New Home for Elite Scoop

Coldwell Banker Elite has created a new and improved blog. To get the latest news, updates and information on the Real Estate industry visit EliteScoop.com

Meaningful Client Engagement Online

I know that many maybe tired of hearing about Social Media, and where as it’s not the end-all be-all of Real Estate Marketing, it is a very pervasive opportunity for Realtors.  Many Realtors are finding that their clients are online and unquestionably using Social Media.

Coldwell Banker has released a fantastic new resource for agents who are new or uncomfortable with the online consumer.  It’s a great tool and yes you need to read it.  It’s very important to be as knowledgeable as possible in this industry and taking in as much information as possible is how we become more knowledgeable. 

One of the excerpts form this book says it all:

Why should I care?

Reason #1: Social media will only grow in popularity

But don’t take my word for it. Let the numbers do the talking:

• 83% of active Internet users are watching videos online1
  In the United States, there are 31.9 million bloggers
• 71% of active online users read blogs
  Nearly 66% of active Internet users have joined a social network4
• 71% of active Internet users are visiting their friend’s social network page

In April 2008 an Internet Advertising Bureau report summed it up succinctly: 
If you’re not on a social networking site, you’re not on the Internet6.

Naysayers like to call social media a fad. It’s something for teenagers or “techie” types. They are wrong.
It’s not a fad, but rather a seismic shift in the way people communicate. Remember how just a  few
years ago there was no such thing as email? Can you imagine running your business today without an
email address? 

If you feel email is as important to your business as any other tool, think about this: In 2008, social
media usage surpassed email usage.7 That’s not a fad.

 

So, please take a minute and review this ebook:

Bubble Mapping and Creativity

Jennifer Rathbun sent me a link for a pretty good article from Realtor.com Magazine called “How to Be Instantly Creative for Greater Profits” I found it the foundation for a pretty good set of ideas.  Since it’s almost a new year and I know that ALL of you are diligently writing  out your 2010 business plans, I thought I would share the article:

How to Be Instantly Creative for Greater Profits

Need some inspiration, fast? Try out some of these brainstorming activities and tools, and just watch the ideas roll in.
By Michael Russer | November 2009

Don’t think you’re creative? Well, think again! Most real estate pros have to be somewhat creative to last in this very demanding, ever-changing industry. A lack of creativity is not an issue for most practitioners — it’s the process they use to generate new ideas.

Here’s one of the most powerful methods there is to turn on your inner Thomas Edison and tap into the creative well of others too…

Bubble Charting: Harvesting Great Ideas

The quickest way to turn off your creative flow is to try to make a list of ideas. Why is this so bad? Because by its very structure a list has an enforced priority (i.e., first, second, third, and so on), which causes your mind to evaluate ideas rather than just let them come out. Ideally, you want a way to capture your ideas as quickly as they appear without interruption or judgment getting in the way.

Bubble charting is a very simple mind-mapping method I learned in a writing class 25 years ago that has absolutely transformed how I generate ideas and organize my thinking. It’s so powerful that I use it many times each week to help me run and grow my business. Here’s how it works:

1. Take a blank piece of paper and draw an oval in the center. Then put the name of the topic in this oval for which you want to generate tons of ideas.

2. For each idea you think of (never mind if it’s any good or not—remember, no judgment at this stage of the process) simply put it anywhere on the page. Draw an oval around it and an arrow from it to the central oval.

3. As you have ideas that relate to other ideas, just do the same as in step 2 above, except draw the arrow so it connects the two ideas.

It’s not about creating a nice-looking chart but rather getting as many ideas (good, bad, or otherwise) out as quickly as possible. While a blank sheet of paper or a whiteboard is fine for bubble-charting exercises, these media don’t make it particularly easy to edit, share, or even store your creative work. Thankfully, there are tools available that make this process much simpler.

Bubble-Charting and Mind-Mapping Tools

I never thought a computer-based mind-mapping tool could ever replace the ease and free-flowing nature of paper and pencil. But after using some of the tools available on the Web, I’ve found that my bubble-charting and mind-mapping activities are aided by the additional speed, ease, sharing, and storage for future use afforded by these solutions. Here are a few:

    * MindGenius (www.MindGenius.com): This is PC-based software that you download and install. This is my preferred mind-mapping tool. Unfortunately, at more than $200, it’s also the most expensive. Once you get the hang of it, you will be able to generate bubble charts and mind maps quickly. Also, you can easily share your mind maps with others by exporting them as images or PDFs.
    * MindMeister (www.MindMeister.com): This product is similar to MindGenius, but it’s Web-based and much less expensive. (There’s even a free version.) However, this particular solution can be a bit clunky and slow when generating mind maps—not a good thing when ideas are flowing like the Mississippi.
    * LovelyCharts (www.LovelyCharts.com): This is a very elegant and well-designed Web-based flow-charting and diagramming solution that can easily be adapted for bubble charting. In fact, we use this in my company when bubble-charting ideas for our students. And there is a free version.
    * Virtual-WhiteBoard (www.Virtual-WhiteBoard.com): This is the least elegant of these tools, since you have to draw your bubble charts manually. However, what makes this particular solution unique is the ability to have real-time collaboration among different people, each of whom can add to the bubble chart as everyone sees the results. There’s also a free version of this service to try out.
    * Microsoft Office 2007: Both Word and PowerPoint give you the ability to create "smart charts" that resemble bubble charts.

The above are just a few examples of the many computer-based mind-mapping tools that are available to you. However, the key to using a computer-based tool to help you create bubble charts or mind maps is that you don’t want to think about how to use it during the process.

Throw a Brainstorming Party

Whether you create bubble charts or mind maps with a pencil and paper or use a sophisticated software tool, you can greatly enhance the results by inviting more people to the party.

By adding people to the brainstorming process, you will have access to ideas, solutions, and strategies that you couldn’t even imagine otherwise. Use the following process to get the most from your group brainstorming without it turning into a fat-chewing session:

1. Gather a few friends and associates for a half-hour session. (A group’s creative steam tends to run out if you go any longer than this.)

2. Assign one person as the "recorder"—that is, the person who creates the bubble chart as the ideas are voiced.

3. Provide plenty of beer, wine, and pizza. (Lower inhibition lubricates the creative process—just don’t allow anyone to drive home under the influence!)

4. Give the rest of the "rules" to your group:

    *
          o Keep a rapid-fire pace
          o No editing or criticizing! (Nothing shuts down a brainstorming session faster than this.)
          o The more "out of the box" the ideas are, the better.

The key is to make it fun and fast-paced, like a game. By doing so, you and your group will likely generate more ideas in just a few minutes than you could by yourself over six months.

Remember, not all the ideas will be good. In fact, some will be quite awful. But that’s okay, because you can always edit the ideas and select the best ones after everyone goes home.

Speaking of ideas, here’s a clever social networking suggestion devised by one of our students. He simply went on Facebook and started a "contest" for all his Facebook friends to come up with the best ideas for a particular problem he was working on. In short order, the ideas just came flying in, and he didn’t even have to buy beer or pizza.

Innovative ideas, when properly implemented, are what typically sets one person apart from the rest of the pack. Using the methods described above, you will have an exhaustive supply of great ideas to choose from. And once you have them, the only thing left to do is brainstorm how you plan on putting them into practice.

You can contact the staff of REALTOR® magazine by e-mail at narpubs@realtors.org.

Build Your Own 2010 Education Adventure

Colby and I are working on a plan to help everyone be as prosperous as possible in 2010. We could use your help! Please take just a minute to let us know what you’d like to see for in house training next year! Click here to take survey

Welcome to “RESPA 2010″ – Changes to the HUD Settlement Statement and GFE

HUD Holding Mortgage Lenders Feet To The Fire

I know I’m a bit late on this, but I don’t think everyone has heard the news about the changes to the HUD-1 Settlement Statement and GFE (Good Faith Estimate).  HUD, in an attempt to bring more disclosure to the Consumer and hopefully cut down on predatory lending has adopted new guidelines that take effect on January 1, 2010.  For the consumer it’s great. For the Realtor, it’s one more thing that we’re going to need to keep up to date.  Any changes to the contract will need to get to lender very quickly.

Summary of Changes

There are a number of changes and they can be found on HUD’s very informative website.  They offer this summary:

Fact Sheet on HUD’s final RESPA Rule

* For the first time ever, HUD will require mortgage lenders and brokers to provide borrowers with an easy-to-read standard Good Faith Estimate (GFE) that will clearly answer the key questions they have when applying for a mortgage including:

o What’s the term of the loan?
o Is the interest rate fixed or can it change?
o Is there a pre-payment penalty should the borrower choose to refinance at a later date?
o Is there a balloon payment?
o What are total closing costs?

* HUD estimates that by improving upfront disclosures on the GFE, and limiting the amount estimated charges can change, consumers will save nearly $700 in total closing costs.

* Based on substantial public comment, HUD withdrew a proposed requirement that closing agents read and provide a ‘closing script’ to borrowers in favor of a new page on the HUD-1 Settlement Statement that allows consumers to easily compare their final closing costs and loan terms with those listed on the GFE.

* HUD’s new Good Faith Estimate has been reduced from four to three pages, including an instructional page to help borrowers better understand their loan offer. In addition, the GFE will consolidate closing costs into major categories to prevent junk fees and display total estimated settlement charges prominently on the first page so the consumer can easily compare loan offers. HUD will specify the closing costs that can and cannot change at settlement. If a fee changes, HUD will limit the amount it can change.

* To help borrowers compare their Good Faith Estimate with their HUD-1 Settlement Statement, each designated line on the final HUD-1 will now include a reference to the relevant line from the GFE. Borrowers will now be able to easily compare their estimated and actual costs in the same manner many commenters suggested.

* HUD will require lender payments to mortgage brokers (often called Yield Spread Premiums) to be disclosed in a more meaningful way. These payments are directly dependent on the interest rates that consumers agree to. To ensure that HUD’s new requirement will not create a consumer bias against brokers, the Department did rigorous consumer testing and found the new Good Faith Estimate helped consumers to select the lowest cost loan nine-out-of-10 times, regardless of whether the loan was originated by a lender or a broker.

* Loan originators will be required to provide borrowers their Good Faith Estimate three days after the loan originator’s receipt of all necessary information. To facilitate shopping, loan originators could not require verification of GFE information (tax returns etc.) until after the applicant makes the decision to proceed.

* HUD will allow lenders and settlement service providers to correct potential violations of RESPA’s new disclosure and tolerance requirements. Lenders and settlement service providers will now have 30 days from the date of closing to correct errors or violations and repay consumers any overcharges.

* The new, standardized GFE and revised HUD-1 will not be required until January 1, 2010.

Below you’ll find the new HUD-1 and new GFE:

Federal Foreclosure Alternative Programs

A Solution for Short Sales?

It was a great start to my new home at Coldwell Banker Elite today.  While attending the meeting at the Stafford office I heard a great conversation about short-sales.  I’ve always known that there were a lot of knowledgably agents here and listening to the dialogue was great.  FAAR is working with other area Associations on some of the problems at hand and as a start has created a tool for short sales that can be found at www.EthicsDialogueGroup.com

We’ve all had to suffer through the discouraging process of a Short Sale and I don’t think they are going to go away anytime soon, however there may be a new option compliments of the Federal Government.

Enter:  The Home Affordable Foreclosure Alternatives Program

On November 30th a Supplemental Directive was published by the Treasury Department that created a program incentivizing Lenders (Servicers) and Borrowers.  The Press Release does a good job of giving an overview but the real information is contained in the very lengthy Directive.  This program address’ both short-sales and Deed in Lieu of Foreclosures, but I am only writing about the short-sale part in this post.

The HAMP program offers incentives for the Borrower, Servicer and Investor should the Short Sale (or Deed in Lieu of Foreclosure) be processed in accordance to their guidelines.  The HAMP program is for those programs that are not already Freddie of Fannie Mac backed loans.  Freddie and Fannie already have their own guidelines.  Even though this program does not effect Fannie Mae, they have been selected as the “Financial Agent for the United States” to administer this program.

The program has some fantastic benefits, but (here’s the kicker) the incentive to use this program seems to be nominal.  According to page 12 of the Directive “The servicer will be paid $1,000 to cover administrative and processing costs for the Short Sale….” and the investor will get “…a maximum of $1,000 for allowing a total of up to $3,000 in short-sale proceeds to be distributed to subordinate lien holder, or for allowing payment of up to $3,000 in subordinate lien holders.  This reimbursement will be earned on a one a one-for three- matching basis.  For each three dollars an investor pays to secure release of a subordinate lien, the investor will be entitled to one dollar of reimbursement”.

The real benefit is to the borrow who gets $1,500 if they have vacated the house at the time of closing the short-sale.  This is labled a “relocation assistance payment”.

The program begins April 5, 2010 (but some applications can be processed prior) and sunsets December 15, 2012.

What’s the Dets?

Ok, so lets say that the Servicer and the Investor decide that the reimbursement above IS enough money to justify the program requirements, here are some highlights of the requirements:

Benefits for the Realtor and Buyer

• Borrower to receive pre-approved short sale terms prior to the property listing
• The Servicer cannot negotiate Realtor Fees under 6% (just like Fannie and Freddie)
• Requires that Borrowers be fully released from future liability for the debt
• Provides the aforementioned financial incentives to all parties
• Servicer must consider reasonable and customary real estate transaction costs for the community
• 120 Days to sell the home with pre-listing approved terms
• Home MUST be listed with a licensed real estate professional who is regularly doing business in the community where the property is located. (I love that one)

Servicer Requirements

• Short-sale must be an arm’s length transaction
• Servicer must proactively notify the borrower in writing of the availability of this program
• The Servicer must independently assess the current value of the property.
• Must establish minimum acceptable net proceeds before approving borrower for the program
• May NOT complete a foreclosure sale while:
  • Determining the Borrower’s eligibility
  • While awaiting the return of the request
  • During the term of the term of executed short-sale approval
  • Pending transfer with an approved contract

Other Considerations

• Buyer of the short-sale must agree to not attempt to sell the property for 90 days after purchase
• Notice must be given to Borrower that there may be negative credit repercussions, etc…
• Items needed to request a Short Sale Approval
  • Copy of executed sales contract and all addendums (not just the docs the agents want the lender to see)
  • Buyers Pre-Approval Documentation
  • Status of all subordinate liens

Cause for Termination of Approval

• Borrower’s financial situation improves
• Listing Broker or Borrower fail to act in good faith in listing, marketing and closing the sale
• Significant change occurs in the property condition or value
• Evidence of fraud
• Borrower files for bankruptcy

There are also timelines for processing of the short-sale.  The Borrower has three days to get the contract to the Servicer after ratification.  The Servicer than has ten days to approve the “Request for Short Sale Approval” so long as all required documents are in.

My Take

Please read the source documents carefully, because this post is just to outline what I found interesting and how I perceived it’s contents.

I would love to see all of this be a requirement to all lenders and not just a optional program.  I’m not convinced that there is enough incentive to cause the Servicer to use this program, but I may be wrong.

These are good and lofty policies, but how practical are they really?  How are they going to be enforced and how are practitioners going to know they are available without asking?

Remember:  You read it at your company blog first!

The “Realtors® Property Resource” (RPR) Database of 147 million parcels of Real Estate Information

A New Tool

Today NAR announced a new acquisition that will create a National Database of Real Estate Information for Realtors®. The announcement was made on Realtor.org, but many already knew about this move.

Here is the opening statement from the news release:

The National Association of Realtors® has acquired technology to create a database of all properties in the U.S. so Realtors® can better assist consumers in a high-tech, fast-paced business world.

The technology acquisition includes licensed data and secured data aggregation services from LPS Real Estate Group, a wholly owned subsidiary of Lender Processing Services Inc. (NYSE:LPS), a leader in real estate technology. NAR will use the assets to develop the Realtors® Property ResourceTM, a parcel-centric information database covering all of the more than 147 million property parcels in the country as a resource for NAR members. NAR is planning to launch RPRTM in the second quarter 2010.

“Realtors® are the first, best source for real estate information, and the RPR™ is another emphatic feature to that resource. RPR™ will give Realtors® nationwide data on all properties at their fingertips so they can respond quickly to consumers interested in residential and commercial real estate. This is exciting news and a terrific NAR member benefit. NAR is committed to keep Realtors® central to the transaction and to the buying and selling experience with their clients and customers,” said NAR President Charles McMillan, broker with Coldwell Banker Residential Real Estate in Dallas-Fort Worth.

NAR CEO Dale Stinton said, “These acquisitions will allow Realtor® interests to control the program and the content. Realtors® need to respond quickly to today’s tech-savvy consumers, and the RPR™ provides a means for multiple listing services (MLS), commercial information exchanges (CIEs) and real estate brokerage business models to support the Realtor® community, rather than requiring Realtors to purchase data aggregated by third parties.”

There are a number of speculations that this will be a MLS Killer,but NAR is assuring it’s membership that this  is no more than a tool for Realtors®.  Interestingly, Dale Ross, co-founder of MRIS will be on the RPR management team.

Also from the news release:

RPR™ is not a national MLS, and will carry no offers of cooperation and compensation, Stinton added. “It is a private, NAR members-only benefit. The assets acquired by NAR will be directed through a wholly owned subsidiary corporation, Realtors® Property Resource, LLC,” Stinton said.

We’re sure that this will be a much discussed topic at the NAR Convention and will most likely make the “Future of MLS” panel very popular.  It’ll be interesting to watch and see how this tool will impact members.  As always, it’s important for Realtors® to reach out and learn about, as well as use those tools created by your Association.

Thank you to FAAR Forums for this wonderful update!

Another Flyer on the Homebuyers Tax Credit Extension from VAR & Q&A’s from Realtor.org

Realtor.org Offers these Q&A’s:

Q. Existing homeowner credit:  Must the new house cost more than the old house?
A. No.   Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

Q. I am an existing homeowner.  On October 25, 2009, I signed a contract to purchase a new home.  I have lived in my current  home for more than 5 consecutive years and am within the new income limits.  I will go to settlement on November 20.  If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
A. Yes.  The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed).   There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

Q. I am a first-time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009.  I will be covered, however, by the new income limits.  If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?
A. Yes.  The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date.  So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you’re within the phase-out range).

Q. I am an eligible existing homeowner.  I have a fair amount of equity in my home.  I have found a home with a non-negotiable price of $825,000.  Will I be able to use any of the $6500 tax credit?
A. No.  The $800,000 cap on the cost of the purchased home is firm at $800,000.  Any amount above $800,000 makes the home ineligible for any portion of the credit.  The $800,000 is an absolute ceiling.

Q. I owned my home for 10 years, but sold it two years ago year and have been renting since.  If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
A. Yes.  Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit.  For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be  eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is “consecutive.” As long as he lived in that house for 5 years straight, what he did since 3 years doesn’t impact eligibility.

Q. I am an eligible first-time homebuyer.  I entered into a contract to purchase on November 1, 2009.  Do I have to go to closing before December 1?  How does the extension date affect me?
A. You do not have to close before December 1.  Once the legislation has been signed, it will be as if the Nov 30 date had never existed.  Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.

Extended First Time Home Buyer Credit 09

View more documents from Matthew Rathbun.

Congress has Extended and Expanded the Homebuyer Tax Credit! Details Below

The modifications in the column labeled “December 1 – April 30, 2010” became effective when President Obama signed the bill. All changes made to the current credit became effective on that date, as well.

Coldwell Banker Agents

November 6, 2009 – The Tax Credit Extension has now become law as the president has signed the bill! Even better news is these provisions go into effect immediately (not December 1st as previously thought). Click below to view an important video message from Jim Gillespie regarding the new Homebuyer Tax Credit as well as information on a special 2010 event.

Special Video Message From Jim Gillespie

 

Quarterly National Awards

Congratulations to our wonderful, hardworking agents! The following letter came from President & CEO of Coldwell Banker Real Estate LLC, Jim Gillespie. Keep up the fantastic work!

It is an honor to announce that Coldwell Banker Elite has attained the following Quarterly National Awards for the 3^rd Quarter of 2009.

Award

Top 50 Companies Nationally-Adjusted Gross Commission

Rank

32

Award

Top 50 Companies Nationally-Units

Rank

38

I am extremely proud of the achievements of Coldwell Banker Elite and commend you and your entire staff for your exemplary performance and dedication.  It is due to this commitment that Coldwell Banker Elite continues to be a distinguished member of the Coldwell Banker^® family and I look forward to your continued success.