Move My Realty - Real Estate News

• Not having a business plan. Going into real estate means going into business for yourself. It takes a detailed and disciplined plan to make your business a success. It includes setting goals, developing a marketing plan, choosing services you'll offer, and developing a budget.

• Failing to field a good closing team. Selling a property is just the first step. Closing the transaction requires dealing with other real estate professionals, a lender, an insurance salesperson, a title officer, property inspector, an appraiser, and sometimes others. Having a skilled closing team with whom you work well is important because one hiccup can put an end to the deal.

• Missing the right tools. Tools of the trade include access to multiple listing services, a mobile phone with lots of minutes, a laptop and a big comfy but presentable car.

• Lacking the money. New real estate professionals rarely earn income for at least 60 days, so having money in the bank is vital.

• Skimping on marketing. How much business you attract is directly related to how much you spend on marketing. No advertising equals no business.

• Spending marketing money in the wrong places. New real estate professionals should look to their own sphere of influence and referral marketing for the most effective return on investment. In other words, focusing on friends and family pays off.

• Choosing the wrong broker. A big name and a big commission split is nice, but here are the most important questions to ask when you are a newcomer considering affiliating with a broker. Do they have incoming leads? What does their training program consist of? What's their retention level? What's their average sales price? Do they encourage their agents to promote themselves?

Source: American Chronicle, R. Eric Bramlett (7/31/2007)

Home Builders Predict 'Long, Slow Climb'
Don’t expect new home sales to pick up until 2008, predicts David Seiders, chief economist for the National Association of Home Builders. Even then, he says, “it will be a long, slow climb from the current trough.”

Revising NAHB’s outlook from six months ago, Seiders expects the downturn to hit bottom by year’s end with total housing starts of 1.42 million, 9 percent below his earlier forecast. For 2008, NAHB projects only modest gains with 1.45 million housing starts.

Up and Down

“The dramatic downswing that started in 2005 is a correction to the equally dramatic upswing,” Seiders says, describing the current sales adjustment as “a unique event.” Prior corrections — such as those in 1991 and 2000 — were keyed to recessions and the overall economy. Recovery spurred by job and income gains was rapid compared to what we can expect from the current downturn, which might take until the next decade to fully reach trend, Seiders says.

Seiders acknowledges that current figures are well below NAHB projections at the end of 2006.

“The key is the unanticipated and sudden turmoil in the subprime mortgage sectors” as well as some problems in the Alt-A sector, Seiders says. Additionally, “the meltdown in the subprime sector resulted in higher lending standards which again placed more restraints on potential buyers.”

Borrowers Change Habits

Seiders says adjustment to the subprime problems continues to work through the system. The number of ARMs has shrunk significantly and fixed-rate loans are once again predominate.

Perhaps, he speculates, “the credit pendulum has swung back most of the way and we will be moving forward with solid fixed-rate loans as the primary foundation for housing,” he says.

Other indications that there might be light at the end of the tunnel include, according to Seiders, reports from some of the largest builders of a stabilization in the number of cancellations and some recovery in the net number of sales.

— By Camilla McLaughlin for REALTOR® Magazine Online

Pros and Cons of Living by Water
While demand never seems to disappear for waterfront property, the slowing real estate market has presented some great deals by lakes and oceans.

“The desire to look out your window and see water will always be there and will always be an added incentive for someone to purchase a home," says Richard Swerdlow, Miami-based chief executive of Condo.com, an online marketplace for buying and selling condos.

But there are drawbacks to living the waterfront life. Among them: premium property prices, high insurance rates (especially if you're near a flood zone), and costly maintenance because moist air corrodes pipes and eats away at paint. But there are just as many perks.

Tonja Demoff, author of the book Bubble Proof: Real Estate Strategies That Work in Any Market, offers these five reasons for considering coastal property.

• Ocean properties are in high demand and are often a great investment either for resale or rental income.
• Fewer mosquitoes and insects as the ocean breezes push the critters westward.
• Wonderful environment for children, away from the pollution of the city and a sedentary lifestyle.
• Great exercise potential for people of all ages, be it swimming or walking along the shore or coast.
• Ocean breezes make the hottest summer day feel cooler.

Source: Newsday, Laura Koss-Feder (08/03/2007)