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21October

Good News and “Happy Talk” – From an Economist!

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You probably have noticed that the media provides a steady stream of sobering reports on everything from foreclosures, to the housing market and the economy in general. You may be wondering whatever happened to the elusive “silver lining.” We’d like to share a rare resource—good news from an economist!

Economist Jeff Thredgold, CSP publishes a semiannual update called,  “Happy Talk” via his weekly online guide called “Tea Leaf by Jeff Thredgold.”  This self-proclaimed “economic futurist” takes a broad look at how our country is doing compared to historic and international benchmarks.

It’s good to remind ourselves that despite our challenges, we are still a nation of extraordinary accomplishments—well worthy of reflection.  Think of it as a 2- minute encouragement break, and feel free to share!

This edition of “Happy Talk” was originally published October 4, 2011.

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20October

HUD Announces Great $100 Down Payment Program for FHA Financing in Multiple States!

Large down payment requirements have made homeownership a challenge for many otherwise qualified home buyers. HUD’s latest announcement includes a $100 down payment on HUD homes with FHA financing where offers are at or above current list price.  Note that any offers exceeding appraised value require the buyer to provide the additional funds at closing.

Applicable States Include:  Arkansas, Colorado, Iowa, Kansas, Louisiana, Missouri, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas, Wisconsin, Wyoming and Utah.

Incentives apply to eligible homes located within HUD’s Denver Home Ownership Center. The program is effective immediately for all offers provisionally accepted starting October 20, 2011 and extends through October of 2012.

Agents please refer to Mortgagee Letter 2011-19 for additional lender requirements. Contact your HomeTelos Regional Office for any other questions.

For more information, please join us at FirstPrestonHT.com or on our Facebook and Twitter pages.

19October

DSNews Posts ‘Top 3’ Web Sites for Real Estate Pros

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The default servicing industry magazine –DSNews has posted its “Top 3 Web Sites” for September.  The “On the Web” section of the magazine spotlights these innovative web resources.

  1.  NeighborhoodProfessional.com – As the name suggests, this site helps to maximize an agent’s online visibility in specific local neighborhoods—‘your farm areas.’  The site pushes your online presence to homeowner and neighborhood association web sites.  It also pumps up your search engine optimization in top search engines, making you easier to find online.
  2. Batchbook—This allows you to integrate your entire social circle of contacts into one space, yet keep them tagged separately and use them to create custom reports and lists.  It even allows you to capture special information about contacts and schedule reminders for special events in your personal, business and social networking circles.
  3.  Animoto—Upload your video footage and/or still images, select a style, upload your property description and allow Animoto to weave it into an impressive video presentation showcasing your listing or any special event.  What’s new is that you can add your own video footage or mp3 sounds. Animoto has the licensing rights to more than one thousand songs.  It’s not just for real estate.  Check out the wedding video, summer vacation videos and self-promotion presentations. The service makes it easy to share a finished product on Facebook, YouTube, a blog or a DVD. Check out the range of uses for this product.

For more information, please join us on FirstPrestonHT.com or on our Facebook and Twitter pages.

13October

Website Posts Realtor® Performance Data

Seattle brokerage firm Redfin has launched a web-based tool that provides customers with the performance statistics of agents in marketplaces where Redfin competes. The service is free to consumers.

The tool is called “Scouting Report.” Redfin pays local MLS organizations to allow them to post performance data that traditionally was only available to participating MLS-member real estate professionals. The program allows shoppers to pull up various REALTOR® names and compare performance stats on a ‘one-on-one’ basis. Redfin says they are going a step further (than similar services)… “To help sellers select a professional to market their home.”

Redfin is a brokerage firm that offers customers a 15% percent commission credit, subject to specified terms and conditions. The “commission credit” is usually deducted from what is customarily the buyer-side commission. How can they afford this? Per their website “the investors in Amazon and Facebook back Redfin…” and their agents are employees who are paid “customer satisfaction bonuses rather than a commission.”

The Oct. 3 overview from The New York Times shares insights from Glenn Kelman, Redfin’s chief executive, who asserts “the tool (Scouting Report) provides data on roughly one million agents.” Agent response has ranged from militantly opposed and reviewing legal options to acceptance as the next logical technology tool.

Question: How do you think this type of tool will impact the industry?

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11October

The Next Big Thing in Real Estate-Short Films Starring the House?

It was just a matter of time. With the rapid progression of video technology we should have seen it coming. Now it’s here and it’s hot.

The logical step up from virtual tours of uninhabited homes has arrived. It is the short film with on-camera actors explaining key features while using them as they were meant to be used.  They capture the imagination by demonstrating the lifestyle that may be plausible for the new owner. They highlight neighborhoods and local attractions by weaving them into the story. They partially answer the question, “What would it be like to live here?”

They say that a picture is worth a thousand words. So, is a short film the new storyline for sales success?  Clearly these are most viable for upscale properties, but who knows – someone may come up with a viable version for modestly priced properties as well.

Check out two very well-crafted listing videos. One epitomizes the bachelor lifestyle and the other simulates a day in the life of a family.

Sample Listing Videos:

Source: 6816 Pacific View Drive, Hollywood Hills, Eric Lavey/Vimeo.  Courtesy of Inman News.

Title:  A day in the life of a home. Source: YouTube.

After viewing, drop us a comment. Will this medium thrive or will it flop?  Enjoy.

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4October

What’s in Your House? Free Software Tracks Household & Office Treasures

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Cool app for keeping track.  FREEWARE has devised a software program for the PC that enables anyone to catalogue everything they own. It’s called Household Register 2011. If you have lived in the same location for longer than a couple of years, taking inventory the old fashioned way can be a daunting task.  If you are subject to frequent relocations, this may be the perfect shortcut for organizing your next move. Trying to figure out how much homeowner or renter insurance coverage will cover your contents? This program can end the guesswork. If you need to file an insurance claim, or confirm your latest high-tech purchase is still under warranty, this application can be helpful for that, too.

The tool can provide the same benefits for business office possessions. If you own a business that is subject to commercial business tax assessments based on the contents of your office, you may want to add this to your list of free resources to help save time and money.

For more information, please join us at FirstPrestonHT.com or on our Facebook and Twitter pages.

27September

5 Crucial Tips for First-Time Homebuyers in Today’s Market

These five checkpoints can help first-time buyers to strike the right housing match. Bankrate.com recently published an article that offers first-time homebuyers these insights regarding today’s housing market:

  1. Check out FHA loans, which are still available and feature a minimum down payment of only 3.5 percent of the purchase price. In some areas, watch for the “$100 down” program for an even more economical down payment.  If a substantial down payment is available, review the option of a conventional loan with PMI (private loan insurance).
    1. Qualifying for conventional financing can be tough, including the down payment.  If you are a first-time homebuyer, be sure to do an online search for “first-time homebuyer incentives.” There are numerous programs designed to put home ownership within your reach.  If you have military ties, there are outstanding programs designed especially for the men and women who are serving or have served in the armed forces.
  2. Read the lender’s GFE (Good Faith Estimate) and challenge any questionable fees. Compare the GFE to the HUD1 closing document 24 hours prior to closing to make sure no extra fees have been added.
    1. Mortgage interest rates are the lowest they have been in 60 years.  Shop the market and make sure that you get the terms that are the best fit for your budget and future plans.
  3. Get a professional inspection and heed the report.  Don’t be distracted by clever staging, which can camouflage housing flaws.
  4. Traditional wisdom was that you should buy a “starter home” and wait for the value to appreciate and then upgrade to a larger home.  Current wisdom is that a qualified buyer can often afford a “move up” home on the first outing. Experts now recommend that you plan to stay at your new address for at least five years before selling.  Be sure that your chosen city/region has good prospects for long-term career/business growth and stability.
  5. Do your due diligence if your dream home/condo has a Homeowner’s Association.  Check the financial statements.  If there are significant financial deficiencies, be prepared to ‘keep shopping.’

Homeownership is an exciting opportunity. With the right precautions, today’s market can provide extraordinary “dream home” opportunities for qualified homebuyers.

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22September

Home Sales Jump Nearly 19% – Surprising Analysts

Existing home sales roared back in August– posting a nearly 19% increase over existing home sales of August 2010. The data was released September 21st in a press release from the National Association of Realtors.  This is surprising news in view of numerous analyst forecasts calling for a decline in sales. The results greatly exceeded the expectations of most industry experts.

“All year, the relationship between home prices, mortgage interest rates and family income has been hovering at historic highs, meaning the best housing affordability conditions in a generation,” stated NAR President Ron Phipps.

Key market factors, according to NAR Chief Economist, Lawrence Yun, include ‘carry-over’ due to delays from previous months, affordability, investor activity and rising rents.

It was noted that in August:

  1. First-time buyers dominated the mix purchasing 32% of existing homes, up one point from August of 2010.
  2. REOs and Short Sales combined for 31% of sales.
  3.  Investors accounted for 22% of purchase activity.
  4. The “all cash” transaction category remained flat at 29%.
  5. The Western region saw sales climb 18.3% with a 13% lower average sales price of $189,400.

NAR posted the press release and a spreadsheet showing local market data for 24 major MSAs and the national averages on the Realtor.org website.

20September

Mortgage Rates Hit 60-Year Low

Mortgage guarantor Freddie Mac, reported that “the average rate for a 30-year, fixed rate loan fell to 4.09% this week, its lowest level in 60 years.” That’s down from last week’s low of 4.12%.  “The average rate for a 15-year fixed mortgage dropped from 3.33% last week to 3.30% this week. The record- breaking trend is reported in a September 15, CNNMoney.com article.

The trend sparked an increase of 6.3% in mortgage applications; however 77% of loan applications were for refinancing existing mortgages.  Stats indicate that only 23% of heightened mortgage loan activity involved initial loans for purchasing homes.

According to the Federal Housing Finance Agency, 8 million homeowners with Fannie Mae or Freddie Mac related home loans currently carry interest rates of 6% or higher.  If such homeowners refinanced to today’s “30-year average fixed rate; it is estimated that on a typical $200, 000.00 mortgage, a homeowner could realize a savings of $1,715 per year in interest.”  The 15-year mortgage, a popular choice for existing homeowners, would yield even higher immediate savings.

It is noteworthy that qualification requirements for the lowest interest rates are demanding. Initial purchases often require large down payments and pristine credit.  Refinancing for best rates requires a strong record of on-time payment performance and perceived stability.

In August, the Fed promised to keep interest rates low through at least mid-2013. Are prospective buyers using the “mid-2013 promise” as a reason to wait? Are prospective buyers and existing homeowners in your area aware just how low rates are?  What trends are you seeing among qualified prospective buyers and existing homeowners?

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