Seven Ways to Attract First Time Home Buyers Today
Jay Papasan, VP of Publishing and Executive Editoron September 18, 2009
So with the clock ticking on the 2009 Home Buyer Tax Credit (which expires at midnight on November 30), how can you attract your unfair share of first time homebuyers? Here are a few ideas that can add a few closings to your list of things to be grateful for on Thanksgiving Day.
1. Create Urgency. In your marketing and prospecting, make sure potential buyers know there is still time and that they need to get moving today!
“Ms. Buyer, in this market, it can take 45 to 60 days to close on a home. So working backwards from the November 30 deadline, you’ll want to have an accepted offer no later than mid-October. That leaves only a handful of weekends to get you preapproved by a mortgage lender and identify the right first home for you. So you see we need to get started today to take advantage of this opportunity….”
Remember, they have 8,000 reasons to get moving.
2. Hold a First-Time Buyer Seminar. Work with other agents and your vendor network to make the presentation happen. The goal is to get face-to-face with potential buyers fast. You can host it anywhere—a library, community hall, school, place of worship or you can even turn an open house into a “First Time Homebuyer Tax Credit Info Center.”
3. Exchange E-books and Books for Appointments. Use a special e-newsletter to your sphere, a Facebook or Twitter post or a Craig’s List ad to offer free copy of our e-book “$8,000 Closer to Home” or the book Your First Home in exchange for a free, no obligation consultation.
4. Target Your Buyers. Take advantage of our First Time Homebuyer Surveys to target a select audience for your offers. For example, the KW survey indicates that 51% of those buying a first home with the tax credit are aged 25 to 30 and fully 46% are married. A quick look on Facebook tells me there are more than 31,000 Austinites between 25 and 30 years old who are engaged or married. How about a Facebook ad with the headline “There’s still time to claim your $8,000 Wedding Gift!” Offer the book as a hook for a free consultation.
It’s as easy as clicking on the advertising link on the bottom of your Facebook homepage and just follow the queues.
5. Trumpet the Opportunity. Average home prices have fallen back to Earth. Mortgage interest rates are at historic lows. Homes today are at their most affordable levels in terms of the monthly payments since the 1970s. Toss in the $8,000 tax credit and the door to home ownership has been kicked off its hinges. Does your sphere know this or have they been reading someone else’s headlines? Tell them. Our monthly This Month in Real Estate videos will back you up.
6. Know the Facts. Your potential buyers will have lots of questions. Share the First-Time Homebuyer Video and the one-page fact sheet to answer their questions and get them on the path to home ownership.
7. Create an Action Plan Today. To earn your unfair share of first-time home buyers before the deadline, put a plan of action in writing. It’s as simple as picking one or two strategies you can implement in the coming week and then blocking time on your calendar to make them happen.
My wife, Wendy, and I still own our first home, a small bungalow in Central Austin. About two weeks ago our renters contacted us and said they wanted to buy. Wendy guided them through the process and just this week they made an offer on a new construction short sale marked down about $60,000. In the end, they didn’t qualify for the tax credit but the deals to be had were too much to pass up!
So don’t let your buyers (or yourself) think it’s too late. It’s not. Act today and you can still have a full plate of closings come Thanksgiving weekend.
Thomas Merical
http://www.findahomesellahomenow.com/
Washington Report: Tax Credit Changes
by Kenneth R. Harney
RealtyTimes
The first major change to the $8,000 home buyers tax credit began moving through Congress last week, giving hope to real estate and building groups pushing for extension of the entire program before it expires Nov. 30.
House Ways and Means Committee chairman, Congressman Charles Rangel, a New York Democrat, combined several smaller bills into the “Service Members Home Ownership Act of 2009” late last week, with a floor vote expected this week.
The bill is intended to correct a flaw in the original tax credit legislation: By requiring buyers to occupy and own their first home for 36 months to fully qualify for the credit, the program creates serious problems when military, Foreign Service and intelligence agency personnel are transferred overseas.
During their absence, they are not occupants of their houses, and sometimes have to rent them out or sell. Any of these events make them ineligible to retain the $8,000 credit under current law. Ineligible buyers must then repay the credit to the IRS.
Oregon Congressman Earl Blumenauer, sponsor of one of the bills consolidated into Rangel's, said “it is absurd that thousands of Americans serving our country, away from friends and family ... must choose between their service work and home ownership.”
The Ways and Means committee's bill would waive the repayment requirement when a service member must sell a home within the 36 month period because of a transfer to a new duty station or overseas, and would count service-related absences toward the 36 month requirement.
Another provision in the bill would extend the $8,000 credit for another year for personnel who may have missed out on claiming the credit because they thought they wouldn't qualify due to an overseas posting.
The credit for these individuals would be extended to November 30, 2010 from November 30, 2009, provided the served outside the U.S. for at least 90 days during calendar year 2009.
The bill, which has bipartisan support, could be sent to the Senate for action as early as next week, Congressional sources told Realty Times.
More important for the housing market overall, however, is the precedent set by the bill's extension of the credit for an extra year. It's not a far leap from that position to a general extension of the entire $8,000 credit program to the same date.
The National Association of Realtors, National Association of Home Builders and the Mortgage Bankers Association jointly sponsored an ad campaign last week aimed at convincing Congress to give the credit program another year.
Realty Times will keep you on top of this fast-moving issue as it develops.
Published: September 21, 2009
Thomas Merical
http://www.findahomesellahomenow.com/
Real Estate Investment 101
by Broderick Perkins
RealtyTimes
It could be a good time to invest in real estate, given the abundance of foreclosures and other distressed properties with reduced prices.
It could also be a bad time to invest in real estate, if you don't know what you are doing.
There's the rub.
"It's a good time to invest, but it is difficult. Now when you go out to invest you are competing with a dozen offers. The investors are back," says Chuck Cryder, the broker for Century 21 A Property Shoppe in Salinas, CA.
Just like buying a home to live in, taking the real estate investment plunge requires taking stock of your financial goals, planning and lifestyle before taking the plunge.
Pretty much like buying any property.
If you've got the time, the money and the lifestyle that lends itself to managing a real estate investment, you are just about half way there.
However, both halves are pretty big halves.
The National Real Estate Investors Association says you've still got a lot of work to do.
Here's how much.
• Buy your own home first. The general rule of thumb is that buying your own home will not only put a roof over your head, but also background you in the full experience of buying and owning property -- financials, market conditions, maintenance and real estate professionals you'll need along the way.
What's more, your first home could later become your first investment property, a property in a market with which you are familiar.
"You could maintain your current residence as a rental and move up into a larger home or better location yourself. This keeps the basis on your original property intact, but gives you an opportunity to move should your life dictate," says Kim DiBenedetto, president of the Monterey County Association of Realtors in Monterey, CA.
There is one exception to the buy-your-own-home-first rule says Cryder.
"If you live with Mom or the cost of your rental housing is low, stay there and purchase investment properties first. If you can rent way below market value, I wouldn't disturb that," said Cryder, who has been an investor since 1968, when he purchased his first property.
However, in today's market, an existing stake in a home can have a down side.
"You will be required to put more money down, most likely a minimum of 25 percent and also have several months in reserves. If you are upgrading from your current residence, your lender will require a minimum of 20 percent equity in your current residence before they will loan to you for another property," said DiBenedetto, also an agent with Coldwell Banker Del Monte Realty in Carmel.
• Go back to school. Turn to the Internet, reputable books, successful investment groups, college and university level courses, even your state's real estate license program. You don't have to actually get a license, but you can become just as educated as a licensed agent. Individual real estate investors, salespeople and others who you've met on the way to investing are also valuable educational resources.
• Get professional help. The same way you find any competent, trustworthy and honest professional is the same way to look for a mentor, investment partner with prior knowledge or investment group. Seek referrals from friends, family, professionals with whom you already conduct business, co-workers and others you trust who've had a satisfactory, successful real estate investing experience.
"Now, more than ever, you need the experience of a competent realtor and lender to guide you through the process," said DiBenedetto.
• Learn your investment market. One market's bubble could be one investor's boom and another investor's bust. A home in one market could give you vacation rental income in a half year sufficient to cover the cost of principal, interest, taxes, insurance, home owner association dues, upkeep and other costs, but still not appreciate. Another home in another market may not bring you sufficient rent in a year's time to cover the cost of owning the property, but might appreciate more than enough to make up for your carrying costs over the long term.
The variables are endless and you'll need to measure your capacity for risk against market conditions.
• Finally, while some experts say you'll also need to develop an exit strategy in terms of unloading properties when they are no longer viable investments, Cryder says if you buy right and stick it out over the loan haul you won't need an exist strategy.
"When you've got the goose that lays the golden egg, be satisfied with the golden egg," he says.
Published: September 24, 2009
Thomas Merical
http://www.findahomesellahomenow.com/
More Biz in a Tough Market: The One Question More Realtors Need to Ask
by Brian Hilliard
Realty Times
Brian raises an interesting question that most Realtors aren't asking when it comes to getting more business in today's tough market.
With the market being as tough as it is, I'm often asked by Agents what they can do to get more business right away. And while I usually don't like to answer a question with a question, I think in this case, a question is exactly what the Doctor ordered.
Here it is: Of all the people you've talked to this week, how many have you made feel like they should give you their business? In other words, a lot of times we can be so busy talking about what we've done, and are going to do for people, that we lose track of first creating an environment where this prospect (or Referral Partner) actually wants to work with us, or pass referrals in our direction. And when you think about it, that makes sense.
Because make no mistake about it: There are plenty of choices out there for people looking to buy a home. And if we accept the fact that you're not the only Agent this person is talking to, then getting her to feel like she wants to work with you is absolutely crucial to closing the sale.
I'm talking about things like:
All of this comes together to create a general "feel," or "vibe" someone has about working with you. And the more positive you can make that initial feeling, the more likely you are to close the deal.
So what can you do to generate the right "feel"? Well, you'll first want to make sure that you always "Do What You Said You Would Do." That means sending out an email, returning phone calls in a timely fashion and showing up to meetings on time. A lot of times we can be so busy doing so many other things, that some of the "little stuff" can fall through the cracks.
And while that's fine every once in awhile with people who know you, it's an absolute killer during the introductory stages with a potential client.
I personally keep a small notepad on me at all times, and jot down little follow up items I need to take care of when I get back to the office. Things like, "send fax to Steve" or "email document to Sandy" all make the list.
That way when I get back to the office, I've got everything I need in one place (a small spiral notebook), and don't have to worry about chasing around a bunch of sticky notes, or worse yet, letting something slip through the cracks.
Secondly, go out of your way to position yourself as a problem solver. In other words, if someone says they're interviewing several Realtors™, and she'd like to talk to you about the possibility of working together, go out of your way to understand her situation and add value where you can.
As an example, instead of just going to the house and answering question after question about your credentials, have a few of your own that get at their situation and what they're trying to do. Questions like:
All of these are things that other Agents might not be asking, and shows the prospect that you're already thinking ahead. What you really want is the prospect to think, "Wow! I never thought about that before. If Sally is already working this hard for us now – without even having a contract – then imagine what she'll do when she's actually putting her mind to it." And they'll think that not because you dazzled them with all of your credentials, but because you created an environment where they felt comfortable in trusting you with their largest personal asset. Which obviously means more business for you.
You'll also want to take the time to listen to their situation – even if you think you've "heard it before".
A lot of times we'll be in such a hurry to show prospects how smart we are, that we forget to take a breath and actually let them get the words out on what they potentially need or want from an Agent.
However, by taking the time to listen to their situation, you're showing that you really do understand where they're coming from, and are in the best position to help them move forward. (Get it? "Move" forward?) Anyway, if you'd like some more ideas on how to get more business in today's tough market, just email info@agitoconsulting.com (Subject: Today's Tough Market), along with your name and zip code, and we'll be sure to send out our free report right away.
Published: September 24, 2009
Thomas Merical
http://www.findahomesellahomenow.com/
CEO Keller Williams Fairfax Gateway
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