Saturday, September 30, 2006

What To Look For In Older Houses

What should you look for in a home older than the 1950s? Of course, an older home will most likely be completely out of current building code, but most of those code violations have been persisting on the other 50 surrounding homes and have caused no problems. So, what is really important to look for? Probably the most important components of a house(and expensive to redo) are the foundation, plumbing, electrical systems, and roof.

When looking at a foundation, you should look for signs indicating that it is not level. Sometimes you can simply walk it and feel slopes. With pier & beam, the floors tend to slope towards the perimeter since rain and weather over 50 years has gotten to those outside piers and sunken them. With slab foundations, check for any cracks that may extend upwards across brick. With both, check for cracked tile inside the house or tears in sheetrock. The tears cutting across a tile or a sheetrock panel usually indicate some sort of foundation movement because basically the structure has moved enough to force a tear across a material rather than normal movement that just may crack or tear along seams or grout. Now, of course, if you have cracks or tears across seams or grout that are many millimeters wide, you may still have a problem. In the end, if you see any indication that there may need to be some leveling or foundation work, have a professional come out to do the measurements to be sure.

The plumbing system is another thing to check out. If the home is pier & beam, make sure your inspector runs water while crawling under there. It will be pretty obvious if you have leaks. Galvanized steel at about this time has run the course of its life, so if your home has steel, I would start shopping around for some bids to replace the system. Many older homes also have the iron drain lines, which again, at this age tend to break down. Check for especially green places in the grass where the drain line goes to the street, and you can guess that it is probably leaking. And again, the inspector should see the drain lines when under the home. If you have slab, you can perform a static test, where they fill your drain lines up with water while stopping it up at some clean-out point outside, and then watch to see if the water level drops. If it drops, then water is leaking out somewhere. The static test for slabs is especially important if the foundation has moved; otherwise, it is not typically done.

The electrical systems can get real pricey, if you do a rewire. Look for grounded outlets and have your inspector test all the outlets even if they look like 3-prong grounded outlets because many times the 3-prong is deceiving and there is no ground. You can also look at the panel box outside and it will be somewhat obvious if the box is all rusty & old, or if it looks recent. Your inspector should be able to let you know if the box has enough amps to power your household. Remember that these homes in the 40s had no central AC, computers, microwaves, etc., so they did not need as many breakers as a modern day house.

The roof is important obviously because it keeps the rain and water damage out of your home. You want something with a pitch, preferably, to get that water rolling down your roof and off the house. Flat roofs tend to leak more and you should be careful and tend to them, to prevent water penetration into your home. If there are leaks, check out the decking underneath to see how much damage and possible rotting is going on by looking in the attic at the roof's underside. Gutters are always a plus to divert water away from rolling directly off the roof and near your foundation. Also, if you are putting in central Ac/ heat, make sure the roof pitch is high enough to allow for a unit & duct work.

Those are the main systems to check out and some things to look for yourself. Of course, always have an inspector go over the entirety of the structure before buying a home. He will give you the expertise to evaluate the home professionally.

Choose the Right Realtor

For most people, their home is the biggest investment of their life. Whether you're buying or selling a home, you want to be sure you're maximizing that investment. Choosing the right Realtor can make a big difference in how fast you find or sell a house, the price you pay or receive and the smooth completion of the transaction.

You'll need to do some research to find the one that's right for you. It's not hard, but it will take a little time; however, finding the right match will pay off in the long run. Here are some tips from AHA:

Go with a Pro

The terms agent, broker and Realtor are often used interchangeably. But not all agents or brokers are Realtors. The term "Realtor" identifies a real estate professional who is a member of the National Association of Realtors and subscribes to its strict code of ethics, which in some cases goes beyond state law.

Experience Counts

Whether you're looking for a Realtor to help you buy or sell a house, you don't want to be part of someone's learning curve. "One of the first questions you should ask a potential Realtor is how long they've been licensed and how long they've worked in the area," says Richard Roll, president of AHA.

Get Referrals

Friends, neighbors and co-workers are often good sources for referrals. Get as many details as possible about their buying or selling experience with a particular agent. Were they happy with the service they received? Would they use the Realtor again? You can also check the local yellow pages or search the Internet to scope out your options and find leads . If you're selling, look for sold signs in your neighborhood.

Think Locally

"Both buyers and sellers should look for a Realtor who is familiar with the area," notes Roll. "Ask what they have sold or listed in the neighborhood recently." If you're buying, a Realtor should be able to provide you with information on the community, the schools, taxes and other facts. If you're selling, you want your agent to be able to talk to prospective buyers about these details.

Use the Right Type of Realtor

Should you use a conventional Realtor or a buyer's broker? Many home buyers don't realize that Realtors legally work for the seller. They're making their commission from the purchase price, so they want to sell a house quickly and for the most money possible.

A buyer's broker, on the other hand, represents the best interests of the buyer, and is an option that's growing in popularity. Buyer agents are bound to keep anything you say to them confidential. Since they are not working for the seller, they are less likely to try to gloss over any problems with a particular home and do their best to make sure you find a home that is right for you. However, you will have to pay the fee for a buyer agent, either an hourly fee or a commission based on the purchase price. The key is to make a better deal on the home that you buy to cover the cost of the assistance the agent provides.

Dual Agents work out of a traditional real estate office both as a traditional agent and a buyer agent. They can take on buyers directly as clients, but since they work in a traditional real estate office, they can also represent the seller. In this situation you need to remember to keep your comments spare and look for the best deal. A dual agent cannot negotiate on the buyer's behalf and cannot recommend specific terms, including a purchase price. If you want a true buyer broker without dual agency, be sure to look for an Exclusive Buyer Broker. Split Agents do the same type of work as a dual agent, in that they can represent the buyer or seller. The main difference is that they never represent both in a transaction. If you hire a split agent as your buyer broker, they are bound to the same rules as an exclusive buyer broker. Everything you say is held in confidence and they work solely and completely in your best interest.

Discount and e-brokers provide even more choices to home buyers and sellers. Both charge less than the typical 6 percent commission for their services. Discount brokers function much like a conventional agent. However, they may not provide the full range of marketing services you would get from a convention agent. Most e-brokers do not have a "brick and mortar" office, which cuts down their overhead costs, a saving which they pass on to consumers. When using an e-broker, you'll typically do most of the work yourself: checking the MLS listings, making a list of properties you'd like to view, weeding out the houses that aren't a good fit for you. The transaction takes place mostly online; when you have some houses you want to see, you contact the e-broker and they put you in touch with a local agent.

Another option as a buyer is to try to go it alone, searching through the papers and looking for listing signs as you drive through different neighborhoods. This is not recommended for first time buyers, but if you are a hardy soul and want to take on the task, make sure you do your homework on each property before signing anything. Be sure to go through the remaining sections of AHA's Home University 1st Time Buyers course, so you will know how to protect yourself and make a good deal.

Stay in your range

Whether you're buying or selling, choose a Realtor who concentrates on your price range. For example, if you're looking to buy a house in the range of $250,000 to $300,000, you should check the real estate listings in the local paper to see which Realtors are listing houses in that range. A Realtor who focuses on more expensive homes won't be as knowledgeable about what's available in your price range.

Interview a Few Candidates

Once you've done some background work, set up interviews with three or four Realtors you're considering. You might also want to visit open houses to observe the agent in action. Are they familiar with the property, the area, the real estate transaction? Did they show the home in a professional manager? Did they seem enthusiastic and were they easy to communicate with?

Don't Let an Agent "Buy Your Listing"

If one agent says he or she can sell your house for substantially more money than the other agents quoted you, they're probably telling you what they think you want to hear in order to get your listing. Or, they may not be familiar with the market in your town or neighborhood. "Statistics show that properties which are over-priced when they are listed stay on the market longer and sell for less than if they had been properly priced from the start," says AHA's Roll.

Agree on Expectations

If you're selling a house, ask your agent to put together a written marketing plan detailing the steps they will take to sell your home. The agent should offer advice on how to prepare your home for the market and who has enthusiasm for your property. If you're buying a home, make sure you know how often your agent will supply you with listings, how many houses you can expect to see in a week, etc.

Look for a Personality Match

Once you know you've narrowed your search down to qualified professionals with the right expertise, make sure you choose someone you trust and who you like. "Regardless of whether you're a buyer or a seller, you'll be spending a lot of time with your Realtor and it should be someone you feel compatible and comfortable with," says Roll.

How To Negotiate Real Estate Commissions When Selling A House "As Is"

A real estate commission is a specified charge, which is paid to the agent or the broker hired for the purpose of selling a house. To avoid being duped by paying unreasonable amounts of money as commission, it is advisable for sellers to study the market themselves and get to know the general range of commission rates first. In reality, the commission rates are never fixed and most of the states forbid the Real Estate Commissions from doing so. This means that the agents can quote any price they like as long as the customers are willing to comply with the demands. However, this does not imply that the customers are compelled to pay the stated rates; they have the option of negotiating as much as their negotiation skills allow them to. The competition factor between agents also helps keep the commission rates from soaring too high.

The rules of estate commissions

Usually the Realty companies set the minimum and maximum rates of commission and leave the finalization of the rate to the brokers. The agents however, are not allowed to discuss their company commission rates with agents of different realty companies. No realty company is allowed to advertise its rates to attract customers. The commission to be paid to the seller's agent is decided when the listing contract is being drawn and the commission payable to the buyer's agent is determined when the contract for the sale of the estate is being written. Usually, the total commission is divided equally between both the agents.

Tips to negotiate

Here are certain pointers for you to keep in mind when you try and negotiate the commission payable to you real estate agent:

Study and calculate the value of your home and draw an estimate of how much would be the ideal commission charge for that value.

Enquire about other homes in your area that have been put up on sale and find out how much those owners are paying their agents.

Keep a track on the market trends, whether it is favoring the sellers or the buyers. In case it is supporting the sellers, then the negotiation power lies more with the sellers.

Make a precise budget before negotiating the commission rate.

Before hiring an agent, make a background check to see if he is adequately qualified to carry out the job. Carefully observing the agents' weaknesses and use them to your benefit.

Discuss payment options other than straight commissions such as a flat fee or a dual fee. The dual fee states that a certain percentage will be paid if the house is sold for more than a specified rate.

Alternatives

In the situation where you do not manage to find an appropriate agent or broker, you can always sign yourself with a real estate firm that charges a flat rate instead of any percentage. Moreover, if your house is in a good condition and well maintained, you will not only pay a nominal fee for the sale procedure but also get a good value for your house.

Caution

It is advisable that individuals wanting to sell their house do not fall for tempting offers made by certain agents who promise to sell the house at a higher price, and in turn, charge a higher commission. The customers should also be wary of the agent who says that the value of the house is very low and would require a lot of effort and time to sell. These are just tactics to extract as much money as possible from the client.

Vote No on Proposition 90 In California

Do you live in a Mobile Home Park and rent a mobile home? Do you want your rent gauging stopped? Did you know that Rent Control Ordinances and the Mobile Home Residency Law could be lost if the initiative passes.

We the people that live in Mobile Home Parks must all unite and defeat Proposition 90. If we do not defeat Proposition 90, we the owners of our Mobile Homes are in a world of trouble.

We could lose our homes.

For more information on Proposition 90 - Go to Californians Against the Taxpayer Trap =>noprop90.com/facts/

There will not be any rent control and the park owners can raise the rent anytime, and any amount.

We the Mobile Home owners must speak out. Have meetings in your own individual park and discuss this matter. Make sure everybody in your park votes. If there are home owners who do not drive set up transportation for these people to get to the poles or make sure there book is filled out ahead of time and mailed.

7 Tips to Real Estate Agent’s Success: Tip #2 - Embrace a Planning Attitude

As a real estate agent, if you don’t have a real estate business plan, then you are on some else’s plan – usually the successful real estate agent. Most people place more value in planning a trip to the grocery store or a vacation than planning their lives either professionally or personally.

Think of a recent vacation or even a simple trip to the grocery store.

* How much time did you take to plan that special vacation?
* How much time did you spend in writing that grocery list?
* What happened when you left the grocery list at home?

Now think about taking that time and directing that time towards your real estate business.

* How much more successful could you be?
* How would you reallocate your resources if you had taken the time to adequately plan the use of those resources?

Consistent planning begins with an attitude. When individuals embrace a planning attitude, their behaviors will demonstrate the results of that attitude. Of course, attitudes begin within our belief systems – those foundational thought processes that have evolved from all of our experiences.

Positive attitudes can be developed and maintained by understanding that we as individuals have total control over what we keep in our brains. If we think that planning is not necessary, then we will develop negative attitudes about planning and those attitudes will be demonstrated through behaviors that do not include planning. However, if we embrace positive attitudes about planning, then planning will be part of our behaviors.

Within the real estate business, planning is not new. Real estate agents enlist planning from showing homes to making offers to closing the sale. The challenge is to take those skills and integrate them into planning the business.

To infuse planning with your real estate business start with one bite instead of trying to eat the entire elephant. Begin by writing down short lists of what you what to accomplish each day and how best to use that time. Then, take the time to develop a strategic plan indicating who does what by when.

If you came into the real estate business from another profession that required you to work 40 hours, then you should be spending the same amount of time working in your business with another 5 hours per week working on your business.

The ON focuses on planning and execution with the desired results being as least as successful as you were in your previous professional life. Remember, no one plans to fail, they just fail to plan.

P.S. Read 7 Tips to Real Estate Agent’s Success: Tip #1 - First and Foremost YOU are a Business

Leanne Hoagland-Smith quickly doubles results for her clients from individuals (small businesses owners, entrepreneurs and young people) to large organizations by creating executable strategic action plans along with the necessary business skills to pull it off. By closing the gap between today's unsatisfactory performance to tomorrow's goals, limited resources are maximized with waste including time being reduced. Please feel free to contact Leanne at 219.759.5601 or visit http://www.processspecialist.com/ and explore how she can help you.

The Advantages Of Getting Help From Experts

There are so many people who come to Las Vegas year after year in search for good investment opportunities. Many of these people who come to Las Vegas to invest have realized profits from their investments however there are also many who have lost a lot of money investing in Las Vegas. If you are a first time investor in Las Vegas, you should never attempt to invest in this part of the world without getting help from brokers and agents. The reason why you need to get a broker or agent is that there are many considerations that you must take before you invest into something especially if such investment would involve personal properties that cost a lot of money.

It is not difficult to find a good agent or broker to help you in Las Vegas. There are a number of good brokers and agents in Las Vegas who could help you get the best value for your money. The easiest way to find good brokers and agents in Las Vegas is to surf the Internet and look for reputable organizations of brokers and agents. Once you find the right organization brokers and agents, inquire from the organization about their members and ask for referrals. You can ask referrals through an email or you can call them by phone if you prefer to talk to someone instead of sending an impersonal letter. It is always safe to go through organizations of brokers and agents than to just simply approach certain agents and brokers, which you have just met for the first time.

States That Do Not Recognize 1031 Tax Exchange

This article looks at states that do not recognize 1031 tax exchange. While Section 1031 is part of the United States Internal Revenue Code (IRC), it is important to know whether the same rules apply to State taxation for those states that have income taxes. Some states simply follow the rules of the IRC, while others have completely separate set.

While IRS Section 1031 allows any US investment or business real property to be replaced tax free with any other investment or business real property anywhere in the United States, there are states that do not recognize 1031 tax exchange. These states only allow an exemption from State taxation if the replacement property is located in that same state. If the proceeds are reinvested into property located outside of that particular state, it will be considered a taxable event and state income tax will be payable.

Besides costing investors the State taxes, this will also require them to keep track of a separate higher cost basis for the replacement property for State tax purposes than is to be used for Federal taxes.

Currently, it is our understanding that the only two states that do not recognize 1031 tax exchange (Georgia and Mississippi) will only honor the tax free status of a 1031 exchange if the replacement property is also located within their borders. Rules do change, so double check with the State tax authorities.

For the other states that do recognize a 1031 exchange, and do allow capital gains that had accrued on their properties to be rolled over into other states, they will expect the deferred taxes to be paid if and when the replacement property is disposed of in a taxable event. But in practical terms, this hardly ever happens because honestly, most times investors aren't telling, and more importantly, states aren't actively pursuing that information. Still, you would hate to be made the test example.

Finally, some states also have different rules, including special tax withholding requirements, applying to sellers of in-state properties who are not residents of those states. The list includes California, New York, and Maryland.

7 Tips to Real Estates' Agent Success: Tip Number 3 - Research Your Market Plan

The real estate agent is responsible for his or her marketing expenses. Therefore, doing the research specific to the marketing plan within the strategic plan is critical to earning a positive return on investment. Time spent in constructing the marketing plan is definitely well spent. NOTE: Remember a business plan usually is financially data driven, while a strategic plan not only integrates financial data, but identifies who does what by when through specific W.H.Y. S.M.A.R.T. goals.

Hopefully by now, if you are a real estate agent, you are beginning to embrace the idea that you are a small business owner. Every successful business requires a planning attitude along with a strategic plan. Within that plan, there should be research on your market including:

* Potential marketplace
* Strengths and weaknesses of the competitors
* Strengths and weaknesses of your own business which means YOU
* Your products and services
* Segment or niche market opportunities
* Any competitive advantage

This market plan is a big picture and you should not become bogged down by minute details. Estimating the market place is OK. Use the Internet to research your competitors and talk to anyone who has sold or bought real estate property. Even these informal and subjective conversations will help you better understand your marketplace.

Also take an inventory of the marketing tools with your marketing toolbox:

* Business Cards
* Prestige Pieces e.g. Brochures
* Referred Lead Prospecting
* Trade Shows
* Newspaper Advertising
* Radio Advertising
* Television Advertising
* Breakfast Clubs
* Seminars or Workshops
* Customer Relationships Management (CRM)
* Lead Generating Organizations
* Advertising in a professional organization e.g. Chambers of Commerce
* Paid Leads List
* Marketing Assistant
* Give-Aways

The tools within your marketing toolbox should be in alignment with your overall marketing strategies that were developed from your market research. A well developed marketing plan will enable you to spread your message to your target market and ultimately help you work smarter not harder in realizing more paid commissions.

Triple Net Lease: Own A Property? Get The Maximum Out Of It

A triple net lease designates the tenant or lessee as being solely responsible for bearing all the costs related to the asset being leased. The landlord and the tenant come to an agreement where the tenant agrees to pay all taxes, insurance and miscellaneous expenses on the property in addition to any normal fees that are expected under the agreement. The concept of Triple Net Lease has been very popular in commercial building leasing because it reduces the owner's need to worry about spending time and money for monitoring property conditions and providing maintenance.

The basic idea of a net-net-net lease is for the lessee to assume responsibility for all property's expenses, both fixed and operating. The concept is well accepted and employed in all traditional sale-leaseback transactions for long-term lease of larger properties. Both the owner and the lessee agree upon a lease document stipulating that the tenant bears the operating responsibility for the property. In recent years the triple net lease has become increasingly popular for leases of smaller properties. While there are many versions, triple net typically includes Taxes, Insurance, and Maintenance (TIM).

In a triple net lease, the rental component is separately identifiable in the lease, making the actual net investment return clear for property owners and investors. Unfortunately there are several pitfalls for the smaller property owner in regards to leaving the insurance of their building to the tenant. The tenant may willfully damage the property in order to claim insurance while experiencing financial troubles. In such a situation the owner will lose all claim to the insurance and has no fall back to claim losses against the tenant.

Most triple net leases require the lessee or tenant to cover costs to maintain the roofing, heating, etc.- practically anything related to the building that can wear out or be damaged during the lease period. If you are in a triple net lease agreement you will be excused of all property taxes and property insurance liabilities. You will be responsible for paying your utilities directly. You can budget your personnel expenses and costs for routine maintenance and secure a quote for a maintenance contract.

There are a number of important issues to be considered before entering into a triple net lease agreement, including cost of capital, future operating performance and relationship with the building. All parties in a triple net lease arrangement need protection against surprise expenses that can occur as the facility ages and components wear, requiring maintenance and eventual replacement. Some owners reduce their risk by establishing a reserve fund into which each tenant makes regular payments. The owner then covers property maintenance costs as needed from this fund. As tenants come and go, the maintenance fund is constantly replenished—with no surprise burdens for a single tenant or for the owner.

A triple-net lease via a 1031 exchange allows the investor to get even higher returns by deferring his/her taxes and thus increasing the overall internal rate of return. Various companies provide you with a quality selection of triple-net leased properties that are ideal for 1031 like-kind exchange investments. It is believed all interests are best served by regular inspections performed by independent professionals with extensive experience and expertise in evaluating and reporting on building conditions.

Buy Cheap Repossessed Homes From Government Auctions - 5 Tips

With the proliferation of government-sponsored foreclosure auctions of repossessed homes, people could shop for already existing homes. One source or venue of such existing homes up for sale is the government auctions.

Not surprisingly, governments, be it national or local, are always possessing homes from citizens and constituents who have in one way or another screwed out resulting to the confiscation or sequestration of their homes.

Here are several useful tips that could serve as a helpful guidance for you if you are planning or are already on your way to buying repossessed homes at government-sponsored auctions.

1. Inspect the home thoroughly and carefully. If you are still not an expert at this, bring along a friend or an expert to compare and validate the valuation of the home for sale.

There might be defects and small or even major ruins in the home that should be taken into consideration, for they may significantly alter or lower the home's tag price.

2. Do a little research about the former owners of the home. This can be a little hard to do, but it would satisfy your curiosity and never ending questions about the history of the house.

3. Government auctions are just like any other forms of auctions. People tend and aim to outbid each other.

If you desperately want to buy a home, just learn to let go and accept the fact that luck must go with you for you to own that dream house you have been eyeing for sometime.

Otherwise, if you compete with higher bids, you may end up spending too much or overpaying for the unit.

4. Focus on the tag price and always be reasonable and logical in weighing the prospects, or in analyzing if the investment would be a worthwhile and practical one.

5. Finalize the payment arrangements. Urgently indicate whether the mode of payment would be in cash, in checks, or in installment terms.

Cash payments usually are imposed special discounts, while installment basis can be sometimes convenient and lighter, though computing in the long term would reveal that the total amount could be much higher.

Real Estate Forms - Your "What's Hot" List

If you are involved in real estate, you know that no matter how simple the deal is, you will be tasked to prepare several documents, all of which are integral to its successful completion. If you miss out on one or a couple of the necessary supporting papers, your real estate transaction could be delayed, or worse, be rendered void. Even if it is time consuming and tedious, you really have to spend time poring over these papers, making sure that everything is in order and nothing is missing.

However, securing all the right papers is not that easy. To complete one real estate transaction, several forms are required and, if you are not that familiar with the business, you will, most likely get mixed up. You can ask professional real estate agents to help you complete all the necessary requirements, but they may ask that they be paid a professional fee for their services. Aside from the additional financial cost this will entail, you will have to adjust according to their schedule. If you are under time constraints, you also cannot afford to waste precious moments setting up meetings and schedules. If you are burdened with these conditions, it may be best if you did things on your own.

If you decide to attend to your real estate related business on your own, you don’t have to be overly afraid of missing out on the documents you need. There are websites that have been established with the aim of assisting consumers who opt to handle their real estate transactions themselves. These sites not only give valuable tips and information on how to properly market and sell their properties, they are also sources of all the necessary forms and documents needed in all kinds of real estate related arrangements.

To further aid the ordinary consumer, some of these real estate related websites have gone the extra mile by first categorizing all the documents according to what transaction these are for (selling, leasing, etc), then these forms are then further listed based on importance or popularity. Through this process, even the greenest of consumers will not find it difficult to select the forms they need.

If the form you need is not amongst the top ten or fifteen documents on the “what’s hot” list, there are specific tabs which one can click and the full listing of all the pertinent real estate documents will then be shown.

If you are still wary about conducting your real estate business on your own, prior to any marketing activity, make initial consultations with a real estate officer or a lawyer. During this meeting, ask them what the standard procedures are and take note of these. Ask as much questions as you would like, and clarify what forms you will need and what these are for. Once you have all the details you need, you can now proceed with your business with caution. Just before the end of your real estate business, you can opt to verify the accuracy of all the information you have written on these forms. Bring drafts to the real estate agent or your lawyer and have them checked. When he gives you the go signal, you can then finalize all the details.

The availability of legal real estate forms on the internet allows you to minimize your contact with professionals, who normally charge clients by the hour.

Mortgage Jobs Decrease Due To Housing Slowdown

Job cuts in the mortgage industry go hand-in-hand with decreased home buying and building numbers. With many companies trying to adjust to the stalling market, jobs seem to be dwindling.

Wells Fargo Home Mortgage, for instance, has eliminated several positions from across the country this year. The company has not specified exact numbers, but said that some employees not needed in the mortgage sector have been transfered to other business lines.

"Our long-standing commitment is to retain as much talent as we can," said Lynn Greenwood, a senior vice president for Wells Fargo.

Industry experts say that job cuts are unavoidable in a slowing market. Most analysts predict that there will be more cuts in the coming months.

Richard Bove, financial analyst for Punk Ziegel & Co., said that the downturn may become a painful experience for those in the mortgage industry. He noted that just this past week, three national mortgage companies have warned investors that they expect earnings to be negatively impacted for the quarter.

"Wells Fargo has a bigger commitment to housing than most any other company in the United States," Bove explained. "No matter how well-run they are, and Wells Fargo is one of the best-run companies out there, they simply won't be able to avoid this blow."

Bove disagrees with the company's insistence that the changes in jobs have been "minimal."

"They won't be minimal," he said. "I guarantee they won't be. Frankly, I'd be worried if they really were minimal, because they have to protect the health of the company at a time when the whole industry's sick."

Bove did say that Wells Fargo holds a competitve edge over other mortgage competitors, due to the diversity of the company.

"Maybe they won't find jobs in Des Moines, but maybe they'll find other Wells Fargo jobs," he said of the recent job eliminations in Des Moines, Ill.

According to the Mortgage Bankers Association, the slowdown is seen in the entire industry, affecting builders, lenders, real estate agents, brokers and credit companies.

David Seiders, chief economist for the National Association of Home Builders, said that he expects to see worse numbers in the next two quarters.

"There's no doubt the contraction is going to be larger," Seiders said.

Southern Pines, North Carolina Offers Small Town Southern Charm

Southern Pines, North Carolina is located approximately 60 miles south of Raleigh. It is adjacent to the world renowned Pinehurst golf resort. Many who come to this area for a visit or to play golf, end up falling in love with Southern Pines and the old southern town atmosphere.

Southern Pines was founded around 1820 as a train stop from the north and south. In fact, the railroad tracks run in the middle of the historic town. Through the year this charming town has developed into a resort community offering the best in golf and horse activities.

Many moved here to retire, but in the last decade numerous professionals, with their families, are escaping the urban sprawl for the tranquil lifestyle found in Southern Pines. Its eclectic neighborhoods surround a quaint and inviting historic business/shopping village with tree lined streets, restaurants to satisfy any appetite, coffee shops, art galleries and boutique shops that offer a full range of clothing and gift items.

There is always some activity going on downtown, such as the annual Blues Crawl, Spring Fest, Tour de Moore, Fall Fest and the New Years Eve celebration, First Night. If you like to commune with nature, within the city is the 500-acre Weymouth Woods, a wildlife refuge and long leaf pine forest offering hiking and educational nature programs. A popular attraction is the Sunrise Theatre, offering a variety of live music, avante garde movies and theatrical plays.

Southern Pines Golf Courses

Pinehurst may be known as the golf capital of the world, but Southern Pines also has its own world class courses. For example, there are three golf courses designed by the legendary Donald Ross. He is best known for designing the Pinehurst #2 course, which hosted two U.S. Opens recently. In Southern Pines he designed the Southern Pines Country Club, Pine Needles and Mid-Pines. Pines Needles has been home to the U.S. Women's Open for a number of years. In addition, there are three Arnold Palmer courses, the Talamore, Mid-South, and The Carolina. In Southern Pines we have very moderate weather all year long. That means we’re always open for golf.

The Aspen of Equestrian Activities

Southern Pines is also known as a horse lover’s paradise. The area's temperate weather and ideal sandy footing has attracted a large concentration of equestrian enthusiasts. What is commonly known as "horse country" generally refers to an area right around Southern Pines and includes the well known Walthour-Moss Foundation, which offers 4500 acres of longleaf pine forest dedicated to equestrian pursuits.

There are world-class trainers, the best veterinarian professionals available, and an abundance of tack shops and other proprietors serving horse owners and their needs.

Exceptional Real Estate Opportunities

Real estate properties in Southern Pines are available for every demographic category, ranging from upscale family sized homes in quiet, gracious neighborhoods to somewhat smaller retiree residences lining the fairways of the numerous golf courses in the area. On the outskirts of Southern Pines, you will find beautiful horse farms. For those who are looking for casual living in a golf community, horse country, or retirement venue, Southern Pines is a "must see" in North Carolina.

Southern Pines combines the north and south, old and new. It is especially appealing to both its residents and to those who visit. Southern Pines has a unique shopping hospitality. You can enjoy the quaint Broad Street downtown area, which looks the same as it did years ago, or you can visit the newer modern shopping areas. The attraction for the town is its horse farms, festivals, golf courses and street fairs. Anyone interested in combining city life with the charm of a small town will feel right at home.

Two of the most appealing features of Southern Pines real estate are the reasonable prices and the low property taxes. For those moving from big cities they are pleasantly surprised what their money can buy. You can get considerably more home and land for less.

Southern Pines, North Carolina is one of those rare finds where you have the best of small town living with the amenities of a city.

Direct Mail - A Thing of the Past?

For many Realtors, direct mail is a staple of their to-do lists. Holiday cards, promotional giveaways, just sold cards, new listing brochures, farming neighborhoods, and many more things get mailed every day by Realtors expanding their businesses. However, the National Association of Realtors recently released a study showing that 77 percent of buyers begin their home search online. Most Realtors would take this to mean that their website is now their most important tool to generate leads. So, what place, if any, does direct mailing still have with today's Realtors?

Price is Certainly a Factor

Compared to website maintenance, web ads, and email, direct mailing can be very expensive. In order to keep your name at the top of buyers' and sellers' minds, you need to mail frequently, as many as two or three times a month. Postage prices continually rise, and even the price of a postcard stamp seems oppressive when compared to sending off a quick email.

The cost of producing quality direct mail is steep not only in terms of dollars, but also in terms of time. Think of the hours you spend proofreading, designing, ordering, stamping, and addressing. Is it worth it? There are so many Realtors fighting over the same turf that many Realtors are increasing their farm areas and adding new territory. That budget just keeps going up.

How Is Direct Mailing Working For You?

A simple analysis of your return on investment will show if your direct mailings are still working for you. Do many of your leads mention that they received your postcards? Do former clients remark on your holiday cards and continue to send you leads? Do you feel that you have ample time to explore all marketing opportunities available and that you're not bogged down with mailing activities?

If you answered yes to these questions, there's no sense in changing a plan that works. However, always remember to do your research. If 19 of your last 20 leads found you through your website, maybe direct mail can be phased out of your marketing plan.

7 Tips to Real Estate Agent's Success: Tip #6 - Make Managing Yourself a Priority

Building a real estate business is not easy. You, as a real estate agent, must learn how to manage yourself especially in the area of time management, ongoing real estate sales training (continuing education units), real estate coaching and personal life balance. Real estate is said to be a 24/7 business much like any small business. However, it is important not to lose sight of your personal life including family, friends, physical health, etc.

Being a real estate business owner has many benefits from setting your own time to conducting business over lunch or the golf course. Yet, time becomes an even more precious commodity and other aspects of the real estate agent's life can suffer. Meeting clients during dinner can potentially harm family dinner time. Attending education classes can interfere with the children's or other family or social plans. Therefore, the real estate agent must make self-management a priority for 2 reasons: business success and personal success.

When individuals are focused and understand all of their priorities, they take the appropriate actions to ensure that their lives are in balance. From my experience as a performance improvement consultant and executive coach, I have personally witnessed over 90% of my clients having lives that are out of balance. Additionally, many of my clients and those to whom I speak have consistent issues of time management from "How can I take these classes?" to "How can I continue to make sales?"

During the last several years, I have asked the following question of small business owners from real estate agents to other professionals such as accountants, engineers, executives, financial advisors and lawyers: Do you waste 12 minutes every day? What is very interesting to note is most people say yes even if they have already acknowledged that their plate is full.

From this simple question, I know that self-management is really self-leadership: How do I lead myself to achieve my goals? Self leadership is both a skill and a habit that requires ongoing development. Learning these strategies or techniques requires not only new knowledge or refreshing old knowledge, but the help from a mentor and possibly even a real estate sales coach. Asking for help is not a sign of weakness, but rather of strength. Failing to ask indicates a potential for living Einstein's definition of insanity:

Doing the same thing over and over again hoping for different results.

When you have learned the art of successful self-management which is really self-leadership, then you will begin to achieve incredible results and having an amazing real estate business.

P.S. Read the previous tip 7 Tips to Real Estate Agent's Success: Tip #5 - Create a Financial Budget

Leanne Hoagland-Smith quickly doubles results for her clients from individuals (small businesses owners, entrepreneurs and young people) to large organizations by creating executable strategic action plans along with the necessary business skills to pull it off. By closing the gap between today's unsatisfactory performance to tomorrow's goals, limited resources are maximized with waste including time being reduced. Please feel free to contact Leanne at 219.759.5601 or visit http://www.processspecialist.com/ and explore how she can help you.

One quick question,if you could secure one new client or breakthrough that one roadbloack holding you back from success, what would that mean to you? Then, take a risk and give a call at 219.759.5601 to experience incredible results.

Mention that you read this article and receive a complimentary 30 minute coaching session.

P.S. If you are seeking an affordable speaker for that special event, Leanne may help fit your current speaking need.

7 Tips to Real Estate Agent’s Success: Tip #5 - Create a Financial Budget

Every business demands a financial budget and the real estate agent’s practice is no exception. Small business financial budgeting is critical given the historically ups and downs of the real estate market place. Your financial budget should plan for your marketing costs, any additional costs such as education and your forecasted income.

Most individuals recognize that a budget improves overall financial performance. Yet, when it comes to a business, many small business owners drop the ball and ignore this critical step in improving their own financial business success.

Projected profit and loss (P&L) are part of any business plan. Actual P&L figures can be found within any completed tax return. P&L statements can be quite complex if the organization has high dollar volume. For the typical real estate agent, P&L statements are quite simple and probably take only 1 to 2 hours per month to complete and review depending upon the agent’s record keeping whether software driven or paper and pencil. These projections should be monthly and followed up with actual expenditures.

A financial budget has 2 categories:

* Revenue
* Expenses

Revenue is determined by your products and services. Revenue should be broken down for the real estate person into listings and sales and tied to the marketing plan and overall sales goals.

Expenses need to be consistently measured and managed. Specific categories may include:

* Staffing compensation
* Staffing benefits
* Other staffing costs
* Dues and subscriptions
* Marketing (business cards to purchased leads' lists)
* Management fees
* Office supplies
* Professional fees
* Rent
* Internet fees
* Advertising
* Telephone
* Utilities
* Travel – gas
* Travel – lodging
* Travel – food
* Entertainment
* Education

Having a written financial budget will assist you in keeping within your projections. But, most importantly, a financial budget that you actively review will help to ensure that you are not one of the 40% or 80% who drop out after the first year and will allow you to be one of the 10% who stay within the real estate industry after 3 years.

Buying or Selling Real Estate: Make Your Decisions Based on Your Core Beliefs

Before buying or selling anything you should first consult with your core beliefs. For instance if you were in the need of a new car and you felt that over the long run gas prices were going to trend downward and eventually stay low than gas consumption would not be an issue in your decision making process.

If you are in your 30's or 40's considering health insurance and the plan you are reviewing does not provide for prescription drug coverage, you have to ask yourself....."Self....am I more likely or less likely to need prescription drugs in my future?"

This kind of base thinking helps you to make long term decisions.

What brings this topic up in today's blog is that I just traded e-mails with a person who lives in the Northwest, lets call him Tom. His concern is that the real estate bubble is about to burst and prices and values of properties are about to drop. Needless to say, if you've been reading this blog, we do not agree on this point.

Even though we do not agree we are both right, for the moment, based on our core beliefs.

Tom believes that the real estate run up has run its course and that the type of appreciation we have seen can not be sustained for the simple reason that if it went on who could afford a house? The price would soon out strip the general publics ability to buy. So his decision, for now is to wait. Perhaps for interest rates to come down, perhaps for inventory to go up, or maybe for home values to fall. In any case based on his core beliefs of today's market he has made a decision and is on a plan.

I understand that some may think I'm jaded, that my sole goal is to go list and sell more houses. That my job is to sell the idea of home ownership. To a degree this is correct. I think homeownership is one of the greatest things we have going for us in this country. I know that people in other countries would love to have the same opportunities that we have in the United States. We have choices of where we work, where we live, if and when we want to buy a home, if and when we want to start a family and when we do go to buy a home we have choices in style, price and almost an endless array of mortgage programs that allow even the youngest of us to be able to afford our first home.

Yes, over the past 18 months or so many markets have seen a double digit run up in values. Some of these areas may even see a roll back in the coming year. I think what sets the Northwest apart, for now, is the short supply of houses to meet the current demand by buyers. Even if our home values only go up by 8 to 10% this year, you are still way ahead of the game than if you were to choose to pay rent.

So, my answer to buyers who are considering whether or not they should buy would be....................YES! If you are going to be staying in the area for at least 3 years......buy now.

Interview and choose a good real estate agent, have them recommend a good lender, meet with that lender, get a good faith estimate. Choose a home that meets your needs and buy it. Because my core belief says that home prices in our area will hold due to increased government intervention it is becoming harder and harder to build, we are having more and more people who need homes and this is a pretty great place to live and bring up a family.

7 Tips to Real Estate Agent's Success: Tip #4 - Establish Sales Goals

Sales goals are just as important in real estate as they are in any other business. Successful goal achievement begins with using valid criteria and understanding the linkage between sales goals and strategic planning.

Within your strategic plan for your real estate business, there should be a sales plan. This plan centers around specific sales goals to secure the result of converting those who have received your marketing message to an actual selling or listing client.

After establishing specific goals, then your challenge is to monitor these goals to ensure achievement. If you are new to this industry, it may take 6 months before the first sale. HINT: Use the W.H.Y. S.M.A.R.T. criteria for goal setting.

Many real estate agents have goals, but very few have integrated specific goal setting criteria into their goal planning, goal setting and goal achievement process. The S.M.A.R.T. criteria:

* Specific
* Measurable
* Attainable
* Realistically Set High
* Target Date/Time Driven

are not new, but unfortunately, still not utilized as much as they should be.

One of the reasons for this is because the What’s In It For Me (WIIFM) or the W.H.Y. has not been included. All goals should be committed to Writing. When sales goals are written down, the intangible thought now has some substance and becomes more real. The paper can be not only actually seen, but also touched. Suddenly, the sales goal appears to be more concrete than just a wish or a dream.

Additionally, goal planning, setting and achievement is a process that should become a Habit of behavior. Weekly written grocery lists or the daily "to do" lists are habits that improve performance. Planning, setting and executing sales goals should become a habit that is consistently demonstrated on a weekly, monthly and yearly basis.

Finally, goals need to be Yours. Achieving goals for someone else usually are not successful because of the WIIFM. When the business sales goals can be translated into your specific goals, then you have greater ownership of the goals.

When the W.H.Y. S.M.A.R.T. criteria are infused into sales goals, successful goal achievement has been greatly increased. For example, using the industry average of 6% commission rate with 3% going to the listing broker and 3% going to the selling broker, the typical real estate agent averages 1.5% commission unless she or he listed and sold the property. If the sales goal is to earn $20,000 the first year, this means that the agent must achieve listings or sales of over $1.3 million. By the second year, the goal may have been increased to an income of $30,000 which translates into listings or sales of $2.0 million. By having the marketing research, the sales plan is data and market driven. Consequently, the agent can determine how many homes he or she needs to list or sell based upon the $1.3 or $2.0 million.

Sales goals are directly tied to the market plan within the strategic plan. Without goals, the real estate agent is embracing what I call the "spray and pray"sales technique.

Spray your sales efforts on the wall and pray that they will stick giving you a sale.

P.S. Read 7 Tips to Real Estate Agent's Success: Tip #3 - Research Your Market Plan

Leanne Hoagland-Smith quickly doubles results for her clients from individuals (small businesses owners, entrepreneurs and young people) to large organizations by creating executable strategic action plans along with the necessary business skills to pull it off. By closing the gap between today's unsatisfactory performance to tomorrow's goals, limited resources are maximized with waste including time being reduced. Please feel free to contact Leanne at 219.759.5601 or visit http://www.processspecialist.com/ and explore how she can help you.

One quick question,if you could secure one new client or breakthrough that one roadbloack holding you back from success, what would that mean to you? Then, take a risk and give a call at 219.759.5601 to experience incredible results.

Mention that you read this article and receive a complimentary 45 minute coaching session.

How to Create a Lifetime Customer When you Sell Real Estate

How often have you seen a customer buy from one agency and then a few years later, list with a different agency? I've seen it far too often! I always wonder if the agent did something wrong, or just didn't bother to turn that person into a lifetime customer.

I'll admit, real estate customers aren't known for their loyalty. In fact, if you list a house and it doesn't sell right away, they might take their listing elsewhere even if you've spent hundreds on advertising for them. But there are ways to improve your chances of keeping them. And there are ways to turn satisfied buyers and sellers into "Lifetime customers."

And remember, if your commission averages $10,000 per transaction and people move every 5 years, you stand to gain an extra $30,000 over the next 15 years. Then consider those buyers who like to do rehab. They sometimes buy more than one each year. Add in the friends and family each customer could bring you, and there's only one conclusion: Customers are worth keeping!

How to keep a listing: Stay in touch during the listing period. I can't count how many times I've gotten listings that used to belong to someone else, just because the sellers felt ignored.

So, rule #1 is "Stay in touch, even when it's difficult."

It is difficult to call and speak with the seller when there's been no action, but call anyway. You can tell him or her where you've advertised, how many flyers you've given out to office drop-ins, how many flyers you've mailed to long distance inquiries, etc. Perhaps you took new photos and posted them on your virtual tour. Whatever you've done, let the seller know you did it.

In my office we kept track of all activity and mailed a monthly report, along with copies of each ad we had placed in a newspaper or magazine. In addition, we called mid-month just to stay in touch. This practice was responsible for most listing renewals. The important point is, you must make sure that the seller knows you're doing something regularly to promote the house.

OK, you sold the house. Everyone passed go and collected their money. Now what?

Now you send a thank you letter with a brief questionnaire asking for feedback on your service. It will let you know what you did right - and occasionally you'll hear what you did wrong! Don't be afraid of that. Welcome that kind of feedback because it gives you the opportunity to make a friend out of an unhappy customer. Write back and thank them for letting you know and for helping your career by letting you improve your service.

Next, put those names and addresses in a data base and start staying in touch. Every 2 to 4 months is often enough, unless you know that they have friends or relatives who are about to make a move.

Send a magazine article about their hobby, birthday cards, a postcard with a funny joke, a pretty picture, or perhaps an article about getting the house ready for winter. Anything that will interest them and keep your name in front of them will do.

I wrote a monthly newsletter, and if I was late getting it out customers would call to see why it wasn't there. That was before email became so popular. Now you could do it electronically at zero cost if you write it yourself, and you could add a personal note to really special customers.

You're going for "Top of mind awareness," and you can only get that through regular contact. Your goal is for them to think of you first when anyone mentions needing a Realtor.

Home Sales Likely To Level Out

According to the National Association of Realtors, home sales are likely to level out during the next few months.

The Pending Home Sales Index indicates sales that sill be finalized within the next couple of months. Based on the contracts signed in July, the PHSI is down 7.0% for the month. On a year-to-year basis, the index is down 16%.

An index of 100 is the average level of contract activity during 2001 -- the first year of the index. July's index was 105.6.

"In looking at year-to-year comparisons, the pending home sales index has been very close in predicting the actual pace of home sales," NAR chief economist David Lereah said.

"Based on recent changes from a year ago, the index shows existing-home sales should continue to ease after a stronger-than-expected decline in July, but are likely to flatten in the months ahead."

Lereah continued to say that psychological factors could be attributing to slowing July home sales.

"We've never seen a general decline in the housing market against a healthy economic backdrop where jobs are being created, the economy is growing and interest rates are favorable," he explained.

"Pyschological factors are causing some buyers to remain on the sidelines, waiting for prices to stabilize or for more favorable news about the market and the economy. Contributing to this hesitency is a lot of negative news stories, but in the end we believe that underlying market fundamentals will prevail."

The PHSI for the West saw a decrease of 5.5% for the month and 20.3% for the year. The South experienced a decline of 6.4% for the month and 11.3% for the year. The Northeast PHSI dropped 7.7% for the month and 15.5% for th year. The Midwest index fell by 9.0% for the month and 20.1% for the year.

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