Votes to Extend Mortgage Insurance Tax Deductibility for New Home Loans Through 2010

RISMEDIA, Dec. 21, 2007-The U.S. House of Representatives voted to help many troubled homeowners and potential home buyers looking for an affordable mortgage, making mortgage insurance premiums tax deductible for all mortgages originated for the next three years. The Senate passed this legislation last week by unanimous consent. Mortgage insurance first became tax deductible in 2007.

“This is an important step forward as Congress seeks solutions to the current housing and mortgage crisis. Many potential buyers can’t make a traditional 20% down payment, and a loan with tax deductible mortgage insurance may make the difference in their ability to become homeowners safely,” said Kevin Schneider, president of the U.S. mortgage insurance business for Genworth Financial, Inc. Schneider is also the president of the Mortgage Insurance Companies of America (MICA), the industry trade association.

Mortgage insurance makes it possible for buyers without a 20% down payment to finance a home with a single fixed-rate mortgage which will not reset to higher interest rates in the future. Using mortgage insurance, home buyers with a small down payment can avoid the risks associated with combo loans, which are beginning to cause problems for many. In addition, the insurance is cancelable once a homeowner builds 20% equity in their home.

Mortgage insurance is available through private mortgage insurance companies, and through government programs (Federal Housing Administration, Rural Housing Service, and Department of Veteran Affairs).

“On average, this annual tax break amounts to $350 per taxpayer. That’s cash in the pockets of hard working homeowners,” said Schneider. Homeowners with adjusted gross incomes of $100,000 or less can deduct the full cost of their mortgage insurance premiums under the new legislation. Families with incomes between $100,000 and $109,000 are eligible for a reduced deduction.

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source: mybangaloreproperty.com

Financial Fitness Laps Physical Fitness in 2008

RISMEDIA, Dec. 21, 2007-Come January 2008, instead of hitting the gym to get in shape more Americans will go to their savings bank to get serious about their financial fitness, according to a national survey conducted by InsightExpress for Countrywide Bank. More than two-thirds of respondents (67%) said that becoming more financially fit, and thus, saving more money, is a top 2008 New Year’s resolution, while slightly more than half (57%) committed to becoming physically fit.

“The biggest obstacle people face in achieving physical and financial fitness is developing consistent and long-term healthy habits,” said Countrywide Bank Managing Director Pierre Habis. “Fitness trainers will tell you that achieving and maintaining good physical fitness requires commitment, and that sticking to a regimen is the fastest way to a healthier you. Becoming financially fit is no different - setting, keeping and automating your savings is vital to achieving financial fitness.”

Of the 1,002 adults surveyed, a greater number (32%) believe financial fitness is more important than physical fitness (21%), yet less than half of Americans surveyed (46%) believe they are currently financially fit. Respondents were also asked which type of fitness was harder to achieve. Although responses were about equally split on each type of fitness, respondents agreed on why each goal was difficult to achieve - developing consistent and disciplined behaviors.

Specifically:

- 43% of respondents who said financial fitness was harder to achieve listed “consistency and discipline, doing what I’m supposed to on a regular basis” as their first or second obstacle out of 10 listed.

- 57% of respondents who said physical fitness was harder chose the same reason as their first or second obstacle.

- 44% of respondents who said physical and financial fitness are equally hard to achieve chose the same reasons as their first or second obstacle.

“I believe there is a strong correlation between financial security and physical and emotional well-being,” says Dr. Melody Alderman, a licensed clinical psychologist in private practice in Woodland Hills, Calif. “People who save money on a regular basis, regardless of the total amount they have in the bank, are less likely to battle anxiety, depression and have money be an issue in their relationship. In my view, the results of the survey are an indicator that people are finally putting financial health on par with physical health.”

They survey also found the following:

- Gender, parenthood and annual income are drivers in perceived financial fitness

- Fewer women than men (37% vs. 55%) believe they are financially fit.

- 51% each of dads and people without children believe they are financially fit, while only 30% of moms believe they are financially fit.

- 69% of those with an annual income of $100,000 or more believe they are financially fit (51% for $50,000 - $99,000 and 33% for those earning less than $50,000).

- Parenthood drives a gap between perceived physical and financial fitness

- 50% of Americans believe they are physically fit, and 46% believe they are financially fit.

- 50% of parents believe they are physically fit, while 36% believe they are financially fit.

- 44% of moms believe they are physically fit, while 30% believe they are financially fit.

- Marriage has a bigger impact on perceived financial fitness than on physical fitness

- 51% of married people believe they are physically fit, while 39% believe they are financially fit.

- 49% of unmarried people believe they are physically fit, and 50% believe they are financially fit.

“The good news for consumers is that it’s easier than ever to save their hard-earned money,” said Habis. “Many banks, including Countrywide Bank, today allow customers to open and fund accounts online, transfer money online from a primary checking account into a high-yield savings or money market account at a different institution, and automate the amount and frequency of deposits.” Habis continued, “These ’set it and forget it’ features remove the ‘consistency and discipline’ obstacle that has traditionally prevented people from building their nest egg.”

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source: rismedia.com

Emphasizing Agents as The Greatest Asset

RISMEDIA, Dec. 22, 2007-James Bolin, general manager of Carol Jones, Realtors says that his company is agent-centric. With a mentality of “agent-first,” Bolin feels that accommodating his agents starts with the first step in a successful real estate process, and what better way to accommodate them than by providing top-notch training and opportunities for these agents to thrive. Here, meet what’s working for the Springfield and Branson, Missouri-based brokerage.

ames L. Bolin
General Manager
Carol Jones, Realtors
Springfield and Branson, Missouri

Years in real estate: 14; six in sales and eight in management. Career path: Taught English and coached for 10 years. Operated a restaurant in Branson for 10 years and then started selling real estate part time in 1993; went full time in 1996. Number of offices: 12 Average sales price: $150,000 Number of agents: Approximately 500 Average time on market: 65 days In my spare time: “I read business, fiction, newspapers and magazines. It really doesn’t matter what I read; it fills all the blank spots in my day when I am awake and not driving or in conversation with someone.” What about your market? “We’re down year over year between 10 and 15 percent.”

In your opinion, what differentiates your brokerage from the others in the marketplace? Our training is envied by most of the Realtors in the market. We have a year-round program. We bring in national training. We also pay for more than half of the continuing education classes for our agents. So, in a word, it’s the training that separates us from all of the rest. Our staff and management understand that we are agent-centered. Our agents are our first customers. Our greatest assets walk out the door every day. We understand this so we try very hard to accommodate their needs.

How would you describe the demographics of your clientele? We are the best example of a full-service brokerage that services every range of property. We sell houses from $120,000 to $750,000. Ours is a population that includes everything you can think of all across the board.

With regard to advertising, how does The Real Estate Book® help with your marketing efforts? The Real Estate Book is a very valuable marketing tool for us. First of all, it delivers all of the ads that are placed in The Real Estate Book to 20 Internet sites. Any leads that are generated by the sites or printed ads are given directly to our agents. So, it has a far greater reach than local magazines that only hit a very small local audience. The agents like the vast reach, of course.

Also, the smaller size of The Real Estate Book is a real plus. It’s portable and very readable. Buyers may not contact an agent immediately but they do tend to take The Real Estate Book with them and put it in their purse and pull it out and read it over later when they have time. So besides being portable they have a long shelf life.

What is your philosophy for a successful life in real estate? You have to get up early. Have a plan everyday. And especially in this market you have to prospect for business every day that you work. You can’t escape this. Segment your day. If you do not prospect then you may not survive this market. Go back to the basics. It’s the agent with the listings who will not only survive this market but will make millions. And last but not least-never stop learning.

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source: rismedia.com

Accommodating The Luxurious Side of Real Estate

RISMEDIA, Dec. 22, 2007-According to Dennis McCormack, the two things that everyone tends to gravitate toward when looking to buy a home are a quality community and a top location. And in the Alpine, New Jersey market, people are willing to pay for this. Here, meet how this Sotheby’s affiliate is making the most of his company’s partnership and market conditions to meet the needs of luxury home buyers and sellers.

Dennis McCormack
Broker and President
Prominent Properties Sotheby’s
International Realty
Alpine, New Jersey

Region served: Northern New Jersey Years in real estate: 18 Number of offices: 3 (fourth opening spring 2008) Number of agents: Approximately 100 Average sales price: Approximately $2.7 million Average time on market: 6-8 months How I entered real estate: “I got my real estate license as an afterthought while I was at NYU to earn some extra money on the side, and it evolved into my real estate career.” Thing you love best about where you live: “The thing I love best about where I live and work are the opportunities that I have been provided with. It has been great to be a part of the growth that the luxury market in Bergen County has experienced over the last decade.”

Describe your current market conditions. The luxury market has remained strong since there still is a lack of inventory at this time as the supply of homes in this arena has not outpaced the demand. The ultra-luxury arena, which includes properties that are priced at $10 million and above, also has been very strong.

How do you market luxury real estate differently than mainstream real estate? We rely heavily upon the Sotheby’s International Realty® network, which we feel is second to none when it comes to reaching the most financially qualified buyers from every corner of the globe. Some of our largest sales have been a direct result of Sotheby’s International Realty referrals.

What marketing strategies do you employ to get houses in the U.S. to be seen internationally? A lot of our marketing is done on a domestic basis through the Sotheby’s International Realty brand. Its Web site accounts for approximately 30% of our yearly sales-a statistic that is very significant for us.

What’s on the minds of home buyers and sellers in your region? The two things that everyone tends to gravitate toward when looking to buy a home are a quality community and a top location, and people are willing to pay for this. We have seen that the strong locations tend to prosper while marginal locations take the hit if there is a hit to be taken.

How would you describe the demographics of your clientele? Our clientele is made up largely of financial people. Most of our clients are professionals, doctors, entertainers and sports figures.

How does your relationship with a worldwide community of real estate professionals benefit the work you do in New Jersey? We benefit largely because of the buyers that the Sotheby’s International Realty network produces for us. The network reaches qualified buyers and then we in turn benefit because the client list that they produce for us allows us to reach these buyers.

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source: rismedia.com

10 Ways to Utilize Winter Downtime, Create a Profitable 2008

RISMEDIA, Dec. 22, 2007-As the holidays and long winter months quickly approach, December brings many real estate professionals extra time to anticipate their success for the upcoming year. Instead of facing a bleak and potentially slow month of business and leads, utilize this exclusive downtime to your advantage.

Try these 10 actions to lay the groundwork for a successful and profitable 2008:

1. Create a specific, realistic and competitive business plan for next year and stick to it! Develop short term goals for each season and set aside four specific days each year to assess how you’re reaching these goals. You want to make sure to set goals that help sustain your drive and vision of success for the whole year. Don’t push yourself too far and remember that a lot of your learning will come from the mistakes you make.

2. Define your marketing niche and go for it! Seek out a professional to help you focus on a particular market segment if you are unaware of successful marketing techniques. Look at the area surrounding your properties. Should you appeal to expecting parents? New college graduates? Retiring, older adults? What generation are you trying to target? Make sure your advertising appeals to whichever market you’ve selected. If you’re very ambitious, look into becoming a short sales expert. The short sale occurs when the net proceeds from the sale of a home are not enough to cover the sellers’ mortgage obligations and closing costs. Lenders will pay a reasonable commission to the real estate professional as an incentive to get into short selling.

3. Incorporate new technology into your Web site. Add moving graphics, virtual tours and request forms for potential clients to elicit more information from you. Ensure that the message “I’m available to help you” is loud and clear. The more accessible you are, the more opportunity you give potential clients to make contact with you. Remember - people need a fast response to an e-mail or phone call. If they don’t hear from you within a couple of hours, they will find someone else to answer their questions.

4. Make phone calls. Set a minimum number of phone calls to make each day and stick to it! Figure out how many phone calls you usually make during the busy season and double that number during the winter months. Call past clients to wish them a happy holiday season and check in with them to see if they have any friends or relatives looking to buy or sell a home. Call your prospects and figure out if they are hot or cold leads. The stronger the connection you have with a potential client, the more likely they will choose you to guide them through the home buying process.

5. Host a seminar. Choose a topic that is pertinent to the local community.

6. Volunteer. By getting involved in the local community you’ll be able get your name out and make connections. Community service gives you the chance to express yourself outside of work and to develop the personal relationships that you need to promote growth and future referrals. The more people that recognize your face, the more likely they are to turn to you for real estate advice.

7. Master your home staging techniques. Read a few books or articles on what real estate professionals are doing now in terms of staging and make sure that you’re equipped to do the same for your customers. Look into a home staging training program that upon completion will provide you with a certificate as an Accredited Staging ProfessionalTM. This certificate provides you with a competitive edge and yet another free service that you can offer to potential clients.

8. Attend open houses. Take time to see what’s available in your area so you are aware of the close competition and how other real estate professionals are selling. (While you are perusing the open houses note the other real estate professional’s home staging techniques for tip 7.)

9. Improve your ad copy. By practicing your writing techniques you will increase your ability to make your ads more appealing. Focus on spelling out amenities and highlighting any benefits that homeowners would want to find in their ideal home. Make sure the description is not vague and avoid euphemisms. Practice by reading current listings and try to spruce them up.

10. Get a designation or certificate. The more qualifications you can add to sell yourself and widen your client base as the best agent in your area, the better. There are several different areas that you can get a designation in from becoming an Accredited Buyer Representative to becoming a Certified Real Estate Brokerage Manager. Turn a professional weakness around by becoming an expert!

After exhausting this list, you have covered many bases for the upcoming year and surely you will enjoy some new degree of success. But your improvement doesn’t stop here. Throughout the year continuously refer to these top 10 tips and ensure that you’re updating and adapting your business techniques and personal approach to becoming the best real estate professional you can!

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source: rismedia.com