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A Plea to the National Association of REALTORS(R).......SHUT UP!!

11-21-09

Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc

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Office: (407) 870-9003

Mobile: (407) 873-2747

Florida real estate broker 407-873-2747 Hi folks. This post is inspired by Linda Davis' great article "The NAR Predicts Sunshine and Lollipops". Her post is referring to the NAR's Chief economist Lawrence Yun once again making statements about the Real Estate market that are really nothing more than "spinning" reality to help REALTORS(R) put money in their pockets. As a REALTOR(R) myself I personally find his comments on the state of the market embarrassing. Why can't he just be truthful?

In 2007 we were asked to pitch "Now is a GREAT time to buy Real Estate". Fortunately I didn't jump on that band wagon either. In November of 2007 the average price for a house in Poinciana Florida was $177,600. Today it's $75,000!! That's a decline of 58%. Sure looked like NAR nailed that one!

Here's a post I wrote in 2007 showing what the consumer thought at the time about the NAR's foolishness. Will they ever learn?

This a follow up to "Now is a GREAT time to buy Real Estate! Or is it?" In that post I was pointing out how our local board(and now FAR) are asking us to advertise "Now is a great time to buy Real Estate." My thoughts were and are that this is actually being less than honest and I do not agree with this type of advertising. Pop over and read the post if you haven't already.

Anyway, I've had quite a few consumers who have read and left their opinions on that post. Here are their responses: (the comments have been edited for length only).
******************

FROM STAN:

Anything the NAR says now doesn't make any difference in the consumer's mind as they have looked like fools for the past couple of years. With an approval rating on par with Congress, there's little room for any downside movement. Let's see....they said the market was going to bottom out and begin another upward movement....when was that? LOL Then, it's the end of '08 and now it's '09 and in six months, it will be '10.

You just keep telling the truth and you'll continue to do just fine. For ANYONE to say it's a great, or even good time to buy in FL is blowing smoke. Patient, careful buyers will know when it's the right time to buy and not based on any slogan by some trade organization. The same people who said it was a great time to buy this time last year, overpaid by how much??...10%, 20%, or more in some markets?

The only thing more laughable than "Buy Now" is "It's different here". After reading the market numbers for some of the markets represented in the comments, who are they trying to convince...clients or themselves?

FROM WAR EAGLE:

Thanks for displaying a beacon of conscience in a turbulent market. Please know that your honesty is what people are paying you for. Buyers/Sellers user Realtors (R) because they need advice from someone they can trust. For most people, buying a home is the most significant expenditure that they will make in their lifetime. The idea that their Realtor(R) would have "money in their pocket" at that time, versus the well-being of their client is appalling. In all honesty, your profession is due a massive shake-up, and when it is all said and done, those that have had integrity will leave with their reputation intact and will not have to compete with all the greedy johnny-come-latelys for listings. Again, thanks for the honesty.

FROM DAVID:

As someone who is not part of the industry, I can tell you that I would NEVER use an agent who parroted that kind of garbage either in an ad or in person. Really, it would be equivalent to you saying "I am either an idiot or a con artist, and I'm hoping you are dumb enough to believe this transparent propaganda. Please hire me."

If you have built your business on honesty and trust, now is not the time to abandon that policy. The era of the Huckster Realtor is coming to a crashing halt. In a few years, with any luck, the only real estate agents left will be those who have distanced themselves from the NAR and its self-serving hype, and who have earned the trust of their customers.

FROM WEARY CONSUMER:

Mr. Tutas - I applaud and appreciate your integrity. Stand by for something less pleasant for others: Regrettably, far too many agents are blind to the circumstances around them. A famous quote says "It's hard to get a man to understand something when his job depends on him not understanding it".

This is the current case with RE. QUIT CALLING BOTTOMS in the market. You are destroying your credibility as professionals. What if you are wrong? So you get the sale, you will be thought of as a swindler forever.

I am a high 700's FICO no-debt, non-contingent buyer with cash in the bank. And every time at an open house when some agent tries to tell me it's a great time to buy, I feel insulted. As if most agents would ever tell you that it is a bad time. I've met a few, but not many.

I DO PLAN TO BUY. I am not waiting for the bottom. But I am sick of these agents insulting my intelligence with their fast-talking sales hype. I know there are good realtors out there. I am working with one. But the rest of you better get straight with the facts and quit blaming the media. Most of the gullible buyers are locked into an underwater house.

Now, you have the people like me. We didn't get in this position of power by believing sound-bite advice. I sincerely apologize to the conscientious and competent agents who truly have their client's interests as a priority. But the rest? Your world is changing, and you need to realize it fast.

**************

I'm glad I didn't tell folks back in 2007 that "It's a great time to buy Real Estate". These people are now way under water in my area. I also won't be telling buyers now that they can count on 4% appreciation next year. Will you?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://CentralFloridaShortSales.com

http://ShortSaleSuperStars.com

Are you a Florida REALTOR(R) looking for a change? Check it out.

CENTRAL FLORIDA REALTOR(r) OPPORTUNITIES

62 Comments

Will I have to sign a promissory note if I do a Short Sale?

11-19-09

Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc

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Office: (407) 870-9003

Mobile: (407) 873-2747

Floirda Short Sale Broker www.CentralFloridaShortSales.com

Possibly. I have found that more times than not the Seller is not only willing to but wants to make a cash contribution or sign a note to get the deal done. It helps them to feel better about their situation. Most people WANT to pay their bills and honor their obligations

Our job as your Short Sale Agent is to give you, the Seller, the facts and let you make the decision.

Here are two responses recently received from Bank of America and how they were presented to my Sellers.

What Bank of America is really saying is "Yes we approved your Short Sale request now let's work out the details". This is the response we want. Right?

CASE #1

In response to your counter offer, BofA will not budge. They rejected your offer of $500. Below are the 2 options they have given.

OPTION 1: total proceeds of sale toward the 2nd $7,500.00 Can be any combination of proceeds of sale AND 'cash contribution.

OPTION 2: $3,000 proceeds of sale PLUS new deficiency note for $5,000.00, payable at $150.00 each , 0% APR.

We already have $2,350 to give to the 2nd so subtract that from the $7,500 figure leaving $5,150 needed for the first option and for the 2nd option it would require $650 cash and a note for $5,000. The notes are soft which means they have zero interest and they are unsecured.

Now we could try to get the buyer up higher. Although I personally feel this may cause an appraisal issue with their mortgage. The note could possibly be negotiated for a longer term, say 5 years. That would make the payment $83.33. They may even go 7 to 10 years.

Please consider your options and let me know. We need to give them a response no later than tomorrow.

CASE #2:

I have just received an email from BofA. They are asking you to contribute either $3,000 cash at closing or they want you to sign a $10,000 soft note. The note would be interest free. I would think they would be willing to go either 5 or 10 years. on the note. 5 years would have a payment of $166.67 per month and 10 years would be 83.33

What are you thoughts? The other items are things I would take care of. Please let me know as soon as possible as time is of the essence.

***I am not an Attorney and cannot give legal advice. You are advised to seek competent legal and tax advice. Any decision you make may have negative repercussions.

Now I don't know what these particular Sellers will decide. They may accept the offers or they may want to negotiate. Once they decide I will act accordingly. I do feel that both of these Short Sales will get closed. Any questions?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://CentralFloridaShortSales.com

http://ShortSaleSuperStars.com

Are you a Florida REALTOR(R) looking for a change? Check it out.

CENTRAL FLORIDA REALTOR(r) OPPORTUNITIES

14 Comments

SURPRISING STATS WILL CHANGE WHERE, HOW AND TO WHOM YOU MARKET REAL ESTATE

11-19-09

Allison Stewart BROKER/ASSOC/REALTOR ®St. Cloud Florida

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Office: (407) 892-0040 x14

Mobile: (407) 616-9904
Secondary: (407) 545-8002

Real Estate marketing is the cornerstone of our business. If you read the featured post here on Active Rain yesterday INTERESTING INFO ON WHO IS BUYING AND HOW THE MARKET HEALS ITSELF FROM THE BOTTOM UP a recent survey shed some interesting light on how the market is changing and how those changes are affecting sales which are on the rise.

LESS THAN 1%

A Nationwide survey recently revealed that less than 1% of all home buyers who purchased their homes in the past year did NOT learn about the home they purchased from a Home Book or Magazine. If you are spending your advertising dollars in this medium you may want rethink it. You are missing 99% of successful buyers.

In fact 90% of them, used the Internet at some point prior to purchase. They generally started their search online and then contacted an agent. What sites were they visiting? Local MLS sites were the most popular (60%) followed by Realtor.com and Real Estate Company site (46% each) Real Estate Agent Web site were a close 4th at (45%)

MARRIED -VS- SINGLE, WHO ARE BUYING MORE HOMES?

Overwhelmingly 60% of the buyers were married. 21% were single women, outnumbering single men by over 2:1 (single men accounted for 10%)

BUYER RESOURCES: CHANGE FROM POINT OF ORIGIN TO CONCLUSION

Interestingly enough how they begin the process and how a buyer will ultimately end the process by completing the transaction change from the the beginning point to the conclusion.

87% Relied on a Real Estate Agent

WHERE ARE BUYERS BUYING?

54% of all homes purchased were in a Suburb or Subdivision. buying or selling a home in St. Cloud, florida call Allison Stewart 407-616-9904

Quality of Neighborhood was the number one influencing factor in the decision to purchase among 64% of the buyers surveyed.

26% felt schools were important

COMMUTING COSTS

Only 36% of the buyers felt commuting costs were VERY Important

Compared to 42% who felt they were only somewhat important.

What these numbers suggest is that the quality of the neighborhood still outweighs the convenience of the commute. 78% of the respondents had purchased a single family family home. In the suburbs, giving consideration to the quality of the neighborhood or subdivision, and and smaller more economical sizes of homes than were in demand 2-3 years ago.

Knowing how to market, to whom we are marketing and the best ways of reaching potential buyers will help us to streamline where to investment marketing dollars for successful sales.

EFFICIENCY DID HAVE WEIGHTED INFLUENCE?

On average 1600 square feet was the size of the home most first time home buyers selected, and 2100 square feet for second time or repeat buyers. This is sharp contrast compared to previous years where buyer demand was for large homes.

88% of buyers said heating and cooling costs were important. This couold be one reason they are trimming the square footage of the homes they are buying on a National average.

HOW ARE YOU INVESTING YOUR MARKETING DOLLARS?

6 Comments

INTERESTING INFO ON WHO IS BUYING AND HOW THE HOUSING MARKET HEALS FROM THE BOTTOM UP

11-18-09

Allison Stewart BROKER/ASSOC/REALTOR ®St. Cloud Florida

view my blog
Office: (407) 892-0040 x14

Mobile: (407) 616-9904
Secondary: (407) 545-8002

The market always heals from the bottom up" according to Paul Bishop, National Association of Realtors Vice President of Research. According to the recently released sales numbers 47% of buyers this past year were first time home buyers. Surpassing the previous high record of first time purchasers set back in 1991

"These buyers are critical to housing and a general economic recovery ...they absorb inventory, free existing owners to make a trade and stimulate related goods and services " said Bishop. He compared this rise to the last recession in 1991, where the same dynamic played out "first time home buyers started the chain reaction that led the nation out of recession" he said. Bishop credits tax incentives,record high affordability, and pent up buyer demand to this spike in recent sales. Economists would also credit the FED with suppressing any immediate rise in interest rates affecting home mortgages while the economy is still so fragile.

BUYER PROFILES ARE ALSO DIFFERENT THAN ONE WOULD EXPECT

The median age of a first time home buyer is 30 indicating that some are younger and some are older. They are planning to live in their homes for at least ten years. The typical cost Nationwide was $156,000 down 7% from last years figure of $165,000. 87% of First time Home Buyers surveyed consider their home to be a good investment." Single Family homes sold a higher rate than other forms of housing. In fact 78% of the home achieved were single family homes

HOW ARE BUYERS PAYING FOR HOMES? 96% Chose a fixed rate mortgage. (55% used FHA compared to 8% Using VA Programs) 61% of First time buyers used their savings as a down payment. 22% received down payment assistance as a gift from family. 6% received loans for down payments from family 6% tapped into a 401 (k) program

WHAT IS OLD IS NEW AGAIN- SAVING MONEY FOR A DOWN PAYMENT ON A HOME

39% of home buyers have cut back on luxury items, 38% cut back on entertainment and 30% cut back spending on clothing according to the study.

And a staggering 80% of first time home buyers are using the Internet.

HOW HAVE RECENT CHANGES IN REAL ESTATE AFFECTED SALES?

13% Experienced a Purchase Agreement that was canceled, terminated or fell through "This raises the question of how many potential buyers were unsuccessful because of problems with appraisals or loan qualifications. The market would be stronger without these problems" Bishop added.

Only 8% of applicants were rejected for loans (a 92% success rate) 12% of applicants said that financing their first home was more difficult than they expected. 8% of all buyers paid cash.

85% of Successful Home Sellers used a Real Estate Professional. Sellers surveyed want agents to price their homes competitively, find a buyer, market the property and sell within a specific time frame.

THE TAX CREDIT EXPANSION INTO 2010

The expansion of the tax incentive program will extend to homes placed under purchase agreements by April 30, 2010 and will include home buyers who have owned a home in the past 5 years.

Repeat Buyers surveyed had an average age of 48, earning $88,100 and plan to stay in the homes they purchased on average for 12 years. These buyers typically bought more expensive housing. The median price on a National level was $224,500

RECORD DECLINE IN FOR SALE BY OWNER PROPERTIES.

In the actual number of homes sold without representation was a record low according the most recent survey only 6%. Declining for the second year in row.

The most difficult tasks reported by owners attempting to sell homes themselves were,; preparing and fixing the home, understanding and performing the paperwork and selling within the planned length of time.

The overwhelming majority of successful sellers used a Real Estate Professional full service brokerage.

Want to know more about how to Marketing works?

74 Comments

FHA and USDA Buyers are NOT 2nd class citizens! Or are they?

11-17-09

Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc

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Office: (407) 870-9003

Mobile: (407) 873-2747

FHA Buyers, at least in my market, are normally placing the minimum amount down, 3.5%, and asking the Seller to pay 6% towards their closing costs. In a market where 87% of the sales are distressed properties, FHA Buyers, in the eyes of the Seller, are second class citizens.

It's not only difficult for FHA Buyers to find a property and get an offer accepted but....they pay more. That's right, the folks who can probably least afford it have to pay more to get a home.

Here are some stats I pulled today that will back up that statement.

During the period 1 October to 17 November 2009 there were 162 single family homes that sold in the Neighborhoods of Poinciana Villages. 30 of these were purchased using FHA financing.

***Check out this little chart:

	Beds	Baths	Sq Ft	List Price	Sold Price	Price/Sq Ft	LP/SP
FHA	3	2	1821	$76,280	$78,880	$43.73	104%
Others	3	2	1847	$70,267	$70,404	$38.63	101%
Difference	NA	NA	(26)	$ 6,013	$ 8,476	$ 5.10	3%

***Data pulled from the Mid_Florida Regional MLS on 11/17/2009 and is deemed to be reliable.

So what do you think about that? FHA Buyers are getting less house and paying 11% more. Even if you take out the 6% in closing costs assistance FHA Buyers are still paying 5% more....for less house.

Should FHA Buyers be treated like second class citizens? I don't think so. Maybe Sellers Lenders should have more incentive to help these folks get a home without having to pay more than others. OR...maybe Buyers need to save more money before getting into the housing market.

What say you?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com