KTS Message

Dear Friends,

We've been busy here at Kane Title. I'm pleased to announce the  launch of our new website: www.kanetitle.com and newsletter. 

As you all know we pride ourselves on the personalized service that 
we provide. We wanted our new website to better reflect our values
and commitment to service excellence.  We will be adding many features to the website in the weeks to come.

As always we welcome all your comments and questions.

Sincerely,

Jason S. Kane

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Real Estate Listings Inventories Rising

Home inventory levels are rising and in many areas it's taking more than 30 days for homes to sell, according to an industry survey released today. However, strong buyer demand, record and near-record monthly sales, continued median home price appreciation, strong job growth and relatively low mortgage rates are fuelling momentum in the nation's housing market. 

According to the survey, buyers still outnumber sellers at 61 percent and 39 percent, respectively.

Other highlights from the third-quarter market conditions survey were:

Longer days on the market: Fifty-two percent of respondents said it takes more than 30 days to sell a home from listing to contract. This is up from the second quarter when only 35 percent reported 30 days or more. A year ago, the estimate was about 50-50.

Inventory is increasing: Fifty-nine percent of respondents said there is a good supply of unsold homes. This contrasts with 38 percent in the second quarter. An overwhelming 85 percent of agents reported that the supply of unsold homes is steadily increasing.

Home prices appreciating: Forty-six percent of respondents said home prices have appreciated more than 10 percent in the past year. This is up from 42 percent in the second quarter. It was about 50-50 a year ago.

Home sales prices still strong: Sales agents reported that 80 percent of home sellers are getting 95-100 percent of asking prices. This is down from 90 percent in the second quarter. A year ago the percentage was only 67 percent.  

First-time-buyer activity remains steady: First-time-buyer activity is estimated at 36 percent in the latest survey, up slightly from 35 percent in the second quarter, 40 percent in the first quarter, and 36 percent a year ago.

Market growth: Sixty percent of respondents said the housing market is fueled by job and population growth in many parts of the country. Strong local economies are also a factor. Demand is still outstripping supply.

Sellers getting multiple offers: Seventy percent of respondents said they are receiving multiple offers on listings. This estimate is consistent with the last two quarters and a year ago.

Buyers still outnumber sellers: Home buyers outnumber sellers 61 percent to 39 percent, according to the survey. This margin is slowly shrinking from a two-to-one margin a year ago.

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New Credit Report to help Lenders and Realtors

An important new resource for Realtors and lenders became available Oct. 3, 2005: Home buyers with "thin" credit histories or artificially-depressed Fair Isaac (FICO) credit scores can now obtain alternative credit reports and scores based on their on-time payments to landlords, utilities, cable companies and other recurring accounts 
not included in national credit bureau files.

The new reports and scores will be available through 150-plus independent credit agencies who are members of the National Credit Reporting Association (NCRA). They are often the regular vendors 
of credit reports for mortgage brokers and banks across the country. NCRA has joined with the only credit bureau that specializes in collecting and electronically maintaining consumers' "alternative" account data -- PRBC, Inc., based in Annapolis, MD -- to offer the 
new service starting Oct. 3.

PRBC takes rent, utilities, cable and even child support and payday 
loan account information, has it verified independently, and compiles credit reports and scores based on data uncollected by the "big three" bureaus -- Equifax, Experian and Trans Union. The scores and reports are then used by lenders to more accurately evaluate mortgage applicants who either have minimal banking account histories, or whose traditional FICO scores simply do not reflect their extensive on-time payments to landlords and other monthly accounts.

The new service is expected to be particularly useful to young and minority home loan applicants, many of whom have FICO scores that force them into costly subprime mortgages at high rates and fees. Under the federal Equal Credit Opportunity Act, lenders who access national credit bureau data to underwrite mortgages are required to look at supplementary information not contained in the bureau files that may shed light on applicants' creditworthiness.

Under the agreement between NCRA and PRBC, regional and local credit agencies will be the exclusive "verifiers" of account data supplied to PRBC by consumers. When asked by a mortgage broker or lender client to run a credit check on a mortgage applicant, the credit agencies will first pull the applicants' national bureau files and FICO cores. If the scores are too low to qualify for the loan the applicants need to buy a house, the lender or broker will then ask about rent and other payments that are not reported to the national bureau databases.

If the home buyers say they can document a year or more of on-time payments for rent, utilities, cable and other accounts, the NCRA-member credit agency will then verify the information directly with landlords and other sources.

"It's what our members do everyday" in connection with mortgage credit reports, said Terry Clemans, executive director of NCRA, "so it's no stretch for them to do it" here. After checking out the data, the credit agency and PRBC will then be able to supply the mortgage loan officer with an "enhanced" full-picture credit report including verified accounts not contained in the national bureau files.

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Round Up Referrals

Here's some tips for increasing your referrals:

Add referral requests to all your marketing:

 - At the end of your email signature
 - On your business cards
 - On your website
 - In your advertising

Ask for referrals:

At application: Thank them for their business, and let them know you  will be sending a thank you card to the person that referred them, explaining that your business is built on referrals and emphasizing how much you appreciate them. Leave them with a few extra cards in case “someone you know is looking for home financing.”

At approval: This is an exciting and emotional moment for many. Send a “Congratulations on Your Approval” card or letter with more business cards and a note letting them know you’d love the opportunity to work with other clients like them.

At closing: What a better time to let clients know how much you loved working with them, and how much you would appreciate working with others like them.

At follow-up after closing: Reminding past clients that you appreciate their recommending you is a never-ending job. Don’t ask for referrals in holiday or birthday cards. Do ask for them elsewhere.

Some low-key but effective e ways to ask in writing:

“If you think that we are doing a great job, will you do us a favor? Don’t keep us a secret! Our business is built on our happy client’s referrals to friends and family members.” “The highest compliment 
I can receive is a referral from a satisfied client.”

“If you know of anyone who may be in need of my services, I’d love you to pass on my name. Your friends and family members will receive the highest level of service I can provide.”

Further ways to increase referrals:

Make sure to thank them. Do not wait until the refer-ee closes. Thank them as soon as you hear that they referred someone. Send a gift. It doesn’t have to be much, but send something as appreciation. Line up different gifts for each referral. Keep track of it all in your database.

Write a note from the heart. If referrals are truly important to you, spend a few minutes writing a heart-felt note. Your staff can substitute names and duplicate it, but the sentiment can speak volumes.

Excerpt form: Boni Lonnsburr of In Touch Today Corporation

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