Agent, Appraiser: How Much Can We Talk?

Agent, Appraiser: How Much Can We Talk? Image courtesy of tungphoto / FreeDigitalPhotos.net

One big misunderstanding between real estate agents and appraisers centers on how, when, and what they can communicate about the valuation process, said panelists at a Valuation Forum on Saturday at the 2013 REALTORS® Conference & Expo.

While federal laws dictate those communications, appraisers and agents don’t have to be estranged during a transaction.

“There’s a window of opportunity when agents and appraisers can talk, but once the appraisal has been developed and sent to the client, that window is closed,” said Vic Knight, appraiser at Chapel Hill Appraisals in Raleigh, N.C.

Before that point, agents have an opportunity to provide appraisers with supporting information. For example, listing agents can be present for the appraisal and be on hand to clarify any items necessary, such as a remodeled kitchen. They can also provide an appraisal package upfront that includes the purchase contract and comparables that demonstrate how the listing agent arrived at the price.

Because of the number of off-MLS listings — or pocket listings — in many markets, agents may have valuable information that appraisers can’t find on the MLS, said John Anderson, a real estate agent with Twin Oaks Realty Inc. in Minneapolis. “Many appraisers are usually open to the information that agents bring within the appraisal package.”

Another issue: Although home prices are picking up in many markets, inventory shortages are limiting comparables, leading to appraisals lower than the contract price. Home owners may be able to appeal a valuation if they can prove that there are errors in the report, pertinent comparables are missing, or the appraiser lacks geographic competency, panelists said.

Source — M. Tracey, REALTOR® Magazine

3 Ways to Show Former Clients Your Appreciation

3 Ways to Show Former Clients Your Appreciation. Image courtesy of photostock / FreeDigitalPhotos.net

How are you going to differentiate yourself in 2014 to get more leads?

Here are three ideas from Victoria Gillespie with RE/MAX Realty Affiliates in Mount Airy, Md. Gillespie presented “Redefining Your Business Proposition” on Friday at the REALTORS® Conference & Expo.

1. Her first secret weapon is her little black book. Gillespie, who is also the national director of business development for REALTORS® Federal Credit Union, has put together a list of her favorite lenders, title companies, contractors, and local businesses into a marketing brochure booklet that she only passes out during high-end, high-touch situations. She also includes client testimonials and background about herself.
2. Twenty percent of Gillespie ‘s clients give her 80 percent of her referrals. So she leverages those people and focuses her marketing activity on them. For example, Gillespie sends a bimonthly newsletter to 150 of her best clients in which she provides home improvement tips, staging ideas, and local market information. She usually gets between five and seven e-mail responses, some complimenting her on the content, some just saying hello, and others offering referral leads.
3. Gillespie chooses closing gifts that her clients will frequently see and put to use in their home. One of her favorites is a high-end cutting board that she personalizes with something her clients are passionate about, such as music or fishing. And she refuses to skimp on quality: “If you’re going to spend the money, make sure it’s on a gift that will last,” she says.

—E. Christoffer, REALTOR® Magazine

Where to Find the Best Leads in Real Estate

Where to Find the Best Leads in Real Estate. Image courtesy of imagerymajestic / FreeDigitalPhotos.net

The most valuable leads for real estate professionals still come from traditional paths over online sources, according to the Imprev Thought Leader Survey of top real estate executives.

Traditional sources like open houses, past-client referrals, For Sale signs, and walk-ins to brokerage offices are more effective at generating new customer leads than relying on online sources, according to the survey.

About 97 percent of broker-owners and top executives at brokerage firms surveyed said traditional sources provide the most valuable leads. Sixty-three percent of those executives even called traditional sources provided “exceptional value” leads. On the other hand, less than 3 percent of executives ranked online lead-generation sources as “exceptional value.”

The survey also found the following top sources for leads:

• A firm’s own Web site: 84 percent of leaders said their brokerage or corporate Web site provides leads of “exceptional” or “reasonable” value
• Social media (Facebook, Twitter, and others): 51 percent called these leads “reasonable” value and 11 percent “exceptional” value.

But follow-up still remains problematic, the survey found. Only 10 percent of executives said that they’re “very satisfied” with overall lead follow-up by their real estate agents. Nearly 40 percent said they are “not at all satisfied” with lead follow-up, according to the survey.

Source: Imprev Inc. 

Home Interest Rates Move Higher for the First Time in Three Weeks

Rates Move Higher for the First Time in Three Weeks. Image courtesy of renjith krishnan / FreeDigitalPhotos.net

Mortgage rates reversed course this week, moving upwards for the first time in three weeks amid more positive economic data, Freddie Mac reports in its weekly mortgage market survey. Production in the manufacturing industry and non-manufacturing sector alike showed signs of expanding.

Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 7:

• 30-year fixed-rate mortgages: averaged 4.16 percent, with an average 0.8 point, rising from last week’s 4.10 percent average. Last year at this time, 30-year rates averaged 3.40 percent.
• 15-year fixed-rate mortgages: averaged 3.27 percent, with an average 0.7 point, rising from last week’s 3.20 percent average. A year ago, 15-year rates averaged 2.69 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 2.96 percent, with an average 0.5 point, holding the same average as last week. Last year at this time, 5 year ARMs averaged 2.73 percent.
• 1-year ARMs: averaged 2.61 percent, with an average 0.5 point, dropping from last week’s 2.64 percent average. A year ago, 1-year ARMs averaged 2.59 percent.

Source: Freddie Mac

More Sellers Having to Reduce List Prices

More Sellers Having to Reduce List Prices. Image courtesy of Stuart Miles / FreeDigitalPhotos.net

One in four home sellers are reporting they’ve had to lower their list price, according to a new report released by the real estate brokerage Redfin. That represents the highest level since 2011, according to the Redfin survey. It also represents a far greater number than in February, when just one in seven sellers reduced list prices.

More home buyers are showing a willingness to wait until the price is right, according to Redfin.

Price drops for homes were most prevalent in Atlanta, in which 42 percent of home sellers reported lowering their prices in September. Sacramento, Phoenix, San Diego, and Seattle also saw price reductions of more than 30 percent on homes for sale, according to Redfin.

On the other hand, the area that saw the fewest price drops was Long Island, N.Y. Raleigh, N.C., San Antonio, Houston, and Philadelphia also saw some of the fewest price drops.

Source: Redfin

9 Buzzwords Helping to Sell Homes

9 Buzzwords Helping to Sell Homes. Image courtesy of ddpavumba / FreeDigitalPhotos.net

Marble, big windows, and wine cellars are becoming popular words in listing ads to sell high-end homes, according to a new study by Trulia. The study defined luxury listings as those valued four times the median asking price in an area.

The following buzz words have grown in luxury listings the past two years:

• Marble bath: +78%
• Oversized windows: +56%
• Ceiling windows: 37%
• Floor-to-ceiling windows: +39%
• Wine cellars: +30%
• Marble floors: +30%
• Gyms: +28%
• Private elevators: +24%
• Tennis courts: +24%

Source: “The Keywords Being Used to Sell Homes,” The Wall Street Journal (Nov. 6, 2013)

Home Owners Don’t Like Renters as Neighbors

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

Americans don’t care to get to know the neighbor renting next door, according to a survey of more than 3,000 adults conducted by Harris Interactive on behalf of Trulia.

Home owners dismiss neighbors who are renters more than any other group living in their neighborhood, the survey finds. Thirty-five percent of respondents say it’s most important to them that their neighbors be home owners, and 51 percent of home owners say they prefer to have other home owners as neighbors. That compares to 33 percent who say they prefer neighbors who speak the same language as them, 16 percent who say they prefer neighbors with the same family structure, and 10 percent who say they prefer the same race and ethnicity.

At a time when more single-family homes have been turned into rentals, other surveys have found a prejudice against renter neighbors, too. Nearly 75 percent of home owners say that renters are bad neighbors, according to a survey by NeighborsFromHell.com.

“Renters are less likely to adapt to local customs concerning noise, trash, parking, and lawn upkeep,” says Robert Borzotta, founder of NeighborsFromHell.com. “Home owners are perceived to care more about their property, its appearance, safety of the community, and property values.”

Still, according to the Trulia survey, two-thirds of those surveyed say they like their neighbors. But don’t expect them to know their neighbors’ names. Only 46 percent of urbanites say they know their neighbor’s name.

Source: “America’s Least Favorite Neighbors: Renters,” MarketWatch (Oct. 30, 2013)

More Banks Offering Up Loans for 5% Down?

Image courtesy of Grant Cochrane / FreeDigitalPhotos.net

For the last few years, buyers have been hard-pressed to land a mortgage if they didn’t have a 20 percent down payment, unless they turned to the Federal Housing Administration’s low down-payment loans.

But a growing number of banks are now offering loans with just 5 percent down, CNNMoney reports. For example, Bank of America, Wells Fargo, and TD Bank are among the banks reportedly offering mortgages with down payments as low as 5 percent.

TD Bank is offering a “Right Step” loan product that allows borrowers to get a loan with a 5 percent down payment while also allowing borrowers to get up to 2 percent of the sales price as a gift from a relative or third party. In actuality, then, borrowers would only need to come up with a 3 percent down payment themselves.

Banks that are offering 5-percent down payment loans, however, are requiring borrowers to purchase private mortgage insurance. Borrowers will have to keep PMI until they build up 20 percent equity in the home.

Source: “Banks Offering Mortgages with Only 5% Down Payments,” CNNMoney (Nov. 5, 2013)