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© 2010 CB Blog Estate
Darrin Friedman is an employee of NRT, LLC inc however, all comments made on this site are his opinions and his alone and not a reflection on the company.
10 Things Real Estate Agents should do RIGHT NOW
Very recently, I did an exercise with my agents. Basically it was this: what are you going to do to maximize the potential you have?
So here is my challenge to all of you out there so you can make the most of this market and exceed your own expectations.
Are you doing the following:
1. Time Management:
Developing superior time management skills focusing on profitable activity not busy work?
2. Coaching:
Actively participating in coaching with your manager, where you are staying accountable to what you have laid out in your business plan?
3. Prioritizing:
Prioritizing your schedule, either through “GTD” (getting things done) or a Franklin Covey type system?
4. Visualizing:
Visualizing the success you want to have and the end result. It’s not enough to just say that you want to do something – it’s finding the strength to see it and execute it.
5. Categorize Database:
Have you categorized your database into people most likely to refer you business? There is a reason Brian Buffinni is a gazzilionare! His methods work!
6. SHOW UP!!!
You are business owner. If the person who owns the cleaners you used never went to work would you use him?
7. Shut up amd learn:
Taking advantage of learning opportunities? You can always learn and the best of us are those who USE what we learn!
8. Using the resources your company offers:
There is a reason you chose the company you did. You are in business with them so, as their partner, they give you materials to increase your business. Use them.
9. Actively ask for referrals!
If you are “touching” 5 people a day, are you asking them for a referral? Those that are hugely successful right now are those who have created a sphere that is dedicated to making sure they bring you business. The problem is we sometimes forget to ask.
10. HAVE NO FEAR!!!
If you are afraid, you might as well quit and now and sell at Nordstrom. Fear is not an excuse. You control your destiny and success, so if you are holding yourself back with excuses STOP IT. get out there and make it happen!
Anyway, as always, if you need any guidance, I’m always available.
Happy spring market!!!!
Washington DC Market Statistics for February 2010
Someone somewhere said that supply rules everything. Boy, they weren’t kidding. In February the Washington D.C. Housing market was dictated by the fact that the inventory is slim pickings and the well priced home moves fast. In fact, if you were to look at 2007 numbers of inventory, this last month comes very close in comparison.
Just take a look at this graph of inventory levels below:
It’s pretty obvious by the graph that the Seller is able to be a tad more aggressive in pricing considering that compared to the market last year (or even 6 months ago) there are 2/3 less homes in the marketplace. And in my office in particular that is translating in a huge spike in sales, with newly ratified deals going through the roof at a much higher price.
In the real estate market of Washington D.C proper …
… there were -30% less listings on the market while we had 23.7% more contracts. What does this mean? More money for seller in Washington D.C.
Condo and Coop – Washington. D.C.
In terms of pricing indicators we are seeing something consistent. If a home is priced between $200,000-600,000 there are plenty of buyers for that marketplace.
When priced above that the buyer pool is less. See below:
Condo and Coop – Washington. D.C.
Anyway, if you need any more information, please do not hesitate to call me! I want you to consider me your resource.
Today my office launched a new program for it’s agents called Business Development Groups, or “Hot Groups”. These groups are aimed to help the agents in the group gain market share through a strategically focused effort that will hopefully enable our Agents to have a tremendous boost to their existing business.
The point of the exercise is that is will help the office and our associates really go after a specific geographical farm where no one agent, or company for that matter, controls the market share. Now that’s the business element of it. But the coolest part is the accountability side. Guess who the group members are accountable to? You guessed it; each other!
This morning, I have 8 agents who volunteered to be separated into 2 groups. And I am so proud of them for undertaking something that will be so different than anything else going on out there.
You are all innovators!
Congratulations to:
Mandy Hursen, Richard Dubeshter, Charles Angelo, Chris Suranna, Tim Woody, Janet Rushford, Ellie Shorb, and Lise Howe.
Way to go all of you.
The following is written by Paragon Title’s Dick Fritz. He is very good at what he does and he sent this out to me today so I could share it with my agents. I pass it along to you…
We have just been informed by the Montgomery County Transfer Office that they have decided to change their method of calculating transfer and recordation taxes on certain short sale transactions. This does not apply to all short sale transactions — only to those transactions in which the seller is lucky enough to get their lender to agree to waive the deficiency and let them walk away from the property without owing anything. For those situations where the lender does not waive the deficiency and is going to pursue the seller after settlement for the balance of money owed, it is business as usual and the transfer and recordation taxes will be calculated on the sales price in the contract. What is the same and what is different is summarized below:
SCENARIO 1: Short Sale — Seller’s lender is NOT waiving the deficiency and will pursue Seller after settlement for balance owed on the loan
RESULT 1: NO CHANGE — Transfer and Recordation Taxes are calculated on the contract sales price
SCENARIO 2: Short Sale — Seller’s Lender IS waiving the deficiency and Seller will owe nothing after settlement — loan is marked as paid for less than owed
RESULT 2: NEW CALCULATION — Transfer and Recordation Taxes are calculated on the contract sales price PLUS the difference between the contract sales price and the balance the seller owes on his loan
Consider the following examples:
EXAMPLE 1:
Contract Sales Price: $200,000.00
Balance owed on Loan: $300,000.00 ($100,000.00 deficiency)
Seller’s Lender Action: Lender will pursue the Seller for the $100,000.00 owed after settlement
Transfer Taxes: Calculated on Contract Sales Price of $200,000.00; the $100,000.00 deficiency is not taxable because it is not waived
EXAMPLE 2:
Contract Sales Price: $200,000.00
Balance owed on Loan: $300,000.00 ($100,000.00 deficiency)
Seller’s Lender Action: Lender will waive the deficiency; Seller owes nothing after settlement
Transfer Taxes: Calculated on Contract Sales Price of $200,000.00 PLUS deficiency of $100,000.00 = Transfer Taxes due on $300,000.00
EXAMPLE 3:
Contract Sales Price: $200,000.00
Balance owed on Loan: $225,000.00 on first loan ($25,000.00 deficiency) and $75,000.00 on second loan ($75,000.00 deficiency)
Seller’s Lender Action: First Lender will waive deficiency on first loan; Second Lender will pursue Seller for the $75,000.00 on second loan
Transfer Taxes: Calculated on Contract Sales Price of $200,000.00 PLUS the $25,000.00 waived on First Loan = Transfer Taxes due on $225,000.00; the $75,000.00 deficiency on the Second Loan is not taxable because the Second Lender will go after the Seller for the $75,000.00 after settlement.
Obviously this has great significance when putting together sales contracts and negotiating short sales. We make the following recommendations:
1. From the Buyer’s and Selling Agent’s Perspective — Negotiating the Sales Contract
Clearly, the Buyer is entering the transaction expecting to pay transfer taxes on the sales price stated in the sales contract. The Buyer is not expecting the amount of transfer taxes that the Buyer is going to be paying to be dependent on something the Buyer has no control over — whether or not the Seller is successful in negotiating with the short sale lender to waive any deficiency due under the loan. However, the language in the Sales Contract does not deal with this situation. It has the Buyer and Seller negotiating on how to pay whatever transfer taxes are charged by the government in order to record the Deed, but does NOT limit it to only those transfer taxes charged on the contract sales price. Therefore, if the transaction is a short sale and the Buyer wishes to limit his liability to only those transfer taxes that are calculated on the Contract Sales Price, we suggest the following language be added to the Sales Contract:
Buyer shall be obligated to pay Buyer’s portion of the transfer and recordation taxes for recording the Deed based on the Contract Sales Price. Any transfer and recordation taxes charged by the government to record the Deed on an amount in excess of the Contract Sales Price shall be paid by Seller.
2. From the Buyer and Selling Agent’s Perspective — Applying for a New Loan
Under the new RESPA Rule, the Buyer’s Lender must provide the Buyer with a Good Faith Estimate (GFE). Under the new RESPA Rule, there are certain items on the GFE that fall into the category that they cannot be higher at settlement than listed on the GFE. Amongst the items in this category are TRANSFER TAXES. So, if the Buyer’s Lender gives them a GFE calculating the transfer taxes based upon the contract sales price and at settlement they are higher (based upon the contract sales price PLUS the deficiency), the lender has two choices: (A) pay the difference to the buyer (they certainly aren’t going to want to do that); or (B) state that there are changed circumstances (in this case the Seller’s short sale lender waiving the deficiency — which would be correct), delaying settlement, and issuing a new GFE showing the higher transfer taxes.
If, under the provisions of the sales contract, the Buyer might end up paying any portion of the transfer taxes calculated on a waived deficiency, then alert the Lender to this possibility in advance so that transfer taxes can be listed on the GFE at the higher number. Then, if the transfer taxes are lower at settlement, settlement can still proceed without a delay (it is always permissible for the Buyer’s costs to go down without having to issue a new GFE and delay settlement).
3. From the Seller’s and Listing Agent’s Perspective — Negotiating the Sales Contract and Getting the Short Sale Approved
Nothing spoils a short sale settlement faster than the short sale lender approving one set of numbers (in this case transfer taxes based upon the Contract Sales Price) and those numbers changing at the time of settlement (adding transfer taxes based upon the deficiency). This can quickly turn an approved short sale into an unapproved short sale. Bad for the seller, bad for the buyer, and now no sales commissions after all that work. Or even worse — someone else has to come up with the extra money. If the seller can’t, and the buyer won’t, then we all know where all eyes turn and this is also bad. How to protect against this:
A. MAKE SURE THE SELLING AGENT UNDERSTANDS TRANSFER TAXES MIGHT BE CALCULATED ON A NUMBER HIGHER THAN THE SALES PRICE AND NEGOTIATE IN THE SALES CONTRACT HOW THE EXTRA TAXES ARE TO BE PAID. Don’t just assume they know. If you do, you are opening yourself up to an argument later on as to who has to pay the extra money.
B. When having settlement statements prepared to send to the short sale lender for approval, have the transfer taxes calculated on the highest possible number (the principal balance the seller owes on the loan(s) rather than the contract sales price), and have the transfer taxes divided up between the Buyer and Seller on the HUD1 as you negotiated them in 2.A. above. If the short sale lender approves a HUD1 with higher transfer taxes and the lender getting less money, and it turns out at settlement that the transfer taxes are lower and the short sale lender gets more money, the lender will approve the HUD1 and it can settle.
C. IF THE LENDER IS GOING TO PURSUE THE SELLER FOR THE DEFICIENCY AFTER SETTLEMENT, MAKE SURE THE SHORT SALE APPROVAL LETTER SAYS THE LENDER IS GOING TO DO THIS. Montgomery County has indicated that they are going to PRESUME that the deficiency is waived (and is thus taxable) UNLESS written evidence is presented to them that the deficiency is not waived. Thus, if the short sale lender is going to go after the Seller for the balance of the money after settlement, make sure the short sale approval letter says they are going to do this. Otherwise, Montgomery County will tax the extra amount.
This is just a short (or maybe not so short) discussion of this issue. We will also address this at various sales meetings, but since Montgomery County made their official pronouncement today in the form of a bulletin, we thought it important that all of you be notified immediately.
HUD has amended several regulations as part of the Real Estate Settlement and Procedure Act (RESPA). Essentially, HUD is requiring more timely and effective disclosures related to mortgage settlement costs. The changes are designed to protect consumers from unnecessarily high settlement costs and to make it easier for consumers to compare loans.
On January 1, 2010, all lenders are required to use a new standardized Good Faith Estimate (GFE) form for all loan applications. Additionally, closing agents must use a new HUD-1 Settlement Statement when the new GFE is used.
As these revisions impact the way your buyers proceed through the home loan process, it is important that you be aware of the changes. Fortunately, our partners at Coldwell Banker Home Loans are fully committed to providing you with the information you need to be fully informed in this transition. They are well versed in all elements of the new GFE and HUD-1 Settlement Statement and are fully prepared to answer your questions and lead you through the transition.
Property Sales
December Property sales were 463, up 3.8% from 446 in December of 2008 and -27.8% lower than the 641 sales last month. December 2009 sales were at a mid level compared to December of 2008 and 2007. December YTD sales of 6,247 are running 13.8% ahead of last year’s year-to-date sales of 5,488.
Prices
The Median Sales Price in December was $405,000, up 16.0% from $349,000 in December of 2008 and up 15.4% from $351,000 last month. The Average Sales Price in December was $517,769, up 16.5% from $444,434 in December of 2008 and up 11.2% from $465,606 last month. December 2009 ASP was at a mid range compared to December of 2008 and 2007.
Inventory & MSI
The Total Inventory of Properties available for sale as of December was 2,327, down -10.8% from 2,608 last month and down -29.4% from 3,296 in December of last year. December 2009 Inventory was at its lowest level compared with December of 2008 and 2007.
A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for buyers. The December 2009 MSI of 5.0 months was at its lowest level compared with December of 2008 and 2007.
Selling Price vs Original Listing Price
The Selling Price vs Original Listing Price reveals the average amount that Sellers are agreeing to come down from their original list price. The lower the ratio is below 100% the more of a Buyer’s market exists, a ratio 93% at or above 100% indicates more of a Seller’s market. The December 2009 Selling Price vs Original List Price of 93.3% was down from 93.8% last month and equal to 93.3% in December of last year.
Like I mentioned in the last blog…the cool thing about being a part of a company like mine, is that there are people associated with it who have experiences I, and others, do not have. They help enrich the rest of us, and through their knowledge and success, make the rest of us better. Jane Fairweather is one of these people. She is one of Coldwell Banker’s nationally recognized premier agents and last month she shared some of her thoughts and tips with those associated in our in our local Washington DC Coldwell Banker company. She has given me permission to share them with you. This lesson is based on how listings drive business.
I hope you find this as useful as I do…
So, here is the lesson…regardless of what market you are in, regardless of geographical consideration (or any other issue may have devised for yourself) listings drive your business. If you can learn how to effectively market yourself as such and create a listing inventory for yourself then there is no limit on what you can do.
To find out more on how to do this please feel free to contact me anytime.
The cool thing about being a part of a company like mine, is that there are people associated with it who have experiences I, and others, do not have. They help enrich the rest of us, and through their knowledge and success, make the rest of us better. Jane Fairweather is one of these people. She is one of Coldwell Banker’s nationally recognized premier agents and last month she shared some of her thoughts and tips with those associated in our in our local Washington DC Coldwell Banker company.
She has given me permission to share them with you.
I hope you find this as useful as I do…
How many times have you heard someone say that are doing the best they can but that because of the economy or the month of year, their results had fallen short. The truth is that part of life is falling short of what we hope for – it’s part of human nature. In many cases, what drives us all is how we bounce back from the failures of our past; after all, it is how we learn. Excuses however, are never going to help anyone, and I believe strongly that there is nothing more debilitating than “E” word. Having said that, I wanted to take this time to share with you some inspired performers, who could have made excuses and never did, and performed above and beyond regardless of market, statistics or plain excuses. These people represent some of the best of what we do…I hope you can learn from them as I have.
Sherman McDaniel:
As an agent in my office, Sherman is someone I have gotten to know very well over the last three years. She has always been a top producer and an amazing talent in regards to how she takes care of her clients and takes care of people even when they are years away from a purchase. But in 2009 Sherman’s world was rocked by circumstances beyond the best of us can handle. You see, Sherman’s grown daughter is a cancer survivor, and the cancer has returned. It is relentless and terrifying for her and her family. Now Sherman isn’t the first to have to deal with family tragedy and illness. But it is remarkable to me that in 2009 she had more transactions than she did in 2008 (and oh, by the way, she was my office’s agent of the year in 2008). The fact is Sherman McDaniel performed professionally in a way that exceeded her own expectations because what drives her is not excuses but perseverance. And it is that spirit that makes her story special.
My RE BarCamp Peeps:
Nothing more profoundly impacted my business in 2009 then that of the phenomenon of RE BarCamp. I have now been to five of them and I have become a serious addict. I have become so because the people I meet at these things inspire me to the best at what I do the way they are the best at what they do! Here a couple of examples:
Jeff Turner: I have told Jeff before that I think he is the smartest person I have ever met. I have joked it’s because he has made the whole shaved head thing work so well. The fact is my introduction to Barcamp was a breakfast where I sat at a table with several people and Jeff was leading a discussion on Social Media and the Real Estate Industry. Now, I do not remember a single thing he said that day. All I remember is I was blown away. And for the record…I’m never blown away! REgardless of market conditions, or excuses, it is people like Jeff Turner who have a created opportunity for us all by creating and innovating ways of how we do what we do. Thank you Jeff! You inspire me.
Jeff Corbett: Another smartie pants! Jeff is a quiet guy but who has so much to share and when I listen to him I always come away with learning something I didn’t know before. His understanding of both social networking his foundation of how traditional business is run makes him a very legitimate resource in the industry. Good timing since he just started a consulting business 
http://www.facebook.com/respres
Ines Hegedus-Garcia: Ines was at Breakfast that morning with Jeff Turner. She is an absolute goddess of marketing genius and I am always blown away about how she uses social media to help her clients and build a business. @Ines is my marketing social media maharaja and I am proud to be her padawan.
Kim Woods: If there were an award for the sweetest, most accepting, Real Estate queen who uses online whuffie to propel others before anyone else, then Kim would be so crowned. I just plain love Kim Wood. She is everything our industry should be about and so seldom can be. The fact fact is she is special and it amazes me that without Barcamps I never would have met her. And the fact she is the ultimate NO EXCUSES person in the history of the world puts her on list easily.
Derek Massey: There are few people I have met in business that I have liked more than Derek. I say this as a disclaimer. He’s just a great guy. I mean seriously, you just want to squeeze him and say ya’ love him. But the fact is he is one of the smartest people I know. Everything I learned this year in regards to how to propel my business through social media is through him. He introduced me to barcamps…he introduced me to Twitter in a way that finally makes sense…he introduced me to people nationally that I never would have met that have helped open a world to me that I thought I already knew but didn’t. The fact is, my 2009 growth is due greatly to Derek. In 2010, I hope you all find someone like him.
http://posterous.com/people/kemjIBBW5b
What we can learn…
What it all comes down to is this, 2010 is what you make it…surround yourself with amazing people, who you can learn from and this year will be the kind of year that will make excuses irrelevant. Why? Because the most successful of us never use them!
In Washington D.C. proper, the housing market continued to indicate what the tea leaves have been telling us, inventory is down, contracts and sales numbers are up and the end of 2009 is finishing on solid footing.
In November 2008 there were a total of 1809 active listings in the Washington D.C. single family home market. In 2009 there are 1381 for a 23.7% difference! New listings reflected the same kind of trend…there were 388 NEW listings this November compared to 458 last November. What’s all this mean? SUPPLY IS DOWN! Which as we all learned in the 7th grade social studies is a good thing for economic growth.
That’s not the only indicator the statistics are continuing to show us that the Washington D.C. housing market is finishing the year strong…of the new contracts ratified this November, there was a dramatic improvement of 41.9%!!! That’s right – sales increased from 229 last November to 325 this November! Look Below…
In terms of price ranges, the houses that are moving seem to be reflective of common sense, where the more affordable housing is the largest segment of the overall market.
But, perhaps, there is no more dramatic a number in all the statistics than those reflected in the settlements category! In 2008 only 172 single family homes closed. Now this is the same time that caused the world to shutter, but numbers are numbers. In November 2009 309 single family homes settled. That is an improvement of 79.7%.
In any event, the indicators based on these statistics look like the single family home market in Washington D.C. is recovering well for and heading us into the new year.
Blogs soon to come:
November 2009 Washington DC Housing Statistics – Condo/Coops
November 2009 Montgomery County MD Housing Statistics – Single Family Homes
November 2009 Montgomery County MD Housing Statistics – Condo/Coops
Data Source: Metropolitan Regional Information Systems, Inc. (MRIS)
Statistical Graphics: Greater Capital Association of Realtors
