“I don’t regret the things I’ve done. I regret the things I didn’t do when I had the chance.”
We have seen lots of moving and shaking going on this week in the home financing market. The inflation data ran hot, sending the 10-year bond yield into a spike. When the bond yields spike, it typically bumps up the price of mortgage rates. Rates were up about an eighth of a point. This Richter scale blip could spell higher bumps in the mortgage rates later. When the financial markets move around, you may want to put yourself in a solid place.
Several mortgage clients put themselves in a stable place and are enjoying some bragging rights right now. The Smiths refinanced and lowered their interest rate and freed up a few hundred dollars per month by lowering their mortgage payment. They plan to take part of the extra money and pay off debt. The other part of their savings is to take some memorable vacations.
The Millers have ratcheted down their mortgage rate and eliminated ten years off their mortgage term. Now they can retire without being tied down to a mortgage payment.
I have celebrated with the Garcia’s who took this opportunity to refinance, pull cash out to upgrade, or modify their home. John and Jane Doe bought an additional house.
The Johnsons bought their first home and locked in a fixed-rate mortgage in the high 2’s that will help them build wealth and keep their budget on track. They don’t have to worry about the landlord raising their rent every year.
The opportunity is there now but will be gone one day, and we don’t know when. Do something today, and don’t regret missing the opportunity.
Home prices are steadily rising. The National Association of Realtors announced that the median home price rose 16.2% year-over-year to $319,200. That means the houses selling in the neighborhood where you want to live selling at $200,000 last year are now selling for about $232,000. That is a $32,000 difference over 12 months or a $2666 per month increase.
The Millennial generation leads the home buying market, with Generation Z making their entrance into the real estate market. Demand is predicted to remain strong for home buyers. The lack of homes available to buy is currently continuing to push prices up.
As mortgage professionals, we can win trust and appreciation from our mortgage clients when we listen carefully to what the customer wants to accomplish from the new mortgage. Ask good questions like, “What do you want to accomplish with this mortgage?” “What is the maximum house payment that is personally comfortable for you?” Asking open-ended customer questions like these can move you to the customer’s side of the table. You will be in a better position to help them choose the very best mortgage terms to meet their goals.
While some are struggling to get deals to go together, those focusing on what it takes to win the deal keep on winning. As I spoke to the issues in the past about “winning vs. whining”, you can make a choice every day about your approach to the market in which you work. You can whine about the issues and the challenges, or you can identify the solutions and the strategies necessary to help your clients win!
Record numbers of homes being sold tell us that there is an opportunity. Greater numbers of buyers wanting these homes creates the challenge of how to navigate the market to put your client in the best position to win. However, the plan is not a one and done solution or strategy that will make it all come together for you, it takes a series of strategies to optimize results and secure the win. Remember, more than one strategy at a time to make the win a reality, and the process of winning incorporates the possibilities that there are losses along the way. The good news is; your client only needs to win once!
A few things to keep in mind are:
1. Get your client in the best possible position to buy.
2. Give them a buyer improvement plan to follow each week so they become stronger and more flexible in their options.
3. Set the stage by setting expectations about their specific market.
4. Use all the tools available to be sure your clients and referral partners can make their best offer possible and be sure to include the power of speed to the closing table.
5. Be sure you, the client, and your referral partners are on the same page and working toward the same solution!
As originators you need to use your experience about what people are doing to win their offers and help your current clients benefit from your experience. Yes, it is a challenging market, but it also a market ripe with opportunities. Use your winning strategies to keep on winning!
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Near the end of Stidger’s book I was inspired to read a quote from Bishop William Quayle (1860-1925)… “Ah, my soul, hast thou learned the lure of the book, and hast thou learned what a book is as a delight, and hast thou learned, not as a scholar reads, to get to be great, or to read as the egotist reads, to be thought wise, but hast thou read as God would read, to catch good and to see far, and, to learn to live, and to blazon thy scutcheon with the radiance of the morning light?” Read on, friends, and inspire others to do the same!
Gary Burrus has 27 years of experience in the gaming and hospitality industry. His experience spans property level, regional, and national operations. Specifically within the industry Gary has senior level experience in the areas of Customer Service, Resort Operations, multiple Hotel Operations (1,000+ rooms), RV park operations, Golf Course, Shooting Facilities, Entertainment and Recreation facilities, Convention Center, Retail Store Operations, Human Resource Management (benefits administration, compensation, 401(k) Administration, recruiting, employee engagement, training, union negotiations, employee wellness), Risk Management, Compliance, Government Relations, Community Relations, Security Operations, Transportation and Valet Operations, and interim General Management.
“A lot of my work is a matter of reacting to surprises in life.” Alexander Wang
What will the jobs report bring us? If the job market is strong, we may see the bond market yield go up, taking pricing on mortgage rates with it. If you are thinking about refinancing your mortgage to lower your interest rate, lower your payment, shorten your term or pull cash out to accomplish another project, don’t wait too late and get a negative surprise.
As we say on the radio show Real Estate Mortgage Shoppe, “Make your plan. Work your plan. If the deal works for you today, let’s do it today.”
Corelogic HPI reports the highest month-over-month gain we have seen with an 11.3% national rate of appreciation during the month. Corelogic anticipates our 2021 spring housing market will outpace trends we saw in 2019 and 2018. Millennials make up 54% of home purchase applications over the last year. The lack of homes available for sale erodes affordability and the costs of new construction. Catching mortgage rates while they are so low is very important in keeping your mortgage affordable.
Here are some things to do to avoid unpleasant surprises when you are getting a mortgage:
1. Don’t open new accounts or borrow money during your mortgage process. Mortgage companies check before you close on your loan to make sure you haven’t opened new accounts or borrowed more money from existing accounts. Don’t cosign for someone else while you are in the mortgage process.
2. Don’t move money around from one account to another account without checking first with your lender.
3. Don’t change jobs. Don’t change how you are paid. Don’t convert from the employee status when you get a W2 over to a 1099 subcontractor status.
4. Double-check with your mortgage officer and your closing attorney for the correct way to wire your funds to closing. Call the telephone numbers on your home purchase contract to reach your lender and title company, and don’t rely on contact info emailed to you. Avoid wire fraud by taking extraordinary care with where you wire your real estate closing funds.
5. Don’t make changes to the title on your real estate during the loan process before checking first with your lender and the closing attorney.
As a real estate professional or a mortgage professional, you can set up your own “Tips For A Smooth Mortgage and Closing Process” to give to your customers. You can deliver this to your client in written form or using a short video. Our clients appreciate an overview of the process before they get started. They appreciate these tips that will save them time, money and prevent unpleasant surprises.
Those of you that have worked with me know I am a stickler for vacation time. I push for a minimum of ten days to two weeks consecutive days unplugged, and a minimum of three other long weekends, three to five days, unplugged from your work. I say this from experience; you either unplug, or become unglued!
We all know how stress and drama can appear in our business. So many variables that can come crashing down at any time to sabotage a deal, transaction, or relationship, that going for an extended period of time without disconnecting can ruin more than just your career!
The reality is nobody is a machine! Now more than ever, surviving 2020 and all of the challenges that came with it, shows us the value in recharging our own physical and metal batteries! Vacation is more important as we come out of COVID because so many of us missed all or most of the opportunities to unplug last year and remain very active with massive opportunities! The key is to be sure your system is solid and easy to follow. Consistency and clarity are essential in making it possible for a co-worker or your team members to care for your business as you go away and care for yourself and your family.
You will often find that preparing for vacation often leads to multiple opportunities right before you leave. I believe the reason is that you are laser focused on all the little details of your business and you don’t waste time procrastinating! You do the work, you do it right, you do it completely, and you move on to what is next. You do this so the person or people around you understand what to do while you are gone! This often leads to improved outcomes! I have always said, if you want to generate more opportunities, go on vacation! If you want to go on vacation, you have to PLAN IT! So sit with a calendar and your loved ones and get a date circled to go. Even if you don’t know where you want to go, even if you aren’t clear on what to do; creating the dates you are going to be gone and scheduling at least one evening a week to work on that plan will help you get it all done!
Vacations – how winners keep on winning!
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Bring it Home® Communities accelerated its national rollout with the introduction of a patent-pending mobile application for real estate brokers and agents.
Called "Before They List®," this innovative app facilitates the collection of specific property information. It gauges interest in a given homeowner's property from other practitioners within an office and evaluates market viability. Practitioners may then report findings to the prospective homeowner, providing an efficient means of potentially generating a listing agreement.
"Inventory levels are at an all-time low, and we aim to provide the latest technology to assist with new listing procurement," explains John Giaimo, President and CEO of Bring it Home® Communities. "Obtaining feedback benefits homeowners who are still deciding and helps ensure an informed choice," adds Giaimo.
A recent homeowner survey found that 76% are considering placing their home on the market but are hesitant to do so. When asked, "What would motivate them to sell?" 60.2% stated "understanding the market and property value" could influence the decision. 16.2% would sell if they knew their home could fetch asking or peak market price.
In summary, providing an expert assessment of a specific property based on internal discussion has the potential to transform a casual homeowner conversation into a listing agreement.
"Many homeowners appear undecided based on survey data, as Scott O’Connor of RE/MAX Advantage of Colorado Springs, Colorado, noted. The Before They List® App allows timely evaluation of a property's sales potential and an informed determination of whether the timing is right and for what price to sell."
For more information: www.BeforeTheyList.com
About Bring it Home® Communities
Bring it Home Communities is creating the digital portal of the future for real estate, combining local listings and integrating brokers, agents, and consumers in a safe and secure communication environment. Bring it Home solutions will support new capabilities, including homeowner lead generation, Before You List ®, virtual open houses 1-Click Connection ™ for brokers, agents, and clients.
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Here we go again! The constant whine about how hard it is to be in real estate because of the lack of inventory. How tough it is to deal with multiple bid situations, houses selling well over asking, blah, blah, blah, blah, blah!
I might even buy into the challenges if it weren’t for a few things:
• 2018 was a record setting year – highest from 2006
• The 2019 came along and sold more homes than 2018
• Then, despite COVID-19, 2020 surpassed 2019.
Now we are seeing projections from many groups that expect 2021 to outpace 2020, and 2022 to be even stronger. So I ask this again, “Why is everyone so upset that so many people want to buy houses?” You would think people would be happy? I remember when the housing market went bad and there was what seemed like years’ worth of inventory sitting with nobody to even bother looking at them. Was being bored and broke, better than productive and profitable? The fact we all may have to work a little harder and process more transactions is a problem? Does everyone forget that there are no commissions paid on inventory?
Listings are great and begin the process, but without a buyer, you have nothing! I get that there are challenges, but thousands of people overcome the odds and win the contract to buy their home! In fact, as I wrote about last week, and spoke to in my interview with Realty Times Magazine published last Friday, if you focus on what is winning, you stand a better chance of being the one that wins!
So please; how about we focus on winning instead of whining; look at how deals are won in your market, not the reason you lost your bid, and put your mind straight as to the magnitude of the opportunity, not the difficulty or excuse of what needs to be done to WIN!
There are no commissions paid on inventory, you get paid when your client WINS!
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