|
|
Interest rates on 30 year mortgages are starting to rise. If we
look at recent history, we find that when rates bounce off the
floor, they rise 'quickly' and 'dramatically'. Since
October 2008, rates had fallen a full two points on both
conventional and FHA loan products. It is not unreasonable to
suggest, based on the past that rates will return to the October
numbers. But even if they only come back 50%, we are looking at a
full point increase. The government has been artificially keeping
rates down for over a year in hopes of stimulating the U.S. housing
market. Do they have the appetite to continue while being faced
with so many other challenges? If so, do they have the financial
resources? Only time will tell.
|
|
|
Unemployment is the single greatest trigger to foreclosures.
Obviously, the current economy is adversely affecting families at
every income level. The fastest growing segment of mortgages going
to 'short sale' and foreclosure are prime mortgages. These are
mortgages given to people who had a good job, good income, good
FICO score and a good down payment when they purchased their homes.
These foreclosures will affect every community and every price
point. This increase in distressed inventory will further create
downward pressure on values in most marketplaces.
KCM members can Click Here to login to the June edition
and get a series of four slides to help you explain the
ramifications of unemployment in regard to the foreclosure situation.
|
|
|
|
In
the current market, it is sometimes easy to forget to consider the
needs of the other person. We may be so concerned about our own
personal survival that we forget the ramifications of our actions.
It is times like these that we must not fall victim to that
behavior. We need each other more now than ever. Reach out and help
a fellow agent. Step back and allow someone else to shine. When
this time has passed, and it will, we will look back at those who
helped us through this mess. And, like any group that was forced to
fight adversity, the bonds will be deep and lifelong. As history
has shown, when battles are won, the heroes gather together in
cheer while the cowards sling away into the night. Do something
heroic today!!
|
|
|
|
|
Success
Strategies
1. Expireds
The first week of July should be dedicated to prospecting the
'expired listings' in your marketplace. There is no other activity
that will bring a greater return on the investment of your time and
energy. The agents who dominate this category of business in July
will have a great finish to the year and will start 2010 off with a
bang!
2. Work on properly pricing your inventory.
Do whatever research is necessary to have a complete understanding
of both future 'demand for' and future 'supply of' housing
inventory in your market. Those two components of the 'Supply and
Demand Curve' will be the best indicator of future pricing.
3. Understand where interest is going and explain
Help each of your potential buyers make good decisions on the
purchase of a home. Explain that, even though the PRICE
still may be softening, the increase in mortgage rates will
increase the COST of the home. When is the best time to
purchase - NOW!
4. Put together all four presentation
manuals.
There are four appointments we must master to be considered a great
REALTOR. We should have a separate presentation manual for each
one:
1. Listing
2.
Buyer Counseling
3.
Price Reduction
4
.Presentation of 'Offer to Purchase'
5.
Did I mention Expireds?
KCM members can Click Here to login and download 5
podcasts that will cover each aspect of successfully listing and
pricing 'expireds'. |
|
|
|
|
|
Buy NOW!
Last month, we suggested that
when you are purchasing a home, you look past just price and
look instead at cost. Well, your costs are beginning to
rise! Interest rates are already up over 1/2 point and there
is no certainty as to where the increase will end. (see the main
headline story in column one). Now is the time to pick
the home of your dreams and commit to its purchase.
|
|
Sell NOW!
The short term effect of an uptick in interest rates will be an
immediate surge of buyers
who
want to lock-in
financing. The
long term effect will be
that fewer buyers able to qualify for the loan they could have
gotten last month. (a 1/4% hike in interest rates
eliminates approximately 250,000 buyers nationally)
Take advantage of this short-
term opportunity by properly pricing your home to sell in the next
90 days.
|
|
Modifications?
There are many hoping
that government can stem the tide of
foreclosures entering
the market. Here is a quote from CNN Money.com on the modification
challenge.
"The biggest problem so far is the
confusing paperwork...That has
limited the number of distressed
homeowners enrolled in the
program to about 55,000
instead of millions." |
|
A great look at what both buyers
and sellers are being told by a
personal finance web site respected by a very large number of
consumers.
http://www.kiplinger.com
/spending/homeguide/
|
|
"I have missed more than 9,000
shots in my career. I have lost
almost 300 games. On twenty
-six occasions I have been entrusted to take the game winning shot
and I missed. And,
I have failed over and over and over again in my life --and that
is precisely why I succeed."
-Michael Jordan
|
|
"I talked with two of my 25 sellers, using the slides from
Keeping Current Matters over the weekend and got nice price
reductions. I had such good results that, I scheduled a seller
information night. I have had 10 Sellers reduce their price an
average of 10.4% using Steve Harney's method!"
Debbie Smith
Allen Tate Realtors
|
|
KeepingCurrentMatters.com
Do you want to be seen
as the expert in your marketplace?
Click here to
subscribe today
and gain access to
client ready
presentation materials,
current
market insight, expert
audio
commentary and other
special
benefits reserved
exclusively for
Keeping Current Matters™
family
members.
|
|
|
