The Importance of January 2, 2010

Posted by Matthew Ferrara on December 29, 2009 on http://www.matthewferrara.com/blog/company/jan2/

During the holidays, most of us are taking some time to slow down, enjoy the season, and recharge the batteries. It’s been a tough year – and next year will likely prove just as tough. But while it’s important to enjoy the festivities and good cheer, don’t forget that January 2 will likely be the most important day of the next twelve months. For REALTORS especially.


What happens on January 2, 2010? It’s the first acceptable day to get back to work in real estate. Saturdays and Sundays are usually workdays for real estate professionals, but none in the last year will be as important as this particular Saturday:

The first work day after millions of listing agreements expire at the end of 2009.

Certainly, someone will argue that ambitious real estate agents could pursue expired listings on New Year’s Day – but let’s at least pretend to some decorum in an industry that usually spends most of its time at the jewelry-booth at its Annual Convention. Leave the First off-limits, if not just for hangovers.

But on Saturday the Second, the gloves come off. And they should. It’s going to be a field day for every over-priced, newspaper-and-postcard marketed listing that failed to sell in the last quarter of 2009. Most listing agreements run 3 or 6 months, and many consumers tend to think in terms of calendar periods. So the end of 2009 is a very natural “end date” for thousands of listing agreements nationwide.

So you’d better be prepared for the first work-day after. And that means starting today.

Smart real estate agents should be laying the groundwork in December for Saturday the Second of January. It starts with information gathering – like making an appointment to tour potential future targets before they expire. Sure, you probably won’t know which homes exactly are about to expire at the end of the year. But it doesn’t take a math whiz to run a MLS report by days-on-market. Just sort by 75 and higher; or 160 or higher. Then make some appointments to see the home before it possibly expires.

And take some notes. Maybe even some photos.

Oh, that’s naughty, you say! Coal for you, in your stocking! Isn’t that the entire point of targeting expired listings, anyway? To demonstrate you can do what the other agent couldn’t or wouldn’t – which is get the job done, using ambitious techniques. It’s called sales, and not everyone gets a trophy.

If you wimp out on the ambitious technique, then at least printout some MLS sheets and file them in advance. This will provide you with more information in case your MLS system purges data when a listing expires. It will be helpful to identify any weaknesses in the past marketing strategy being used, like awful photos, weird-abbreviation descriptions and missing data.

And if there was a virtual tour, was it a silent-movie?

Speaking of movies, that’s be another thing to prepare now, so you’re ready to target expired listings on Saturday the Second. Record a video or two or three about why homes don’t sell, good marketing techniques and current market conditions. Upload it to YouTube and post it on your blog. Then promote the video to the local marketplace. Provide consumers with information in advance about why (their) homes didn’t sell. That way, when you reach out to them on the Second, some sellers might recognize you from your video.

Recognition is important, of course, so make sure you tell the people who already know you that Saturday the Second is a big day. That means creating a campaign over the next few weeks on Facebook, Twitter and elsewhere to spread the word: Should anyone in your sphere of influence know anyone whose home might be falling off the market at the end of the year, share your video with them. Or contact you. Referrals still represent the single largest source of new listings. So why not get referrals of expired listings? At least you have a targeted date and time to push for them at this time of the year.

Which brings us back to Saturday the Second of January, 2010. What’s your plan for the big day? Will you have a marathon telethon, hitting the phones hard enough to make the New Year your best ever? Are your email marketing pieces ready to follow up with every call you make? Have you prepared your market reports and customer trend graphs to offer sellers – and you’ll just stop by to drop them off? You can’t possibly start doing this on January 1st, and there will be some holidays and hangovers between now and then.

So get to work now, because the importance of January 2, 2010 cannot be underestimated. On that day, careers will be won and lost. The seeds of success will be planted, or hard ground lost by those who thought that now is the time to slow down. That’s the funny thing about real estate: We actually know when the most important days of the year will be. Now it’s up to each of us to decide whether we’ll be ready for it or not.

Let’s hope so!

7 Reasons to be Grateful You're in Real Estate plus some awesome tips!

by Tracey Velt

The last few years have been difficult, there’s no denying that! When times are tough and negative news floods the media, it can be hard to stay positive. But, no matter how tough the market is, there are always things to be positive about. And, a good attitude can take you far.
Real Estate Coach Bernice Ross of RealEstateCoach.com offers her 7reasons to look forward to 2010.

1.  Marketing no longer requires big bucks.
While the pace of technological change can be frustrating, technology changes have dramatically cut the cost of marketing. To obtain a foothold in a new market 10 years ago, you had to door knock, spend thousands of dollars on print marketing, and regularly hold open houses. Today the web allows you to market your listings and your services in numerous places.

Instead of paying your local paper $50 for a 3-line ad, you can now post your listings on Facebook Marketplace, CraigsList, and many other high traffic sites at no charge. Granted, it takes time and effort, but it costs next to nothing.

2.  Consumers actually want to talk to you.
No one likes hearing the phone slam down when you’re in the middle of your cold-calling spiel.  It’s frustrating and humiliating. The great news about blogging, Facebook, LinkedIn, and Twitter is that the people on those sites are eager to be in conversation with you, provided that you share mutual interests outside of real estate.
Don’t bombard them with marketing messages. The goal is to make a friend now and do a deal later.

3.  New technologies send sign and ad leads directly to you.
The old "floor duty" or "up agent" system, where one agent took all incoming sign and ad calls, was a huge source of frustration to many agents. In fact, the statistics from 10 years ago showed that in most offices, 90 percent of the calls were lost because the person taking the call couldn't get the caller's phone number. Today you can use an 800-call capture system or the new SMS (i.e. text messaging) systems that send those leads directly to your cell phone. In fact, a new study from MIT shows that if you respond in five minutes, the conversion rate is 79 percent. (Wait to respond in 30 minutes and that rate drops to 34 percent.)

4.  Referral database building the easy way.
Until recently there was no easy way to contact high school and college friends, past business associates, or past clients with whom you hadn't kept in touch. LinkedIn now does that heavy lifting for you. Once you complete your profile including where and when you attended school and worked, LinkedIn notifies you about other people who were at those places when you were. You can also use services such as Zabasearch and Intellius to track down contact information about past associations as well.

5. Blogging just got a whole lot easier.
Three years ago, anyone who blogged had to be a decent writer to have any success. A hot trend for 2010 is vlogs (video blogs). For less than $300, you can obtain a video camera that takes great videos. Instead of figuring out what to write, you can interview your local mortgage broker about what's happening in the market, the football coach about the upcoming game, or anyone else who has something interesting to say to the people in your market area. In addition, new software from Adobe allows Google to convert the voice track of your video or podcast into searchable text. This improves your web ranking on Google and other search engines.

6. Multiple offers plus some limited signs of life in the luxury market.
Many of the hardest hit markets including those in California and Florida are reporting less than one or two months of inventory in the first-time buyer market. The result is limited inventory that is leading to multiple offers. Also, there are a few lenders slowly testing the waters in the luxury market. It's still hard to get financing, but at least there's a tiny trickle in this area.

7.  Your market is not just local; it's global.
International buyers and sellers inhabit virtually every part of the United States. Current research shows that international buyers have a 50 percent closing ratio as compared to about 35 percent for domestic buyers. Agents who work with international buyers also make approximately 50 percent more as compared to those who work with domestic buyers only.

If you would like to add to this list, please take a moment to share your thoughts about what you're grateful for this holiday season. Email me at Tracey@traceyvelt.com.

Short Sale Reference Guide Released: Unbelievable!

from an email from Sherry Bailey (Century 21 New Millennium) and Pat Breme (CEO of FAAR)


What an amazing tool!


"This summer the leadership from five Associations in the region- Dulles, Fredericksburg, Greater Piedmont, Northern Virginia and the Prince William met to address the ethical issues that are a result of the short sales environment. The Presidents and Association Executives and other Leadership, now called the Ethics Dialogue Group, saw the value in a group approach to solving challenges facing their members.

The overall mission is "To have a unified approach in creating a culture in the market place where ethical means professional." In an effort to ethically navigate through short sales the Group has produced the Regional Short Sales Reference Guide. Each Association is distributing the Guide to its members via email. Go to www.ethicsdialoguegroup.com where the document can be downloaded. The Guide itself and the Appendixes are separate attachments. There is also the Short Sale Ethics checklist that links the most common short sale situations with the Article of the Code.

The Guide is an easy read with many helpful comments. The topics cover pricing the short sale, MRIS status issues, confidentially and other areas that span the short sale process.

For example, did you realize that the MRIS rule in Section 6 has changed?
References to special compensation in any other field, other than the compensation fields are not intended to, or shall be construed to, permit any conflict with the unconditional offer of cooperation and compensation made in the compensation field(s).  If there is any conflict between the unconditional offer made in the compensation field(s) and any other field,  MRIS policy is that the information in the compensation field will control.

The Appendixes of the Guide list useful documents on short sales for those using the regional forms. Also included are documents generated by the Virginia and National Association of REALTORS® plus VAR's new short sale forms.

The Ethics Dialogue Group thanks the Virginia Association of REALTORS® and MRIS for participating in the discussion. As a result of the meetings, VAR orchestrated Lem Marshall's Short Sale Summit statewide tour for brokers, mailed an information postcard on the topic written by Lem and applied for and received a NAR grant to put on a loss mitigation course in 2010. The course will be offered through local Association real estate schools. MRIS listened to the input and held a MRIS Compliance and Legal Summit of Association leaders to discuss short sales and social media issues.

The regional Ethics Dialogue Group pledges to continue their effort monitoring the market for issues that challenge the practitioner from a business and ethical standpoint.

Thank you and enjoy the FREE Guide and the companion materials sponsored by your Association.
A comment form is provide at the website.

From the regional Ethics Dialogue Group,

Dulles Area Association of REALTORS®
Fredericksburg Area Association of REALTORS®
Greater Piedmont Area Association of REALTORS®
Northern Virginia Association of REALTORS®
Prince William Area Association of REALTORS®

Sincerely,

Sherry Bailey, GRI
President

Pat Breme, RCE, CIPS
Chief Executive Officer"

How to Put the Power of YouTube to Work in Your Real Estate Marketing

YouTube is truly an amazing marketing tool for real estate agents–posting videos of your listings, information about your area and basic information about buying and selling homes. Today’s successful agents are creating personal video profiles, posting them on YouTube and linking to their website, Facebook, LinkedIn and other social media sites. Your personal video profile is a great way to get prospects to feel comfortable with you before they ever meet you. Remember that people like to do business with people they like. The goal of your website is to have the prospects who watch your video feel good about you and to like you after they’re done watching the video.




Think of the short 2-4 minute video clips that you see about Olympic athletes. These clips give us some insight into the type of person they are and helps to make them a real person in our minds.



As an agent, start with a brief personal introduction–who you are, your past, your family– and perhaps a short comment on why you decided to become a real estate professional or what you enjoy most about being a real estate agent. Don’t sell the second you start talking, saying what you can do for the person watching, etc., or you’ll instantly take on that used car sales persona.



When Hobbs/Herder creates one of these videos for an agent, we talk about things that themes we want to cover, the tone we want to create and develop a basic outline of topics, but we do not script it. If you read or recite a script, unless you are a truly gifted actor, it will come across stiff and uninteresting. When the camera starts rolling, you want to be both personable and professional. Smile…be friendly…and relax. We recommend not looking directly into the camera…but instead just off to the side as if you were being interviewed by Larry King.



It’s fine to use a cue card, where a subtle glance at key words can keep you on target. Don’t be afraid to use your natural humor; the key is to be yourself. The more relaxed and comfortable you are, the better you will come across on video. Record a few practice sessions and critique them with help from friends and family. But remember, it’s more important for your presentation to be authentic and personable than for it to be flawless. When you are ready to record the real thing, do three or four takes and select the best one.



Then post your video on YouTube, your website, in social media, and everywhere else you can think of.

Bullseye! Target Marketing on the Web

Posted by Lore magazine: http://www.loremagazine.com/go/?blog_id=124

Target marketing has been around for ages. And, in today's consumer-centric real estate market, reaching the people who can benefit most from your services is vital to your success.


Real estate coach Rich Rogala of Consistent Clients offers these tips for drilling down to your super-target market and driving them to your website:



Ever wanted to become the local expert for a particular neighborhood in your area? For those of you in smaller towns with less competition, it might be fairly easy to stand out. But it’s awfully difficult to become the local expert for the entire city of, say, Chicago. There are just too many homes and too many sales associates. Plus, if you live on the north side, you may not be an expert on the south side real estate market.



A better solution is to take an area you do know really well, like a neighborhood, development, etc., and focus on becoming the expert for anyone buying or selling a home there.



One way to do this is to grab a domain name with your neighborhood keywords in it. This costs about $10 from GoDaddy or another domain registrar.



Simply go to www.GoDaddy.com and search for a domain using your keyword, along with real estate or home or something similar:



For example: lakeview-chicago



So if I went ahead and grabbed this, I have a domain for homes in the Lakeview neighborhood in Chicago. Can’t get much more keyword rich than that!



The next step is to create a page on your website to hold tons of information on the Lakeview neighborhood--market statistics, average price of homes that have sold, current listings for the area and more. The idea is to capture leads from your website. Make sure you add some kind of opt-in box. Offer to send those who opt-in a monthly update on the area or some other type of valuable information.



Finally, go back to GoDaddy, and forward that domain so it points to the correct page on your main website.



Voila! You have a keyword-rich domain name pointing to an info-rich page on your website. From here, there are lots of different ways you could promote this:



1. Marketing materials. If you sponsor any events in your community, use this domain on your promotional materials instead of your usual website.



2. Create an area for resources. If you write any articles for your blog on this particular neighborhood, add a paragraph or excerpt of the article with a link pointing back to your original post.



3. Send out a mailer to neighborhood residents with a really targeted call to action. Example: Hey Lakeview residents! Ever wanted to know what homes and condos in your neighborhood sell for? Check out your new neighborhood real estate resource-- www.LakeviewChicagoHomes.com--where you can find out instantly.



What are you doing to target your niche?

5 Ways to Promote the Tax Credit and Extension

From Lore Magazine: http://www.loremagazine.com/go/?blog_id=121

Get Started Today!

Earlier this month, legislation was passed that extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time homebuyers until April 30, 2010. In addition, it expands the credit to grant up to $6,500 credit to current homeowners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

We’ve got 5 ways you can promote this to prospective buyers:

1.    Blog about it. Have you worked with first time homebuyers who have a particularly touching story about how they finally achieved the American dream of homeownership because of the tax credit? Tell their story on your blog to inspire other prospective homebuyers.

2.    Make the call. Go back to past customers who bought with you in the past eight years. Let them know that now is the time to take advantage of low prices and a $6,500 tax credit.

3.    Produce a flier. Design an informational flier that explains who qualifies for the tax credit and the benefits. Give prospective homebuyers suggestions for spending their tax credit on home remodeling, upgrading appliances and decorating--or paying down their mortgage! Add your name, company and contact info as well as your logo and tack the fliers onto community bulletin boards at places such as Panera Bread, Einstein Bagel and Starbucks.

4.    Join the Army. The new legislation includes benefits for Armed Services members as well as intelligence service and foreign-service personnel— those who are on active duty and out of the United States for 90 days during any part of 2009 get an additional year to buy their homes, to May 1, 20ll.
In addition, they don’t have to repay the credit if they have to sell their home after fewer than three years occupancy due to official business. Highlight this information and reach out to those in the armed services.

5.    Sponsor a homebuyer seminar. Hold an informational seminar for homebuyers about how to qualify and apply for the tax credit. Hand out an info packet with your current listings, details about the tax credit and more.

For information from the National Association of Realtors about who qualifies click here. 

Do you really think I’m visiting your Facebook profile to look for homes? Really!?!

Posted By NikNik on November 11, 2009: http://www.mytechopinion.com/2009/11/do-you-really-think-im-visiting-your-facebook-profile-to-look-for-homes-really.html

Saturday night brings with it one of my most favorite TV segments…“Really!?! with Seth & Amy”. In this SNL skit, Amy Poehler and Seth Meyers share their snarky take on current affairs. So in the spirit of “Really!?”…I’m going to shed some light on “Real Estate Listings Inside Facebook”!

Let’s start with obvious failures inside Facebook…at the moment!

MyRealEstateListings (there are 2 of them, as well as a few more similarly named cohorts) but they essentially all do the same thing- create a “MyRealEstate” or “MyListings” tab on your profile. You can then click on the tab (when was the last time you clicked on a tab) to view a lack luster interface of your manually entered listings from which you can then decide to click further to obtain details, which lands you on a third party site outside of Facebook. Click for more details, really!?!

My Listings, or Realtor Listing Application, displays your listings on a tab or box on the side of your profile. But again when you click to learn more you are taken to a third party site away from Facebook. Third party site. Really!?!

CenterStage for Real Estate, a failed, failed attempt to charge you $8 for displaying listings inside Facebook. Don’t even get me started! $8, really!?!

Oodle Pro aims to solve the listings inside Facebook issue. The tool can distribute listings to online communities like Facebook Marketplace & MySpace Classifieds. I’m sorry, when was the last time you were on MySpace.  Really!?! Oodle Pro can upload your listings to your Profile and Fan Page, yet they recommend to keep personal and professional identities separate from one another.  Listings on both, or is it one or the other, really!?!  And Oodle Pro will run you $15 a month! Really!?!

I will throw them a small “woot” for displaying links back to social profiles from wherever your listings get posted online.  And I do see great value in listing syndication to numerous online marketplaces and listing aggregators…don’t get me wrong! But the Facebook MarketPlace is not where I’ll be turning to search for my dream home. Really!?! I’ll turn to a reputable source…like the agent, broker, or one of the major real estate portals.

Apparently, the best options…

Posting your listings as status updates on a Fan Page dedicated to your local market, where locals can choose to participate seems like the best choice to me! This strategy is non-invasive, opt-in, and informative. It can even be more friendly and creative since you can add your own take via text in the status bar along with a link to the listing…preferably one that takes you back to the agent/broker blog or site.  Check out the example from Heather Elias.

Now if you don’t host listings on your own domain, the next best option is creating a single property site or posting to Vflyer or Postlets. Once you’ve created a detailed packed site with all the trimmings (local info, pictures, video, etc) you can post the URL to your Fan Page Wall and include a brief message. Some services include an autopost to Facebook feature.

SeeMyListings from Realtor.com is a widget that can be added to your Facebook profile and displays your listings. To view more details you are derailed to a 3^rd party site, but it is a more reputable site (at least in the eyes of consumers) and also displays listings in a much more user friendly manner.  See the example I grabbed from Mariana Wagner’s profile on the left.

Now if you are looking for a more organic way to share listings inside Facebook, I would recommend using photo albums. You can create photo albums of active and sold listings. I have to say, The Rains Team, does a great job of sharing listings via photos on their fan page.  But don’t forget to include a few details about the home, and important contact info.  I also came across Lesley Lambert’s photo of a recent listing via Posterous inside Facebook. She emailed the photo from her phone which was posted to her Posterous site as well as her Posterous photo album inside Facebook.

Last but not least, if you like to have stuff that no one else has you can create a custom tab for your listings with FBML (Facebook Markup Language).  You could brand the landing page with links to your blog or listing sites.  Check out  the Los Gatos Real Estate & Homes Fan Page via Mary Pope Handy. She includes a great deal of area info, market reports and listings with links to her blog. But again, I worry that tabs get looked over. Nonetheless, I know where to look for Los Gatos housing info inside Facebook.

My opinions on all this…really!?!

Personally, if and when I’m ready to move again I wouldn’t go to Facebook to look for listings. I’d go to a resource that rocks…like the agent or broker Website or a national aggregator. I go to Facebook to make connections and build relationships….to chat and find out what’s new in the lives of my friends, family, colleagues and clients! Search listings, really!?!

But if you’re goal is to show everyone the listings you’re currently managing, then go ahead and share them at Facebook too. But consider posting them to a Fan Page dedicated to your market area with links back to you, your site, or your company…not third party sites. Third party sites, really!?!

Don’t fail at implementation! If you post photos about the listing on Facebook don’t forget critical contact info or brief details. No contact info, really!?!

So, what’s your opinion…

• Do you think listings should be posted inside Facebook?
• If so, what’s the best way?
• Where do you post listings ? Profile and/or fan page?

7 Steps for Success

Posted by LORE Magazine: www.loremagazine.com/7-steps-for-success

Is success achieved by trading your family for money? Is success achieved by trading your health for dollars? True and lasting success is accomplished by creating balance in all areas of life and adding wealth to all these accounts on a daily basis. Success is living today with all the zeal, gusto, and zest that you can pack into a 24-hour period of life we have today. Success is clearly not a destination but a daily journey we undertake every day.

Here are seven steps toward success from Dirk Zeller of Real Estate Champions. Use this as a basis for your 2010 business and marketing plan:

Step No. 1.  You must first decide what you want. The truth is we can have anything we desire in life. If your vision is clear, you are assured that you will get there. The problem is we do not have a clear vision and set enough goals. We do not take the time to create the vision.

Step No. 2:  Your goals must be written. Success begins when you grab the pen and paper (or your computer) and craft your ideal life. Successful people think on paper before they act. You must take the time to write your success plan and your goals down on paper.

Step No. 3: Create a time frame for your goal or vision. Set a target for when you'll accomplish it. You have to get your mind in motion to achieve it by a certain time. Without a timeline, you have no goal, you only have a wish. Wishes will only cause frustration.

Step No. 4: Create a list of the series of activities you must do for you to achieve your vision or your goal. As your motivation increases, the better you can clearly write out this series of activities. People will often not take the time to create the list. Planning a vision or goal completely through to create small bite size pieces makes it easier to digest. Successful people evaluate the situation and elicit help and create a plan to lighten the load on all. They then have everyone dive in and begin accomplishing things in bite size pieces.

Step No. 5: Re-check the series of activities to insure they are in the proper order. Organize this into a comprehensive step-by-step plan to achieve the vision or the goal. You need to start with the important and move to the least important. Do not delay, begin the most important item today. Do not move on to another item till you complete the most important item first. There is an order to all activities and tasks. Spend the time planning to create it.

Step No. 6: Don't allow procrastination to set in. The key is to start the momentum today. A primary law of physics is a body in motion will tend to stay in motion. Do not delay getting your body in motion.

Step No. 7: Keep the body in motion daily. Don't neglect to do something daily that moves you closer to your vision or your goal. Constantly ask yourself is this activity I am doing now moving me closer to or further away from my goal?

Once you're moving forward, your vision or goal can stay in motion with a smaller amount of effort.  If you apply these seven steps to your real estate business, you can accomplish any amount of sales you choose to do. The truth in life is you are the one who does the choosing. The market, competition, and interest rates do not effect your choice or outcome. You are the one that does the choosing, so choose wisely.

House passes homebuyer tax credit extension, expansion.

by Ben Martin, blogmaster emeritus (VARBUZZ.com) on November 5, 2009

The Unemployment Insurance bill including the homebuyer tax credit extension and expansion has passed the House by a vote of 403-12 after passing the Senate last night 98-0. The new provisions take effect as soon as President Obama signs the bill, which we expect will be before the weekend. Right click this link and select “Save target as…” to download a chart explaining the difference between this credit and the one set to expire on November 30.




The bill would extend the present $8,000 tax credit for first-time home buyers through April 30, 2010. Current homeowners are eligible for a $6,500 tax credit through April 30, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years. If potential home buyers have a binding contract on or before April 30, they will have until July 1 to close the transaction.



Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.



Here’s a Q&A from NAR about the new credit:



Q. Existing homeowner credit: Must the new house cost more than the old house?

A. No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.



Q. I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?

A. Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.



Q. I am a first-time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?

A. Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you’re within the phase-out range).



Q. I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a non-negotiable price of $825,000. Will I be able to use any of the $6500 tax credit?

A. No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.



Q. I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?

A. Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight, what he did since 3 years doesn’t impact eligibility.



Q. I am an eligible first-time homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?

A. You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.

Social Media Revolution Video: Must watch

http://www.youtube.com/watch?v=sIFYPQjYhv8

“Social Showing”: How Apple’s Video Nano Will Change Social Media and Real Estate Marketing

Posted by Greg Herder on Sep 25th, 2009



Without even realizing it, Apple has unleashed massive changes in the way realtors are both showing and promoting homes.
Within a few days of its release, a 30-something couple had their iPod Nano with them when their agent showed them a home that had a kitchen they loved. They pulled out their Nano and took some video of the kitchen. They proceeded to record each of the homes they previewed. That evening they posted what they shot on Facebook so their friends and family could see what they had been doing that day. Instantly they starting getting feedback, comments and suggestions and, fortunately, their agent was in their Facebook network and was able to join in the conversation as friends and family members posted their thoughts.
The next day the couple made a post on Facebook, thanking everyone who had made suggestions and comments. They said they greatly valued the input they received and had decided to make on offer on the home with the great kitchen. They then called their agent to write up the offer. They told their agent they felt a lot more confident moving ahead because both of their parents thought they were doing the right thing. They also loved keeping their network current on what they were up too.
A new era of real estate has been born! For lack of better terminology, I have decided to call it “Social Showing.” It might not be for everyone, but today the Facebook generation loves getting everyone involved as well as getting comments, suggestions and feedback, especially for major purchases like appliances, cars and homes. You had better get used to it, because it is going viral and it’s going fast. The smart agents are headed to the Apple store today, and they are suggesting that their clients shoot video of the homes at each showing. The agents then post the video on YouTube and send the clients a link and also ask the clients to post the video on their Facebook page. This gives them two ways to get feedback from the people they know.
The Nano was designed from the ground up to shoot video and post it on the web. It is so easy that even the most tech-phobic agents can do it. This is going to move video marketing of homes into the mainstream faster than agents can image. Want to promote your broker open house? Take a quick video of the food you are serving so agents can see what to expect when they arrive there. Record a video update on what is happening in the market and post on Twitter, Facebook and your web site.
At the closing, pull out your Nano and record a video testimonial from your clients and post it on your Facebook page, and ask them to make a comment so it posts to their network as well. This is the ultimate in social marketing, and the agents who lead the way will generate a huge advantage. It won’t be long until agents are adding little professionally branded clips at the beginning and end of these videos that pulls all of their traditional brand identity into the social media world. Now is the time to lead the way and be seen as an innovator in real estate marketing.

Riding the Wave of Change in Your Real Estate Business

By: Brandi Cummings

"The sky is falling! The sky is falling!" This is what many agents felt when people started looking on the Internet for their next home. "The end is near!" This was the response by many when the MLS was made available to anybody with an Internet connection. Technology, the Internet specifically, has forever changed the way people buy and sell their homes.

The real estate market has changed so quickly and completely that there are many real estate agents at a loss for what to do now. Experienced agents that never had a problem attracting new clients through traditional advertising are now finding out that they need to rethink their marketing strategy. New agents are finding themselves in an industry that is in the middle of a transformation. They have been finding that the rules that they just learned about building a successful real estate business are being rewritten before they even have a chance to apply them.

Old Rule: As a real estate agent you have exclusive access to the list where your prospect will find the home of their dreams. Your sellers rely on you to put their house on this list of dreams.
New Rule: Anyone with an Internet connection can search the MLS listing. FSBO's can add their home to the list through any number of sources.

Old Rule: You hold Open Houses so that interested home buyers can see the inside of your seller's home without an appointment. This is also a good way to prospect for buyers.
New Rule: Interested home buyers view digital pictures and virtual tours of homes at their convenience, without an appointment, at anytime of day.

These new rules do change the real estate industry in a fundamental way. They do not, however, mean that the end is near or that the sky is falling. As long as you understand that the new rules exist and what it means for your business, you will be able to ride the tides of change all the way to the bank.

If buyers and sellers do not need real estate agents for the MLS or for viewing houses, what do they need them for? How can agents get prospects to come to them?

At the same time the Internet was changing the way people buy and sell their homes, it was also contributing to a more fundamental change in people as consumers. People are hungry for information and they want that information at their fingertips at all times. A savvy real estate agent will take advantage of this demand for knowledge and information by becoming the source that buyers and sellers come to.

Agents can establish themselves as an expert there to help. By offering reports such as "Ten Things You Must Know Before Selling Your Home" or "3 Mistakes You Don't Want To Make When Buying A New Home" your prospects will come to you. An important aspect of this new marketing strategy is going to be capturing the information of prospects requesting your reports. Whether it be name, address, phone number, email or in the best case scenario all 4 points of contact, make sure you are able to follow up with them.

Here are just some of the benefits of becoming an information source for people that are starting the process of buying or selling a home.

*An agent can start to build a relationship with potential clients based on trust and respect.
*Buyers and sellers seek out the agent instead of the agent seeking out the prospects.
*There is no better quality of lead than one that raises its hand and says, "I would like information about selling my home."
*Agents can set themselves apart from their competition by using non-traditional advertising.
*By establishing a good rapport and helping potential clients find the information they need, they will come to you when they are ready to make their move.

The real estate industry has been undergoing a fundamental change. Some agents may have a doomsday view of these changes and at this point real estate agents have two choices. They can simply wait for the end to come or they can adapt with this evolving market and ride the wave of change all the way to the bank.

Recruiting a Younger Generataion

Recruiting Gen x Gen Y Professionals

A great article from Lore Magazine:

Recruiting a Younger Generataion

Tips for hiring Gen-X and Gen-Y

Recruiting is hard work. “You can occasionally pluck the seasoned, successful sales associate from a different company but there has to be a reason for that person to leave,” says John Downey, executive vice president of Coco Early Associates in Massachusetts and New Hampshire. In addition, the ever-changing market is requiring sales associates to be more and more tech savvy in order to meet the needs of the next buying generation.

That’s why Downey’s brokerage decided to make a shift to recruiting younger professionals, in addition to seasoned agents. The company currently has six 20-something sales associates. “This is the best possible time to become a real estate professional as you’re forced to work hard and truly build a network that will keep you going,” says Downey.

That said, “We know the data—the average age of a sales associate is 54—and we don’t look down on that. We’re not bringing in new 45 year olds to take the place of 55 year olds,” says Downey. “We’re bringing in younger agents for a mutually beneficial relationship with veteran agents.” Younger agents can help train the older agents in social networking and technology while the older agents can serve as mentors to teach the business.

Another interesting thought: When a person in their mid to late 30’s, 40s and 50s go on Facebook, they reconnect with old friends. A 25-year old never has to reconnect, he or she has been in contact with friends since college. “It’s a whole different world,” says Downey.
Here’s what he does to reach the younger generation.

1.    Post to Job Boards. Coco Early Associates post job listings on local online college boards. “We post to all the surrounding schools and some that are a bit of a distance since many potential agents may live here but go to school a little ways away.” Downey also posts to Craigslist.org and Indeed.com, which feeds sites such as Monster.com and LinkedIn.com.

2.    Consider family. “I’m 54 and my own kids are in their mid-20s. If the average age of a Realtor today is 54, then we want to get the message out to our agents to talk to their kids about a career in real estate,” says Downey. “What are your kids doing and what are their friends doing? Let’s take advantage of the bad job market and recruit those right out of college.”

3.    Use the viral effect. “One of our top agents is Vincent. He’s 26, and he helped to recruit one or two people,” says Downey. Offer incentive to younger agents to recruit others who have the same ambitious attitude as your top young sales associate. And, understand that they do business differently than you do. If it works, then don’t mess with it. “I sit about 15 feet from Vinny, and I didn’t realize so many people were named “Dude,” says Downey with a laugh. “But these are his customers, and they’re buying $250,000 plus homes.”

4.    Offer a unique, tech-oriented service. Coco Early Associates offers an online auction service for all of its listings. At www.cocoearlyassociates.com/bid-a-home/index.php, interested buyers can place a non-binding bid on a Coco Early listing. “We have close to 500 listings and as a rider to every sign, we let prospective buyers know they can make a bid online.” He says that many people, especially first-time homebuyers, are afraid to make an offer because it’s so official. This gives buyers a non-threatening way to get conversation going, which is Downey’s goal. “We just want to get two sides talking. Younger agents love this tech-savvy service.”

Coco Early Associates also has an online yard sale function. “When we list a home, we’ll sell homeowners unwanted items online. We have 300-400 items for sale on our website.”

Overall, Downey says he’s pleased with the recruiting campaign. “We’re a mentoring company. We assign these new folks to an experienced agent, who helps train the sales associate on the basics of relationship building. Then, the experienced person learns from them about the online aspect of the business,” he says.

One side benefit-- “If we hire a 26-year-old, how old are his or her parents? They’re generally mid 50s and beginning the process of downsizing. So, we’re tapping into two markets— first-time homebuyers and almost retirees,” he says. “We’ve hit a homerun.”

Business Planning Time!

A great video posted by Lore magazine.

A Day in the Life of a Gen X Real Estate Professional

I have been inspired by the number of young people pursuing Real Estate as their profession of choice. The stereotypical real estate agent is a 55 year old woman, working part time. Quickly, this stereotype is changing at the hands of Gen X Gen Y professionals, graduating college and choosing Real estate as their first and only career.

I just happen to be one of those young people: smack dab in between Generation X and Generation Y. I chose Real Estate as my profession when I was 26 years old: recently off active duty from the Navy, recently married, and weeks after moving to a town where I knew two people: my new husband and my REALTOR. I have been proud to develop my business as a thriving, stable business over the years and I am excited about where it is heading. I am one that needs to be challenged, and with all these other young people coming into the business, I am finally challenged. I love getting together with them to talk about what we are doing, how we are doing it and how things are evolving. Our industry will have an entirely different feel in less than 5 years.

I firmly believe that the future of real estate exists in a huge generation gap. The movers and the shakers in the industry are usually the ones with the most experience. Quickly, the movers and the shakers in the industry are now the ones with the most innovative ideas. Many of these people are the Gen X, Gen Y agents. They bring to the picture lightning fast communications, innovative perspectives and criteria for rating properties, valuable tools for themselves and their clients, plus, the personal touch that many have been lead away from.

I would love to have an office with a great balance of Baby Boomers as well as Gen X Gen Y. I think we all have a lot we can learn from one another, but I also think this will bring some challenge over the next few years as the "standards" of the industry evolve.

I read an article from Lore Magazine this morning that sparked my interest in this subject today. I have included a link to it and a copy of it below.

Where do you see the industry moving?

From http://www.loremagazine.com/go/?blog_id=101:

Blackberry—check. Texting furiously—check. Mobile office—check. Welcome to the world of the Gen X and Gen Y real estate professional.The young professionals are rarely seen without a Blackberry Smartphone in hand. They have an office, but spend most of their days on the move. Grounded in technology, they communicate with hundreds of other 20- and 30-somethings every day via text messages. They use virtual faxes and the Internet to negotiate contracts. They are the new breed of real estate professionals and they specifically entered real estate with one goal—turning it into a lifetime career.While the average age of Realtor® is 54 and female, according to the National Association of Realtors® (NAR), the young men with Coco, Early & Associates are part of a new trend in an industry that’s seen tremendous change in the past few years. Facebook, MySpace, Linked In, blogs and even Twitter are their information highways. They maintain access to their clients 24-hours a day, 7-days-a-week because that’s how their generation works. One or two young males any realty firm is not noteworthy, but when six young men, with college degrees, recently took on the role of professional sales associates at the Massachusetts-based Coco, Early & Associates real estate firm, people began to notice. “They bring a youthful enthusiasm and technical savvy to our firm,” says Blaise Coco, co-owner. “That mixes perfectly with our more experienced professionals, [who are] wonderful mentors to these younger [sales associates], while these young guys can certainly teach us all about the ways in which their generation communicates and works.”Starting Early“I was attracted to the professional because it’s really self motivating,” explains Vinny Forzese, age 26. “It’s not a 9-to-5 desk job, and I get great satisfaction when I place someone in their new home. Matthew Trudel, age 29, has found that many friends in his age group are searching for their first home. He’s had success in connecting members of his generation to homes because he balances the human touch with the technology. He regularly sends out blanket text messages to 200 or so of his “closest” friends. He uses Facebook to highlight new properties for sale and even blogs. “In college we all texted each other and had Facebook pages. It seems perfectly natural for us to communicate this way,” says Trudel. “It’s not time consuming, I keep my messages brief. What’s most important is keeping up regular contact with your friends. So, when I have a new listing or hear about a great property, I use instant communication and Facebook to get the word out.”Their generation is also very mobile. Friends from college may now live anywhere in the country. Technology has made the whole world feel smaller and these young professionals embrace this technology when it comes to helping a customer relocate. They make the most of the buyer’s time and resources sending out virtual tours across the country and across the world.The Next WaveUnderstanding the X-Y generation makes these young men great assets to their firm. “Our generation does not wait for a [sales associate] to tell them about a neighborhood and they don’t drive by a potential property,” says Doug Early, age 25. “Our generation heads right to Google Earth. They type in the address and get a view of the house, neighborhood and even commuter routes. They use the Internet to look up similar sales and home values. They do a lot of the research that the [sales associates] do. They are informed buyers.”However, warns one young professional, “You can get good information from the Internet,” says Jeff Fragala, age 26, “but not complete information. Pictures and virtual tours often don’t do a property justice. Information online may not be up-to-date and often a potential buyer will have to spend hours on the Web using several sites and still see only a partial list of properties available in their market and price range. We can work with them through the Multiple Listing Service to get them all the listings, the new listings and then provide them with the personal service they need. Buying a home is a big decision and one that comes with stress. I work with people to guide them through the process and advise them on their options along the way.”“I am very focused on my work and take this opportunity seriously,” concludes Angel Boria, age 24. “For me, this a dream career and one that’s rewarding on many levels. It’s very satisfying to know you helped some realize the dream of owning their own home.”

Avoid MRIS Fines: Do's and Don'ts to help you with your Short Sales.

From www.Mris.com:

Compensation:
• Do enter Compensation as a percentage of the gross or net sales amount or enter a dollar amount.
• Do make an unconditional offer of cooperation and compensation.

• Don’t enter a compensation amount or indicate in the remarks that compensation depends or is contingent upon third party approval.

Status:
• Do update listing status to Contingent upon acceptance/ratification of an offer.
• Do update the status of a listing pending third party approval to Contingent Contract.

• Don’t keep a property in ACTIVE status after accepting/ratifying an offer because the seller or any third party requests that the status remain active.

Listings:
• Do enter all property information accurately.
• Do make all status changes and other updates within 48 hours, weekends and holidays excluded.
• Do update Contingency Expiration Dates or Settlement dates when the dates change or have passed.
• Do use the Tax ID Autofill feature when entering listings.

• Don’t try to manipulate Days on Market, using tax and address information.
• Don’t enter two or more active listings for the same property unless the property is both for rent and for sale.

Remarks:
Internet (Public):
• Do include information about the property only.

• Don’t include any of the following information: commissions, showing contacts, agent or broker names, phone or fax numbers, web site or email addresses, virtual tours, alarm codes, lockbox codes or other security measures.
• Don’t include any links, active or animated content, or other comments containing HTML or programming code.

General (Agent) /Farm:
• Do enter information intended for cooperating brokers, such as special showing instructions, contacts or phone numbers, special contract information, special compensation information, properly excluded prospects, virtual tours, broker or agent web sites and email addresses. Foreclosure or Auction listings may reference a third party web site (such as HUD, VA) where contracts must be registered.

• Don’t include any Lockbox codes or other security system information without Seller’s permission.

A copy of the Rules and Regulations as well as other information on MRIS Compliance policies may be found at:
www.mris.com/compliance

But the Bank hasn't approved it yet...

I hear this too many times: agents thinking that a sales contract is ratified until the Bank approves the short sale. Well, let me tell you....that's wrong.

When a purchase contract includes a Short Sale Contingency Addendum, which gives the buyer some options on voiding the contract if deadlines are not met, it doesn't create a situation, when it comes to ratification, any different than if there was a Home Inspection Contingency Addendum, or a Radon Inspection Contingency Addendum. The Short Sale contingency is just a contingency. A tool for one party to use to void the contract if needed.

The contract is ratified when the seller (the people) and the buyer (the people) agree to all the terms of the sales contract AND, because the contract is ratified, the good faith deposit (or Earnest Money Deposit (EMD)) is due.

Want an exception?: you have to include that in the contract. For example, if you do not want the EMD due until the Bank Approves the short sale (otherwise known as Third Party Approval), then you need to write that into the contract and have mutual agreement on this. If you don't want to do the home inspection until the Bank Approves the Short Sale, you have to write that in as well.

Virginia requires Earnest Money to be deposited quickly. My agents are required to turn in their EMD within 24 hours of a contract becoming ratified. Do you have standards like this in your office?

ALSO: MRIS rules require you to update your listing to represent the current status within 48 hours of it changing. I don't care if the bank has not approved the short sale, there is a ratified contract and the status in the MRIS needs to reflect that (CONTRACT, Cntg/No Ko, Cntg/Ko, TEMPOFF, etc). The seller cannot just decide that he wants to leave it "Active" so they get more offers. It's not the seller's decision what the status is in MRIS. Change your listings to reflect their correct status right away.

Here's a Video from Lem Marshall, VAR's Special Counsel, on the subject:

http://www.varealtor.com/portals/0/webcast/ShortSales/index.html

Buyers agents: Be careful how you ask.

I recently reviewed a sales contract where the buyers agent submitted an addendum as a result of a home inspection that their buyer performed the day prior.

This is what the addendum said: and I quote

"Now, therefore, it is mutually agreed that the following provisions be added:

The Home Inspection Contingency is removed:

1. Roof has missing shingles.

2. Small leak under kitchen sink

3. Grounding strap is not connected

4. Refrigerator water dispensor makes noise

5. Garage door opener battery is dead

6. Gutters full of leaves

7. Tree branches touching house"

and the list went on.

Funny: no where in this addendum was a single repair requested. This addendum was simply a list of everything that was found wrong, and, as a great benefit to the seller, the buyer removed the contingency without asking the seller to do anything. When the buyer signs it, he agrees that these statements are true, when the seller signs it, he agrees that these statements are true.

That's wonderful...both the seller and the buyer agree that these items exist.

BUT>>>>>>>

What do you think the buyer thought was going to happen? You guessed it, they thought the items were going to be repaired because this is what their agent told them (and assumed) was going to happen. Now, when the buyer goes back to do their final walkthrough and none of these items have been addressed, what is the buyer going to do?

First, they look at the seller, then, after a long conversation between the buyers agent and the listing agent, the listing agent explains that the buyer never did request any repairs. Now who do they look to? Their agent: the one who was supposed to be looking out for their best interest. Guess who is going to be getting things repaired?

It is so important, when you are representing a client, to ensure that you are writing your addendums correctly. You need to ensure that the addendum states exactally what the buyer wants and leaves no room for interpretation.

What this addendum should have said was:

"1. Roof has missing shingles. Seller will replace all missing shingles with shingles to match the rest of the roof."

See how this is different?

Some tips to agents:

1. Never use the word "requests" If the seller signs this addendum, they
are just agreeing that the buyer made a request, they are not agreeing to do
anything.

2. Always use commands: Seller will, Buyer will, Listing agent will,
etc

3. If you want a professional doing the work, you need to specifically ask
for that.

4. If you want receipts provided at closing, you need to specifically ask
for that.

As licensed agents, it is our responsibility to present a realistic picture of what happend, what is happening and what will happen. Be sure you review your addendums before sending them on...or else you might be digging yourself a hole.