Four Trends That Will Rock the Real Estate Industry in 2012

January 23, 2012 Leave a Comment

If there is one thing that I’ve learned in the real estate business over the years it’s that change is constant.  New tools, programs, regulations and innovators make this an industry that doesn’t stand still.

From computerization of Multiple Listing Service data to smart phones to mortgage preapprovals to digital signatures; innovation waits for no one.  You either embrace it or get out of the way.

So without further ado, here are my predictions for the upcoming year and some of the things that I believe will rock our industry (again):

1.  Listing Syndication and Internet Data Exchange (IDX) Will Come Under Fire

It has been commonplace over the last couple of years for companies and agents to syndicate their listings to as many real estate web sites as possible to increase the chance that their properties will get noticed by home buyers who will in turn contact an agent to buy a home.  Sounds like a plan – right?

Enter Edina Realty.  Edina is a mega broker with 60 real estate offices and over $5 billion in sales located in Minnesota, Wisconsin and North Dakota.  In late 2011, Edina stopped syndicating their listings to national websites.  Why would one of the top ten real estate companies in the US decide to shun syndication?  If you listen to them, there are three reasons: Read more of this post

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US Won’t be Nation of Renters

November 24, 2011 1 Comment

I read an article last week from Carla Hill, M.A., who works as the Managing Editor at the online publication, Realty Times, that describes the advantages of homeownership.  Her points were well presented so I thought I would share them here – - -

According to the National Association of Realtors®, (NAR) the U.S. will not become a nation of renters.

Currently, over 65 percent of Americans are homeowners, a rate that has held since the 1960s.  It’s no wonder why most Americans seek out a home of their own.

Homeownership has both financial and social benefits.  According to the most recent data from the Federal Reserve Board, a homeowner’s net worth is 45.9 times that of a renter’s.

“We knew that homeowners, on average, accumulate more wealth than renters,” said Ken Johnson, editor, Journal of Housing Research at Florida International University.  Johnson spoke at the session and conducted the analysis with Eli Beracha.  “These findings indicate that homeownership is a self-imposed savings plan.  Not everyone should own a home, but from a financial perspective, people who are planning to stay in a property over the long term can benefit from buying.”

This is no wonder why.  Despite recent declines in home prices, historically prices do rise over the long-term.  This means an owner is paying towards an asset.  They are building equity.  A renter, on the other hand, is paying for a living space for that month.  It is not money invested. Read more of this post

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Dying on the Vine

October 6, 2011 2 Comments

It is more important than ever to select a real estate agent that not only knows what they’re doing, but also can guide a buyer and seller through the complexities of a real estate transaction.

A recent study by the National Association of REALTORS® hits home on this point.  In August of 2010, 9% of all purchase agreements for real estate never made it to the settlement table.  Now – fast forward one year – the percentage of contracts canceled has doubled!  That’s right; we now sit at 18%.  Not a pretty figure.

There are many reasons for the explosion of unfulfilled contracts: appraisal issues, increased scrutiny of borrowers by mortgage lenders, home inspection problems, complex contractual documentation and unrealistic expectations of both the buyer and the seller.

So if you are about to get involved with a real estate purchase or sale, do yourself a favor and secure the services of a competent, reliable real estate agent.  After all, you want to be one of the 82% that successfully ends up sitting at the settlement table.

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REALTORS® Property Resource – The Good, the Bad and the Ugly

August 28, 2011 3 Comments

The REALTORS® Property Resource (RPR) is finally here in the Greater Harrisburg area.  Late last week, the Central Penn Multiple Listing (CPML) service turned on the spigot and rich, property data started flowing to its members.  Not that anyone noticed.  In fact the unveiling of this powerhouse tool for REALTORS® has been one of the best kept secrets in the Mid-State.  Go figure!?!

In case you’re one of the majority of REALTORS® or consumers who is wondering what the heck is the RPR, all you have to do is go to their blog site to get an overview.  If you’re looking to make sense of how the RPR may impact the real estate industry, read one of my previous blog posts on the subject.  I’ve been on record for over a year saying that I think this endeavor by the National Association of REALTORS® will cause major upheaval in our business – mainly with how local Multiple Listing Services (MLS) will function in the future.

So now that it’s here, let’s look at the product from different viewpoints and perspectives – in other words – the Good, the Bad and the Ugly sides.

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Is the Glass Half-Empty or Half-Full?

February 11, 2011 Leave a Comment

Many real estate agents over the past two years have found it very difficult to see the silver lining through all the dark clouds swirling around our industry.  Some of those dark clouds have signaled  a need for change in the way we do business – and we have changed.  But many of those dark clouds were nothing more than mirages that caused some in our industry to go on a self-imposed sabbatical.  They saw the glass  as half-empty and chose to ignore the fifty percent that was full.

Hey!  If you have a glass that is 50% full – work with it!  Start trying to figure out how you can fill the balance of the glass.  Here are some ways that real estate agents can focus on pouring more liquid into the cylinder over the next couple of months:

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The 2013 Real Estate Sales Tax Myth

February 2, 2011 Leave a Comment

Over the last two or three months, I have received a number of e-mails from consumers and REALTORS® alike that have forwarded the following to me seeking confirmation:

Did you know that if you sell your house after 2012 you will pay a 3.8% sales tax on it?  That’s $3,800 on a $100,000 home!  When did this happen?  It’s in the health care bill and it is scheduled to go into effect in 2013, right after the 2012 elections.  So, this is “change you can believe in” that Obama has been preaching?  Under the new health care bill – did you know that all real estate transactions will be subject to a 3.8% Sales Tax?  Since the bulk of these new taxes won’t kick in until 2013, most people won’t know what hit them until after the election.  This means if you sell your $400,000 home, you will have to pay a $15,200 real estate tax.  This bill is set to screw the retiring generation who often downsize their homes.  Does this stuff make your November and 2012 vote more important?  Oh, you weren’t aware this was in the Obamacare Bill?  Guess what, you aren’t alone.  There are more than a few members of Congress that aren’t aware of it either.  Why am I sending you this?  The same reason I hope you forward this to every single person in your address book.  VOTERS NEED TO KNOW!

To quote Sergeant Hulka (played by Warren Oates) from one of my favorite movies, Stripes, “Lighten up Francis!”.  Here’s the real story.

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Four Strategies to Put You on the Right Path for 2011

January 12, 2011 Leave a Comment

Are you ready for 2011?

Are you looking forward to 2011 with grand anticipation or tempered trepidation?  Here are a couple of thoughts and ideas to get you started on the right foot and make sure that it is your best year ever!

You wouldn’t know it from all the pundits who bombard us daily with doom and gloom but lots of homes are trading hands in the real estate industry.  When the numbers are tallied for 2010, approximately 4.7 million homes will have been SOLD in this country.  If we look back at historical data from the National Association of REALTORS® prior to the bubble (i.e. 2003-2008), this number was considered about ‘normal’.    To further illustrate my point, the stock market experienced year-over-year gains and the holiday shopping season produced a healthy increase of 15% from last year.

The bottom line – - – products and services of all kinds are moving!

In order to be a ‘mover and shaker’ in the upcoming year, a lot will hinge on your mindset and what you do NOW to prepare to be successful.  Don’t be afraid to shed old sales methods and outdated marketing approaches in favor of new skills and tools.  Here are some strategies to get your creative juices flowing:

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Five Tips for Deciphering Your Home Loan’s Good-Faith Estimate

September 6, 2010 Leave a Comment

I recently had an agent in my office who showed me their Buyer’s HUD-1 Settlement Statement form two days prior to settlement that had some inconsistancies when it came to the numbers jiving with the original Good Faith Estimate provided by the lender.  I found this article of the National Association of REALTORS® consumer website, HouseLogic, that provided some good answers to questions about Good Faith Estimates.  The article is reproduced here in its entirety:

Knowing how to read your good-faith estimate can help you save money on your home loan.

When you’re shopping for a mortgage loan, it’s sometimes hard to understand the jargon lenders use in the good-faith estimate explaining the costs and fees you’ll pay when taking out a mortgage.

When you apply for a mortgage, the lender has three days to give you a good-faith estimate of the fees and interest rate you’ll pay, as well as other loan terms.  Here are five tips for using the new three-page form to your advantage.

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