Have you been feeling frustrated at clients who don't seem to be able to make a decision? At the beginning they seem interested in buying, either they've contacted you or you contacted them. Then as they see some homes and may begin listening to the news about today's marketplace, they start to get cold feet.
They don't return your phone calls or e-mails, and when you finally reached them they say, "I'm not sure this is the best time to buy. I've heard prices may get lower."
At this point you can either get exasperated and give up or you can give them a good reason to buy now, one that they can't refuse.
This is a simple three step process:
First, say to them, "Did you know that Donald Trump is buying up as much real estate as he can right now?" Client, "No, really? Why?" You respond with, "Donald Trump is a very smart businessman, wouldn't you say? What he knows that other people don't know is that this is the best time in history to buy. Prices are at an all-time low and so are interest rates. It doesn't get any better than this. So he is getting great deals all over the place." After this, your client will probably say, "Wow I didn't know that." You respond with, "If you're excited about this, then let's get you a deal."
Notice the invitational quality of your last statement. Who can resist a deal? Isn't this an irresistible statement? You are offering to partner up with them to help them make money.
Watch how quickly your previously "indecisive" clients start taking action. You've done your job to tell them the facts. You've backed that up with an offer to help them make money in the same way that Donald Trump is making money. There may be objections that come up.
Here is the KEY: if you are convinced that this is the best time to buy, then they will be too. People can sense the depth of your conviction, so convince yourself first and then you will be attracting your ideal clients
About the author:
Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.JerrySellsOrlando.com for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.
Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011
(Copyright © 2008 By Jerry LaRose, P.A. All Rights Reserved.)
Consumers are proving they can turn back time on identity theft by following a prescribed program of diligent document protection and criminal deterrence.A well-measured program of preventive steps can protect your identity from theft.ID theft-related fraud fell by 12 percent in 2007 and 300,000 fewer adults were victims, according to the latest from Javelin Strategy & Research, the longest-running ID theft study in the nation.At the top of the list of reasons for the decline is "greater consumer vigilance and awareness," according to the report.When someone steals your identity, you don't wander around aimlessly like some John or Jane Doe. Someone pilfers enough of your personal identifying information --name, address, Social Security Number, drivers license, credit and financial account numbers and the like -- then masquerades as you to make purchases, withdraw cash or otherwise undermine your financial assets and your name.ID theft can cost you time and money (averaging $691, according to the report) to correct the misdeed and it can ruin your credit enough to prevent you from making major purchases including buying a home.Companies that manage personal information have improved their ID theft protection measures, but consumers who protect their own personal information is the first line of defense.
Here's what Javelin suggests.• Move your financial transactions online by turning off paper invoices, statements and checks, including paychecks, and replacing them with electronic versions where offered by employers, banks, utilities or merchants. Avoid mailing checks to pay bills or deposit funds in your banking account. Instead, pay bills online and use remote deposit check imaging services on online banking sites.This effort rubs out the paper trail. Crooks are more likely to steal information on paper, from personal belongings and through telephone calls, rather than online.• Monitor your accounts regularly online at bank and credit card websites. Americans who monitor their accounts online are most likely to uncover suspicious or unauthorized activity early.• Likewise, review your credit information frequently. You can do so three times a year for free at the federally-sanctioned AnnualCreditReport.com by getting one report, from each of the three major credit reporting agencies -- Equifax, Experian and Transunion -- in turn, every four months.• Reduce unnecessary access to your personal information wherever possible. For example, don't carry Social Security cards, unused credit cards or checks, and don't leave sensitive documents out in the open.• Never provide sensitive financial information over the phone or Internet, including Social Security numbers, passwords, PINs or account numbers, unless you placed the call directly to a verified and trusted location, such as the number on back of a credit card or statement.• Add your name to the federal Do Not Call registry and direct marketing opt-out lists to reduce solicitations that could be bogus.Even as overall ID theft has fallen, "vishing," criminals using telecommunications, voice over Internet protocol (VoIP) and like methods, is on the rise. That's because, as more consumers shift more transactions to secure online services, thieves are becoming more creative on the telephone claiming to represent non-profit and charitable operations.In the same vein, wireless phone accounts have become the most frequent types of new accounts opened fraudulently by criminals using stolen data. The trend exceeds that of fraudulent new credit cards, loans, checking or savings accounts.• Install and regularly update firewall, browser, anti-spyware, and anti-virus security software on your personal computer, and keep operating systems updated. Updates typically come with spyware, virus and other protections.• Consider placing a credit freeze on your credit report or your child's credit report if you know you won't be using credit for some time. Child ID theft is on the rise because thieves know you and your kid aren't likely to check the child's credit report for some time due to a lack of credit use. Check your state's "credit freeze" law. The cost may be nominal or free. The three credit reporting agencies offer the service for a fee.• If you are an ID theft victim, report it to the police, affected accounts, and call any one of the three credit bureaus to have a fraud alert placed on your account to prevent future infractions as you sort out the mess. Contact one bureau to place a fraud alert on your credit report and that company is required to notify the other two so that they too can place an alert on their versions of your report.
For years, the Veterans Administration has allowed "Jumbo" VA loans; it's just that hardly anyone knew about them. The current VA loan limit with zero down, is $417,000, matching the conforming loan limits set by Fannie Mae and Freddie Mac. But the VA does make allowances for VA loans above that amount … way above. Say around $700,000.
Current Jumbo fixed rates are anywhere from 1.00 percent to 1.50 percent higher than conforming rates. That's a lot, and has many Jumbo buyers in a quandary. A 30 year fixed conforming rate might be 6.00 percent while a similar Jumbo rate could be 7.50 percent. That spread used to not be so vast. Prior to the current mortgage mess, Jumbo rates were typically about .25 to .5 percent higher than a conforming loan. But not so with a VA Jumbo loan.
VA Jumbo rates are near conforming rates, about .25 percent higher. And loans can be as high as $700,000. So how does this work?
First, if you're a qualified Veteran or Reservist, there simply is no better home loan out there with no money down. Period. Even when every lender on the planet was shouting "No Money Down!" for their home loans it couldn't hold a candle to a VA loan when comparing rates and closing costs. As long as the VA loan didn't exceed $417,000 ($625,000 for Alaska and Hawaii).
But a little "quirk" in VA lending allows for VA loans above that $417,000 as long as the veteran comes up with some down payment -- as with any Jumbo mortgage.
To figure out how much down payment a veteran will need, simply multiply the amount of the sales price over $417,000 and take 25 percent of that. For instance, a home sells for $650,000. Now subtract the maximum "zero down" VA loan amount of $417,000 and you get $233,000. 25 percent of $233,000 is $58,250. That's the down payment needed from the veteran.
That works out to about 9 percent down payment on a $650,000 home! As on all VA loans, there is a Funding Fee of about 2.2 percent of the loan amount but that can be rolled into the loan and not paid out-of-pocket. In this example, the final loan amount would be about $604,750.
With a conventional Jumbo loan, you'd need 20 percent down and pay a higher rate, say 7.50 percent compared to 6.25 percent.
Not all lenders will offer this program, so you'll need to do a little homework and even those that do may have their own VA Jumbo limits. But if you're in the Jumbo market and are VA eligible…give this program a hard look.
Update
Fannie Mae nixes extra five percent down in "declining markets." On May 16, the country's largest secondary mortgage market company, Fannie Mae, announced that it will no longer require borrowers to put up an extra five percent down payment when purchasing homes in areas deemed "declining markets." According to an NAR: "Fannie Mae had been hearing concerns from REALTORS and others for months that its declining-markets policy was bad for the housing market because it discouraged consumers from buying homes in markets hardest-hit by foreclosures."
Negotiation is back in style, and is likely to remain a necessary part of buying or selling a home in today's residential housing market.
Needless to say, you need to work with the best real estate professionals you can find in your area. In most cases, it takes a team effort to put a home-sale transaction together and see it through to fruition.
HOUSE HUNTING TIP: Successful negotiations usually require give and take by both parties. It has been said that the sign of a successful negotiation is one where both parties walk away feeling they have won. It has also been said that the key to a mutually acceptable agreement is that both sides feel a little wounded.
A must in this market is a commitment to exhaust all possible ways to put and keep a deal together before calling it quits. Recently, it looked like a purchase contract was about to fall apart. The buyers had originally offered a price that seemed insultingly low to the seller.
The seller set his personal feelings about the price aside and countered the buyers' offer at a price he felt was reasonable. The buyers accepted. As it turned out, the price was one that was halfway between the seller's list price and the price the buyers offered. Splitting the difference is often a winning strategy.
National REO Banks:
Regional REO Banks:
A Local REO Bank:Property Solutions Group LLC - St.Louis, MO REOs
Other REO Sources:
Now, If you see anthing of interest please give me a call so that I can get the details for you. Thanks
Get Your Home Ready To SellIn preparing your house to sell, ask yourself over and over if your house looks like someone else's dream house. Houses in move-in condition tend to be inviting to buyers; houses that are like new typically sell the fastest and procure the best price.With that in mind, here are a few things to consider when getting ready to sell:
ExteriorRemember the 60-second rule: that's all the time you have to create a good first impression! Mow the lawn, rake leaves, trim trees and shrubs that keep light out of the house and remove dead plants. Pick up tools, garbage cans, hoses, toys, and building materials and store them neatly in a storage area. Replace broken or missing roof shingles and straighten and clean the gutters and downspouts. Clean all windows and mend torn screens. Painting your house helps improve curb appeal more than any other fix-up! If you decide against painting the entire house, consider painting the front door, window frames and shutters. Seal or resurface the driveway and repair broken steps and walkways. Paint or replace your mailbox and post. Dress up the front yard with some simple landscaping.
Clean, Clean, Clean Step back for a moment and look at your home as if you were seeing it for the first time. Every room should be spotlessly clean, dusted and uncluttered. Steam clean the carpets and wax the floors. Wash the walls, windows and light fixtures. Tighten loose stair railings and clean all woodwork. In the event that you feel a project of this magnitude is better left to a professional, ask your real estate agent to recommend a cleaning service.
Entryway Use bright light bulbs in the foyer and throughout the house. Fill the house with a pleasant aroma, such as berries in the summer or cinnamon in the winter.
Living Room Replace the carpet if it's worn. It costs money, but you may find that you will more than recoup that cost when the home sells. Patch cracks and nail holes in the walls, and repaint walls in neutral colors, such as white or ivory. Nail down creaking boards and stair treads. Lubricate any sticking or squeaking doors. Open all curtains, and replace them if they are getting old. Add lamps and lighting if the house is dark. Set out fresh flowers.
Furniture Rearrange or remove furniture to make your rooms look more spacious. Too much furniture and too many knick-knacks make rooms look cluttered and small. One or two decorative items per surface are plenty, so pack the rest away.
Kitchen and Baths These rooms should sparkle! Clear off counters, and clean all appliances and fixtures. Scrub the floors and walls. Re-caulk tubs and showers. Clean these rooms thoroughly, and be sure they smell fresh.
Closets Take those things to Goodwill that you'll have to discard anyway when you move. Organize shelves and straighten shoes. Be sure that sliding doors operate smoothly and knobs on drawers are secure.
Utility Room Dust and wash the washer, dryer and water heater.
Light and Bright Do everything you can to brighten the interior. Replace wallpaper with white or off-white paint, and repaint shabby or dark walls. Open the blinds, and replace broken windows and window seals. Always maintain a comfortable temperature inside the house, even if you are away for an extended period of time.
If Buyers are saying that then Let them know that waiting may well make their home MORE expensive not less! How is that possible if the price drops? Unless the Buyer really does pay all cash even a small increase in intrest rates can wind up wiping out most if not all of saving from the price decrease because of the increased interest costs. And as article below indicates - interest rates are very likely to be going UP.
Here is a simplified example: On a $220,000 house if the price goes DOWN by $10,000 but interest rates go UP by only 3/4%, then the Buyers will pay $8,600 MORE in interest during the first 10 years and $17,200 MORE during the first 20 years. Pull out your financial calculator and check it out! Oh - the monthly payments are nearly $400 MORE per year too!
[Price NOW $220,000 - With a $20,000 down payment and $200,000 30yr fixed at 6% - will result in $111,263.58 of interest during 1st 10 years.
Price drops by $10,000 to $210,000 and intrest rates increase by only 3/4% - With $20,000 down payment and $190,000 30 yr fixed at 6.75% - will result in $119,952.26 of interest during 1st 10 years.]
So to paraphrase an old saying - A Buyer who hesitates may suffer a big loss!
There is a growing sense that the worst of the credit crunch may be behind us. And despite a tamer-than-expected reading for April, inflation is still very much a concern for many Americans.
So with that in mind, could the Federal Reserve be forced to raise interest rates before the end of the year....even in the midst of the presidential race?
The Fed has historically been reluctant to make significant policy moves in the months leading up to the election.
The market now seems to think that Fed chair Ben Bernanke may take action just a few days before Election Day on Nov. 4.
According to futures listed on the Chicago Board of Trade, investors are currently pricing in a 56% chance that the Fed will raise its benchmark federal funds rate by a quarter of a point, to 2.25%, at the conclusion of a two-day meeting on Oct. 29. Traders widely expect the Fed to keep rates at 2% at meetings in June, August and September.
There have been calls for the Fed to, at the very least, leave rates alone for the foreseeable future. Critics of the Fed have maintained that a relatively low federal funds rate, an overnight bank lending rate that affects how much interest many consumers and businesses pay on loans, has weakened the dollar and helped fuel the boom in commodity prices.
What do you Think?
I just don’t understand the course we’re on.Since when is it OK to just walk away from your responsibilities when things don’t work out the way you wanted them to? Many people treated their homes like a day-trade on the stock market. Now that their ‘gamble’ isn’t working out, they seek government bailouts (not unlike their lenders and mortgage companies at my expense as a taxpayer) or the ability to just walk off into the sunset to live a carefree stress-free life. What about all the people that WERE responsible, who didn’t wipe out every penny of their equity, who didn’t run out buying three and four condos, who lived within their means? Why is it now our responsibility to bail these clowns out? It’s just not right. I find myself having a hard time feeling sorry for all these people, especially when Washington wants to tap my tax dollars to bail all these irresponsible people out of their irresponsible decisions. And I’m not falling for all the whining. “Oh, I didn’t KNOW what was happening … Oh, I had NO idea my loan was adjustable … Oh, I didn’t know housing prices would EVER go down…” Are you kidding me? Please spare me the melodramatics.The marching masses of consumer zombies need to wake up and smell the toast burning, which just might be the two brain-cells they have left to rub together. You can’t just live buying everything you want, the minute you want it, and spend more money than you earn. Many people now live like indentured slaves. They owe more than they will ever be able to payoff in a lifetime. Hopefully, they learned their lesson and will encourage others not to make the same mistakes they made.I don’t know how this is all going to end, but I can tell you it won’t be pretty, and it will be a very long time until this whole mess is straightened out. You should forego your “now’s the time to buy” campaign in lieu of a re-education program that explains to people what they can and can’t afford on their salary – not some pie in the sky delusion on a suicide-loan with the hopes that the real estate market is going to take-off again at any moment. You’re perpetuating an already bad situation. Owning a home is NOT a given ‘right,’ it’s a ‘privilege’ – one that has to be earned and that includes responsibilities. That’s the message you need to be sending.
The nation’s foreclosure hemorrhage slowed a bit last month, according to Foreclosures.com. Lenders repossessed 74,570 homes following foreclosure in April, down more than 5 percent from March. April pre-foreclosures dropped 7.52 percent from March too, according to California-based Foreclosures.com foreclosure information specialists.“The sky isn’t falling, and the bottom of the housing market is in sight,” says Alexis McGee, president of Foreclosures.com.Foreclosures.com says its analysis is based on the number of formal notices filed against a property during the foreclosure process. That can include notice of default, notice of foreclosure auction, and trustee’s deeds/REOs (real estate owned by lender through foreclosure).In the 1st quarter of the year, 2.8 of every 1,000 households ended up back in lenders’ hands, up from 2.7 in 4th quarter 2007 (213,927 1st quarter filings vs. 197,736 in 4th quarter 2007). Quarter over quarter, 17 states actually had fewer REO filings in April.“That’s the good news. The bad news is that still 3.8 of every 1,000 households nationwide (288,497 REO filings) have been lost to foreclosure so far this year,” “Another 696,925 pre-foreclosure filings – 9.4 of every 1,000 households – have been recorded year-to-date with 179,046 filings in April.“The numbers tell us the economy isn’t dead,” “U.S. gross domestic product was not negative as many had speculated and grew 0.6 percent in the first quarter. Combine that with positive moves by government and industry – including the still-evolving FHA reform and tax credits, along with federal tax rebates – are making a difference. The S&P 500, after dropping nearly 19 percent Oct. 9 to March 9, has since rebounded 11 percent. New jobless claims were lower than expected, and even Treasury Secretary Henry Paulson is upbeat, predicting a pick-up in growth later this year.”REO filings YTD• Florida, 24,764 (4 per 1,000)Pre-foreclosure filings by household YTD• Florida, 25.6 per 1,000 (162,316 filings, leading the nation in total number of filings)
Will you wear blue?International Picture of the Year Here are two very touching photos honored this year. First Place:
First PlaceTodd Heisler The Rocky Mountain NewsWhen 2nd Lt. James Cathey's body arrived at the Reno Airport , Marines climbed into the cargo hold of the plane and draped the flag over his casket as passengers watched the family gather on the tarmac.During the arrival of another Marine's casket last year at Denver International Airport , Major Steve Beck described the scene as so powerful: 'See the people in the windows? They sat right there in the plane, watching those Marines. You gotta wonder what's going through their minds, knowing that they're on the plane that brought him home,' he said
'They will remember being on that plane for the rest of their lives. They're going to remember bringing that Marine home. And they should.'Second Place :
Second PlaceTodd Heisler The RockyMountainNewsThe night before the burial of her husband's body, Katherine Cathey refused to leave the casket, asking to sleep next to his body for the last time. The Marines made a bed for her, tucking in the sheets below the flag. Before she fell asleep, she opened her laptop computer and played songs that reminded her of 'Cat,' and one of the Marines asked if she wanted them to continue standing watch as she slept. 'I think it would be kind of nice if you kept doing it,' she said. 'I think that's what he would have wanted.' PLEASE KEEP THIS GOING!'No arsenal, no weapon in the arsenals of the world, is so formidable as the will and moral courage of free men and women.'-- Ronald Reagan- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Blue FridaysVery soon, you will see a great many people wearing blue every Friday. The reason? Americans who support our troops used to be called the 'silent majority.' We are no longer silent, and are voicing our love for God, country and home in record breaking numbers. We are not organized, boisterous or overbearing. Many Americans, like you, me and all our friends, simply want to recognize that the vast majority of America supports our troops.
Our idea of showing solidarity and support for our troops with dignity and respect starts this Friday -- and continues each and every Friday until the troops all come home, sending a deafening message that every red-blooded American who supports our men and women afar, will wear something blue. By word of mouth, press, TV -- let's make the United States on every Friday a sea of blue much like a homecoming football game in the bleachers. If every one of us who loves this country will share this with acquaintances, coworkers, friends, and family, it will not be long before the USA is covered in BLUE and it will let our troops know the once 'silent' majority is on their side more than ever, certainly more than the media lets on.
The first thing a soldier says when asked 'What can we do to make things better for you?' is ... 'We need your support and your prayers.' Let's get the word out and lead with class and dignity, by example, and wear something blue every Friday. IF YOU AGREE -THEN SEND THIS ON. IF YOU COULDN'T CARE LESS -- THEN HIT THE DELETE BUTTON.IT IS YOUR CHOICE. WE LIVE IN THE LAND OF THE FREE, ONLY BECAUSE OF THE BRAVE. God bless all our soldiers
I've learned that people will forget what you said, people will forget what you did, But people will never forget how you made them feel. It's your attitude and not your aptitude that determines your altitude.
Buying a home is probably the single largest investment most people make in a lifetime. By preparing yourself and your credit profile before a home purchase, you can ensure a smooth finance process and can potentially save thousands on your loan.
Start by checking your credit reports from TransUnion, Equifax and Experian
* To get the best possible mortgage rate, make sure your credit history is healthy and accurate. Aim to raise your credit score above 650 in order to qualify for most prime loans.
* If your credit score is not quite 650, focus your efforts on paying bills on time, reducing your debt balances, avoiding new inquiries and clearing negative inaccuracies from your credit report. It is possible to improve your credit score quite a bit over a few months.
* Make sure the information on your credit report is correct and fix any problems you discover. Give yourself 30-90 days for correcting inaccuracies. You can learn more about the dispute process in the "dispute" section of this Learning Center
* Found an error while reviewing your credit with the lender? Ask about the "rapid rescoring" process where your lender can submit a dispute and potentially improve your credit score in 72 hours.
* For a complete understanding of your credit history, check your 3-in-1 Credit Report and Credit Scores online.
Figure out how much you can afford
• The rule of thumb is that most borrowers can afford a home that runs about two and a half times their annual salary.
• Calculate your loan-to-value ratio to see how much you can afford to borrow by dividing the loan amount by the property's value. If your loan-to-value ratio is above 80% your rates may increase significantly. Find a less expensive home or save up for a down payment to lower this percentage.
• Calculate your debt-to-income ratio by adding up your monthly debts and dividing by your monthly income. A debt-to-income ratio under 20-30% is usually considered good and will help you be perceived as financially stable.
• Don't be afraid to start small. Just because you may qualify for a large loan doesn't mean that it is a smart financial decision to buy as large a home as possible. Take a careful look at your family budget and your housing needs before you decide how much you can really afford.
Pick a mortgage to fit your finances
• Fixed rate mortgages have a set monthly payment that remains constant through the life of the loan. The interest rates tend to be a bit higher on fixed rate loans.
• Adjustable rate mortgages give you a lower initial interest rate with the risk of it rising in years to come. If interest rates decrease you will have an advantage over fixed rate borrowers. Setting a rate cap about 5-6% above your initial rate will protect you from extreme jumps in interest rates
• Short term mortgages are loans with terms less than 30-years long. While these mortgages offer lower interest rates, they have higher monthly payments and more difficult qualification standards.
• Long term mortgages are loans with terms of 30-years or more. These mortgages have slightly higher interest rates but lower monthly payments, allowing for easier qualification
Improving your finances before you start to shop can help you save thousands on your mortgage. Reducing your loan rate by just half a point can potentially save you a whopping $22,000 over the life of a $200,000 loan.
Overcoming the misconceptions about the "credit crisis"
You’ve watched the news and read about it in the papers. You know, the “credit crisis” and how buyers need 20 percent down in order to buy a home? And even if you found a buyer with 20 percent down, lenders aren’t making loans anyway. So, why bother, right? Wrong!
We’re right smack in the middle of what just might be the biggest disservice ever perpetrated on potential home buyers. It seems the press just can’t get enough of all the gloom and doom in the housing industry. The fact is that mortgage money is as available today as it was a year ago and loans are being made this very moment with little or no money down. And, no, platinum credit isn’t required. You just need to know where to look. Who are these lenders? They’re right down the street.
Federal Housing Administration (FHA) loans are exploding onto the mortgage scene; recent estimates are that one out of five mortgages are FHA loans. FHA loans never went away, their reemergence is a result of the collapse of the sub-prime market. FHA doesn’t technically have a minimum credit score, although, in practice, lenders won’t approve an FHA loan with a credit score below 500. But that’s a far cry from the notion that an 800 score is the only thing lenders care about.
The best part? FHA only requires 3 percent down. 3 percent. And that 3 percent can come in the form of a gift or grant. FHA borrowers only need to have $500 in a transaction. All the while, FHA mortgage rates are as good or better than their conventional counterparts.
Low or no down payment, extremely competitive rates and easier qualifying. No wonder FHA is moving up the charts!
Please contact me if you would like more information about FHA loans or help getting into your first home. 407-580-7011
Jerry LaRose, P.A., Realtor, ABR, GRI, e-PRO, CLHMS, 407-580-7011
