Real Estate Sifter

RISMEDIA, September 30, 2009—Nearly two-thirds of single-family home builders are reporting a severe lack of credit for housing production, threatening the fragile housing recovery before it has time to take hold, according to a new builder survey of acquisition, development and construction (AD&C) financing conducted by the National Association of Home Builders (NAHB). 

“Across the country, home builders and developers are reporting a deterioration in credit availability and intensifying pressure on borrowers with outstanding loans,” said NAHB Chairman Joe Robson, a home builder from Tulsa, OK. “Lenders are cutting off loans for viable new housing projects and producing unnecessary foreclosures and losses on AD&C loans. With the pending expiration of the $8,000 first-time home buyer tax credit, these challenges threaten to halt any positive developments we have seen in the housing market in recent months.” 

In the latest NAHB survey of AD&C financing conditions, 63% of builders stated that the availability of credit for single-family construction loans worsened in the second quarter of 2009. 

Builders reporting deteriorating credit conditions cited the following reasons: 80% said that lenders are lowering the allowable loan-to-value ratio, 76% reported that lenders are not making new loans, 75% stated that lenders are reducing the amount they are willing to lend and 62% said that lenders are requiring personal guarantees or collateral not related to the project. Two-thirds of respondents reported putting single-family construction projects on hold until the financing climate gets better. 

While federal banking regulators continue to maintain that they are not instructing institutions to stop making loans or to indiscriminately liquidate outstanding loans, builders responding to the survey cited the top reason that lenders have given them for restricting the availability of new loans or for tightening the terms of outstanding loans is that “regulators are forcing lenders to do it.” 

NAHB believes that regulators and lenders should provide leeway to residential construction borrowers who have loans in good standing by providing flexibility on re-appraisals, loan modifications and perhaps forbearance on loans to give builders time to complete and sell their inventory. 

“There can be no meaningful economic recovery until the flow of credit is restored to housing,” said Robson. 

For more information, visit www.nahb.org.

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RISMEDIA, September 30, 2009—(MCT)—The market value of U.S. homes in 20 major cities rose by 1.6% in July compared with June, the third monthly increase in a row, according to the Case-Shiller home price index recently released by Standard & Poor’s. 

In July, prices rose in 18 of 20 cities. Only Seattle and Las Vegas recorded lower prices in July than in June. In the past year, prices are down 13.3% in the 20 cities. Prices are down 32.6% from the peak, and are now at levels seen in late 2003. Prices in all 20 cities were lower in July 2009 than in July 2008. The figures are not seasonally adjusted. Prices typically rise in the summer months when demand is stronger. 

The figures indicate a “stabilization in national real estate values,” said David Blitzer of S&P, who cautioned that the expiration of the first-time home buyer tax credit and increased foreclosures could put more downward pressure on prices. 

Falling home values had been a factor contributing to the global economy plunging into chaos because financial institutions made too many bad bets that U.S. home prices would never fall. Homeowners have lost trillions of dollars of wealth. Millions of homeowners have found themselves owing more on their house than it is worth. They cannot sell for what they owe, and they cannot refinance their home loans. Nor can they borrow against their home to finance their consumption. Rising unemployment is now driving foreclosures. Another wave of foreclosures from interest-payment only mortgages is anticipated. 

The Case-Shiller 20-city index tracks repeat sales on the same properties over time, but it closely tracks only 20 cities, not the whole country. Following are, in descending order, the price changes in each of the 20 cities over the past year, based on the Case-Shiller data for July: Las Vegas, down 31.4%; Phoenix, down 28.5%; Detroit, down 24.6%; Miami, down 21.2%; Tampa, down 18.4%; San Francisco, down 17.9%; Minneapolis, down 17.3%; Seattle, down 15.3% Los Angeles, down 14.9%; Chicago, down 14.2%; Portland, down 13.9%; San Diego, down 12.3%; Atlanta, down 11.9%; New York, down 10.3%; Washington, down 9.8%; Charlotte, down 9%; Boston, down 4.9%; Denver, down 2.9%; Dallas, down 1.6%; and Cleveland, down 1.3%. 

(c) 2009, MarketWatch.com Inc.

Distributed by McClatchy-Tribune Information Services. 

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RISMEDIA, September 30, 2009—Too many real estate agents work 50 to 60 hours a week, week-after-week, without anything to show for it. People can say what they want about us and our profession, but one thing is for sure- we work our tales off. 

Let’s face it, most of us work seven days a week. We work evenings, weekends, holidays and skip vacations – all to make a sale. Why? 

Because we operate on commission. If we don’t work, we starve. Plain and simple. We’ve got to “git ‘r done,” as Larry the Cable Guy would say. The problem is, for many agents, we have nothing to show for all of our hard work. Our commissions are quickly eaten up by business expenses or to put food on the table for our families. 

There are two primary ways for real estate agents to get rich. The first way is to build a business with value that can be sold for an attractive price. The second way is to focus on converting commission income into wealth. I believe it’s important to do both at the same time. Commission income does not turn into wealth. Commission income is usually spent. To get rich, you must consistently and proactively turn commission income into wealth. How you might ask? 

Save and invest a portion of every commission check you receive. Think about all of your home sales over the years. How much wealth would you have today if you automatically saved 10% of every commission check you received? Did you shudder at your answer? If so, now is the time to do something different. Every single home sale should make you richer. 

Our big challenge is we don’t have any special automatic savings plans like a 401k. My suggestion would be for you to do the following: 

1. Estimate how many homes you typically sell each month.
2. Estimate your average net commission.
3. Multiply your average commission by the average number of homes you sell to get your estimated average monthly income.
4. Multiply your average monthly income by 10%.
5. Set up an automatic withdrawal from your bank account to take the amount determined in number 4 above out of your bank account each month. 

This little five-step process, if followed and implemented, will make you wealthy. As an example, let’s assume you sell an average of two homes a month and your average commission is $5,000 per sale. This would mean your average monthly income is $10,000. You would set up an automatic monthly withdrawal so that $1,000 a month was taken out of your bank account. At the end of the next 12 months, you would have turned your 24 home sales into $12,000 of wealth-automatically. 

You can set up this “Get Rich” account just about anywhere. Consider E Trade, Vanguard, Fidelity, a money market account or a self-directed IRA. It really doesn’t matter. What matters is that you turn your commission income into wealth. 

Now, the final trick is to not touch this money once it leaves your bank account. Don’t go withdraw the money and use it to pay for your expenses. Fight to keep the money tucked away. Instead, do something to create additional income for your business. Go sell another home and protect your “Get Rich” account. 

I realize most of you who read this won’t follow this advice. This simply means that you won’t be any wealthier 12 months from today. That’s a shame because you work extremely hard every single day and you should have something to show for it. You can change this by setting up your “Get Rich” account and having money automatically transferred into it. 

Rob Minton, who reinvented his real estate sales business to sell 269 homes to a limited number of clients in one year, has written a very practical book on how real estate agents can sell more homes. For a limited time, you can download this book for free by visiting www.renegadehomesales.com. 

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com. 

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RISMEDIA, September 30, 2009—Have you often avoided making those “dreaded cold calls?” Do you dream of how much better your business could be but just can’t bring yourself to pick up the phone? 

You’re not alone. In the 12+ years that I have specialized in coaching real estate agents, I have noticed the same avoidant patterns in each of my clients. This article gives you 5 tips to make the process of cold calling easier. 

Tip 1: Change the name
I’m not kidding. Do the words “cold calls” send a chill up your spine? It’s no wonder- whoever created that term didn’t know what they were doing. So, change the term, because it’s inaccurate. First of all, many of the people you’ll be calling are leads. Second, why would you think cold? Are you cold? Is the receiver of the call cold? Not likely if you’re living in a human body. 

So maybe I’m exaggerating a bit, but the point is, call it something different, call it what it is, “direct response calls.” My clients do much better when they realize they are making direct response calls. 

Tip 2: Be in the right mindset
Are you calling to sell something? If so, put down the phone and start again. You are actually calling to give something and that is your time and expertise. Would you be scared if you had a gift you wanted to give someone? Unlikely. In the same way, be in the mindset that you have a gift and you are it. 

Why is this so? Well, think about the fact that you have something to offer. You know much more about real estate than Ms. Jane Doe. So if you call to let her know what properties have sold in her area, that is valuable information. Likewise, if you want to offer her a Free Comparative Market Analysis- that’s a gift of your time, energy and expertise. You should be proud to offer that. Guess what? If you are proud to offer that, she’ll most likely feel appreciative of the offer. Our energy and mindset is transferred to our prospective clients. 

Tip 3: Use a permission based approach
For example, when I do direct response calls, the conversation goes something like this, “My name is Maya Bailey and I work with real estate agents who want to double their income. If you’d like to take 30 seconds, I’ll be happy to tell you what I do.” Notice that I didn’t barrel my way through. I said as little as possible until I got their permission to continue. 

Use this script as a template to make your own direct response calls. For example,” My name is ____________ and I’m your local real estate consultant. I have some news about the value of properties in our neighborhood. If you’d like to take 30 seconds, I’ll be happy to…..” Is this getting more clear? The latest trend in marketing is permission based marketing. 

Tip 4: Get excited about the relationships you’ll make
If you approach this in a permission based way, people will be much more open and friendly to you. Instead of focusing on the occasional rude person at the other end of the line, focus instead on what you want. 

Most likely what you want is to make some connections with a person, in which you can follow up, convert them into prospective clients and then convert them into transactions. Let yourself feel how good it’s going to feel to close those deals. Pat yourself on the back because it all started with the courage it took to make direct response calls. 

Tip 5: Remember to reframe a “no” into a “yes”
First of all a “no” does not mean that you are being rejected. Neither does it mean that your service is being rejected. What it means is “No, not now.”

Secondly, do you realize that every “no” brings you one step closer to your “yes?” It’s a numbers game and you need a certain number of “no’s” to get a “yes.” Just remember to have thick skin and not take it personally. 

My experience as a coach to real estate agents has shown me that it’s all about attitude. If you are sold on yourself and your service and you convey that with pride and enthusiasm, the other person will be glad you called. They may even become a client. It pays to know that you are valuable and what you have to offer is equally valuable. 

Dr. Maya Bailey, author of, Law of Attraction for Real Estate Professionals, integrates 20 years of experience as a psychologist and 12 years as a business coach with her expertise in the Law of Attraction. Her powerful work creates a success formula for real estate professionals ready to double and triple their incomes. Get Dr. Maya’s free report, 7 Simple Strategies For More Clients in 90 Days, by visiting www.90DaystoMoreClients.com. Also, check out her new Success Program, designed to help you get focused, motivated, stay on track and create a Positive Mindset, no matter what. 

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com. 

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RISMEDIA, September 30, 2009—Brokers have suffered over the past few years due to eroding profit margins, lower sales volume and real estate prices. Historically, brokers have been slow to adapt to change, often reactive instead of proactive. 

Internet Practices. The industry’s slow adoption to Internet practices has allowed others to chip away at marketshare and/or position themselves between the consumer and the brokerage. Many brokerages are still operating Web 1.0 sites without a serious online strategy that includes an integrated approach to their websites, Internet marketing, social media and search engine optimization. 

Lack of Accountability. A second factor contributing to the current industry malaise is that its salespeople are primarily commission-only, independent contractors. Real estate agents are not generally held accountable by managers and, similarly, managers are not usually held sufficiently accountable by ownership. 

To move forward, brokers will have to take some significant steps to reinvent themselves and their companies in three very important areas: 

-Reinventing themselves. Brokers need to accept the fact that this recession is causing a seismic shift in the way they will have to act, the way they will have to interact with agents of the future and the way they will have to interact with the Internet-savvy consumer of today. 

-Online strategy. Brokers need to move toward a comprehensive strategy that includes upgrading their websites, adopting a social media strategy and moving toward an Internet marketing strategy that includes listing syndication, search engine optimization and Internet lead management. 

-Recruiting the agent of the future. Brokerages are realizing they have no choice but to reinvent themselves in order to attract these new types of agents.

We need to start making structural changes to the way we operate as an industry in these and several other areas. Step back and ask yourself, are you committed to changing for the future? 

Jose Perez is the president of PCMS Consulting. 

For more information, visit www.pcmsconsulting.com or e-mail jperez@pcmsconsulting.com. 

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com. 

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RISMEDIA, September 30, 2009—Onboard Informatics, one of the premier data service providers to top-tier real estate, media, and technology companies, has announced a new platform, MLS OneSource, which is comprised of a suite of innovative products and services designed to meet the growing needs of today’s MLSs and Realtors®. 

According to the company, Onboard’s MLS OneSource platform is designed to give MLSs and Realtors full access to real estate’s most trusted localized content for both agent portals as well as consumer-facing websites. Content categories include key information such as home sales, trends, school profiles with GreatSchools.net ratings, demographics, local amenities, and neighborhood boundaries. 

“Creating the MLS OneSource platform was a natural progression for us. With an influx of calls and interest stemming from the increase in pressure on agents to enhance their value proposition to consumers, it just made sense to formalize a platform” said Marc Siden, CEO, Onboard Informatics. Siden continues, “MLS OneSource is specifically designed to help MLSs and Realtors engage their consumers by providing relevant and insightful local content and easily integrated solutions that fit their individual business models.” 

The suite of products and solutions offered in the platform range from customizable reports and presentations, easily integrated plug and play neighborhood search tools, standardized Web services, to fully tailored delivery of all Onboard’s data, providing complete control over design, development and integration. These tools play a major role in adding value to real estate websites through increasing search engine placement and customer engagement all while building credibility and quality lead generation. 

For more information, visit www.onboardinformatics.com. 

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

RISMEDIA, September 30, 2009—Daniel Gale Sotheby’s International Realty (DGSIR), a leading real estate company, was again honored at the annual Who’s Who in Luxury Real Estate (LuxuryRealEstate.com) Conference held recently in Vail, Colorado. 

According to the company, James P. Retz, senior vice president of Marketing and Technology accepted the award this year for Daniel Gale Sotheby’s. Retz also participated in the exclusive Board of Regents meeting preceding the Conference, and was a featured speaker at the opening session of the conference, speaking on “Media Fragmentation in the Internet Age.” According to Retz, “this was a terrific opportunity to share some of the exciting elements of our 2010 Marketing & Technology Plan with key players from many parts of the USA, Canada, Europe, and the Pacific Rim.” 

Daniel Gale Sotheby’s was awarded “Best Website 2009” at the black-tie Award’s Ceremony. The prior two years Daniel Gale Sotheby’s International Realty has received “Best Overall Marketing – Package” at the same Conference. “This year I felt the recognition we received for our website

(danielgale.com) was timely since it’s the second site we’ve launched in the last four years,” adds Retz. We do our absolute best to stay on the cutting edge of technology- our clients expect that of a company that’s always been at the forefront of our industry. Our entire marketing and technology group worked closely to launch the new site just two months ago.” 

For more information, visit www.danielgale.com. 

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

RISMEDIA, September 30, 2009—Realty Executives International, Inc. announced the office conversion of real estate brokerage, RE/MAX Select, to form the franchise Realty Executives Select. This newest Realty Executives franchise brings 60 experienced sales associates, including a real estate professional recognized as the state of California’s number one agent by the former association, with residential listings throughout the Greater Los Angeles area. 

“We have fared well since the height of the housing boom because our agents are business savvy and stay educated on today’s emerging real estate market,” says Gary Howard, founder and president of newly formed Realty Executives Select. “We moved to a strong and reputable brand which offers our agents the tools and professionalism required to further leverage opportunities in this dynamic environment.” 

Richard Lopez, vice president of Realty Executive Select, adds that today’s real estate market has become very competitive with a myriad of opportunities from short sales to first-time homebuyers entering the market. “We are consistently seeing multiple offers and an increase in transactions. To best position our team now and for the future, we have an aggressive growth plan which includes our partnership with Realty Executives to increase our value proposition to our current and prospective agents.” 

For more information, visit www.RealtyExecutives-Select.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.