Veteran broker Denny Grimes, co-founder of the event and head of Denny Grimes and Company, told more than 700 realtors, brokers and other real estate professionals who attended the event to be realistic about home prices and to prepare for further price declines and further troubles in the commercial property sector.

Grimes said that the housing market has become obese and that it needs time to correct itself. He added that home prices are still low, but low price levels would increase sales and would cut down housing inventories.

According to Grimes, only 12 Lee County homes priced below $100,000 were listed in 2006. Today, he said, about 2,200 houses priced under $100,000 are being offered for sale in the area.

He also explained that total home sales last year broke the sales record achieved in 2005 and posted a 40-percent increase over total sales in 2008. The increase in number, however, did not translate into a corresponding surge in dollar volume as low home prices put the dollar volume increase at only 16 percent.

Grimes also told the home brokers that he believes the median home sales price has stabilized at around $98,000, which is 18-percent above the $79,900 median price in June 2009. However, recently built houses priced above $300,000 will continue to struggle in the market and owners will be forced to cut their listing prices. He mentioned Estero and Bonita Springs, which are still struggling from a 17-month supply of homes, most of which are priced above $300,000.

Another veteran broker Stan Stouder spoke about trends in the Southwest Florida commercial property sector. He said that high unemployment rates and uncertain capital markets will drive more commercial foreclosures. He added that developers will continue to face financing difficulties, but they will still attract entrepreneurs and investors if they incorporate in their projects the benefits of a busy airport, a sunny climate and the commitment of the county to green technology.

At the end of the session, most home brokers probably echoed the view by real estate appraiser and valuation counselor Anthony Mollica who said that Grimes and Stouder both were right in setting a cautious optimism for the residential and commercial real estate markets in Southwest Florida.

Home Brokers in Southwest Florida Realistic About Prices is a post from: Brokers Blog

In Westchester, New York, forming teams of three to five real estate agents operating under another name within a larger real estate brokerage has been gaining ground. An example is the broker team in Rye called Alix Prince Team, which is part of the brokerage Julia B. Fee Sotheby’s International.

Prince said she and three other real estate agents work together and then divide whatever commission they get based on each agent’s contribution to the sale and then share part of the commission to their brokerage.

According to Prince, a team is more successful if each member has a particular skill and contributes a significant asset to the team. Her team consists of young agents who are able to produce new listings using their past work experiences and social networks.

In Manhattan, Elaine Clayman, who heads an 8-member team operating under brokerage Brown Harris Stevens, said that clients prefer working with teams because they do not have to worry about a particular real estate agent resigning and leaving transactions uncompleted because there are other home brokers in the team who will take over.

In Larchmont, New York, Tom McGuire and three other real estate agents at Weichert Capital Properties and Estates formed Realtors 4. Unlike other models for teams, they split evenly the commission. They do not have to analyze each agent’s contribution to the sale. Two of them get better listings and the two other agents work better as buyers’ representatives.

The White Plains team of Christine Ricci works within Keller Williams Realty. Her team is comprised by two buyers’ agents, an administrative officer, a part-time coordinator for marketing and a bookkeeper working part-time. Ricci explained that the responsibilities should be clear to avoid the common pitfalls of work teams.

Ralph Roberts, author of the book “Power Teams,” said that one of the problems in teams is handling egos, as some are better than others in producing money. But he reiterated that during these times when the competition is fierce and the market is struggling, agents and brokers need help from their colleagues.

Nevertheless, according to Stephanie Singer, spokesperson for the National Association of Realtors, despite the rise in the number of realtor teams working within larger brokerages, only about 9 percent of NAR home brokers are members of teams.

Home Brokers Team Up and Stand Out from the Crowd is a post from: Brokers Blog

Consequently, the form titled Advance Fee Agreement for Loan Modification Services can no longer be used.
So if you are a homeowner looking for a real estate professional, lawyer or foreclosure prevention firm to help you obtain loan modification from your lender, remember that you can no longer be charged advance fees.

Last October 11, the law prohibiting the collection of advance fees for loan forbearance or modification services covering one- to four-unit residential units was signed by Governor Arnold Schwarzenegger, and the law took effect immediately.

For those who have already signed loan modification contracts with a broker before October 11, the agreements are still valid, but you can no longer be charged for additional fees until the loan modification service is completed.

Just make sure that the broker you have hired is licensed in California and that he holds the No Objection letter issued by the Department of Real Estate before October 11. See to it also that he is providing you the services described in the contract.

You can check if your loan modification specialist has a No Objection document by going to dre.ca.gov/cons_adv_fees_list.asp.

For home brokers who have not yet been updated about the law and unknowingly collected advance fees after October 11, they must return the fees fully and immediately.

For homeowners who want to check foreclosure prevention or loan modification specialists that have pending cases or complaints against them or have been ordered by the DRE to stop providing loan modification services, they can go to dre.ca.gov/cons_drs.asp.

If you are being approached by brokers or lawyers offering or providing loan modification services but are charging you fees in advance because of purportedly special exemptions, report them to the Department of Real Estate, California Attorney General or California State Bar.

Homeowners are often lured into signing deceptive foreclosure prevention agreements because they are swayed by the knowledge of swindlers concerning their mortgages. But swindlers research foreclosure notices and other publicly available records to get information.

All in all, deal only with home brokers or lawyers who are licensed and well-recommended and whose backgrounds you have already checked.

Home Brokers in California: Fee Contracts No Longer Valid is a post from: Brokers Blog

According to brokers who attended a conference of the California Association of Realtors in San Jose this week, the median price for a previously owned single family-house will increase to $280,000 next year, an increase of 3.3 percent from the projected median of $271,000 for this year.

Home sales, meanwhile, are predicted to drop to 527,000 next year, a decrease of 2.3 percent from the projected home sales of 540,000 for the current year.

The projected increase in home prices next year follows two consecutive years of sharp price declines – more than 38 percent of price drop in 2008 and the projected price drop of nearly 22 percent this year. The projected home sales increase of nearly 23 percent this year follows the 26.8-percent home sales increase last year.

James Liptak, who leads the California home brokers, said that the statewide housing market is now defined by two market sectors which are performing differently. He explained that the low end has been attracting investors and first time home buyers while the high end is facing difficulty because of the lack of financing and uncertainties about the direction of prices.

Another major reason for the weakness in the higher end of the market is the disappearance of move-up buyers, according to Mark Hanson of property research firm Field Check Group. He said that move-up buyers cannot sell their properties at a price that would enable them to buy a higher-priced home.

Hanson also predicted that home sales at the lower end of the market will drop because of the drop in inventory. But he added that the inventory will grow if redefaults increase and if loan modifications and other foreclosure programs fail.

Meanwhile, Dave Stark, explained that activity in the housing market next year will depend on the availability of home loans. He explained that home price reductions are in part caused by tougher access to home financing. Stark, director for public affairs for an association of home brokers in Alameda County, also added that demand and supply will still be the main factors in determining how the California market turns out next year.

Home Brokers in California Predict Price Increase in 2010 is a post from: Brokers Blog

But now, many brokers are asking for financial documents before showing homes for sale, especially higher-priced units. Some argue that they do not want to waste precious time showing properties to people who are only looking or people who mistakenly think they can afford the properties.

Up to now, many prospective buyers are still offended if they are immediately bombarded with questions about their capability to pay even before they can obtain important information about the properties.

In cases where brokers or listing agents ask for detailed financial statements that include pay stubs, tax returns and bank statements before they can be shown the properties for sale, prospective buyers are hesitant and sometimes angry. They think the brokers are being invasive of their privacy and they worry about identity theft.

Michael Signet, executive sales director at Bond New York, explained that brokers now need to know immediately if prospective buyers are really serious about buying. He added that buyers even benefit from the early financial scrutiny because soon they will realize that the properties are beyond their financial capabilities, thereby saving their time and effort.

New York City houses broker Edith Nanazia said that she is now increasingly meeting sellers who require her to email or fax the financial documents of her clients. She added that pre-approval from a bank no longer suffices for many sellers.

Nanazia said that some of her clients have been questioning the need to provide financial documents early in the house buying process, so she has been patiently explaining the trend.

To make things easier for her clients, Nanazia said she uses the financial disclosure form designed by the Real Estate Board of New York. This form includes the buyer’s total income and total assets and liabilities.

Nanazia however believes that sellers should not ask for other financial documents such as copies of past tax returns.

According to Jeffrey Tanenbaum of Barak Realty, it has been difficult making a sale because of the financial disclosure requirement. As a houses broker, he now has to tread carefully when telling a prospective client about financial disclosure at the first meeting in order not to lose the client.

Houses Broker Now Requires Financial Disclosure Upfront is a post from: Brokers Blog

While there are a lot of successful home purchases through brokers in person or online, there are also many house purchases that turned home ownership dreams into nightmares.

Know some of the most common nightmares experienced by buyers, so you would know what to look after or what to ask when you are still in the process of hiring your broker or doing the home search and home purchase by yourself.

One of the most common nightmares is the shock buyers feel at the time of closing. When they finally sit down to sign the purchase contract with excitement, they become appalled at the closing costs, interest rates and mortgage payments which have become much higher than what they have previously talked about.

To avoid this nightmare, find a house broker able to explain to you the home buying process and the closing process. Get referrals from your social and business networks and examine the licenses and certifications held by the brokers you are considering before choosing your broker.

Another common nightmare is the presence of squatters in the property you have paid for. This usually occurs when you buy a house at an auction without checking first on the property.

Many home buyers have also been frustrated by short sales. Short sale is a great opportunity to acquire a distressed property because the house is usually well maintained. As the occupant is the one selling the property to avoid foreclosure, the seller does his best to make the property well maintained to get a good sales price.

But sometimes short sales fail after the home buyer has invested so much time and money in inspecting the property. Sometimes banks change their minds without any notification if they see a better option. At other times, lenders fail to accomplish the needed paper work, putting your move-out and move-in schedules into costly chaos.

Other common nightmares involve the house itself. After moving in, you soon discover that the house which looked great when you first saw it is full of damages and defects.

To avoid these nightmares, find a responsible house broker who will guide you smoothly through the home buying, closing, home inspection and home ownership processes.

House Broker Can Help You Avoid Home Buying Nightmares is a post from: Brokers Blog

A realtor who is trained in negotiating short sales with banks will know what documents to prepare and how to present your financial situation to your lender so that the lender agrees to a short sale.

Lenders do not easily agree to a short sale if they do not see something that would benefit them or that would cut their losses. A realtor knowledgeable about what lenders want would know how to present a case favorable to the lender.

Several state realtor associations and national real estate institutes have already seen the value and advantages of short-sale and distressed-sale specialization, so they have now designations such as Certified Distressed Property Expert or Short Sale and Foreclosure Expert.

They not only train real estate agents to negotiate sales; they also train them to understand the emotional roller coaster that homeowners go through as they complete sales that would result in their moving out of their homes but keeping their credit records intact.

On the other hand, for homeowners who are selling their houses not to avoid foreclosure but to move up or to relocate to another place, hiring a realtor selling homes will also ensure that their interests are looked after by the realtor during the marketing, pricing, sales and closing processes.

A good and experienced seller’s agent or broker will use his network and his affiliations to sell your house at the best price that you can possibly get.

When choosing, always look for someone who is licensed as a broker in your state and at the same time certified as member of your state broker association and a reputable national realtor association.

If your chosen realtor is certified and licensed, you will be assured of a wider network that your agent can use to get the best price for your house. If you are rushing to sell, your agent’s contacts can also facilitate the sale so you can move up or relocate sooner.

Typically, realtors across the country cannot access Multiple Listing Services if they are not members of organizations that operate these listings, so make sure you choose a professional licensed realtor selling homes who can access these listings.

Realtor Selling Homes and Pre-Foreclosures is a post from: Brokers Blog

Although there are realtors who achieved success without passing through major reversals, realtors who surpassed major challenges do not easily give up when they are faced with properties difficult to sell or difficult to find.

The story of Lisa Burks is one that can inspire other realtors to work harder or other people planning to get into real estate to pursue their career goals. It can also entice buyers or investors to hire real estate professionals able to surpass challenges.

In 2005, Burks began as a realtor after she was laid off from her government job. The year 2005 was the time when the real estate market was still booming, but being a newbie, it was difficult for her to make her first sale. The next year, the housing market started to slow down.

But having experienced the difficulties of the recession of the mid-1980s, she was prepared for the hard work needed to be able to make a go of her new career as a realtor. She knew that budgeting and being careful with money will allow her to ride out times she is not able to sell and have income.

Burks said that there was a period of about 12 months when it was very difficult for her to make money out of real estate. Giving up was the easy option then, but she did not. She spent the time she had no sales to learn about selling foreclosure homes and other bank-owned properties.

She learned that it was crucial for her to be updated about trends and changes in the real estate market. She studied home loans available to prospective customers, zero down payments and lending requirements.

Now she says that the real estate business has been good for her. She says that she has been increasing her sales year after year.

She also credits her success to her realty company, which has only 8 sales agents but has been supportive of its agents by providing excellent training and lots of flexibility. She added that her company has the kind of honesty and integrity able to propel a realtor to achieve success and fulfillment.

Hire a Realtor Who Can Survive Reversals is a post from: Brokers Blog

The rating of E-Trade was upgraded by Goldman Sachs financial analyst Daniel Harris from neutral to buy because of the improving status of the broker’s home equity loan portfolio and the improving trends in the brokerage business. E-Trade shares rose by 6 percent or 10 cents to reach $1.81.

Harris explained that he increased his estimated earnings per share for E-Trade to a loss of only 3 cents in the July to September quarter from his initial estimated loss of 8 cents because the E-Trade brokerage business has improved substantially.

The share prices of TD American Corporation, TradeStation and optionsXpress also increased, with TD American rising by 7 cents in morning trading to $19.55, TradeStation rising to $7.55, and optionsXpress rising to $17.25.

Meanwhile, the stocks of Charles Schwab Corp. were downgraded by Harris from neutral to sell. According to Harris, Schwab’s core revenue sources, namely interest income and asset management, are not expected to grow substantially because of the expected slowdown in short-term rates. He also added that Schwab will lag other major discount brokers in performance.

Additionally, many stock analysts are advising investors to buy E-Trade now because it may soon be acquired by another major discount broker. They said that at E-Trade’s current $1.84 share price, the offer could reach $3 to $4 per share.
FBR Capital also pushed up its price target for E-Trade from $2 to $2.25, explaining that E-Trade Bank has been improving its capital and credit status and E-Trade has been showing strong signs of recovery.

In the past months, investors have been turning away from E-Trade because of increasing delinquencies in its home equity line of credit portfolio, but in recent weeks, delinquencies in its $8.8 billion HELOC business and in its $11.4 billion multifamily portfolio have been improving.

Total delinquencies in multifamily loans increased by only 0.4 percent to $1.68 billion and loans past due by 30 to 89 days dropped by 6.2 percent to $528 million. Loans past due by 90 to 179 days fell by 9.2 percent by $404 million.

Citigroup also upgraded its E-Trade Financial and raised its price target to $2.30 from $1.50. The interest of other major discount brokers in taking over E-Trade also increased because of its improved financial performance.

Discount Brokers Stocks Now Gaining Traction is a post from: Brokers Blog

In Michigan, sales of mobile homes have dropped from the peak sales of 11,792 mobile homes in 1999 to only 1,695 units in 2006, the last year of sales recorded by the Michigan Manufactured Housing Association.

In Ventura County, California, a rising number of manufactured home owners have been leaving their trailer parks as park owners started converting their parks into condominium units or mobile home lots for sale.

The problem has even worsened to a point that California legislators needed to pass legislation to protect families living in manufactured home parks from sudden conversions of their parks into condominiums. Currently, park owners in California can convert their parks into condominiums even if their survey of residents show that many residents do not approve the planned conversion.

Critics and housing advocates in California claim that park owners are just finding a way to skirt the rent control law. Landlords know that even if just one lot is acquired as a condominium lot, they can increase the rent they charge because the rent control law does not apply to condominium developments.

While many mobile home brokers are distracted by these problems of mobile home owners and park owners, many others have been successfully selling mobile homes to families who have lost their houses to foreclosures and to families finding cheaper housing alternatives during the recession.

At the Tanglewood Village in Brownstown Township, Michigan, many premium mobile homes have been delivered to households who have decided to buy upper-end manufactured homes with larger spaces and more rooms rather than struggle paying their detached single-family homes.

One family of four decided to leave their mortgage-burdened $125,000 Taylor home behind and buy a four-bedroom house at half the price of their old house and around 60 percent of the median sale price for a non-foreclosed house in Detroit.

Based on data from Manufactured Housing Institute, the overall sales of mobile homes have been declining in the past decades, but the sales of premium mobile homes have been rising.

According to the association, a total of 3,967 premium units were sold in the Great Lakes area in 2007, an increase from the 2,247 units sold in 2006. With this rising pace, mobile home brokers still have opportunities to pursue their businesses.

Mobile Home Brokers Face Challenges during the Recession is a post from: Brokers Blog