Great Property Marketing Requires Sacrifice

How do you craft a compelling marketing message that draws the perfect buyers to your listings? It’s all about the principle of sacrifice, said Laurie Moore-Moore, founder of the Institute for Luxury Home Marketing, based in Dallas.

“Don’t waste your time bringing in people who won’t buy the house,” Moore-Moore told REALTORS® on Friday during a session on how to develop a successful marketing plan for luxury properties at the NATIONAL ASSOCIATION OF REALTORS® Conference in New Orleans. “Sacrifice those people and focus on the ones who will buy.”

For example, if you’re struggling to get offers on a beautiful home because it has a miniscule backyard, create a message that targets the small pool of buyers who would see that negative feature as a selling point. The headline to use in your marketing messages: “Backyard Removed for Your Convenience.”

Or, if you can’t seem to find any positives for a condo that’s just like all the others in the building, only it looks out onto a brick wall rather than the city skyline, try a headline like “Willing to Trade View for Value?”

“Target the prospects for whom view is not an issue,” Moore-Moore said. “Sometimes the negative is your best hook—it becomes the reason to buy.”

Moore-Moore emphasized the importance of writing an interesting and descriptive headline that’s used in your printed marketing materials, your social networking communications, and possibly even on your For Sale signs. (Tip: Never use the property address as the headline!)

Once you draw the prospects in with a great headline, follow up with a story that defines the home’s lifestyle and calls out the most unique aspects of the home.

“Recognize that marketing is storytelling,” Moore-Moore said. “Ask yourself: What is different about the house that competitive homes can’t say? You have to find that special story.”

—Kelly Quigley, REALTOR® Magazine

 

Home Prices Stabilizing in Key Markets…

ZipRealty says in its third quarter report that homes in key markets all over the country are selling above the asking price.

The report shows that the spread between the sales-to-list price ratio lessened significantly in most markets, but high-end housing markets in many areas continued to offer great bargains for buyers.

The 10 hottest ZIP codes in the ZipRealty markets where the selling prices was greater than the asking price were:

1. Greater Grand Crossing – Chicago, Ill. (60619)
2. Oakland, Calif. (94603)
3. The Loop – Chicago, Ill. (60603)
4. Excelsior – San Francisco, Calif. (94112)
5. Fort Lauderdale, Fla. (33309)
6. San Bernardino, Calif. (92411)
7. Oakland, Calif. (94621)
8. Covington, Wash. (98042)
9. Berkeley, Calif. (94702)
10. North Las Vegas, Nev. (89030).

The coldest ZIPs, where selling prices were below asking, were:

1. Statesville, N.C. (28677)
2. Singer Island, Fla. (33404)
3. Philadelphia, Pa. (19140)
4. Boca Raton, Fla. (33434)
5. Jacksonville, Fla. (32206)
6. Chester, Pa. (19013)
7. Naples, Fla. (34102)
8. Palm Beach, Fla. (33480)
9. Reading, Pa. (19602)
10. Durham, N.C. (27703)

Source: ZipRealty (10/22/2010)

White House Addresses Foreclosure Moratorium

Federal officials made a full-court press this weekend to ward off a foreclosure moratorium.

In a piece posted Sunday on the Huffington Post Web site, Secretary of the Department of Housing and Urban Development Shaun Donovan wrote: ”The notion that many of the very same institutions that helped cause this housing crisis may well be making it worse is not only frustrating — it’s shameful.”

But he stopped short of calling for a moratorium on foreclosures, saying, “A national, blanket moratorium on all foreclosure sales would do far more harm than good, hurting home owners and home buyers alike at a time when foreclosed homes make up 25 percent of home sales.”

Meanwhile, Federal Deposit Insurance Corp. Chair Sheila Bair told listeners on C-Span’s Newsmakers, ”If it turns out this is just a process issue, then I don’t anticipate the exposures to be significant. If it turns out to be something more fundamental, then we’ll have to deal with that,” she added. ”But I think we need to get all the information before we jump to any conclusions.”

Source: The New York Times, David Segal (10/18/2010)

BofA Freezes Foreclosures Nationwide

With CEO Brian T. Moynihan citing a need to “clear the air,” Bank of America announced last week that it would halt foreclosures in every U.S. state to ensure accuracy in its documentation.

Bank of America, JPMorgan Chase & Co., and Ally Financial Inc. had previously frozen foreclosures in 23 states where courts have oversight of home seizures. The concern in those institutions was that employees hadn’t properly reviewed foreclosure information.

Bank of America’s decision to extend foreclosure freezes to all 50 states was roundly hailed by political leaders. Senate Majority Leader Harry Reid (D-Nev.) said other banks should follow the company’s example, and House Oversight and Government Reform Committee Chairman Edolphus Towns (D-N.Y.) said that Bank of America “did the right thing.”

However, Bank of America did take a hit in the market for the decision: The company’s stock price fell 1 percent on the New York Stock Exchange the day of the announcement.

Source: Bloomberg, Michael J. Moore, Lorraine Woellert, and Dakin Campbell (10/08/2010)

NAR Hails Bill to Hasten Lender Response to Short Sale Requests

Washington, September 16, 2010

Homeowners who are underwater with their mortgage may find that relief is on the way from a bill strongly supported by the National Association of Realtors® that would impose a deadline on lenders to respond to short-sale requests.

The legislation, H.R. 6133, “Prompt Decision for Qualification of Short Sale Act of 2010,” was offered yesterday in Congress by U.S. Reps. Robert Andrews (D-N.J.) and Tom Rooney (R-Fla.). The bill would require lenders to respond to consumer short sale requests within 45 days.

“The short sale, which requires lender approval, is an important instrument for homeowners who owe more than their home is worth,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “While the lending community has worked to improve the size and training of their short sales staffs, they still have a long way to go on improving response times.”

“As the leading advocate for homeownership issues, NAR believes that quicker attention to the short sales process is vital to help homeowners who are underwater and their communities, as well as the nation’s economy,” said Golder.

The number of potential short sale properties is rising across the country. According to NAR data, in the second quarter of 2010, Nevada, California, Florida and Arizona are states where significant shares of all properties on the market are potential short sales: 32 percent, 28 percent, 27 percent and 24 percent, respectively.

“Unfortunately, homeowners who need to execute a short sale are severely hampered because lenders (loan servicers) are unable to decide whether to approve a short sale within a reasonable amount of time. Potential homebuyers are walking away from purchasing short sale property because the lender has taken many months and still not responded to their request for an approval of a proposed short sale price. Many consumers have mentioned that the delay in short sale price approval exceeds 90 days, and in many cases never arrives,” Golder said.

She commended Reps. Andrews and Rooney for their efforts on the bill and urged Congress to pass the bill quickly.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

See Original Article Here>>http://www.realtor.org/press_room/news_releases/2010/09/lenders_shortsale

July Pending Home Sales Show Rise

Following a sharp drop in the months immediate after expiration of the home buyer tax credit, pending home sales have modestly risen, the NATIONAL ASSOCIATION OF REALTORS® says.

The Pending Home Sales Index, a forward-looking indicator, rose 5.2 percent to 79.4 based on contracts signed in July from a downwardly revised 75.5 in June, but remains 19.1 percent below July 2009 when it was 98.1. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, cautioned that there would be a long recovery process. “Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery,” he said. “But the recovery looks to be a long process. Home buyers over the past year got a great deal, and buyers for the balance of this year have an edge over sellers. For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity.”

Yun added, “Affordability could reach a generational high in the second half of this year because of rock-bottom mortgage interest rates, helped partly by the Fed’s very accommodative monetary policy. The loan underwriting standards are tighter, but home buyers can improve their chances of getting a loan by staying well within their budget.”

The PHSI in the Northeast rose 6.3 percent to 62.5 in July but is 21.1 percent below a year ago. In the Midwest the index increased 4.1 percent to 66.7 but remains 25.7 percent below July 2009. Pending home sales in the South rose 1.2 percent to an index of 86.3, but are 15.6 percent lower than a year ago. In the West the index jumped 11.6 percent to 95.0 but is 17.6 percent below July 2009.

The national index had fallen 29.9 percent in May and another 2.8 percent in June.

Yun discusses the latest index figures in a 3-minute video.

Source: NAR

Home Affordable Foreclosure Alternatives–Can Programs Help Homeowners Who Face Foreclosure Or Bankruptcy?

Alternative programs have been offered to help homeowners who may be facing foreclosure due to the inability to find an affordable solution to their mortgage difficulties. Programs like the home loan modification plan and alternative assistance options have been made available to certain homeowners who were facing the loss of their home. However, some homeowners have either been denied the assistance they need or simply can no longer afford their home loan even when an assistance plan is available.  Foreclosure alternatives have been offered to aid these homeowners so that they can minimize any damage to their credit score.

Programs like deed in lieu of foreclosure plans and short sale options have been offered to homeowners who have been unable to benefit from alternative mortgage assistance plans. While modifications, unemployment assistance plans, and even underwater mortgage programs have been set in place, there are many homeowners who have been unable to find the help that they have been looking for but there may be hope even if the loss of their home is unavoidable.

Deed in lieu of foreclosure programs have been made available to homeowners who willingly surrender the deed to their home. Many mortgage servicers will allow a homeowner to avoid the foreclosure process if they surrender their deed and, in some cases, homeowners are given a set period of time before they must evacuate their home which has allowed many to make alternative living arrangements.

Short sales have also been an option for some homeowners, like those who are suffering from an underwater mortgage, when paying monthly payments on a home whose value is less than the amount owed has become burdensome. Homeowners who owe more on their home than their home is worth are obviously troubled but some are simply unable to continue paying on a home whose value has decreased.

While these foreclosure alternative plans are not optimal since homeowners have been desperately trying to save their home, these options may be a way for homeowners to avoid damage to their credit score which could prevent them from buying another home when their financial situation improves. Obviously, homeowners are being prompted to seek out modifications or in-house assistance options from their mortgage lender, but in cases where assistance is unavailable homeowners may still benefit from these alternative plans which will allow them to avoid the foreclosure process and may put them in a better position to begin rebuilding their finances in the future.

08/31/2010 By Steven Craig

Call Anita Mcbride for more information about Claremont Escrows Services 909.942.2078

5 Reasons Homeownership Trumps Renting

The seemingly endless run of bad housing news is discouraging some potential home buyers from considering a purchase. But the truth is that the advantages of homeownership have very little to do with investment gains. The best things about owning a home have a lot more to do with personal comfort and satisfaction.

Here are five of them:

• Be your own landlord. The bank can only kick you out if you don’t pay; a landlord can be much less dependable – deciding to sell the property or choosing to live there themselves.

• Paying the principal is forced savings. Yes, it’s possible that home prices will fall further. It is also possible that your 401(k) will lose value. But over the long haul, both are likely to enjoy modest gains in value.

• Fixed-rate mortgages never rise – and eventually you pay them off. With mortgage rates at record lows, people who buy now are locking in real bargains.

• Good schools. Family-sized rentals are harder to come by in areas with excellent public schools.

• Spacious properties in pleasant neighborhoods. Sizable homes in attractive communities are almost always owned – not rented.

Source: The New York Times, Ron Lieber (08/27/2010)

Freddie Mac HAFA Too Exclusive? (via Partnerfirst’s Blog)

As we all should know by now, Fannie and Freddie (GSE) HAFA guidelines were released on June 1st, 2010 and the program launched on August 1st. I haven't personally done a GSE HAFA short sale yet but I have made myself very familiar with the 22 pages of guidelines. There are many distinguishing qualities when compared to the Treasury's version of HAFA, but one has jumped off the page and smacked me in the face. Freddie Mac's HAFA states: Servicers … Read More

via Partnerfirst's Blog

Investors Turn to Flipping for Quick Profits

Private equity firms and other groups of wealthy people are purchasing foreclosures at distressed prices, rehabbing them, and selling them for a quick profit.

This used to be a game for amateurs, but because of the lack of other investment opportunities, the money-management pros have stepped in.

The influx of new players is pushing up auction prices and making it harder to make a profit. The average discount at auctions — the difference between a home’s sale price and its actual value — is 21.6 percent, down from 28 percent in January 2009, according to ForeclosureRadar.

“In crisis there’s opportunity,” says Rick Hudson, president of investment firm Prosperity Group Real Estate in Irvine, Calif. “Right now there’s huge opportunity with flipping houses.”

Source: Los Angeles Times, Walter Hamilton and Alejandro Lazo (08/20/2010)