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Another Great Real Estate Listing Exchange!

It was a terrific turnout – we had 25 people attend. Thanks for all who came out to be educated! Here is a synopsis of what was discussed. Hope to see more of you next time!

Scott MacDonald:

Market Update…builders have said activity and contracts have been up. The summer lull is gone and activity is picking up. Great news for us! In talking to other agents, they are saying the same thing. It’s important to tell your sellers that the market is still price sensitive. There is still activity, but it’s important to get the house priced right to get it sold quickly. We are still seeing multiple contracts. BPO’s are picking up as well.

Leslie Wish – SunTrust:

Rates continue to be great. Phones are ringing off the hook with buyers wanting to close by the end of the November. It is better to close prior to Thanksgiving and not wait.
Lenders are skittish on condo loans because of litigation against the condo association – any litigation no matter who is suing whom, no conventional loans – FHA loans will allow “some” litigation. Lender questionnaire will bring to light lawsuits and delinquencies.

Scott Mayhew – NuStart Credit Restoration:

Pull credit report to see what issues are with the report. Typical problem takes 90-120 days. Process starts with letter writing – it is a must. The letter must state name, address, loan number, discrepancy, timeframe to correct and expectations of resolution. Only way to dispute discrepancy is to state the loan is not late or not mine – this is the only way to get it removed. The letter must be signed in blue ink. Lender has thirty days to respond with exact amount owed and details of delinquencies. Consumer must write letter – not company. Proof of accuracy letter must be returned by lender – if not, need to send another letter stating they have violated. Paying off credit cards end of month doesn’t give you a great credit score. Inaccurate data CAN be removed from credit report. If your mortgage is 30 days late, it will show up on your credit score is 100 point deduction, it used to be 40 points. Credit rating goes from M1 to M9. M5 is about a 40 point hit. Tell short sale clients to have bank say paid in full as agreed and not to rate short sale higher than an M3. Fee to correct is $395 one person $495 for two.

Keith Barrett – Champion Title

New HUD form is coming out January 1st – you have to be prepared if you want to keep clients happy. Get caught up on all the changes at 4900 StoneCroft Blvd., Chantilly, VA 20151 on October 28 from 2pm to 4pm.

What in the world is going on with Northern VA real estate?

Well, we are starting to see more activity lately at our listings, more homes are selling than are going on the market reducing our inventory levels, builders are seeing increased activity and sales as well, rates continue to fall, prices are remaining stable, and now is a fantastic time to be in the Northern Virginia real estate market whether buying or selling. What else could contribute to our market? We continue to have low levels of unemployment locally compared to the rest of the country – which is a huge positive for us. As a matter of fact, Virginia was ranked number 1 for the 4th consecutive year as the best place to do business. Jobs drive the housing market – just look at Detroit as an example of how employment has affected their total real estate market.

What is on our forefront? There continues to be the threat of more foreclosures coming on the market but we haven’t seen it here in our area yet. We have the impending expiration of the First Time Buyer $8,000 Tax Credit or do we? In speaking with the Former Governor, now Senator, Mark Warner, he indicated he was voting to extend the credit. Many others in support of this initiative believe this will keep momentum moving in a positive direction with our recovery from the recession as the Housing Market has such a large impact on our national economy. Interest rates may creep up – but they are so low, they have to increase at some point. Basically, as stated above, we are fortunate we have the fundamentals to be one of the top real estate markets in the country.

Cast your Vote!

Vote for Scott MacDonald for NVAR Board of Directors!
Friday's the deadline, so cast your at www.nvar.com today!

An enlightening weekend

As a Realtor, you never know who you will run into to discuss our business. This weekend was no different for me. I was invited to attend a political function for an incumbent who is attempting to keep his seat as a delegate for our area. Of course, Chuck Caputo is the right candidate and the right person for the job and, for our area, we need him to be re-elected. His views on education, business and transportation for our area far exceed his competitor’s opinions on how to continue to run our region and for us to stay the number one state to do business in 4 years in a row.

But I digress, at this function I had the opportunity to meet Mark Warner and we discussed our local real estate market. Our conversation included inventory levels, supply and demand challenges, trends in housing prices, profiles of our purchasers, as well as HVCC and the First Time Buyer $8,000 Tax Credit. Over the last several years, we have discussed the need to know your numbers, and know the trends in our business and to have them ready to discuss at any time. As a result of staying abreast in these areas, I was able to accurately convey why we need to address the HVCC issue but more importantly, the need to extend the First Time Buyer Tax Credit. In our discussion, he told me he was going to vote to extend the credit! It is a wise decision to keep the housing sector of our economy moving forward and to help continue to bring our country out of the recession. When it comes to making the right decisions about our economy, we need to knock down political affiliations and work together for the common good. Get it? Got it? Good.

Now, go sell something!

Social Media Training

Please attend the free event at NVAR – rebarcampdc.com October 27, 2009 – 8:30 – 5. Please RSVP soon to make sure you get in!

Blogging is an important part of your internet presence – 73% of internet users have read a blog.

Google loves blogs – to get higher in the searches on various search engines – you’ve got to blog.

Blogs enhance your image on the internet.

Use http://technorati.com/ to “ping” your blog and get higher in search engines.
Incorporate videos and hyperlinks into your blogs.
Blogging allows you to present your internet presence to sellers in listing presentations.

Provide information on market, neighborhoods, and industry news to show your expertise in real estate.

Tips for blogging: www.davidrisley/2008/11/50-rapid-fire-tips-for-power-blogging/
Ed says – change or die! Remember when people complained about the new electronic lockboxes…

Here is the presentation from today!

As usual – THANK YOU Kendall and all of our attendees!
Now, go sell something!

Yesturday's Economic Summit

Michael Fratantoni

-The true unemployment number is up to 13.3% (people who can no longer claim and still don’t have a job) but is report as 9.7% - it will peak midyear next year to a reported 10.2 % similar to the early 80’s
-No pressure on inflation –some deflation happening right now to keep it in check –as an example energy prices are down - a barrel of oil is in the $70’s when a price of $90 to $100 is normal
-Stock market losses $6 trillion slight rebound in Q1 & Q2
- New home sales lowest on record in 50 yrs
-Housing prices nationally are not going to rise until 2011 and won’t stabilize until mid 2010
-The Federal Reserve is largest buyer of MBS 60% currently and they hold $850 billion loans currently they have gone from 0% to 60 % this year and want to go back to 0% by year end. Will going to 0% add volatility to market? This is something to watch over the next 6 months when Fed leaves market increase in rates by .25 basis points – Just saw the Fed will buy MBS until March of 2010
-Theme things are looking up slightly but we have huge hole to climb out of
-FHA represented only 2% of loans in previous years. This year they represent 45%!
-National delinquency survey show 14% of borrowers are 90 day or more late 2.5 million loans
-Prime fixed rate loans 28 million and many of those are reaching seriously delinquency rates – more than 90 days
-Delinquencies & foreclosures are delayed or lag behind employment trends
-Delinquencies – we are up because of jobs being lost
-25% of option arms have been modified or foreclosed on not the problem media has mentioned and continues to mentions as the problem in mortgage market
-Watch bill HR 1728 – Barney Frank
-Allen Jones BOA SS expert is available to us about Short Sales and BOA
Allen.h.jones@bankofamerica.com

Frank Nothaft

-Its going to get worse much worse slower recovery than previous recessions
-After end of 1991 recession unemployment peaked 15 months later
-After end of 2001 recession peaked 19 months later
-Bernanke says we may be out of recession – the question is how long before we peak with unemployment after this recession
-$15-17 billion is the cost to extend tax credit. The challenge is too many politicians say they didn’t approve of spending gov’t funding to stimulate economy so even though they understood the need to extend they have politically painted themselves into a corner
-Freddie Mac National rebound of prices bottoms out in 2010 and it is 2011 before rebounding
-Lowest interest rate in 50 years
-Prime loans are performing worst since the 30’s – the depression
-Subprime 8 to 10% of loans represent over 35% of foreclosures
-9% of all loans are subprime but they represent 35% of foreclosures
13% of all loans are FHA and they represent 10% of foreclosures
15% of all loans are Prime/Arms and they represent 28% of foreclosures
63% of loans are Prime and Alt-A Arms and represent 27% of foreclosures
-4.2 million seriously delinquent 90 days behind
-To determine if loan is owned by Freddie Mac check out – www.makinghomesaffordable.com or www.Freddiemac.com

Lawrence Yun

No housing bubble it was a credit market bubble
We are overshooting bottom & need stimulus to nudge further back to make our market “normal” again
-From typical NAR survey 3000 responses - HVCC appraisal survey resulted in 30,000 responses1/3 had properties not close due to appraisals
Prices are below fundamental values
All cash purchases are 20 % of market typically low single digits 8 %
Foreclosures will rise because of toxic issues of unemployment & underwater buyers
Full builder recovery not until 2011
Our prices locally are down 20 % were 33 %
Stock market is at 1 year highs
Support tax credit extension - Wall Street got $700 billion whole economic stimulus $800 billion extending the tax credit will only be $15 billion
NAR is on FB why aren’t you?
See his presentation below!

Stephen Fuller

View his updated slides in the link below!
Look for collaboration amongst our peers share data share ideas work together get along
We in DC better at looking at bad news

Dr. Frank Nothaft
Dr. Michael Fratantoni
Dr. Lawrence Yun
Dr. Stephen Fuller