Real Education By Thomas – A Blog About It

Buy Now and Save

The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).

Please check out the NAHB website for all the Q&A on this topic.

We should all be writing up more deals between now and the end of April for our clients to take advantage of this offer.

Have a great week!

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More Q & A on new Fingerprinting rules

Direct from the DOL here is verbatim the latest on the new fingerprinting process for license renewals:

QUESTION:  My renewal date is March 2011.  May I request a fingerprint card from the Real Estate Program in July 2010 so I can get my required fingerprinting completed early?
 
ANSWER:     No, fingerprinting for the renewal of an active license will be required on a predetermined schedule and will only be accepted on cards furnished by the Real Estate Program at the required renewal time.

QUESTION:  How do I renew online if I need to provide a completed fingerprint card?
 
ANSWER:     The online Solar system will not allow you to renew if you are required to provide a completed fingerprint card.  For that renewal you will have to either mail or hand deliver your completed renewal form which will include continuing education affidavit, fingerprint card, and fee.
 
QUESTION:  How much will a license renewal with fingerprints cost?
 
ANSWER:     The broker renewal notice will indicate a renewal of $146.25 if paid on time plus a fingerprint card check fee of $35.25 for a total of $181.50. The managing broker renewal notice will indicate a renewal of $210.00 if paid on time plus a fingerprint card check fee of $35.25 for a total of $245.25. Remember, the law enforcement agency doing the fingerprints will have a separate fee.

I have had a lot of questions on this, so I thought I would pass it on. Hope it helps.

Have a great weekend.

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Good Will in a Down Market

From my friend Steve Rennie at Hammerhouse, here is some great advice:

Good Will In a Down Market
Over the last year, and for decades past, business professionals have experienced the benefits of providing good will for prospective clients in a down market. Doing this can impact your personal business as the market rebounds. For example, when the phone rings today, you ask your qualifying questions….as you listen to the responses, you assess whether it is a real opportunity or not…as you come to the conclusion that there is no way to put a deal together based on this prospects situation, what do you do? Be honest with your future clients, let the person know what you heard, what the market will allow today, and then give some guidance on what they can do to be in a better position in the future. The most successful people in sales consult with their clients more than those that treat each deal as a transaction…by giving them advice on what they can do on their end to better their situation; you can position yourself to be their solution in the future. Good will in a down market can go a long way. Here’s what you do:
LISTEN carefully to the details of the situation and be understanding while you try to relate. Be prepared to share a story of another client’s similar situation thus positioning you as a consultative resource versus that of a transactional player interested in a commission today.
STAY EDUCATED and know how to position clients for the current marketplace. Teach them how their situation is impacted by our current economic landscape. Remember to invest time in them today knowing you want to do business with them in the future and creating a customer for life.
Set an expectation with your future client to FOLLOW UP in a timeframe that would be appropriate to check up on their progress, and then put it in your calendar so that you FOLLOW THROUGH.
ASK FOR REFERRALS….plant the seed that you are a resource for anyone wanting to understand the current market and how working with you can create value for them today.
The better you can articulate your value proposition and better differentiate yourself from your competition, the more creditability you will have. This will provide an opportunity for you to have greater results long term.  
Trap doors:
Don’t make the mistake of leaving a bad impression because you knew there was not a short term opportunity. Don’t treat this conversation as a transaction but see it as an opportunity to build a relationship through a process.
Building business with goodwill in a down market involves extra time and effort, but only because educating people is different than trying to only structure a deal for today. Lastly, don’t forget to add these contacts as future leads to your ACT/CRM or other contact management system so that you can follow up and follow though beyond your initial conversation. Remember the real value is in the developed relationship not the transaction of a deal. As you build more clients for life, you create a more sustainable business for your future. Take the time. Invest in your future!
Let me know how this topic IMPACTs your business and feel free to share what you are seeing in your market. Hammerhouse will continue to strive to create value for you through what we are seeing and learning over time. If you want to find out more about our opinion on where the market is today or where we see it going, give us a call.
 
Steve Rennie

Hammerhouse LLC
Strategic Growth Partners

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New Rules on Fingerprinting

Direct from the DOL, here are some questions and answers on the new fingerprinting rules:

QUESTION & ANSWER
FOR THE NEW 18.85 RCW
February 10, 2010
 
QUESTION:  I hear the new Real Estate Licensing Law requires all existing licensees to be fingerprinted.  Is this correct?
ANSWER:     Yes
 
QUESTION:  I am an active real estate licensee.  Do I have to be fingerprinted by July 1, 2010?
ANSWER:     No 

QUESTION:  By what date do I have to be fingerprinted?  
ANSWER:     All active licensees are required to submit their fingerprints to the Real Estate Program at one renewal period during the next six years.  Licensees will be selected for fingerprinting based on a predetermined formula.  If it is your year to be fingerprinted, you will receive the fingerprint card and instructions with your real estate license renewal notice.
 
QUESTION:  How and where do I get my fingerprints taken?
ANSWER:     You must use the fingerprint card sent to you by the Department of Licensing.  You may take it to any law enforcement agency that offers fingerprint services.  There will be instructions included with your renewal notice.  Each law enforcement agency sets their own fee for taking the fingerprints.  You will be required to pay them at the time of the fingerprinting.
 
NEXT WEEK: More on the renewal process and costs involved when fingerprinting is required
 
 
==============================================================================================================================
OTHER LINKS…
DOL Real Estate Home page:
www.dol.wa.gov/business/realestate/

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First renewal for a new agent today

After teaching a few of the new Transition Classes and discussing all the new requirements, I want to clear up one or two things. Since I have seen conflicting information, I checked with the DOL and cleared up a few questions.

Question 1:

I just became a new salesperson today, what will I need to renew my license upon my first renewal?

You will need 30 hours of Practices, and 30 hours of electives, including a 3 hour Core and the 3 hour transition class. For those getting licensed for the first time after July 1, 2010, the educational bar goes up substantially. After July 1, a new licensee (minimum being a broker), will need 60 hours of fundamentals and 30 hours of practices to take the exam, and then 90 more hours to renew the first time: 30 hours of Advanced Practices, 30 hours of RE law, and 30 hours of electives.

Question 2:

After July 1, 2010, will a Designated Broker need to have ownership interest in a firm to be endorsed and registered as the Designated Broker for that firm?

No, but he/she will need to have controlling interest in the firm. If the firm is a corporation, being an officer would be enough to have controlling interest, regardless of ownership.

If you have any questions, please send me an email at tom@thomasjbeno.com and I will be glad to get back to you.

Have a great week!

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New Real Estate Credits for Social Media Workshop

Our Hub and Spokes Solution ™ has just been approved for 4 hours of continuing education credits for Washington state real estate professionals. Please see more about the class by going to Class Schedule or directly by going to this link: http://bit.ly/6iHrr6 . This workshop can help you start on a productive path of sourcing new clients through blogging and social media. Presenters at this workshop include seasoned real estate professionals who have found great success implementing this specific blogging strategy. The workshop is designed to demystify social media and presents a system using your blog as the hub to position and grow your business. It is low cost and effective and within your reach if you are serious about growing your practice. We look forward to seeing you at the workshop.

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Reinvent Your Credit in 2010

Case in point: I have a couple that have been clients for years, here is their situation. He has a high score and medium income, and she has a low score and high income. From a mortgage underwriting standpoint, we need her income to qualify because of their debt load, but her score is too low to qualify. Much of the negative stuff on her credit report is ancient history, some of it is of material error, some from a prior relationship that was supposedly legally separated years ago. Five months of going through credit restoration and now her score has gone up over 100 points! Now they become lendable because her score is now high enough and we can count her income.

This is a fairly typical story of people who can restore their credit, and take action to do so. I previously wrote a series of 4 posts on this topic, and I am more excited than ever about helping people everywhere restore their credit. Please contact me at tom@thomasjbeno.com if you have any questions, and please take a look at my prior posts.

Have a great week.

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Designated Broker Delegating Duties

An important update for designated brokers and managing brokers. Here is exactly what the DOL INT realestate put out regarding the NEW 18.85 RCW:

“Last week we told you that all duties delegated by a designated broker to managing brokers of their firms must be in writing as of July 1, 2010.  Now I want to delegate some duties in writing as the designated broker.
 
QUESTION: Are there standard delegation forms we have to use?  Will the Department of Licensing provide the firms with delegation forms or provide the language a designated broker needs to use?
ANSWER:  There is no standard format or language required for a written delegation of duties.  The written delegation is an agreement between you, the designated broker, and your delegated managing brokers.  The written delegations should use language agreed to by the participants and/or their legal counsel. 
 

QUESTION:  What do I do with the copies of the written delegations after they are completed and signed by all parties?
 ANSWER:  The designated broker is required to maintain a record of the firm’s managing brokers and maintain copies of the written delegations for review by Department of Licensing representatives upon request.”

For more info go to www.dol.wa.gov/business/realestate/.

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Now is the time to buy or sell real estate

 Why have mortgage interest rates stayed so low this year?

Contrary to common belief, mortgage rates are not controlled by Banks, the Federal Reserve, the Government or even the President. They depend completely on market demand of long term mortgage bonds called “Mortgage Backed Securities” (MBS). When there is demand for Mortgage Backed Securities, this means the market is buying this instrument, thus causing mortgage rates to go down. When the market decides to sell these instruments (less demand), this causes mortgage rates to increase (go higher).

As part of the Federal Stimulus Package, the Federal Reserve pledged to purchase $1.25 Trillion (yes, Trillion) of these Mortgage Backed Securities (MBS), thus creating HUGE demand – causing mortgage rates to stay low for this extended period of time. Basically, through this “asset buying program” the Federal Reserve has artificially kept mortgage rates low to stimulate the housing markets.

The Fed announced today that it is about 85% through the program ($1.096 Trillion), planning to have the program completed by the end of the first quarter (March 2010).

What is going to happen to mortgage rates after the asset buying program is complete (March 2010)?

Undoubtedly, it is going to be a bumpy ride as we go through the transition from artificial Fed money to natural market money, purchasing Mortgage Backed Securities (MBS). The vast majority say that mortgage rates will likely rise since the Fed was such a significant amount of the buying. The other school of thought says there is a tremendous amount of cash sitting on the sidelines waiting to get back into the market. Which scenario plays out will be the interesting part. Again, one thing we can count on is definite volatility.

So what does this mean for me… and my clients today?

If at all possible, it would be a prudent decision not to wait for this transition period. Use information like this to get your “fence sitting” buyers to buy as soon as possible. With 30 Year Fixed mortgage rates at or under 4.875%, it is absolutely unlikely that rates to go much lower. Additionally, the $8,000 First Time Buyer Credit as well as the $6,500 Move-up Buyer Tax Credit expires April 30, 2010 (signed contract date). Buying a house during the first quarter of 2010 will be a great time to buy.

I’m here to help any way I can.

Happy New Year!

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Real Estate in 2010, my prediction

In all my years in the mortgage business, I have never seen rates so low. So what will happen in 2010? My prediction is rates will stay low, around 5.0% or less (30 year fixed), and then mid-year start to climb as the economy continues to get healthier.

I predict that real estate sales will continue to increase and that by year end, we will be a lot closer to a normal market with values more stable as the abandoned inventory lessens.

I have never seen it so difficult to get a mortgage closed; but on the other hand never seen a better time to buy real estate. Hopefully the low rates and great prices will continue to attract first-time buyers, and with the new tax incentive, move-up buyers will become far more active. This spells good news for those of us left standing in the industry. I predict we will look back at this time as an extraordinary turning point.

I’m here to help in any way I can, thanks for reading, and Merry Christmas!

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