Beat the Competition in Buying Foreclosures.

Beat the Competition in Buying Foreclosures

While bank-owned homes are plentiful in many markets, they aren’t always easy for a buyer to get. Foreclosure sell at bargain prices — sometimes at 35 percent discounts when compared to non foreclosures. These ultra-low prices are attracting investors and all-cash offers, which makes it difficult for other buyers’ bids to win out.

So how can your buyers beat the competition to get foreclosures?

Get the first look: Fannie Mae and Freddie Mac’s First Look program offers first-time home buyers and others who need financing and are looking for a primary residence the first opportunity to see bank-owned homes before investors. Buyers have a 15-day window to submit offers before investors have the opportunity to start bidding.

Submit a competitive offer: Homes priced at heavy discounts can be in high demand and attract multiple bids. Lowball offers won’t likely get far. Some housing experts suggest starting with your best offer. “My advice is to offer the most you feel you would ever pay for the property,” said one recent buyer of foreclosures.

Make a large deposit: If a buyer wants to get the banks attention, they could offer a larger than typical good-faith deposit. But if the buyer has to back out of the deal for some reason, he or she may be at risk of losing the deposit.

Even if your buyers really want the property, don’t let them cave in to unreasonable demands, like waiving a home inspection. Otherwise, it may be a decision they quickly regret if the home is later found to be ripe with problems.

Source: “How to Beat the Competition in buying Foreclosures,” Sun Sentinel (Fla.)

What Customer Service Means Today.

What Customer Service Means Today

There was a time when providing great service in real estate meant getting an understanding of the lifestyles of clients and teaching them what they didn’t already know. Simply providing them with information on homes for sale, pricing, current mortgage rates and data relevant to the transaction gave practitioners a strong leg-up as consumer access to such information was limited.

“Today, that doesn’t happen anymore,” says Austin Allison, CEO of DotLoop, which provides solutions that facilitate paperless real estate transactions. “They call up the agent and say, ‘Hey, I found these 15 homes. Can you show them to me?’”

Consumers — especially those under 40 — want to find that information on their own, Allison says. When they do contact a real estate professional, they’ve often done quite a bit of research on the Web. Because they’re starting from a higher baseline of knowledge, what they want most from their agent today isn’t market intelligence or listing info, but rather someone to manage their transaction seamlessly.

He points to Apple and Amazon as models to which real estate practitioners can aspire. At Apple’s retail stores, customers aren’t being bombarded with hard sells and extraneous information about things they don’t want. Instead, if they have questions about a particular product, they ask one of the knowledgeable people who work there and get a detailed, informed answer. If not, they pick up the item they came in knowing they wanted and purchase it.

Similarly, visitors can go to Amazon.com knowing they can either get plenty of information and reviews on a particular product if they want it, or they can just buy it very quickly via the site’s one-click checkout.

“The lower end of Generation X and Generation Y like it like this,” explains Allison, and adds that these consumers make up the majority of first-time home buyers now. “A good experience is the real estate agent getting out of [their] way.”

A great way to determine whether or not you’re providing an excellent customer service experience is to calculate the ratio of leads generated to leads converted, he says. The higher that number is, the better. And of course, the number of transactions you’re closing and how satisfied buyers and sellers are at the end of the process are critical too.

Real estate professionals who make the adjustment to the Apple/Amazon model of service stand to benefit as housing recovers and new consumers enter the market over the next few years. But Allison is concerned that too many practitioners are locked into the old way of doing things.

“A lot of the industry is in denial,” he says. “Is the real estate agent going away? Highly unlikely. But their role is going to evolve. The real estate agents who refuse to acknowledge that and make changes are going to pay for it.”

Construction Spending Rises for 5th Straight Month.

Construction Spending Rises for 5th Straight Month

The worst year for home building on record was 2011, but the year ended with a surge in construction spending, as the new-home sector heads into 2012 on a brighter note.

For the fifth straight month, builders spent more on homes and projects, the Commerce Department reported Wednesday. Construction projects increased 1.5 percent in December to a seasonally adjusted annual rate of $816.4 billion — the highest level in nearly two years.

“The gains coincide with other signs that show the troubled housing industry may be improving,” the Associated Press reports. “Builders are more confident after seeing more interest in homes, and single-family home construction rose in the final three months of last year.”

Source: “Manufacturing Growth Fastest Since June; Construction Spending Up for Fifth Straight Month,” Associated Press

Home Ownership Rate Drops to 1997-Levels.

Home Ownership Rate Drops to 1997-Levels

The home ownership rate took another dip in the fourth quarter of 2011, falling for the seventh year in a row as fewer Americans own their homes.

The home ownership rate now stands at 66 percent, a level that hasn’t been reached since 1997, the U.S. Census Bureau reported this week. The home ownership rate peaked at 69.2 percent in the fourth quarter of 2004, and has gradually fallen ever since.

The home ownership rate has fallen the most in the West, standing at 60 percent — a big drop compared to 64.5 percent in the fourth quarter of 2006, the Census reports.

Some people who want to own a home are being shut out of the market because they’re unable to qualify for financing for a mortgage, Paul Dales, an economist with Capital Economics, told the USA Today. Stringent loan standards have been blamed on holding back a housing recovery.

As such, more people are turning to renting. Nearly 34 percent of occupied homes in the fourth quarter were rentals, Census data shows.

“The share of Americans who are willing and able to own their own home is still falling,” analysts at Capital Economics told HousingWire. “The flipside is more households in the rented sector and fewer properties lacking tenants. This is helping to drive rents, and therefore landlords’ returns, higher.”

NFL Stars Score With Super-Size Homes

The NFL regular season is in the books. The AFC and NFC title games are done. Now it’s up to the New England Patriots and New York Giants to whip the country into a lather when these two Northeast teams head for the ultimate NFL showdown.

Super Bowl XLVI on Sunday, Feb. 5 means finding the perfect place to party while rooting for Tom Brady’s Patriots or Eli Manning’s Giants. Of course, some NFL stars past and present are not exactly hurting when it comes to palatial digs big enough to host the neighbors.

Which one of these guys would you like to score an invite from to celebrate that unofficial national holiday?

Source: Sports Illustrated

Tom Brady

NFL career: New England Patriots (2000-present)

New England Patriots’ MVP QB told the post-game crowd at Foxboro yesterday that he, well, kind of stunk it up against the Baltimore Ravens in the AFC title game. But with an arm that will land him in the Football Hall of Fame, Brady doesn’t have a lot to sweat — at least on the football field. In real estate matters? Well, Brady’s been a little down on his luck trying to sell his apartment in the Boston real estate market. After taking a $400,000 price cut from his original 2009 list price, the home was re-listed in early October for $10.5 million. The 5,311-square foot condo offers 3-plus bedrooms, 3.5 baths, a master suite, luxurious kitchen and a state-of-the-art gym.

Tom Brady’s Home for Sale:$10.5 million

> See more photos of Tom Brady’s home (below)

Source: Sports Illustrated

DeMarcus Ware

NFL career: Dallas Cowboys (2005-present)

From the looks of it, the All-Pro defensive end is moving up in the world of high-end real estate, listing his Dallas-area home for a cool $2 million. Not that surprising, considering the five-time Pro Bowler is the highest-paid Dallas Cowboy ever, signing a six-year, $78 million contract extension, $40 million of which was guaranteed. Ware’s home is located in one of Dallas’ finest gated communities and maxes out at a whopping 9,304-square feet of living space. The manse features four living areas, numerous bonus rooms, a wine porch, seven fireplaces, a theater room, and chef’s kitchen.

DeMarcus Ware’s Home for Sale:$2,198,000

> See more photos of DeMarcus Ware’s home (below)

Source: Sports Illustrated

Carson Palmer

NFL career: Cincinnati Bengals (2003-2011), Oakland Raiders (2011-present)

After an ongoing dispute between Palmer and Bengals president Mike Brown regarding Palmer’s request to be traded, the team finally let go of the quarterback in October 2011. Now playing for the Oakland Raiders,  the QB has moved out West, selling his Cincinnati home for $1.915 million. The 5-bedroom, 5.5-bath home is situated on a private 5-acre lot and is filled with architectural details like carved-wood paneling, floor-to-ceiling windows and built-in bookcases. With a full game room, pool table and wet bar, this place could be the new owner’s perfect Super Bowl party setting.

Carson Palmer’s Home Sold: $1,915,000

> See more photos of Carson Palmer’s home (below)

Source: Slanch Report

JaMarcus Russell

NFL career: Oakland Raiders (2007-2009)

While quarterback JaMarcus Russell was making plays on the football field, he apparently wasn’t making payments on his million-dollar mansion (below) in Oakland, CA. According to TMZ, Russell “allegedly failed to pay $195,512.05 in mortgage payments.” In the midst of trying to settle his Oakland real estate mess, Russell is also looking for a job. He was released from the Raiders in May 2010 and is currently a free agent.

Source: Sports Illustrated

Terrell Owens

NFL career: San Francisco 49ers (1996-2003) Philadelphia Eagles (2004-2005) Dallas Cowboys (2006-2008) Buffalo Bills (2009) Cincinnati Bengals (2010) Allen Wranglers – IFL (2012-present)

T.O. has never been shy — about anything. Not his flamboyant touchdown celebrations, his reality-TV persona or about his own prodigious talent on the field. The Pro Bowl receiver’s ambition to return to the game has garnered the usual T.O. publicity churn, and so has his equally high-profile life in luxury real estate. That includes a recently reported monster price drop for the condo Owens owns in the pro athlete-friendly Azure high rise in Dallas. Originally listed for $2.125 million, the 3-bedroom, 4.5-bath unit took a $95,000 price cut before being taken off the market last month. But don’t worry, Owens is not without a place to call home. He still maintains a monster crib outside of Atlanta, which was featured on MTV Cribs and in other celebrity real estate listings.

> See more photos of Terrell Owens’ home (below)

Source: Cosbysweaters.com

Kurt Warner

NFL career: St. Louis Rams (1998-2003) New York Giants (2004) and Arizona Cardinals (2005-2009)

Former NFL star quarterback Kurt Warner is far from his days as a grocery store stock boy. The MVP of Super Bowl XXXIV has moved onto another Phoenix-area manse, but has recently listed his massive Paradise Valley estate for $4,998,500. The 7-bedroom, 6.5-bathroom contemporary home boasts 11,329-square feet of living space. Loaded with all of the sleek amenities a pro athlete could want, Warner’s pad is worthy of its high-end price tag. The home features a gourmet granite kitchen, expansive family entertaining areas, a butler’s kitchen and a spectacular dining room. On the entertainment side, it features a large billiards room with wet bar, spacious guesthouse with separate entry, a piano room, formal living, theater room and a spa.

Kurt Warner’s Home for Sale:$4,998,500

> See more photos of Kurt Warner’s home (below)

Source: Seahawks.com

Walter Jones

NFL career: Seattle Seahawks (1997-2009)

Not many people have a regulation-sized football field with “NFL standard goal posts in each end zone” included on their property. But when you’re a nine-time Pro Bowler and six-time All-Pro NFL player, it’s a must — apparently! Jones moved into the 13,000-square foot mansion in his native Alabama after retiring from football in 2009, and last year he listed his massive estate for $3.5 million, which is currently still on the market. Besides the football field, Jones’ home includes a lighted sport court and “sports house,” as well as in-ground pool and pool house with TV area, bar and full bath. The 14-acre-plus property also has walking trails, gazebo, guest house and six-car garage.

> See more photos of Walter Jones’ home (below)

Source: Sports Illustrated

Michael Strahan

NFL career: New York Giants (1993-2007)

Former Giants defensive end Strahan is a NFL commentator for FOX NFL Sunday these days, but he made no bones about how he’d prefer to be with his old team on the field come Super Bowl Sunday. The seven-time Pro-Bowler retired in 2008 after the Giants won Super Bowl XLII, But, he does have other business to attend to these days, including some in the Los Angeles-area real estate market. His 9,200-square foot Brentwood estate recently hit the market with a $6.95 million price tag. Featuring 6 bedrooms, 8 baths and 2 powder rooms, the home includes a master suite, large balcony, his/her baths and walk-in closets, as well as steam/dual shower.

> See more photos of Michael Strahan’s home (below)

Source: NFL.com

Jake Plummer

NFL career: Arizona Cardinals (1997-2002), Denver Broncos (2003-2006), Tampa Bay Buccaneers (2007)

The former quarterback-turned-professional-handball-player may have been able to easily walk away from the NFL, but he hasn’t had such luck shedding his Cherry Hills Village home in Englewood, CO. The 7-bedroom, 8-bath home is still on the market, listed for nearly $3 million. Situated on 2.81 wooded acres, the property features a pool and tennis courts.

> See more photos of Jake Plummer’s home (below)

Source: NFL.com

Troy Aikman

NFL career: Dallas Cowboys (1989-2000)

Former Dallas Cowboys star quarterback Troy Aikman set the standard when he was racking up Super Bowl rings. It’s no wonder that his real estate holdings are equally impressive, including the home Aikman listed for $24 million last May, making it the most expensive residence currently on the Dallas real estate market. The Mediterranean-style mansion sits on nearly 1.5 acres with a creek running through it. There are 5 bedrooms, 7 baths, a sports court, outdoor fireplace/pit, outdoor living center, wet bar, exercise room, game room, library and guest quarters.

> See more photos of Troy Aikman’s home (below)

Source: Deadspin.com

Joe Montana

NFL career: San Francisco 49ers (1979–1992), Kansas City Chiefs (1993–1994)

NFL Hall of Famer Joe Montana is offering a major discount on his Sonoma vacation retreat — a $14 million price cut! That’s the second big cut for the San Francisco 49ers family, considering the way the Niners were cut from the playoffs by the Giants in the NFC title game on Sunday. Now listed for a jaw-dropping $35 million, Montana’s Tuscan villa-style estate is close to 10,000 square feet and sits on 500 acres of lush wine-country land with creeks, wide-open views and even a private pond stocked with fish. The grounds also include an equestrian center, a full-sized basketball court, skeet shooting range, gym, pool and spa.

> See more photos of Joe Montana’s home (below)

Source: NFL.com

John Madden

NFL career: Linebackers coach for the Oakland Raiders (1967-1968), head coach for the Oakland Raiders (1969-1978)

Former Oakland Raiders coach John Madden is a legend whose Super Bowl victory in 1977 paved the way for one of the longest-running stints as commentator for all four major TV networks including NBC’s Sunday Night Football. He also collaborated on the wildly successful Madden NFL video game series. Hopefully, Madden will have the same success selling his New York City apartment, currently listed for $4.395 million. The 2-bedroom, 2.5-bath residence is located in the Dakota building and, according to the listing, “boasts soaring ceilings adorned with original moldings, two magnificent fireplaces, intricate paneling and built-in cabinetry and oversized rooms and windows.” Although the apartment has taken a few price cuts since first being listed, Madden seems guaranteed a profit, considering he’s owned the home since 1985 when he bought it for $625,000.