Sharing Bad News

No one likes to share bad news.  However, to be succesful in business and life it is sometimes necessary to share bad news.  It is vital to do it the right way.  So, please check out these practical tips to sharing bad news taken from an article by Erika Andersen:  How Great Leaders Deliver Bad News.  Check out Erika Andersen’s latest book, Leading So People Will Follow.

Happy Easter From The Lester Wilkins Mortgage Team

I hope you and your family have a blessed and Happy Easter!

Read. More.

This year I have decided to read more.  So, I am going to start a book club.  If you are interested in joining let me know.  These are the books I am reading.

Happy Holidays!

From everyone at the Lester Wilkins Mortgage Team: Merry Christmas and a prosperous and safe 2015!

I am grateful for you!

Happy Thanksgiving!

Some Productive Ways to Use Your Free Time

On the rare occasion that you have some extra time on your hands with no pressing obligations, you can be really productive. Avoid the guilt of wasting the precious free time by applying the following tips.

1. Create a To Read File.  Clip magazine articles you want to read. Print the interesting email or report you received, but don't have time for now. Place them in a folder called "Reading File." Keep it with you and whenever you have a chunk of time, such as in the waiting room at the Dr. Office, you will have some quick reading. 

2. Create a Calls List.  Create a list with non-urgent phone calls you need to make. Take it with you everywhere. Whenever, you have a free minute you can check off a bunch of those calls in a short amount of time. As a bonus tip, include the contacts' phone numbers on your list.

3. Create an Email List.  Most of us have smart phones. If you take the time to make a list of emails you need to make and keep the list with you, it will prove to be extremely useful. You can knock out quite a few emails with little effort while you are waiting for your oil to be changed, for instance.

4. Create a to Listen File.  I store MP3's and voicemails in hear for later review. I love this for the commute to work. You will too.Bonus Tip:In our digital world this can all be done on your smart phone. I suggest using Evernote. If you need any help with this please do not hesitate to give me a call.

The Top Curb Appeal Blunders

From HGTV's FrontDoor.com we've identified the top curb appeal "killers" and what to do about them. How many of these have you seen lately?

1. The Brown Thumb — Gardens rarely look good out of season, and artificial flowers are tacky. Make sure to clear dead debris and prune back overgrowth.

2. The Obstacle Course — Visitors shouldn't have to jump the miniature statues, spin around the lawn ornaments, and then leap sixteen plastic toys. Keep the lawn free and clear.

3. Haul the Decks — Old or mismatched patio furniture should be thrown out. Leave only what showcases the best use of space.

4. Car Trouble? Cars parked in the driveway telegraph a small house with a packed garage—not to mention being a photo faux pas.

5. Like a bad neighbor — If the neighbor hasn't mowed his lawn in six months, offer to do it for him. Neighborhood perceptions matter as much as the house itself.

6. Overtime pay not included — Yes, that garden can feed the entire block year round, but for a new buyer with no gardening experience, it's a high-maintenance nightmare. User-friendly is key!

7. Sour eye-candy — Sellers focus on those features they've grown to love—buyers always seem to notice rust, weathering, and dilapidation.

8. That's a mailbox? Replace or remove worn, crooked, outdated, or mismatched exterior features.

9. Fascia Facelift — A fresh coat of paint, especially a neutral color on siding with touches of color on the door and shutters, can do wonders on a budget.

"Staging" Your Purchase Offers

You already know staging your listings can result in more motivated offers, but what about staging your offers to increase acceptance? Just like a property staging, an offer staging should be clean, organized and ready to make an impression.

The best offer anyone can make is the highest, in cash, with no contingencies. If your buyers don't have such an offer, here are a few ways for their offer to get more attention.

Add a cover sheet explaining what the sellers and listing agent will see, and in what order—it looks organized and professional.

Add a letter of introduction about your buyers. Within a few lines say something positive about the buyers and why they love this particular house—sometimes it makes the deal.

Cover your bases on the purchase contract by checking for all signatures and initials where required. Show proof of financing with a mortgage pre-approval letter, attach a copy of the earnest money check, and provide anything else that will solidify your buyer's position. Make sure to follow any listing agent instructions and ensure that all paperwork is tidy.

When facing competition from multiple offers, get creative. Encourage your buyers to forgo or shorten contingency periods, shorten the escrow period, increase their earnest money deposit, and/or increase their down payment. Get as much information as possible from the listing agent to see what will make the sellers "tick."

Encourage your buyers to be first even if a house has languished on the market because it's priced too high. Often being the first one to make a reasonable offer can create a deal before the sellers decide to reduce.

Bumpy Road Ahead for First-time Buyers

Winter weather pummeled housing across much of the nation last quarter. As spring weather brings a thaw for busier months, the focus is now on whether there is enough inventory to satisfy demanding buyers, particularly first-timers. Low housing supply, tightened credit guidelines, increasing rates and rising prices are all stacking up against first-timers' odds at calling a place their own. No answer on when new Building Permits, which rose 7.5 percent to just over 1 million in March, will be approved for new home construction to meet demand.

Homebuyers in general are reportedly less confident about the market. Following January to February's 10 point drop in the monthly builder sentiment index from the National Association of Home Builders (NAHB), it rose 1 point (from 46 to 47) in March. Readings below 50 indicate that more builders view housing market conditions as poor, rather than good. This reflects builders' inabilities to find lots and labor, according to Kevin Kelly, NAHB Chairman. More than ever, buyers will be requiring the help of skilled real estate professionals to represent them in what could be competitive purchase transactions this season.

Fannie and Freddie on the Chopping Block?
Late last quarter, the Senate Banking Committee said it would introduce a bill to reform the U.S. housing finance system by scaling back and possibly eliminating Fannie Mae (FNMA) and Freddie Mac (FHLMC). The government-backed enterprises oversee the secondary mortgage market. By purchasing home loans from lenders, packaging them up, and selling them to investors as mortgage backed securities, they free up liquidity for lenders to continue financing homes. Both regulate home loan guidelines with the goal of making home ownership more attainable for Americans.

Fannie and Freddie were largely criticized for securitizing bad loans which contributed to the subprime crisis. This story will be watched closely for its impact on housing and potential future housing reforms for many years to come.

Productivity Tip: Manage You, Not Your Time.

We have the same amount of time in a day as Thomas Edison and Albert Einstein. How did they do it. The key is to manage you, not your time.

New Qualified Mortgage Rule Now in Effect

What Does This Mean to You?

You may have heard about a new rule that may impact people looking to purchase or refinance a home.

What is This Rule? 
As of January 10, 2014, lenders are required to more thoroughly assess a borrower's "ability to repay" a loan, so that he or she can receive a "Qualified Mortgage" (QM).

Why was it Enacted? 
The rule is part of the Dodd-Frank Consumer Protection Act, which made banks and mortgage lenders legally liable for determining borrowers' abilities to repay their mortgages. It was enacted to help ensure borrowers get a home loan they can afford to repay, and to help prevent people from going into foreclosure and losing their homes.

What is the Bottom Line?
While new guidelines are now in effect related to loan limits, a borrower's debt-to-income ratio, fees and other items, the good news is that the Consumer Financial Protection Bureau (CFPB) estimates that 95 percent of all mortgages made in 2013 already met the new rule. So there's a good chance the new rule won't impact the majority of borrowers.

If you or your clients have any questions I am here to help. Give me a call or send me an email, and I'm happy to answer any questions you may have.

Get More Business with Annual Reviews

Most people see their tax preparer, financial planner, and doctor at least once a year—but who's watching out for their investment in real estate? Shouldn't it be the person who sold it to them? The annual client review (ACR) is easy to perform and so unexpected that clients will look forward to it and spread word about the value of your service far and wide.

The annual client review is a current snapshot of the market, which impacts the value of your client's home. Rather than a simple comparative market analysis, the ACR should account for relationships between price per square foot, assessed value, and current market value.

You can perform an ACR on the anniversary date of purchases, do a batch each quarter, or fill up your "slow" month and handle them all at once.

Make sure to create a nice looking bound package, mail it with a cover letter, call the client to tell them you sent them something, and follow up with a phone call in a week or two to review the findings. Easy!

What if it's bad news? Most clients will appreciate your candor—better this news comes from a trusted advisor like you than a stranger. Besides, you don't want clients making serious life and financial decisions based on faulty information.

Don't be surprised if annual client reviews become the single most important business generating activity for you. Yes, it takes a little work and you may have a lot of clients! Our advice: test 20 and see what happens!

When FHA Requires Lead-Based Paint Repairs

If you're interested in working with HUD REO properties and buyers who need FHA financing, you may come across appraiser-required conditions to perform lead-based repairs.

The only time lead-based repairs are required for an FHA-financed HUD REO property is when the property was built prior to 1978.

Lead-based paint removal, however, falls under EPA regulations. A contractor or investor may cure the paint issues, but an FHA underwriter will require a copy of the contractor's Certificate of Completion from an EPA or state provided lead-based paint training program. Repairs completed by owner-occupants do not require this training certificate, but do require documentation of the repairs.

And remember, the FHA appraiser's final inspection will only certify the repairs are completed, not that they were performed according to EPA guidelines.

This rule is required by FHA because renovation, repair, and painting activities such as cutting and sanding can disturb lead-based paint, creating hazardous lead dust, which even in small amounts, is enough to poison children and put adults at risk.

Don't forget to let your renovation-minded clients know!

8 Steps To Reduce Property Taxes

As the sluggish economy drags on, county boards everywhere are looking for ways to replace lost income, and re-assessments of residential real estate taxes is just one of those ways. Sometimes it's fair, other times it avoids belt-tightening. If your property taxes have been raised and you feel it's unfair, here is how to prepare to meet your assessor for a review to lower them:

1. Look for reporting mistakes. Examine the assessor's entire property description. Note discrepancies and document them with blueprints, surveys, photos or other inspection reports.

2. Compare neighborhood assessments. Are other homes in your neighborhood assessed similar to yours? Check the web first; some counties post assessments online.

3. Compare current sales. Talk to a local real estate agent (if you need a referral, I'm glad to help) and get a report of comparables sold within the last 6 months. Sold homes count, listings don't.

4. Take pictures. Document where your home needs repair compared to other homes in better shape in your neighborhood.

5. Get a new appraisal. If your home is unusual or hard to "comp" this is the one time it can work in your favor. If you recently refinanced and the value is lower, use that report instead.

6. Get your contract. If your taxes increased soon after you purchased, values probably haven't changed that much. Document with your purchase agreement.

7. Are you exempt? There are many special exemptions: homestead, mortgage, senior citizens, veterans, disabled persons, and even energy-efficiency. Check with your county and check them all.

8. Prepare your case. In writing, briefly and professionally describe why you are entitled to the reduction, followed by documentation of your reasons. Make sure you have any required forms completed and know all deadlines for your appeal.

Amp Up Your Database

How To Capture "Orphaned" Clients

Since the housing crisis began back in August 2007, over 400,000 Realtors have "left the building." One reason for this, according to Lawrence Yun, National Association of Realtors Chief Economist, is that many who flocked to the industry for a quick buck around five years ago have left the business to pursue the same elsewhere.

But there are many different reasons people leave the business—from relocation to retirement—so who's looking out for all those former clients now?

The one who keeps in touch with them is the one who will win their future business.

Follow these easy steps to capture these potential clients:

1. If an agent is leaving or has left the business, ask if he would be willing to leave his clients in your care. If his answer is yes, ask if he would vouch on your behalf with an introduction letter. Volunteer to create this intro marketing piece yourself, or it may never happen. Then before he leaves, ensure to collect his list of database contacts either on a spreadsheet or out of his contact management system.

Alternatively, if you're part of a real estate brokerage, ask your broker for a list of "orphaned" accounts and database contacts.

Add them to your contact management system and start a marketing campaign to this group.

2. Send your introduction letter, explaining to this new group of clients that their former agent has left the business, that you'd like to keep in touch with them, and that you'll be calling in a few days to say hello.

3. Follow up with a phone call as promised to obtain an idea of their status, and request permission to gather their email address to keep them up-to-speed on what's happening in local real estate. This will also be their permission to be added to any sort of email marketing campaigns.

If anyone is going to add a slew of new names to their database by following up with these clients—while reaping the future income and referrals they can bring—shouldn't it be you? 

Get Fast Business from Twitter

Think Twitter can't help your business grow? Think again! Gary Vaynerchuck, founder of WineLibrary.com, and author of Crush It, knows how to get business, fast. In a recent LinkedIn article, he showcased 13 real-life tweets that real estate agents can answer directly. Not only does this bypass advertising costs, but it goes right to the source of their business: consumers looking for real estate. For example, the following tweets below were from real househunters: This one-to-one approach is under-utilized because agents (and many other business owners) tend to think spending money on billboards, print, and banner ads is more effective than direct engagement with prospects. Vaynerchuck doesn't think so: "People are acting more and more human on the internet. And humans want to talk to other humans, not to banner ads." Ready to try it? Head over to www.twitter.com/search and enter terms like "house hunting" along with your city, and happy house-hunter hunting!

� Vantage Production, LLC. All rights reserved.

Homebuyers Still Worried

So you know your MLS database, you know your market, and you know  what your area has to offer from schools to entertainment--but do you know  what your prospective clients are thinking right now?  Knowing that can help you add a string of happy clients to your database this season. According to a June 2013 survey of U.S. home buyers by Harris Interactive  and Trulia.com, this year's crop of home buyers is worried about, well,  just about everything. Here are the overall "Worry Survey" results: The top concern overall is that mortgage rates will rise too high too soon and  price buyers out of the market, followed closely by home prices rising too fast.  What's the main difference between hotter markets and average ones? Buyers  in hot markets don't seem as concerned about qualifying for a mortgage.

© Vantage Production, LLC. All rights reserved.

4 Steps to Develop Your Niche

"Know thyself" - Ancient Delphic maxim

When you develop your niche, be it working with a certain neighborhood or property type, prospects respond to your expertise and enthusiasm. Prospects are less attracted to agents not working in their strengths and sense their apprehension. Ask yourself these four questions to discover your niche and prospect type:

What market do you know best? Just as there's no single housing market in the country, there are multiple markets within each city. Where are the bulk of your sales located? If you don't know off the top of your head, investigate your sales history. Next, ask why? Do you live there, or do you have your finger on the pulse for another reason? Knowing that reason is your head start.

Who do you care about most? Do you sympathize with first-time home buyers or do you know how to represent move-up buyers better than anyone? Here's where your previous job experience, education and specialized knowledge can come into play. This will help you develop an understanding of your "favorite" buyer or seller profile–the types who come to you over and over again.

What's your property passion? Are you the Condo Queen or the Golf-Course Guru? Perhaps you're interested in land, historic homes, horse property or new construction. Your property preferences should translate well to your prospects and customers, building their confidence and trust in your expertise.

How about hobbies? Classic cars or motorcycles, fitness and outdoor sports, dogs or horses? Clients want to work with people who like the same things. Common ground is a great way to build rapport and put stressed out sellers or shoppers at ease.

It doesn't matter what your list looks like, it's totally unique, and that's going to attract your group of clients. Light up those differences like a beacon in your marketing. Let people know what you care about most and your breakthrough niche is just around the corner! 

Productivity Tip: the 2 Minute Rule!

This is a terrific productivity tip from the book Getting Things Done by David Allen.  I have implemented this strategy in my daily workflow and have seen it pay huge dividends.  It is almost impossible to believe I have done without it for so long!

FHA Makes Changes to Mortgage Insurance Premiums

What Does This Mean for Your Home Buyers?

FHA recently increased monthly mortgage insurance premiums on the most standard FHA loans.

How will this impact your home buyers?

This will only slightly increase a home buyer's monthly payment.

For example, on a $175,000 loan amount the payment will increase by about $15 per month, based on the new premiums.

Another change is the length of time the mortgage insurance will remain in effect. This is inconsequential however, since rarely do borrowers keep loans for the full life of the loan.

Even though monthly FHA payments will increase a bit, FHA still remains the most flexible and affordable loan program for buyers with less than a 5% down payment.

The good news is that home loan rates are still at historic lows right now, and it's a great time to purchase a new home. If you have any questions regarding these changes or would like to discuss how I can help one of your home buyers get qualified for a mortgage, please feel free to call or email me.