Commentary by Verl Workman
RISMEDIA, April 22, 2011—Ever since I began my career in real estate, I was told that creating high touches with my database or my sphere of influence was one of the most valuable things I could do to build a great referral business. I remember really struggling with whether to send out fridge magnets, an annual calendar or some great recipe cards, and even spent a ton of time trying to find a company that created the most professional mailers. These interactions were designed to keep me and my brand at the front of the consumer’s mind so that when they thought about real estate, they thought of me first. I can honestly say it worked.
While those types of touches have value and many agents still use that method of marketing, we have found that today’s buyers and sellers are looking for a much more valuable interaction from their agents and brokers. The world has moved on to the Internet to find recipes; they view multiple calendars on computers and smartphones; and have access to so much information that the real value of “personality”-type marketing has been diminished.
Today, the consumer has moved on to new media, such as e-mail, Facebook, LinkedIn, Twitter and blogs. They look online for answers to questions and are more likely to go to Recipes.com than to a postcard that was once mailed by their agent. The challenge is to find the right content and provide information—not just be white noise in this information-overloaded environment. The most effective communication to your SOI is proving to be information that is less about us and why we are so great and more about the client, their home and their community.
It is not difficult to come up with good valuable content if you take off your REALTOR® hat and put on your homeowner hat. What information would you really like to know? For starters, everyone wants to know the value of their home—having a place where people can find what homes are selling for on a regular basis is a valuable touch.
Other information that is valuable includes anything that is going on in their community that might affect home values or provide entertainment. Changes to zoning, new communities being built, great restaurants and even helpful homeowner tips are great topics for your communication.
Many agents use the expertise of their partners—such as lenders—to provide mortgage options and describe new programs, inspectors giving tips on what to look for before you purchase, contractors, exterminators and even interior designers—all for the purpose of providing valuable content to their relationships. The media and delivery methods have changed; we can reach more people and spend a lot less money. The importance of valuable content has increased but the principles are the same. The more we reach out to our relationships with great content, the more likely we will remain at the front of the consumer’s mind, and the bottom line result is more valuable. The more frequent our touches, the deeper and stronger our relationships will grow.
Saturday, April 23, 2011
Sunday, April 17, 2011
How to manage homebuyer expenses
RISMEDIA, April 15, 2011—(MCT)—Homes are more affordable these days, the selection is abundant, and interest rates are still fairly low. For some people, it could well be a great time to buy.
But as too many struggling borrowers now realize, the cost of owning a home is hardly limited to paying the mortgage. There are a host of other checkbook-sapping details—both recognizable and unexpected—that can get overlooked in the excitement of buying a house, especially if it’s your first.
Ultimately, those things might mean the difference between home sweet home and foreclosure.
“It is extremely important to explain to all buyers, but especially first-time buyers, that there are additional expenses other than their monthly mortgage payment,” said Philadelphia-area real estate agent John Duffy.
Just because a lender has qualified you for a certain size mortgage doesn’t mean you have to spend that much on a house, Duffy said his agents caution buyers. “There will be additional, unforeseen costs, such as repairs, decorating, improvements, utilities and the like,” Duffy said. “We like to tell them that we want them to enjoy their new home and not be house-poor.”
Through the loan-qualifying process, some buyers, especially first-timers, become aware of the concept of spending only a certain percentage of their income on what is called PITI—principal, interest, taxes and insurance—”maybe 33 percent of income,” said Jerome Scarpello of Leo Mortgage in Ambler, P.A. The reason that percentage isn’t higher is that other expenses will be incurred with homeownership, he said.
“Of course, there are some folks who really need to be taught this,” Scarpello said, recounting a story he heard of borrowers who brought their electric bill to the bank when paying their mortgage. “They were surprised to learn,” he said, “the mortgage did not include electric, as their rental payment had.”
The “T” in PITI—taxes—can be extraordinarily expensive, depending on where you live. If you buy into a condo complex or a new-home development, you will have to factor in monthly homeowners association fees, as well. PITI and association fees are fixed costs, for the most part, although homeowners insurance rates and taxes can rise. Mortgage interest can change, too, if you don’t have a fixed-rate loan.
“I generally estimate high,” said Jeff Block of Prudential Fox & Roach in Philadelphia, “because I feel it is really important for buyers to have a conservative estimate and a detailed understanding of what their costs will be.”
Bruce Hahn, president of the grass-roots American Homeowners Association in Arlington, V.A., said home listings typically include historic costs for utilities, condo fees and taxes, “so it should not be hard for buyers to anticipate how much extra cash flow they’ll need to cover them.” If that information isn’t provided, Hahn said, buyers should use all other possible means to determine or estimate them in advance. He urged buyers to set aside a “rainy-day fund” for unanticipated major expenses, such as a broken heat pump or air conditioner or a roof leak. “Homeowners’ insurance plans often have lots of gaps, so there are many things they don’t cover.”
For example, Hahn said, he was glad his homeowners’ insurance included flood coverage “when our basement stairwell drain was clogged with leaves and water backed up in our basement.” However, “our insurance agent explained that flooding is what happens when the river rises, but what we had was ‘seepage,’” which the homeowners policy did not cover.
As Hahn cautioned, you need to be intimately familiar with deductibles as well as coverage limits, so your annual premium will likely be much higher than the state average when you finish crafting your policy.
You certainly can shop around for the best rates, and, in many cases, save money on the premium with a policy that covers your automobiles as well as your house.
But you should also allow for simultaneous unanticipated expenses, such as a car transmission failure and a fridge on the fritz. If you are living on the economic edge, enough of these disasters can push you over it.
“We believe that $10,000 in liquid savings (a money-market account or the like) that can be turned into cash anytime with very little risk of capital loss is not too much,” Hahn said, adding that $5,000 was the recommended minimum. Hahn’s group doesn’t advise using credit cards to meet emergency expenses, because their interest rates are high compared to what savings accounts pay today. “It is better,” he said, “to liquidate a savings account that is only paying 1 percent to pay for emergency costs than put them on a credit card and pay 15 percent.”
Among expenses to factor into a home-buying decision:
-Utilities: Heat, electricity, water and sewer, telephone, cable television, Internet and cell phones. You also may have to pay a fee for trash collection and recycling.
-Food/entertainment: Dining in and out, movies, hobbies.
-Children: Day care, tuition, lunch money, supplies, clothing, sports gear.
-Health costs: Braces, eyeglasses, medicine.
-Debt: Credit-card payments, car/student loans.
-Maintenance/repairs/decor: Furnishings and appliances, landscaping, snow removal.
-Job expenses: Transportation (gasoline or transit costs), auto maintenance.
(c) 2011, The Philadelphia Inquirer.
But as too many struggling borrowers now realize, the cost of owning a home is hardly limited to paying the mortgage. There are a host of other checkbook-sapping details—both recognizable and unexpected—that can get overlooked in the excitement of buying a house, especially if it’s your first.
Ultimately, those things might mean the difference between home sweet home and foreclosure.
“It is extremely important to explain to all buyers, but especially first-time buyers, that there are additional expenses other than their monthly mortgage payment,” said Philadelphia-area real estate agent John Duffy.
Just because a lender has qualified you for a certain size mortgage doesn’t mean you have to spend that much on a house, Duffy said his agents caution buyers. “There will be additional, unforeseen costs, such as repairs, decorating, improvements, utilities and the like,” Duffy said. “We like to tell them that we want them to enjoy their new home and not be house-poor.”
Through the loan-qualifying process, some buyers, especially first-timers, become aware of the concept of spending only a certain percentage of their income on what is called PITI—principal, interest, taxes and insurance—”maybe 33 percent of income,” said Jerome Scarpello of Leo Mortgage in Ambler, P.A. The reason that percentage isn’t higher is that other expenses will be incurred with homeownership, he said.
“Of course, there are some folks who really need to be taught this,” Scarpello said, recounting a story he heard of borrowers who brought their electric bill to the bank when paying their mortgage. “They were surprised to learn,” he said, “the mortgage did not include electric, as their rental payment had.”
The “T” in PITI—taxes—can be extraordinarily expensive, depending on where you live. If you buy into a condo complex or a new-home development, you will have to factor in monthly homeowners association fees, as well. PITI and association fees are fixed costs, for the most part, although homeowners insurance rates and taxes can rise. Mortgage interest can change, too, if you don’t have a fixed-rate loan.
“I generally estimate high,” said Jeff Block of Prudential Fox & Roach in Philadelphia, “because I feel it is really important for buyers to have a conservative estimate and a detailed understanding of what their costs will be.”
Bruce Hahn, president of the grass-roots American Homeowners Association in Arlington, V.A., said home listings typically include historic costs for utilities, condo fees and taxes, “so it should not be hard for buyers to anticipate how much extra cash flow they’ll need to cover them.” If that information isn’t provided, Hahn said, buyers should use all other possible means to determine or estimate them in advance. He urged buyers to set aside a “rainy-day fund” for unanticipated major expenses, such as a broken heat pump or air conditioner or a roof leak. “Homeowners’ insurance plans often have lots of gaps, so there are many things they don’t cover.”
For example, Hahn said, he was glad his homeowners’ insurance included flood coverage “when our basement stairwell drain was clogged with leaves and water backed up in our basement.” However, “our insurance agent explained that flooding is what happens when the river rises, but what we had was ‘seepage,’” which the homeowners policy did not cover.
As Hahn cautioned, you need to be intimately familiar with deductibles as well as coverage limits, so your annual premium will likely be much higher than the state average when you finish crafting your policy.
You certainly can shop around for the best rates, and, in many cases, save money on the premium with a policy that covers your automobiles as well as your house.
But you should also allow for simultaneous unanticipated expenses, such as a car transmission failure and a fridge on the fritz. If you are living on the economic edge, enough of these disasters can push you over it.
“We believe that $10,000 in liquid savings (a money-market account or the like) that can be turned into cash anytime with very little risk of capital loss is not too much,” Hahn said, adding that $5,000 was the recommended minimum. Hahn’s group doesn’t advise using credit cards to meet emergency expenses, because their interest rates are high compared to what savings accounts pay today. “It is better,” he said, “to liquidate a savings account that is only paying 1 percent to pay for emergency costs than put them on a credit card and pay 15 percent.”
Among expenses to factor into a home-buying decision:
-Utilities: Heat, electricity, water and sewer, telephone, cable television, Internet and cell phones. You also may have to pay a fee for trash collection and recycling.
-Food/entertainment: Dining in and out, movies, hobbies.
-Children: Day care, tuition, lunch money, supplies, clothing, sports gear.
-Health costs: Braces, eyeglasses, medicine.
-Debt: Credit-card payments, car/student loans.
-Maintenance/repairs/decor: Furnishings and appliances, landscaping, snow removal.
-Job expenses: Transportation (gasoline or transit costs), auto maintenance.
(c) 2011, The Philadelphia Inquirer.
Friday, April 8, 2011
Learn to use the tools of the trade
April 8, 2011 -- While many people consider the saying "location, location, location" to be the golden rule of real estate, the phrase "timing is everything" is equally as relevant. As a buyer, your search for a home with the right layout, location and price can be a challenging one given the numerous options available.
Fortunately, Greater Toronto REALTORS® have a number of tools that can quickly help you zero in on your next home.
When you use the services of a REALTOR® to help you search for a home, you are asked to sign a Buyer Agency Agreement (BRA). This agreement outlines your REALTOR®'s commitment to represent your best interests by working exclusively on your behalf for a designated period of time.
Be sure to visit wwwBRAFirst.ca for more information on the BRA and the benefits of signing one, or visit TREB's YouTube Channel at www.YouTube.com/TREBChannel, where you can find videos also outlining the benefits of signing a BRA.
Another one of a buyer representative's most important tools is the Toronto Real Estate Board's Buyer Registry Service (BRS), a password-protected database in which your REALTOR® can register your housing criteria.
As a privacy precaution, your personal information is only accessible to your REALTOR®, whose name is displayed for making contact.
REALTORS® who represent sellers can check the BRS to determine whether buyers' preferences match their clients' properties. While homes that match your criteria are emailed to you on a regular basis, communication between REALTORS® using the BRS can occur even faster.
Once listings that appeal to you are identified, your REALTOR® can compare asking prices to sold prices using the MLS. They can monitor other factors as well, like price changes and the number of days it has been on the market, to help you determine the best time to take action.
Working with a REALTOR® to buy or sell a property provides your REALTOR® the opportunity to put to use a number of other important databases, like the Teranet's land registry system, which can even provide information on the sold prices of properties not listed on MLS. It offers other key data as well, like neighbourhood demographic profiles, aerial views and land surveys.
The Municipal Property Assessment Corporation (MPAC) database meanwhile, provides information on a property's value, square footage, year of construction and more.
Thanks to RealNet Canada, your REALTOR® can even search a comprehensive database of new construction developments by housing type, location, price range and a number of other specific criteria.
Regardless of whether you choose new or resale, every market is different be sure to contact a REALTOR®. Their skills and expertise can give you a winning advantage.
For more information on how their unique tools and skills can help you find your next home, talk to a REALTOR® and visit www.TorontoRealEstateBoard .com where you'll find neighbourhood profiles, market updates, GTA open house listings and more.
Bill Johnston is President of the Toronto Real Estate Board, a professional association that represents 31,000 REALTORS® in the Greater Toronto Area.
Fortunately, Greater Toronto REALTORS® have a number of tools that can quickly help you zero in on your next home.
When you use the services of a REALTOR® to help you search for a home, you are asked to sign a Buyer Agency Agreement (BRA). This agreement outlines your REALTOR®'s commitment to represent your best interests by working exclusively on your behalf for a designated period of time.
Be sure to visit wwwBRAFirst.ca for more information on the BRA and the benefits of signing one, or visit TREB's YouTube Channel at www.YouTube.com/TREBChannel, where you can find videos also outlining the benefits of signing a BRA.
Another one of a buyer representative's most important tools is the Toronto Real Estate Board's Buyer Registry Service (BRS), a password-protected database in which your REALTOR® can register your housing criteria.
As a privacy precaution, your personal information is only accessible to your REALTOR®, whose name is displayed for making contact.
REALTORS® who represent sellers can check the BRS to determine whether buyers' preferences match their clients' properties. While homes that match your criteria are emailed to you on a regular basis, communication between REALTORS® using the BRS can occur even faster.
Once listings that appeal to you are identified, your REALTOR® can compare asking prices to sold prices using the MLS. They can monitor other factors as well, like price changes and the number of days it has been on the market, to help you determine the best time to take action.
Working with a REALTOR® to buy or sell a property provides your REALTOR® the opportunity to put to use a number of other important databases, like the Teranet's land registry system, which can even provide information on the sold prices of properties not listed on MLS. It offers other key data as well, like neighbourhood demographic profiles, aerial views and land surveys.
The Municipal Property Assessment Corporation (MPAC) database meanwhile, provides information on a property's value, square footage, year of construction and more.
Thanks to RealNet Canada, your REALTOR® can even search a comprehensive database of new construction developments by housing type, location, price range and a number of other specific criteria.
Regardless of whether you choose new or resale, every market is different be sure to contact a REALTOR®. Their skills and expertise can give you a winning advantage.
For more information on how their unique tools and skills can help you find your next home, talk to a REALTOR® and visit www.TorontoRealEstateBoard .com where you'll find neighbourhood profiles, market updates, GTA open house listings and more.
Bill Johnston is President of the Toronto Real Estate Board, a professional association that represents 31,000 REALTORS® in the Greater Toronto Area.
Thursday, April 7, 2011
The real estate sign is where dreams begin
There are all manner of signs that are posted on properties all the time.
Prime examples are commercial buildings. Signs declare the name of architects and planners. There are signs that state who is doing construction work at a site, even the name of demolition companies when old buildings are taken down prior to a rebuild. Many signs say the name of the company or bank that provided the financing on a project or a complex.
These kinds of signs are not exclusive to major commercial buildings. There are signs on house lawns in residential areas too. It is not uncommon to see architect’s names on signs for major renovations and rebuilds. There are signs letting the neighbourhood know that interior design is taking place inside. There are signs that declare the name of roofers, painters, paving companies, new bathroom installations and just about everything else related to all structures.
Of all the signs that are on a property a Realtor’s sign provokes the most thought and attention. A Realtor’s sign is the most important sign of all them because it shows everyone that everything is starting now. It’s the best sign a property could have.
A Realtor’s sign is a marker for imagination and a place where dreams begin. It is a beacon of things to come. Anyone who looks down a residential street will see a neighbourhood. But anyone who looks at a property on the same street with a real estate sign imagines what it would be like if they lived in the neighbourhood.
It makes me crazy that a Realtor’s sign is not marketed and vigorously promoted by the industry in commercials, videos and even brochures for what it is; a symbol of possibilities to come. From a condo to a mansion to a mobile home, this sign means the potential fulfillment of a dream. I don’t care who you are, if you can think, if you can dream, then your imagination starts as soon as you see a Realtor’s sign. It’s automatic.
The public should be educated that when a Realtor’s sign appears at the front of a property it means the work of a professional is underway. Planning has been done. Hard facts have been laid out for this property to go on the market. Research has been conducted, reviews have been thoroughly carried out, mechanicals have been inspected, an accredited staging company may have been consulted, value has been assessed and a price has been carefully decided.
This is not just some willy nilly shot at sellin’ the place by some guy that’s a friend of a friend who says he knows real estate. This is a property offered for sale with a price that truly reflects the market because it is backed by the expertise of a recognized licensed professional Realtor. There is a plan in place here that ensures integrity to the seller and dignity to the buyer.
We should say out loud what everybody already knows! A Realtor’s sign means what could be. A Realtor’s sign is a declaration that a licensed real estate professional has come to facilitate a home transition. A Realtor’s sign out front validates your dreams. A Realtor’s sign says this place is worthy of your imagination because it could actually be yours. A Realtor’s sign tells you that you can begin real and meaningful projections in your mind.
A Realtor’s sign on a property is always alone. There may be work done to get a place ready for sale, but no other sign is placed once a Realtor’s work begins, nor is there any other sign on the property until a Realtor’s work has been completed. The architects, the designers, construction contractors and renovation crews all must stand by and wait until a Realtor has enabled the process.
That’s why a Realtor sign is so important. That sign has to be cared for, straight, clean and upright. It must reflect the great importance it stands for. Nothing saddens me more than a haggard sign askew, nailed on a fence post in some forlorn location. Do it right, get a good sign. Get a great sign! Make it magnificent!
I have always believed that real estate companies and franchise companies greatly enhance a real estate representative’s ability to serve customers with tools and brand awareness that an individual Realtor simply cannot provide. The value of belonging to a good company or franchise is irrefutable.
Beyond that, a Realtor’s sign is the standard bearer of professional marketing. It is in many ways the signature of the trade. I wish it was recognized and publicized for what it truly represents.
Heino Molls is publisher of REM. Email heino@remonline.com.
Prime examples are commercial buildings. Signs declare the name of architects and planners. There are signs that state who is doing construction work at a site, even the name of demolition companies when old buildings are taken down prior to a rebuild. Many signs say the name of the company or bank that provided the financing on a project or a complex.
These kinds of signs are not exclusive to major commercial buildings. There are signs on house lawns in residential areas too. It is not uncommon to see architect’s names on signs for major renovations and rebuilds. There are signs letting the neighbourhood know that interior design is taking place inside. There are signs that declare the name of roofers, painters, paving companies, new bathroom installations and just about everything else related to all structures.
Of all the signs that are on a property a Realtor’s sign provokes the most thought and attention. A Realtor’s sign is the most important sign of all them because it shows everyone that everything is starting now. It’s the best sign a property could have.
A Realtor’s sign is a marker for imagination and a place where dreams begin. It is a beacon of things to come. Anyone who looks down a residential street will see a neighbourhood. But anyone who looks at a property on the same street with a real estate sign imagines what it would be like if they lived in the neighbourhood.
It makes me crazy that a Realtor’s sign is not marketed and vigorously promoted by the industry in commercials, videos and even brochures for what it is; a symbol of possibilities to come. From a condo to a mansion to a mobile home, this sign means the potential fulfillment of a dream. I don’t care who you are, if you can think, if you can dream, then your imagination starts as soon as you see a Realtor’s sign. It’s automatic.
The public should be educated that when a Realtor’s sign appears at the front of a property it means the work of a professional is underway. Planning has been done. Hard facts have been laid out for this property to go on the market. Research has been conducted, reviews have been thoroughly carried out, mechanicals have been inspected, an accredited staging company may have been consulted, value has been assessed and a price has been carefully decided.
This is not just some willy nilly shot at sellin’ the place by some guy that’s a friend of a friend who says he knows real estate. This is a property offered for sale with a price that truly reflects the market because it is backed by the expertise of a recognized licensed professional Realtor. There is a plan in place here that ensures integrity to the seller and dignity to the buyer.
We should say out loud what everybody already knows! A Realtor’s sign means what could be. A Realtor’s sign is a declaration that a licensed real estate professional has come to facilitate a home transition. A Realtor’s sign out front validates your dreams. A Realtor’s sign says this place is worthy of your imagination because it could actually be yours. A Realtor’s sign tells you that you can begin real and meaningful projections in your mind.
A Realtor’s sign on a property is always alone. There may be work done to get a place ready for sale, but no other sign is placed once a Realtor’s work begins, nor is there any other sign on the property until a Realtor’s work has been completed. The architects, the designers, construction contractors and renovation crews all must stand by and wait until a Realtor has enabled the process.
That’s why a Realtor sign is so important. That sign has to be cared for, straight, clean and upright. It must reflect the great importance it stands for. Nothing saddens me more than a haggard sign askew, nailed on a fence post in some forlorn location. Do it right, get a good sign. Get a great sign! Make it magnificent!
I have always believed that real estate companies and franchise companies greatly enhance a real estate representative’s ability to serve customers with tools and brand awareness that an individual Realtor simply cannot provide. The value of belonging to a good company or franchise is irrefutable.
Beyond that, a Realtor’s sign is the standard bearer of professional marketing. It is in many ways the signature of the trade. I wish it was recognized and publicized for what it truly represents.
Heino Molls is publisher of REM. Email heino@remonline.com.
Tuesday, April 5, 2011
Internet security is "a lie"
By Christopher Null
All your online bill paying and money transfers are exposing you to a serious risk of fraud and other online maladies - far worse than you've ever imagined and getting worse every day.
Specifically, incidents of online fraud have increased four-fold in the last six months, according to Financial Times cyber security reporter who's sounding the alarm about the safety of the money we make accessible via the web.
Writer Joseph Menn is calling for a mass overhaul of web security, a "Manhattan Project" that will turn an inherently insecure technology - the web - into one designed with protection in mind. And that may not even be possible on our current infrastructure. "Anything financial, anything commercial, anything government needs to be on a different network," he says. "We can keep our current computers and chips, but we need different protocols, different ways for computers to talk to each other that do not rely on openness and trust."
According to Menn, electronic fraud is hardly the stuff of petty criminals but rather the purview of major international crime rings, predominantly operating out of Russia and China. Today such crime is a $1 trillion industry, and our government has been largely powerless to stop it.
Menn is calling for better coordination between the FBI and CIA and the law enforcement groups of other countries in order to stop the growth of cyber crime, but ultimately we need a real technological solution to the issue, not so much a regulatory one.
All your online bill paying and money transfers are exposing you to a serious risk of fraud and other online maladies - far worse than you've ever imagined and getting worse every day.
Specifically, incidents of online fraud have increased four-fold in the last six months, according to Financial Times cyber security reporter who's sounding the alarm about the safety of the money we make accessible via the web.
Writer Joseph Menn is calling for a mass overhaul of web security, a "Manhattan Project" that will turn an inherently insecure technology - the web - into one designed with protection in mind. And that may not even be possible on our current infrastructure. "Anything financial, anything commercial, anything government needs to be on a different network," he says. "We can keep our current computers and chips, but we need different protocols, different ways for computers to talk to each other that do not rely on openness and trust."
According to Menn, electronic fraud is hardly the stuff of petty criminals but rather the purview of major international crime rings, predominantly operating out of Russia and China. Today such crime is a $1 trillion industry, and our government has been largely powerless to stop it.
Menn is calling for better coordination between the FBI and CIA and the law enforcement groups of other countries in order to stop the growth of cyber crime, but ultimately we need a real technological solution to the issue, not so much a regulatory one.
Subscribe to:
Posts (Atom)
