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IN THIS ISSUE:
- A Message From Jason Kane
- How To Competition Proof Your Business
- East Coast Real Estate Sales
- Bush Says Mortgage Reduction To Stay
Dear Friends,
Spring is rapidly approaching,
and I am sure that you are as excited as I am. We are looking
forward to a dramatic increase in volume, as sales and refinances
should be picking up.
Hopefully the time all of us have spent establishing new
relationships and solidifying existing relationships will prove
positive.
As always, I welcome all of your
comments. Please don't hesitate to contact me if I can assist you
in any manner.
Sincerely,
Jason S. Kane, Esq.
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Last Months Trivia:
What was the first land designated by the US Government as a
National Park?
Answer: Yellowstone.
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by Brian Sacks, Branch
Manager, Integrity Home Funding LLC
The competition for business
is more fierce than ever. In fact some statistics from the various
mortgage associations tell us that in 1999 there were
approximately 200,000 loan officers in the country. There are now
over 430,000 loan officers. This of course means that there are
more than twice as many people going after the same business.
When rates are low this is not a
problem because there is more than enough business for everyone to
make a nice living. However, when rates go up and refinances stop,
that is when the real problems begin for us. Now we have everyone
chasing the same deal, so we must work harder and we make less
because we have to cut our prices to be competitive.
The first response to this
situation for most loan officers is fear which then turns to
frustration. The good news is that there is a solution… I would
like to share with you a little story that I think will help you
understand my strategies.
My 10-year-old daughter recently
had to have an operation to correct a problem with the ankles on
each foot. My wife and I contacted several doctors and finally
found the one to perform this delicate and complicated surgery.
The doctor we chose was a pediatric, orthopedic surgeon who
specialized in ankles. Please read the previous sentence again.
This doctor had positioned
himself in a very specific niche and was clearly the expert. His
office was located an hour and a half from our home and he was
only available to meet with us on Monday, Wednesday and Thursday
from 9:30 am to 3 pm. Well, since we knew we could accept nothing
but the best, we decided he was the one to perform the surgery.
We did not compare his prices to
other surgeons and we took off of work and traveled an hour to get
to his office. Why? We had a problem and only wanted an expert to
solve it.
There are many things to learn
from this example that apply to our business.
-
We are both selling a service
not a product.
-
The industry is very
competitive and consumers have many providers (doctors and
loan officers) to choose from.
-
As a client / patient the
promise of good service is only able to be proven after the
fact.
Just like this doctor you can
also set yourself up as the expert in a niche. Here are some areas
you might choose to specialize in:
-
Reverse mortgages
-
Construction / perm loans
-
203k and rehab loans
-
No-doc loans for self employed
-
100% for buyers with great
income and credit but not enough money for down payment and
closing
-
Interest-only loans
My own niche is “Helping buyers
who have had a bankruptcy or other credit issue get into a home
with low rates and very little money down.” This is one of the
fastest growing niches in our industry today. In fact 1 out of
every 3 buyers you meet will have a credit issue. Bankruptcies
have increased every year over the past 5 years with no end in
sight.
When you are seen as The Expert,
buyers will come to you already sold on using your services. You
will no longer have to deal with rate shoppers or work evenings or
weekends.
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Home sales in North Carolina
posted double-digit growth for the 13th straight month in January,
while sales in Massachusetts reported their weakest January in 10
years, according to Realtor associations in both states.
Existing-home sales in North
Carolina totaled 8,399 in January, showing a 13 percent increase
from sales recorded a year earlier, according to statistics
compiled by the North Carolina Association of Realtors.
The state's average existing-home
sales price was up 4 percent to $206,788.
Areas of North Carolina with the
strongest sales growth include Brevard (141 percent), Goldsboro
(59 percent), the Triad (41 percent), Jacksonville (39 percent)
and Greenville (38 percent). Additionally, several areas of the
state experienced high levels of price appreciation including the
Triad and Asheville at 20 percent, Fayetteville at 19 percent and
Goldsboro at 18 percent.
In Massachusetts, the
once-red-hot housing market showed further signs of returning to
normal in January as sales of detached single-family homes fell to
their lowest January level in 10 years, sliding 21 percent from
2,968 homes sold in January 2005 to 2,345 in the same month this
year. The last time there were fewer January sales was 1996 when
2,332 homes sold.
In addition, condominium sales
improved a modest 2.5 percent over the past 12 months - the
second-smallest gain in year-to-year sales activity in the past 12
months. Still, the sales gain was enough to set a new monthly
record, as sales climbed to a new all-time high of 1,281 from the
old record of 1,250 units sold in January 2005.
In fact, the statewide median
selling price for detached single-family homes decreased 2.4
percent in January, falling from $354,000 in December 2005 to
$345,500 in January 2006, while the statewide median selling price
for condos dipped 1.8 percent, from $275,000 in December to
$270,000 during January.
January's more moderate prices
reflect a sharp increase in inventory levels over the past year,
MAR reported. Collectively, active listings for detached
single-family homes and condominiums have increased 41 percent
since last January, from 36,168 homes and condos for sale in
January 2005 to 51,122 units for sale this past January.
"For the last few years,
buyers often outnumbered the supply of homes for sale allowing
prices to escalate rapidly, but that's no longer the case,"
said MAR President David Wluka, of Wluka Real Estate in Sharon.
"As we return to a more normal market, we expect prices to
stabilize, which should be welcome news to buyers and good for the
long-term health of the housing market."
Source: Inman News
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President Bush rejected the idea
of any change in the US tax code that would eliminate the
deduction for mortgage interest. During a question-and-answer
session in Florida, Bush was urged by a homeowner to make sure
that housing remains affordable.
''Maybe you're hinting at whether
or not the mortgage deduction would be part of a plan," Bush
responded. ''I don't think you have to worry about the mortgage
deduction not being a part of the income tax law."
A panel appointed by Bush last
year recommended reducing the tax deduction for mortgage interest
as part of a larger plan to simplify the tax code. Bush, who has
called the tax code a complicated mess, is having the Treasury
Department review the panel's recommendations.
The president made his comment
during a one-day visit to Florida that included a speech to rally
support for his efforts in Iraq at the Port of Tampa before an
invited audience. Before that address, Bush got an update on the
war on terror in an hour-long briefing at the US Central Command
at MacDill Air Force Base, which oversees forces in Iraq and
Afghanistan.
The White House, which had
considered rolling out a plan this year on tax simplification, has
delayed that idea. Some Republicans have said some of the
recommendations from the panel, such as the one on mortgage
interest, might generate too much controversy, especially in the
current congressional election year.
Referring to concerns a builder
had raised about interest rates, Bush said, ''You'll be happy to
hear I don't set interest rates." He went on
to praise new Federal Reserve chairman Ben Bernanke. However, he
added, ''If I were you I'd be worried about interest rates."
Source: Globe Newspaper Company
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