This is an amazing story of an ordinary person who is truly extrordinary. How can you not be inspired by a story like this? I can't say anything more, you simply have to watch this...
Tuesday, February 26, 2008
Sunday, February 24, 2008
The Skinny on the Economic Stimulus Package
If you were wondering abuout the nitty-gritty details of "what's in it for you" concerning the stimulus package, well here you go...
Saturday, February 23, 2008
5 Listing Presentation Pitfalls to Avoid
This is a review and synopsis of an article that was published on 2/1/08 in REALTOR® Magazine written by John D. Mayfield titled Smooth Selling - Avoid These 5 Listing Presentation Pitfalls along with some of my own thoughts included herein.]
Any real estate practitioner, new or seasoned, can make some common mistakes during a listing presentation. A listing presentation is like a job interview. You are applying to sellers for the chance to sell their property. You role and goal is to try to convince them that you are the best real estate agent for their needs.
While there are common and necessary elements to every listing presentation, according to John Mayfield, what differentiates a great presentation from all the others is the ability an agent has to make your presentation fit the unique needs and personalities of the prospective clients you are meeting with.
The author outlines 5 common mistakes to avoid during a listing presentation.
1. Failing to recognize unique and individual personality traits. Make sure you take the time to figure out the personality types of your potential clients. By understanding the personality of the people you are dealing with you can make sure you correctly deliver your presentation to fit their style. For instance, if a person is analytical, you would make sure you give them a lot of details. If a person, however, is emotional you may want to tone down the details and speak on a level that engages their emotions. Painting word pictures and interesting descriptions speak well to this personality type.
How you do figure out a person’s personality type? One effective way is to listen closely to the types of questions they ask. If they ask lots of detailed questions it is a dead-ringer that they are analytical.
2. Not using quality presentation materials. Make sure you give your prospective clients materials (like your CMA, any reports you might use, charts/graphs, etc.) that are on good clean quality paper with clear photos and presented in a manner that is superior in effect and quality.
3. Not using good listening skills. The author quotes Dale Carnegie who said that we can win more friends in two weeks by showing we have a genuine interest in them than we can in two years by trying to get them to be interested in us. How true this is! One saying I heard years ago was: “if you want a good friend, learn how to be a good friend”.
I know that very often I have to stop myself from thinking ahead in the middle of a conversation. Too often most of us are more focused on what we have to say than we are focused on what the other person in the conversation has to say. By slowing down and taking the time to listen, we show we care. As the saying goes, “people don’t care how much you know, until they know how much you care.”
We have to remember that the listing presentation is about the potential client and not about us. People can easily tell if we care for them or if we really only care about ourselves.
4. Believing that one size fits all. Though we live in an age of great and easy-to-use technology, many real estate agents tend to develop and use one type of presentation for all their appointments. This is a mistake. Though each presentation can have some common elements, presentations should be different for first time homebuyers vs. customers/clients seeking to purchase or sell a vacation home. Be careful to deliver the right pitch depending upon the needs of your audience.
5. Not Following through. If you spent a lot of time preparing a presentation, make sure you use it. Don’t “wing it”. Most prospects appreciate and are impressed with a well-developed presentation. Also, like the old adage says: “A picture is worth a thousand words”. Pictures, charts, graphs, reports, etc., can have great appeal provided they aren’t over-used. Also, make sure that your presentation doesn’t get in the way of your ability to connect with the prospects. Sometimes, the presentation materials can get in the way of establishing a good connection with other people. Don’t let this happen. A presentation with reports, CMA, charts, pictures is only a part of the overall presentation you are making about yourself to the prospect.
My advice is that you do everything you can to establish a good rapport with the prospect. You might think this goes without saying; however, sometimes a real estate agent can forget this in the midst of a presentation. Be authentic, be you, and show them that you are a person of integrity- someone they can trust. Part of having integrity is being able to accurately represent yourself, the market and the services your agency can offer. Another important part of integrity is being able to deliver on your promises. Make sure you can do these things. Ultimately, you are only as good as your word. As a matter of fact, all you really are in life, in the eyes of others, is your word and reputation. It is so important that when people think of your name they associate you with being one of those people in life they can trust.
Lastly, make sure the presentation, as well as the listing, once you have successfully obtained it, is all about meeting the needs of our prospective clients, not yours.
Friday, February 22, 2008
Quote of the Week
"An average person with average talent, ambition and education, can outstrip the most brilliant genius in our society, if that person has clear, focused goals." - Brian Tracy
Don't Fear Falling Prices Says Expert
The following article appeared today in REALTOR® Magazine Online:
Yale Professor Robert Shiller, whose Case-Shiller 20-city home price index has become an industry standard, says people shouldn’t fear gradually falling home prices.
"There's nothing troubling about a gradual correction of home prices. If we keep our incomes at the current level and home prices go down we are richer, we can buy more housing," Shiller says.
But if home prices fall suddenly, Shiller says that could undermine housing as well as consumer confidence and the economy.
There has been a misperception that houses will constantly appreciate, Shiller says. "Sometimes people will try to imagine that we can have both high home prices and affordable housing. But I can tell you that doesn't add up," he says.
"You either have high home prices or lower home prices. And lower home prices are what we want, and people shouldn't be afraid of that," Shiller says. "Most of us care about our children and grandchildren, and these people have to buy houses so why would we want high home prices? We want economic growth, we don't want high home prices."
Source: Reuters News, Lynn Adler (02/21/08)
Yale Professor Robert Shiller, whose Case-Shiller 20-city home price index has become an industry standard, says people shouldn’t fear gradually falling home prices.
"There's nothing troubling about a gradual correction of home prices. If we keep our incomes at the current level and home prices go down we are richer, we can buy more housing," Shiller says.
But if home prices fall suddenly, Shiller says that could undermine housing as well as consumer confidence and the economy.
There has been a misperception that houses will constantly appreciate, Shiller says. "Sometimes people will try to imagine that we can have both high home prices and affordable housing. But I can tell you that doesn't add up," he says.
"You either have high home prices or lower home prices. And lower home prices are what we want, and people shouldn't be afraid of that," Shiller says. "Most of us care about our children and grandchildren, and these people have to buy houses so why would we want high home prices? We want economic growth, we don't want high home prices."
Source: Reuters News, Lynn Adler (02/21/08)
Wednesday, February 20, 2008
Helping Buyers in the Credit Crunch
Here's a link to an excellent interview on Inman TV with the CEO of Fillmore Real Estate in NYC. He offers some excellent insights in the second half of the interview about helping buyers obtain funds in spite of the current credit crunch and he has some great predictions (not limited to the NYC market) about the overall market for this year and 2009. The total interview is 6:29 minutes.
Here's the link to the interview: http://www.inmantv.com/?p=139
To your success...
-Ross
Here's the link to the interview: http://www.inmantv.com/?p=139
To your success...
-Ross
Existing Home Sales Will Hold Steady This Year and Begin Upward Pricing Trend!
NAR’s Chief Economist, Lawrence Yun, is currently calling for a continuation of soft market conditions for existing-home sales in the months ahead, with improvement expected by the second half of this year. Based on his article titled “Existing-Home Sales to Hold in Narrow Range, Then Begin Upward Trend”, dated 2-7-08, available on NAR’s website.
Yun says in this article, that despite the lowest mortgage rates in a generation, real estate sales activity will remain soft the first half of this year. “Household formation was only half of what it should have been last year given the demographics of a growing population and sustained job growth, so there clearly is a pent-up demand from buyers who are on the sidelines.”
My opinion (Ross, that is) is that pent-up demand is becoming significant and once good news is listened to there will be a good amount of sales activity, even on the local level. Once people calm down and see that the policies put in place by the Federal Reserve and Congress are working (I’m talking about the rate cuts and stimulus package), they will see that there has hardly ever been a better time to buy. Unfortunately, most people are the “seeing is believing” type so that means that until later this year, when the measures put in place will begin to have their full effect, they won’t even see the buying opportunities that currently exist. That’s too bad, because many will miss the best opportunities available right now. However, the “herd sentiment” (the opinions of masses of people usually based upon fear, not reason, will invariable hurt them because of the inherent illogic that guides their decision making) won’t allow people to move forward at this time.
Lawrence Yun also made a very interesting observation in the same article when he said, “Existing-home sales have moved narrowly since last September, but when the full impact of higher loan limits for conventional mortgages begins to impact the market there is likely to be a notable rise in home sales and prices. If higher limits are enacted very quickly, we’ll see a faster and more meaningful recovery by expanding safe, affordable financing in high-cost areas- that, in turn, would help stimulate overall economic activity."
Lawrence Yun also said that areas with a high prevalence of subprime lending activity will continue to feel downward price pressure. However, in most other areas where people’s abilities to afford housing exist and is growing, there will be moderately higher home prices. Yun doesn’t state exactly when this will happen; however, it will probably be in 2009, based upon other timeframes he gives.
Yun says in this article, that despite the lowest mortgage rates in a generation, real estate sales activity will remain soft the first half of this year. “Household formation was only half of what it should have been last year given the demographics of a growing population and sustained job growth, so there clearly is a pent-up demand from buyers who are on the sidelines.”
My opinion (Ross, that is) is that pent-up demand is becoming significant and once good news is listened to there will be a good amount of sales activity, even on the local level. Once people calm down and see that the policies put in place by the Federal Reserve and Congress are working (I’m talking about the rate cuts and stimulus package), they will see that there has hardly ever been a better time to buy. Unfortunately, most people are the “seeing is believing” type so that means that until later this year, when the measures put in place will begin to have their full effect, they won’t even see the buying opportunities that currently exist. That’s too bad, because many will miss the best opportunities available right now. However, the “herd sentiment” (the opinions of masses of people usually based upon fear, not reason, will invariable hurt them because of the inherent illogic that guides their decision making) won’t allow people to move forward at this time.
Lawrence Yun also made a very interesting observation in the same article when he said, “Existing-home sales have moved narrowly since last September, but when the full impact of higher loan limits for conventional mortgages begins to impact the market there is likely to be a notable rise in home sales and prices. If higher limits are enacted very quickly, we’ll see a faster and more meaningful recovery by expanding safe, affordable financing in high-cost areas- that, in turn, would help stimulate overall economic activity."
Lawrence Yun also said that areas with a high prevalence of subprime lending activity will continue to feel downward price pressure. However, in most other areas where people’s abilities to afford housing exist and is growing, there will be moderately higher home prices. Yun doesn’t state exactly when this will happen; however, it will probably be in 2009, based upon other timeframes he gives.
Very interesting stuff, isn’t it? That’s why we have to know what is going on. Without knowledge we have no direction and are defeated in our purposes.
Thursday, February 14, 2008
This Ad is All About You! - REALTORS®
In case you ever wonder what value you add to peoples' lives as REALTORS®, this ad will remind you of why you are important. Enjoy!
Wednesday, February 13, 2008
Just In! - More News on the Economy
Bernanke: Housing Rebound Coming
U.S. Sen. Pete Domenici (R-N.M.), after a private meeting with Federal Reserve Chairman Ben Bernanke, said the central bank chief anticipates signs of a rebound in the housing market by the end of 2008. Concerns remain that the market downturn will cause an economic recession, which prompted the Fed to cut interest rates recently. Meanwhile, despite an "unusually uncertain" economic outlook, San Francisco Fed President Janet Yellen says the country will avoid an "outright recession." A survey of economic forecasters by the Philadelphia Fed indicates slightly less than 50-50 odds of a recession.
Source: Investor's Business Daily (02/13/08)
U.S. Sen. Pete Domenici (R-N.M.), after a private meeting with Federal Reserve Chairman Ben Bernanke, said the central bank chief anticipates signs of a rebound in the housing market by the end of 2008. Concerns remain that the market downturn will cause an economic recession, which prompted the Fed to cut interest rates recently. Meanwhile, despite an "unusually uncertain" economic outlook, San Francisco Fed President Janet Yellen says the country will avoid an "outright recession." A survey of economic forecasters by the Philadelphia Fed indicates slightly less than 50-50 odds of a recession.
Source: Investor's Business Daily (02/13/08)
Watch This and Be Inspired!
This is one of the most awesome and wonderful inspirational stories I've ever seen. I strongly encourage you to see this video. Warning! Be prepared to use some kleenex.
Economic Adjustment - Not Doomsday!
Spinning the Wheels
by Lawrence Yun, Chief Economist, NAR Research
Though unlikely given abundant pent-up demand, we are faced with the possibility that the housing market could spur a vicious cycle. The current market is fragile due to excessive pessimism among potential home buyers. A lack of buyers pushes up inventory. High inventory depresses home prices. Falling home prices raise foreclosures. Higher foreclosures lead to further pessimism among potential home buyers. The cycle starts again.
This situation, driven by a lack of buyer confidence, not only impacts homeowners and the housing industry but could easily spread to the broader economy. Any further weakening in the housing market and its related housing wealth impact will likely throw GDP growth into negative territory -- by a full two percentage points. That could push the economy into a virtually “no-growth zone” and very close to an economic recession. Why are buyers hesitant?
Obviously each household makes its own decision as to whether or not it’s time to purchase a home. But there are several major factors that may be holding buyers back.
Anticipated lower home prices are holding back many people from buying a home now. Foreclosures will continue to rise in 2008. Rising foreclosures also push prices downward. In addition, the psychological effect of rising foreclosures affect people’s outlook on housing.
Anticipated lower interest rates are also restraining potential buyers. It is widely believed that the Federal Reserve will be cutting interest rates in the next two meetings of the Federal Open Market Committee. While there is no direct relationship between a Fed rate cut and mortgage rate changes, many consumers perceive that mortgage rates will fall with the later cuts. I should note here that NAR advocates a one-time large rate cut rather than a series of small rate cuts in order to end the delay in home buying.
Subprime lending has virtually disappeared since August, 2007. It had comprised about 20% of mortgage originations. While some subprime lending will return, it will do so with improved underwriting standards, a stricter and sounder regulatory environment, and with proper pricing of risk. But the timing of its return remains very uncertain. A recent pick-up in FHA loan endorsement is very encouraging in bringing some would-be subprime borrowers into loans with much safer interest rates and in helping some homeowners refinance out of the riskier subprime loans.
The jumbo mortgage market is not functioning. The current conforming mortgages average about 6%. Based on historical trends, rates on jumbo loans would be about 6.2% or 6.3%. Rather, the rates are closer to 7% due to the investor fear of anything U.S. mortgage that does not have a (perceived) backing of the U.S. government. Any rational home buyer will balk at such a higher interest rate.
How to stop this vicious cycle? Any boost to buyer confidence will have a significant impact in reviving the housing market and in lifting the economy. As I mentioned briefly last month in this column, one policy measure that can lift buyer confidence is raising the GSE (Fannie Mae, Freddie Mac) loan limits. A simple lifting of the loan limit from its current $417,000 to $625,000 would enable more households to enter the housing market using a conventional mortgage. The direct higher sales would likely induce other hesitant buyers into the marketplace. More home sales will lower inventory and thus strengthen home prices. Any strengthening in home prices could possibly have the biggest impact in lowering foreclosures.
What does that mean in “real life?” We estimate raising the GSE loan limit to $625,000 will result in:
+348,000 additional home sales
+$44 billion in increased economic activity
+$274 to $411 per month savings in interest payments for consumers who get new “GSE jumbo” loans versus current private jumbo loans
+potentially 500,000 refinancings of jumbo loans at lower interest rates
+a reduction in the national months supply of homes on the market by one month
+strengthen home prices by two to three percentage points
+a reduction in the number of foreclosures by 140,000 to 210,000
All this will help improve our economy. Each home sale contributes to GDP. In 2001, a typical first-time home buyer spent $3,500 on furniture, carpet, painting, faucets, and other items after purchasing a home. Trade-up buyers spent $5,000. Obviously those amounts would be greater today – conservatively, I’d say the average would be $4,500 There is also income generated by real estate services (moving companies, mortgage lending, inspection, appraisers, etc.), estimated to be about 9% of the home sale price. A $417,000 home sale generates $37,500 in direct economic activity.There is also the multiplier effect. The home inspector who earned a fee on that home sale goes out to dinner at a restaurant. The owner of that restaurant buys a plasma screen TV. The TV salesperson takes his/her sales commission and takes a vacation. The vacation resort hires additional workers. Those workers will buy a home
...It’s another cycle – but not a vicious one.
Recession or No Recession??
According to a New York Times article published 2/12/08, the White House predicted on Monday 2/11 that the economy would escape recession.
Edward Lazear, Chairman of the White House Council of Economic Advisors stated “I don’t think we are in a recession right now, and we are not forecasting a recession”. Mr. Lazear went on to say that the plunge in housing and mortgage markets had yet to hit bottom and that growth would be low in the first half of 2008.
Administration officials are counting on the $168 billion economic stimulus package that passed Congress last week along with the Federal Reserve’s recent cuts in the short-term interest rates to stop the slide into recession and cause the economy to rebound sometime this summer. The administration forecasts that the economy will grow 2.7 percent this year. A number of economists think that economic growth will be more modest. Also, some economists are convinced that we are already in a recession while others disagree.
The Federal Reserve is predicting that the economy will escape a true recession (defined as a broad-based economic contraction in activity that lasts for at least two back-to-back quarters). However, the Fed is expecting a slower growth rate in 2008 than the administration is calling for.
Edward Lazear, Chairman of the White House Council of Economic Advisors stated “I don’t think we are in a recession right now, and we are not forecasting a recession”. Mr. Lazear went on to say that the plunge in housing and mortgage markets had yet to hit bottom and that growth would be low in the first half of 2008.
Administration officials are counting on the $168 billion economic stimulus package that passed Congress last week along with the Federal Reserve’s recent cuts in the short-term interest rates to stop the slide into recession and cause the economy to rebound sometime this summer. The administration forecasts that the economy will grow 2.7 percent this year. A number of economists think that economic growth will be more modest. Also, some economists are convinced that we are already in a recession while others disagree.
The Federal Reserve is predicting that the economy will escape a true recession (defined as a broad-based economic contraction in activity that lasts for at least two back-to-back quarters). However, the Fed is expecting a slower growth rate in 2008 than the administration is calling for.
President Bush remarked, in a letter sent to Congress following his report on the economy on Monday 2/11, “Americans should be confident about the long-term strength of our economy, but our economy is undergoing a period of uncertainty”.
William Poole, president of the St. Louis Federal Reserve Bank stated on Monday, “I think the best bet is that we will not have a recession”.
William Poole, president of the St. Louis Federal Reserve Bank stated on Monday, “I think the best bet is that we will not have a recession”.
Tuesday, February 12, 2008
Successful Negotiating Technique by One of the Very Best!
In my opinion, David Knox is one of the very best trainers ever in real estate. Here is a small, but excellent, sample of his sage advice. The bottom line is that attitude, even in negotiating, very often determines your success.
To your success...
-Ross
To your success...
-Ross
Monday, February 11, 2008
NAR Hails Passage of Economic Stimulus Package
NAR Hails Passage of Economic Stimulus Package to Help Jumpstart Housing Market
WASHINGTON, February 08, 2008 -
The National Association of Realtors® congratulated the U.S. Congress for quickly passing a national economic stimulus package and thanked President George W. Bush for his leadership and willingness to promptly enact legislation that will help thousands of families, the housing market, and the U.S. economy.
“We believe the economic stimulus bill that Congress sent to the president today is strong legislation that will quickly impact the nation’s families and economy,” said NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “We are pleased that both the Federal Housing Administration (FHA) and the Fannie Mae and Freddie Mac (GSE) loan limits have been increased, even if only temporarily. This will be a major stimulus for the housing industry and for people who want to own a home.”
Increasing FHA loan limits will help an additional 138,000 Americans achieve the dream of homeownership and will allow nearly 200,000 homeowners to refinance and potentially keep their home, according to NAR research. In addition, NAR believes that increasing the loan limits for Fannie Mae and Freddie Mac will bolster the severely stressed housing finance market by immediately infusing much needed liquidity into the nation’s mortgage market. “While such an increase will not solve the full range of housing challenges, it will play a vitally important role in improving the nation’s economy and making the dream of homeownership more attainable for thousands,” said Gaylord.
An economic impact study conducted by NAR earlier this month estimated that increasing the GSEs’ conforming loan limits would result in as many as 500,000 refinanced loans and could help reduce foreclosures by as much as 210,000. In addition, over 300,000 additional home sales could be generated, housing inventory would be reduced and home prices would be strengthened by two to three percentage points. “These are real results and will have an immediate and sustainable impact for families across our country,” said Gaylord.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of residential and commercial real estate industries. NAR is the leading advocate for homeownership, affordable housing and private property rights.
WASHINGTON, February 08, 2008 -
The National Association of Realtors® congratulated the U.S. Congress for quickly passing a national economic stimulus package and thanked President George W. Bush for his leadership and willingness to promptly enact legislation that will help thousands of families, the housing market, and the U.S. economy.
“We believe the economic stimulus bill that Congress sent to the president today is strong legislation that will quickly impact the nation’s families and economy,” said NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “We are pleased that both the Federal Housing Administration (FHA) and the Fannie Mae and Freddie Mac (GSE) loan limits have been increased, even if only temporarily. This will be a major stimulus for the housing industry and for people who want to own a home.”
Increasing FHA loan limits will help an additional 138,000 Americans achieve the dream of homeownership and will allow nearly 200,000 homeowners to refinance and potentially keep their home, according to NAR research. In addition, NAR believes that increasing the loan limits for Fannie Mae and Freddie Mac will bolster the severely stressed housing finance market by immediately infusing much needed liquidity into the nation’s mortgage market. “While such an increase will not solve the full range of housing challenges, it will play a vitally important role in improving the nation’s economy and making the dream of homeownership more attainable for thousands,” said Gaylord.
An economic impact study conducted by NAR earlier this month estimated that increasing the GSEs’ conforming loan limits would result in as many as 500,000 refinanced loans and could help reduce foreclosures by as much as 210,000. In addition, over 300,000 additional home sales could be generated, housing inventory would be reduced and home prices would be strengthened by two to three percentage points. “These are real results and will have an immediate and sustainable impact for families across our country,” said Gaylord.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of residential and commercial real estate industries. NAR is the leading advocate for homeownership, affordable housing and private property rights.
How To Achieve Your Goals Now!
Goals are important! So important that you can't be successful without achieving them. Here's some of the best advice you'll ever get on setting and achieving goals -
To your success...
-Ross
To your success...
-Ross
Want to Overcome Your Fear of Failure?
We all have fears. But, how do we overcome them? Fear disempowers us. Watch this and see how you can conquer fear -
To your success...
-Ross
To your success...
-Ross
Sunday, February 10, 2008
Fed Rate Cuts Help Homeowners
This is a very good article. It tells how significant the Fed's rate rates will impact the housing market. The cuts will mean fewer foreclosures, more refinancing, and therefore the entrance of savy buyers and investors into the housing market to take advantage of lower borrowing rates. Please read this article from the San Jose Mercury News:
Mercury News Reports that Fed's rate cuts to pay off big-time for borrowers
HOMEOWNERS' PAYMENTS TO DROP WITHIN MONTHS, BUT SAVERS LOSE
By Kathy KristofTribune Media Services
Article Launched: 02/10/2008 01:41:32 AM PST
For many Americans, the effects of the Federal Reserve's aggressive rate cut will be swift and striking. The average borrower could save hundreds of dollars within a few months - and the average saver could lose just as much.
Fortunately, as far as the strength of the consumer-driven economy is concerned, there are fewer people relying on the income earned by their investments than there are people heavily in debt. With $2.5 trillion in consumer debt outstanding - and trillions more in home equity lines of credit and adjustable-rate mortgages - a cut of the magnitude made last week can translate into billions of dollars in spending power.
"It's bad for seniors who are living on fixed incomes, but this gigantic baby boom generation is largely made up of borrowers," said Gary Schlossberg, senior economist with Wells Fargo Capital Markets in San Francisco.
Wendy and Nicholas Stanton, who work in the entertainment industry, are among the borrowers, with an $83,000 equity line of credit secured by their house in Pasadena. If the rate on their credit line drops by the same amount the Fed cut its key short-term rate - three-quarters of a point - it will shave $50 or so off the line's monthly payment.
The Stantons say they'll spend that money, which is what the central bank wants them to do.
"The way our industry and the housing market are at this moment in time, even a $5 payment cut is significant to us," said Wendy Stanton, an art director out of work because of the writers strike.
The nation's 75 million homeowners are likely to feel the most significant and immediate benefits. Home equity lines of credit are often tied to the prime rate and other short-term indexes that fall in lock step when the Federal Reserve cuts its benchmark rate.
Conventional mortgage rates tend to follow rates on long-term Treasury bonds, which fell further last week after the Fed acted. Already, rates on 30-year fixed mortgages are at their lowest levels in at least 2 1/2 years.
On Jan. 18, the best rate available on a 30-year loan was 5.5 percent, said Jeff Lazerson, president of Mortgage Grader, a Web-based loan shopping service. By the afternoon of Jan. 22, it had fallen to 5.125 percent for borrowers willing to pay 1 percentage point in upfront costs.
That's likely to touch off a refinancing boom, Lazerson said…
…What's more, $25 billion to $30 billion in adjustable-rate mortgages are "repricing" each month throughout 2008, said Greg McBride, financial analyst with BankRate.com. Because these loans typically adjust once or twice a year, last week's rate cut combines with other recent Fed cuts to provide many of the borrowers with a huge break.
"This is going to save a lot of people from completely unmanageable payment increases," McBride said. Someone with a $200,000 ARM would have been hit with a $370-a-month payment increase had the Fed not acted in recent months to cut short-term rates a total of 1 3/4 percentage points, he said. Now the increase will probably be in the range of $100 a month.
"For many homeowners, those manageable rate resets will be the difference between keeping a home or losing it," he said.
McBride said the rate cut could prove far more significant than the lending industry's pledge to help certain subprime borrowers.
"This affects everyone," he said.
Because the vast majority of credit cards are issued at variable interest rates, credit card debtors stand to benefit, too. The latest cut in the Fed's key rate will probably be passed on to consumers within one to three billing cycles, said Justin McHenry, research director at Index Credit Cards.com. in Cleveland.
A person with $5,000 in credit card debt will save about $3 a month, according to Bill Hardekopf, chief executive of LowCards.com. That's chump change, to be sure, but for those with big balances it may be enough to help them meet minimum monthly payments and start whittling down their obligations…
Mercury News Reports that Fed's rate cuts to pay off big-time for borrowers
HOMEOWNERS' PAYMENTS TO DROP WITHIN MONTHS, BUT SAVERS LOSE
By Kathy KristofTribune Media Services
Article Launched: 02/10/2008 01:41:32 AM PST
For many Americans, the effects of the Federal Reserve's aggressive rate cut will be swift and striking. The average borrower could save hundreds of dollars within a few months - and the average saver could lose just as much.
Fortunately, as far as the strength of the consumer-driven economy is concerned, there are fewer people relying on the income earned by their investments than there are people heavily in debt. With $2.5 trillion in consumer debt outstanding - and trillions more in home equity lines of credit and adjustable-rate mortgages - a cut of the magnitude made last week can translate into billions of dollars in spending power.
"It's bad for seniors who are living on fixed incomes, but this gigantic baby boom generation is largely made up of borrowers," said Gary Schlossberg, senior economist with Wells Fargo Capital Markets in San Francisco.
Wendy and Nicholas Stanton, who work in the entertainment industry, are among the borrowers, with an $83,000 equity line of credit secured by their house in Pasadena. If the rate on their credit line drops by the same amount the Fed cut its key short-term rate - three-quarters of a point - it will shave $50 or so off the line's monthly payment.
The Stantons say they'll spend that money, which is what the central bank wants them to do.
"The way our industry and the housing market are at this moment in time, even a $5 payment cut is significant to us," said Wendy Stanton, an art director out of work because of the writers strike.
The nation's 75 million homeowners are likely to feel the most significant and immediate benefits. Home equity lines of credit are often tied to the prime rate and other short-term indexes that fall in lock step when the Federal Reserve cuts its benchmark rate.
Conventional mortgage rates tend to follow rates on long-term Treasury bonds, which fell further last week after the Fed acted. Already, rates on 30-year fixed mortgages are at their lowest levels in at least 2 1/2 years.
On Jan. 18, the best rate available on a 30-year loan was 5.5 percent, said Jeff Lazerson, president of Mortgage Grader, a Web-based loan shopping service. By the afternoon of Jan. 22, it had fallen to 5.125 percent for borrowers willing to pay 1 percentage point in upfront costs.
That's likely to touch off a refinancing boom, Lazerson said…
…What's more, $25 billion to $30 billion in adjustable-rate mortgages are "repricing" each month throughout 2008, said Greg McBride, financial analyst with BankRate.com. Because these loans typically adjust once or twice a year, last week's rate cut combines with other recent Fed cuts to provide many of the borrowers with a huge break.
"This is going to save a lot of people from completely unmanageable payment increases," McBride said. Someone with a $200,000 ARM would have been hit with a $370-a-month payment increase had the Fed not acted in recent months to cut short-term rates a total of 1 3/4 percentage points, he said. Now the increase will probably be in the range of $100 a month.
"For many homeowners, those manageable rate resets will be the difference between keeping a home or losing it," he said.
McBride said the rate cut could prove far more significant than the lending industry's pledge to help certain subprime borrowers.
"This affects everyone," he said.
Because the vast majority of credit cards are issued at variable interest rates, credit card debtors stand to benefit, too. The latest cut in the Fed's key rate will probably be passed on to consumers within one to three billing cycles, said Justin McHenry, research director at Index Credit Cards.com. in Cleveland.
A person with $5,000 in credit card debt will save about $3 a month, according to Bill Hardekopf, chief executive of LowCards.com. That's chump change, to be sure, but for those with big balances it may be enough to help them meet minimum monthly payments and start whittling down their obligations…
Saturday, February 9, 2008
2008 NYSAR Legislative Priorities - Very Important to Know About!
Here's just some of the legislative priorities that NYSAR is focusing on this year. Take a look at these and I think you'll agree that these are legislative bills and initiatives that will affect all of us.
Are these issues worthy of your financial and moral support? I think so and I hope you do too! Don't ever begrudge giving, as you do, to RPAC. Your dollars support a very good cause that helps our clients, customers and our industry as well. Look at these issues below. You'll see how important they are to all of us. Here's the list:
Real Estate Licensee Scope of Practice (A.9383) NYSAR will oppose this new bill that would mandate a real estate broker practice solely within the confines of their county of residence or the county of their principal or branch office.
Commission Protection (S.4874/A.7519-A) NYSAR is renewing its efforts to create better legal protections for earned, but unpaid commissions. In 2007 the Commission Escrow bill again passed the Senate, but died in the Assembly. NYSAR knows of no organized opposition to this proposal.
Broker Verification of Zoning (S.91) In 2008 NYSAR will again oppose legislation that would require real estate brokers to verify every property (residential and commercial) is in full compliance with local zoning laws prior to listing.
Property Tax Relief Again in 2008, property tax relief is a top legislative priority for lawmakers and NYSAR alike. Realtors® will be active advocates for significant tax reductions in the near term and structural reforms to the tax code that will foster tax savings for property owners.
Sex Offender Ban (S.1531/A.1269) In 2008 NYSAR will seek the approval of legislation that bans all sex offenders from obtaining or holding a real estate license Although felons are already precluded from getting a real estate license, NYSAR has discovered that misdemeanor level sex offenders are still eligible to receive a real estate license.
First-time Homebuyer Savings Accounts (S.2028/A.6576) NYSAR seeks the passage of legislation that would allow individuals and couples to make pre-tax contributions to a savings account that would be dedicated to the purchase of a first home.
Affordable Health Care Access to affordable health care is unattainable for many Realtors® members. In fact, the National Association of reports that almost 30 percent of all Realtors® have no health insurance coverage at all. To examine this issue in New York, NYSAR President Linda Page has formed a legislative working group, which will be meeting for the first time during NYSAR’s February business meetings. In addition, NYSAR will be examining legislative ways to provide more affordable health care to all Realtors®.
Statewide Transfer Tax Authorization (S. 716; S. 3836; A.7333) NYSAR will again be opposing all legislation that would create a more fluid process for the approval of transfer tax increases, regardless of the intent of the dedicated monies.
Are these issues worthy of your financial and moral support? I think so and I hope you do too! Don't ever begrudge giving, as you do, to RPAC. Your dollars support a very good cause that helps our clients, customers and our industry as well. Look at these issues below. You'll see how important they are to all of us. Here's the list:
Real Estate Licensee Scope of Practice (A.9383) NYSAR will oppose this new bill that would mandate a real estate broker practice solely within the confines of their county of residence or the county of their principal or branch office.
Commission Protection (S.4874/A.7519-A) NYSAR is renewing its efforts to create better legal protections for earned, but unpaid commissions. In 2007 the Commission Escrow bill again passed the Senate, but died in the Assembly. NYSAR knows of no organized opposition to this proposal.
Broker Verification of Zoning (S.91) In 2008 NYSAR will again oppose legislation that would require real estate brokers to verify every property (residential and commercial) is in full compliance with local zoning laws prior to listing.
Property Tax Relief Again in 2008, property tax relief is a top legislative priority for lawmakers and NYSAR alike. Realtors® will be active advocates for significant tax reductions in the near term and structural reforms to the tax code that will foster tax savings for property owners.
Sex Offender Ban (S.1531/A.1269) In 2008 NYSAR will seek the approval of legislation that bans all sex offenders from obtaining or holding a real estate license Although felons are already precluded from getting a real estate license, NYSAR has discovered that misdemeanor level sex offenders are still eligible to receive a real estate license.
First-time Homebuyer Savings Accounts (S.2028/A.6576) NYSAR seeks the passage of legislation that would allow individuals and couples to make pre-tax contributions to a savings account that would be dedicated to the purchase of a first home.
Affordable Health Care Access to affordable health care is unattainable for many Realtors® members. In fact, the National Association of reports that almost 30 percent of all Realtors® have no health insurance coverage at all. To examine this issue in New York, NYSAR President Linda Page has formed a legislative working group, which will be meeting for the first time during NYSAR’s February business meetings. In addition, NYSAR will be examining legislative ways to provide more affordable health care to all Realtors®.
Statewide Transfer Tax Authorization (S. 716; S. 3836; A.7333) NYSAR will again be opposing all legislation that would create a more fluid process for the approval of transfer tax increases, regardless of the intent of the dedicated monies.
Fair Housing Course Available for Real Cheap Price!
Ok, what's this all about you might ask? Well, as you hopefully know by now, all real estate licensees who renew their licenses on or after 7/1/08 will be required to complete 22.5 hours of approved continuing education, three hours of which must include fair housing and/or discrimination in the sale or rental of real property.
I am partially responsible for the three hours of mandatory education regarding fair housing because it was my idea as a member of a NYSAR working group committee that I belong to to mention this as a topic of a discussion at one of our meetings last year and it then became a motion and is now law. Please don't hold this against me.
Anyway, here is a link to NYSAR's website where you can take this 3 hour course online at a cost of $25.00 - a 40% discount for NYSAR members. Here's the link:
http://www.nysar.com/members/education/realtor_university.asp
While you are at this page, take a look at all the other online courses offered at very reasonable prices - most courses are $40-$60. I counted something like 42 courses including a 12 hour ABR (Accredited Buyer Representative) course for $295.00 along with 2 other ABR related courses.
Not bad! Check it out and save some money.
I am partially responsible for the three hours of mandatory education regarding fair housing because it was my idea as a member of a NYSAR working group committee that I belong to to mention this as a topic of a discussion at one of our meetings last year and it then became a motion and is now law. Please don't hold this against me.
Anyway, here is a link to NYSAR's website where you can take this 3 hour course online at a cost of $25.00 - a 40% discount for NYSAR members. Here's the link:
http://www.nysar.com/members/education/realtor_university.asp
While you are at this page, take a look at all the other online courses offered at very reasonable prices - most courses are $40-$60. I counted something like 42 courses including a 12 hour ABR (Accredited Buyer Representative) course for $295.00 along with 2 other ABR related courses.
Not bad! Check it out and save some money.
Courage To Endure
Please don't mind if, from time to time, I post quotes, articles and writings that are uplifting and encouraging. You may wonder of what real value are things like this. Well, the truth is that we can all use encouragement and take to heart the sayings of the wise and grow thereby. I want this blog to contain a mixture of important news, information that will impact your lives and some inspiration as well.
So, with that said, here is an abridged copy of a recent article published by Brian Tracy. I hope you enjoy it, take it to heart and grow thereby:
A Special Kind of Courage By: Brian Tracy
There are several different aspects of courage. Perhaps the most important is the courage to endure, to persist, to "hang in there" in the face of doubt, uncertainty and criticism from others.
Practice Patience in Adversity
This is called "courageous patience," the willingness and the ability to "stay the course" in the face of uncertainty, doubt and often criticism from many quarters.
Stay the Course
In my experience, there is a critical time period between the launching of a new venture and the results that come from that venture. During this hiatus, this waiting period, many people lose their nerve. They cannot stand the suspense of not knowing, of possible failure. They break and run in battle, they quake and quit in business.
The True Leader
But the true leader is the person who can stand firm, who refuses to consider the possibility of failure. The turning points of many key moments in human history have been the resolution, or lack thereof, of one person. Courageous patience is the acid test of leadership.
To encourage others, to instill confidence in them, to help them to perform at their best requires first of all that you lead by example.
"How to Build Rock Solid Self-Confidence and Achieve All of Your Goals"
You probably already know that the most successful people have incredible levels of self-confidence. They've accomplished great levels of success and happiness in their lives and seem to be unstoppable in everything that they do.
The fact is, that when you develop unshakable self-confidence your whole world will change for the better.
You'll have the confidence to take whatever steps necessary to earn more money and enjoy a higher standard of living. You'll be more powerful and persuasive with other people. And you'll be more popular and likable.
Allow Honest Mistakes
[One of the things] you can do to help alleviate the fears of failure and rejection in others is to encourage them to take calculated risks and allow honest mistakes.
Build People Up
Give the people who look up to you regular praise and approval. Celebrate good tries as well as success, large and small. Create a psychological climate where people feel safe from censure, blame or criticism of any kind. Then do things that make people feel terrific about themselves.
Become Unstoppable
Courage comes from acting courageously on a day-to-day basis. Your personal development goal should be to practice the behaviors of a totally fearless person until you become, in your own mind, unstoppable.
Action Exercises
Here are two ways for you to develop courageous patience.
First, prepare yourself in advance for the inevitable disappointments and setbacks you will experience on the way to your goal. Don't be surprised when they occur.
Second, resolve in advance that you will bounce rather than break and continually encourage others to think and act the same way.
So, with that said, here is an abridged copy of a recent article published by Brian Tracy. I hope you enjoy it, take it to heart and grow thereby:
A Special Kind of Courage By: Brian Tracy
There are several different aspects of courage. Perhaps the most important is the courage to endure, to persist, to "hang in there" in the face of doubt, uncertainty and criticism from others.
Practice Patience in Adversity
This is called "courageous patience," the willingness and the ability to "stay the course" in the face of uncertainty, doubt and often criticism from many quarters.
Stay the Course
In my experience, there is a critical time period between the launching of a new venture and the results that come from that venture. During this hiatus, this waiting period, many people lose their nerve. They cannot stand the suspense of not knowing, of possible failure. They break and run in battle, they quake and quit in business.
The True Leader
But the true leader is the person who can stand firm, who refuses to consider the possibility of failure. The turning points of many key moments in human history have been the resolution, or lack thereof, of one person. Courageous patience is the acid test of leadership.
To encourage others, to instill confidence in them, to help them to perform at their best requires first of all that you lead by example.
"How to Build Rock Solid Self-Confidence and Achieve All of Your Goals"
You probably already know that the most successful people have incredible levels of self-confidence. They've accomplished great levels of success and happiness in their lives and seem to be unstoppable in everything that they do.
The fact is, that when you develop unshakable self-confidence your whole world will change for the better.
You'll have the confidence to take whatever steps necessary to earn more money and enjoy a higher standard of living. You'll be more powerful and persuasive with other people. And you'll be more popular and likable.
Allow Honest Mistakes
[One of the things] you can do to help alleviate the fears of failure and rejection in others is to encourage them to take calculated risks and allow honest mistakes.
Build People Up
Give the people who look up to you regular praise and approval. Celebrate good tries as well as success, large and small. Create a psychological climate where people feel safe from censure, blame or criticism of any kind. Then do things that make people feel terrific about themselves.
Become Unstoppable
Courage comes from acting courageously on a day-to-day basis. Your personal development goal should be to practice the behaviors of a totally fearless person until you become, in your own mind, unstoppable.
Action Exercises
Here are two ways for you to develop courageous patience.
First, prepare yourself in advance for the inevitable disappointments and setbacks you will experience on the way to your goal. Don't be surprised when they occur.
Second, resolve in advance that you will bounce rather than break and continually encourage others to think and act the same way.
Tuesday, February 5, 2008
Crisis = Opportunity
Consider the following quotes:
"When written in Chinese, the word 'crisis' is composed of two characters. One represents danger and the other represents opportunity." - John F. Kennedy
"Opportunity often comes disguised in the form of misfortune, or temporary defeat". - Napoleon Hill
"Entrepreneurs are simply those who understand that there is little difference between obstacle and opportunity and are able to turn both to their advantage." - Niccolo Machiavelli
Now, I have a question for you: how can you re-frame the bad situations you encounter, the frustrations you experience and trials and tribulations you go through in order to see the opportunities you are blessed with in disguise? That is a key to triumphing over your circumstances and developing a resilient personality.
This applies to your real estate career as well as every other area of your life.
To your success...
-Ross
"When written in Chinese, the word 'crisis' is composed of two characters. One represents danger and the other represents opportunity." - John F. Kennedy
"Opportunity often comes disguised in the form of misfortune, or temporary defeat". - Napoleon Hill
"Entrepreneurs are simply those who understand that there is little difference between obstacle and opportunity and are able to turn both to their advantage." - Niccolo Machiavelli
Now, I have a question for you: how can you re-frame the bad situations you encounter, the frustrations you experience and trials and tribulations you go through in order to see the opportunities you are blessed with in disguise? That is a key to triumphing over your circumstances and developing a resilient personality.
This applies to your real estate career as well as every other area of your life.
To your success...
-Ross
Friday, February 1, 2008
Quote Of The Week
"You keep customers by delivering on your promises, fulfilling your commitments and continually investing in the quality of your relationships." - Brian Tracy
Who Needs Real Estate Professionals Anyways?!
Sometimes we run across people who either say this, or perhaps something like it. Even if they don’t say it, we wonder if they are thinking it from time to time. Do you ever wonder if the future really needs us? This type of apocalyptic nightmarish fear is fanciful; however, has no basis in truth! How do I know this?
According to the 2007 Profile of Home Buyers and Sellers New York Report prepared for NYSAR by NAR (December 2007), here’s just a few very interesting statistics showing that the buying/selling public both wants and needs our professional knowledge and expertise:
1. 72% of home buyers purchased their home through a real estate agent or broker.
2. 59% of recent buyers will definitely use their agent again, and an additional 24% will probably use the agent again or recommend to others.
3. 39% percent of first-time buyers were referred to their agent by a friend, family member, neighbor or relative.
4. 76% of sellers used an agent or broker to sell their home.
5. 97% of buyers ranked honesty and integrity as a “very important” factor when choosing a real estate professional to assist with a home purchase.
6. For 32% of sellers, the reputation of the agent was the most important factor when choosing a real estate professional.
7. When selecting a real estate professional, 44% of sellers received a recommendation from a friend, neighbor or relative.
Interesting isn’t it?
These are just a few of the statistics given in this report. The report gives statistical breakouts on a variety of topics and is worth looking at. You can obtain a copy at: http://www.nysar.com/members/pdfs/2007_buyer_seller_report.pdf
I remember about 11-12 years ago when many people were raising the question if real estate professionals would be necessary in the new world of the internet when “everything” would be done via the internet. Well, while the internet has definitely shaped the way we do business, we are still here and stronger than ever. So, it doesn’t look like we will go the way of the dinosaur any time soon.
I share this with you because I just thought you’d like to know.
To your success…
-Ross
According to the 2007 Profile of Home Buyers and Sellers New York Report prepared for NYSAR by NAR (December 2007), here’s just a few very interesting statistics showing that the buying/selling public both wants and needs our professional knowledge and expertise:
1. 72% of home buyers purchased their home through a real estate agent or broker.
2. 59% of recent buyers will definitely use their agent again, and an additional 24% will probably use the agent again or recommend to others.
3. 39% percent of first-time buyers were referred to their agent by a friend, family member, neighbor or relative.
4. 76% of sellers used an agent or broker to sell their home.
5. 97% of buyers ranked honesty and integrity as a “very important” factor when choosing a real estate professional to assist with a home purchase.
6. For 32% of sellers, the reputation of the agent was the most important factor when choosing a real estate professional.
7. When selecting a real estate professional, 44% of sellers received a recommendation from a friend, neighbor or relative.
Interesting isn’t it?
These are just a few of the statistics given in this report. The report gives statistical breakouts on a variety of topics and is worth looking at. You can obtain a copy at: http://www.nysar.com/members/pdfs/2007_buyer_seller_report.pdf
I remember about 11-12 years ago when many people were raising the question if real estate professionals would be necessary in the new world of the internet when “everything” would be done via the internet. Well, while the internet has definitely shaped the way we do business, we are still here and stronger than ever. So, it doesn’t look like we will go the way of the dinosaur any time soon.
I share this with you because I just thought you’d like to know.
To your success…
-Ross
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