Sometimes I feel I'm harping about the right time to buy. But I want to make sure that I am getting the message out as best as I can. All the dynamics are indicating it is a super time for a first time home buyer or an investor to make the move into real estate. Here is a portion of what Deborah Ball of the RE/MAX Times has to say:
By Deborah Ball, RE/MAX Times Online Associate Editor
Low home prices. Historic interest rates. Tax credits. Stimulus packages. Bailouts. There's a lot of chatter about how these factors affect the real estate market, but not enough talk about a no-brainer financing option, according to one RE/MAX veteran.
FHA financing seems to be a neglected talking point on the national media stage, says Fred Doleac, Broker/Owner of RE/MAX Country Properties in Amherst, N.H.
Doleac wonders why more industry leaders and real estate agents aren't taking the opportunity to explain the attainability of FHA loans. The loans, which require only a 3.5 percent downpayment and a decent (but not necessarily excellent) credit score, are ideal for qualified, first-time homebuyers who have low or manageable debt-to-income ratios but may not have tons of cash for a conventional-loan down payment.
"All you hear in the news are naysayers telling consumers they won't be approved for a mortgage unless they put 20 percent down and have perfect credit," Doleac says. "But that's simply not true. Unfortunately, the popular perception is that money isn't available and you can't get it right now if you don't meet these astronomical requirements. That's why so many people aren't budging right now."
So, if you have been sitting on the fence waiting for the right time, it is here. Now get off the fence and call your Realtor. Don't have a Realtor, call me. My phone is always on. Colin Call 541-579-1615.
During the past couple of years I have worked with several potential investors who were looking to purchase investment properties for dimes on the dollar. This has been mostly a futile effort.
While reading an article by Greg Rand, CEO of OwnAmerica and author of the book, "Crash Boom: Make a fortune in Today's Volatile Real Estate Market", it dawned on me that I am working with the wrong investor group.
According to Rand the emerging individual investor today wants to get rich gradually, by selecting high quality properties in today's great market. They have jobs, own businesses and approach investing as a wealth management pursuit. They tend to be quality investors with cash, who want to set realistic expectations of returns. They intend to hold, not flip!
Now we look for solid single family homes, or smaller duplex units, in a good neighborhood. Priced well already, we try to negotiate the price a bit more at the start, but do not use gouging techniques. We are likely to go back after inspections and get help doing some repairs, or negotiate the price a bit more.
Our goal is to find a property that, when the negotiating dust settles, brings a comfortable cash flow to the investors portfolio. A 10% cap rate would be wonderful, but the right property with a 6-7% cap would do very nicely. Remember, we are now in this for the long haul, not a hit and run strategy.
This concept is designed for the individual who has the ability to put money aside for good investments, or is able to pay cash. There are still good deals out there every day, and more are coming. But...and this is a big but, as the economy corrects and we get closer to a balanced and stable real estate market, there will be less good deals.
Now is the time to start working on your retirement vehicles, and the wise investor will be including real estate in that equation!
Recently Margaret Kelly, CEO for RE/Max International, put out a press release regarding the upcoming 2012 Real Estate market. In her opinion we may be on an upswing with slow recovery within sight. I am attaching the bulk of her press release for your reading pleasure.
For those of you who are not familiar with Margaret Kelly, she is, along with Dave Liniger, a true visionary of our Industry. Mr. Liniger was recently recognized as one of the 50 most powerful people in the Real Estate Industry.
Here is the article:
RE/MAX Agents See a Recovering Housing Market in the New Year
Denver, CO
– The U.S. housing market will continue a slow recovery in 2012, led by stabilizing home prices and increasing sales. Those are among the key findings of a year-end survey of one thousand RE/MAX real estate agents who say housing’s vital signs are gaining strength. The quarterly RE/MAX Market Insights survey provides analysis of the national housing market from the perspective of active RE/MAX agents around the country.
Improving numbers
The majority of RE/MAX agents surveyed say housing prices will stay the same, or increase in 2012. Projections are the strongest for the Southern U.S. where 49.6% say prices will stabilize and 26.7% anticipate an increase. Agents in the Northeast see the biggest challenges, with 47.5% concluding that prices will decrease, 44.6% expecting prices to remain at 2011 levels, and only 7.9% anticipating an increase.
Nationwide, RE/MAX agents reported a 10.7% increase in their home sales in 2011, and project an increase of 29.3% in 2012. Asked to measure the strength of home sales, 62.1% of agents predict good to very good sales in 2012. Survey results are also available in an online infographic.
"
A sense that home prices and sales are improving indicates that the housing market is positioned for a gradual recovery in 2012," said RE/MAX Chief Executive Officer Margaret Kelly. "These agents have the best perspective on industry trends since they average more home sales than agents with any other national firm.
"
Obstacles remain
The major obstacles to the housing recovery cited by agents include sagging consumer confidence, followed by lack of economic growth, unemployment, concerns of more price declines and bank procedures.
Agents report that 52% of closings were significantly delayed in 2011, with bank procedures cited as the cause in 23% of the cases, followed by financing and appraisals. For sales that were canceled, bank procedures again was the leading reason, while financing, sales price and appraisals also were factors.
The majority of agents say such delays and cancellations were higher in 2011, than in 2010.
= more =
Buyers and sellers more realistic
Asked to grade buyers and sellers on how realistic they are about home prices, RE/MAX agents gave both groups a B-. That compares with a C+ for buyers and a C- for sellers at the start of 2011.
Common misconceptions reported by RE/MAX agents are sellers thinking their home is still worth as much as it was four or five years ago before the housing slump, and buyers believing that extremely low offers will eventually be accepted.
"
It’s certainly a positive trend that buyer and seller perceptions are changing to adjust to current conditions," Kelly said. "Those who are misinformed and try to time the market, rather than address immediate housing needs, can lose valuable opportunities
."
Other findings of the RE/MAX Market Insights survey, conducted Dec. 7-19 among randomly selected agents, include:
• Market bottoming out: Thirty-nine percent said their markets have already hit bottom; 34% say prices will stop dropping in 2012; 27% says prices will reach their lowest point in 2013 or beyond.
• What government can do to help housing market recover: 1) Streamline short-sale process; 2) Focus on job creation; 3) Increase refinancing help for underwater home owners; 4) Standardize lending practices; 5) Release foreclosed properties more aggressively.
• Five most common buyer incentives that agents are seeing: 1) Reduce sales price; 2) Pay closing costs; 3) Make repairs; 4) Buy home warranty; 5) Pay origination fees or points.
• Distressed sales: RE/MAX agents project that 20.3% of their home sales in 2012 will consist of foreclosures and short sales. That compares with 17.1% in 2011 and 15% in 2010.
RE/MAX agents have sold more real estate in the U.S. than any other company since 1998. They averaged 13.1 sales per agent in 2010. To find an agent or view homes for sale, go to www.remax.com.
Online survey of 1,004 U.S. RE/MAX agents specializing in residential real estate, conducted in December 2011. ©2012 RE/MAX, LLC. Each office independently owned and operated.
# # #
About the RE/MAX Network:
RE/MAX was founded in 1973 by Dave and Gail Liniger, real estate industry visionaries who still lead the Denver-based global franchisor today. RE/MAX is recognized as one of the leading real estate franchise companies with the most productive sales force in the industry and a global reach of more than 80 countries. With a passion for the communities in which its agents live and work, RE/MAX is proud to have raised more than $100 million for Children’s Miracle Network Hospitals, Susan G. Komen for the Cure® and other charities. Nobody in the world sells more real estate than RE/MAX. For more information about RE/MAX, please visit www.remax.com or www.joinremax.com.
For the New Year I have started to track my leads. Phone calls I make I am making a notation when and whom I've talked to and what the result was. My hope is that this will stimulate me to make more calls, and know who to follow up with. The Lead Tracker sheet I am using came from The Core, and is very simple. Name, Source(in detail), Result of call, Phone # or e-mail and number of calls made.
A simple chart that I am told will, if used daily will result in more sales and referrals than I can imagine. I am not really skeptical about this program, as I know it is all about the numbers. It is my belief that I can almost double my business by making eleven business related calls daily.
For example, I can call my sphere and have a simple conversation with them. And, perhaps at the end of the conversation ask for any referrals they may come across. A neighbor thinking of selling, a relative or...you never know. As I say it is all about the numbers, but it is also about being "real" when making these calls. None of us want to have generic phone solicitations, and I am trying my best to not become a pest.
How do you all go about your phone campaigns? I'd love to hear from you!!
 |
|
|
Brokering real estate in Lane County for the last 17 years. I specialize in residential resales at all price points. A member of the Platinum Club & Luxury Home Expert. Realtor of the Year 2011
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2012 ActiveRain Corp. All Rights Reserved
