Realtor dues help protect your business

Associations play active role in local, state and national legislation

BY BERNICE ROSS, MONDAY, DECEMBER 10, 2012.

Inman News®

"Realtor Party" logo from the National Association of Realtors' website, realtoractioncenter.com.

It's almost January and time to pony up and pay your dues to your local, state and national Realtor associations. In case you're not aware of the value the various associations to which you belong provide, keep reading. You may be very surprised.

It seems as if the majority of agents, brokers and associations are struggling with how to demonstrate their value. In the past, Realtors were the gatekeepers of the multiple listing service and created their value by the information they could provide consumers. The associations are also the keeper of the ethics of how the industry conducts itself as well being a primary source for providing education.

One function that very few agents pay attention to is the role that associations play in interacting with the politicians who can make or break our businesses. To illustrate this point, I recently attended a legislative review session sponsored by the Austin Young Professionals Network.

Six more headed to prison for roles in Miami condo mortgage fraud scheme

Father and son real estate brokers among those sentenced after guilty pleas

BY INMAN NEWS, MONDAY, DECEMBER 10, 2012.

Inman News®

The Jade at Brickell Bay. Photo credit: Marc Averette/Wikimedia Commons

A father and son who worked as real estate brokers are among a half-dozen defendants who have been sentenced to prison in recent weeks for their participation in a multi-million dollar mortgage fraud scheme at a luxury apartment complex on Miami's Brickell Bay Drive.

Prosecutors said the defendants used straw buyers to purchase residential properties at The Jade apartment complex, submitting mortgage loan applications and supporting documents containing false information to fraudulently obtain more than $5.6 million in mortgage proceeds from lenders.

The defendants submitted false HUD-1 statements to lenders, and created a second version of the HUD-1 statements listing the actual sales prices that they provided to the seller, prosecutors said. To keep the scheme going, the defendants made some mortgage and condominium association payments and collected rental income for the units. The mortgage fraud proceeds were diverted into shell companies for the defendants' personal use, prosecutors said.

After pleading guilty to conspiracy to commit mail fraud in September, real estate broker Andres Mendez Sr., 47, on Nov. 28 was sentenced to 5 years in prison by U.S. District Judge Donald M. Middlebrooks. Mendez's son, Andy Mendez Jr., entered a similar plea and was sentenced to a year and a day in prison, 18 months of home confinement and five years of supervised release. Both were ordered to pay restitution of $4.23 million.

Real estate attorney Lilia Casal-Diaz, 42, who pled guilty in October to conspiracy to commit tax fraud, was sentenced on Dec. 7 to to a year and day in prison, along with one year of home confinement and three years supervised release, and ordered to pay $509,543 in restitution to the IRS.

Prosecutors said Casal-Diaz, who practiced law in Coral Gables, falsified HUD-1 documents and failed to report on IRS Form 1099-S the sales proceeds from the transactions, or intentionally under-reported proceeds. When approached by IRS investigators, Casal-Diaz provided the agents with a phony Form 1099-S document, claiming proceeds from one of the real estate closings was properly reported to the IRS.

Trulia adds 3-D map view in upgraded Android apps

Crime, school and other information now available

BY INMAN NEWS, FRIDAY, DECEMBER 7, 2012.

Inman News®

Crime heat map view in Trulia's updated Android apps

Real estate marketplace Trulia's free Android phone and tablet apps now offer 3-D Google Maps display and integrate neighborhood information like crime data, school information and nearby amenities in map view.
With the update, Trulia Android app users will be able to see crime data via heat maps, school attendance boundary zones, and other information like nearby restaurants for the first time, said Steven Yarger, director of mobile at Trulia.
The upgrade, which utilizes, and coincides with, a Google Maps software platform update, will allow users to toggle between standard, angled and "satellite" map views in the apps and between 2-D and 3-D.
The 3-D map views, Yarger said, are similar to those seen in Google Earth (a 3-D map system from Google), and can be rotated by users using their fingers. The update also allows users to access indoor maps of locations like shopping malls, where they exist, he said.

Angled map view showing homes for sale in Trulia's updated mobile apps.
Users of Trulia's iPad app, Yarger noted, already had access to some of these features like neighborhood data, but the 3-D feature is new to all Trulia apps and exclusively for Android as of now.

The new Android apps also integrate tools from Trulia's mortgage center, which allow users to see mortgage rates from a variety of lenders via a link directly from a property view in the apps. IPad and iPhone users can access the tools, too, but they're in stand-alone apps, not integrated into the main Trulia app, Yarger said.
In May, Trulia debuted a mobile ads program that allows five agents per ZIP code to advertise on the map views of the company's mobile apps.
Trulia currently has 12 mobile apps that cover general real estate (6), rentals (4), agent needs (2), and consumer mortgage tools (2).

Housing recovery hinges on mortgage supply

Commentary: Outstanding mortgages now below $10 trillion for first time since 2005

BY LOU BARNES, FRIDAY, DECEMBER 7, 2012.

Inman News®

Mortgaged home image via Shutterstock.

Markets are very quiet despite the usual first-week-of-month flood of new data. In the last week the 10-year T-note has not traded above 1.63 percent nor below 1.58 percent, and mortgages are holding just below 3.5 percent depending on borrower and property.

The November payroll survey estimate arrived with a 146,000-job gain. That's better than forecast but garbled by Sandy, and we cannot know whether up or down. The unemployment rate fell to 7.7 percent, but may have been more distorted by Sandy than payrolls: The percent of unemployed fell because the surveyed workforce shrank.

"I'm calling from the Bureau of Labor Statistics. If you are not at work, do you still have a job but just can't get to it? Have you quit looking for work because you're demoralized, or because a tree fell on your car? Hello? Hello? You're too cold to talk? You don't seem to understand how important this call is to the nation. Hello? Is your phone out? Yes, I know that if it were we wouldn't be talking. No need to be insulting."

Don't let expertise cost you listings

Conflict resolution in real estate

BY BERNICE ROSS, THURSDAY, DECEMBER 6, 2012.

Inman News®

Lecturing mom image via Shutterstock.

Editor's note: This is the second of a two-part series. Read Part 1.

Eric Berne's "The Games People Play" has powerful implications for how you conduct your real estate business, especially when it comes to the issue of resolving conflict. The question is, "Which games are you playing?"

Berne identified three different styles in which you can approach a "transaction" (i.e., a communication between two different people.) The three different approaches are "Adult," "Parent" and "Child."

Challenges are most easily resolved when both parties in the communication/negotiation approach it from an "Adult-Adult" approach. Part 1 identified what happens when the seller elects to respond to an "Adult" communication from his agent with a "Child" response. The example below illustrates what happens when the Agent acts as the "Adult" and the client acts as the "Parent."

Sally Agent: "John, properties with amenities similar to yours in this area have closed and qualified for a loan at $124 to $158 per square foot. The properties that have closed for more than $150 per square foot were all built in the last five years. Properties built 15 years ago have been selling for $135 to $145 per square foot."

Americans still dreaming of big, opulent homes

Coldwell Banker Pinterest boards reveal 'Ultimate House'

BY INMAN NEWS, MONDAY, NOVEMBER 19, 2012.

Inman News®

This photo of a 7,500-square-foot mansion near Bellevue, Wash., is one of the most repinned on Coldwell Banker's Pinterest boards.

The housing bubble and recession may have dented even the fattest wallets, but Americans still have a soft spot in their hearts for grandiose, extravagant and ostentatious homes, if the most repinned photos on Coldwell Banker Real Estate's Pinterest boardsare any indication.

Pinterest is "the place to be for dreamers, and dreaming of a perfect home is something that millions do every day regardless of whether they are pinning their dreams on Pinterest or not," writes Lindsay Listanski on the Coldwell Banker "Blue Matter" blog. "So we wondered ... if we took the most repinned photos from our boards what would the ultimate house actually look like?"

What happens to your taxes if we go over the fiscal cliff

Real Estate Tax Talk

BY STEPHEN FISHMAN, FRIDAY, NOVEMBER 16, 2012.

Inman News®

Fiscal cliff image via Shutterstock.

If you've been paying any attention to the news, you doubtless know that the United States is rapidly approaching a "fiscal cliff."
This is the date that various tax cuts and benefits enacted over the past 11 years are set to expire. That date is Jan.1, 2013.
It's quite possible that President Obama and Congress will come to some agreement before Jan. 1 and extend at least some of these tax cuts.
However, it seems equally possible that they won't.

What happens as of Jan. 1 if no deal is reached and we plunge off the cliff? Your taxes are going to go up.

The following handy chart shows what will happen if the most important of these tax provisions expire.

3 things you should know about mortgage insurance

REThink Real Estate

BY TARA-NICHOLLE NELSON, THURSDAY, OCTOBER 25, 2012 Inman News®

Calculator image via Shutterstock.

Q: I'm trying to get a better understanding of private mortgage insurance (PMI). I understand the fundamentals and that it usually equals 1/2 percent-1 percent of the mortgage, but what I'm not sure about is how it is paid.
Is the PMI paid each year until you reach the 20 percent mortgage-to-value ratio? Can you elect to pay the PMI upfront if you do not want the cost of the policy to be included in your monthly mortgage payments?
If you are allowed to pay PMI upfront, instead of monthly, do you have to pay the full premium at the beginning of each year?
A: When you put less than 20 percent of the purchase price down on a home, your lender will charge you for the costs of placing a private mortgage insurance, or PMI, policy on your home loan. Though the borrower pays for it, the policy actually protects the lender in the event that the borrower defaults on the loan -- a risk that is statistically more likely to damage the lender's interests when there is little equity in the property.

Why is nobody making my dream real estate app?

Realtor Notebook

BY TERESA BOARDMAN, THURSDAY, AUGUST 30, 2012.

Inman News®

Dreaming image via Shutterstock.

I was recently asked by a company that builds iPad apps what kind of app I would like to see.

I did not hesitate to suggest an app that I could use to write real estate contracts. No one but agents who use iPads in the field fully understands what I am looking for, and I don't think the app is being built.

Pen and paper are easier than some of the clunky apps and mobile sites I have used to fill out forms and make offers, and that is just wrong. Some of them can reduce an agent to tears when they crash and the offer vanishes.

I want a single, easy to use app that works on my iPad where I can load or access the entire library of real estate forms, add forms of my own, and write offers for my clients, have them signed on the screen or electronically and manage them from cradle to grave and access them from any device.

Little apps can simplify your life Dropbox, Sparrow, CoBook, and Fantastical are simplified interfaces for everyday tasks

BY GAHLORD DEWALD, FRIDAY, JULY 20, 2012 Inman News®

Sparrow image via Shutterstock.

For the past year or so I've noticed something about my computer use: I'm slowly replacing the core software and features that get used day in, day out.

It all started with Dropbox.

One of the core features of a computer is that it stores stuff. Spreadsheets, word processing documents, code and so on are all kept somewhere on the computer. On the hard drive.

It's such a core feature of a computer that the size of the hard drive is one of those things that gets promoted. One of those "size matters" situations.

One of the hassles, though, is that the bigger the hard drive, the more I seem to scatter stuff all over. Sure, it's mostly in a folder labeled, "Documents." And yes, it's all backed up about six ways from Sunday.

But there's that pile of random stuff on the desktop -- what I like to think of as the remains of frenzied creative activity. And there's the pile of items on my RAID array. It isn't in one place.

Real estate odds and ends: Look for more Realtors, smaller apartments, and Bruce Wayne in Chicago A global roundup of real estate industry items of interest

BY MARY UMBERGER, WEDNESDAY, JULY 18, 2012 Inman News®

Bikeworldtravel / Shutterstock.com

Glimpses (and confirmed sightings) across a very broadly defined real estate landscape:

He's a 1 percenter

That's one interesting way to get a tax deduction: Facebook.com founder Mark Zuckerberg refinanced the mortgage on his Palo Alto, Calif., home in April with a 1.05 percent adjustable-rate mortgage on a loan of $5.95 million,according to the San Jose Mercury News.

6 paths to success for buyers in tight markets Dated décor, canceled listings can work in your favor

BY DIAN HYMER, MONDAY, JULY 9, 2012 Inman News®

Finish line image via Shutterstock.

In low-inventory markets, some buyers are having a hard time finding a home to buy. There are steps you can take to improve your odds of finding a home at a time when interest rates are at record lows and affordability is high.

One approach is to broaden your search. You should be clear about what it is you want to buy. But, homebuying involves making compromises. Just make sure you don't give in on the essentials. You need a home that will last you for the long term. Avoid listings with major defects that will be expensive or impossible to fix.

Libor scandal is whitecaps in a thimble | Commentary: Rigging workhorse rate was stupid, and the stupid should resign

BY LOU BARNES, FRIDAY, JULY 6, 2012 Inman News®

Bored partygoers image via Shutterstock.

First some data, then Libor. Tempest or titillation? The effects from global markets to your adjustable-rate mortgage -- earth-shaking? Or teapot-tilting?

June jobs data are as-was in May and April: 75,000 new jobs, poor, but afloat!

The June data from the Institute for Supply Management (ISM) is more concerning, the overall manufacturing index (PMI) falling to 49.7 percent from 53.5 (a reading below 50 percent indicates the manufacturing economy is generally contracting). "Internals" also crashing: new orders down 12.3 to 47.8, and prices of raw materials collapsed another 10.5 to 37 (inflation risk is zero).

What the Obamacare decision means for you | Real Estate Tax Talk

BY STEPHEN FISHMAN, FRIDAY, JUNE 29, 2012 Inman News®

Nurse, patient and doctor image via Shutterstock.

As you've doubtless heard, on Thursday the U.S. Supreme Court upheld the constitutionality of the Patient Protection and Affordable Care Act, also known as Obamacare. This means that unless Congress overturns the law, it will take full effect over the next several years.

What does this mean to you? The most significant change created by the new law is the requirement that all Americans have health insurance coverage by 2014. Currently, there is no federal law requiring individuals to have health coverage; nor are employers required to provide it for their employees.

Global homebuyer hot spot: New York County, N.Y. (Manhattan) | Inman News special report excerpt

BY INMAN NEWS, MONDAY, JUNE 25, 2012 Inman News®

Sunset in Manhattan image via Shutterstock.

Editor's note: This report on the New York County, N.Y. (Manhattan) market is an excerpt from a special report by Inman News reporter Andrea V. Brambila, "10 Hot Spots for Global Homebuyers" identifying the 10 markets with the greatest share of buyers with a foreign mailing address in the public record between May 2011 and January 2012. Arecently released report from the National Association of Realtors found New York was the sixth most popular state in the U.S. for international sales in the 12 months through March 2012.
Nearly 4 percent of homes purchased in New York County, N.Y., between May 2011 and January 2012 listed a foreign mailing address on the property deed, according DataQuick. New York County's borders are identical to those of Manhattan, one of the five boroughs of New York City, including Manhattan Island and several small adjacent islands.

Leading Houston brokerage signs with Better Homes and Gardens Real Estate | Gary Greene Realtors is brand's fifth Texas affiliate

BY INMAN NEWS, TUESDAY, JUNE 26, 2012 Inman News®

Houston skyline image via Shutterstock.

Editor's note: A previous version of this story contained erroneous information about the number of brokerages that affiliated with Better Homes and Gardens Real Estate in 2009, 2010, and 2011. The story has also been updated to correct that Sherry Chris joined Realogy Corp. in 2006 as COO of Coldwell Banker Real Estate LLC, not CEO.

A leading Houston brokerage is dropping its affiliation with Prudential Real Estate Services and will operate as a Better Homes and Gardens Real Estate franchisee.

With more than 850 agents operating out of 20 offices, Gary Greene Realtors was among the top 60 U.S. brokerages last year, racking up $1.58 billion in sales volume and 6,509 transaction sides, according to data compiled by Real Trends. Since 2007, the company claims to have closed more transactions than any other brokerage in the Houston market.

Top real estate agents, teams make 'The Thousand' list | Realogy-affiliated brokerages up their share of spots to 40%

BY INMAN NEWS, MONDAY, JUNE 25, 2012 Inman News®

High five image via Shutterstock.

Brands affiliated with real estate brokerage giant Realogy Corp. dominate the latest annual list of the top 1,000 real estate sales professionals in the country released by real estate consulting and communications company Real Trends Inc., in collaboration with The Wall Street Journal.

"The Thousand" is based on 2011 data and divided into four separate lists of 250: sales professionals by transactions sides; sales professionals by sales volume; real estate teams by transaction sides; and real estate teams by sales volume.

FHA rehab loans ideal for distressed homes | Rolling purchase price, fix-up costs into 1 loan is next best thing to new construction

BY STEVE BERGSMAN, FRIDAY, JUNE 22, 2012 Inman News®

Handyman special image via Shutterstock.

Foreclosures and short sales always look so enticing, but these kinds of deals are not for the faint-hearted or those on slim resources.

Buying a residence that is not newly built usually requires immediate rehabilitation and remodeling to be followed by regular maintenance. Taking on a foreclosure or short-sale property only ratchets up the process with more intensive rehabbing and certainly a lot more maintenance.

How to solve the stimulus-austerity gridlock | Commentary: Reining in health care costs would boost economy

BY LOU BARNES, FRIDAY, JUNE 22, 2012 Inman News®

Health care image via Shutterstock.

Markets show justifiable concern at a steady flow of soft data all over the world, but it's hard to figure disappointment that the Federal Reserve did nothing dramatic this week.

The Fed's QE (quantitative easing) operations have been designed to pull down long-term interest rates, to prevent runs on banks, and to ease credit. In the last 80 days the run from Europe has accomplished Jobs One and Two, cutting 10-year T-note yields by one-third, and all but drowned the U.S. system in cash.

Economists: 2012 marks the end of a long bottom | Real estate industry experts offer midyear forecasts

BY PAUL HAGEY, FRIDAY, JUNE 22, 2012 Inman News®

Swooping arrows image via Shutterstock.

DENVER -- U.S. housing markets are likely to continue on a path of slow recovery after seeing a multiyear bottom, according to three real estate industry economists participating in a forum hosted by the National Association of Real Estate Editors said today.

Continuing uncertainties over negative equity (about a third of homeowners with mortgages owe more than their homes are worth, according to Zillow), fuzzy housing finance reform possibilities, lagging foreclosure processing and tight lending standards are potential obstacles to the slow-rising tide of the U.S. housing market, they said.