By George White, RE/MAX Times Online Managing Editor
The U.S. Treasury Department last week unveiled a plan designed to streamline and encourage short sales, a move RE/MAX leaders have been advocating for some time.
Under provisions of the newly created "Foreclosure Alternatives Program," the process will soon include standardized documentation, cash incentives to lenders and moving allowances for homeowners.
RE/MAX International supports the government's action.
"We applaud the administration for creating the Foreclosure Alternatives Program, which promotes the short-sale process," says RE/MAX International Chairman and Co-Founder Dave Liniger (ABR, CRB). "We've been talking with key lenders and government officials for months about the short-sale issue and couldn't be more pleased that our hard work has finally paid off."
Here's a Treasury Department fact sheet about the plan, as well as a release from the National Association of Realtors.
Because RE/MAX International leadership recognized the viability of short sales as an important piece of the foreclosure puzzle, more than 5,000 Associates already have been trained through the Certified Distressed Property designation course, which covers the process in detail. The next airing on RSN is June 9-10.
"We've been preparing for, and pushing for, this type of action," says Mike Ryan, RE/MAX International Senior Vice President of Media Training. "We've felt for a long time that short sales provide a lifeline for homeowners who can't afford to stay in their homes, even with a loan modification. With a short sale, the sellers get out of a bad situation, the banks save on costs and the neighborhood avoids the many problems associated with vacant, foreclosed properties."
Ryan says it's more important than ever for Associates to learn how to handle short sales, which have traditionally been avoided by agents unwilling to navigate the long, frustrating and often unsuccessful terrain.
"It's understandable why many Associates have been reluctant to pursue this business. But with distressed properties accounting for half of U.S. sales and a whole new level of attention now being put on making short sales easier to complete, it really is time to let go of any reservations," Ryan says. "With the Treasury Department's involvement, we're going to see a lot more emphasis on short sales, through lenders, the media and the public. Our people need to be as educated as they can be about this segment of the market."
Two days after the Treasury announcement, The New York Times published a story, headlined "Lenders More Open to Short Sales," that included this passage:
"Mr. Mitchell of Lynx says short sales are often the best approach, even for homeowners considering a new loan to save the home. 'It's gotten to the point where people understand that sometimes you have to start over,' he said. 'A loan modification might help you in the short term, but sometimes what people need to do is get out completely.'"
The perception of short sales is clearly changing, Ryan says.
"It's up to us, and each individual Associate and brokerage, to be prepared," he says. "The foreclosure problem isn't going away anytime soon, and in fact will probably get worse before it gets better. But short sales provide a source of relief - and we want our agents to be able to close them better than anyone."
up to us, and each individual Associate and brokerage, to be prepared," he says. "The foreclosure problem isn't going away anytime soon, and in fact will probably get worse before it gets better. But short sales provide a source of relief - and we want our agents to be able to close them better than anyone.
The Biggest Mistakes Real Estate Agents Make!
THE BIG MISTAKE:
“The market is so slow and I don't even know where my next sale is coming from.” How often have you heard someone say that when business is down and the economy is questionable? It seems logical, doesn't it, to tighten your purse strings? “What! Are you suggesting that I should invest in my business now?”
Even though it seems logical to tighten up and constrict spending, it is actually based on a “scarcity” mindset. In a scarcity mindset you focus on lack in your business, and on lack in outer conditions and the market.
The result is a constriction in the flow of energy to your business. In fact, when you focus your thoughts on lack in your business, you have a problem even before you begin. Hence, THE BIG MISTAKE.
Are you constricting the flow of energy to your business? Here are some signs to watch out for:
1. What are your thoughts?
· I don't have enough clients
· My competitors are stealing business
· I can't succeed in today's market
Here's an example that contains a scarcity mindset:
“There are so many new agents entering the business there isn't enough business to go around. Maybe I should just get a real job.” Have you ever had that thought?
2. What emotions do you experience?
· Fear
· Stress
· Struggle
· Anxiety
· Worry
Any of the thoughts above are likely to create the emotions of worry, fear and doubt. You find yourself dwelling in these negative feelings that will prevent you from attracting to your business and the very things you desire, such as more clients and more income. Your thoughts create your reality. Therefore, if you focus on what you don't want, like the lack of money, you'll get more of that.
3. ACTIONS
When you're stuck in a scarcity mindset, not only does it affect your thoughts and feelings, but also your actions. For example, “I was going to take the weekend off, but now I better not. Business is slow and I don't want to miss a call from a prospective client.”
Do you see how this is a scarcity mindset? What is the person missing out on? If you said “self-care and self maintenance”, then you are right. This is one of the actions that goes by the wayside when you're focusing on scarcity. You're simply afraid that you won't have enough so you ignore the importance of taking care of yourself. So what is the big mistake?
The big mistake is that you are focusing your thoughts on outward circumstances, like the economy, to determine your mindset. If the economy is down you are down. Stephen Covey calls this the “reactive” mindset. You believe that you are acted upon, rather than being “proactive” and there is a constriction of energy to your business.
When you are proactive, you don't focus on what the economy or the market is doing, you are coming from an internal state of prosperity consciousness. You don't look to outer conditions to determine your state of mind, you determine your own state of mind by your thoughts, emotions and actions. In essence you create the mindset of being the deliberate creator of your life.
The solution:
If the mindset is the problem, then how do you switch to a more positive mindset?
1. Commit to building a “prosperity” mindset
A “prosperity” mindset is not something you are born with, it's not in your genes; it’s something that you develop through practice. Think of it as a muscle that you exercise. The more you exercise it, the stronger that muscle becomes.
It's the same with “prosperity” mindset. Successful people have one thing in common – they believe in their own success and their ability to attract money into their life. They look for opportunities and find them... everywhere. Why? Because they had an internal prosperity consciousness and they focused on that state of looking at external conditions.
2. Adopt the beliefs of success
It's easy to adopt a successful mindset - it's just a shift in focus from scarcity to prosperity. The way you make that shift is to have a set of beliefs that are congruent and prosperous thinking. For example, Walt Disney once said, “All of our dreams come true if we have the courage to pursue them.” Here are the beliefs of successful people:
· Change is to be embraced because it represents more opportunity for growth and expansion.
· Determine what you want, and assume you'll get it. Don't worry about the ‘how’.
· There is an answer and solution to every challenge.
· Discomfort is part of charting the unknown.
· Obstacles will not stop them from attaining what they want.
· Money needs to flow in order to grow.
You'll notice that if you practice the beliefs above, you will experience positive emotions that expand the flow of energy to your business.
3. Be clear on what you want
How can the universe give you what you want unless you are clear about what you want? A challenge for you here is to break the “want” barrier. Accept the fact that it is not only appropriate and proper, but critical, for you to want anything, of any kind, to any degree.
The main thing is to be clear about what you want for your business. I hear too many people saying, “I want to be successful” without even knowing what success means to them. I suggest visualizing your ideal professional life in 12 months from today.
See yourself doing work you love and noticing approximately how many hours a week you're working. Ask yourself what kind of people you want to be interacting with. Who are your ideal clients? Are they motivated, decisive and respectful of you and your service to them? What is your income in 12 months from today? How much are you making per year or per month?
4. Clear away any opposing beliefs
When you think about your ideal professional life, what beliefs do have that are opposing your vision? Here are some beliefs that I hear on a continual basis when people are honest with me about discussing their blocks to success:
“I like doing my work, I'm just not good at marketing.” (Remember, it's only a belief) “I'm really not smart enough or energetic enough to achieve what I want.” (Remember, it's only a belief)
“The real estate market is so tough right now that I can't possibly make the income I was hoping for.” (Remember, it's only a belief)
5. Take inspired action not frantic action
What kind of action are you taking? Are you taking action because you're afraid? If you are, your action may be frantic action rather than inspired action.
What is inspired action? Inspired action comes from your intuition and listening to your gut instincts. You follow your heart, you follow your hunches; you don't wait for someone to hand you a formula because there is none.
You will know if you’re taking inspired action by the way you feel by the results you are getting. You’ll be feeling relaxed and confident and the results that you will be getting will be one or more of the following:
· Increased clientele
· Increased income
· Increased passion for your work
As a review, remember to avoid THE BIG MISTAKE by being conscious of what you focus on.
Don’t let the outer conditions determine your mindset. Keep a mindset of prosperity and practice the beliefs of successful people. Keep remembering to expand the flow of energy to your business, whatever the market is doing.
When times seem tough, it is especially important to stay away from a scarcity mindset. Instead, go within and look for the opportunities for new ways to market yourself from a prosperity mindset.
Dr. Maya Bailey, author of, Law of Attraction for Real Estate Professionals, integrates 20 years of experience as a psychologist and 12 years as a business coach with her expertise in the Law of Attraction. Her powerful work creates a success formula for real estate professionals ready to double and triple their incomes. Get Dr. Maya's free report, 7 Simple Strategies For More Clients in 90 Days, by visiting http://www.90daystomoreclients.com/
“The market is so slow and I don't even know where my next sale is coming from.” How often have you heard someone say that when business is down and the economy is questionable? It seems logical, doesn't it, to tighten your purse strings? “What! Are you suggesting that I should invest in my business now?”
Even though it seems logical to tighten up and constrict spending, it is actually based on a “scarcity” mindset. In a scarcity mindset you focus on lack in your business, and on lack in outer conditions and the market.
The result is a constriction in the flow of energy to your business. In fact, when you focus your thoughts on lack in your business, you have a problem even before you begin. Hence, THE BIG MISTAKE.
Are you constricting the flow of energy to your business? Here are some signs to watch out for:
1. What are your thoughts?
· I don't have enough clients
· My competitors are stealing business
· I can't succeed in today's market
Here's an example that contains a scarcity mindset:
“There are so many new agents entering the business there isn't enough business to go around. Maybe I should just get a real job.” Have you ever had that thought?
2. What emotions do you experience?
· Fear
· Stress
· Struggle
· Anxiety
· Worry
Any of the thoughts above are likely to create the emotions of worry, fear and doubt. You find yourself dwelling in these negative feelings that will prevent you from attracting to your business and the very things you desire, such as more clients and more income. Your thoughts create your reality. Therefore, if you focus on what you don't want, like the lack of money, you'll get more of that.
3. ACTIONS
When you're stuck in a scarcity mindset, not only does it affect your thoughts and feelings, but also your actions. For example, “I was going to take the weekend off, but now I better not. Business is slow and I don't want to miss a call from a prospective client.”
Do you see how this is a scarcity mindset? What is the person missing out on? If you said “self-care and self maintenance”, then you are right. This is one of the actions that goes by the wayside when you're focusing on scarcity. You're simply afraid that you won't have enough so you ignore the importance of taking care of yourself. So what is the big mistake?
The big mistake is that you are focusing your thoughts on outward circumstances, like the economy, to determine your mindset. If the economy is down you are down. Stephen Covey calls this the “reactive” mindset. You believe that you are acted upon, rather than being “proactive” and there is a constriction of energy to your business.
When you are proactive, you don't focus on what the economy or the market is doing, you are coming from an internal state of prosperity consciousness. You don't look to outer conditions to determine your state of mind, you determine your own state of mind by your thoughts, emotions and actions. In essence you create the mindset of being the deliberate creator of your life.
The solution:
If the mindset is the problem, then how do you switch to a more positive mindset?
1. Commit to building a “prosperity” mindset
A “prosperity” mindset is not something you are born with, it's not in your genes; it’s something that you develop through practice. Think of it as a muscle that you exercise. The more you exercise it, the stronger that muscle becomes.
It's the same with “prosperity” mindset. Successful people have one thing in common – they believe in their own success and their ability to attract money into their life. They look for opportunities and find them... everywhere. Why? Because they had an internal prosperity consciousness and they focused on that state of looking at external conditions.
2. Adopt the beliefs of success
It's easy to adopt a successful mindset - it's just a shift in focus from scarcity to prosperity. The way you make that shift is to have a set of beliefs that are congruent and prosperous thinking. For example, Walt Disney once said, “All of our dreams come true if we have the courage to pursue them.” Here are the beliefs of successful people:
· Change is to be embraced because it represents more opportunity for growth and expansion.
· Determine what you want, and assume you'll get it. Don't worry about the ‘how’.
· There is an answer and solution to every challenge.
· Discomfort is part of charting the unknown.
· Obstacles will not stop them from attaining what they want.
· Money needs to flow in order to grow.
You'll notice that if you practice the beliefs above, you will experience positive emotions that expand the flow of energy to your business.
3. Be clear on what you want
How can the universe give you what you want unless you are clear about what you want? A challenge for you here is to break the “want” barrier. Accept the fact that it is not only appropriate and proper, but critical, for you to want anything, of any kind, to any degree.
The main thing is to be clear about what you want for your business. I hear too many people saying, “I want to be successful” without even knowing what success means to them. I suggest visualizing your ideal professional life in 12 months from today.
See yourself doing work you love and noticing approximately how many hours a week you're working. Ask yourself what kind of people you want to be interacting with. Who are your ideal clients? Are they motivated, decisive and respectful of you and your service to them? What is your income in 12 months from today? How much are you making per year or per month?
4. Clear away any opposing beliefs
When you think about your ideal professional life, what beliefs do have that are opposing your vision? Here are some beliefs that I hear on a continual basis when people are honest with me about discussing their blocks to success:
“I like doing my work, I'm just not good at marketing.” (Remember, it's only a belief) “I'm really not smart enough or energetic enough to achieve what I want.” (Remember, it's only a belief)
“The real estate market is so tough right now that I can't possibly make the income I was hoping for.” (Remember, it's only a belief)
5. Take inspired action not frantic action
What kind of action are you taking? Are you taking action because you're afraid? If you are, your action may be frantic action rather than inspired action.
What is inspired action? Inspired action comes from your intuition and listening to your gut instincts. You follow your heart, you follow your hunches; you don't wait for someone to hand you a formula because there is none.
You will know if you’re taking inspired action by the way you feel by the results you are getting. You’ll be feeling relaxed and confident and the results that you will be getting will be one or more of the following:
· Increased clientele
· Increased income
· Increased passion for your work
As a review, remember to avoid THE BIG MISTAKE by being conscious of what you focus on.
Don’t let the outer conditions determine your mindset. Keep a mindset of prosperity and practice the beliefs of successful people. Keep remembering to expand the flow of energy to your business, whatever the market is doing.
When times seem tough, it is especially important to stay away from a scarcity mindset. Instead, go within and look for the opportunities for new ways to market yourself from a prosperity mindset.
Dr. Maya Bailey, author of, Law of Attraction for Real Estate Professionals, integrates 20 years of experience as a psychologist and 12 years as a business coach with her expertise in the Law of Attraction. Her powerful work creates a success formula for real estate professionals ready to double and triple their incomes. Get Dr. Maya's free report, 7 Simple Strategies For More Clients in 90 Days, by visiting http://www.90daystomoreclients.com/
A means to be successful
Last year several top Broker/Owners discovered the incredible value of the Certified Distressed Property Expert designation. Subsequently, leaders throughout the network - from the International level to regions to offices - have recognized the importance of this particular program.In the few months since RE/MAX International began encouraging and endorsing the CDPE designation, more than 4,000 Affiliates have attained it. The April 7-8 session presented by RE/MAX University on RSN drew over 1,300 registrants, making it the top single session in the 14-year history of the satellite network.The course airs again June 9-10, with a registration deadline of May 26. And the Distressed Property Institute, in conjunction with RE/MAX regional offices, will present live classes in over a dozen cities in the next 90 days. The goal is to soon have at least 10,000 RE/MAX Affiliates complete this career-changing training. The CDPE designees will be able to generate income for themselves while creating value for sellers who are upside down on their mortgages, buyers who are taking advantage of favorable conditions, and lenders who are trying to minimize losses on loans gone bad.It's vital that you, as a Broker/Owner or Manager, have the training as well. When your people come to you with a question about distressed properties, or seek ideas on how they can maximize their new skills and knowledge, you simply must be able to help them. If you can't, how can they look to you as a leader? Completing the CDPE class, even if you don't intend to work directly with short sales, will prepare you to provide the assistance your people need.
An expanding skill set
It's important to note that the CDPE program in no way encourages agents to abandon their existing skill sets; it merely expands their reach into the most prominent sector of the current market. Indeed, some of the CDPE material is even applicable for the traditional list-market-sell structure. But that sales model isn't producing its usual level of activity, having been supplanted for the time being by properties in pre-foreclosure and foreclosure. Short sales are a logical step in the process between a traditional listing and a foreclosure, and too many agents are overlooking that fact.If timing issues could be mitigated, wouldn't short-sale listings be quite appealing to house-hunters? Consider who's out there. First-time buyers are in a strong position right now. Interest rates are at historic lows, prices have declined to 2000-01 levels in some markets, financing is available when the proper affordability conditions are in place, and the up-to-$8,000 tax credit provides a significant financial incentive to act before Dec. 1. First-timers could account for as many as half of the home sales in the U.S. this year. Investors, trying to take advantage of the same factors aside from the tax credit, will also play a large role.With so many homes in some form of distress, agents who close their eyes to short sales and bank-owned properties can't adequately serve these buyers. Ignore these options and you're left with "non-distressed" traditional listings, many of which are overpriced for today's market.Agents versed in distressed properties can serve buyers or sellers on both sides of the spectrum. If the traditional listing is the best fit, fine. But if the short-sale listing three doors down is a better bargain, the agent can just as skillfully pursue that option.This skill isn't important only in Florida, California and the other states hit hardest by foreclosures. In virtually any market, once you start looking for distressed properties, you'll see them all over. And once you've changed your mindset toward them, you'll recognize the opportunity they represent.
© 2009 RE/MAX International. Permission is granted to RE/MAX Affiliates to reproduce or forward this newsletter in its entirety, provided this notice is retained. All other rights reserved.
An expanding skill set
It's important to note that the CDPE program in no way encourages agents to abandon their existing skill sets; it merely expands their reach into the most prominent sector of the current market. Indeed, some of the CDPE material is even applicable for the traditional list-market-sell structure. But that sales model isn't producing its usual level of activity, having been supplanted for the time being by properties in pre-foreclosure and foreclosure. Short sales are a logical step in the process between a traditional listing and a foreclosure, and too many agents are overlooking that fact.If timing issues could be mitigated, wouldn't short-sale listings be quite appealing to house-hunters? Consider who's out there. First-time buyers are in a strong position right now. Interest rates are at historic lows, prices have declined to 2000-01 levels in some markets, financing is available when the proper affordability conditions are in place, and the up-to-$8,000 tax credit provides a significant financial incentive to act before Dec. 1. First-timers could account for as many as half of the home sales in the U.S. this year. Investors, trying to take advantage of the same factors aside from the tax credit, will also play a large role.With so many homes in some form of distress, agents who close their eyes to short sales and bank-owned properties can't adequately serve these buyers. Ignore these options and you're left with "non-distressed" traditional listings, many of which are overpriced for today's market.Agents versed in distressed properties can serve buyers or sellers on both sides of the spectrum. If the traditional listing is the best fit, fine. But if the short-sale listing three doors down is a better bargain, the agent can just as skillfully pursue that option.This skill isn't important only in Florida, California and the other states hit hardest by foreclosures. In virtually any market, once you start looking for distressed properties, you'll see them all over. And once you've changed your mindset toward them, you'll recognize the opportunity they represent.
© 2009 RE/MAX International. Permission is granted to RE/MAX Affiliates to reproduce or forward this newsletter in its entirety, provided this notice is retained. All other rights reserved.
The Good News
The March 2009, REAL Trends Housing Market Report showed surprising strength over the prior two months activity. Nationally housing sales were down only 5.8 percent from March 2008 and prices of homes sold were down an average of 14.7 percent from a year ago. This compares with the February 2009 report that showed sales down 18.1 percent from February 2008 while the average price of closed sales was down over 22 percent in that same comparison. It is important to note that the REAL Trends Housing Market Report differs from most other housing studies in that it compares a month of this year versus the same month a year ago. It is not seasonally adjusted but uses actual data. Second, our sample is made up of national and regional brokerage data that are actual sales numbers. Lastly, it is not a small sample but rather represents over 35 percent of all brokerage assisted housing sales from every MSA in the Country. Every region showed improvement in housing sales with the western region showing the best improvement in transaction count with sales up 18.7 percent over a year ago, while the south showed the best price results with the average price being down only 7.9 percent versus a year ago. The results of the REAL Trends March Housing Market can be found later in this edition of REAL Trends and online at www.realtrends.com. We do expect continued recovery through the next few months as low interest rates, high levels of affordability and soft housing prices continue to attract first-time purchasers and investors into the market. Offsetting these positive factors will be rising unemployment and the relative high cost of non-conventional loans that will serve to keep a brake on the upper half of the housing market.
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