Over my 25 years in the business, I have had the great opportunity to see many new agents develop into great agents. Heading into 2010, I wanted to show you the path most of them took:

1. Get Basic Real Estate Knowledge
They were sponges trying to obtain as much education as they could, as quickly as possible.

2. Know You Can Make Money
Though they never stopped learning, they also realized that they must apply what they learned. You can't learn to swim in a classroom. You need to get in the pool.

3. Develop a Great Attitude
Success is impossible without failure. They were never concerned about lack of success. They had faith that if they continued to do the right things, success was in their future.

4. Advanced Real Estate Knowledge
Once they were comfortable that they could list and sell property, they dove into advanced training to better counsel their clients. They became specialists in certain types of real estate and became the regional expert.

5. Treat Your Profession as a Business
They not only searched out real estate education but also thirsted to learn more about running their own businesses (business planning, team building, etc.).

These are the first 5 steps. If you accomplish them, you will be a very good agent. Steps 6-10 will enable you to jump into the category of 'great' agent. Next month I will give you the final six steps.

The biggest mystery to me over the last eighteen months was why banks weren't more receptive to the 'short sale' process. Studies have shown that it costs the bank more money if a property was foreclosed upon than if they accepted a 'short sale'. For homeowners, a 'short sale' makes much more sense for several reasons:

• There is a much higher chance that the deficiency judgment could be negotiated in a short sale versus a foreclosure.
• A short sale would have less of a negative impact on the homeowner's credit rating.
• The homeowner would have at least some control over the timing of their relocation to new living arrangements.
• A 'short sale' would allow the homeowner to leave with dignity.
  

 

So, if it would be better for both the bank and the homeowner, why were more 'short sales' not completed? A recent research study by The National Consumer Law Center (NCLC) has uncovered the mystery behind this dilemma.

In order to understand it, we must first look at the differences in the banking industry over the last ten years. In the past, the banks used to process the loan (take the application, put together the file, etc.), lend you the money, and also service the loan (send the bills, make collection calls, follow-up, etc.). Over the last eight to ten years, the lending of mortgage money has shifted. First Wall Street and then the federal government became the primary lender in the mortgage sector. But, neither Wall Street nor the government had any interest in processing or servicing the mortgage. Mortgage companies continued to process the loans, but a new industry was created to fill the need for the servicing of these loans.

So now, a separate and independent entity is servicing a tremendous portion of existing mortgages. Just ten years ago, 37.4 percent of all mortgage loans were securitized (thus requiring a servicing company). Today, that number is 79.3 percent.
 
The NCLC study shows that the reason more houses are not available for 'short sales' is because these servicing companies actually collected more fees for a foreclosure than they did for a 'short sale'. Actually, the servicing company would lose money if they did a 'short sale'. Since they were now in charge of making that decision, it was obvious why foreclosure was the alternative of choice.

The federal government realizing that modifications were not the answer and banks realizing that the foreclosure process was too expensive, have agreed to change the fee structure to make it more profitable for the servicing companies to lean toward 'short sales'.

It's always about the money. This situation was no different. Now that the money will flow to the companies that choose the 'short sale' alternative, watch how much easier the 'short sale' process will become.

Keeping Current Matters Members
can Click Here to login and get slides covering the short sales, as well as deliquencies and foreclosures. This will allow you to simply and effectively make
the point to your sellers and buyers.

This month, instead of our normal Success Strategies I have given you a '7 Step Action Plan' for the tax credit extension and expansion. This is a great gift. Let's maximize the opportunity.

Step #1 - Contact anyone who might have given up.

Originally, there was a lot of speculation that there would be no extension granted. That caused some buyers to stop looking (especially in regions where closings take longer). We must immediately reconnect with this group.

Step #2 - Contact anyone in the higher income levels

 

This group has stayed on the sideline. Now, they might have 6,500 reasons to make the move. One of the reasons they were on the sideline was the difficulty selling their home. But, if the $8,000 credit will now be available to buyers with higher income, more of the middle tier priced homes will sell. Many of the sales over the last 6 months were foreclosed properties which did not create move-up buyers. Now, more non-distressed properties will sell.

in history to buy a home.

The affordability of homes has gotten better for three reasons.

A. Interest rates are at historic lows.
However, the Fed has announced it will pull back on the purchase of mortgage-backed-securities in March. Experts believe that will drive interest rates to over 6 percent.

B. Tax Credits if you buy now.
Whether it is $8,000 for new buyers or $6,500 for the move-up buyer, the tax credit will expire in the first half of 2010.
(the house must be in contract by April 30th.)

C. Selection is fabulous.
No matter what type of home you are looking for, your choices are almost unlimited. As more buyers take advantage of this opportunity the less choice there will be.

and let them know - THE TIME HAS COME!

If anyone wants to move (for whatever reason) now is the time. They will never have a better opportunity to move on with their lives and live the life they have always dreamt about.

last 18 months.

Again, if anyone wants to move (for whatever reason) now is the time. They will never have a better opportunity to move on with their lives and live the life they have always dreamt about.

The opportunity to sell their home will dramatically increase from now until the spring. Then, interest rates will rise and the extension of the tax credit will expire. We must insist that they price it properly. If their house doesn't sell now, then when?

The Home Buyer's Tax Credit was not only extended, it was also expanded.

The original $8,000 first time buyer credit's income levels have been raised  from $75,000 to $125,000 for an individual and from $150,000 to $225,000 for married couples.

Also, current homeowners may be eligible for a new $6,500 credit. Now is the perfect time to move-up to the house of your dreams.