On the evening news the other night, an item from Pittburg, KS caught my eye. What looked like a psychedelic 1,000 legger approached people on the street, which caused some to run and some to gawk. It was performance artist Jimmy Kuehnle wearing an inflatable suit to challenge people's perceptions and make them think.
As the artist puts it, "Our ways of thinking are very much in a routine and this is to break you out of your routine by walking the line between shocking and the absurd." You recognize a tree as a tree or a truck as a truck but, the big orange creature defies categorization."Now," continues Kuehnle, "you're mind [is]vulnerable and new thoughts can happen. You might remember that five minutes later, it might change what you're going to do tomorrow. You never know, so that's the point of it."
The suit is one in a series of inflatable costumes that that artist has worn around the country. Powered by 12v blower motors, the suits allow Kuehnle to glide along the ground and fit in small space. Brightly colored, the suits attract the attention of pedestrians and aim to foster creative thinking.
Absurd times provoke absurd reactions and absurd solutions. With economic challenges in our country that hit real estate agents head on, there is a need for fresh thinking in how to approach our clients.
As real estate professionals, we aren't likely to put on funny suits but we still must work out creative solutions with our clients who are faced with foreclosure or with the desire to buy a home with limited ability to get a mortgage.
I guess I wrote yesterday's blog about needing help navigating through a myriad of new housing provisions a bit too soon. Today, FHA announced new rules that flesh out HUD Secretary Shaun Donovan's announcement in December that buyers would soon have to put more skin in the game.
Some of the rules will require lenders to maintain more reserves and make responsible loans, while being more accountable for bad decisions in the past. Lenders with sloppy underwriting practices could lose the ability to write FHA backed loans.
Other part of the announcement more directly affect borrowers, will need to have better credit scores (580 or above) when their down payment is only 3.5%; those with lower credit scores will may have to put 10% down. In addition, the Mortgage Interest Payment (MIP) will increase to 2.25% at the beginning of the loan. Seller contributions to closing cannot exceed 3%, half the current 6%.
These regulations are intended to strengthen an FHA weakened by an avalanche of delinquent loans and insure further access to the program.
The lender provisions take effect immediately but the remainder will be activfe until the late spring-early summer. People hoping to use the tax credit will still go by the old rules. Once the credit is done, buyers will be faced with higher credit requirements and less help - a double whammy, especially since the credit is unlikely to be renewed again.
As I have said here before, a responsible agent should not oversell the benefits of homeownership to a shaky buyer. For those potential buyers who are wavering, now is a great time to buy.
The past holiday season, at least five people I know got GPS units as gifts. Either roads are more confusing these days or people are more confused when they get behind the wheel. In any case, every recipient was delighted.
This winter, real estate agents and potentials buyers as well could use GPS to make it through the pile of new government programs and regulations aimed at helping homeowners and stabilizing the housing market the last few months. We have housing credits and new Good Faith Estimate (GFE) forms, plus a new policy that puts anti-flipping rules on hold and allows homeowners to quality for FHA financing when they buy homes from short term owners. Private buyers can see view foreclosed homes 10 days before investors can.
These new rules work together to make it easier for people, especially new first time home buyers, to get into entry level housing. It's up to real estate agents to know how to navigate the crowded field of new rules.
We have talked the last couple days about keeping our attitude positive and seeing an abundant field of customers. Our mindset is important, but to maximize our opportunities, we must keep ahead of the knowledge curve so we can navigate the system for our customers.
"The brain is a wonderful organ; it starts working the moment you get up in the morning and does not stop until you get into the office." Robert Frost
The secret to success in real estate - and in life - is much closer than many of us realize: it is right inside our head.
During my years of helping agents, I have found that separates the successful from those who constantly yearn is attitude. And the good news is, by shifting your mindset, you can see dramatic results.
For a fuller discussion of this topic, see Change Your Mindset and Thrive in Your Business This Year
Make A Commitment: I will connect in abundance while having fun!
Deadline: _________
Did You Know That January is a "Warm" Month?
If you have been digging out from recent snowfalls or are still recovering from cold spells throughout the country, this may be hard to believe.
The warm and fuzzy feelings of the holidays are still lingering, and that makes January a fine time to call on prospects. Remember, sales are based on emotion. So don't forget the FORD script (talk to them about their Family, Occupation, Recreation and Dreams).
Remember that people want their Realtors® to be professional at all times but they like the human touch too. Nothing is as interesting to people as themselves and the things that concern them. Few things are as obvious as feigned interest. So while you‘re listening to their response, don't check your phone, text another client, look off into space, read, utter disinterested "un huh's," or appear bored. Unless 10 minutes have passed and they are still recounting the third day of Christmas, don't cut them off! Any of those things can bring the realty of January weather into the conversation and kill the mood.
Remember that many agents don't bother working near the holidays or in the usually-slow winter months, which is so much the better for you - less competition! This year, with the housing tax credit, things may be a little busier so customers are more emotivated. You may think you are too busy to listen to people but if you listen to the answer to the FORD scriptquestions, you will have painlessly obtained the answer to many of the prospecting and loan qualification answers you need away.
You can come away knowing what kind of home they need based on their family size and needs, where they work, what they like to do, how long they plan on staying in the house, etc. - a lot of useful stuff, extracted effortlessly.
Put this information to work, find the client a house, and warm up your sales figures as the year gets rolling.
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