Take the Distress Out of Distressed Properties

By Wendy Cole, Senior Editor, REALTOR® Magazine

Foreclosure filings have decreased slightly for the past three  months in a row, according to RealtyTrac. While that’s certainly welcome news from a short-term perspective,  the larger picture concerning distressed properties remains grim. October 2009 marked the 45th straight month of year-over-year increases in foreclosure activity. In the third quarter of this year alone, there were still more foreclosures than in all of 2006.

At the RISMedia Power Broker Perspective Panel on Distressed Properties, RealtyTrac’s Rick Sharga noted that the year will end with about 3.3 million households having gone into foreclosure. And because of  rising “shadow inventory” another 4 million properties are expected to hit foreclosure status in 2010.

The Obama Administration’s recent push to accelerate the pace of loan modifications to keep struggling borrowers in their homes also has a dark side.  Some 50-60% of those whose loans are modified are expected to redefault eventually nonetheless.

This massive inventory of distressed properties continues to put significant downward pressure on home prices nationally, and makes it tempting for real estate practitioners to slip into a state of powerlessness and discouragement. That’s a huge mistake. Read more

Do Sales Plaques Matter?

Recently I was chatting with a very successful real estate pro who took great pride in the many plaques and other forms of recognition that his brokerage gave him month after month to acknowledge his enviable sales record. This Florida-based gentleman, with more than 40 years of experience under his belt, is still hard at work every day scoping for buyers and going after new listings.

His business has slowed some in the past few years as it has for many. But clearly the trophies of his excellent work were, and still are, a major source of pride, as well as a centerprice of his marketing effforts. But the encounter made me wonder about the real value of sales contests these days. Do your brokerages encourage competition among sales associates with plaques and other highly visible rewards for individual success?

For a future article in REALTOR® Magazine, we want to hear from broker-owners, managers, and sales associates how important you think it is to publically recognize top performers? Does such recognition motivate others to work harder or does it result in unproductive jealousy or griping? Please share your thoughts and experiences concerning sales contests. Feel free to e-mail me directly if you prefer at wcole@realtors.org.

The Biosphere Next Door

By Wendy Cole, Senior Editor, REALTOR® Magazine

This weekend REALTOR® magazine Editor in Chief Stacey Moncrieff and I entered Biosphere 2, the 7.2 million cubic ft., sealed glass structure where eight Biospherians famously spent two years growing their own food, recycling their own water and waste, and, according to media accounts, getting on each other’s nerves. The experiment, which started in 1991, was intended to increase understanding of the feasibility of space colonization, by recreating Earth’s natural environments under a series of giant lattice-windowed domes.

While the United States isn’t quite ready to develop a subdivision on Mars, our 90-minute tour of the enclosed rainforest, desert, ocean, and residences revealed how prescient the Biospherians and their funders were. Biosphere 2 (Earth itself was considered the original Biosphere) was a shining example of the potential for sustainable, eco-friendly living back in the day when “green” was nothing more than a color. The facility seemed far more expansive than what I remember from TV and is well worth a visit if you’re in the Tucson area. Read more

Why You Need a Tech Policy

By Wendy Cole, Senior Editor, REALTOR® Magazine

Because most real estate salespeople are independent contractors, brokerage managers commonly assume that they shouldn’t dictate or even recommend to agents what sort of computers or other tech tools to use, let alone what versions of software. That could be a gigantic mistake. During a technology management course this week, sponsored by the Illinois Association of REALTORS® and the Midwest CRB Chapter, instructor Jonathan Nicholas, a former broker-owner and current consultant to brokerages, discussed the technical incompatibility and general chaos that can ensue when offices fail to come up with a standardized approach concerning the equipment and software their agents use. Read more

To Stage or Not to Stage?

By Wendy Cole, Senior Editor, REALTOR Magazine®

Home staging seems to be a more important selling tool than ever. Barb Schwartz, author of the new book Staging to Sell: The Secret to Selling Homes in a Down Market, notes that that even in today’s slower housing market, 95% of staged homes sell (on average) in 35 days or less. On the other hand, homes that are not staged take 172 days or more to sell, if they sell at all.

Just wondering if these figures correspond with what you all are finding out there? How critical is staging a property in your market?

Are You a Broker-Owner Who’s Trimmed Office Space?

By Wendy Cole, Senior Editor, REALTOR® Magazine

Broker-Owners: Have you recently reduced your office space? For an upcoming article, REALTOR Magazine wants to speak to brokers who’ve cut back on excess work space to save money and improve efficiency. We also want to hear from sales associates for their reactions to brokers who’ve cut their space.

Please email me at wcole@realtors.org or call me at 312-329-8484 to discuss details of how and why you (or your broker) decided to trim office space and the pros and cons (if any) of taking that step. Many thanks.

Lender Logic Meltdown

By Wendy Cole, Senior Editor,  REALTOR® Magazine

Thought I would share this mind-boggling post from one of my REALTOR® friends on Facebook. Jennifer Bunker is the savvy broker-owner at Coldwater Creek Properties, an environmentally-conscious brokerage in Ogden, Utah: 

“Today Wells Fargo made a buyer prove that she has a fiancee before they would fund her loan (WTH?). So, she took a picture of her hand w/ the ring on it and emailed it as proof and … they took it! Seriously, what are bank people ingesting these days? Can it get any more bazaar?”

If this really happened, it shows that anxiety has overtaken reasonableness at a major lending institution. Since when is having a fiance a factor in qualifying for a mortgage?  And how could a photo be considered proof of anything? Anyone else come up against lending tales that defy logic, even in these cautious times?

Bridging the Divide on Health Care

By Wendy Cole, Senior Editor, REALTOR® Magazine

Health care reform is on the way. And with 28% of REALTORS® currently uninsured, the time is ripe for a major fix. President Obama has put insurance reform at the top of his legislative agenda, and heated debates in Congress are sure to follow. But what will reform look like and who will pay for it? Most Americans — and REALTORS® — agree that the current system demands an overhaul. Real estate practitioners. however, are much more divided about what the federal government’s role should be in developing a new system that makes insurance available and affordable for all.

A recent poll sponsored by NAR has found that 53% of REALTORS® are concerned that Congress won’t do enough to reform the health care system, while 47% shared the opposite concern: that Congress may go too far. The pros and cons of government-mandated health insurance were the subject of rich debate today during NAR’s Midyear Legislative Meetings.

What’s your view? How should the government address the insurance gap?

A Night of HOPE

By Wendy Cole, Senior Editor, REALTOR® Magazine

I’ve just returned from the HOPE Awards gala at the spectacular National Building Museum, and boy, do I feel well, hopeful. Surrounded by the golden neo-classical pillars of one of Washington’s most impressive examples of public architecture, five pillars of the affordable housing movement received touching accolades and $10,000 (plus a $1500 Lowe’s gift card) for the brilliant work that they have done to help disenfranchised groups including lower-income minorities and the disabled achieve the dream of homeownership. The industry partnership behind the biannual awards has been going strong since 2001.

Just a few of the achievements from this year’s group of winners: Read more