While in Phoenix, Anne Randolph spoke about how the media is distorting the actual situation, therefore buyers and sellers are frozen by anxiety. She covered a variety of topics, such as what you should know about the mortgage mess to counteract the sensationalist media, real estate investors as clients, the growing importance of niches for real estate agents today, and technology in real estate is not optional. She delivered several key messages that we feel are important to pass on to you so you can inform your Executives so they may in turn inform their clients.
- Despite what the news media is saying, the vast majority (over 95%) of mortgage holders are not in default or delinquency. The highest mortgage delinquencies were in the markets troubled by weather effects and job losses. (1)
- Subprime and Alt A loans will continue to be offered, but more carefully than in the past.
- Most people who bought in 2004 or earlier are still in a positive appreciation situation.
- Mortgage rates continue to be at historically low levels. (2)
- Most mortgage companies are trying to do work-outs for people who have been paying their loans but are facing higher mortgage rates with adjustable mortgages.
- President Bush signed legislation putting on hold the ability of banks to send 1099s for the amount of difference between the mortgage and what the home sells for- giving more freedom to people who are underwater to get out of the mess.
- FOR BUYERS, while housing prices may depreciate a little further, as housing recovers, pent up demand will cause prices to rise quickly, and the Fed will increase interest rates to avoid inflation...so, DON'T WAIT!
- FOR SELLERS, housing may depreciate a little more before it goes up. You can decide to sell now by lowering your price a little, or wait until the turn comes. It totally depends on how badly you need to sell your home.
- FINALLY, it is really a local situation- and the agent needs to know the details of each neighborhood for their client. For example, visit Cyberhomes on the web.
Now is the perfect time for investors:
- It is easier to get mortgages with conforming loan guidelines.
- Rents will go up as demand increases.
- This will help the purchasers to achieve positive cash flow.
Unlike purchases for primary residences, 79% of investors find property by driving around neighborhoods. In addition, 70% also use a real estate agent or broker, and 56% also use the Internet. (3) It is mandatory that real estate agents work harder to insure they are the expert in their area and in their niche. Which brings us to Anne Randolph's next topic, "The Growing Importance of Niches". She makes the following points:
- The mass is gone, niche is in...forever.
- "When you try to serve everyone, you serve no one well."
- Examples of niches: Neighborhood or geographic area, luxury homes, second homes, golf...beach...mountain...rural, investment, target demographics, short sales, foreclosures, or interest & hobbies (i.e., pet enthusiasts).
- *Consumers don't need the help of a REALTOR® to get basic information, they want the REALTOR® to provide knowledgeable perspective and advice.*
For more accurate information than the sensationalist media's rhetoric, please visit Anne Randolph's blog.
The sources for the statistics Anne Randolph provided are pulled from (1)Guy Cecala, Inside Mortgage Finance, (2)Lawrence Yun, National Association of Realtors and (3)REAL Trends/Harris Interactive 2008 Study of Real Estate Investors.
