The national results of HomeGain’s Fourth Quarter 2010 Home Values Survey (conducted from December 1-7) of more than 1,000 real estate professionals and 2,300 homeowners revealed some significant regional differences.

Below are the regional results of the entire survey, categorized into four regions*, Northeast, Southeast, Mid-West and West.

Questions and Regional Results:

1. Have home prices increased, decreased or stayed the same in the last year?
2. On average, what do homeowners believe that their home is worth?
3. How do buyers feel that homes for sale are priced?
4. What is the average difference in price between what sellers believe their home to be worth and the amount at which the home gets listed?
5. What is the average difference in price between what a home is listed at and what a home sells for?
6. In the next six months, will the values of homes in your market increase, decrease or stay the same?
7. What percentage of homes for sale are foreclosures in your area?
8. What is the average home price in your area?
9. What percentage of your clients are first-time buyers?
10. How do you think Barack Obama is performing in his role as President?

Continue reading this post

First Look Program

Fannie levels the field

New Incentives
Fannie Mae markets its REO through its HomePath.com Properties. Under the new incentive program, owner occupants and public entities that buy a HomePath Property between now and December 31, can receive up to 3.5% of the purchase price in closing cost assistance. The sale must close within 60 days of acceptance of the offer and no later than December 31, 2010.  The incentive must be requested in the initial offer.

What Is It
Individuals and public entities are given a period of time, generally 15 days after a property is listed at HomePath.com (a Fannie Mae site). HomePath.com is the listing site for about 190,000 properties held by the GSEs. Individuals and public entities (read non-profits) have a lead time over investors to inspect  and submit an offer to purchase. After 15 days, the listing is open to all potential buyers.

The idea is to offer first to those who would live in the home and become stakeholders, adding stability to the community and to avoid  too quickly putting property back into a supply laden market. By offering a sneak preview to owners first, Fannie hopes to encourage home ownership without the edge professionals may have and avoid the pressures of bidding against professional investors.

Why Should I Care
Levels the playing field and it’s working.

Fannie has moved more than 29,000 homes out of its owned real estate portfolio of properties acquired by the  through foreclosure to owner occupants. Some 800 non-profits have also bought an additional 5,000 properties through First Look.

If I wasn’t constantly being told be the TV, radio, newspaper, and magazines that we are in a financial downturn, would I know that from my every day life experiences over the last year?

My answer is no.

My life has gone on pretty much unchanged from what it was prior to this “down turn.”  No, that’s not right.  Truthfully, it is much better. My business has remained very good. As a matter of fact, the last couple of years were the best in my career.  There have been a lot of eager buyers — eager to buy a home, and eager to take advantage of the $8000 tax credit.

In some ways, business is much easier now.

Sellers are much more willing to deal and try harder to put a sale together and keep it together.  Also, builders are paying nice bonuses for selling their homes — homes that I probably would have sold anyways to the buyers that I have.  Everyone seems much more appreciative of my efforts — co-op agents, builders, mortgage lenders, title companies, etc.

As far as listings go, sellers have been less likely to try to cut commissions. Continue reading this post

As a consumer, have you ever walked in to a store, let’s say an electronics store, seeking the advice of one of the helpful salespeople and found that their lack of knowledge throttled their confidence level to the point that they were really of no use to you and as they try to muster an answer to a question about which TV to buy, you lose confidence in them?

There are pros and cons for each TV and you as the consumer need answers to make the right choice but you can’t get them because your salesperson does not have any confidence that they know the answer. As a consumer, we unconsciously pick up on subtleties of people like this salesperson and we lose confidence in them very quickly! We naturally gravitate towards those who we automatically recognize as confident about their work.

So it goes with real estate agents working with home buyers or sellers.

I encourage that you spend some time every week working on aspects of your business that can help you increase your confidence. It doesn’t matter if you are new or have been in the business a while. If you know what you are doing it will show through loud and clear to your clients in that ever important first impression. That’s confidence. Continue reading this post

I’ve sold a ton of REOs (Real Estate Owned homes – foreclosures) to first-time homebuyers – many of whom I’ve met through HomeGain.com. Before we start looking at homes, I take time to meet with them and explain the entire process in as much detail as necessary. I hate surprises, and I’ve discovered buyers don’t like them either. I want my clients to fully understand the process so they know what to expect once we hit the streets.

In the process, I’ve discovered a sad truth. No amount of discussion or explanation ahead of time can adequately prepare prospective buyers for the process of trying to buy an REO in the current market.

I recently came across a video that so perfectly sums up the process of buying an REO – I decided I have to share it with you. As I watched it for the first time, I discovered I was unsure how to respond … should I laugh … or cry …

You decide.

For additional musings on REOs, also read:

1. Top 10 Things I HATE About REOs: AND 3 Startling Consequences
2. How To Buy An REO – Top 17 Questions Answered
3. Bank Tactics Causing Repeat Of Crash Conditions in San Francisco Bay Area

Thanks to San Diego Castle Realty and Kris Berg for producing the video!

Watch the video on YouTube

Working with buyers is difficult. It’s no wonder most real estate agents would rather list homes and avoid spending a lot of time dealing with buyers. Home buyers are demanding, fickle, sometimes emotional, sometimes unrealistic, but always there waiting for an agent to help them.

Even though many home buyers think they want to do it alone, I’ve found most eventually ask a Realtor for help. They may not want a contractual relationship with a buyer agent, but they want assistance.

Many have gone from listing agent to listing agent and they are tired of looking for homes that way, so the buyer is in between, they don’t want to sign a buyer agent agreement but they want guidance.

If you decide to work with home buyers you will have to capture them soon and you will have to impress them with service. Most buyers don’t know what they can get from a real estate agent until they get it—then they like it.

Buyers now are going online and making a request to an agent with a website, or going through a company like HomeGain that offers help—they want listings or information about a listing or area—they are sticking their toes in the water, to see what the response will be.

If the response is immediate and it offers help, then the buyer will likely go further.

Upon the first significant contact is the time to impress the buyer with service. Continue reading this post