Tupelo, MS

Residential Finance Specialist designates guides Buyers through mortgage maze and even ad to the value you provide to potential clients.

When I, AKA The EXiT Guy, look at the news and read about the financial woes facing so many homeowners today, I can breathe a sigh of relief, knowing that I am able to guide so many clients safely through the mortgage process.

As a Broker with EXiT Realty Premier in Tupelo, MS, I am among fewer than one-tenth of one percent of all Realtors nationwide, and one of only two in Mississippi, who have earned the Residential Finance Specialist (RFS)^TM designation awarded by the Residential Financing Council.

The Residential Finance Specialist^TM certification program goes into great detail about how the lending system works, how the various players-the banks, the mortgage bankers, and the mortgage brokers-make their money, and how each type of loan is structured. The two-day course on lending had a strong focus on "predatory lending" practices-long before the media or the legislatures began focusing on this issue.

Over the last few years, new loan programs and so-called ‘creative financing' made home buying a possibility for a large number of consumers who previously would not qualify for a loan and this created many of the problems we see today with the lending industry. With the training provided in the RFS course, I was better able to analyze lending programs and to realize that when things look too good to be true, they usually are."

"There are so many technical issues involved in the purchase and sale of real estate, and most buyers and sellers are just anxious to get the deal done and to move on with their lives. It's not just finding the right home at the right price, but also getting the right financing. I can play a huge roll in the long-term success (or failure) of the homeownership experience, as today's wave of foreclosures will testify.

When a buyer closes on a loan that is at the very top of his or her qualifying limits, then puts little or nothing down on that home, that's a blueprint for disaster. Add to that the fact that some lenders were encouraging borrowers to take additional cash to cover closing costs and even some move-in expenses. Many were allowing such loans without the need for complete documentation of income (stated income loans). When the housing market took its dive, or when borrowers earning power was diminished-even temporarily-keeping up with the payments or even selling the home to get out from under those payments became virtually impossible.

Most lenders talk about the ‘3 Cs' of qualifying for a loan: Credit, Capacity and Collateral. The RFS training emphasizes a ‘fourth C,' and that is ‘Comfort Zone.' Buyers need to recognize that there are many variables that can occur in one's home budgeting, including unexpected expenses, layoffs, etc. So even though they can qualify for a certain payment based on the lender's ‘3 Cs,' the amount should not stretch the buyer's budget to the limit, but should fall within a reasonable ‘comfort zone' allowing for the unexpected. Helping buyers identify that ‘comfort zone' should be part of the real estate counseling process. Hence, a real added value proposition as a Buyers agent.

Candidates for the Residential Finance Specialist (RFS) designation must complete twelve hours of actual instruction on financing and then sit for a written exam covering all phases of the home financing process. I received my certification in April 2002 and althought it is not a NAR recognized designation, it doesn't need to be to be a "real credential" for your clients benefit. I also hold the "Graduate Realtor Institute" or "GRI" designation and the "Accredited Buyer Representative" or "ABR" designation.

After reading some comments by Mr. Jonathan Miller of Miller Samuel, Inc., and his suggestion that the strong third-quarter numbers were the result of time shifting of second-quarter demand spurred on by mostly the first time homebuyer tax credit, I had to run our local numbers for comparison and here is what I found:

Tupelo and the NE Mississippi market (MLS reported sales only)

Year-over-Year comparision of 4th Quarter-to-date MLS numbers indicate that overall sales were up by 7% and volume was up by 19% while inventory declined by 6%. These numbers would normally be feel-good numbers but when one considers that they could be artificially driven by the tax credit deadline, then you must look closer.

Most areas around the country are reporting slight year-over-year increases in sales and it will be interesting to see how overall December numbers will compare to last year. With an expected slow rise in mortgage rates into Spring of 2010, it may be argued that there will be a greater urgency to buy before the extended tax credit expires again.

Here is how the numbers for Dec-to-date compare to same period of 2008:

Sales: Down 12%
Volume: Up 17%
Avg Sales Price: Up 33%

While it seems sales are down, under normal market conditions, this could be considered seasonal. What is suprising is that volume and average sale price are both up for our area. Going forward locally, new foreclosures, inventory, and the unemployment picture will be strong indicators of whether this market continues moving forward.

I know this picture is going on a couple of years old, but I still enjoy looking at it and wishing for a White Christmas in North Mississippi. If all things line up correctly, ie., air masses, fronts, moisture, etc, it can happen. In other words its kinda of like bad chili - if one ingredient is left out it doesn't work!

If we could only be so lucky.

Choosing a REALTOR in these Changing Times

Sorry for the length of this blog, but it was necessary to accomodate the case-and-point. The importance of choosing the right professional has never been more important in today's real estate climate.

Whether you are buying or selling, a qualified real estate professional will help you successfully navigate the entire process of a real estate adventure-transaction, regardless of the complexity. Searching for the right real estate professional can be a daunting task and when trying to decide what to look for in a good agent, the following topics and ideas should be considered.

1. Training/Education. We all know there simply is no substitute for age and wisdom. They go hand in hand. When considering "hiring" a professional to assist or handle a real estate transaction, experience, education, and training background should all be considered. Continued professional training and education is a strong indicator to an agents dedication and commitment to their profession. An agent who takes the initiative to continually improve their knowledge base, and those who train into specialties and receive special designations, are agents that should make the cut. Aside from the State of Mississippi requirement of only 8 hours of continuing education every two years, study initiative and the determination to be a good professional separates the knowledgable haves from the have-nots. Knowledge is key to everything in real estate, and together with experience and wisdom, is the formula for success. It is this success factor that is in the customer's or client's best interest.

2. Experience. Ever purchase a car without a test drive? Probably not. Choosing a real estate professional without a sufficient level of expertise is probably not wise either. While length of professional service alone is no guarantee of professional excellence, it is believed that, in general, the more experience a professional has, the more experiential knowledge they acquire. To consumers in the selection process, this becomes the most important element of qualification. left unchecked, an inexperienced agent can cost you, and most often, without your knowledge. When choosing an agent with a less than desirable level of experience, request references or ensure that the agent is under good tutelage or mentorship. * Initiation * Negotiation * Mediation * Calculation * Finalization These are not skills that are perfected by classroom study. They are indeed a skill set learned and improved over time and with actual experience.

3. Availability. Now here is a tough one. Some of the best agents you can think of are, well, usually not available when you need them. Good Buyer's agents are busy, usually with buyers. Others agents may be listing agents and that is what they practice. They list properties. An abundance of listings is, by design, what makes them successful. With this abundance, an agent relies on the odds of selling and most often equates to their top production status (especially through the consumers eyes). It is a percentages game, usually at the cost of customer service. Choose a busy listing agent and the liklihood of recieiving good customer service is greatly diminished. They will market your home the most convenient and efficient way they know as they will continue to list more homes. You should always choose a professional that will provide you full-time availability and whether you choose a Seller's or Buyer's agent, they should provide you with a commitment of service.

4. Service Ability. Related to, and in contast to Availability, good customer or client service is an important attribute of a good agent. They are good time managers and stay in contact with you, providing you with accurate and timely information about the housing market, enabling you to make smarter marketing and buying decisions, as necessary. Good agents are tuned in to their market and their clients. They will stay the course with you and be available when you need them. Question: Will the agent you use to market your home take you from beginning to end? Will they handle all the marketing aspects and advertising for your home? Or will they drop off your file with a company "staffer", letting them handle all the details of marketing, the sale, and all of the details of your transaction? Always ask an agent about their "process". There is as much individually here as there are agents. Question: Will your Buyers Agent spend the time with you to help you determine the right home. Will they provide you with a "complete" amount of information or provide you with the right resources? Will they willingly show you all the homes that meet your criteria, or just those in their inventory?

5. Technology Resources. Today, here is where the 'NOW' rubber meets the road. The agent you choose may have knowledge of the area and provide you with friendly customer service. But have they progressed in their profession, technologically speaking? Are they techno-resourseful? Can they deliver all of the above expectations with-and by-todays standards? Technology is well upon the real estate industry and has led to the creation of a new genre of Top Producers while some agents continue to conduct their business-as-usual. Agents that embrace and implement new technologies are spending more time and money leaning and implementing technologies to market their listings. It has become personal again. Most large companies make the technology and tools available to their agents, but agents must be willing to spend the money and extra time to effectively leverage these tools. Many companies simply do not train agents to be techno-savvy. This can be most evident by whether an agent has their own website or whether they employ additional tools or internet syndication methods in their property marketing plans. A good agent will offer value added services in addition to what their company provides.

Here is where good listing agents can make the overall grade:

* Implemented Technology

* On-line Social Networking

* Internet Marketing

* Internet Syndication

* Blogging

* Visual and Virtual Tours

* Multiplex Communications

* Leads Generation Systems

In summary, the agent selected to represent one's real estate transaction should be examined closely. Ensure that they meet or exceed your expectations. Ask questions about their qualifications using the above guidelines and ensure that you are comfortable with their qualifications. A good agent should not hesitate to provide you with a resume and the consumer should never hesitate to ask for one. Also, seek out references. Check with past clients with whom they previously worked. Your real estate agent is like the other professionals you choose in life...and it's usually not your cousin or your sister-in-law. There are many resources available to guide you in locating the right agent equal to your task. There are new standards in our business. Overall, it is an important decision and once you make your selection, you should expect results equal to that choice.

Happy Hiring!

Exit Realty is poised to become the largest most productively successful real estate company, ever! That's according to founder and CEO Steve Morris, who has been on the money with all of his prognostications since launching the fastest growing real estate franchise operation in N. American history. When top producing agents from other national franchises show up to join Exit, it is a pure testament to the forsight these agents bring with them and the complete understanding of future success this company can provide them and their families. Vincent Arcuri, previous top producing ERA Real Estate agent, believes that by 2019 Exit Realty will be the largest such franchise operation on the continent.

He also states that during his last full year with ERA that his team paid $56,000 to ERA in commission royalties for 2008. The modest and reasonable transaction fees with Exit Realty are capped and would have saved Vincent $52,300 that year alone. Add to that the money saved because of no desk fees and the money earned with residuals and one begins to understand the earnings potential Exit Realty provides to ALL its Associates. More than 100% split on commissions. Some agents with Exit are said to be earning more than 150%, 200%, 300% or even higher. Valerie Reyes, top sponsoring agent in New York, is said to be earning over 600% of her sales commissions.

Most traditional real estate agents do not understand the power of single level
residuals and should look to Exit Realty's corporate website for complete
information on Residuals, Retirement, and Beneficiary Benefits.

Visit http://exitrealty.com for information or for a confidential discussion on how Exit Realty can benefit you and your family, call or contact Randy Landis at 662-231-9107. Exit Realty Premier, Tupelo, MS.