Realty World Northern California & Nevada

In the wake of attending the Inman Real Estate Connect conference in San Francisco this month, I have digested the wealth of discussions concerning the latest technologies, and the future expectation of the real estate industry.

The overall theme of the event focus was based on innovation, hyper-localism, and market recovery. With the newest buzz being placed on the infamous Developers Challenge boasting “geo-mapping” tools for mobile devices, one click data to video, and dynamic call routing provided by new comers like RealtyVoyager.com, and Stupeflix.com. They are never short of originality in naming their companies that’s for certain.

The common theme in every session I attended was certainly focused around the ability of an agent to leverage their knowledge within the community using all of these “viral” tools, and social media platforms to position the agent as the utmost local real estate expert. Encouraging today’s agents to focus their marketing efforts on the communities in which they live and work every day, as opposed to trying to capture a much larger audience.  With the advancement of the internet and the mass popularity of social media, there is still one thing that will always prevail…personal touch, professionalism, and knowing your community. There is no substitute for the personal interface you can have with clients to win their future business, and the referrals that will follow. Mastering the advantages of online marketing and social media is definitely a must in today’s market place. However, is entirely meant to compliment your best practices as a real estate professional.

There is a digital cornucopia of cool web tools, and widgets to convey an instant sense of credibility to your audience through your web presence. Although you must be able to put your media where your mouth is and provide the excellent customer service that you advertise through all of this great technology. The internet continues to provide a phenomenal vehicle to drive your message home,  and be the expert consumers all hope you are when you meet face to face.

RISMEDIA, July 26, 2010—(MCT)—David Kosowski has a full-time job, a sky-high credit score, a solid debt-to-income ratio and enough cash stashed away to put a 20% down payment on the three-bedroom, two-bath home he’s had his eye on since spring.
But when he applied for a mortgage to cover 80% of the $495,000 purchase price of the Coral Gables, Fla., home last month, he was flatly denied.
His story is one that has played out with head-scratching regularity across the troubled housing market, industry analysts say, even as mortgage rates have dropped to historically low levels.
The average interest rate for a 30-year fixed-rate mortgage sank to a record-low 4.56% this week, according to government-sponsored mortgage buyer Freddie Mac. Fixed-rate 15-year mortgages dipped slightly to an average 4.03%, also a record.
But even as rates fall, lenders are raising the bar ever higher for applicants, making it harder for even financially-stable home buyers to qualify, and in some cases making homes affordable only to those able to pay with cash.
Kosowski, who seems to have weathered the recession and the housing market downturn better than many—he’s employed and has considerable equity in the three-bedroom home he purchased 10 years ago—said his application was rejected because the company he works for (and owns a 25% stake in) saw its earnings drop between 2008 and 2009.
That was enough, he said, for the bank to turn down his loan application—despite his 817 credit score, a history of meeting all debt obligations and a 21% debt-to-income ratio.
“They asked me to explain the earnings decline,” he said. “I wrote a letter explaining that the economy had been down in 2009, and the next day they said the loan was denied. I was very surprised.”
Steve Schneider, his mortgage broker, and owner of Greenwich Title Services in South Miami, said he was surprised as well. “His credit is as good as anyone I’ve ever worked with,” he said. “He should’ve flown through.”
Such rejections would have been unheard of a half-decade ago, when credit was flowing freely, often to people who couldn’t afford the homes and condos they were buying, said Doug Dewitt, a Miami-based real estate broker.
“Now the pendulum has swung completely in the other direction, and lenders are making you very accountable in terms of your credit history,” he said. “It’s like they don’t want to write one more bad loan.”
With South Florida’s housing market still struggling to recover from record-high foreclosures, toppled home values and a glut of inventory, the ease with which banks now turn down applicants is nearly unprecedented, he added.
Potential borrowers are being denied access to tantalizingly low interest rates for reasons ranging from insufficient down payments, to a less-than-perfect credit history, to concerns about the property or buildings they hope to buy into.
The current interest rates are so desirable because they translate into significant savings in monthly and total payments for home buyers. For example, someone getting a $250,000 home loan in July 2010 would save an average of about $155 each month, compared to someone getting a similar loan last July, when the average 30-year fixed interest rate was about a percentage point higher.
Mortgage lending in 2010—down about 50% from early 2009—has shown a complete 180-degree turn from the home lending practices that reigned before the housing market bubble burst, and represents yet another obstacle stalling a recovery in the housing market, those who track the industry say.
Kosowski had very little trouble getting a loan for the home he bought back in 2000, when his income was lower than it is today. As he looked to move into a bigger home this year, the stack of paperwork he had to fill was considerably thicker than it was 10 years ago.
“It’s night and day,” he said, comparing the two loan application experiences. “I had to give about a quarter of the information that they ask for now, my income was significantly less than it is now, and there was no problem getting a loan. It’s almost like they don’t want to lend.”
The low-interest rates have done little to spur activity in the housing market. Last week, the number of mortgage-loan applications for home purchases dropped to its lowest level since the 90s, the Mortgage Bankers Association found. Nearly four out of five applications were from existing homeowners looking to refinance, many of them rejected because of insufficient or nonexistent equity.
Despite prices that have fallen drastically in the past five years, traditional home sales to traditional, middle-income buyers have been pushed to the margins.
With the expiration of the federal home buyer tax credit and many still worried about losing their jobs, the stiff lending requirements of banks offer up yet another reason for the average person to not buy a home.
Kosowski, who works for a lighting manufacturing company, ended up paying cash for the Coral Gables home in June, and is hoping to get a refinance loan soon.
Greg McBride, senior financial analyst for Bankrate.com, predicted that mortgage rates would remain low for the foreseeable future, but it will take more than low-rates to spur a recovery.
“Low mortgage rates alone are not going to revive the housing market,” he said. “People are still nervous about their jobs, and reluctant to take the plunge into home ownership. And the market continues to be plagued by a very high level of distressed properties.”

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A lot has been stated about the Apple iPhone 4. For all of you non-AT&T users or Apple haters there has been some very exciting news in the Verizon and Droid world. For those of you who haven’t heard on the news or who don’t watch tv commercials, the Motorola Droid is a smartphone which runs Google’s Android operating system. The brand name “Droid” is a trademark of Lucasfilm and is licensed to Verizon Wireless and originally was released back in November of 2009. Various other devices are running the Android operating system and labeled as “Droid” phones.

Enough about the history lesson and onto the Motorola Droid X. Jump to July 16, 2010. The successor to the original Motorola Droid went on sale and completely sold out, despite Verizon’s reassurance that there would be more than enough phones to go around. Verizon’s website shows a ship date by August 3rd.

Similar to the iPhone 4 launch, the Motorola Droid X is having its share of defects and complaints. The defects include some units have flickering or banding displays as well as a Wi-Fi bug where we connection signals are being reported. The numbers of issues for the screen defect and affected users are small and replacements are being issued currently.

The Motorola Droid X has an impressive feature list and understandably contributed to its success on launch day.

Features

• 8 Megapixel camera with dual LED flash
• 720p HD video camera
• 4.3-inch screen in 16:9 ratio
• Wi-Fi & Bluetooth
• 8GB internal storage with 16GB microSD preinstalled expandable to 32GB
• Push email support for Gmail & Exchange & Yahoo
• Unified Google Calendar and Exchange Calendar
• Unified inbox
• 480 minutes usage time
• 220 hours of standby time

I will add in one thing that I don’t think many people are aware of. Verizon’s network currently doesn’t support simultaneous voice and data. What that means is that if someone calls you and says “take a look at the email I just sent you.” Unfortunately, unlike AT&T you will need to get off the phone to do so. The same goes for pulling up a web browser and being on the phone. There are times when I may be on a phone call and I need to Google a phone number or an address and being on AT&T’s network definitely comes in handy.

Repossessions climbed 38 percent in the first six months of 2010 compared 2009 and were up 5 percent from the first quarter, foreclosure listing service RealtyTrac announced Thursday.

In all, lenders repossessed nearly 528,000 homes in the first six months of the year. If that rate continues through the end of the year, repossessions will likely top 1 million in 2010, up 100,000 from 2009.

Historically, about 100,000 homes per year in total are repossessed, according to Rick Sharga, senior vice president for RealtyTrac.

More than 7.3 million home loans are in the foreclosure process, with one in 78 U.S. homes receiving a foreclosure warning in June.

On average, it takes home owners 15 months to actually lose their property after they receive the initial warning, reports Lender Processing Services Inc.

Source: Associated Press, Alex Veiga (07/15/2010)

Purveyors of goods and services who are at the top of their marketing game rarely use their mouth to draw a prospects attention and then pitch in the prayer of a sale. Rather they use their ears to learn what a potential customer needs and then present a solution that is cost effective and worthwhile.

I mention this because recently I had the privilege of meeting two of our newest members to the Realty World Northern California Family, Robert (Bob) Fernandez and Francisco Gonzalez, co-owners of Realty World – Golden Hills in San Jose, California, formerly Century 21 – Golden Hills. Both are long time veterans of real estate in the South Bay and both knew immediately what their business needed in order to compete in times of rapid change. Bob and Francisco are keenly mindful of the activities it takes to run and profit from operating a real estate brokerage firm with over fifty sales associates and a long book of business.

Since joining Realty World, our meetings have focused on the consolidation of tasks that real estate agents need to do in order to compete and win in the eyes of consumers. Bob and Francisco knew these activities were important and a prerequisite for any successful associate continuing in or just launching their real estate career. Their validation of what we are doing at Realty World was a positive sign to me that we had invested right in terms of bringing the business to the agent.
However, there is more to it than that. If you have attended any of the presentations we have conducted at various industry functions this year; you’ll know that the game of finding real estate and a knowledgeable professional to help is changing. Change is the one constant denominator of all markets.

I expect Realty World – Golden Hills to be one of the companies that will be on top of that game too. It’s my pleasure to introduce them to you and I hope you’ll take a minute to welcome them aboard! Bob and Francisco can be reached by phone at 408-238-5111.

We want to wish you all a happy 4th of July! It was on this day in 1776 that the United States of America declared its independence from England. 234 years have passed since then and I hope that many more years of freedom continue.

We hope that all of our readers are having a great (and safe) 4th of July weekend. As you’re celebrating the day and enjoying that barbeque, don’t forget what it took the Founding Fathers to win this country from the British.

So, enjoy the rest of your July 4th weekend, and drive safe!

Starbucks is now offering free Wi-Fi for everyone for all customers in its company-owned stores in the United States and Canada as a part of an ongoing commitment to enhancing customer service. No Starbucks card required, no username or password needed, no time limits, and unlimited usage. Starbucks is working with AT&T in the U.S. and Bell in Canada as its Wi-Fi providers.

Starbucks was one of the first chains to offer Wi-Fi, using T-Mobile some years ago. Customers were allowed 2 hours of free Wi-Fi access provided with use with a Starbucks Card to login.

So much daily business is done currently within the walls of a Starbucks with a coffee in hand and to have free Wi-Fi seems fantastic. However, is it safe?

As with other public Wi-Fi networks, there are risks involved with connecting to public hotspots. To minimize your exposure you should be aware of several basic items. Following all of these items does not mean you are entirely protected against malicious attempts and personal exposure.

When you are on a public network you should turn off your file sharing and public folder sharing. In Windows it is located in the Control Panel and then Network and Sharing options. For Mac it is located under System Preferences and Sharing.

As for web surfing it isn’t a big deal (to me) to surf the web, in a general sense. However, be cautious to entering in usernames, passwords, credit card info, etc. to websites that are not encrypted. As a general “rule of thumb” you can tell by looking at the website address and if it starts with an “https” instead of “http.” However, there are sites where you enter login information on a website starting with “http” that submits securely to “https” and that is fine as well. As always, make sure you have your anti-virus and malware software up to date.

Image via wikia

Is that what your clients or the individuals needing your expertise are asking themselves right now?

There is a game out there that has to do with finding “Waldo.” Through the way that the maze is laid out in colors and shapes it is very hard to find good old Waldo. However we know that he is there so we keep concentrating to the point of devising every imaginable way to seek out and locate Waldo.

Are we a “Waldo” in the Real Estate business that we chose as a profession? Do our clients or future clients have to devise every conceivable way to find us? I would ask you to truly analyze your business model as it is at this very moment.

Many of the “colors” and “shapes” that we are hiding in are such things as cutting back on our marketing each day, improvising something new everyday and specializing in nothing, or spending all of our time in short sales and REOs and forgetting the true real estate market that is gaining traction everyday!

No matter what is going on in your life right now you need to wake up everyday knowing that there are people outside your front door that are looking for the professional that is knowledgeable and professional enough to get them through the present slowdown in the market. There are people that want a professional that will call it like it is. Quit promising falsehoods and work with an action plan that with make things happen! Now is the perfect time to increase your visibility so that you stand out from the masses. Today is an open opportunity to show your wares and prove your value as a professional. Consumers crave pure knowledge and the understanding when it comes to real estate right now, yet above all they want someone to just take the time to enlighten them!

The real estate profession qualifies you! Move away from the pathway of criticizing, being judgmental, and being pessimistic.

You know politicians do not own the concept of “Town Hall” meetings! Politicians use them to get close to the public and give the public the opportunity to ask the questions that are important and maybe personal to the individual, the community, or the families. Neighborhoods need the real estate professional talking to them, not “hiding” totally behind flyers. Families need the real estate professional talking to them in their homes not “hiding” totally behind a newsletter.

Where are you?!

Know that Trust, Integrity, Loyalty, and Responsibility cannot be built by hiding; it is built by being face to face with the public.

The truth of the matter is the fact that if you are not in the best of health both physically and mentally, your business is going to suffer, especially in today’s new business model.

For your own sake and for the sake of your business you need to put in place a very strong action plan to take control of those things that you can control.

Day in and day out I hear from individuals that are totally frustrated and overpowered by the stress they are under due to the pressures that the real estate profession that they chose as a vocation is placing on their lives. Many times it comes from those that are very organized, have direction in their personal lives and business. Many of those that I talk with are on the threshold of a panic attack, if not worse!

Take A Break!

In so many cases we are our own worst enemy. It is not the Lender, Title Company, Appraisers, nor work associates, it is us! We tend to find ourselves loading ourselves with too many ‘to do’s’ on our ‘To Do List’ and not allowing time to recharge our inner soul that drives us. Achievement in our lives needs to be on a scale that allows us to shut down from time to time.

Do not allow your ‘To Do List’ to be the all controlling factor in your life. Instead turn it around and list those things that Do Not Need to be completed each day. This also pertains to behaviors and individuals that consume the force that allows you to be the best that you can be.

By the way those ‘electronic devises’ that we rely upon so much today need to be controlled. They ensnare us into thinking that we are productive and it does not allow one to shut down because we fall into the thinking that we are ‘busy’ when it is only a perception of being busy.

Refine your schedule for ‘your’ time! Everyone needs to be free from the pressures of the daily grind. This is so important, that if necessary, schedule your shut down time in your day planner and respect and hold it more hallowed than the time we put aside for our clients and business!

Live in the present and complete each undertaking well before moving on to the next one. The word ‘multitask’ handicaps so many in today’s business world. You need the ability to clearly see each undertaking, complete it fully before moving on. You need to be able to be organized and have the ability to sort out and define each task so that it can be completely accomplished.

And then there is my biggest pet peeve that chips away at the foundation of our lives, families, and business. Learn to say ‘NO.’ Yes, it is very hard to learn how to say ‘no’ to someone, however this goes back to the point made earlier, concerning behaviors, individuals, and undertakings that consume us. Don’t lie when you say ‘no’ state the facts and reasons even to the point that you just need some free time to organize your thoughts.

Once again, for your mental and physical well being: Take A Break!

So, you’re probably wondering amidst all the good news about the economy spun from the dominate media culture, why the economy still feels bad? Simple answer, many in the media complex don’t run businesses and they are listening to people who don’t run businesses for their sources. What to do?

Well, if you’re like most real estate people I know; you’re working 5 times harder for less than half the income. You’re not alone either. You know where the vacant buildings, warehouses and retail stores are; you drive by them every day. Just last summer a little over two-thirds of the entire industrial capacity in the US was working and in some sort of production use. Today, that has dropped to just under 75% or about 5 points less than normal when the economy is doing well. Don’t hear that in the news to you?

What does all this mean to your income? It means you have to see and touch more people with your value proposition in person. Belly to belly. Face to face. A prospect can’t send you to the deleted file, mail filter or trash can. They have to talk with you at some point, hence your selling strategy and listening skills had better be ready and oiled for action.

What advantage will I have in this scenario? Well, most salespeople are going to be dead before they start. Meaning they are getting ready to get ready. They will never go anywhere. You know who I’m talking about too. Second, most salespeople will resist the street in favor of blast emails, wasted postage and off line gimmicks from personal promotion to refrigerator magnets. That will account for about 93% of the competition. 7% will know this and immediately shift to the street for instant prospecting and immediate results. Remember, even a call on a prospect that has to interest to purchase or sell is a worthwhile event. It tells you who’s not players; sharpens your tactical skill and presents an opportunity for seeking referrals.

Those same 7 percent will communicate not only in person, but will use that offline call time to redirect their prospect to an online resource (namely their BLOG) to keep the prospect attenuated to the needs analysis and selling points of your in person call. Similarly, to what you do in the online world.

There is no better time to wake up and smell the pavement.