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Cathy McDaniel American Real Estate University Today's buyer/consumer will spend more time educating themselves (internet) prior to hiring a real estate professional. They will want to ask questions, get truthful answers and have a feeling of trust prior to hiring you to help with their real estate needs. Gone are the days spending thousands of dollars on local advertising. If you have not joined the internet community in blogging, social networking and creating an outstanding website with consumer information you will not survive the new wave change in the future real estate landscape. Consumers will now interview you for the job. Meaning, you will need to be the "trusted advisor" in the neighborhood providing a full selection of trusted services and products. Homeownership will be a long term investment, holding on to your home 7-9 years before selling, after our current market crisis is corrected. When will that be? Experts predict 2012. You have plenty of time to change your business model to be local, full service and reach out within your community with public service campaigns i.e. Foreclosure Prevention", "Home Buying Seminars", Credit Repair Workshops". A great way to introduce yourself as the trusted advisor. Making connection in the neighborhood will be relationships; relationships will build your business for a great future ahead. Think about it...if you lose your home this year to foreclosure, you must wait three years to qualify for an FHA loan to purchase again. Based on the fact that we have foreclosed on over 1 million so far this year and a forecast of 2 million by the end of this year... 2012 will be a great year in homeownership/real estate.
Cathy McDaniel Great comments. Declining home values are a major concern across the nation. Only the real estate community professionals can slow down and even stop this process. 1. Local REO listing agents must, regardless of the potential sale price of the property make the small investments that make a big difference to the property regarding curb appeal prior to listing. Buyers should not be able to tell the difference between an REO property and a traditional for-sale property, or for that matter, even an occupied house on the street. When buyers drive up to a distressed property, they are thinking discount. 2. We must change the mindset of the buyer regarding the "fair market list price based on the home's current condition". By educating the buyer to request maximum seller concessions in "closing cost" i.e. FHA finacing, 6%, the REO seller can pay all closing cost, buy the buyer's interest rate down, pay 6 months HOA fees, and/or pay a portion of the buyer's monthly mortgage payment for the first 2 years of ownership etc. Also explaining to the buyer that today's home prices (in many areas) have returned back to 2000 pricing. Properties today have received 2 Broker Price Opinions and appraisal. If they discount their purchase today, it will take them longer to build equity. Show them a comparison on how $5,000 discount would affect their downpayment requirement and montly mortgage note. A few dollars. On behalf of the REO seller, by not reducing their list price and agreeing to participate in maximum seller concessions, they receive more many money back towards their loss and better home curb appeal will cause their properties to sell much faster. A win-win. It is all about education.
Cathy McDaniel Great comments. Behind the scene issues...regarding the "Making Home Affordable Plan" Freddie Mac/Fannie Mae, only 2 of the 7 private mortgage insurance companies are participating at this time. So even if you meet the program guidelines, you still may not be able to refinance or receive a loan modification today. Call your mortgage servicers today. Don't wait. Hey, how about the investor backing the loan? They do not have to participate either even with the government incentives and the mortgage servicer does not have to tell you who they are, however send the servicer a written request in compliance with and under the Real Estate Settlement Procedures Act, 12 U.S.C. Section 2605(e), demanding that a chain of transfer from them to whomever may possess any interest in the security as of this date, be promptly sent to you, including all information necessary to enable you to communicate directly with the current owner of any such interest. The servicer must respond within 60 days. When you learn who owns your loan, contact them direct for refinacing or a loan modification. It is time for all participants behind the scene of the mortgage work together to prevent another foreclosure. Short sales are include.