Housing Opportunity Program
REALTORS® are ideally situated to improve housing opportunities where they live. They are the first stop for the prospective homebuyer or renter. Accordingly, REALTORS® can reach out - through personal involvement in their own communities - to those who need greater access to quality, affordable homeownership and rental opportunities.
NAR's Housing Opportunity Program was created in 2002 with the vision of positioning, educating and assisting REALTORS® to create housing opportunities for all. The Housing Opportunity Program offers programs, grants, trainings, and resources that help REALTORS® and REALTOR® associations expand housing availability and insure an adequate supply of rental housing and homeownership opportunities in their communities.
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♦ More About Housing Opportunity
♦ Video: The New Face of Housing Opportunity
HOP News & Updates
NAR Survey Shows Americans Want More Government Involvement in Lending
NAR's sixth pulse survey revealed that with an unstable American economy and slowdowns in the housing market, most consumers are open to the federal government taking a more active role in overseeing mortgage and lending practices. Review the new Pulse Survey.
New Home From Work Brochure for Employers
NAR has developed a new brochure for Realtors® to give to employers to explain the Home From Work program and employer-assisted housing benefits. The brochure is downloadable from the Home From Work web site and can be customized with your contact information. Download the brochure.
Employer Assisted Housing Conference
NAR hosted the first national conference on Employer-Assisted Housing (EAH), Employer-Assisted Housing: Bring Workers Home in Chicago in October. This one-day conference highlighted successful EAH programs from companies and local governments, provided strategies on ways that REALTORS®, housing organizations, lenders, public officials and other stakeholders can partner on EAH programs and workforce housing initiatives. Review the conference materials.
REALTORS® and Chambers Working Together To Promote Workforce Housing Solutions!
The National Association of REALTORS® (NAR) and the Institute for a Competitive Workforce (ICW), an affiliate of the US Chamber of Commerce, have collaborated to develop a report profiling efforts in five communities of businesses and REALTOR® associations working together to address the bottom-line effect of housing shortages on working families. Download the report.
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Slow Market Survival Guide
How to Survive and Prosper in Today's Slow Real Estate Market
By: Ben Curry
The news has been full of Doom and Destruction concerning the housing market. Is this really what's going on in the U.S housing market? Real Estate Agents had it easy during the booming market. As long as you had buyers or listings, you were guaranteed to make money.
Homes closed quickly and banks were quick to accept sketchy loans. Borrowers with no job could buy a house. People with damaged credit could buy a home with little out of pocket. And agents in their first year in the business could make six figures easy.
Remember not so long ago, when you could make your fortune in real estate. It was nothing then to buy a home, wait a short while, and then sell it at a tidy profit. And then do it all over again. Investors and house flippers bought homes and flipped them for big bucks.
All the spec home builders were selling their homes before they were even finished. Builders Ire making $10,000 to $30,000 more if they waited to the end of construction before they sold because prices Ire going up so fast. Homebuyers were waiting in line to buy, and sending personal letters to homeowners who had a home for sale telling them how badly their family wanted their home. It seemed like everyone was buying at the same time.
So, what happened and why has everything seemed to have come sliding down. Ill, when home builders, investors, developers and banks saw the buyer frenzy get started they all jumped in at once. Many lowered their standards and let down their guard.
Home builders started building more spec homes than ever before and new builders Ire popping up everywhere wanting to get in on the money. Banks lowered their lending standards and lent money to anyone who could fog a mirror. Investors bought everything they could get their hands on and don't forget all the would-be house flippers looking to get rich. Developers built way too many new housing developments and communities.
They all made a fortune for a while until home sales started slowing down. But they could not stop because many new homes, developments and communities Ire halfway done and had to be finished. I'm sad to say it but now it's all catching up. Interest rates started creeping up again.
Banks and lenders lent money to home buyers with crazy rates and the buyers are defaulting on their loans. They are unable to refinance their homes to bail out of trouble. Banks are now investigating more before granting a loan. Buyers got scared and started to re-consider buying a home.
Builders who overbuilt are stuck with multiple homes and discounting them just to unload them. Developers have over developed and now there are is a flood of lots for sale. Many new subdivisions are not even completed. Investors and house flippers are freaking out and doing whatever they can to get rid of their homes. Not everyone will sell and already builders, developers, banks and investors have gone belly up. Despite all this sellers Ire still thinking that their house was worth more money than ever.
The housing market is controlled by supply and demand. When demand is high and supply is low it's a seller's market and Seller's are in control. That's what happened between 2003 and 2005. Now the reverse is true.
Supply is high and demand is low. We are in a buyer's market. Buyers are making the rules and have become very discriminating with what home their money buys. It's not uncommon to have a buyer look at a home and not like one thing and decide to buy a different home.
How do you get an unrealistic seller and uneasy buyer
to the closing table?
I don't have a magic pill answer to that question, but it is a lot of work. Us agents now have to figure out how to survive this slow market. What can I do to make it? How can I get our listings to sell? How do I make money in this market? I'll go through and answer some of these questions.
So sit down... relax... turn off the television and grab yourself a warm cup of coffee or a cold soda and find your favorite easy chair. I want you to relax and have your eyes and ears open because this is going to be one of the most important guides you may ever read.
Selling a home during the hot market didn't take any skill. Throw a buyer into your car and show them the few homes available on the market. Or, if you knew someone that needed to sell their home, when you got the listing it was almost like a guaranteed check. So thousands and thousands of brand new agents were able to make money in this business.
Today's market is a lot tougher
Buyers are scared that the home they buy today will be worth less tomorrow. Sellers still think their home is worth what comparable home used to sell for. And if they reduce their price, they want you to reduce your commission. So, how do I get homes sold?
If I look at selling a home from a very basic level, there are two things necessary to sell a home. A buyer that has the money to buy it, and a house that the buyer likes that is priced where they have enough money to buy it. There are buyers out there buying homes right now.
2007 will be the fifth highest year on record for existing homes sales. 2007 will be a better year for sales than 2002. The year 2002 was a record year for sales up to that date. There is business out there. We just have to go out and find it.
The Key is Motivated Buyers and Motivated Sellers
If a seller or buyer is motivated, they don't worry as much about the market. They want to sell their home or buy a home, come regardless. Let me explain. If a seller must sell their home to move to a different city for a new job, they will reduce the price on the home to sell it so they can move. See, a motivated seller just wants to sell the home and get moved on to the next one.
They might complain about a lower price, but they will accept it because they want the new job. If the motivating factor is stronger than the amount of money they are ‘'losing'' (come on, the market went up 38% from 2004 to 2006 and you are now still priced 19% higher than 2004) because of a lower price, they don't care as much.
Despite conventional wisdom that buyers are good in down markets, buyers are actually a worse source of business in a down market. Let me explain. Buyers take longer to make decisions, they "nibble" more, and they will eat away your net profit versus taking listings. The best way to make money in a down market is to list more homes at a much greater rate than during the boom. You are going to have to pre-qualify listings and sellers much more. Before even going out on a listing appointment, you must determine the seller's motivation. The reason is simple.
The only sellers who will sell in a down market are those who are motivated. Sellers that don't have to move and are overpriced will only whine and complain. They will call and ask; "You told us we could get $380,000 for our home. How come you haven't been able to find a buyer yet?" After hearing enough of this you will be pretty fed up with the constant blame.
I read somewhere that an expert said that people get stressed out most from one thing. Things they can't control. And we can't control buyers and which home they buy. It's not like I can put a gun to a buyer's head and tell him he must buy this home. And no amount of marketing will bring in the buyer who wants to pay more money for a home when he can buy the same home down the street for less.
How do I find Motivated Sellers?
There are several sources: FSBOs, Expired Listings, and Foreclosures. The key is to find sellers just like usual, but to determine how motivated they are before wasting time on them. For me, the absolute best source of new listings has been Expired Listings. When I realized what it took to survive this slow market, I focused most of my time on Expireds. Here's why.
Expireds are the easiest sellers to convert to a commission check. They have already listed with an agent (so they are willing to use an agent), they are motivated (they have already been on the market for 6 months), they aren't listing with the agent that promises the highest price, and they are willing to price the home right.
Now, there are lots of expireds to chase. And, they are very receptive to my sales message. Overall, it is much easier to grow your business and production today than it was during the boom. The trick is to know how to get the listings sold. That is what I learned how to do in 2006 and 2007, after the market had shifted. Prices were coming down, and you couldn't sell anything unless you asked for and got price reductions. I have actually put together a program that any agent can use to list expireds and get them sold.
Here are the three things you must be able to do to be successful with expireds:
I have put together a solid system that handles all of these items. It comes with solid letters you can send, a good script to call the expireds, a listing presentation that closes them, and an explanation of how to get price reductions. I have packaged all of these for sale as what I call my Real Estate Agent's Motivated Seller Gold Mine System. You can get more info on this system here www.cuttingedgerealtormagazine.com/Motivated_Seller_GoldMine.html.
Not all homes are affected by the current market. If your home is priced under $200,000 in our area you're in pretty good shape compared to the rest of the market. The Gen-Y, First Time Buyers in our area are still buying home. Gen-Y is the people born between 1978 and 1998. These are called ‘'Echo Boomers''. Their number is estimated at 78 million population. These are starting to buy their first homes. Buying your first home is very exciting. First time buyers are not as worried about price declines that scare off move up buyers.
Also, in big cities like New York and San Francisco the expensive homes close to the urban center are going up in price and demand. With the rich getting richer, demand for premium properties is high. The rich people in these cities are willing to pay top dollar to live close to work and in the city. With ‘'Urban Living'' becoming popular again these big city properties are popular again and the prices are rising.
See, There Is Still Plenty of Business Available
For The Agent That Works To Find It
If you think there isn't enough business, you'll never go out and get it. And if you aren't trying to get business, someone else is. Right now, monthly home sales are comparable to the years 2000 and 2001. So people are still buying homes. We simply have to find the buyers that are buying and the sellers that are selling.
A lot of agents think that they won't make any sales in December. I know of several agents who make December their most productive month in the year. How? They work just as hard looking for new business in December as they do during the busy months.
They work hard looking for business while all the other agents stop working. The other agents say to themselves; ‘'Oh, it's the holidays, no one is buying and nobody wants to sell. I might as well stay home''. There are still sales in December. A lot of re-locating buyers have to buy before the end of the year for their company's tax purposes. And a lot of listings will expire in December and the first of the year. Whoever lists those homes will have a great spring when the buyers buy. And you have little competition because no other realtor's are working to list and sell homes.
Set a date to stop work in December and a date to start working again in January. I always go back to work on January 2nd because that is the day to list a lot of expireds. If you work hard in January, you will have a great, profitable spring.
Few Agents Do a Decent Job of Chasing Expireds
Expired Listings are the easiest listings for you to take. But nobody is doing a good job listing them. Sure, some agents call them, but that doesn't always break thru the frustration they feel. Remember, they are frustrated because they have been on the market for 6 months and few buyers have looked at their home. My letters ring a cord with the expired seller. Then they educate the seller on marketing to sell a home. Basically in a very roundabout way it sells the expired seller on using me to sell their home.
For more info, go to my website (www.cuttingedgerealtormagazine.com) that enables us to list a lot of expireds. Using this system causes me to get the best priced, most saleable listings.
Here are a Few More Tips on Succeeding in a Slow Market
Don't hang around with negative real estate agents! 95% of agents are negative about the market, and they aren't going to buy a house from you. Spend the time instead on finding new buyers and sellers. Don't listen to their negativity. If you think the market is bad, you won't go out and work to find new business. And right now, the opportunity to find new business is better than ever. And I'm talking about new business that will make you money. Motivated sellers who will price their home to sell and be happy that you can sell their home.
Finding new business is easier in a Slow Market. It takes more work to get homes sold and buyers to buy in a slow market, but it is a lot easier to get the business in the door. Most agents don't succeed because they are unwilling to do what it takes to make sales in a slow market.
Here are the items you must do if you want to be successful in this slow market:
You must follow a plan. Here are the parts of the plan that I follow:
Real Estate Outlook: Index Says Positive Growth Underway
by Kenneth R. Harney
You might not hear much about them on TV or in the papers, but there are some economic signs popping up right now that are -- at the VERY least -- encouraging for housing and real estate.
Take the gold standard of all forward indicators for the U.S. economy -- the Conference Board's "Index of Leading Indicators," which is based on a broad survey of industry data and predicts economic activity three to six months down the road.
The latest Conference Board index registered its first increase in six months. Now I know that all we hear about these days is recession: it's either already here or it's about to happen.
But the index suggests that there should be positive growth underway in the second half of the year, if not sooner.
Buttressing that forecast is a new report from the National Bureau of Economic Research which found that industrial production in the U.S. showed an unexpected uptick in March.
Here are some other noteworthy developments this past week:
Now, we're the first to admit that these positive-sounding economic developments are not ballgame-changers for real estate.
We've still got lots of housing inventory to sell before calling an end to the down cycle -- and total sales dipped 2 percent in March, according to the National Association of Realtors.
We're still dealing with a lack of confidence on the part of some consumers who are afraid that maybe prices still have a ways to fall.
But here's the point: It's undeniable that there are some glimmers out there that the underlying economy and financing marketplace, which after all are what support real estate activity, finally may be headed in a positive direction.
Published: April 24, 2008
 Kenneth R. Harney writes an award-winning, nationally-syndicated column on housing and real estate from Washington, D.C. He is also managing director of the National Real Estate Development Center, a professional education company. He is a past member of the Federal Reserve Board's Consumer Advisory Council, a committee that by federal statute reviews all Fed actions on home mortgage, consmer credit and banking industry regulation. He served as a member of the U.S. Department of Housing and Urban Development's Working Group on Computerized Loan Origination (CLO) systems, and is a member of the Editorial Board of the Fannie Mae Foundation's journal, Housing Policy Debate. He is the author of two books on mortgage finance and real estate |
Date: February 14, 2008
RE: Implementation of the Two Mortgage Provisions in the Stimulus Bill
On February 13, 2008, the President signed the stimulus bill, H.R. 5140. This is the first in a series of memorandums discussing the implementation of the two mortgage related provisions included in the signed measure. The bill provides temporary increases to both the Federal Housing Administration (FHA) and government sponsored enterprises (GSE) mortgage limits until December 31, 2008. NAR will provide updated information on these provisions as it becomes available.
The new law makes seven temporary changes to the FHA and GSE loan limits:
• Raises the base FHA loan limit ("floor") to $271,050 (65 percent of the current GSE limit of $417,000),
• Sets the base GSE loan limit ("floor") at $417,000.
• Raises the maximum FHA loan limit from $362,750 to $729,750 (175 percent of the Fannie/Freddie (GSE) floor of $417,000)
• For all areas where the FHA limit exceeds $417,000, the GSE limit will be the same as the FHA limit. So, for example, if the FHA limit is $590,000, the GSE limit will also be $590,000.
• Increases the factor used to calculate FHA limits from 95 percent to 125 percent of area median sales price. Any area with an area median sales price above $216,840 will benefit from this change.
• Replaces the existing FHA ratios used to calculate maximum loan amounts for two-, three- and four-family units financed by FHA with the ratio used by Fannie Mae/Freddie Mac ratios to calculate their limits for two-, three- and four family unit properties.
Fannie Mae and Freddie Mac two-, three- and four family unit loan limits increase the same percentage that the single family limit increases. In 2006, for example, the GSE single family limit increased 15.95 percent and the mortgage limits for multiple units increased 15.95 percent. This change should result in significant increases in FHA limits for multi-unit properties. 2
• The Secretary of the US Department of Housing and Urban Development (HUD) will now have the discretion to raise the maximum FHA loan limit by an additional $100,000 for all properties (including 2-4 family units).
Implementation
HUD is required by the law to publish the new mortgage limits by March 14, 2008. These new limits will be effective for FHA immediately upon publication. NAR developed estimates of the temporary FHA and GSE single-family loan limits. This data can be found at http://www.realtor.org/GAPublic.nsf/files/new_loan_limits.pdf/$FILE/new_loan_limits.pdf
The NAR sent a letter to HUD on February 13, 2008, urging HUD to implement the limits as quickly as possible.
The implementation schedule is complicated by the fact that Fannie Mae and Freddie Mac will be using the same limits above $417,000 and Office of Federal Housing Enterprise Oversight (OFHEO) Director James B. Lockhart, III (Fannie and Freddie's regulator) noted in a recent speech that implementation could take up to three months with an additional month for partial enactment. Mr. Lockhart offered no explanation as to what partial enactment means. NAR sent a letter to OFHEO on February 13, 2008, urging immediate adoption of the new loan limits.
To date, Fannie Mae and Freddie Mac have not indicated their implementation plans once limits are established by OFHEO.
Eligible loans
FHA - The statute applies to "mortgages for which the mortgagee has issued credit approval for the borrower on or before December 31, 2008". We believe this means any loan which receives underwriting approval before January 1, 2009.
GSE - The statute applies to "mortgages originated during the period beginning on July 1, 2007, and ending at the end of December 31, 2008". We believe this means any loan originated before January 1, 2009. This also means that GSE can buy loans that meet the new loan limits that were originated after June 30, 2007. Consumers with existing jumbo mortgages may want to consider refinancing under the new loan limits prior to January 1, 2009.
What if I don't think my loan limit accurately reflects the median home price?
FHA has a process by which the local area median loan limits may be challenged. If you do not believe the published loan limit accurately reflects 125 percent of your median home price, you may provide HUD with comparable home sales data 3
to make the case that the loan limit should be raised. NAR is currently creating a guide for REALTORS® on how to challenge your loan limit and it will be available shortly.The opinions expressed below are from consultant Brian Chappelle, Partner, Potomac Partners 2127 S. Street N.W. Washington D.C. 20008. These are the consultants opinions and do not necessarily reflect the views of NAR.
When can Lenders or Brokers start taking applications? (This portion of the memorandum is primarily for firms with a lending component to their organization.)
While every client must make their own decision on this topic, below is an assessment of the risks.
Areas at the new base loan limit ("floor") of 65 percent of the current GSE limit ($417,000) = $271,050
Since this amount is established in the bill and the law requires that HUD implement the provision in 30 days, there appears to be minimal risk in taking applications at the higher base loan limit ("floor") immediately.
If you wanted to close a loan at the higher base limit prior to HUD's implementation of the statute, the primary risks are two-fold. 1) You would have to run the loan through the Total Scorecard again to remove the "Ineligible" message because of an excessive mortgage amount for the area. If the borrower's credit quality deteriorated in the interim, there could be an eligibility issue. You could underwrite the loan manually to avoid this issue and 2) the insurance endorsement process. A loan must be submitted within 60 days of closing. Otherwise, the lender is required to certify that the most recent payment was made in the current month (See Mortgagee Letter 2005-23 for FHA late endorsement requirements)
High cost areas (Above $271,050)
The mortgage limit is determined by calculating 125 percent of the area median sales price which is determined at the county or metropolitan statistical area (MSA) level. We believe that HUD is likely to use the same methodology and data that were utilized for calculating the 2008 mortgage limits. However, although it has been less than 30 days since HUD published those limits, it is also possible that HUD could update its data. 4
Risk is Divided into Two Categories:
First, for areas with mortgage amounts below the current Fannie/Freddie mortgage limit ($417,000), we see less risk since HUD will be able to make its decision independently and implement these limits reasonably soon (i.e. less than the month) and will probably not implement any special underwriting requirements. The main issue is, of course, the calculation process for the maximum mortgage amount. In this regard, maximum loan amounts are increasing in many high cost areas because of the 125 percent of area median calculation (instead of 95 percent that was previously used). The issue is really how much.
Second, for areas that will have maximum mortgage limits above the current Fannie/Freddie maximum limit, it is more complicated because of the impact on Fannie Mae and Freddie Mac, the role of their regulator (OFHEO) and possible special pricing and underwriting requirements for these loans in addition to the calculation issue discussed above.
We believe there is much more uncertainty about the speed with which the new provisions will be implemented for loans above $417,000 particularly for conforming loans. However, pricing and underwriting issues would also apply for FHA loans. For example, since these loans will be available for a short period of time (until December 31, 2008), it is possible that Ginnie Mae would form special customized pools that could affect pricing.
NAR Contacts
FHA Programs Regulatory Contact:
Jerome Nagy, jnagy@realtors.org, 202.383.1233
FHA Programs Legislative Contact:
Megan Booth, mbooth@realtors.org, 202.383.1222
GSE Programs Regulatory Contact:
Jeff Lischer, jlischer@realtors.org, 202.383.1117
GSE Programs Legislative Contact:
Lynn King, lking@realtors.org, 202.383.1156
Selling San Antonio One Home At A Time,One Client At The Time. Building Relationships One Client At A Time, One Referral At A Time.
A Real Estate Company Offering a Varierty Of Full Services To Seller And To Buyers.
We specialize in working with Investors and first time home buyers, in the San Antonio Texas and surrounding communities market area.
A qualified, competent agent will help you navigate the myriad of decisions that arise when buying and selling a home. An agent provides value to the homeowner in many ways:
< Adds experience, expertise and knowledage in all aspects of the sales and buying process, which including marketing, financing, negotiations and staging your home to sell.
< Handles all your showings, open houses and provides cutting edge marketing tools to market your home effectively and to close and fund on time.
< A professional real estate agent has a team of vendor partners and a sphere of influence to fall back on, to answer any question you may have.
< Will always have your best interests in mind to you and your family.
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< Your time is very valuable to us, we will allow you to spend your time effeciently and effectively.
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Are you thinking or are you ready to make the lagest Investment in home ownership.
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Will you keep these critical considerations in mind:
< How long you plan to live in the home.
< How long the home will meet your future needs.
< Your credit and home affordability.
< Where your money for the transaction will come from.
< Your ongoing costs and maintenance of home ownership.
Are you still unsure how or if you should buy a home after making these considerations, you may want to consult with a Loan Officer or a Financial Planner.
To help you assess how a home Investment fits into your overall financial future goals.
Will You Please Contact Us Today.
The relationship between a home buyer or seller and their agent is based on trust, understanding and commitment to shared goals.
We strive to continually improve and to enhance the quality of our sevice, to do this, we strive
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Naturally,
We welcome all your emails with questions and feedback and we appreciate the opportunity to 
assist you with your Real Estate needs.
Building Relationships One Client At A Time, One Referral At A Time.
Use this section to write about your specific areas of expertise. Do you specialize in first time buyers - listing high end homes - etc. Are there specific market area's that you specialize in? The more you write about your area's of expertise the more knowledgeable you'll sound to a potential buyer or seller.
Frank has always provided me with in depth knowledge of his properties, and is excellent at providing quick answers. I could always count on the fact that Frank will respond to all inquires rapidly, and follow up as well to make sure any questions had been answered clearly." February 21, 2008
Top qualities: Personable, Expert, High Integrity
Cory Berendzen
hired frank as a Real Estate Agent in 2005
"Frank, Is a knowleable realtor that knows how to take care of his clients. He knows the value of partnering with other real estate industry professionals to bring education and value to his customers." February 21, 2008
Jayson Smith, Independent Agent, Access Insurance Services
was with another company when working with frank at Realty Executive-North
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