Real Estate News

It seems like a hundred years ago that we were able to dial 411 free of charge and get any telephone number. That service has gone the way of the pay phone. But now you, as a Coldwell Banker Weir Manuel Realtor, have a real estate tool that brings the concept of information into the 21st century.
Mobile Real Estate ID.

If you’re a CBWM Realtor you have been automatically subscribed to a new and powerful “411″ system. Mobile Real Estate ID is a program that allows 24/7 access to listing information.

When potential buyers drive by one of your listings, they’ll see a sign (“rider”) attached to the CBWM “For Sale” sign. All they need to do is grab a cell phone and text the number they see on the rider–or use a smart phone to scan the QR code on it. They’ll receive an instantaneous response describing the home. They will also have the option to contact you, the listing agent, for more information.

It’s really as simple as 1, 2, 3:
1. A passerby texts or scans the sign on your listing
2. He receives information, from simple to detailed
3. He is able to contact you immediately
Why is this technology important to your business?

Smartphones are rapidly replacing many other forms of communication. 101 million smartphones were shipped worldwide in just the fourth quarter of 2010 alone. Not only is that number an 83% jump from fourth quarter 2009 results of just 54 million, but it also puts the total number of smartphones sold in 2010 to 303 million…a 74% increase over 2009, and a number which means that smartphones are now officially outselling PCs for the first time in history.

Some more facts to dazzle you:
• More than 2.5 billion text messages are sent each day in the US
• An average user sends 357 text messages per month
• Texting is now used more than calling
• QR code scanning grew over 1200% in the latter half of 2010
• More than 65 million US mobile subscribers have phones capable of scanning QR codes
• 87% of users scanning QR codes are requesting additional information on a product or service
• All smartphones can scan QR codes

Those consumers in the 25-34 demographic are major users of smartphones, of course. But even in the 45-54 demographic, 18% use a smartphone. And virtually everyone uses a cellphone now.

The Mobile Real Estate ID technology we have put into place is the newest offering in our extensive toolkit of services. The program is already getting rave reviews from your fellow Realtors at CBWM who are proud to be leaps and bounds ahead of the competition.

The Internet is a marvelous invention. You can use it to find members of your high-school class, the parts list for a 1937 LaSalle, the first movie that Clark Gable ever made and almost anything else you can possibly want to know.

Unfortunately, this wonderful source of information can also produce a state of mental paralysis called “information overload”.

As we speak with prospective real estate buyers and sellers, we find that many people who have used the Internet for real estate advice are suffering from confusion resulting in “information overload”. And who can blame them?

On any given day, various media sources tell consumers that “the real estate market is looking much better” and, on the same day, another media source warns them that “the real estate market has never looked worse”. They read that “mortgage rates are very low”, and then that “the government will soon cause mortgage rates to rise”. They are told that “this is a terrific time to buy”, but that “thousands of people are losing their homes”. They hear one of their neighbors tell them they sold their home in three weeks, while another neighbor has had his home on the market for 18 months.

As a result of all of this contradictory information and advice, it is not surprising that the most-asked question we hear from our clients today is, “What would you do?” So, we thought it would be helpful to cut through some of this noise and talk about how we are advising our prospective clients in this confusing market.

They’re known as “FSBOs” — properties for sale by owner. Every year, hundreds of thousands of properties are listed not by real estate agents but by the owners themselves. Often, these are property holders who want to save a real estate agent’s fee and are willing to do all the work. But sometimes, FSBOs are attempted by owners who have unrealistic expectations of how easy it is to sell a property.

I’ve witnessed firsthand the challenges Realtors face every day (especially in this economy). So, I wasn’t surprised to read that, after a failed attempt to go it alone, Colby Sambrotto, one of the founders the website ForSaleByOwner.com, ended up hiring a real estate agent to sell his $2 million condo

This spring, as Wall Streeters collected their bonuses and the market for two-bedroom condos in Manhattan heated up, Sambrotto’s savvy agent increased the asking price by $150,000, from $2 million to $2.1 million.
At that 7.5% higher price, the seller received multiple offers. So it can be argued that the agent paid for himself and then some.

Is using an agent always a guarantee that you’ll get a higher selling price on your listing? No, but a Realtor does have a big advantage over an FSBO seller. The homeowner is selling only his property, but the agent is involved in multiple transactions. As a result, the agent can often “read” the market more accurately because of that broader sample of information.

In fact, nearly a quarter of FSBOs surveyed said that “getting the right price” was the hardest thing for them to do, even ahead of “having enough time to devote to all aspects of the sale” (23%) and “preparing/fixing up the home for sale” (18%).

As a result, FSBOs accounted for just 9% of overall home sales in 2010, according to the National Association of Realtors.

Now if you’ve read this far and still want to go FSBO, don’t let me stop you. Just remember, it’s not as easy as the Internet gurus make it look.

Source: Alison Rogers, TIME: Moneyland

In the wake of the recent hurricane Irene, let’s chat a bit about some of the occasional disasters (natural and otherwise) that can befall a real estate transaction. After the hurricane, many transactions were put on hold, awaiting inspections by buyers, appraisers, engineers and even insurance companies. The assessing of any damage has left many transactions in danger.

Does a buyer want to risk some structural damage or even mold problems? How long will it take a seller’s insurance company to respond, pay and complete repairs? Some homes were even damaged beyond repair. No one really could have prevented these issues, but some other “disasters” could have been…

• Title Issues: chain of title, past mortgages, judgments, foreclosures, old tax bills, certificates of occupancy, and other thorns in the side of closings often can be dealt with much earlier in the process. Attorneys and lenders who are proactive in attacking title challenges are not the norm. Making sure you have them on your team can save you a lot of headaches.

• Appraisal Issues: sellers often neglect one of the most important roles you can play…the sales person to the appraiser. You can have some influence on the value that appraisers establish by providing the best possible comps, thereby saving the appraiser time and energy. An agent who can help make a home look more appealing through staging is invaluable in exciting buyers and appraisers.

• Credit Issues, Asset Issues, Employment Issues: home buyers’ loan applications are under more scrutiny than ever. Buyers who work with a loan officer who is a coach (properly structuring loans, optimizing credit scores, explaining deposit and job abnormalities) can avoid some of the biggest disasters.

Bottom line, some problems are unavoidable…but many pitfalls can be avoided when a buyer or seller has a well-trained Coldwell Banker Weir Manuel sales associate working for him as his trusted advisor. Be sure your clients know the difference between an ordinary real estate agent and you! It will make all the difference to him!
Source: The KCM Group

by Kim Pollack, director of marketing and communications

Whether you’re looking at a foreclosed home, bank REO, a short sale or, really, any home, you need to be aware of the FHA 203K Program.

The general condition of real estate has taken a dip over the past few years, as homeowners are not sprucing up their home as they have in the past.

The 203K loan can be used for small repairs (with a minimum of $5000 of work) such as a new roof or replacing the boiler. It can go all the way up to practically rebuilding the home and anything in between. Maybe you love a home, the neighborhood, etc., but you hate the kitchen cabinets. The 203K may be for you. As long as the existing foundation stays intact, any type of repair, upgrade, modernization or expansion can be considered.

With one closing, you could borrow money to satisfy the contract with the seller and establish a rehab escrow account to fund the agreed renovations. The rehab escrow account is managed like a construction loan. Money is released after work is completed, the property is inspected by the lender and the title is updated.

Like all FHA loans, the property must be owner occupied and loan approval requires full documentation of income, assets and credit worthiness. At the same time, underwriting guidelines have some flexibility built in.

Loans are processed in the same fashion as any other loan (in terms of income, asset and credit) with the exception of the appraisal. Appraisers work in conjunction with the home improvement contractor and a HUD approved pre-planner to determine: “as-is” value, “after-improved” value, costs of construction and the draw schedule of the renovation portion of the loan. This work typically adds about a week to the approval process, largely because it should be done before contracts are signed.

It is recommended that you work with an experienced loan officer from Bankers Home Loan when exploring the 203K Program, as there are many details that need to be considered (from selecting a qualified contractor to the inner workings of the draw schedule and preparing for different contingencies). While the program is more intricate, with the right education ahead of time it is extremely manageable.
Source: The KCM Group

Michigan has the most green automotive jobs in the country with 38,067 workers in 97 facilities, according to a report produced by the United Auto Workers in partnership with the National Resources Defense Council and the National Wildlife Federation.

Ohio came in second with 13,753 jobs in 28 facilities. In all, more than 150,000 U.S. workers are producing fuel efficient vehicles and components. And, with the right government policies, the green vehicle industry could produce thousands more good jobs.

Release of the report was timed to coincide with President Barack Obama’s visit to an advanced battery facility operated by Johnson Controls Inc. in Holland, Mich. The plant received a $300 million stimulus grant that is expected to result in as many as 550 new jobs.

Currently, Johnson Controls is posting 317 open positions in Michigan. The jobs include everything from cost analyst to manager of seating components.

Source: Jennie L Phipps, MLive.com Contributor

We want to discuss the impact the downgrade of the U.S. credit rating will have on mortgage interest rates. In these times of uncertainty and volatility, no one knows for sure what will happen next. However, we want to talk about possible scenarios.

Mortgage rates normally run parallel to the country’s Treasury bonds. If many people are buying Treasury bonds the return on those bonds decreases. If fewer people are interested in buying bonds, then the return on those bonds must increase in order to draw more buyers. If bond returns increase or decrease, mortgage rates normally follow.

Some experts feel that the downgrade in the country’s credit rating will cause people to see greater risk and therefore be less likely to invest in our Treasury bonds. That would necessitate returns to push upward as any investor would seek higher returns as compensation for the perceived greater risk. If that happens, mortgage rates will probably increase. Many experts believe this scenario will take place.

However, others believe the exact opposite could happen. If people think the U.S. is struggling financially, they may question the entire world economy. If they do, they might still trust the U.S. bonds over other investments. Then, Treasury bond returns would decrease as demand increases. Mortgage interest rates may actually soften in this scenario.

Tom Balames, managing member of Accelerated Assets, LLC, is more in the camp of the latter. “As bad as people think things might be here in the United States, they are probably worse in other areas of the world and, on the whole, people would most likely rather own U.S. bonds over those of most other countries,” he said. “This should keep mortgage rates low for some time to come, which is obviously a good thing for buying real estate.”

Bottom Line: Again, no one knows for sure what will happen. Rates could go up, go down or stay relatively unchanged. We will keep you current on any movements in rates.