Federal Tax Credit Program

Thought we would post here a copy of the document that talks about the Federal Tax Credit Program for First Time Home Buyers. The document can be accessed by clicking on the link

Here

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Survey Continues to Validate Internet-Real Estate Relationship

As reported by Inman News, a new California Association of Realtors survey called "Survey of California Home Buyers" shows ever growing relationship between real estate sales and use of the Internet compared to the 2007 survey

Excerpts from the article from Inman are included here and show the importance of having a strong Internet plan. A couple of particularly interesting points include the fact that Internet buyers spent less time looking at homes before purchasing and viewed about half as many homes with their agent before settling on a purchase than traditional home buyers reported.

Another key area to note is that of responsiveness of the agent where the expectation of the consumer has increased dramatically.

On a positive note, far more of the Internet buyers indicated that they were likely to use the same agent again in comparison to the traditional buyer, making Internet generated buyers a much more valuable repeat and referral pool.

Here are some portions of the Inman article:

Web snares more real estate buyers (subscription)

Inman News, September 15, 2008



Survey reveals growing use of Internet in home purchases



The share of home buyers who said the Web was integral to their purchase process continues to grow, according to an annual survey of home buyers by the California Association of Realtors trade group. Meanwhile, the home-search process lengthened compared to the 2007 survey.



The association's "Survey of California Home Buyers" reveals that 78 percent of buyers used the Internet "as an important part of (their) home buying and selection process," compared to 72 percent in 2007.



Buyers who stated that the Internet was an important part of the buying process spent an average 8.3 weeks searching for a home with their agent, up from 5.2 weeks in 2007 and 2.2 weeks in 2006 -- reflecting the slowing sales environment of the past two years.



"Traditional" buyers who said the Internet was not an important part of the buying and selection process took even longer -- 10.3 weeks searching for a home with their agent compared to eight weeks in 2007.



Also, the survey found that traditional buyers saw almost twice as many homes with their agent (23.3 homes) as Internet buyers (12.7 homes).



“Due to the high inventory of homes on the market, and uncertainty about the direction of home prices, buyers are more cautious and are moving at a slower pace during the home buying process than in previous years,” said William E. Brown, CAR president, in a statement.



The sample of buyers in the survey included 1,249 home buyers who used the Internet and 351 who had not to purchase homes during the last half of 2007.



The survey found that affordability for first-time buyers has improved with home-price declines and relatively low mortgage interest rates.



"However, problems in the area of real estate finance continue to limit access to capital on the part of all buyers, including first-timers," and has shrunk the pool of first-time buyers. Also, because of the credit crunch, "there is no guarantee that the loan will actually be funded," according to the report.



Participants expressed a need "to better understand the direction of the market" and for escrow to close on time, citing concerns about "market conditions" and "agent responsiveness," the report states.



Specifically, participants asked for better negotiating and faster response times from their agents. "Both assessments reflect the uncertainty of the market in recent months and frustration with that uncertainty," the report concludes from those survey findings.



The share of first-time buyers in the "Internet" group participating in the survey dropped from 31 percent in the 2007 survey to 22 percent in the 2008 survey and is down from 41 percent in 2006.



"With lenders tightening their underwriting standards and requiring a larger down payment from borrowers, many first-time buyers who had already been facing affordability constraint due to high home prices in California found it insurmountable to qualify for a home loan."



About 77 percent of first-time buyers reported that they were motivated to buy by falling home prices, compared to 64 percent of repeat buyers.



Other motivators included: low mortgage interest rates enabled the buyer to move to a better location, the likelihood that sales will increase, mortgage rates enabled the buyer to move to a bigger home, and the desire to move to a more affordable area, in that order.



Satisfaction with the home-buyer process dropped in ever category in 2008 compared to the prior year -- the average rating among the nine categories was 3.4 in the latest survey (five is "most satisfied" and one is "most dissatisfied). In last year's survey, the average rating was 4.1.



Overall satisfaction with agent averaged 3.3 in the 2008 survey compared to 4.1 in the 2007 survey.



About 80 percent of those who were not satisfied said the agent "did not negotiate aggressively on their behalf," according to the survey report.



And the report suggests, "Although home buyers did not mention it, failure to close escrow on time probably contributed to the level of dissatisfaction buyers had with their agent," as 57 percent of Internet buyers participating in the 2008 survey reported that they did not close escrows on time.



About 31 percent of the Internet group in the survey expected an instant response from their agent, up from 22 percent in 2007. And 96 percent of Internet buyers expected a response within four hours or less, according to the latest survey. That compares to 94 percent in the 2007 survey.



Also, about 84 percent of participants said they considered the agent's response time to be either a "very important" or "extremely important" factor in their decision-making process, the survey report states.



About 71 percent of the Internet buyers in the survey said they would use the same agent again, down from 92 percent in 2007.



Among the "traditional" buyers, 27 percent reported they would use the same agent again, down from 47 percent in 2007 and 79 percent in 2005.





Multiple pictures and a slide show were named by survey participants as "extremely important" Web site features by buyers (61 percent), followed by maps and directions, agent contact options, virtual tours and neighborhood profiles.



About 88 percent of survey participants hired an agent to assist them in the home-sale transaction. About 90 percent of buyers in the Internet group found their real estate agent using the Internet, while 9 percent found their agent through a for-sale sign and 1 percent through an agent's marketing materials.



Meanwhile, about 32 percent in the traditional buyers' group reported that they had a previous transaction with the real estate agent, 28 percent found the agent through marketing materials, 27 percent through a for-sale sign and 14 percent through a referral, according to the survey.

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Tree.com takes root!

Thought some of you might be interested in this even though it is not directly about the 210 program.

Tree.com, Inc. Spins-off From IAC and Begins Trading as TREE



CHARLOTTE, N.C., August 21, 2008 – Tree.com, Inc. marks its first day as an independent, public company following its separation from IAC (NASDAQ: IACI). Tree.com, Inc. now trades on NASDAQ under the symbol TREE.



Tree.com, Inc. is the parent of several well-known brands and businesses in the financial services and real estate industries including LendingTree, LendingTree Loans sm, GetSmart.com, HomeLoanCenter.com, RealEstate.com, iNest.com, RealEstate.com, REALTORS® and Domania.com. Together, they serve as an indispensable ally for consumers who are looking to comparison shop loans, real estate and other financial products from multiple businesses and professionals who compete for their business. As an independent company, Tree.com will explore new areas where a competitive marketplace model empowers consumers and provides choices when making key life decisions.



“Today we officially launch Tree.com and establish it as the go-to source for consumers looking to learn about and compare financial products and real estate from anywhere in the country,” says Doug Lebda, chief executive officer and chairman of Tree.com, Inc. “Our company is made up of brands and businesses that consumers know and trust and we look forward to being an independent company and creating value for consumers, investors and shareholders alike.”



Tree.com’s Roots

LendingTree was founded in 1996, launched nationwide in 1998 and since that time has facilitated more than 23 million loan requests and $185 billion in closed loan transactions. The company’s unique business model matches consumers with multiple lenders who compete for their business or as the commercials say, “When Banks Compete, You Win®!”. Since inception, the company has focused on educating consumers about loan products and then presenting multiple offers for mortgages and refinance loans, home equity loans/lines of credit, auto loans, personal loans and credit cards.

LendingTree entered the real estate industry with the acquisition of HomeSpace, Inc. in 2000 and later launched RealEstate.com, which provides consumers access to nearly 2 million home listings, 97 million home values and a unique deep-dive view into more than 22,000 cities reaching every metropolitan area in the U.S. RealEstate.com also owns RealEstate.com, REALTORS®, an Internet enabled real estate brokerage that operates in 14 markets with more than 1,000 sales agents. In 2000, LendingTree went public and in 2003, was acquired by IAC/InterActiveCorp.



Tree.com Leadership

Tree.com launches with an experienced leadership team led by Doug Lebda, including:



· Darren Beck, Senior Vice President, Marketing

· Scott Cammarn, Senior Vice President and General Counsel

· Dean Conant, Vice President, Information Technology Operations

· Claudette Hampton, Senior Vice President, Human Resources

· Bob Harris, President, LendingTree Exchange

· Keith Moore, Senior Vice President and General Manager, Emerging Businesses

· David Norris, President, LendingTree Loans

· Matt Packey, Senior Vice President and Chief Financial Officer

· Bret Violette, President, RealEstate.com



For more information about Tree.com, Inc., please visit www.tree.com.

Important Information
The matters discussed herein contain forward-looking statements. These statements involve risks and uncertainties. Additionally, Tree.com, Inc. is subject to other risks and uncertainties set forth in its filings with the Securities and Exchange Commission. These risks and uncertainties could cause actual results to differ materially from any forward-looking statements made herein.

About Tree.com, Inc.

Headquartered in Charlotte, N.C., Tree.com, Inc. is the parent of several well-known brands and businesses in the financial services and real estate industries including LendingTree, LendingTree Loans sm, GetSmart.com, HomeLoanCenter.com, RealEstate.com, iNest.com and Domania.com. LendingTree was founded in 1996 and launched nationwide in 1998. In 2003, the company was acquired by IAC/InterActiveCorp and later spun-off in 2008 to form Tree.com, Inc. For more information, please visit www.tree.com.

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So, How's It Going?

You all have been following the 210 Days to Success program for some months now. Some more than others and some of you are just now getting engaged with the concept and process. We'd like to hear how things are going for you.

The idea behind 210 days is that opportunities in the real estate space take time to mature. There is a distinct life cycle to the buying process and the steps are not often skipped. Buyers typically move through the process at about the same pace and experience shows us that the average is 210 days. From lookie-loo to proud homeowner.

We also found that the agent needed to be involved in that process for its entirety. So this program was designed to help with that. Help get the customer to the agent faster and help the agent understand the process, the time required, and so on.

Now we would like to hear from all of you how it's going out there. Do you feel like your connecting better with the consumer? Are you seeing success through closings? Pendings? More Actives?

We can look at the numbers but only you know the stories. So let's hear them.

Comment here so we can all share our stories. That's the kind of communication that helps us all succeed.

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Remaining segments of 210 Program now posted!

Check out modules 5, 6 and 7 of the 210 days to agent success program. Just look down the right hand side of the 210 Days to Success blog for the rest of this outstanding training program!

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Homes Are Biggest Bargain Since 2004

That's the headline on Les Christie's article in CNN Money today online. That doesn't mean that buyers are flocking into the market but it does mean you have a reason to call your buyers and talk about the opportunity.

There are always two sides to every story and while most national media likes to focus on the "Housing Crisis", folks need to remember that this presents an enormous opportunity for folks who want to own a home.

Here is a link to the story "Homes are Biggest Bargain since 2004" for you to review and share. Good luck in bringing your buyers over the wall to affordable home ownership!

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Economists see credit crisis nearing end

Forecasters expect credit conditions to improve in the second half of the year; outlook for economic growth scaled back.

While no one is predicting a major turnaround in the economy right away, perhaps some good news for those of us in the housing industry.

WASHINGTON (AP) -- First the good news: The worst of the painful housing slump and the credit crunch might come to an end this year. Now the bad: The economy will weaken further and unemployment will rise.

That's the latest outlook from forecasters in a survey to be released Monday by the National Association for Business Economics, also known by its acronym NABE. It will take time for any rays of light to poke through the economic clouds, though.

A growing number of economists believe the country is on the brink of a recession or in one already, dragged down by all the problems in housing, credit and financial markets. Now 56% of the economists think the economy has started or will enter a recession this year. That's up from 45% in a survey in February. If there is a recession, it probably will be short and shallow, economists said.

Forecasters downgraded their projections for economic growth. They now predict the economy, which grew by 2.2% last year, will slow to 1.4% this year. That's lower than the 1.8% growth projected in February. If the new figure proves correct, it would mark the weakest growth since the last recession in 2001.
Next year, the economy should grow by 2.3%, less than previously forecast and a pace that is still considered subpar.

"Although housing and credit markets will gradually loosen their grip, U.S. economic growth is expected to only slowly return to health," said Ellen Hughes-Cromwick, president of NABE and chief economist at Ford Motor Co.

Given the outlook for sluggish overall economic activity, companies are likely to remain cautious in their spending and hiring.

The unemployment rate, which averaged 4.6% last year, will move higher. Forecasters predict the jobless rate will hit 5.3% this year and 5.6% next year.

Forecasters are hopeful that the housing slump - in terms of home sales - will hit bottom this year. However, economists were divided over whether the low point would be reached in the second, third or fourth quarters of this year. House prices, though, are still expected to drop this year and next.

On the credit front, economists predict conditions will improve in the second half of this year.

"The economy is still going to be weak in the very near term, but the worst is likely to end this year with respect to the housing decline and the credit crunch," said Lynn Reaser, chief economist at Bank of America's Investment Strategies Group, who was involved in the NABE survey. The survey of 52 forecasters was conducted April 17 through May 1.

Weakness in housing was cited as the factor most responsible for the economy's troubles. That was closely followed by credit problems and high energy, food and commodity prices.

With food prices marching upward, gasoline prices closing in on $4 a gallon nationwide and oil hitting a record high near $128 a barrel, inflation should rise. Consumer prices will increase 3.6% this year, up from a previous forecast of a 3% rise. Next year, prices should calm down a bit, with the inflation rate clocking in at 2.4%.

To bolster the economy, the Federal Reserve has been cutting a key interest rate since last September. However, when the Fed last lowered rates, in April to 2%, policymakers signaled that their rate-cutting campaign may be drawing to a close. Fed policymakers are concerned that moving rates lower could aggravate inflation. At the same time, they are hopeful that their powerful rate cuts plus the government's $168 billion stimulus package of tax rebates for people and tax breaks for businesses will lift the country out of its slump.

The forecasters believe the Fed will hold its key rate steady at 2% through the rest of this year. However, they predict the Fed will start bumping up rates next year to ward off inflation. They believe the Fed's key rate will rise to 3% by the end of 2009.

Economists, meanwhile, had mixed thoughts about the extent to which tax rebates will be spent this year. The more spent, the more energizing effect they will have on the economy. Roughly 35% thought households will spend 26 to 50% of the rebates, while a quarter believe 25% or less would be spent. Thirty-one percent thought 51 to 75% would be spent.

"We're likely to see the boost from tax rebates fading later in the year," Reaser predicted. "The recovery is expected to be quite muted."

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More People Soon Able to Qualify!

Fannie Is Poised to Scrap Policy Over Down Payments

The Wall Street Journal, James Hagerty, May 16, 2008



Fannie Mae is expected to announce Friday that it is scrapping a policy requiring higher down payments on home mortgages in areas where house prices are falling.

The change comes in response to protests from vital political allies of the government-sponsored provider of funding for mortgages, including the National Association of Realtors, the National Association of Home Builders and organizations that promote affordable housing for low-income people.



Those various groups have said the policy is hurting an already feeble housing market by shutting out too many potential buyers.



The current policy, adopted in December and now due to end June 1, limits loan amounts in areas with declining home prices, including most of the densely populated parts of the country.



For instance, if a loan program normally allows people to borrow up to 100% of the estimated property value, the maximum is cut to 95% in "declining markets."



Under the new policy that is taking effect next month, Fannie will have the same maximum loan percentages across the country for people purchasing single-family homes that they intend to occupy, according to people familiar with the plan.



For borrowers approved by Fannie's automated underwriting program, the maximum generally will be 97%. For those approved by other means, the maximum will be 95%. (Fannie also has some loan programs, typically offered through state or local housing agencies or nonprofit groups, that allow certain borrowers to make no down payment.)



Fannie is expected to continue to have variable down-payment requirements on mortgages considered riskier, such as those used to buy investment or vacation homes.



Fannie and its main rival, Freddie Mac, own or guarantee the bulk of U.S. home mortgages and so set nationwide standards for lenders. Freddie also has a policy requiring higher down payments in declining markets. But Freddie earlier this month said it wouldn't require lenders to drop below 95% of the estimated value.



In a letter to the Realtors last week, Freddie also said that it is applying the policy flexibly. For instance, if appraisers can demonstrate that home prices in a given neighborhood are stable or rising even though values are falling in the wider metropolitan area, the declining-markets policy doesn't apply.



By softening the down-payment policies, Fannie and Freddie are taking more risks.



Borrowers who put just 3% to 5% down in many areas are likely to find within a year that they owe more than the homes are worth because prices have fallen, a situation known as being underwater.



In some cases, deeply underwater borrowers are choosing to walk away from their homes rather than trying to find a way to keep on paying, Patricia Cook, Freddie's chief business officer, told analysts this week.



But Fannie officials have argued that they have tightened lending standards in other ways -- for instance, insisting on higher credit scores for people who make small down payments -- to reduce default risk. Officials have also argued that underwater borrowers don't necessarily choose to walk away.



The concessions from Fannie and Freddie illustrate the conflicting pressures that they are facing. Many critics say they are taking far too many risks, increasing the danger that taxpayers may end up having to bail them out.



But politicians and the housing industry are pushing them to do more to prop up the housing market.



In a recent letter sent to Fannie and Freddie, the Realtors reminded the companies that the trade group in recent years helped them fend off Bush administration attempts to impose tighter regulatory constraints.



Fannie and Freddie may need the Realtors' lobbying support in the weeks ahead as Congress seeks to give final approval to long stalled legislation designed to improve regulation of the two companies.

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Don't Give Up...and here's the PROOF!

Congratulations to the Carlson GMAC family of realestate companies in Massachusetts - they hung in there for the long term and it paid off! Well done agents!

Their recent successes and great examples that incubation works:

Maryellen Mitchell from the Carlson Beverly Office had a closing 3/20 with a Buyer assigned to her 5/20/07 - 305 Days

Sarah Anderson from the Hammond Office in Charlestown also has a closing on 3/20, a listing assigned to her on 7/24/07 - 240 Days

Sometimes 210 days isn't long enough:

On 2/10/08 one of Sarah Anderson's LendingTree buyers signed a P&S. Sarah had been incubating them since 7/1/2006 - 589 Days

Beth Petrone, from the Hammond office in Newton was assigned a listing on 1/27/2008 for a lead that Bruce had been incubating since 10/5/06. They finally gave up on their MLS entry only listing. The property went under contract 3/25/2008 - 537 Days from initial contact, 58 days after Beth listed it, with a full price offer

Charlie Smith, Cambridge Hammond office put a buyer under contract on 3/24/08 that originated on 6/12/2007 - 286 Days.

Brenda Flower, Carlson Longmeadow has a double this month - a List/Buy. 79 days.

Claudia DiDomenico, Carlson Framingham had the slam dunk. A lead she received on 3/19/2008 went pending on 3/25/2008 - 6 Days, and everybody thought the" good ol' days" were gone.

And we end where we began with Maryellen Mitchell, Carlson Beverly, who but a buyer under contract on 3/15/08 that she has been working with since 7/23/08 - 236 Days.

Stay in front of your online consumer - be there when they are ready to buy! Again
congratulations for a job well done!

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OK, so here's a question...

What did you do today to engage your lendingtree customers? We've said over and over again that this is a process, not an event. and we've offered up a few suggestions about how to engagge and when to engage your customers. We've even tossed out a few topics to talk about with them.

So now I want to know...what are you doing?

Click that comment button down there and tell us. Share. You might have the idea of the year!

And after you share, read what others share and comment back.

We all might just learn something here!

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Your Agent is KEY!

The online consumer today demands immediacy. They want the answer to their question NOW and they no longer want to talk to two or three people to get it. They want to talk to the individual who has the answers and the expertise needed to help make their dream of homeownership come true. That individual is your agent. As a result, our old model where a lead is scrubbed by the PC and incubated until they are a ready, willing and able buyer may no longer be feasible or effective for all of our Broker Network partners. To provide value to the consumer and to increase the capture and success rates in closing the deal, we are suggesting that leads now go Direct to Agent. What does this mean to our agents? No longer needed by the consumer to find a house, they will be now become the facilitator of the process beginning with the early stages when a customer is just dreaming about buying a house, and working with the customer to identify what, if anything, is standing in the way of being ready to buy. The agent becomes the problem solver who ultimately wins the deal for the client – with the goal of creating a customer for life.

Companies currently using this model are already experiencing success…

Quote from Gil Kite, Northwood Realty Services in PA:

“Results show that for us, this system works best. In 2006, thru 9/06 we closed 39 LT units for $5,750,425 (total of 42 for 12 months). In 2007, for the same 9 month period, we've closed 54 units for $8,399,749 with 5 more pending. Even better, agents are still working with 313 customers.”

Lora Perry from C21 Fagan in Lancaster, PA says:

“New system of signing out leads right away seems to be working out better for us. On Sunday I spoke to a new doctor -- she came through RealEstate.com. Price range is $500,000 - $600,000!!”

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Get “FACE to FACE” – the Key to Success with the Online Consumer

When working with the online consumer, recognizing that we are dealing with a process and not an event is key.. Only 4% of online consumers who engage with you today are ready to buy, the other 96% are in various stages of the home buying process – a process that statistics show takes up to 210 days from inception to close. The company and/or agent that focus solely on the ready, willing and able buyer is throwing both money and true potential business away. No longer should our first question to an online consumer be, “Are you pre-qualified?” but “Where are you today in the process? How can I help you get in a position to be ready to buy?” We are the facilitators of the process, and in today’s market there are many issues that get in the way of an individual being ready to buy. Our role as facilitator is to determine what the issues are and to be the problem solver. Best way to do that? Get face to face. Invite the consumer to your office to plan for success - this is where high tech meets high touch. Demonstrate your value by creating a roadmap with the consumer of where they are today in terms of the home buying process and what you need to do together - as a team, to help them be in a position to win the deal!

Getting Face to Face with the consumer early in the process:

 Provides the opportunity to develop a relationship and loyalty
 Allows you to educate the consumer and demonstrate your value as facilitator of the process
 Helps you determine roadblocks to being ready to buy today and allows you to be the problem solver
 Enables you and the consumer to work together to create a plan for success

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Communication is key

Most successful people will agree that at least a portion of their success is directly a result of their communication skills.

Henry Ford said "If there is any great secret of success in life, it lies in the ability to put yourself in the other person’s place and to see things from his point of view - as well as your own."

I couldn't agree more and the idea that great communication accompanied by great compassion and caring lead to success is vital to this blog and your success.

We are making a concerted effort to keep you on top of today's market with the latest information from our experience and proven techniques and systems for success, but what really matters is you.

We need you to share your successes, your ideas, your frustrations with one another. We need you to ask questions. We want you to communicate.

We could send out flyers with suggestions for success printed on them, or we could simply email you the suggestion of the day, but we don't. We have a blog.

We have a blog because your success is ultimately going to be the result of provocative thought starters followed by discussions of ideas and conversations that lead to grand thinking.

Join in the conversation.

Read the posts here but don't stop there. Click that comment button at the bottom of any post and add your thoughts. Encourage others to do the same. Help yourself become the best.

Are you going to succeed in your career this year? Start here!

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I don't know about you...

I don't know about you but this sounds like good news to me.When you see news like the following, sometimes we have a tendency to behave like consumers saying "there goes another downturn in real estate." when we, of all people should be jumping up and down for joy.

Read the following from the Wall Street Journal about the real estate market in Florida. Of course buyers are always going to ask you "Are we at the bottom yet?" and no one can answer that question. You can only know when we have passed the bottom because prices have started back up.

the point here is that this is another reason to call every buyer you have no matter where you are in the country and tell them that buyers are starting to line up for deals. Perhaps they would like to get in line as well, so they won't miss the opportunities in their area.

Here is the article, enjoy and please add your comments. Lets get the conversation going!

The Wall Street Journal, June Fletcher, March 28, 2008



Bargain-Hunters Descend On Cape Coral-Fort Myers, Fla.; 'We're Just Dumping It'



LEE COUNTY, Florida -- Here in the distressed-home capital of America, worried sellers keep slashing prices. Growing numbers of bargain-hungry buyers are circling. Both groups have the same question: How much more will prices fall?



In February, the Cape Coral-Fort Myers metro area in southwest Florida had the highest foreclosure rate in the nation, according to RealtyTrac of Irvine, Calif., which tracks notices of mortgage default, house-auction notices and bank repossessions. The area had a record 3,739 properties in some stage of foreclosure, or one per 84 households -- almost seven times the national average.



As foreclosures rose, asking prices tumbled. That has resulted in discounts of 40% or more on properties ranging from mansions to modest tract houses. In February, median sale prices for single-family houses in Lee County, which encompasses Fort Myers and Cape Coral, fell 17%, to $211,900, from a year earlier, the Florida Association of Realtors says. (Nationwide, median prices were down a record 8.2% in February from a year earlier, to $195,900, the National Association of Realtors says.)



The price cuts are particularly steep in Cape Coral, which had lots of cheap vacant land when the area's building boom began six years ago. Rapidly rising home prices attracted big national builders and prompted small local ones to ramp up production. Now, many of these sandy subdivisions are full of unoccupied houses -- some just half-finished.



James Matey, a Cape Coral builder, leans on the granite counter of an empty riverfront house he built for New York real-estate marketer Ted Kurz. Mr. Matey says the 5,139-square-foot house, with five bedrooms, wood-coffered ceilings and river views, was advertised at $4.2 million three years ago. The asking price is now $2.4 million -- which covers only the cost of land and construction. "At this point, we're just dumping it," Mr.Matey says. Mr. Kurz says he'd like to hold on to the house for a few years until the market turns, but that would cost him more than $200,000 in interest, taxes and other expenses -- money he doesn't have now that the market has collapsed. "I'll entertain any offer," he says.



Such willingness to deal is attracting shoppers. Coldwell Banker says the number of house showings its agents conducted in southwest Florida almost tripled in February from the same month a year earlier. Sales are picking up, especially in Cape Coral, where some buyers are snagging houses for as little as half the original asking price. Agent Cindy Roper says bidding wars -- rarely seen since the height of the housing bubble -- have broken out for some foreclosed houses. In one recent case, a client missed out on a $329,000 waterfront property that attracted 12 bids after only 10 days on the market, she says.


The number of existing single-family houses sold in Fort Myers-Cape Coral was flat at 445 in February from a year earlier, while 181 condos were sold, up 19%, says the Florida Association of Realtors. Roughly 18% of these properties were in some stage of foreclosure, according to figures compiled by RealtyTrac.



Agents say the fire-sale prices have been particularly attractive to Europeans and Canadians, who have seen their purchasing power rise as the dollar's value has fallen. Lyle and Janet Reinhart, of Vernon, British Columbia, have been checking out houses in the $250,000-to-$300,000 range. "I've been overwhelmed by the choices," says Mr. Reinhart, a retired oil-company executive. He says he's looked at more than 20 houses since January, all reduced 20% to 40% from their original prices.



But even with the cuts, many houses aren't selling. Bobby Driscoll, a retired United Parcel Service manager and real-estate agent, put his 10,500-square-foot mansion on the market six months ago for $10 million. He's since slashed the price by $2 million. The six-bedroom spread, with a dock and faux-painted ceilings, is in a riverfront area that was a hotbed of teardowns and speculative building during the boom. Even at its new price, his house remains the most expensive one on the market in Cape Coral. "I may wind up here for a long time," he says.



Not all of Lee County has been hard-hit. Agent Sabina Carsten says there aren't many deals on the upscale vacation-home islands of Sanibel and Captiva -- partly because they were slow to recover from hurricane damage in 2004 and 2005, and missed the overbuilding of those years. Prices are also holding up in tony Bonita Springs. Still, there are foreclosure specials to be had in that town: Early this month, a lender reduced the price of a five-bedroom house with solid mahogany doors on palm-lined Snarkage Drive to $2.75 million from $3.795 million, a 28% cut, and a four-bedroom home across the pink-paved street was reduced 32% to $2.295 million from $3.395 million.

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It's important to have something to say...

An important component to engaging customers that are further out than 30 days from their purchase is trying to show your value through the entire process. It is often difficult to know what to talk to a customer about if you're not talking about getting a mortgage or finding a house.

In an article on MSN Real Estate, Liz Pulliam Weston gives suggestions about the important issues for buyers to take care of well before they are ready to purchase.

She gives buyers advice 1 year, 6 months, 3 months, and 2 months out regarding how to get their financial house in order so they can purchase when they want to purchase.

I'm not suggesting that you use her suggestions verbatim but they will make you think about what kinds of things you can discuss with a potential buyer very early in their home search process.

We talk all the time about the dreaming stage and scaling for the consumer. Here are some ways to engage them through these tricky times.

Here is a link to the article to which I refer.

Enjoy and comment back here about what you think!

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Consumer's Big Question

Consumers are still on the web, still looking for opportunities, still in that dreaming stage but seem to have one really big question looming...

Should I wait for the market bottom?

MSN real estate's Melinda Fulmer has some advice that you can use when talking to your consumers about buying now.

The housing market will continue its downward spiral, forecasts say, and that means opportunities for buyers. But waiting for the market bottom may not be the smartest strategy. Here are 5 reasons to buy now --

The latest housing headlines are far from encouraging: Foreclosures are up, home prices are down and new-home sales are at record lows. All this dismal news has many buyers sitting on the sidelines, afraid to make a move. But, economists say, waiting for the bottom may not be the smartest strategy.

For many buyers, there's no real need to wait for the market as a whole to officially bottom out, says Delores Conway, director of the Casden Forecast at the University of Southern California's Lusk Center for Real Estate. "Real estate is local," Conway says, and therefore what constitutes the bottom for the country is meaningless for those looking to buy and sell homes in their own neighborhoods.

5 REASONS TO BUY
1. Prices in the neighborhood you are interested in are relatively stable. Either they are holding their own or increasing, or the pace of decline is slowing significantly. If you have to move and don't like apartments, the small penalty you pay for missing the bottom may not mean much.

2. You plan to stay in the home for more than five years. If you can stick it out that long before selling, economists say you’ll probably ride out any downturn and come out ahead on price.

3. Your rent rivals a mortgage payment. If you can afford to buy, it can give you one bonus that renting can't: the mortgage-interest deduction on your taxes.

4. You've found the right house in the right area for you. The schools are great. You love the area and know it would be hard to find another house like the one you have your eye on. In a better market, you would most likely have much more competition for that home.

5. You've built equity in your house and are moving to a place where homes are cheaper. In your new market, your money will go a lot further.

Here's a link to the entire story.

As you build relationships with your consumers, remember that being able to talk about the current conditions and the advantages of acting now rather than hiding from the market can be invaluable in building that trust.

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Build the Relationship First

We are hearing from around the country that real estate consumers are 'sitting on the fence' much more than in recent past. This may well be because of negative media, fluctuation in interest rates and a general uneasiness about the overall economy. We must take more time to build the relationship since buyers may not be ready to engage immediately. Patience and good old fashioned relationship building is the key. Nothing beats a face to face interview with your customers. Less by phone and email and more face to face is the key. They need to get to know, like and trust us before they will commit to working with us. This also means being careful of the hurdles we throw in front of them that are industry centric and not necessarily customer centric. Meet with them, learn about their families, their wants and needs and even show them a few homes so they can comfortably get a feel for the market and we can build the relationship for the distance. If they are not ready to jump, incubate, incubate, incubate until they are ready. Some of our best customers are the ones we already have. Be prepared to move the needle from a 90 day closing to 120 days or even out to 210 days to make sure we don't lose them at the very time they make the decision to engage. The real estate business is personal again. Be Patient, build the relationship, remove the hurdles and let them do business with you.

Dave Clark
Regional Vice President
LendingTree Broker Network

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News we've been waiting for?

So the NAR is reporting that sales are up based on the February 2008 numbers. What does that mean for your production?

It means the buyers are stepping up, finally. So get out there and take advantage. Get the phones ringing in the homes of the customers you have been handed over the past 6 months and turn them into transactions.

Now is the beginning of your best year ever, but only if that is what you expect!

Here is the whole story from today's CBS Marketwatch:


ECONOMIC REPORT
Home resales up first time in seven months
Median sales prices plunge record 8.2% in past year
By Rex Nutting, MarketWatch

Last update: 10:01 a.m. EDT March 24, 2008

WASHINGTON (MarketWatch) - Boosted by a record decline in prices, the U.S. housing market showed signs of stability in February, with sales of existing home rising modestly for the first time in seven months, the National Association of Realtors reported Monday.
Resales of U.S. homes and condos rose 2.9% to a seasonally adjusted annualized rate of 5.03 million, ahead of the 4.85 million pace expected by economists surveyed by MarketWatch. See Economic Calendar.

It's the strongest sales pace since October. Sales are down 23.8% compared with a year ago.
Inventories of unsold homes fell 3% to 4.03 million, representing a 9.6-month supply at the February sales pace. Inventories are not seasonally adjusted, but a decline from January to February is unusual.

The median sales price plunged to $195,900, down 8.2% from a year earlier, the largest price decline recorded. Prices of single-family homes fell 8.7% in the past year, also the most since the records begin in 1968.

Since the credit crunch first hit in August, resales have been "stuck" in a narrow range around 5 million, said Lawrence Yun, chief economist for the real estate agents' trade group.
Sales rose in three of four regions, with the West still lagging. Sales rose 11.3% in the Northeast, 2.5% in the Midwest and 2.1% in the South. Sales fell 1.1% in the West.
Median sales prices are down 13.4% in the West, largely because the market for jumbo loans above $417,000 remains frozen, Yun said.

The median sales prices can be affected by the mix of home sold regionally and within different price ranges. Two other home price indexes that track resales of the same home over time will be released on Tuesday.

Sales of single-family homes rose 2.8% in February to 4.47 million, the second increase in a row and the fastest sales pace since August. Inventories of unsold single-family homes fell 5.5% to 3.43 million, a 9.2-month supply.

Sales of condos rose 3.7% in February to 560,000 annualized. Condo sales are down 29.7% in the past year. Inventories of unsold condos rose 14% to 604,000, a 13-month supply.

Rex Nutting is Washington bureau chief of MarketWatch.

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From Dave Huffy...

I wanted to re-post this comment from Dave Huffy from December of last year as I think it speaks volumes about just how important staying connected to your customers really is...



Dave Huffy said...
As we continue to stress the concept of incubating our customers in the 210 Days model and prepare them for their life choice of purchasing a home, we are reminded by success as our evidence of the working 210 Days model.Recently, three of our Lending Tree customers turned from incubating leads to pending deals and if it were not for continuous follow up on the agent’s part and their urgency in keeping the prospect alive, and without their diligent efforts, these customers very well might have slipped through the cracks.All three customers will be enjoying their new homes by the end of the year. These customers were incubated from as long ago as last June (2006) and more recently from this January. Remarkable is that each customer at any given point in time, either was not able to purchase a home due to financial reasons, or had not been actively looking for months at a time. The drive that the agents had for their customers to purchase their homes became an exciting positive experience that was shared by both the buyer and agent. This constant persistence was recognized by the customer and influenced their motivation which made them believed that they could and will buy a home. With this enthusiasm shown by both parties, these customers felt that they could rely on the agent to help them during both the good times and bad times that may and can occur during the home purchasing process.

December 13, 2007 11:41 AM

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Leads...Like shopping for fruit?

I think not.

We are constantly hearing from folks about the need for "fresh" leads. Things like "These leads are dead" or "These leads are old" or "These leads are stale by the time we get them" are frequent overtures to many in the lead generation business.

First things first. Leads are "PEOPLE" they don't go bad(I hear ya, arguable) they simply come without a flag indicating ready for consumption now.

Whenever we buy something, food in particular, and don't like the way it tastes, we have a tendency to assume it might have gone bad and we look for a more fresh specimen. We always assume fresh is best. If this has been around awhile and I'm not sure about it's freshness, just give me a fresh one...to be safe.

Now wait a minute. I remember one time when my mom handed me a banana and said "Here, this is gonna be great!" and I looked at that banana and saw some brown spots beginning to form on it. I took the banana and carried it around for a day, wondering if it was going to be OK. Eventually I took the banana back to my mom and said. "This one looks bad. I think it's old. Give me a fresh one." So she did. She gave me the freshest banana she had. Green, no, emerald or perhaps leprechaun was the color. I was delighted. I tried to peel it and finally succeeded with great effort. I took a bite of that fresh banana and WOW. That was the most bitter thing I had ever tasted! It tasted like someone had sucked all the saliva right out of my mouth and replaced it with bitter cotton.

I really didn't appreciate why this didn't work in my favor but mom explained with one simple comment. "Oh, didn't you like that? I guess it wasn't ripe yet. Did you want a ripe one? Because I thought you said fresh."

You see where I am going with this. Fresh is great. Fresh is to be commended. But fresh isn't always what we need.

Leads(people) generated on the Internet from virtually any source are fresh indeed. Sometimes they are even picked before they should have been. Our research has confirmed that these fresh leads take an average of 210 days to ripen.

When you are in a situation where you haven't got enough business for your needs in the here and now, rather than asking someone for a "fresh banana", look over on that shelf where you put the other "bananas" and find one that has ripened.

You will probably have to pick each one up and turn it over and look at it closely and ask it all the right questions, but if you do, you surely will find a ripe one.

Look back at your leads you've received over the past 210 days and check them out, call them, ask them questions and you'll probably find a few that have ripened.

Indeed, leads are not like shopping for fruit where you look for the freshest. Rather they are like enjoying the fruit you have already bought when it's perfectly ready.

You've already put in the time and effort, get our there and enjoy the fruits!

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Great information from Industry experts

Frequently we come across information from real estate industry experts that give some really good advice and encouragement. This link is to one such article. Hopefully you will find something of value here.

As we get this blog going for our 210 days to success agents, I encourage you to comment on the posts and get the discussions going about what things we can do to make all of you more successful.

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