How to attract higher-quality buyer, seller clients

The SLAM model for real estate success

BY BERNICE ROSS, MONDAY, OCTOBER 15, 2012 Inman News®

Contemplation image via Shutterstock.

Editor's note: This is Part 4 in a five-part series. See Part 1, Part 2 and Part 3.

Would you like to double your income without doubling your work? Once you have mastered systems and leverage in the SLAM (systems, leverage, attraction, mindset) model, increasing your income shifts to being more heavily influenced by factors outside real estate.

Have you ever noticed that when you plan an extended vacation your business suddenly picks up? The principles of attraction explain why this is the case. Rather than allowing this system to work haphazardly in your business, being intentional about its use can produce amazing results. The six steps described below are the foundation for attracting the real estate business that you have always dreamed of having.

MRIS going it alone in NeighborCity copyright suit

MLS won't take money it requested from NAR to help pay for legal battle

BY ANDREA V. BRAMBILA, FRIDAY, OCTOBER 5, 2012 Inman News®

Lone rider image via Shutterstock.

Mid-Atlantic multiple listing service Metropolitan Regional Information Systems Inc. (MRIS) has decided not to accept financial support it requested from the National Association of Realtors for its copyright infringement suit against the operator of real estate search portal and referral site NeighborCity.com.

In a complaint filed March 28, MRIS alleged NeighborCity's owner and operator, American Home Realty Network Inc., reproduced, displayed and distributed copyrighted listing content, including photographs, without authorization and violated copyright laws through "the creation of unauthorized derivative works incorporating the MRIS database."

St. Paul, Minn.-based Regional Multiple Listing Service of Minnesota Inc. (NorthstarMLS) made similar allegations against San Francisco-based American Home Realty Network in a complaint filed April 18.

The lawsuits were filed not long after American Home Realty Network, which is licensed as a brokerage in California, updated profile pages for 850,000 agents on NeighborCity.com that feature agent scores and performance metrics based on their transaction history.

Rising prices will drive housing sales for years to come

Commentary: Forget inflation -- we're still in the global deflation event of all time

BY LOU BARNES, FRIDAY, SEPTEMBER 21, 2012 Inman News®

Housing market trends image via Shutterstock.

The market response to QE3 has been different than to the first and and second rounds of "quantitative easing." It's subdued this time.

The initial upward burst in stocks has fizzled, and the run to commodities by those either fearful of inflation or hoping for it has also stalled. The 10-year Treasury note jumped almost to 1.9 percent from summer in the 1.5s, but has now retreated to 1.75 percent.

Only mortgages have behaved as expected, sitting at or slightly below the 3.5 percent all-time low, depending on the deal.

The usual weekly run of data on the current economy shed no new light, but deeper reports on credit and housing did enlighten, as did -- may the saints preserve us -- news from domestic politics.

Republican columnist David Brooks this week nailed Mitt Romney as behaving like Thurston Howell III, the clueless ascot-throated boob of "Gilligan's Island." Romney had done poorly while cast as a Wall Street sharpie. Boob is fatal.

Homebuyers pay for 'raids' on Fannie and Freddie

Commentary: Mortgage surcharges let lawmakers keep pledges not to raise taxes

BY KEN HARNEY, TUESDAY, SEPTEMBER 11, 2012 Inman News®

Chest of money image via Shutterstock.

There's an ominous trend taking shape below the headlines in Washington this political season that anyone involved in home sales, financing or building should keep an eye on.

It's called raiding the cookie jar of the helpless: squeezing more money for federal purposes out of the home lending process without calling it a "tax" by jacking up fees at Fannie Mae and Freddie Mac.

After a raid, consumers purchasing homes or refinancing end up paying relatively small amounts extra in mortgage fees -- adding anywhere between one-eighth and one-quarter of a percent onto their loan rates. Hardly anyone's the wiser because the surcharges show up nowhere in the process.

But with 60 percent-plus of all new mortgages now being funded by Fannie and Freddie, the extra amounts raised by mortgage fees rapidly can total into the tens of billions of dollars over extended periods.

The danger of new fees tacked onto conventional mortgages stems from two developments: first is the looming "fiscal cliff" facing the federal government by year-end, when Bush-era tax cuts expire and disastrous cuts in spending kick in.

Second, there is a perception on Capitol Hill -- a correct one -- that the two giant companies now under government control have no one left to protect them from financial assaults. That means they are fair game when revenues need to be raised without violating no-new-taxes pledges.

Grow the economy, or else

Commentary: New plan to tackle Europe's debt crisis doesn't address underlying problems

BY LOU BARNES, FRIDAY, SEPTEMBER 7, 2012 Inman News®

Apple pie image via Shutterstock.

First, an expression of gratitude. Reality -- new economic data and active central banks -- has removed any duty to pay attention to the convention of either party.

August job data released today were poor. The meager 96,000-job gain was cut in half by downward revisions to the two prior months, and the apparent decline in unemployment from 8.3 percent to 8.1 percent is a statistical quirk -- the percentage of Americans at work or trying to find it fell to the lowest level since 1981.

California broker fighting for right to advertise out-of-state listings

Young: Nebraska's licensing requirements violate free speech rights

BY ANDREA V. BRAMBILA, FRIDAY, SEPTEMBER 7, 2012 Inman News®

Gavel image via Shutterstock.

A California real estate broker who has advertised for-sale-by-owner properties from other states on Realtor.com by placing them in a multiple listing service in California has amended a lawsuit she filed two years ago against Nebraska regulators, claiming their attempts to put a halt to the practice have violated her civil rights to free speech and to pursue a trade.

The Nebraska Real Estate Commission sent California broker Leslie Rae Young a cease and desist order in July 2010, maintaining that only Nebraska licensees are permitted to negotiate the listing, sale or purchase of property in the state, or assist in procuring prospects.

Young then sued the state of Nebraska and the commission in federal court, claiming changes to Nebraska's licensing laws were unconstitutional, and that the state had no jurisdiction over her.

Realtors seek details of 'secretive' REO bulk sales

Fannie, Freddie regulator says it will release 'pertinent information' when deals close

BY ANDREA V. BRAMBILA, THURSDAY, AUGUST 30, 2012.

Inman News®

Spotlight image via Shutterstock.

California Realtors say Fannie Mae and Freddie Mac's federal regulator is moving forward with bulk sales of real estate owned (REO) homes in "a highly secretive manner," without giving full consideration to the objections of California lawmakers or the program's potential negative economic impact on housing markets and cost to taxpayers.
The Federal Housing Finance Agency is implementing an "ill-conceived" plan while "refusing to disclose any details, such as property locations, final property count, sales price, or names of winning bidders," said LeFrancis Arnold, president of the California Association of Realtors, in a statement
FHFA, the federal regulator that oversees Fannie Mae and Freddie Mac, announced last year that was considering bulk sales of properties to investors, with the goal of converting REO properties into rentals.
After collecting feedback and under pressure from lawmakers to move forward with the program, FHFA in February announced the launch of a pilot initiativetargeting bulk REO sales in metropolitan areas "hardest-hit" by the foreclosure crisis, including Atlanta, Chicago, Las Vegas, Los Angeles, Phoenix and parts of Florida.

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).

Re/Max agents get automated content program EMerge platform generates emails, blog posts, social media pushes

BY INMAN NEWS, FRIDAY, APRIL 13, 2012 Inman News®

People hub image via Shutterstock.

Real estate franchisor Re/Max has partnered with Louisiana-based technology firm eMerge to provide Re/Max brokers and agents with an automated content program that generates two monthly email newsletters, six blog posts per month, and weekly social media pushes to Facebook, Twitter and LinkedIn.

The eMerge program also allows real estate professionals to supplement automated content with their own, personalized messaging and gain valuable feedback on what engages their users.

"We need to embrace online technology and not be intimidated by it," Re/Max CEO Margaret Kelly said in a statement. "With the proven success the eMerge program demonstrated with our franchise sales division in 2011, the natural next step is to introduce this powerful marketing tool to our brokers and agents."

"Our mission is to provide one program that consolidates and automates email, social media and blogging for Re/Max agents and brokers," said Bondilyn Jolly, founder and CEO of eMerge.

"The eMerge program saves valuable time by providing all of the tools and content needed to create and maintain a successful online presence."

Other eMerge offerings include professional campaign services, enterprise level platforms and support, education and training programs.

Sales of second homes soar to highest level since 2005

Investment-home sales, nearly half in cash, jump 64.5%

BY INMAN NEWS, FRIDAY, MARCH 30, 2012.

Inman News®

Sales of second homes, which include vacation and investment homes, soared in 2011 to their highest market share since the height of the housing boom, according to an annual report from the National Association of Realtors.

NAR’s 2012 Investment and Vacation Home Buyers Survey includes 2,241 responses from U.S. households who bought either new or existing homes in 2011. The association conducted the survey in March 2012 and controlled for age and income.

Investors lead the surge in second-home sales. Sales of investment homes climbed 64.5 percent in 2011, to 1.23 million, from 749,000 the year before, the report said. At the same time, sales of vacation homes increased 7 percent to 502,000, compared to 469,000 in 2010.

Combined, second-home sales accounted for 38 percent of all home sales last year (27 percent investment homes, 11 percent vacation homes), up from 27 percent in 2010 (17 percent investment homes, 10 percent vacation homes). That's the highest share since 2005, when second-home sales made up 40 percent of sales overall.

Meanwhile, owner-occupied home sales fell 15.5 percent year over year in 2011, to 2.78 million, the report said.

"During the past year investors have been swooping into the market to take advantage of bargain home prices," said Lawrence Yun, NAR's chief economist, in a statement.

"Rising rental income easily beat cash sitting in banks as an added inducement. In addition, 41 percent of investment buyers purchased more than one property."

Second-home buyers weren't hesitant to use cash, Yun added. About four out of 10 vacation-home buyers paid in cash last year, while roughly half of investment buyers did. Of those who did finance their purchase, the median down payment was 27 percent, the report said.

Investors paid somewhat more for their purchases in 2011 than in 2010, though vacation-home buyers paid less. The median price for an investment home last year rose 6.4 percent to $100,000 last year, while the median price for a vacation home fell 19.1 percent to $121,300. Distressed properties accounted for half of investment-home sales, 39 percent of vacation-home sales, and 29 percent of primary-home sales.

Primary-home buyers paid a median $167,700 for their purchase in 2011, down 5.1 percent from the year before.

Investors and vacation-home buyers tended to be older and more affluent than primary-home buyers. While the latter had a median age of 39 and earned a median household income of $72,400, the typical investment-home buyer was 50 years old and earned a median household income of $86,100 and the typical vacation-home buyer was also 50 years old with a median income of $88,600.

Investors planned to hold the property for a median five years and generally bought a home that was a median 25 miles from their primary residence. In an indication of flipping activity, 5 percent of homes purchased by investment buyers in 2011 have been resold, up from 2 percent in 2010, the report said. Investors typically bought in suburban areas.

Vacation-home buyers planned to hold the property for a median 10 years and purchased a property that was a median 305 miles away. Vacation-home buyers typically bought in rural or suburban areas.

As in the 2010 survey, the South accounted for the biggest share of second home purchases in 2011, followed by the West.

Region of Home Purchase	Primary Residences	Vacation Properties	Investment Properties
Northeast	20%	15%	15%
Midwest	23%	12%	17%
South	35%	42%	44%
West	22%	30%	23%
Outside the U.S.	0%	1%	0%

Source: NAR

Also as in the 2010 survey, second-home buyers, especially investors, were slightly more ethnically diverse than primary-home buyers. Among primary-home buyers, 82 percent were white, 8 percent were Asian, 7 percent were black, 5 percent were Hispanic, and 1 percent were "other."

Among buyers of investment properties, 76 percent were white, 13 percent were Asian, 8 percent were black, 6 percent were Hispanic, and 1 percent were "other."

Roughly half of second-home buyers purchased through a real estate agent or broker. Second-home buyers were somewhat more likely than primary-home buyers to buy through a foreclosure or trustee sale or directly from an owner the buyer knew.

Purchase Method	Primary Residences	Vacation Properties	Investment Properties
Through a real estate agent or broker	69%	55%	48%
Foreclosure or trustee sale	5%	14%	17%
Directly from owner whom the buyer knew	9%	16%	17%
Directly from owner whom the buyer didn’t know	5%	8%	7%
Directly from builder or builder’s agent	9%	3%	5%
Other	3%	5%	6%

Source: NAR

Although the report released today is based on responses from U.S. addresses, according to a separate, monthly survey (the Realtors Confidence Index), international purchases accounted for about 3 percent of transactions in 2011, "which would be in addition to today’s findings," NAR spokesman Walter Molony told Inman News.

New Real Estate Poll: Americans Increasingly Optimistic about Homeownership

Americans are significantly more optimistic about homeownership than they were a year ago. That’s according to a new national survey released this week from Prudential Real Estate, a Brookfield Residential Property Services company. According to the second-annual Prudential Real Estate Outlook Survey, a full 60 percent of Americans have favorable views toward the real estate market. That’s up 8 points since last year.

The survey shows that signs of increasing optimism are widespread:

• With interest rates at historically low levels, 96 percent agree or somewhat agree that now is a good time to buy.

• A full 70 percent of respondents have some degree of confidence that property values will improve over the next two years; with an 8 point increase in those very confident or confident compared to last year.

• 63 percent believe that real estate is a good investment despite the recent market volatility; that’s up 11 points from last year.

The survey confirms that despite the recession, homeownership remains a central part of the American Dream. Eight in 10 respondents said homeownership is very important to them; only 15 percent said the economic downturn made homeownership less important.

“Respondents told us what our sales professionals see every day that, despite recent market volatility, homeownership remains integral to the dreams of most Americans and that consumers’ confidence in the housing market is returning,” said Earl Lee, president, Prudential Real Estate. “This is good news for home buyers and sellers, communities and our economy as a whole. As more people look to take advantage of historic interest rates and prices, we believe the foundation for a sustainable recovery is in sight.”

The survey also highlighted strong ties between homeownership and the community: 77 percent agree that homeownership strengthens a sense of community with 87 percent agreeing or somewhat agreeing that neighborhood comprised of homeowners have a stronger sense of community than neighborhoods made up mainly of renters. This is critical in an environment where two in three respondents believe community feelings in America are declining.

Among the generations, 94 percent of respondents believe that finding the right home and community are crucial to helping their family be happy. Only a small minority of older Americans said the recent housing crisis made homeownership less important to them. Nearly half of Gen Y respondents said it made homeownership more important. Gen Y’ers are particularly optimistic about the road ahead with 72% expressing favorable views about the residential real estate market.

“Characteristically, many of these consumers, particularly Gen Y, share a firm sense of family and community,” Lee said. “It’s not surprising now that they’re embracing homeownership to build on that sense.”

The survey also highlighted consumer caution in a recovering real estate market: 93 percent of respondents said that the housing crisis reminds them that they must be more careful about buying and selling property. More than 90 percent of respondents said a good real estate sales professional can help them make the right choices about homes and communities; and 71 percent believe good agent representation is more important than ever, up 4% from last year’s survey.

Methodology: Interviews with 1,251 Americans who are “in the market” to buy or sell a home were conducted online by Palisades Media Ventures and Penn Schoen Berland, between Feb. 10 and 20, 2012. Respondents are aged 25-64 with a household income of at least $50,000, and either recently bought/sold a home or are considering buying/selling a home. The margin of error is +/- 2.8% for all respondents and higher for subgroups.

Consumer Complaints: Loan Modification Scams Highlighted

Recently, the Lawyers’ Committee for Civil Rights Under Law and NeighborWorks® America highlighted the ongoing foreclosure rescue scam crisis during a press conference to identify top consumer complaints in New York.

During this National Consumer Protection Week event, representatives offered guidance on avoiding financial scams, including loan modification scams.

The Federal Trade Commission’s Northeast Regional Office organized the press event, which highlighted the most egregious frauds plaguing New York residents and featured scam avoidance tips from the Better Business Bureau Serving Metropolitan New York, United States Postal Inspection Service, New York Attorney General’s Office, New York State Department of Financial Services, New York City Department of Consumer Affairs and AARP.

The Loan Modification Scam Alert Campaign educates homeowners about the warning signs that indicate that the person or company offering assistance may be a scam. The top three warning signs of a scam are any person or company that:

• Asks for fees in advance of fully providing services

• Guarantees that they’ll stop a foreclosure or get your loan modified.

• Tells you to stop paying your mortgage company and to pay them instead

“Scams present a real threat to homeowners who are afraid of losing their homes, especially now that new bank settlements and government programs are in the headlines. At times like this, we often see a spike in activity among companies who pretend to be authorized by the government, but are, in fact, scams,” says Deborah Boatright, northeast regional director, NeighborWorks America. “Homeowners are advised to seek help from HUD-approved housing counseling agencies, which offer professional assistance free of charge, and to report scam to the authorities. You can do both from www.loanscamalert.org.”

“Homeowners are looking around desperately for solutions and are vulnerable right now. The foreclosure crisis is ongoing, and foreclosure rescue scammers are taking advantage, often pretending to be affiliated with the government or another trusted resource in order to trick distressed homeowners into paying them money for nothing,” said Yolanda McGill, senior counsel for the Lawyers’ Committee’s Loan Modification Scam Prevention Network (LMSPN). “The best way to avoid losing money to a scam is to never pay for foreclosure help. The best help out there is free from HUD-approved housing counseling agencies.”

Since the launch of the Loan Modification Scam Prevention Network complaint database in February 2010, more than 21,000 consumers have reported foreclosure rescue scams totaling over $60 million in lost money, more than doubling last year’s figures of 10,000 complaint reports and $27 million in lost money. Of this year’s total figures, over 1,100 complaints came from New York State consumers, with reported losses of over $4 million, also more than doubling last year’s total figures of 500 complaint reports totaling $2 million in lost money.

The Loan Modification Scam Prevention Network is comprised of the Federal Trade Commission, the Lawyers’ Committee, NeighborWorks America and dozens of national and local agencies and organizations from around the country, including Fannie Mae, Freddie Mac, the Homeownership Preservation Foundation, the U.S. Treasury Department and the U.S. Department of Housing and Urban Development.

KEY REALTY, INC., Serving your Real Estate Needs, Sell Houses or Buy a Home in Rockford,IL and in the surrounding suburbs.  

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What You Need to Know about Cancellation of Mortgage Debt

A lender will, on occasion, forgive some portion of a borrower’s debt. The general tax rule that applies to any debt forgiveness is that the amount forgiven is treated as taxable income to the borrower. Some exceptions to this rule are available, but, until recently, the borrower was required to pay tax on the debt forgiven. A new law enacted in December 2007 provides relief to troubled borrowers when some portion of mortgage debt is forgiven. However, this relief expires on December 31, 2012 and NAR will be working to obtain an extension throughout the year.

Below is some general information you need to know about this law and cancellation of mortgage debt.

General Rule for Debt Forgiveness

If a lender forgives some or all of an individual’s debts, the general rule is that the forgiven amount is treated as ordinary income and the borrower must pay tax on the forgiven amount. Exceptions apply for bankruptcy, insolvency and certain other situations, including mortgage debt.

Current Law for Mortgage Debt

(Jan. 1, 2007 through Dec. 31, 2012): A borrower can be excused from paying tax on forgiven mortgage debt. The debt must be secured by a principal residence and the total amount of the outstanding obligation may not exceed the original mortgage amount plus the cost of any improvements.

Does the relief apply only to a sale?

No. The provision has broader application. Lenders might forgive some portion of mortgage debt in a short sale (when value at sale is less than the amount owed) or in a foreclosure where the debt is wiped out. In addition, if a borrower still living in the home is able to make an arrangement with a lender that reduces the principal balance of a mortgage, the amount forgiven in that workout will not be taxed.

Can the homeowners in a short sale or foreclosure claim a loss?

No. The loss is considered a personal loss and is, therefore, ineligible for either capital loss or ordinary loss treatment.

What happens to the seller when mortgage debt is forgiven?

Until January 1, 2013, the homeowner will pay no tax on any forgiven amount.

Does this provision apply to a refinanced mortgage?

Only in limited circumstances. The relief provision can apply to either an original or a refinanced mortgage. If the mortgage has been refinanced at any time, the relief is available only up to the amount of the original debt (plus the cost of any improvements). Tax relief is generally not available for second mortgages or home-equity lines of credit where the funds are not used for home improvement. Any amount that is not eligible for the relief provision will be taxed as ordinary income.

How does the homeowner get the correct information to the IRS?

The lender is required to provide the homeowner and the IRS with a Form 1099 reflecting the amount of the forgiven debt. The borrower/homeowner must file a Form 982 to reflect the amount forgiven and to show the reason why the forgiven amount is not taxable. Any taxable portion of forgiven debt will then be reported on the homeowner’s Form 1040 for the tax year in which the debt was forgiven.

What if a property declines in value but the owner stays in the house?

The provision would not apply. The provision applies only at the time of sale or other disposition or when there is a workout (reduction of existing debt) with the lender.

Do all lenders forgive mortgage debt when property values decline or the home is in foreclosure?

No. Some states have laws that allow a lender to require a repayment arrangement, particularly if the borrower has other assets. Forgiveness of debt is always at the lender’s discretion.

KEY REALTY, INC., Serving your Real Estate Needs, Sell Houses or Buy a Home in Rockford,IL and in the surrounding suburbs.  

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Own the Smallest Town in America: Buford, Wyo. for Auction

Williams & Williams, a leading brand in real estate auctions, will auction the entire town of Buford, Wyoming on Thursday, April 5 at noon MST. This unique event will offer potential buyers a rare opportunity to own an entire town. Buford is known as the “The Nation’s Smallest Town” with a population of one. It’s also the town with the highest elevation on Interstate 80 at 8,000 feet above sea level.

Despite its size, this historic town has no shortage of visitors and is a must-see destination for many travelers. Included in this income-producing town are five buildings: the Buford Trading Post which sells fuel, snacks and memorabilia, a three-bedroom modular home, a 1905 school house (used as an office), a garage and a 1900s cabin (used as a tool shed). Nearby attractions include Curt Gowdy State Park, Vedauwoo State Park and rock climbing area, the 140-year-old “Tree in the Rock” and the Ames Monument.

“We are offering a rare opportunity to own a town and piece of American history,” says Pam McKissick, Williams & Williams’ CEO. “Owning your own zip code does come with perks—you can be the mayor, sheriff, town council, sole voter or any other position you’d like to create.”

Located midway between Cheyenne and Laramie, Buford is the second oldest town in Wyoming, dating back to the construction of the Transcontinental Railroad. Named after Major General John Buford, a hero of the battle of Gettysburg, the town has been visited by Presidents Ulysses S. Grant and Franklin D. Roosevelt and outlaw Butch Cassidy. 

KEY REALTY, INC., Serving your Real Estate Needs, Sell Houses or Buy a Home in Rockford,IL and in the surrounding suburbs.  

Follow us at        https://twitter.com/KeyRealtyInc 

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Official Website  http://keyrealtyus.com/