Wednesday, November 18, 2009
Tax Credit Extension is Approved!
Here is everything you need to know about the $8000 & $6500 Tax Credits Now Available: http://www.edina-realestate.com/Nav.aspx/Page=Http://www.edinarealty.com%2fContent%2fContent.aspx%3fContentID%3d522920
Thursday, November 5, 2009
Extension Passed For 1st Time Buyers
Here is a nice comparison between the old & new tax credit:
http://www.realtor.org/fedistrk.nsf/files/government_affairs_tax_credit_ext_chart_110409.pdf/$FILE/government_affairs_tax_credit_ext_chart_110409.pdf
http://www.realtor.org/fedistrk.nsf/files/government_affairs_tax_credit_ext_chart_110409.pdf/$FILE/government_affairs_tax_credit_ext_chart_110409.pdf
Saturday, October 31, 2009
Update- Tax Credit For First Time Home Buyers
There has been some encouraging news on the extension of the $8000 tax credit… however, it is NOT a done deal, as it still must be reconciled between the House and Senate and then voted on for final approval.
It is not only looking good for the extension, but there are some additional enhancements to the credit in the works as well. Yesterday, the Senate reached an agreement to extend the $8000 tax credit for first-time home buyers. They also added a $6,500 tax credit for other primary home purchasers, meaning that it is not just limited to first time home buyers.
They also raised the qualifying income limits in a very meaningful way – singles were increased from $75,000 to $125,000, and joint taxpayers from $150,000 to $250,000. Buyers must have executed purchase agreements in hand by April 30th, and then will have until June 30th to close.
More details are likely to come, and changes could be made as reconciliation and voting takes place.
I will keep you posted, but if you have any immediate questions, please feel free to contact me.
It is not only looking good for the extension, but there are some additional enhancements to the credit in the works as well. Yesterday, the Senate reached an agreement to extend the $8000 tax credit for first-time home buyers. They also added a $6,500 tax credit for other primary home purchasers, meaning that it is not just limited to first time home buyers.
They also raised the qualifying income limits in a very meaningful way – singles were increased from $75,000 to $125,000, and joint taxpayers from $150,000 to $250,000. Buyers must have executed purchase agreements in hand by April 30th, and then will have until June 30th to close.
More details are likely to come, and changes could be made as reconciliation and voting takes place.
I will keep you posted, but if you have any immediate questions, please feel free to contact me.
Wednesday, October 21, 2009
Seven New Rules For First Time Home Buyers
Very good information for first time buyers:
http://www.nytimes.com/2009/09/12/your-money/mortgages/12money.html?_r=1
http://www.nytimes.com/2009/09/12/your-money/mortgages/12money.html?_r=1
Friday, October 9, 2009
October 2009 Real Estate Outlook
October Housing Supply Outlook
The October Housing Supply Outlook just hit your intertubenetz. As usual, here's some quick takeaways from this dense and detailed look at supply-demand dynamics in the Twin Cities housing market:
Takeaway #1: If you're buying a home in the price range below $120,000, you're gonna have to move fast. There's only 2.9 months of supply in that range, which places it in the extreme seller's market category. The reason for the tight inventory picture? There's been a huge upsurge in home buying activity—sales are up 127.5 percent in that category over the last twelve months.
Takeaway #2: The number of new construction properties available for sale continues to shrink rapidly as builders pull back from creating new inventory. The current inventory of 2,426 listed new construction properties in the MLS system represents a drop of over 1,200 units from a year ago.
Takeaway #3: Unfortunately for builders, new construction home sales have also rapidly declined, falling by 18.8 percent (over 800 units) in the last twelve months.
The October Housing Supply Outlook just hit your intertubenetz. As usual, here's some quick takeaways from this dense and detailed look at supply-demand dynamics in the Twin Cities housing market:
Takeaway #1: If you're buying a home in the price range below $120,000, you're gonna have to move fast. There's only 2.9 months of supply in that range, which places it in the extreme seller's market category. The reason for the tight inventory picture? There's been a huge upsurge in home buying activity—sales are up 127.5 percent in that category over the last twelve months.
Takeaway #2: The number of new construction properties available for sale continues to shrink rapidly as builders pull back from creating new inventory. The current inventory of 2,426 listed new construction properties in the MLS system represents a drop of over 1,200 units from a year ago.
Takeaway #3: Unfortunately for builders, new construction home sales have also rapidly declined, falling by 18.8 percent (over 800 units) in the last twelve months.
Tuesday, October 6, 2009
Crunch Time for First Time Buyers
The rush is on for first time buyers trying to get into a house and get the $8000 tax credit. Check this out:
http://www.startribune.com/lifestyle/homegarden/63358102.html?elr=KArksUUUoDEy3LGDiO7aiU
http://www.startribune.com/lifestyle/homegarden/63358102.html?elr=KArksUUUoDEy3LGDiO7aiU
Saturday, September 26, 2009
Get The Skinny on the Twin Cities Real Estate Market
Here is The Skinny on the Twin Cities Real Estate Market for September:
http://www.youtube.com/watch?v=DVmF9otaRbg
http://www.youtube.com/watch?v=DVmF9otaRbg
Thursday, September 10, 2009
Twin Cities' Real Estate Market Looking Optimistic
Median Twin Cities Home Prices Crawling Back Up
The median home sale price in the Twin Cities was $175,000 in August, down 12.5 percent from a year ago, but continuing its run up from this spring.
From March 2009 through August, the median sale price has grown from $154,125 to $175,000. It climbed $4,000 from last month, when it was reported at $171,000.
“Prices are stabilizing due to strong buyer demand – especially in the lower price ranges – buoyed by low mortgage rates and the federal tax credit for first time buyers,” the Minneapolis Area Association of REALTORS (MAAR) said in a press statement.
The tax credit expires in November and the number of sales that close should stay robust for at least the next two months, said Brad Fisher, president elect of MAAR, in a statement.
“Time will tell what the market looks like after that, but there will be less inventory left.”
The median home sale price in the Twin Cities was $175,000 in August, down 12.5 percent from a year ago, but continuing its run up from this spring.
From March 2009 through August, the median sale price has grown from $154,125 to $175,000. It climbed $4,000 from last month, when it was reported at $171,000.
“Prices are stabilizing due to strong buyer demand – especially in the lower price ranges – buoyed by low mortgage rates and the federal tax credit for first time buyers,” the Minneapolis Area Association of REALTORS (MAAR) said in a press statement.
The tax credit expires in November and the number of sales that close should stay robust for at least the next two months, said Brad Fisher, president elect of MAAR, in a statement.
“Time will tell what the market looks like after that, but there will be less inventory left.”
Wednesday, September 9, 2009
Minneapolis is on Forbes list of best places to live.
Best U.S. Cities To Earn A LivingFrancesca Levy, 09.03.09, 06:00 PM EDT
Forget New York and L.A. The best career prospects are in these places.
Best U.S. Cities To Earn A Living
For the exasperated job-seeker to whom employment opportunities seem bleaker than ever, salvation may lie in the Lone Star State. Texas, home to dozens of energy heavyweights and nearly as many innovative small companies, has three of the best cities to earn a living: Dallas, Houston and Austin.
When taking into account the cost of living, strength of industry, economists' predictions for the future state of employment and, of course, salary, these are some of the best U.S. cities in which to take home a paycheck.
In Depth: Best U.S. Cities To Earn A Living
It's no secret that, in general, jobs are tight: The U.S. Bureau of Labor Statistics reported on Aug. 7 that non-farm payroll employment sank further in July, and unemployment is entrenched at 9.4%. But some job markets manage to remain healthier due to one or more factors, like a concentration of top companies a resulting prospective annual jump in job growth. Such is the case for the Texas towns on our list.
And then there's Minneapolis-St. Paul. Cold weather, yes. Dismal employment landscape, no. The reason is that the area is home to 10 of Forbes' top-ranked companies--and comes out third on this list.
While employees everywhere are anxious about their jobs, they have less to worry about in cities with clusters of businesses in high-paying or growth industries, and there just so happens to be a relatively low cost of living as well. It all adds up to people earning a better living.
Forget New York and L.A. The best career prospects are in these places.
Best U.S. Cities To Earn A Living
For the exasperated job-seeker to whom employment opportunities seem bleaker than ever, salvation may lie in the Lone Star State. Texas, home to dozens of energy heavyweights and nearly as many innovative small companies, has three of the best cities to earn a living: Dallas, Houston and Austin.
When taking into account the cost of living, strength of industry, economists' predictions for the future state of employment and, of course, salary, these are some of the best U.S. cities in which to take home a paycheck.
In Depth: Best U.S. Cities To Earn A Living
It's no secret that, in general, jobs are tight: The U.S. Bureau of Labor Statistics reported on Aug. 7 that non-farm payroll employment sank further in July, and unemployment is entrenched at 9.4%. But some job markets manage to remain healthier due to one or more factors, like a concentration of top companies a resulting prospective annual jump in job growth. Such is the case for the Texas towns on our list.
And then there's Minneapolis-St. Paul. Cold weather, yes. Dismal employment landscape, no. The reason is that the area is home to 10 of Forbes' top-ranked companies--and comes out third on this list.
While employees everywhere are anxious about their jobs, they have less to worry about in cities with clusters of businesses in high-paying or growth industries, and there just so happens to be a relatively low cost of living as well. It all adds up to people earning a better living.
Monday, August 31, 2009
Home Valuation Code of Conduct (HVCC)
The Home Valuation Code of Conduct (HVCC) establishes standards for solicitation, selection, compensation, conflicts of interest and appraiser independence. It is effective May 1, 2009, for any mortgage that will be sold to Fannie Mae or Freddie Mac; Federal Housing Administration (FHA) and Federal Home Loan Bank (FHLB) mortgages are not covered in the agreement.
How HVCC Affects the Appraisal Process
REALTORS® and mortgage brokers are prohibited from selecting appraisers. Lenders are may use “in house” staff appraisers to conduct appraisals. However, the loan production staff is prohibited from:
How HVCC Affects the Appraisal Process
REALTORS® and mortgage brokers are prohibited from selecting appraisers. Lenders are may use “in house” staff appraisers to conduct appraisals. However, the loan production staff is prohibited from:
- selecting, retaining, recommending, or influencing the selection of an appraiser; and,
- conducting any substantive conversation with an appraiser or appraisal management company regarding the appraisal assignment.
For the consumer, the appraisal process has remained largely intact. However, consumers may find the process takes longer than and may be more costly than it has been in the past.
For More Information
President's Podcast: Legislative Update on HVCC
NAR's HVCC Myths and Facts Flyer
Complete Home Valuation Code of Conduct
Or contact me at:
Thursday, August 20, 2009
Live Young! Live Long!
About LifeVantage
Lifevantage Corporation is a publicly traded health products company based in San Diego, CA. Their vision is to be a leader in science-based health and wellness products. LifeVantage manufactures, markets, and distributes a patented dietary supplement, Protandim®, which is a unique antioxidant therapy, shown to reduce oxidative stress in a human clinical study.
CLINICALLY PROVEN PRODUCT
LifeVantage’s Director of Science, Dr. Joe M. McCord, is one of the foremost authorities on the body’s antioxidant defense system and co-discovered the enzyme Superoxide Dismutase (SOD) in 1969.Protandim® triggers the cells in the human body to produce more of its own free radical-fighting antioxidant enzymes, SOD and Catalase (CAT). These enzymes effectively and efficiently neutralize free radicals inside the cells where free radicals are produced.Protandim® patented formula is a blend of high quality, herbal ingredients including:
Milk Thistle Extract (Silybum marianum)
Bacopa Extract (Bacopa monnieri)
Ashwagandha (Withania somnifera)
Green Tea Extract (Camilia sinesis)
Turmeric Extract (Curcuma Longa)
Herbal ingredients, sourced from around the world, are chosen for quality, purity and potency. Each herb undergoes a quality review process for potency, purity and identification prior to acceptance for production.About Protandim®Oxidative stress is a term you hear a lot these days. It refers to the imbalance between the production of highly reactive oxygen molucules, called free radicals, and the special antioxidant enzymes that neutralize the free radicals. This imbalance results in aging and health conditions. And as you age, this imbalance becomes even more significant as your body produces far more free radicals than antioxidant enzymes.True Science Anti-Aging CreamTrueScience anti-aging cream was formulated to fight your aging battles from the outside in. With cutting-edge science battling externally and the ingredients in Protandim proven to protect your cells internally, TrueScience is the complete anti-aging solution that gives your skin a beautiful, even tone, diminishes fine lines and wrinkles, and provides a vibrant, glowing appearance.
THE ANTIOXIDANT MYTH
Not all antioxidants are equal. Conventional or “consumable” antioxidants from food or vitamin-mineral supplements are used up on a one-to-one basis as each antioxidant neutralizes each free radical.We’ve been told that if we eat antioxidant-rich foods or consume vitamin pills, we’ll receive tremendous antioxidant rewards. But the fact is, scientific studies show that you can’t possibly ingest enough antioxidants to neutralize the free radicals your body produces every day. You would need to eat impossible amounts of foods rich in antioxidants (over 350 oranges, over 30 pounds of raspberries or 15 pounds of dark chocolate per day) to equal the antioxidant power you receive from one Protandim caplet daily.
For More Information
For more information contact me or got to:www.lifvantage.com
Make sure to watch the ABC Primetime Video
Lifevantage Corporation is a publicly traded health products company based in San Diego, CA. Their vision is to be a leader in science-based health and wellness products. LifeVantage manufactures, markets, and distributes a patented dietary supplement, Protandim®, which is a unique antioxidant therapy, shown to reduce oxidative stress in a human clinical study.
CLINICALLY PROVEN PRODUCT
LifeVantage’s Director of Science, Dr. Joe M. McCord, is one of the foremost authorities on the body’s antioxidant defense system and co-discovered the enzyme Superoxide Dismutase (SOD) in 1969.Protandim® triggers the cells in the human body to produce more of its own free radical-fighting antioxidant enzymes, SOD and Catalase (CAT). These enzymes effectively and efficiently neutralize free radicals inside the cells where free radicals are produced.Protandim® patented formula is a blend of high quality, herbal ingredients including:
Milk Thistle Extract (Silybum marianum)
Bacopa Extract (Bacopa monnieri)
Ashwagandha (Withania somnifera)
Green Tea Extract (Camilia sinesis)
Turmeric Extract (Curcuma Longa)
Herbal ingredients, sourced from around the world, are chosen for quality, purity and potency. Each herb undergoes a quality review process for potency, purity and identification prior to acceptance for production.About Protandim®Oxidative stress is a term you hear a lot these days. It refers to the imbalance between the production of highly reactive oxygen molucules, called free radicals, and the special antioxidant enzymes that neutralize the free radicals. This imbalance results in aging and health conditions. And as you age, this imbalance becomes even more significant as your body produces far more free radicals than antioxidant enzymes.True Science Anti-Aging CreamTrueScience anti-aging cream was formulated to fight your aging battles from the outside in. With cutting-edge science battling externally and the ingredients in Protandim proven to protect your cells internally, TrueScience is the complete anti-aging solution that gives your skin a beautiful, even tone, diminishes fine lines and wrinkles, and provides a vibrant, glowing appearance.
THE ANTIOXIDANT MYTH
Not all antioxidants are equal. Conventional or “consumable” antioxidants from food or vitamin-mineral supplements are used up on a one-to-one basis as each antioxidant neutralizes each free radical.We’ve been told that if we eat antioxidant-rich foods or consume vitamin pills, we’ll receive tremendous antioxidant rewards. But the fact is, scientific studies show that you can’t possibly ingest enough antioxidants to neutralize the free radicals your body produces every day. You would need to eat impossible amounts of foods rich in antioxidants (over 350 oranges, over 30 pounds of raspberries or 15 pounds of dark chocolate per day) to equal the antioxidant power you receive from one Protandim caplet daily.
For More Information
For more information contact me or got to:www.lifvantage.com
Make sure to watch the ABC Primetime Video
Tuesday, August 18, 2009
Twin Cities Real Estate Update
The Twin Cities housing market continues to regain a semblance of
balance in supply and demand. For the week ending August 8, there
were 1,802 new listings, down 9.5 percent from last year. There were
also 1,037 purchase agreements signed (pending sales), up 15.2
percent above last year. The total inventory of homes available for sale
is down 21.5 percent from a year ago.
The Housing Affordability Index (HAI) of 195 has begun to taper off
from its high of 219 earlier this year, yet the current HAI still represents
an increase of more than 30 percent from the boom years earlier this
decade. Months Supply of Inventory currently sits at 7.2—down 31.4
percent from last year's mark of 10.5.
All in all, the see-saw is moving back towards equilibrium. This doesn't
mean that everything is hunky-dory; sellers still face a challenging
market, especially in the higher price ranges. But the overall shift is
welcome news.
balance in supply and demand. For the week ending August 8, there
were 1,802 new listings, down 9.5 percent from last year. There were
also 1,037 purchase agreements signed (pending sales), up 15.2
percent above last year. The total inventory of homes available for sale
is down 21.5 percent from a year ago.
The Housing Affordability Index (HAI) of 195 has begun to taper off
from its high of 219 earlier this year, yet the current HAI still represents
an increase of more than 30 percent from the boom years earlier this
decade. Months Supply of Inventory currently sits at 7.2—down 31.4
percent from last year's mark of 10.5.
All in all, the see-saw is moving back towards equilibrium. This doesn't
mean that everything is hunky-dory; sellers still face a challenging
market, especially in the higher price ranges. But the overall shift is
welcome news.
Wednesday, July 15, 2009
Tuesday, July 7, 2009
Market Update
The 1,719 new listings for the week ending June 27 is 18.9 percent less than a year ago. The 26,043 total listings available is 21.3 percent less than last year. However, the 1,121 pending sales for this week excels last year by a giant 31 percent.
Additional metrics worth paying attention to this month:
Additional metrics worth paying attention to this month:
- Supply-Demand Ratio: 4.9
- homes per buyer; 32.6 percent below last year; lowest since 2005.
- Days on Market Until Sale: 140; seemingly high but crawling down to a pre-bubble level.
Monday, June 29, 2009
Where Housing is Headed
WHERE HOUSING IS HEADING
The 2009 State of the Nation's Housing Report from the Joint Center for Housing Studies of Harvard University concludes:
Housing affordability has been restored - driven by low interest rates and home-price declines.
Home sales are stabilizing & inventory balancing - driven by temporary first-time buyer tax credits and low interest rates.
Home prices will drop further - driven by the record numbers of foreclosures entering the market, the increasing number of vacant housing units for sale and rent will put more downward pressure on prices.
Homeownership has fallen - gains in homeownership rates gained during the boom have been erased, falling from 69% in '04 to 67.8% in '08.
Debt-to-income ratio is up - Even with rising affordability the number of households paying more than half their incomes for housing shot from 13.8M in '02 to 17.9M in '07.
The near term - demographic forces favor the rental over the for-sale market. Job losses, falling home prices and tight lending standards will keep housing demand "very low", according to the study.
Steven A. Wood, Chief Economist at Insight Economics, LLC says, "The most recent New Home Sales showed a dip in May and a downward revision in April. However, the inventory of home available for sale dropped by 2.3% to 292k. This is 35.5% below its year ago level and 49.0% below its July 2006 peak level. As a result, the Months' Supply fell to 10.2 from 10.4 in April and a record high of 12.4 in January." Wood continues, "...Home sales appear to have bottomed. Although the inventory of unsold homes is falling, there is still a large overhang of unsold homes given the current sales rate...While the new home market is very weak, the recent data suggests that a bottom maybe at hand. However, there is no evidence that a substantial recovery is in the offing."
The 2009 State of the Nation's Housing Report from the Joint Center for Housing Studies of Harvard University concludes:
Housing affordability has been restored - driven by low interest rates and home-price declines.
Home sales are stabilizing & inventory balancing - driven by temporary first-time buyer tax credits and low interest rates.
Home prices will drop further - driven by the record numbers of foreclosures entering the market, the increasing number of vacant housing units for sale and rent will put more downward pressure on prices.
Homeownership has fallen - gains in homeownership rates gained during the boom have been erased, falling from 69% in '04 to 67.8% in '08.
Debt-to-income ratio is up - Even with rising affordability the number of households paying more than half their incomes for housing shot from 13.8M in '02 to 17.9M in '07.
The near term - demographic forces favor the rental over the for-sale market. Job losses, falling home prices and tight lending standards will keep housing demand "very low", according to the study.
Steven A. Wood, Chief Economist at Insight Economics, LLC says, "The most recent New Home Sales showed a dip in May and a downward revision in April. However, the inventory of home available for sale dropped by 2.3% to 292k. This is 35.5% below its year ago level and 49.0% below its July 2006 peak level. As a result, the Months' Supply fell to 10.2 from 10.4 in April and a record high of 12.4 in January." Wood continues, "...Home sales appear to have bottomed. Although the inventory of unsold homes is falling, there is still a large overhang of unsold homes given the current sales rate...While the new home market is very weak, the recent data suggests that a bottom maybe at hand. However, there is no evidence that a substantial recovery is in the offing."
Wednesday, June 24, 2009
Top 10 Neogtiating Rules
Top 10 negotiating rules for Realtors
Perspective: Don't gloat, don't act hastily
BY RICH LEVIN, WEDNESDAY, JUNE 17, 2009.
Inman News
Editor's note: The following is a guest perspective by Rich Levin, a real estate coach and speaker.
Most agents have little or no specific training in negotiating, though it is a major component to an agent's success.
Negotiating is a skill like any other that is awkward at first and improves with practice. Some of these rules will take some time to implement effectively. Others you will be able to apply immediately. (Some of these rules refer to a situation in which you are presenting and negotiating directly versus through the other agent.)
Rule No. 1: Do not go back and forth between the buyer and seller more than twice or you make them crazy. At and after the third round, your chance of making the sale drops dramatically.
In the first round the buyer and seller are thinking about buying and selling the home.
In the second round the buyer and seller stop thinking about buying and selling the home and start thinking about the money.
At and after the third round they begin to resent each other. Both buyer and seller lose sight of the home and money. They begin to make it personal and focus on the other party.
Your buyers and sellers are not experienced negotiators. In fact, most have only experienced the often-negative negotiations when buying cars. So, they are predisposed to fear and discomfort in a negotiation. Others get caught up in the fight and just want to win no matter the cost or loss. Either way, these predispositions make it a lot harder for you. And you can avoid it if you shorten the negotiation.
Rule No. 2: Don't let the buyers and sellers come to dislike each other.
You take responsibility for what you convey to all parties. The most frequent reason buyers and sellers come to dislike each other is because the agent talks about one party to the other. So if you hear your client or yourself beginning to disparage the other client, intercede and suggest that whatever the reasons for the client's behavior might be, let's focus on putting together the sale and getting the move completed.
Rule No. 3: Stay focused on the goal of completing the sale.
Never let interruptions, the other party's emotions, emotional outburst, personality, position, or anything else distract you from the issues and the concessions that lead to completing the sale.
Stay calm. Listen. Empathize. Do not get involved in conversations about the party's personalities. Do not get emotionally hooked by the emotions of the client. Be a professional. Whether your clients know it or not, they want and need that kind of focused objectivity from you.
Rule No. 4: People believe what is in writing.
So, support your position in writing. If a comparative market analysis supports your position, prepare it. If certain comparables support your position, provide them. If a report supports your position, copy that portion and use it.
And most of all put your offer in writing. Don't negotiate verbally. I realize that it can work many times. I realize that some agents will insist on it and there is little you can do at those times. Please for your sake and for your client's sake make those times rare. Verbal negotiations are fraught with potential problems, misunderstandings, misinterpretations, omissions, as well as simple changing of minds. Put every step of the negotiation in writing.
Rule No. 5: When you give a concession, ask for something in return.
You may not get anything in return but asking dampens the motivation to ask for more. The seller wants another $3,000 in price and the buyer says, "If I accept that, I want the kitchen appliances." The seller says, "OK," and so the buyer says, "We have been thinking about it and we want the washer and dryer, too." The seller says, "OK."
So the buyer then asks for ... you get the idea. If the seller says "no" the first time, even if he or she ultimately ends up giving up the kitchen appliances to make the deal, asking for something in return dampens the buyer's motivation to ask for more.
Then, at the structural inspection or at the pre-closing inspection the earlier dampening of the buyer's motivation carries forward and dampens the buyer's motivation to ask for too much later.
Rule No. 6: Never take the first offer too quickly or easily.
It sends a message that may make your job more difficult later. When you have an offer accepted quickly, wait a few hours to call the buyer. Then, don't emphasize that it was easy.
On this same topic, don't tell the buyer they have bought the house or the seller they have sold the house just because they have an accepted offer ... because they haven't. The house isn't sold until there are attorneys' approvals, approved inspections, a mortgage commitment and all other contingencies are removed.
Instead of saying, "Congratulations, you got it," say, "Congratulations, you are on your way. We want to get the attorney's blessing, get through the structural inspection and get through the bank process. I don't expect any problems so I think you have a great home."
Rule No. 7: Never gloat.
I remember walking into a seller's house with a full-price offer, all cash, and only attorney's approval as a contingency. It had the closing date the seller wanted, no personal property. I was proud and pleased. This one was going to be easy.
So I strutted in with swagger and a smile. I said, "You guys are gonna love this offer."
Well, as you might expect, they questioned me and challenged me about everything from the legitimacy of my buyer to where their cash was coming from -- all because I didn't have the good sense and sensitivity to realize these people are moving their lives. I treated it like a game and they quickly reminded me of the offer's importance to them.
The next time I had the situation I talked about how hard I worked to get them as much of what they wanted as I could. I couldn't get it all but I hoped we were close enough to come to an agreement. They looked at the great offer and said, "Rich, you did great. We can accept this as it is." Lesson learned.
Rule No. 8: When you hit an impasse, settle everything else first and return to it.
As you present the offer to the seller and you reach an item they don't accept, make a note to come back to it and get agreement on everything else first. Then, once you are through the offer completely, you will have isolated all the items, if there is more than one, that requires negotiation. You will find that at that point the negotiation goes easier. There is nothing else on their mind and they know that this item or these items will complete the transaction. By doing this you create a momentum that carries you to success more easily.
Rule No. 9: Get the other party to negotiate with themselves. Never negotiate with yourself.
This is a more aggressive rule. Above, in Rule No. 4, I said to always get your negotiations in writing. This is the exception that proves the rule.
Watch. I am sitting with the seller reviewing an offer by the buyer's agent. The seller is willing to accept it and doesn't want to lose the buyer or the sale. I say to them, "Let's see what I can do without risking the sale."
I call the other agent and ask if the agent can reach their buyer. They say, "Yes." I tell them that the sellers are in the room and they are really close to accepting the offer. If we could get another $1,500 it's a done deal. Could they check with the buyers and see if they would move at all? And if they will, I want to get it wrapped up tonight while everyone is in agreement.
Ten minutes later the agent called to tell me they'll do it or they'll do $500 or $1,000 or nothing. A vast majority of the time I'll get more and make the seller very happy with me. If the buyers won't move I call the buyer's agent back in five minutes, tell them that their offer was accepted as is, and compliment them on their smart negotiation.
You may or may not approve of this methodology. I am not condoning or condemning it. I am just using it as an example of, "Get the other party to negotiate with themselves. Never negotiate with yourself.
Rule No. 10: Do not use these rules and approaches carelessly.
When these rules are applied or are done awkwardly or carelessly they cause your clients to distrust you. Be careful.
Done with care and confidence (and practice), you are going to have a lot more fun, be a lot more productive, preserve more time, and get the admiration and referrals from your clients because you will make them more comfortable in addition to getting them more money with your negotiating skills.
Perspective: Don't gloat, don't act hastily
BY RICH LEVIN, WEDNESDAY, JUNE 17, 2009.
Inman News
Editor's note: The following is a guest perspective by Rich Levin, a real estate coach and speaker.
Most agents have little or no specific training in negotiating, though it is a major component to an agent's success.
Negotiating is a skill like any other that is awkward at first and improves with practice. Some of these rules will take some time to implement effectively. Others you will be able to apply immediately. (Some of these rules refer to a situation in which you are presenting and negotiating directly versus through the other agent.)
Rule No. 1: Do not go back and forth between the buyer and seller more than twice or you make them crazy. At and after the third round, your chance of making the sale drops dramatically.
In the first round the buyer and seller are thinking about buying and selling the home.
In the second round the buyer and seller stop thinking about buying and selling the home and start thinking about the money.
At and after the third round they begin to resent each other. Both buyer and seller lose sight of the home and money. They begin to make it personal and focus on the other party.
Your buyers and sellers are not experienced negotiators. In fact, most have only experienced the often-negative negotiations when buying cars. So, they are predisposed to fear and discomfort in a negotiation. Others get caught up in the fight and just want to win no matter the cost or loss. Either way, these predispositions make it a lot harder for you. And you can avoid it if you shorten the negotiation.
Rule No. 2: Don't let the buyers and sellers come to dislike each other.
You take responsibility for what you convey to all parties. The most frequent reason buyers and sellers come to dislike each other is because the agent talks about one party to the other. So if you hear your client or yourself beginning to disparage the other client, intercede and suggest that whatever the reasons for the client's behavior might be, let's focus on putting together the sale and getting the move completed.
Rule No. 3: Stay focused on the goal of completing the sale.
Never let interruptions, the other party's emotions, emotional outburst, personality, position, or anything else distract you from the issues and the concessions that lead to completing the sale.
Stay calm. Listen. Empathize. Do not get involved in conversations about the party's personalities. Do not get emotionally hooked by the emotions of the client. Be a professional. Whether your clients know it or not, they want and need that kind of focused objectivity from you.
Rule No. 4: People believe what is in writing.
So, support your position in writing. If a comparative market analysis supports your position, prepare it. If certain comparables support your position, provide them. If a report supports your position, copy that portion and use it.
And most of all put your offer in writing. Don't negotiate verbally. I realize that it can work many times. I realize that some agents will insist on it and there is little you can do at those times. Please for your sake and for your client's sake make those times rare. Verbal negotiations are fraught with potential problems, misunderstandings, misinterpretations, omissions, as well as simple changing of minds. Put every step of the negotiation in writing.
Rule No. 5: When you give a concession, ask for something in return.
You may not get anything in return but asking dampens the motivation to ask for more. The seller wants another $3,000 in price and the buyer says, "If I accept that, I want the kitchen appliances." The seller says, "OK," and so the buyer says, "We have been thinking about it and we want the washer and dryer, too." The seller says, "OK."
So the buyer then asks for ... you get the idea. If the seller says "no" the first time, even if he or she ultimately ends up giving up the kitchen appliances to make the deal, asking for something in return dampens the buyer's motivation to ask for more.
Then, at the structural inspection or at the pre-closing inspection the earlier dampening of the buyer's motivation carries forward and dampens the buyer's motivation to ask for too much later.
Rule No. 6: Never take the first offer too quickly or easily.
It sends a message that may make your job more difficult later. When you have an offer accepted quickly, wait a few hours to call the buyer. Then, don't emphasize that it was easy.
On this same topic, don't tell the buyer they have bought the house or the seller they have sold the house just because they have an accepted offer ... because they haven't. The house isn't sold until there are attorneys' approvals, approved inspections, a mortgage commitment and all other contingencies are removed.
Instead of saying, "Congratulations, you got it," say, "Congratulations, you are on your way. We want to get the attorney's blessing, get through the structural inspection and get through the bank process. I don't expect any problems so I think you have a great home."
Rule No. 7: Never gloat.
I remember walking into a seller's house with a full-price offer, all cash, and only attorney's approval as a contingency. It had the closing date the seller wanted, no personal property. I was proud and pleased. This one was going to be easy.
So I strutted in with swagger and a smile. I said, "You guys are gonna love this offer."
Well, as you might expect, they questioned me and challenged me about everything from the legitimacy of my buyer to where their cash was coming from -- all because I didn't have the good sense and sensitivity to realize these people are moving their lives. I treated it like a game and they quickly reminded me of the offer's importance to them.
The next time I had the situation I talked about how hard I worked to get them as much of what they wanted as I could. I couldn't get it all but I hoped we were close enough to come to an agreement. They looked at the great offer and said, "Rich, you did great. We can accept this as it is." Lesson learned.
Rule No. 8: When you hit an impasse, settle everything else first and return to it.
As you present the offer to the seller and you reach an item they don't accept, make a note to come back to it and get agreement on everything else first. Then, once you are through the offer completely, you will have isolated all the items, if there is more than one, that requires negotiation. You will find that at that point the negotiation goes easier. There is nothing else on their mind and they know that this item or these items will complete the transaction. By doing this you create a momentum that carries you to success more easily.
Rule No. 9: Get the other party to negotiate with themselves. Never negotiate with yourself.
This is a more aggressive rule. Above, in Rule No. 4, I said to always get your negotiations in writing. This is the exception that proves the rule.
Watch. I am sitting with the seller reviewing an offer by the buyer's agent. The seller is willing to accept it and doesn't want to lose the buyer or the sale. I say to them, "Let's see what I can do without risking the sale."
I call the other agent and ask if the agent can reach their buyer. They say, "Yes." I tell them that the sellers are in the room and they are really close to accepting the offer. If we could get another $1,500 it's a done deal. Could they check with the buyers and see if they would move at all? And if they will, I want to get it wrapped up tonight while everyone is in agreement.
Ten minutes later the agent called to tell me they'll do it or they'll do $500 or $1,000 or nothing. A vast majority of the time I'll get more and make the seller very happy with me. If the buyers won't move I call the buyer's agent back in five minutes, tell them that their offer was accepted as is, and compliment them on their smart negotiation.
You may or may not approve of this methodology. I am not condoning or condemning it. I am just using it as an example of, "Get the other party to negotiate with themselves. Never negotiate with yourself.
Rule No. 10: Do not use these rules and approaches carelessly.
When these rules are applied or are done awkwardly or carelessly they cause your clients to distrust you. Be careful.
Done with care and confidence (and practice), you are going to have a lot more fun, be a lot more productive, preserve more time, and get the admiration and referrals from your clients because you will make them more comfortable in addition to getting them more money with your negotiating skills.
Wednesday, May 27, 2009
Get The Skinny on the Twin Cities Real Estate Market
Here is The Skinny on the Real Estate Market for the Twin Cities for the month of May:
http://www.youtube.com/watch?v=KXbOx925NbM
http://www.youtube.com/watch?v=KXbOx925NbM
Monday, May 18, 2009
I just became an Independent Distributor for an exciting new business opportunity. Watch this 5 minute video and ask me how you can get involved.http://www.youtube.com/watch?v=CdRVs8MRa8U
Wednesday, April 22, 2009
April 2009 Skinny Update
Click here and get the Skinny on the April 2009 Twin Cities Housing Market:
http://www.youtube.com/watch?v=eKGPtUsWvXo
http://www.youtube.com/watch?v=eKGPtUsWvXo
Dance Like Nobody's Watching
Weekly Market Activity Report
Hopeful signs of a Twin Cities housing market recovery carry on thanks to a combination of no growth in the spring supply of homes for sale and still-improving sales figures.
Helping to keep inventory down is slow new listing activity, a metric that has been sluggish all year. For the week ending April 11, there were 20.7 percent fewer new listings than there were during the same week in 2008. Pending sales are still trending in the opposite direction, up 21.9 percent in year-over-year numbers to 1,046 for the week. That's only the second week of 1,000-plus pending sales or more since May 2007. If these two metrics persist, the market could be in for some serious re-balancing.
With the Housing Affordability Index reaching 218—an increase of 40.8 percent over last year—it seems to be an awfully good time for buyers to get off the wall and on the dance floor...being mindful that 29.1 percent of the dance partners are lender-mediated.
Hopeful signs of a Twin Cities housing market recovery carry on thanks to a combination of no growth in the spring supply of homes for sale and still-improving sales figures.
Helping to keep inventory down is slow new listing activity, a metric that has been sluggish all year. For the week ending April 11, there were 20.7 percent fewer new listings than there were during the same week in 2008. Pending sales are still trending in the opposite direction, up 21.9 percent in year-over-year numbers to 1,046 for the week. That's only the second week of 1,000-plus pending sales or more since May 2007. If these two metrics persist, the market could be in for some serious re-balancing.
With the Housing Affordability Index reaching 218—an increase of 40.8 percent over last year—it seems to be an awfully good time for buyers to get off the wall and on the dance floor...being mindful that 29.1 percent of the dance partners are lender-mediated.
Sunday, April 5, 2009
There is a Silver Lining
For the week ending March 21, pending sales in the Twin Cities were 13.0 percent higher than the same week last year, while the number of new listings on the market was basically flat. Over the last three months, there have been approximately 1,200 more signed purchase agreements than there were a year ago and 3,000 fewer new listings. During this time, 58.1 percent of pending sales have been lender-mediated foreclosures and short sales, while 37.1 percent of new listings have been lender-mediated. The fact that the share of lender-mediated sales easily exceeds the share of new lender-mediated listings is a hopeful sign.
New buyers entering this market will be met with strong affordability but will have less to choose from compared to previous years. There are currently 26,064 homes for sale in the metro area, which is down 15.7 percent and 4,840 units from this time in 2008.
New buyers entering this market will be met with strong affordability but will have less to choose from compared to previous years. There are currently 26,064 homes for sale in the metro area, which is down 15.7 percent and 4,840 units from this time in 2008.
Thursday, March 12, 2009
Kiss The Blarney Stone
Weekly Market Activity Report
As we approach St. Patrick's Day, there's reason to take advantage of our Blarney Stone kisses and impart some eloquence (or "gift of gab" if you prefer). New listings continue to trail year-over-year numbers in our local housing market, coming in at 1,628 for the week ending February 28, which is 19.2 percent behind this week last year. Total active listings are roughly 5,000 below this time in 2008. In an oversupplied market, this is cause for celebration. Continued growth in home sales adds to the festive spirit, with pending sales showing a healthy 12.1 percent increase over the doldrumish numbers of last February.
There are several important monthly indicators to look at in this week's report. Days on Market Until Sale in February stood at 157 days, down 4.8 percent from last February. This is the third consecutive month of downward year-over-year movement. The Housing Affordability Index (HAI) continues its yearlong improvement with a March 2009 HAI of 206—31.2 percent ahead of its March 2008 mark of 157. Months Supply of Inventory is holding relatively steady at 7.8 months, down 15.2 percent from the mark of 9.2 months we saw a year ago.
According to John Tucillo, one of the foremost real estate economists in the U.S. and former Chief Economist for NAR, there are three necessary phases that must occur for the housing recovery to launch:
1) a decline in new listing activity
2) a decline in days on market
3) an increase in sale price to list price ratio
The first phase came about last summer and the second phase began in the fourth quarter of 2008. Hopefully the third phase will occur sometime this year. Strong affordability, improving chances for a housing recovery and a federal tax credit for first-time buyers equates to a welcome home-buying environment—a little Irish luck for real estate.
As we approach St. Patrick's Day, there's reason to take advantage of our Blarney Stone kisses and impart some eloquence (or "gift of gab" if you prefer). New listings continue to trail year-over-year numbers in our local housing market, coming in at 1,628 for the week ending February 28, which is 19.2 percent behind this week last year. Total active listings are roughly 5,000 below this time in 2008. In an oversupplied market, this is cause for celebration. Continued growth in home sales adds to the festive spirit, with pending sales showing a healthy 12.1 percent increase over the doldrumish numbers of last February.
There are several important monthly indicators to look at in this week's report. Days on Market Until Sale in February stood at 157 days, down 4.8 percent from last February. This is the third consecutive month of downward year-over-year movement. The Housing Affordability Index (HAI) continues its yearlong improvement with a March 2009 HAI of 206—31.2 percent ahead of its March 2008 mark of 157. Months Supply of Inventory is holding relatively steady at 7.8 months, down 15.2 percent from the mark of 9.2 months we saw a year ago.
According to John Tucillo, one of the foremost real estate economists in the U.S. and former Chief Economist for NAR, there are three necessary phases that must occur for the housing recovery to launch:
1) a decline in new listing activity
2) a decline in days on market
3) an increase in sale price to list price ratio
The first phase came about last summer and the second phase began in the fourth quarter of 2008. Hopefully the third phase will occur sometime this year. Strong affordability, improving chances for a housing recovery and a federal tax credit for first-time buyers equates to a welcome home-buying environment—a little Irish luck for real estate.
Monday, March 9, 2009
Where Is The Lone Ranger When We Need Him?
Did the stimulus package provide the "silver bullet" we were looking for to stimulate the real estate market? Well I think it will help but we needed more than a $8000 tax credit for first time buyers. The National Association of Realtors (NAR) estimates that the stimulus plan along with lower interest rates and other mortgage relief measures, could help trigger an additional 900,000 home sales in 2009. In 2008, the available tax credit for first time buyers was $7500 and had to be paid back over a 15 year period. The new $8000 credit is truly a credit and comes off your income tax with no re-payment provided you live in the home for more than three years.
With job losses mounting and more households feeling insecure about the future, sales growth will be held back. New listings in 2009 will be down compared to 2008 which will be a good thing. We should also see a decline in short sales and foreclosures in 2009. If foreclosures and short sales do begin to reach a price bottom this year, we can expect some month-to-month price stabilization in the overall market in the second half of the year.
There has been a lot of uncertainty in the housing market, but there is more cause for optimism heading into this year than there was last year. Mortgage rates have not been this low in decades. Financing is still available and with downpayments as low as 3.5 percent. Affordability is improved. Foreclosures are showing signs of reaching the downside of the peak. Home sales are finally on an upward trajectory. Inventory is in decline. This is all happening as we speak.
With job losses mounting and more households feeling insecure about the future, sales growth will be held back. New listings in 2009 will be down compared to 2008 which will be a good thing. We should also see a decline in short sales and foreclosures in 2009. If foreclosures and short sales do begin to reach a price bottom this year, we can expect some month-to-month price stabilization in the overall market in the second half of the year.
There has been a lot of uncertainty in the housing market, but there is more cause for optimism heading into this year than there was last year. Mortgage rates have not been this low in decades. Financing is still available and with downpayments as low as 3.5 percent. Affordability is improved. Foreclosures are showing signs of reaching the downside of the peak. Home sales are finally on an upward trajectory. Inventory is in decline. This is all happening as we speak.
Tuesday, February 10, 2009
Weekly Market Activity Report
Weekly Market Activity Report
For the week ending January 31, new listings continue at a lower level than seen last year, clocking in at 1,635—a 15.3 percent drop. Conversely, pending sales continue to raise sand with 673 recorded for this week's report—25 percent above last year. Basically, this is all welcome news. Having fewer listings on the market, combined with an increase in pending sales, helps to reduce the Months Supply of Inventory to 13.5 percent when compared to last year at this time—down from 8.9 to 7.7 months. This means it will take the current supply of houses for sale 7.7 months to sell (on average).The Percent of Original List Price Received at Sale continues to fall, with the January figure of 89.5 sitting at 1.6 percent less than 2008. It's important to consider sales prices of foreclosure homes and how they affect this figure.Our new Housing Affordability Index jumped to 202 in February. This is a new record and means that the median family income is 202 percent of what is necessary to qualify for the median-priced home. Again, we must consider how the sales prices in the lender-mediated market are affecting this figure, but we can say with some confidence that there are a number of very attractive buying opportunities in the local housing market. If we are able to maintain these trends, we'll be well on our way to killing the blues. And to this current market malaise, we'll be singing "gone, gone, gone (done moved on)."
For the week ending January 31, new listings continue at a lower level than seen last year, clocking in at 1,635—a 15.3 percent drop. Conversely, pending sales continue to raise sand with 673 recorded for this week's report—25 percent above last year. Basically, this is all welcome news. Having fewer listings on the market, combined with an increase in pending sales, helps to reduce the Months Supply of Inventory to 13.5 percent when compared to last year at this time—down from 8.9 to 7.7 months. This means it will take the current supply of houses for sale 7.7 months to sell (on average).The Percent of Original List Price Received at Sale continues to fall, with the January figure of 89.5 sitting at 1.6 percent less than 2008. It's important to consider sales prices of foreclosure homes and how they affect this figure.Our new Housing Affordability Index jumped to 202 in February. This is a new record and means that the median family income is 202 percent of what is necessary to qualify for the median-priced home. Again, we must consider how the sales prices in the lender-mediated market are affecting this figure, but we can say with some confidence that there are a number of very attractive buying opportunities in the local housing market. If we are able to maintain these trends, we'll be well on our way to killing the blues. And to this current market malaise, we'll be singing "gone, gone, gone (done moved on)."
Wednesday, January 28, 2009
The Good News Is That The Bad News Is Wrong!
We may be on the verge of and economic Pearl Harbor but there are some silver linings out there. Home prices are falling for the first time since The Great Depression. There is a decline in units and pricing for the first time ever. History never repeats itself it just mirrors the past. Housing is a great investment and Edina has out performed the market. Check out the article in the 1/24/09 edition of the Startribune:
http://www.startribune.com/homes/38151509.html?elr=KArksUUUU
http://www.startribune.com/homes/38151509.html?elr=KArksUUUU
Thursday, January 8, 2009
The temperature is dropping and so are the Interest Rates!
Interest rates are at historic lows. Pricing is down. Do we have a perfect storm for a great real estate market in 2009? Time will tell but in the mean time....It's a great time to buy or sell real estate. Warren Buffet once said "When the tide goes out, you will know who has been swimming naked." Don' t get caught and look back at this time and say " Darn I should of done it back then!" It will not stay this way forever. Here is a sampling of today's interest rates:
Edina Realty Mortgage
Conventional 30 Year Fixed 4.625% (4.771% APR)
FHA 30 Year Fixed 5.000% (5.150% APR)
VA 30 Year Zero Down 5.000% (5.201% APR)
15 Year Fixed 4.375% (4.628% APR)
Rates as of 1/8/09 11:12:00 AM
Interest rates are at historic lows. Pricing is down. Do we have a perfect storm for a great real estate market in 2009? Time will tell but in the mean time....It's a great time to buy or sell real estate. Warren Buffet once said "When the tide goes out, you will know who has been swimming naked." Don' t get caught and look back at this time and say " Darn I should of done it back then!" It will not stay this way forever. Here is a sampling of today's interest rates:
Edina Realty Mortgage
Conventional 30 Year Fixed 4.625% (4.771% APR)
FHA 30 Year Fixed 5.000% (5.150% APR)
VA 30 Year Zero Down 5.000% (5.201% APR)
15 Year Fixed 4.375% (4.628% APR)
Rates as of 1/8/09 11:12:00 AM
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