Mortgage Market Guide Weekly Issue 6

Last Week in Review: There was a mix of good, bad, and ugly news.

"Bad news goes about in clogs, good news in stockinged feet." Welsh Proverb. And we certainly saw both good and bad news last week. Here are the details and what they mean for home loan rates.

There was good news for the housing sector, as CoreLogic reported that home prices rose by 0.4% in December, from November, and was the tenth monthly gain. In the year ended in December, prices rose by 8.3%, the largest increase since May of 2006.

But news from the Congressional Budget Office (CBO) wasn't as pretty of a picture. The CBO said that growth in the U.S. will slow due to large government spending cuts coupled with new tax increases in 2013. The Gross Domestic Product (GDP) is expected to rise by a meager 1.4% this year. This is clearly not enough to lower the Unemployment Rate, which is estimated to remain near 7.9% in 2013. The CBO went on to say that growth will likely rise in 2014, which would then lower the Unemployment Rate. However, this could result in inflation and rising interest rates.

And the news out of Europe was just plain ugly. Greece is in a depression-like state with no prospect of meeting its third bailout terms. Spain has historically high unemployment and the second highest debt load in the region. Other countries continue to struggle as well.

What does all of this mean for home loan rates? As the drama in Europe continues to unfold, the U.S. Dollar and our Bonds should benefit from safe haven buying. And since home loan rates are tied to Mortgage Bonds, as Bonds benefit, home loan rates should as well. In addition, the Fed's Bond purchase program (known as Quantitative Easing) continues, so it is tough to see Bonds (and therefore home loan rates) worsen significantly without the immediate threat of inflation.

However, one thing to continue to monitor is the seesaw battle that has developed between the Stock and Bond markets. If Stocks continue to do well, this could temper any significant improvement in Bonds and home loan rates.

The biggest take away is that now is a great time to consider a home purchase or refinance, as home loan rates remain near historic lows. Let me know if I can answer any questions at all for you or your clients.

Forecast for the Week: The second half of the week features several important reports, including retail sales, consumer sentiment and more.

The beginning of the week is quiet, but look for several important reports in the second half of the week.

• On Wednesday, Retail Sales will be released and will gauge how consumer spending habits held up in January.
• Initial Jobless Claims will be reported on Thursday. Last week, claims fell by 5,000 in the latest week to 366,000, just above expectations. The four-week moving average, which evens out any seasonal abnormalities, fell to a five-year low of 350,500.
• New York State Empire Manufacturing and Consumer Sentiment will be released on Friday.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

When you see these Bond prices moving higher, it means home loan rates are improving -- and when they are moving lower, home loan rates are getting worse.

To go one step further -- a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Bonds attempted to rally last week. I'll continue to monitor their movement closely.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday Feb 08, 2013)

View: Claim a home-office deduction on your taxes? The rules just got easier. See important details below.

IRS Makes Claiming the Home-Office Deduction Easier

A simplified option available for 2013 tax returns requires fewer calculations and will save taxpayers time.
By Cameron Huddleston, Kiplinger.com

If you work from home, deducting costs associated with your home office on your tax return can be a money saver. But claiming this write-off has been somewhat complicated -- until now, that is.

The IRS recently announced a simplified option to make it easier for taxpayers to calculate and claim the home-office deduction. Although those who work at home won't be able to take advantage of the simplified option on their 2012 returns, it will be available for 2013 tax returns, which taxpayers will file in early 2014. The IRS estimates it will reduce the paperwork and record-keeping burden on small businesses by an estimated 1.6 million hours annually.

Currently, to claim the home-office deduction you have to fill out the 43-line Form 8829, which involves substantiating actual expenses. With the new method, you don't deduct actual expenses. Instead, you determine the amount of deductible expenses by multiplying a prescribed rate ($5) by the square footage of the area of your residence that is used for business purposes, not to exceed 300 square feet. So that means the deduction is capped at $1,500.

With the new option, you don't depreciate the portion of your home used for business, and you don't have to allocate deductions for mortgage interest, real estate taxes and casualty losses between personal and business use. You'll simply claim these expenses as itemized deductions on Schedule A. However, to claim the home-office deduction under the new option, you still must use the space regularly and exclusively for your business.

For more information, see IRS Revenue Procedure 2013-13.

Reprinted with permission. All Contents ©2013 The Kiplinger Washington Editors. Kiplinger.com.

Economic Calendar for the Week of February 11 - February 15

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors.

As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

Mortgage Market Guide Weekly Issue 5

Last Week in Review: There was important news on the labor market and the state of the economy. Find out how home loan rates were impacted.

Take two steps forward and one step back. That popular catchphrase is a good description of our economy of late, as good economic news continues to be tempered by some negative reports.

There was mixed news in the Jobs Report for January: 157,000 jobs were created, which was below expectations, while the unemployment rate ticked up to 7.9% from 7.8%. On the flip side, the November and December job numbers were revised higher by 127,000. In addition, the benchmark revisions showed that employers added 335,000 jobs in 2012, more than was originally reported. That brought the average rate of job gains per month in 2012 to 181,000, up from the 175,000 per month average seen in 2011.

Overall, the labor market continues to improve, but at a very slow pace. And seeing the unemployment rate tick higher is yet another reason why the Fed said last week that their Bond purchase program (known as Quantitative Easing) will continue.

In other important news, Fourth Quarter Gross Domestic Product (GDP) showed negative growth for the first time since the second quarter of 2009. While external factors like Superstorm Sandy did have an impact on this reading, overall growth has been limited to just 2% or so annually. This is part of the reason why the unemployment rate remains as elevated as it is.

What does this mean for home loan rates? First, it's important to remember three things. First, home loan rates are tied to Mortgage Bonds, and as Bonds improve, home loan rates improve. Second, inflation is the arch enemy of Bonds (and therefore home loan rates) as inflation reduces the value of fixed investments like Bonds. Third, Bonds (and therefore home loan rates) typically benefit when there is weak economic news, as investors tend to move their money into safer investments like Bonds.

The question is: With the Fed still buying $85 billion in Mortgage Bonds per month, no inflation, and weak economic readings, why aren't Bonds and home loan rates improving? The answer: Stocks had their best January in over two decades. As long as the Fed continues to pump money into the economy, the bias in the markets will likely be towards riskier assets like Stocks.

However, home loan rates remain near historic lows, which means now is still a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or your clients.

Forecast for the Week: In the absence of any major economic data points and with earnings season coming to an end, investors will be looking for the next catalyst to impact the markets.

After last week's packed economic calendar culminating with Friday's mixed Jobs Report, this week's calendar is light.

• Look for the ISM Services Index on Tuesday.
• Weekly Initial Jobless Claims will be reported as usual on Thursday. Last week's reading showed that initial claims jumped 38,000 to 368,000 in the latest week.
• Also on Thursday, Q4 2012 Productivity will be released

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

When you see these Bond prices moving higher, it means home loan rates are improving -- and when they are moving lower, home loan rates are getting worse.

To go one step further -- a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Bonds attempted to stabilize last week. I'll continue to watch the markets closely.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday Feb 01, 2013)

View: The cost of getting the flu is nothing to sneeze at. Be sure to share the important information below with clients and colleagues.

 Monitor the Flu Online

Flu season is here...and the cost of the season is nothing to sneeze at! In fact, Americans spend approximately $4 billion on over-the-counter cold and flu remedies. That doesn't even factor in how much time and productivity is lost on sick-time in the workplace or co-pays for doctor visits and prescriptions.

But with the two websites below, you can stay up to date on the latest flu information in your area and even add your data to help others.

View Flu Activity:

You don't have to wonder if the flu is prevalent in your state or search for long complicated reports. Each week, the Centers for Disease Control and Prevention (CDC) produces a Flu Activity Map. The map displays the level of flu activity across the United States and is based on data reported from state epidemiologists. The map also allows you to view previous weeks, so you can compare the spread of flu activity over time.

Contribute Your Data:

On the "Flu Near You" website, you can complete a brief weekly survey that may help all of us learn more about the flu. When a case is reported, the map registers a "pin" in the map - and you can even click on that pin to learn more about the symptoms or severity of the case! The site is completely free to use. And the information on the site will be available to public health officials, researchers, disaster planning organizations and anyone else who may find this information useful.

So if you're concerned about being sidelined by the flu, take a few minutes to check out the websites above. You may even want to consider passing the information on to your friends, family members, or even your clients.

Economic Calendar for the Week of February 04 - February 08

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors.

As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

Mortgage Market Guide Weekly Issue 4

Last Week in Review: Good news moved the markets. How were home loan rates impacted?

"Happy days are here again." Milton Ager and Jack Yellen. There was more evidence last week that the housing market is improving. But not everything that happened last week was cause for song. Read on to learn more.  

Last week, the Federal Housing Finance Agency (FHFA) reported that home prices rose by 0.6% in November from October, and that they are up 5.6% from the year ended in November. These numbers are based on data received from Fannie Mae or Freddie Mac mortgages. In addition, both Existing Home Sales and New Home Sales for December, though below estimates, were strong numbers for 2012.

But the housing market wasn't the only area where we saw positive economic data last week. There was good economic news out of Germany, plus several companies here reported strong earnings, including Procter & Gamble and Honeywell. In addition, weekly Initial Jobless Claims dropped by 5,000 to 330,000 in the latest survey: this is the lowest level since January of 2008. It is important to note that estimates were used for three states, including Virginia and California, so the numbers could be distorted.

How were home loan rates impacted? The mix of good economic news last week caused investors to move their money out of Bonds, which are considered safer investments, and into Stocks in the hopes of taking advantage of gains. And since home loan rates are tied to Mortgage Bonds, as Bonds worsened last week, so did home loan rates. But rates remain close to historic lows, and now is still a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or your clients. 

Forecast for the Week: A busy week is ahead, with news on inflation, consumer confidence and spending, manufacturing, the labor market and more.

 A full slate of economic reports is ahead, with several key data points that could move the markets.

• Monday's Durable Goods Orders and Wednesday's Gross Domestic Product Report will give us signs as to how our economy is doing.
• Monday also brings more news on the housing market with Pending Home Sales, which will be followed by Tuesday's Case Shiller 20-city Home Price Index.
• We'll get a sense of how the consumer is feeling with Consumer Confidence on Tuesday and the Consumer Sentiment Index on Friday.
• Thursday brings several key economic reports, including Initial Jobless Claims, Chicago PMI, Personal Income and Spending, and the inflation-reading Core Personal Consumption Expenditure, the Fed's favorite measure of inflation.
• Rounding out the week, the all-important Non-Farm Payrolls will be reported along with the Unemployment Rate. Also on Friday, the ISM Index will be delivered.

In addition, the Federal Reserve will meet for its two-day meeting of the Federal Open Market Committee, with the monetary policy statement released at 2:15pm ET on Wednesday. The statement will be dissected for any hints on the current purchase programs of Mortgage Backed and Treasury Securities. If there is any talk of halting the programs this year, it could lead to lower Bond prices and a push higher in home loan rates.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

When you see these Bond prices moving higher, it means home loan rates are improving -- and when they are moving lower, home loan rates are getting worse.

To go one step further -- a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Bonds and home loan rates worsened after positive economic data was released last week. I'll continue to watch all the news and market action closely. 

Chart: Fannie Mae 3.0% Mortgage Bond (Friday Jan 25, 2013)

View: There's a new scam targeting small businesses. See important details below.

FTC Warns of New E-mail Scam
Small-business owners are the target of this phishing scheme.
By Cameron Huddleston, Kiplinger.com

The Federal Trade Commission is warning small-business owners not to open e-mails with the subject line "Notification of Consumer Complaint." The e-mail falsely claims to be from the FTC and states that a complaint has been filed with the government agency against their company.

E-mails of this sort often prompt recipients to click on a link or open an attachment. However, these links and attachments usually install malware or a virus on your computer if you click on them. Then you're at risk of having personal information stored on your computer stolen.

The FTC says that you should delete such e-mails. It also offers tips on how to reduce your risk of downloading malicious software onto your computer.

• Keep your security software updated by setting it to update automatically.
• Don't buy software in response to pop-up messages on your computer or e-mails. Scammers use ads that claim to have scanned your computer and detected malware to get people to install malicious software.
• Make sure your Internet browser security setting is high enough to detect unauthorized downloads. For example, Internet Explorer users should have their security setting at medium, at a minimum.
• Use a pop-up blocker on your browser (look for the security tab in your browser's options). Links in pop-ups can contain malware.

If you notice that your computer is running slower, crashes often or repeatedly displays error messages, it may have a virus. Other warnings signs include new toolbars or icons on your desktop, a barrage of pop-ups, Web sites that you didn't intend to visit displaying on your screen and a laptop battery that drains quickly.

See Protect Yourself From New Phishing Schemes for more advice on avoiding fraudulent e-mails.

Reprinted with permission. All Contents ©2013 The Kiplinger Washington Editors. Kiplinger.com 

Economic Calendar for the Week of January 28 - February 01

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors.

As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

Mortgage Market Guide Vol. 10 Issue 13

Last Week in Review: Several housing-related reports were released last week, but did they show an improvement in the housing market?

The song remains the same. The title of that Led Zeppelin song is a great description for some of the things we're seeing lately in the Bond market. Read on for details, and what they mean for home loan rates.

First, several housing-related reports were released last week - and they show that the housing market continues to remain weak. Both Housing Starts and Building Permits came in meeting expectations. Existing Home Sales fell 0.9% in February to 4.59 million units (though that was nearly inline with expectations), while New Home Sales fell 1.6% in February, which was below expectations.

Perhaps the biggest takeaway from these reports is that they could cause the Fed to do another round of Bond buying (Quantitative Easing or QE3) under the guise of helping housing. The housing market remains fragile, and it can't absorb an uptick in rates just yet. It will be important to see if there are any rumors of QE3 in the coming days and weeks. Rest assured that the Fed has noticed the uptick in home loan rates and subsequent fall off in loan origination activity. This could certainly lead to another round of Bond buying, and as home loan rates are tied to Mortgage Bonds, as Bonds improve so will home loan rates.

Another thing that could help Bonds and home loan rates is renewed emphasis on safe haven trading. While global economic news has taken on a bit of a brighter tone lately, causing investors to move some of their money out of the safety of our Bonds, it's important to keep in mind that the debt crisis in Europe is far from over. Just last week, it was reported that Portugal's economy is set to contract by 3.3%, and it seems that it will be nearly impossible for Portugal to meet the tighter fiscal union rules and annual budget deficit targets. Also, Europe's Services and Manufacturing numbers contracted more than forecast...confirming that the region is moving into a recession.

It is important to note that while Stocks saw some declines last week, Bonds were unable to build any positive momentum. This is eye-opening and doesn't bode well for further price appreciation in Bonds. Whether the potential for QE3 or future safe haven trading helps Bonds and home loan rates in the future remains to be seen.

The bottom line is that home loan rates still remain near historic lows and now continues to be a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients. 

Forecast for the Week: A busy week is ahead, with news on the state of the economy, inflation, consumer confidence and more. 

As you can see in the chart below, Bonds have been on a "Down Escalator" trend of late...and this trend is not friendly to home loan rates. I'll be watching closely to see if Bonds can "step off" this escalator and change course.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Mar 23, 2012)

After last week's quiet economic release calendar, this week's calendar heats up.

• Pending Home Sales will be delivered on Monday and comes after last week's so-so reports on the housing sector.
• Consumer Confidence and Consumer Sentiment will be released on Tuesday and Friday, respectively. The data will be closely watched to gauge how the consumer is holding up as economic news has been on the positive side.
• Wednesday brings the Durable Goods Report, which measures big ticket items that last for an extended time.
• Initial Weekly Jobless Claims will be released on Thursday. Jobless claims fell to the lowest level since February of 2008 last week as the sector continues to breathe life into the economy.
• Also on Thursday, the final read for Gross Domestic Product for the 4th quarter of 2011 will be released. In order for the U.S. economy to strengthen, we will have to see sustained growth in the form of the GDP.
• Friday brings a bunch of reports, including Personal Income and Spending, as well as the Chicago Manufacturing Report.
• We'll also see the Core Personal Consumption Expenditures on Friday. This report provides insight into where inflation is at, so the data will be key to the Bond markets. As we know, higher inflation pushes Bond prices lower due to purchasing power loss that is associated with rising consumer prices. And, lower Bond prices can be bad news for home loan rates.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart above shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

When you see these Bond prices moving higher, it means home loan rates are improving - and when they are moving lower, home loan rates are getting worse.

To go one step further - a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning. 

View: The IRS is warning people about a new tax scam. Be sure to share the below information with your colleagues, clients, and friends. 

IRS Warns of New Tax Scam


Senior citizens are the target of a phony refund scheme.
By Cameron Huddleston, Kiplinger.com.


The IRS is warning taxpayers to watch out for people promoting a tax refund or nonexistent stimulus payment based on the American Opportunity Tax Credit. This credit is available to taxpayers who have qualified college expenses, but promoters of the new scheme claim they can get a refund based on the credit even for people who aren't enrolled in or paying for college.


Scam artists are targeting senior citizens, members of church congregations and people who have little or no income and normally aren't required to file a return, according to the IRS. Promoters of the scam often charge exorbitant upfront fees to file claims for nonexistent refunds.


The IRS already has stopped thousands of these fraudulent claims and is investigating the source of them. However, the IRS warns taxpayers to be aware of the following to avoid becoming a victim:


-Homemade flyers and brochures implying tax credits are available without proof of eligibility.
-Offers of free money with no documentation required.
-Promises of refunds for "Low Income - No Documents Tax Returns."
-Unfamiliar for-profit tax services selling refund and credit schemes to the membership of local churches.
-Claims for the expired Economic Recovery Credit Program or for economic stimulus payments.
-Unsolicited offers to prepare a return and split the refund.
-Internet solicitations that direct individuals to toll-free numbers and then solicit Social Security numbers.


For more advice on how to avoid becoming a victim, see 5 Way To Avoid Tax Fraud.


Reprinted with permission. All Contents ©2012 The Kiplinger Washington Editors. Kiplinger.com. 

Economic Calendar for the Week of March 26 - March 30

As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

Congress Mandated Conventional Guarantee Fee Increase to Pay for Payroll Tax

Got my first email notice tonight from a Lender about the upcoming Guarantee Funding fee that Congress is mandating to pay for that payroll tax mess. I announced a few weeks back to expect changes in your rates with this mandate. Well, they are telling me that it appears it is going to instantly raise your conventional loan rates by .5%. I cannot stress this enough, if you or any of your clients are looking to purchase or refinance and go conventional financing, you need to lock your loan soon. I have a feeling that Government backed loans like FHA will soon follow.

Here is more information on this bill.

The Federal Housing Finance Agency will increase guarantee fees on single-family mortgage-backed securities charged by the government-sponsored enterprises for loans delivered effective April 1, 2012, in response to the new funding mechanism for the payroll tax cut extension passed by Congress.

Passage of the payroll tax cut extension requires Fannie Mae and Freddie Mac to raise g-fees to cover this Payroll Tax Extension.

DeMarco said the FHFA will take "into consideration risk levels and conditions in financial markets" when the agency contemplates rates.

President Barack Obama signed the temporary two-month tax cut in December after House and Senate leaders reached a last-minute deal prior to the holiday break.
Link to the story about the Tax Cut Extension Deal

Please share this with others so that they are not caught unaware.

Feel free to contact me for a free consultation or good faith estimate.

Why Use a Realtor?

Many people, in an effort to avoid paying commissions to a Realtor, go the For Sale By Owner route. While this may seem like an exciting challenge to homeowners, the reality can be a little bit darker. True, real estate is an exciting market to be in, but it is also one fraught with legal complications. Buying and selling can be quite stressful, especially if you don't know exactly what you are doing.

First of all, a Realtor is trained in all legal matters involved in the sale of real estate. Sometimes, these sales go smoothly, but sometimes, clauses, liens, and contingency contracts can make them very complicated. I recently heard about a couple that sold their own home. They entered into a contract with a couple that ended up having serious trouble getting financing. They ended up missing the opportunity for a quick sale while they waited in vain for the couple that made the original offer to get a mortgage loan. Once the potential buyers finally admitted defeat the couple were exhausted, and still had to deal with selling their home. It is hard to know when life is going to through you curve balls. The best thing to do is be prepared, and a Realtor comes not only trained in theoretical real estate cases, but, ideally, with a whole history of experiences from which to draw from. This makes them extremely helpful when negotiating the legal aspects of buying or selling.

Even if your home sale goes off without a hitch, all the paperwork involved can be overwhelming. What are you signing? Sometimes it's hard to tell when the language is full of legal and industry terms that the average person just isn't familiar with. A Realtor can translate these forms, helping you understand what each step in the transaction is all about.

A Realtor is connected to a whole network of other Realtors. This means that weather you are buying or selling, a Realtor can help. They have a network of other professionals to market your home to. They have clients waiting to buy homes, and colleagues with more clients, waiting to buy more homes. Some homes barely need to be marketed because there are buyers already waiting to purchase just that type of home.

When it does come time to market, a savvy Realtor has numerous tools at their disposal that the average citizen does not. Sure, there are a lot of web sites out there where real estate can be advertised, however only a Realtor can post a home on the Multiple Listing Service. Once a home is posted there, buyers from all over the world can see it, as can even more of those Realtors with clients waiting to buy.

Many people think that they can only find what they need themselves, but a good Realtor will be able to listen to your needs. A good Realtor knows the market, and knows the area, and may be able to suggest places you didn't even know existed. They are also familiar with local services, and can recommend lawyers, notaries, inspectors or even contractors that they personally know do good work.

Overall, an experienced Realtor may cost a little bit in commission, but the service they provide is worthwhile. If someone can help you not lose money, or save you a lot of time, aren't they worth what you paid them?

For more advice or for a referral to some excellent Realtors, feel free to contact me.

Buying Real Estate Foreclosures

When looking for a home for you and your family you will come across all kinds of deals, bargains, and so-called values along the way. If price is a very tangible object for you and your real estate investment then you might seriously want to consider the value of foreclosures. If you are hoping to invest in real estate in order to turn a profit then you may also wish to consider these properties that are often sold well below the ordinary value of the property because they are in varying degrees of disrepair.

Foreclosures are properties that have been taken back by the lenders because the previous owners were unable to continue making payments on the property. Being that these homes were often owned by those in financial distress and may have been empty for some time before being sold, chances are that the foreclosure homes being sold at any given time are in some degree of disrepair. The shabbiness of many of these properties is one of the factors that keeps the prices down. Another is the fact that the lenders are essentially attempting to recoup their investment in the property. For this reason they are often willing to take less than the value of the property if that is what is owed on the property.

Why are these properties often in a state of disrepair? Truthfully, there are many reasons but the primary culprit in this situation is money. Obviously the owners of the home were struggling to make the payments or the home would not be in the state of foreclosure. If the notes on the property were difficult to begin with it makes perfect sense that other issues such as leaking roofs, shabby carpeting, or plumbing maintenance would take a distant second in priority to making the house payment.

At the same time, there are those who are bitter about loosing their homes. As sad as the situation may be some add insult to injury by damaging these properties intentionally. These homeowners feel they have nothing left to loose and if they cannot have their property hole then the lenders should not as well. While this is by no means the way to go there are very many who choose this path over other options.

The fact is that their loss in these situations is actually your gain. The damage they do to the property is often not terribly expensive to repair though it can be quite bothersome. Your willingness to do the work in order to create a beautiful home for you and your family or as an investment can often translate to big savings at the closing table or when negotiating the price of the property. Foreclosures can allow families to buy larger homes in better neighborhoods than they would ordinarily be able to afford. They can also provide a fabulous kick-start to a property investment portfolio.

Despite common claims and Internet advertisements, you do not need to buy a list in order to find foreclosed real estate in your area. You simply need to procure the services of a competent realtor and let him or her know that your intentions are to purchase a foreclosed property or some other property that is selling well below market value. You might be amazed at the wealth of information and assistance your realtor can provide not only in finding excellent foreclosures but also when it comes to procuring financing for some of the more creatively damaged foreclosures you may run across at insane bargain prices.

The FHA Energy Efficient Mortgage (EEM) Niche

FHA's Energy Efficient Mortgage (EEM) could be a great niche for your marketing and quite a cost saver for your clients. Click the link below to view a brief overview of the product.

The FHA Energy Efficient Mortgage (EEM) Niche

203k Home Improvement Loans Part 2 of 2

Here is part two. Again, this is a great product for someone wanting to purchase a home that needs a little improvement.

203k Home Improvement Loans Part 2 of 2

203k Home Improvement Loan Part 1 of 2

If you have a client looking at a home that needs improvements to get it to their dream home status, this is the product for them. There are a lot of homes on the market and some need improvements. You need to watch this two part video that will give you a brief rundown of the product.

203k Home Improvement Loan Part 1 of 2

Market Your Service To More First-Time Home Buyers

First time real estate buyers are some of the most valuable clients out there, and the Internet is your best bet for attracting them. That's because new buyers are generally younger and spend more time doing research before entering the market, all of which adds up to more Internet use. Tech-savvy real estate professionals who can master a few new Internet marketing strategies will have a much easier time connecting with younger buyers, and building their market for the future.

Every real estate professional knows the value of first impressions, and that's why everyone wants to work with first-time buyers. Helping someone buy their first home is not just a huge responsibility, but also a marketing victory. With a successful first-time transaction, real estate professionals put themselves in a position to work with a client again in the future, and have their services referred to friends and family. But like a first home showing, that first transaction has to leave behind positive imagery and something to look forward to, otherwise the buyer will look somewhere else next time.

A strong Internet presence with a well designed, well written, and useful website is the most effective online marketing tool, and most tech-savvy Realtors will already have this. The advantage to already having a good website is that you can build on it, or use it as a central resource linking to your new marketing tools.

Many real estate professionals and developers are also realizing the benefits of online television in marketing property to younger buyers. Popular examples of this marketing tactic have included sitcom webisodes, real estate agent walk-thrus, and reality-TV style interviews with current homeowners. One online television series called Donovan Life told the story of a young professional woman who moved into a new downtown condo (the development being marketed) with her best friend. Like a television series featuring product placement, the Will and Grace-style Donovan Life managed to create a branded environment, and market a particular lifestyle. The series was a hit with younger buyers, and the development sold out quickly.

Tech savvy real estate professionals have also had a lot of success marketing to younger buyers with social networking. For example, instead of contacting leads via phone of sending mass emails, real estate professionals can simply set up a Facebook page and advertise their services. Clients tend to react well to this approach because it's more transparent, and doesn't require any personal information on their part - essentially it's the same thing as a website.

It's also important to keep in mind that these marketing tactics work well other groups besides young buyers. With more than 80 per cent of buyers and sellers using the Internet first in their real estate search, broadening your online presence is guaranteed to expand your market.