Month: December 2010

Get FHA Listings

HUD recently announced the latest version of its REO disposition program.  It’s called Management and Marketing III (M&M III) and it seems to have some interesting new twists.

On June 1, HUD began contracting with Asset Managers who are charged with the responsibility of marketing REO properties within their geographic Homeownership Center (HOC).  Asset Managers must be licensed real estate professionals with expertise in the neighborhoods in which REO property is located.

Asset Managers are instructed to allow all brokers an equal opportunity to list and sell HUD-REO properties.

If you are interested in listing HUD-REOs, you must work through the Asset Manager.  A list of Asset Managers by geographic area is located HERE.

In order to participate in the M&M program, brokers must register for and receive a Name Address Identification number (NAID) before either listing or selling HUD-REO properties.  If you already have a NAID number you don’t need to apply for a new one.  Registration for a NAID number can be found HERE.

Centuries ago, when I sold real estate, HUD contracted with one broker in each area to manage their REO properties.  Any other broker could sell HUD homes and receive a full 5% commission.  In this new program, HUD homes are listed at up to 6% commission with the mandate that commissions be shared equally between listing and selling offices.

HUD currently has a lot of REO property to move and more are coming.  I think it’s well worth the time and effort to get the NAID number and contact your local Assett Manager.  Go get ’em.

(By the way, to search for HUD REO homes for sale, go to http://www.hudhomestore.com)

Pretty Sharp Marketing

Kimberly Zelena and Leigh Anne Losh at Help-U-Sell Direct Savings Real Estate in Verona, Virginia have definitely got their marketing hats on!  Like Mike Klein at Help-U-Sell Prescott Valley, they jumped on using QR codes.  Here’s a picture of their office Facebook page:

The QR code is that black and white box at the top/left.  If you get a QR code reading app on your smart phone (like Google Goggles . . . go ahead:  Google it), point your phone at the QR code and click it, the browser on your phone will take you to the Help-U-Sell Direct Savings website.  No need to fumble around with your fat thumbs typing in a URL on that tiny keyboard;  the QR code does it for you!   Hey:  why not get a QR code reader on your phone right now and make your first click on Kimberly’s QR code right here in the Set Fee Blog!  Go on; we’ll wait.

One of the things Mike Klein and Kimberly are doing is using QR codes with their listings.  They get a unique code for each listing then include it on property flyers so a customer can get more information instantly.  Kimberly told me she was going to start putting the code in a plastic sleeve and attaching it to the sign post.  Once buyers learn how to use this technology, they’ll be able to simply walk up to the sign and click their phones to get the details.

Next, notice the first post on the Help-U-Sell Direct Savings wall, the red thing.  Since the above is just a photo of the page, the link in it doesn’t work, but if you clicked it live on the actual Facebook page, you’d go HERE.  It’s basically an ETM:  pictures and descriptions of homes for sale, sold and saves, testimonials and a description of the seller offer.  Now the challenge is:  how to drive prospective sellers to that page and Facebook is a good start.

I know:  technology can be confusing and difficult, but sometimes it just makes things work better!  I’m glad we have sharp brokers in Help-U-Sell who see the possibilities and work to take advantage of them.

Pending Home Sales Jump in October

Remember May, 2006?  That’s when the Pending Home Sale Index hit its last big high before the market began to tighten:  112.6.  We got close to that last October when the first Homebuyer Stimulus Program came into play:  112.4.  Not surprisingly, the index had another peak last April when Stimulus Program number 2 happened:  110.9.

The good news right now is that the Pending Home Sale Index showed a strong increase in October, without the additional help of a Stimulus package.  The index surged 10.4% over September’s level to 89.3.  My guess is that ridiculously low mortgage interest rates coupled with a little flicker of consumer confidence has led to the increase.

There seems to be a lot of good economic news right now.  Retailers are having a better time of it this Holiday Season and a number of pundits are predicting a break-out surge in the stock market in the near future.  My mental image is America, like Mohammed Ali,  leaning against the ropes with gloves held up in defensive passivity as negative economic forces pound away;  then suddenly coming to life to win the match.  I think the negative forces are growing weary and our rope-a-dope response is about to end.

Just makes me want to go out there and sell something!

To read the full article from NAR (and get a video dose of the coolest economist in the biz, Lawrence Yun) go HERE.

Foreclosure Sales and Discounts: 3rd Qtr

Realty Trac is out with foreclosure stats for 3rd quarter.  It is an ugly picture but one also full of opportunity.  Sales of foreclosed property were down from the previous quarter and from the same quarter last year but remain an enormous factor in many markets.  Here is a snapshot of the states with the largest numbers of foreclosure sales for July, August and September:

By the way, Realty Trac calculates the ‘discount’ by comparing the average sale price of foreclosures in the State with the average sale price of non-foreclosed properties.  It’s not a perfect method (kinda like comparing the juice of this pile of apples, oranges and lemons with the juice of this other pile of apples, oranges and lemons), but the result still indicates that sellers with equity in the top foreclosure states have monumental competition.  Still, if your house is worth $200,000 and you have to price it at $175,000 to sell so you can buy your dream home (which happens to be an REO) valued at $400,000 but priced at $300,000, I think you’re way ahead.  Where else can you give up $25,000 and gain $100,000?  No stock market I’ve ever heard of.

Even if you’re not trading up, it’s a wonderful time to refinance.  I just did it on a streamline process that required minimal paperwork and no income verification (something I thought was gone forever).  It did require an appraisal but I think the appraiser must have been tipsey that day because he gave me way more value than I expected. My timing was a little premature:  I got a 4.375% rate and a few weeks delay would have probably saved a a nano-point or two but it sure beats the 6.25% interest only loan I gave up! Really: ’tis the season to touch base with everyone you’ve ever sold a house to, so why not help them discover if a refi might be available to them?

AND, OH BY THE WAY:  As you are paying your REALTOR dues this year be sure to make your voluntary contribution to RPAC and/or your State political action fund.  Congress is seriously debating taking away the tax deduction homeowners receive for mortgage interest paid, a move that in my opinion would be horrendous for America.  I hate lobbiests as much as anyone else, but ours are wearing white hats and need your help.

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