightly colored blankets or stereo wires.
4. Take photos in the early morning or early evening of the exterior. The timing of day when you shoot the exterior can make a big difference with lighting. Early morning or evening hours can create the most dramatic lighting for your photos. Turn off your flash and use a tripod, and to capture the best image, use a ladder to shoot the home from higher ground.
5. Watch your interior lighting too. Don’t shoot in a room when direct sunlight is pouring into it through the windows or you’ll get dark shadows and really bright highlights. Subdued lighting conditions are optimal, Learie says, adding you should avoid turning on any harsh overhead lighting. Try photographing the interior at dusk and turn the lamps on to create a warm, inviting feel.
Source: “How to Shoot Photos of Your Home for the Real Estate Market,” The Globe and Mail (Jan. 21, 2011)
New home sales jump 17.5% in Dec
WASHINGTON – Jan. 26, 2011 – While 2010 was not a stellar year for new home sales, it ended on a positive note: December home sales rose 17.5 percent over November home sales on a seasonally adjusted basis, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.
In December, there were 329,000 home sales on a seasonally adjusted basis, strongly surpassing economists’ predictions of 299,000 sales.
While a strong uptick in new home sales marked a positive end for 2010, however, the year ended up as the slowest one on record. The estimated total of new homes sold in 2010 was 14.4 percent below the 2009 level, according to the report.
© 2011 Florida Realtors®
THe Key for Suscces in Real Estate is Relationship Building and Follow-Up Service
The most successful real estate agents place great value on developing lifetime relationships with their clients. In today’s competitive marketplace, they are aware that their clients are aggressively prospected and their loyalty cannot be taken for granted. Customer focused real estate companies recognize that relationship building and follow up service are critical components for promoting both customer retention and revenue growth.
Build a relationship
Today we have access to innovative tools such as the Internet, cell phones, faxes, and voicemail all designed to enhance our ability to communicate. Nevertheless, even with all of these technological tools at our disposal, the alarming number of dissatisfied clients, lost sales and failed relationships all reflect the fact that none of us are as effective at communicating as we would like to believe.
Temperament understanding helps to foster effective communication. Research in the field of human psychology indicates people are born into one of four primary behavioral styles: aggressive, expressive, passive, or analytical. Each of these four temperament styles requires a unique approach and communication strategy. For example, if you are working with the impatient, aggressive style, they want a quick fix and a bottom line solution. Under pressure they can be ill tempered and quick to anger. Give them options so you don’t threaten their need for control. Don’t waste their time with chitchat—stick to business. While at the other extreme, the stress-prone analytical style requires more information and is interested in every detail. Their cautious and analytical nature makes them susceptible to buyer’s remorse. Be sensitive to their need for reassurance and guarantees. Once you learn how to identify each of the four primary behavioral styles, you’ll be able to work more effectively with all of your clients.
Communicate effectively
Recognize the importance of nonverbal communication and learn to “listen with your eyes.” It might surprise you to know that research indicates that over 70% of our communication is perceived nonverbally. In fact, studies show that body language has a much greater impact and reliability than the spoken word.
Create a favorable first impression and build rapport quickly by using open body language. In addition to smiling and making good eye contact, you should show the palms of your hands, keep your arms unfolded, and your legs uncrossed.
You can develop harmony by “matching and mirroring” your client’s body language gestures. Matching and mirroring is unconscious mimicry. It is a way of subconsciously telling someone that you like them and agree with them.
Improve your active listening skills. To develop and encourage conversation, use open-ended questions to probe the meaning behind your prospect’s statements. Occasionally repeat your prospect’s words verbatim. By restating their key words or phrases, you not only clarify communication, but also build rapport. Keep your attention focused on what your client is saying and avoid the temptation to interrupt, argue, or dominate the conversation.
Little things make a big difference
Rendering quality customer service is both a responsibility and an opportunity. Often salespeople view customer service as an administrative burden that takes them away from making a sale. The truth is that customer service provides opportunities for cross-selling, up-selling, and generating quality referrals.
Clients describe quality customer service in terms of attention to detail and responsiveness. Customer satisfaction surveys consistently point to the fact that the little things make a big difference. Not surprisingly, the top two customer complaints with regards to customer service are unreturned phone calls and a failure to keep promises and commitments. Make an effort to see yourself through your clients’ eyes. True customer service is meeting and surpassing your clients’ expectations.
Successful salespeople “go the extra mile” when providing service and turn the customers they serve into advocates to help them promote their business. Your referrals and follow on business are in direct proportion to the quality and quantity of service you render on a daily basis. Want more referrals? Improve your service.
Here are five powerful ways to improve the service you provide your clients:
-Under-promise and over-deliver. Develop a reputation for reliability; never make a promise that you can’t keep. Your word is your bond.
-Pay attention to the small things. Get in the habit of returning phone calls, e-mails and other correspondence quickly. Follow up, follow up, and follow up.
-Stay in contact and keep good records. Take the time to jot down notes from meetings and phone calls making certain to record all relevant information. Maintain a written record of service. This is especially helpful when clients are reassigned to new agents. Setup a suspense system to track important contact dates such as client review calls and birthdays. Consider sending a personal note or an article of interest every six months.
-Give your clients a promotional gift. Consider sending them a letter opener, coffee mug, or a calendar with your picture and contact information.
-Establish a feedback system to monitor how your clients perceive the quality and quantity of the service you provide. Service is not defined by what you think it is, but rather how your customers perceive its value. When it comes to customer service, perception is reality.
Progressive companies emphasize commitment to customer service from the top down by establishing training standards and continuously monitoring customer satisfaction. Companies that fail to implement an effective customer service program actually do a disservice to their customers and unknowingly, leave the backdoor open to their competitors. If you do it right, sales and service blend seamlessly and you will exceed your customers’ expectations.
Posted By susanne On January 25, 2011 @ 5:13 pm In Best Practices,Business Development,REALTOR Marketing,Real Estate,Real Estate Consultants,Real Estate Information,Real Estate News,Real Estate Trends,Today's Marketplace,Today's Top Story |
Home Prices, by Metro Area
A Look at Case-Shiller, by Metro Area (January Update).The S&P/Case-Shiller Composite 20-city home price index, a broad gauge of U.S. home prices, posted a 1% drop in November from a month earlier and fell 1.6% from a year earlier, as the housing market faced a new round of trouble.
Nineteen of 20 cities in the index posted month-to-month declines in November — just San Diego notched an increase. Only four areas of the U.S. — Los Angeles, San Diego, San Francisco and Washington, D.C. — posted year-over-year gains. Nine markets — Atlanta, Charlotte, Chicago, Detroit, Las Vegas, Miami, Portland, Ore., Seattle and Tampa — hit their lowest points since home values started dropping four years ago, pushing prices in those areas below the lows seen in most regions in spring 2009.
“The price action is surely going to lead many to speculate as to whether the housing market is double dipping but we repeat our long held position; housing can only double dip if you believed it was bouncing in the first place,” said Dan Greenhaus, chief economic strategist at Miller Tabak & Co. “As we never believed the spring improvement was anything other than a mirage, we cannot believe in the concept of a double dip. Prices, according to the index, are down by 3.50% from the June high and we repeat our position that further price declines lay ahead.”
Read the full story.
Read the full S&P/Case-Shiller release.
Below, see data from the 20 metro areas Case-Shiller tracks, sortable by name, level, monthly change and year-over-year change — just click the column headers to re-sort.
(About the numbers: The Case Shiller indices have a base value of 100 in January 2000. So a current index value of 150 translates to a 50% appreciation rate since January 2000 for a typical home located within the metro market.)
Tuesday, January 25, 2011
Realtors® Say Mortgage Interest Deduction Vital to Home Ownership, Economy
Washington, December 01, 2010
The following is a statement by National Association of Realtors® President Ron Phipps.
“As the leading advocate for housing and home ownership issues, NAR firmly believes that the mortgage interest deduction (MID) is vital to the stability of the American housing market and economy.
“The MID must not be targeted for change. NAR is actively engaged on behalf of the nation’s 75 million home owners and 1.1 million Realtors® to ensure that the current deduction is not modified as was recommended in the Deficit Reduction Commission report released today.
“The tax deductibility of interest paid on mortgages is a powerful incentive for home ownership and has been one of the simplest provisions in the federal tax code for more than 80 years. In a new survey commissioned by NAR and conducted online in October 2010 by Harris Interactive of nearly 3,000 homeowners and renters, nearly three-fourths of homeowners and two-thirds of renters said the mortgage interest deduction was extremely or very important to them.
“Recent progress has been made in bringing stability to the housing market and any changes to the MID now or in the future could critically erode home prices and the value of homes by as much as 15 percent, according to our research. This would negatively impact home ownership for millions of Americans, including those who own their homes outright and have no mortgage.
“Any further downward pressure on home prices will hamper the economic recovery, raise foreclosures and hurt banks’ abilities to lend and likely tip the economy into another recession resulting in further job losses for the country. It will effectively close the door on the American dream.
“NAR will remain vigilant in opposing any plan that modifies or excludes the deductibility of mortgage interest.”
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section.
South Florida residential inventory
The sales of existing single-family homes in the Miami Metropolitan Statistical Area (MSA) rose 18 percent in December, from 623 to 734, compared to December 2009 and 70 percent compared to December 2008 according to the MIAMI Association of REALTORS and the Southeast Florida Multiple Listing Service (SEFMLS). Sales of condominiums increased 29 percent, from 766 to 985, compared to December 2009 and 116 percent compared to December 2008.
(Compiled by Condo Vultures Realty using the South Florida Shared Multiple Listing Service. Active listings are properties where no current sale contract exists; pending sales are properties in which a contract for sale has been executed, but not yet closed. Listing brokers control the status of a property listing. )
Read more: http://www.benzinga.com/press-releases/11/01/p795192/miami-home-sales-strengthen-in-december-and-year-end#ixzz1C6IXTu8n
Existing-Home Sales Resume Uptrend with Stable Prices
Existing-Home Sales Resume Uptrend with Stable Prices
Existing-home sales got back on an upward path in November, resuming a growth trend since bottoming in July, according to the National Association of REALTORS®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 5.6 percent to a seasonally adjusted annual rate of 4.68 million in November from 4.43 million in October, but are 27.9 percent below the cyclical peak of 6.49 million in November 2009, which was the initial deadline for the first-time buyer tax credit.
Lawrence Yun, NAR chief economist, is hopeful for 2011. "Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable," he said.
Yun added that home buyers are responding to improved affordability conditions. "The relationship recently between mortgage interest rates, home prices and family income has been the most favorable on record for buying a home since we started measuring in 1970," he said. "Therefore, the market is recovering and we should trend up to a healthy, sustainable level in 2011."
The national median existing-home price for all housing types was $170,600 in November, up 0.4 percent from November 2009. Distressed homes have been a fairly stable market share, accounting for 33 percent of sales in November; they were 34 percent in October and 33 percent in November 2009.
Foreclosures, which accounted for two-thirds of the distressed sales share, sold at a median discount of 15 percent in November, while short sales were discounted 10 percent in comparison with traditional home sales.
Total housing inventory at the end of November fell 4.0 percent to 3.71 million existing homes available for sale, which represents a 9.5-month supply at the current sales pace, down from a 10.5-month supply in October.
NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said good buying opportunities will continue. "Traditionally there are far fewer buyers competing for properties at this time of the year, so serious buyers have a lot of opportunities during the winter months," he said. "Buyers will enjoy favorable affordability conditions into the new year, although mortgage rates are expected to gradually rise as 2011 progresses."
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.30 percent in November from a record low 4.23 percent in October; the rate was 4.88 percent in November 2009.
"In the short term, mortgage interest rates should hover just above recent record lows, while home prices have generally stabilized following declines from 2007 through 2009," Yun said. "Although mortgage interest rates have ticked up in recent weeks, overall conditions remain extremely favorable for buyers who can obtain credit."
A parallel NAR practitioner survey shows first-time buyers purchased 32 percent of homes in November, the same as in October, but are below a 51 percent share in November 2009 from the surge to beat the initial deadline for the first-time buyer tax credit.
Investors accounted for 19 percent of transactions in November, also unchanged from October, but are up from 12 percent in November 2009; the balance of sales were to repeat buyers. All-cash sales were at 31 percent in November, up from 29 percent in October and 19 percent a year ago. "The elevated level of all-cash transactions continues to reflect tight credit market conditions," Yun said.
Single-family home sales rose 6.7 percent to a seasonally adjusted annual rate of 4.15 million in November from 3.89 million in October, but are 27.3 percent below a surge to a 5.71 million cyclical peak in November 2009. The median existing single-family home price was $171,300 in November, which is 1.2 percent above a year ago.
Existing condominium and co-op sales declined 1.9 percent to a seasonally adjusted annual rate of 530,000 in November from 540,000 in October, and are 32.2 percent below the 782,000-unit tax credit rush one year ago. The median existing condo price5 was $165,300 in November, down 5.5 percent from November 2009. "At the current stage of the housing cycle, condos are offering better deals for bargain hunters," Yun said.
Regionally, existing-home sales in the Northeast rose 2.7 percent to an annual pace of 770,000 in November but are 33.0 percent below the cyclical peak in November 2009. The median price in the Northeast was $242,500, which is 9.2 percent higher than a year ago.
Existing-home sales in the Midwest increased 6.4 percent in November to a level of 1.00 million but are 35.1 percent below the year-ago surge. The median price in the Midwest was $138,900, down 1.1 percent from November 2009.
In the South, existing-home sales rose 2.9 percent to an annual pace of 1.76 million in November but are 26.1 percent below the tax credit surge in November 2009. The median price in the South was $148,000, down 2.6 percent from a year ago.
Existing-home sales in the West jumped 11.7 percent to an annual level of 1.15 million in November but are 19.0 percent below the sales peak in November 2009. The median price in the West was $212,500, up 0.4 percent from a year ago.
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
Monday, January 24, 2011
Miami NO# 1 Cities Where It's Cheaper to Buy Than Rent
Cities Where It's Cheaper to Buy Than Rent
It’s cheaper to buy a home rather than rent one in 72 percent of the 50 largest U.S. cities, according to Trulia’s rent vs. buy index, which compares the total cost of home ownership to the cost of renting.
"Since the start of the 'Great Recession,' many former home owners have flooded the rental market,” Pete Flint, CEO of Trulia, said in a news release about the index. “Following the principles of supply and demand, renting has become relatively more expensive than buying in most markets.”
The index compares the median sales price of homes with the median rent on two bedroom apartments, condos, and townhomes that were listed on Trulia as of Jan. 10, 2011.
Here are the top 10 cities where it’s best to buy than rent, according to the index:
1. Miami
2. Las Vegas
3. Arlington, Texas
4. Mesa, Ariz.
5. Phoenix, Ariz.
6. Jacksonville, Fla.
7. Sacramento, Calif.
8. San Antonio, Texas
9. Fresno, Calif.
10. El Paso, Texas
Source: “Cheaper to Buy Than to Rent in 72% of Largest U.S. Cities,” Inman News (Jan. 24, 2011)
5 Ways to Make Facebook Smarter for Business
5 Ways to Make Facebook Smarter for Business
Facebook has been touted as a great tool for real estate professionals to connect with customers. But having a Facebook profile page alone is not enough.
Charlie Engel, vice president of sales at the online classified ad company Oodle Inc., and Nicole Nicolay of Agent Evolution recently spoke at an Agent Reboot conference in New York City by Inman News about how real estate pros can broaden their reach on Facebook.
Here are a few of the strategies they addressed:
1. Create lists to organize your contacts. You can have separate lists of your contacts by geographic location, topic, or type (e.g. first-time home buyers and move-up buyers) to better organize your contacts on Facebook. But be careful what you call your lists--some friend lists can be made public and even notify your contacts about it. However, the benefit is that once you have friends designated in groups, you can select your lists to sort your news feeds and target your communications.
2. Get a vanity URL. You need at least 25 people to “Like” your Facebook business page until you can get a vanity URL for it (such as facebook.com/username). The benefit of a vanity URL is it is easier to add to your marketing materials so you can promote your Facebook presence.
3. Have a landing tab with extra info. You can create a customized, branded landing tab on your Facebook page so that you can include newsletter information or your listings. You’ll need to have a tab developer who is savvy in Facebook Markup Language (FBML).
4. Start your own group. You can create a Facebook group to get other Facebook users to gather over shared interests, with options to make the group public or private. Start your group here: http://www.facebook.com/groups/
5. Details, details. Allow others to get to know you better and connect with you in other ways. Include photos, basic personal information, friend lists under “Featured People,” education, your philosophy, arts, entertainment preferences, activities, interests, and work credentials. And take advantage of a new tool that allows you to add “info” links that will appear under your username.
Source: “15 Ways to Optimize Facebook for Business,” Inman News (Jan. 12, 2011)
Broward Condominium Sales Rise Seven Percent
Broward Condominium Sales Rise Seven Percent
In Broward County, condominium sales increased seven percent, from 947 to 1,011, last month compared to December 2009 and 70 percent compared to December 2008, according to the MIAMI Association of REALTORS and the Southeast Florida Multiple Listing Service (SEFMLS).
Miami, FL (Vocus/PRWEB) January 20, 2011
In Broward County, condominium sales increased seven percent, from 947 to 1,011, last month compared to December 2009 and 70 percent compared to December 2008, according to the MIAMI Association of REALTORS and the Southeast Florida Multiple Listing Service (SEFMLS).
Single-family home sales dropped 14 percent in December, but were seven percent higher than they were two years ago. Statewide sales increased four percent to 6,673 for condominiums and four percent for single-family homes to 15,550.
Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops rose 12.3 percent from November but were 2.9 percent below December 2009, according to the National Association of Realtors (NAR).
“Increasing condominium sales in December and last year compared to 2009 is a positive sign for the Broward County market,” said Terri Bersach, 2010 president of the Broward County Board of Governors of the MIAMI Association of REALTORS. “Increased condo sales in Broward especially in December could be an indicator that the second home market is showing signs of strengthening. As we experience job growth and a strengthening economy, we expect the Broward market to further improve.”
Year End 2010
Total closed sales of condominiums rose nine percent, from 9,894 in 2009 to 10,773 in 2010. Compared to 2008, condominium sales increased 65 percent last year. Total single-family home sales dropped nine percent from 8,816 in 2009 to 7,997 in 2010 but were 25 percent higher compared to 2008.
The year-end median sales price remained the same at $206,100 for single-family homes and dropped 11 percent for condominiums when comparing 2010 to 2009. Statewide the year-end median sales price dropped four percent for single-family homes and 15 percent for condominiums.
Median and Average Sales Price
The median sales price of condominiums in the Fort Lauderdale Metropolitan Statistical Area (MSA) decreased 12 percent to $70,700 compared to December 2009. The median sales price for single-family homes was $203,700, down four percent from a year prior.
The average sales price for total single-family homes decreased three percent, from $251,556 in 2009 to $244,638 in 2010. The average sales prices for condominiums dropped seven percent, from $128,394 to $119,644.
Statewide median sales prices decreased 17 percent to $88,100 for condominiums and five percent to $133,100 for single-family homes. The national median existing-home price for all housing types was $168,800 in December, a one percent drop from December 2009.
Inventory Levels Decrease
The inventory of residential listings in Broward County decreased 5.8 percent from 21,133 to 19,899 since January 2010, according to the SEFMLS. Compared to last month, the total inventory of homes decreased 1.3 percent.
“Short sales and foreclosures continue to affect home values and the Broward real estate market, particularly in some areas of the county,” said Natascha Tello, president-elect of the Broward County Board of Governors of the MIAMI Association of REALTORS. “Still compared to the state of the market two years ago, when sales began to rebound, we are seeing vast improvements.”
Total housing inventory nationally fell 4.2 percent at the end of December.
About the MIAMI Association of REALTORS
The MIAMI Association of REALTORS was chartered by the National Association of Realtors in 1920 and is celebrating its 90th year of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of four organizations, the Residential Association, the Realtors Commercial Alliance, the Broward County Board of Governors, and the International Council, it represents more than 25,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local association in the National Association of Realtors, and has partnerships with more than 60 international organizations worldwide. MIAMI’s official website is http://www.miamire.com.
CONTACT: Lynda Fernandez, 305-468-7040 Office or 305.903.7922 Cell
What is Shadow Inventory
The “shadow inventory” of unlisted bank-owned homes and potential foreclosures increased to 2.1 million units in August, up 10% from one year earlier, according to new estimates from CoreLogic, a real-estate research firm.
That’s around eight months of supply, compared to a five-months’ supply one year ago.
By contrast, the inventory of all unsold homes listed for sale totaled 4.2 million units in August, unchanged from one year ago. Together, that means the visible and shadow supply of homes stood at around 6.3 million in August, or around 23 months of supply at the current sales pace.
Mark Fleming, chief economist at CoreLogic, says that weak housing demand “is significantly increasing the risk of further price declines in the housing market.” Delays in the foreclosure process, including those brought on by banks’ inability to file the proper legal paperwork, threaten to exacerbate that trend.
CoreLogic estimates that the shadow inventory is highest in the Miami metro area, at 33.5 months, followed by Long Island’s Nassau and Suffolk counties and the Chicago and Atlanta metro areas, with around 30 months. Florida, New York and Illinois require banks to process foreclosures through courts.
Some analysts have said the CoreLogic estimates look rather low. Laurie Goodman, senior managing director at Amherst Securities Group, has warned that as many as seven million homes could end up in banks hands unless more aggressive modification regimes are put in place.
Analysts at Barclays Capital, meanwhile, estimate that bank owned inventory stood at around 600,000 at the end of September (the figures don’t specify what share of that inventory is unlisted versus listed).
Barclays estimates that another 3.76 million homes are either in the foreclosure process or are at least 90 days delinquent but not yet in foreclosure. That’s up from 3.66 million one year ago, though it’s down from a peak of 4.22 million at the end of February. Some of those homes could still sell before going through foreclosure, including through a short sale, where banks approve a sale for less than the amount owed, while other loans could be modified, avoiding (or delaying) foreclosure.
Nearly 356,000 homes have sold through short sales during the first nine months of 2010, according to Barclays analysts, double the amount two years ago. By contrast, banks have sold around 700,000 foreclosures during that period, down 25% from last year and up 10% from two years ago.
Dollar Drops - Why and What Does it Mean?
In This Issue...
Last Week in Review: The US Dollar has dropped. Find out why and what it could mean to home loan rates!
Forecast for the Week: A full load of economic reports hits the markets. Read what they are and why they matter.
View: How much can you deduct for driving? Discover what’s changed...and how you can benefit!
Last Week in Review
"Bet your bottom Dollar?" These days the more appropriate question is: Where is the bottom of the Dollar? That’s because the US Dollar is starting 2011 in very poor fashion, with its value dropping relative to other currencies.
Let’s take a look at why... and what this could mean for home loan rates!
1. Some of the Dollar’s drop is attributed to the recent strength in the Euro, which has gotten a boost from some positive stories of late, like Spain and Portugal's ability to sell debt in the Bond market without crisis. But the question is...have Europe's problems gone away? No - there will be more problems ahead for the region and as they emerge, we should see a reversal in the Euro's strength along with improvement in the US Dollar.
2. Another reason for the Dollar's weakness is the Fed’s Quantitative Easing (known as QE2). Remember, while it would never be officially stated, one of the implicit aims of QE2 is to devalue the US Dollar in order to boost our exports and thus GDP.
At this point, the weakening US Dollar hasn't had a big negative effect on the US Bond market, but should the Dollar materially weaken, it could make US denominated assets like US Bonds less valuable and desirable amongst global investors...and it has been these foreign investors, like China, who have supported the US Bond market for years by purchasing our debt. Remember, home loan rates are tied to Mortgage Backed Securities, which are a type of Bond. So negative news for Bonds would also be bad news for home loan rates.
In housing news last week, Existing Home Sales for December were reported much better than expected. The jump in sales is likely attributed in part to the recent trend of rising home loan rates, which has prompted many homebuyers to take advantage of the still low home loan rates. Building Permits - which signal future construction - also came in better than expected last week, surging 17% in December.
Relatively speaking, 2011 looks to be a good year for the housing industry. There will still be some areas that suffer price declines and those will be where foreclosure backlogs overhang and where unemployment rates are even higher than the national average. But housing has bottomed out in many areas and should see more of a pick up in the second half of 2011. And although home loan rates will likely rise slightly as the year progresses, they are still near all-time lows right now. That means homebuyers still have a tremendous opportunity in front of them.
If you or someone you know is considering purchasing a home, the combination of low home loan rates and affordable home prices make this an ideal time. Call or email today to discuss how you can benefit from the current situation.
Forecast for the Week
This week includes a full load of economic reports ranging from housing and the economy - but the big event will be the Fed Meeting.
• We’ll start the week with a read on consumer attitudes with the Consumer Confidence report on Tuesday. That report will be followed by the Consumer Sentiment Index on Friday.
• We’ll also see additional housing news this week, with a report on New Home Sales in December due out Wednesday and the Pending Home Sales report for December due out Thursday.
• The Federal Reserve will also hold its FOMC meeting this Tuesday and Wednesday, with the Fed’s Policy Statement due for release Wednesday afternoon. There’s no chance for an interest rate hike at this meeting - but what the Fed says about the economy, inflation, and its Quantitative Easing program could have an impact on rates.
• Thursday’s weekly Initial and Continuing Jobless Claims Report will be important, as always. Last week Initial Jobless Claims came in below expectations and the 4-week moving average fell from the previous week. Those readings tell us the trend in the labor market is continuing to improve...albeit at a slower pace than historically seen at this stage within an economic recovery.
• We’ll also get a read on the economic recovery with Durable Good Orders on Thursday. This report gives us an update on consumer and business buying behavior on big-ticket items that are designed to last for an extended period of time, like furniture, televisions, appliances, vehicles, copy machines, and so on. It’s an interesting report, as people tend to hold back on these types of purchases when they are feeling a need to be extra conservative with their finances or feel insecure about their employment.
• The GDP report will be followed on Friday with reports on Gross Domestic Product (GDP) - which is the broadest measure of economic activity - and the Employment Cost Index (ECI). The ECI is one way to evaluate wage trends and the risk of wage inflation, as well as possible price pressures. This is important to the housing industry because if wage inflation threatens, it is possible home loan rates will rise through Bond prices dropping.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.
As you can see in the chart below, Bonds and home loan rates continued their negative trend to end the week worse than where they started.
Chart: Fannie Mae 4.0% Mortgage Bond (Friday Jan 21, 2011)
The Mortgage Market Guide View...
Mileage Rates for 2011
If you drive a car, truck or van for work, you’ll want to make sure you know the standard mileage rates that the Internal Revenue Service (IRS) has set for 2011. These mileage rates are used to calculate deductible costs for driving an automobile for business, charitable, medical and moving purposes.
New for 2011
As of January 1, 2011, the standard mileage rates are as follows:
• Businesses = 51 cents per mile driven
• Medical or moving = 19 cents per mile driven
• Charitable organizations = 14 cents per mile driven
You’ll notice that the 2011 rates for medical, moving, and business driving went up slightly, while miles driven for charitable organizations remained the same.
For-Hire Now Qualifies!
Beginning in 2011, taxpayers are allowed to use the business standard mileage rate for vehicles used for hire, such as taxicabs.
Make Sure You Qualify
Before you calculate your deduction, make sure you qualify. The IRS reminds taxpayers that they cannot use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.
In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously. However, the IRS is accepting public comments on this policy.
Additional Option
Although the IRS provides the standard mileage rate for ease and convenience, you're not required to use it. If you prefer, you can calculate the actual costs of using your vehicle instead of using the standard mileage rates.
Remember, if you have questions are concerns, talk to a tax consultant or accountant to discuss your options and unique situation.
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Economic Calendar for the Week of January 24-28, 2011
Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Economic Calendar for the Week of January 24 - January 28
Date ET Economic Report For Estimate Actual Prior Impact
Tue. January 25 10:00 Consumer Confidence Jan NA 52.5 Moderate
Wed. January 26 10:00 New Home Sales Dec 300K 290K Moderate
Wed. January 26 02:15 FOMC Meeting Jan unch 0.25% HIGH
Thu. January 27 10:00 Pending Home Sales Dec NA 3.5% Moderate
Thu. January 27 08:30 Durable Goods Orders Dec 1.9% -1.3% Moderate
Thu. January 27 08:30 Jobless Claims (Initial) 1/22 NA 404K Moderate
Fri. January 28 08:30 Gross Domestic Product (GDP) Q4 3.8% 2.6% Moderate
Fri. January 28 08:30 GDP Chain Deflator Q4 NA 2.1% HIGH
Fri. January 28 08:30 Employment Cost Index (ECI) Q4 0.4% 0.4% HIGH
Fri. January 28 10:00 Consumer Sentiment Index (UoM) Jan NA 72.7 Moderate
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