Cincinnati Real Estate & Mortgage Market Update

Treasury Announces Short-Sale Support

2009-05-20T14:01:00.002-04:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

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."

TV Ads Air on Hits 'NCIS' and 'CSI' in May

2009-05-04T07:11:00.000-04:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

RE/MAX TV ads are everywhere. This month, consumers will see the commercials across cable networks.
Here's the downloadable May advertising schedule that lets you, and your clients, see just how far-reaching the national television marketing is.
RE/MAX commercials will run on more than 20 cable TV channels during hit shows such as "NCIS," "CSI," "Cold Case," as well as during major news broadcasts and original programming.
You can see the three 2009 ads on RE/MAX Mainstreet. They're also available through the RE/MAX International channel on YouTube. The campaign includes the spots Snow Place, Kick and iLove.

Here is a quick guide to how you can apply the tax credit and how it compares to the $7500.00 credit in 2008.

2009-02-27T21:04:00.000-05:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

RE/MAX International's Social Media Sites

2009-02-24T08:10:00.002-05:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

RE/MAX agents have long been on the forefront of social networking.

And now, RE/MAX International is right there with you, connecting with the network's best agents from around the world on four popular social media sites: Twitter, Facebook, LinkedIn, YouTube.

If you're familiar with these social networking sites, you know the many benefits these outlets provide you and your business, such as connecting with clients and colleagues, marketing to prospects, and showcasing your professional skills.

While social networking shouldn't be your only means of marketing, it certainly is a great way to leave a bigger online footprint.

Follow the actionBe among the first to hear about announcements from RE/MAX International by following us on Twitter. Chat with clients and colleagues through the official RE/MAX page on Facebook. Connect with other industry professionals on LinkedIn, and watch the latest videos posted on YouTube.

If you haven't used Twitter, Facebook, LinkedIn or YouTube, follow these easy-to-use instructions to set up your account.
For those of you who are already involved, visit us on these sites - we can't wait to see you there.
Twitter is the hottest, fastest-moving application on the social networking scene. It's a virtual fire hose of communication with bite-sized text updates of 140 characters or less. It will allow you to get news and information on the fly. Build an account for free and start tracking some of your important news sources, including RE/MAX International. All you have to do is elect to "follow" us and you'll get our news first.

The profile is located at: www.twitter.com/remaxintl
Facebook is a free social networking Web site where you can connect and interact with anyone with the click of your mouse. Set up a new account using your e-mail and an original password. Be sure to check your privacy settings and complete your profile.

Then, visit our RE/MAX International Facebook profile once you've logged in, and become a fan of our page. The page is located at: www.facebook.com/pages/Denver-CO/REMAX-International-Inc/46070299417

LinkedIn is a free, professional social networking application that lets you build an integral network of colleagues, peers and friends. Once you've created an account, you can join the official RE/MAX International Group (search Groups: RE/MAX International) to get news and information, and to connect with your RE/MAX colleagues around the world.

YouTube is the Internet's hub for online videos submitted by its users. With about 14 billion videos viewed on YouTube each month, chances are you've already visited the site. But did you know that RE/MAX International has its own page on YouTube with a collection of commercials, TV ads and other videos? Check it out. The page is located at: www.youtube.com/user/REMAXIntl

6 Million Leads! LeadStreet Hits Milestone After Busy Six Months

2009-02-17T07:45:00.003-05:00

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Your source for Homes and Mortgages!

Just six months ago, the LeadStreet lead count topped 5 million. Since that milestone, 1 million more leads have reached RE/MAX Associates across the United States.

With nearly 6,000 leads distributed on a daily basis via consumer activity on remax.com, there's no doubt thatremax.com - logging more than 2 million unique visitors every month - still is the Web site of choice for consumers seeking comprehensive real estate information.

Consumers can search all the listings in thousands of cities and towns, and their inquiries directly benefit RE/MAX Associates in those communities.

"LeadStreet is one of the keys to our Associates' success in translating online home seekers into tangible leads," says Kristi Graning, Senior Vice President of IT and eBusiness at RE/MAX International. "Six million leads is a remarkable achievement and one that distinguishes us from our competition. And because we're able to provide this service without the referral fee that other networks charge, it's one more reason experienced real estate professionals join RE/MAX."

Pam Hutson, a Sales Associate with RE/MAX 2000 in Melbourne, Fla., knows firsthand the value of LeadStreet. She accepted a lead that turned into a closed transaction side on a $1 million short sale in August 2008.

"It was a great closing, and I ended up listing the buyer's previous home as well," says the 100 Percent Club member. "A big yes to LeadStreet."

At RE/MAX Hometown in the small community of Athol, Mass., LeadStreet keeps Sales Associates on their toes.

"Last year we had five reported sales directly from LeadStreet," says Co-Broker/Owner Sara Currier. "I started 2008 off right with a lead in January that was forwarded before lunchtime. Because of my quick follow-up, the buyers were impressed and scheduled an appointment for the next Saturday. I met the young couple, we looked at four properties, and they wrote a full-price offer on one they loved.

"They've already sent me another buyer referral, and this all came from a no-charge lead through LeadStreet."

Real Estate Outlook: Encouraging Signs

2009-02-16T07:48:00.002-05:00

RE/MAX Elite and the Clermont financial group.

Your source for Homes and Mortgages!

Could the tide be turning for real estate?

It's probably premature to make that call, but you can't ignore the encouraging signs - especially when they come in multiples.

First, we saw a surprising 6.5 percent jump in home sales for December. Now we've just gotten the latest Pending Home Sales Index, and it's up 6.3 percent, thanks to double digit gains of 13 percent in the Midwest and the South.

The index is based on signed contracts for home sales that haven't gone to closing, but that are scheduled to settle in the coming two or three months.

The National Association of Realtors collects the data from Multiple Listing Services around the country, and most economists accept the index as a reliable gauge of where we're headed in housing activity.

Lawrence Yun, chief economist for the National Association of Realtors, attributed the upward movement to "buyers responding to lower home prices and interest rates" that have improved the affordability equation to its most favorable level in 39 years.

Sales in the coming months might also be powered by something no index can measure: Congress is likely to improve last year's $7,500 home buyer tax credit by turning it into a non-repayable incentive for new sales this year - all as part of the stimulus package on Capitol Hill.

Though it's impossible to predict how many more home sales a true credit might stimulate - one that doesn't have to be paid back to the government like the 2008 version - industry estimates range anywhere from several hundred thousand upward, provided the expiration date runs through this coming December.

On other economic fronts last week, reports of tens of thousands of industry layoffs definitely won't help housing, but new numbers on inventories of unsold homes just might be a plus. Total homes for sale on the market nationwide dropped nearly 18 percent last month to the lowest level since May of 2007.

Mortgage rates inched up slightly last week, according to the Mortgage Bankers Association, with thirty year fixed rate loans averaging 5.3 percent compared to 5.2 percent the week before. That's up a notch, but it's still close to 40-year historic lows.

As we've said before on this program: Keep your eyes open for the little statistical improvements in the market that often get ignored by the media: Once they start mounting up, month after month, you'll know we're in turnaround mode.

We're not there yet, but we're headed in a promising direction.

1,272 Homes Sold in Cincinnati, December 2008

2009-01-26T13:50:00.002-05:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

1,272 Homes Sold in December;

Surpasses November Sales

A total of 1,272 homes were sold locally last month, an increase of 8.35% over November’s

1,174 sales. That momentum bodes well for January anticipated closings. Most of January closings are

from sales contracted in December.

Last month’s contracted sales (pendings) are up 1.42% over the level of pending sales one year

earlier. The positive “December-to-November 2008” sales comparison contrasts with the previous year,

when December 2007 home sales trailed previous month sales by 15%.

“Showings in early 2009 are increasing,” said Paul Jacob, president of the Cincinnati Area Board

of Realtors. “More shows ultimately translate into more sales.”

That doesn’t mean the real estate market is about to do a complete turnaround, cautioned Jacob.

“We’re still going through the equation of supply and demand,” he added. “We have 10 months of

inventory to sell, whereas a balanced market between buyers and sellers is about 6 months. When the

supply numbers come closer to demand numbers, you will see a more stable real estate market.”

Jacobs noted that overall 2008 local home sales -- at 18,752 units -- were down 15.8% from 2007

and the average sale price slipped by 6.7%. But he also reported that 2008 marks the 10th consecutive

year that total dollar sales volume exceeded $3 billion ($3.04 billion in 2008).

The overhang of distressed property sales affected overall market activity in 2008. That includes

lender-owned homes and HUD foreclosures. “Take out distressed sales, and we had a pretty good

market last year,” said Jacob.

Jacob reiterated the Realtors “buyers market” message: There is an ample supply of homes for

sale from which to choose, home prices are attractive, and mortgage rates are low.

“Mortgage rates are on sale right now,” said Jacob. “Whoever thought of getting a home loan in

the 5% to 5.5%% range? It’s available now. That hasn’t happened since before 1963.

December 2008 home sales

The Cincinnati Area Board of Realtors notes the following 1981 comparison (when mortgage

rates went through the roof) to 2009 (bargain rates):

Mortgage Monthly Total Interest

Year Rate Payment Over 30 Yrs.

1981 16.9% $1,418 $410,317

2009 5.1% $ 543 $ 95,462

Savings >>> $ 875 $314,855

The National Association of Realtors has committed to spending $42 million in a 2009

advertising campaign, emphasizing that current conditions such as low interest rates and available

properties put many potential home buyers in a position of strength.

“Smart buyers know the ball is in their court,” said Jacob. “They will take advantage of their

edge in buying now when mortgage rates are at super low levels. They have been given a gift.”

Summary of Single Family and Condominium Sales

Multiple Listing Service of Greater Cincinnati

Cincinnati Area Board of REALTORS

December Monthly Home Sales

Closings Gross Volume Average Price

Dec. 2008 1,272 $180,000,509 $141,510

Dec. 2007 1,356 $232,303,829 $171,316

Variance -6.19% -22.52% -17.40%

Yearly Home Sales

Closings Gross Volume Average Price

Jan-Dec. 2008 18,752 $3,044,201,257 $162,340

Jan-Dec. 2007 22,265 $3,873,808,153 $173,986

Variance -15.78% -21.42% -6.69%

30-Year Fixed Rate Mortgage (local)

December 2007 (average) 6.18%

December 2008 (average) 5.43%

Most recent (Jan. 21, 2009) 5.41%

# # #

2009-01-04T15:11:00.001-05:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

Why use RE/MAX?

When you choose a RE/MAX Sales Associate to sell your home or help you purchase a new home, you'll experience a whole new level of service.

First, RE/MAX Associates are The Hometown Experts With a World of Experience®. Across the globe, they make their living in the same communities in which they live. They're the people next door, or just down the block.

Consummate professionals, RE/MAX Associates on average lead agents of competing brands in advanced real estate education and production. That's why they're known as "The Real Estate Leaders®" and why “No One in the World Sells More Real Estate than RE/MAX.”

Customer Satisfaction

The proof of quality service is in repeat customers and in customers who refer RE/MAX Associates to their friends. RE/MAX Sales Associates average 70 percent of their business from repeats and referrals, while other agents average about 30 percent from those sources.

Education

RE/MAX Associates lead agents of competing brands in professional designations, which denote specialized training and education. They dominate the Accredited Buyer Representative (ABR), Certified Relocation Professional (CRP), Certified Residential Specialist (CRS) and Senior Real Estate Specialists (SRES) ranks.

Miracle Home®

Why list your home with a RE/MAX Associate? Your home may be designated as a Miracle Home®. If it is, your RE/MAX Sales Associate will make a contribution on behalf of the listing and/or sale to the local hospital affiliated with the Children's Miracle Network. The funds raised in your community remain in the area to benefit local children.

For All You're Worth®

On average, RE/MAX associates sell more real estate than other agents. They are better qualified to set the right price for the homes they list, are better equipped to market those homes, and are likely to find a buyer in a shorter period of time. That experience and education also means they are better qualified to find the right home for any buyer.

Competitive Advantage

The real estate network that has the most competitive advantages to offer both home buyers and sellers will be an industry leader, and RE/MAX is that network. No one in the world sells more real estate than RE/MAX!

When you look for the highest quality real estate service, look to a RE/MAX Associate. Here's why RE/MAX Associates are "The Real Estate Leaders®".

Advertising

On average, a RE/MAX Associate spends about $10,000 each year on personal promotion and on individual and group advertising. Personal advertising plus national television advertising and Internet exposure generates the highest number of prospects in the industry.

Web Traffic

RE/MAX Real Estate' Ranks Among Top 5 Search Terms

"RE/MAX real estate" ranks No. 2 among real estate search terms on the Internet, according to a recent study by Hitwise, an online competitive intelligence service.

Hitwise, a subsidiary of Experian, has been collecting and analyzing data directly from Internet Service Providers (ISPs) since 1997.

The terms were ranked by volume of searches that successfully drove traffic to Web sites in the Hitwise Business and Finance - Real Estate category for the four weeks ending Jan. 26, based on U.S. Internet usage.

Hitwise Real Estate Search Term Rankings
1. realtor.com - 1.7 percent
2. remax - .81 percent
3. homes for sale - .43 percent
4. apartments - .40 percent
5. real estate - .39 percent
6. century 21 - .38 percent
7. apartments for rent - .36 percent
8. zillow - .35 percent
9. zillow.com - .33 percent
10. coldwell banker - .29 percent

In addition, Hitwise confirmed that remax.com was No. 4 among the most popular real estate sites in January.

Hitwise Most Visited Real Estate Web Site Rankings
1. realtor.com - 9.08 percent
2. HomeGain - 2.44 percent
3. Yahoo Real Estate - 2.25 percent
4. RE/MAX real estate - 2.21 percent
5. Rent.com - 2.19 percent
6. Zillow - 2.06 percent
7. Apartments.com - 2 percent
8. Move.com - 1.91 percent
9. ZipRealty - 1.86 percent
10. U.S. Department of Housing and Urban Development - 1.42 percent

Network Size

The revolutionary RE/MAX Concept of enabling real estate professionals to maximize their business potential has evolved into an organization of more than 100,000 Sales Associates in more than 7,000 offices.

The RE/MAX Balloon Logo

The red, white and blue RE/MAX Balloon, with its "Above the Crowd®" slogan, is one of the most recognizable business logos in the world. With more than 90 RE/MAX Hot Air Balloons around the globe, RE/MAX has the world's largest balloon fleet.

The Sign That Brings You Home®

The famous red-over-white-over-blue RE/MAX yard sign and your RE/MAX agent lead you to properties in areas in which you'll want to live and work. If you want to sell your property, the RE/MAX yard sign attracts buyers. Nobody sells more real estate than RE/MAX.

An Industry Leader

RE/MAX was the first real estate network to be involved in more than 1 million transaction sides in a single year. Each transaction or sale consists of two sides, the listing side and the selling side.

Global Expansion

With offices in more than 68 countries worldwide, RE/MAX is one of the fastest-growing real estate franchise networks on the planet.

Annual Study Ranks RE/MAX as No. 1 Real Estate Franchise

RE/MAX is the United State's No. 1 real estate franchise - and the nation's No. 44 franchise overall - according to Entrepreneurmagazine's 30th Annual Franchise 500 survey.

The survey appears on the magazine's Web site and in its January 2009 issue.

Subway bested McDonald's to capture the top position overall. Behind No. 2 McDonald's came Liberty Tax Service at No. 3.

Among real estate franchises, RE/MAX ranks No. 1 for the ninth time in the past nine years. The closest competitor - Keller Williams - came in at a distant No. 71.

RE/MAX ranks No. 10 overall in the Low-Cost Franchises category. It finished No. 1 last year.

Additionally, RE/MAX tops all real estate competitors at No. 38 on the Global Franchises list.

RE/MAX has a long, successful history in the survey. It ranked No. 10 overall a year ago, No. 11 in 2007, No. 8 in 2006, and No. 10 in 2005.

All companies in the rankings are judged by the same criteria, the most important being financial strength and stability, size and growth rate. Also considered: number of years in business, length of time franchising, start-up costs, litigation, percentage of terminations and financing options.

The factors are plugged into a Franchise 500 formula, with each eligible company receiving a cumulative score.

Visit the RE/MAX Times Online every week to read new feature articles, top-producer profiles, stories about valuable resources and more.

Comment on this story
E-mail your comments to kimschieldknecht@remax.net

Comments (2)

As a seasoned agent just recently switching over from Coldwell Banker, I find that while other companies are cutting costs, RE/MAX is growing stronger. The experience alone is invaluable to what an agent receives when walking in those front doors. I am proud to be a member of such an efficient franchise, which prides itself on experience, knowledge and technological growth. When the economy is said to be down, those that take risks will rise above their competitors. What wonderful news; RE/MAX constantly reaffirms my decision to join the office that would be best for me, my family and my business.
- Nicki Thompson, RE/MAX Alliance, Arvada, Colo.

It's great to be working for a winner when others are closing doors and cutting back on advertising.
- Lyn Sims, RE/MAX Suburban, Schaumburg, Ill.

The Hometown Experts with a World of Experience®

Being locally owned and operated, RE/MAX offices are staffed with professionals who live in the area they work in. Thus, committed to their local community, they have a deep personal interest in the customers they serve.

Home of the Best Agents®

In a business environment of mergers and acquisitions, RE/MAX is the only major real estate network still owned and directed by its founders. The excellence of RE/MAX Broker/Owners and Sales Associates has led to an ever-increasing number of accolades from the business community at large. RE/MAX is the nation's No. 1 real estate franchise - and the No. 10 franchise overall - according to Entrepreneur Magazine's 29th Annual Franchise 500 Survey for 2008. RE/MAX ranks No. 1 overall in the Low-Cost Franchises category. Additionally, RE/MAX tops all real estate competitors at No. 7 on the Global Franchises list and No. 10 among Fastest Growing Franchises.

More Than 35 Years "Above the Crowd®"

IRS Eases Up on Homeowners

2008-12-18T13:51:00.001-05:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

IRS officials say they are speeding up efforts to provide relief for homeowners in financial distress.

The Internal Revenue Service has developed an "expedited process" to make it easier for homeowners to refinance their mortgages or sell their homes without having a federal tax lien delay or even block the process, officials said Tuesday.

IRS Commissioner Doug Shulman said he isn't in a position to predict how many families will benefit. He did say there are more than one million federal tax liens outstanding tied to real estate and personal property. The IRS issues more than 600,000 federal tax lien notices a year.

When the IRS files a lien on someone's property, it's in effect making a formal claim to that property as security or payment for a tax debt. The lien also tells other creditors that the government has a claim on the property.

"These are difficult times for the U.S. economy," said Mr. Shulman. "Many homeowners are at risk of losing their homes. Many are hoping to refinance at lower rates, and in some cases, homeowners are forced to sell their homes and get the best deal they can in the current marketplace."

As a result, he says, IRS officials will respond more quickly to taxpayer requests to clear away liens and allow homeowners to proceed with refinancings or home sales. In the past, the process usually has taken about 30 days after a completed application is filed, a spokesman said. Officials didn't say how much more quickly they will respond, but they did say they are increasing staffing, as necessary, to speed up the processing time and the decision-making process.

"We don't want the IRS to be a barrier to people saving or selling their homes," Mr. Shulman said. "We want to raise awareness of these lien options and to speed our decision-making process so people can refinance their mortgages or sell their homes."

Linda Goold, tax counsel for the National Association of Realtors, calls the IRS move "very helpful." She says "anything that clears any impediment to a transaction is a boon. We view that as a great positive." The national median existing-home price for all types of housing fell to $183,300 in October, according to the Realtors group. That was down about 11% from a year earlier, when the median price was $206,700.

If you're trying to refinance or sell a home with a lien attached to it, you have several options. You or a representative, such as a lender, can ask the IRS to make its lien secondary to the claim of the lender that's refinancing or restructuring the loan, the IRS said. Another option: If you're selling your home for less than the amount of the mortgage lien on that home, you can ask the IRS to "discharge" its claim on it. That doesn't erase your tax debt. It just clears that home from the lien so that the home can be sold, or the debt refinanced.

Very few people seem to be aware that these options exist. IRS officials say they get relatively few requests each year to discharge liens or to make them secondary to another lien, such as a lending institution's, in a process known as "subordination."

* * *

More states are offering tax amnesties or similar programs.

In a typical amnesty, the state agrees not to prosecute or impose penalties on those who step forward voluntarily, before officials knock on their door, and pay what they owe or make arrangements to pay. Many states go even further by offering reduced interest charges, or no interest at all.

Connecticut hopes to raise about $40 million through an amnesty from May 1 through June 25, 2009, says Sarah Kaufman, a spokeswoman for the Department of Revenue Services in Hartford. The state won't impose penalties and is offering a reduced interest rate. "You're going to see more deals like this in the coming year as legislative sessions open in 2009" and lawmakers look for ways to raise cash quickly, says Verenda Smith of the Federation of Tax Administrators in Washington.

In New York, the state tax department launched a new "voluntary disclosure" plan last summer that officials say already has been highly successful. It offers protection from criminal and civil penalties to all eligible taxpayers who voluntarily disclose and "correct" their "delinquent tax liabilities," and who agree to obey the law in the future. To participate, you have to come in voluntarily before the department finds you. Unlike traditional amnesties, New York's offer doesn't have an end date.

So far, New York's tax department has received nearly 1,000 applicants, says William Comiskey, deputy commissioner for tax enforcement. Of those, about 45% reported owing a total of more than $12 million. "The other 55% will tell us what they owe when they sign their agreements and send their returns," he says. Mr. Comiskey estimates that those 1,000 applicants will be reporting "somewhere around $25 million when all the numbers are in," and calls the results "pretty spectacular."

"Securing voluntary compliance is our primary enforcement objective," Mr. Comiskey says. The program is "the honey intended to entice taxpayers to self-correct past delinquencies and become compliant in the future."

RE/MAX TIMES

2008-12-03T09:23:00.002-05:00

RE/MAX Elite and the Clermont financial group. Your source for Homes and Mortgages!

December 3, 2008

Home

Owners and Managers Bulletin
Destination RE/MAX Coming Up Jan. 13
Spend a day in Denver with your best recruits as they learn about the network and hear from RE/MAX International Senior Officers. Select the "Destination RE/MAX" section of the Owners & Managers home page on Mainstreet for more information, including how to register for the event.

MTOD Updates: Recruiting, Surviving, Justifying Fees
In new Management Training On Demand videos, you get a survival primer for yourself and your agents, discover why listening skills are the best recruiting tools you have, and learn a technique for justifying your fees. Also, Judy LaDeur provides a fresh approach to recruiting.

Promote Long Drive Broadcasts to Recruits
A new RE/MAX Design Center postcard helps you promote ESPN's Christmas-season broadcasts of the 2008 RE/MAX World Long Drive Championship to recruits. All told, ESPN networks will broadcast more than 18 hours of Long Drive programming this month.

News of the Week

Dave's Blog: 'How Would You Stimulate Market?'

Albania, Macedonia Expand Global Network

Business Boosters

MGM Grand Reduces Convention Room Rate

Pam DeCourcey: Tips from the Chairman’s Club

Your Opinions and Stories

Interactive: What Phrases Irritate You Every Time?

’Tis the Season: How Are You Helping This Year?

Affiliate Resources

Long Drive Marathon: 15 More Hours of Exposure

New on ATOD: Moving, Buyer Urgency and More

Delete E-mail Asking for User Name, Password
If you receive an "Upgrade Your Account For Better Service" e-mail from "webmailusers.upgrade@remax.net," delete it without responding. It’s part of a "phishing" scam.

Going Green: Here Are Some
Eco-Friendly Closing Gifts Ideas

Sample ATOD
In "Advice on Relocating Your Business," Chris Brown offers tips on creating a smooth transition to your new market.

HELP
Don't know your RE/MAX Mainstreet Username? Send an email to ecare@remax.net.

Forgot your password? Log on to Mainstreet and click on "I've Forgotten My Password." You will be prompted with instructions on how to reset your password.

RE/MAX International, Inc. | Copyright 2008
5075 S. Syracuse Street | Denver, CO 80237 | USA

Only One Person Knows a Home's Value: Its Buyer

2008-11-21T21:42:00.002-05:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

House-Price Index Readings Can Be Inflated, Built on Shaky Foundations and Far From the Right Neighborhood

The good news is your home may be worth more than the rock-bottom price that your neighbors' houses fetched. The bad news: No one but you might think so.

The one point of widespread agreement in the real-estate industry is that there is no single accurate index of home prices. They are all over the map, cover different sets of homes and may exclude parts of the country or be unduly influenced by the mix of homes sold in a given month.

View Full Image

Associated Press

A sold sign is displayed in the yard of a house in Clarksville, Tenn., in October.

As the home market surged earlier this decade, the two leading indicators of home prices diverged. One didn't count homes sold with exotic or subprime mortgages, which fueled much of the bubble. These same properties are often the ones going on the auction block today at severe discounts, pulling the other home-price index down -- some say to unrealistic lows.

To address these discrepancies, indexes are going increasingly local. Other, less-well-known measures of home prices -- some of them available only to paying customers -- are adjusting to exclude homes sold by banks.

Sales of foreclosures and other distressed properties accounted for 35% to 40% of transactions in the third quarter, the National Association of Realtors said this week. The discount on such properties, often sold by banks that need to clear inventory quickly, can be 30% to 40% compared with similar properties sold by the resident, according to Damien Weldon, a vice president of credit-risk products and analytics at First American CoreLogic. The company's Loan Performance division is producing a new index without these discounted sales, a distinction that was "not important a few years ago, but now it's very important," Mr. Weldon says.

Numbers Guy Blog

Behind the Home-Price Indexes

The numbers from home-price indexes are widely watched. The Federal Reserve uses them to measure the value of housing stock. Banks use them to determine whether mortgages are underwater and to estimate the value of homes they will have to sell after foreclosure.

But the indexes may be leading everyone astray. Just as respondents to election surveys are meant to stand in for the broader electorate, the homes being sold need to represent all homes. The problem is, producers of these price measures aren't sure that sale prices reflect the values of houses not on the market.

"People put all their eggs in the sales-price basket," says Andrew Leventis, a senior economist with the Federal Housing Finance Agency, which produces a home-price index.

"Whether the transaction pool is reflective of the entire housing stock -- nobody addresses that problem," adds Karl Case, professor of economics at Wellesley College and co-creator of the Case-Shiller Index, a competitor to the federal government's measure.

The Case-Shiller index includes properties that had subprime loans attached.

"That's the stuff that went down most substantially, and that's probably the stuff that went up most substantially," Prof. Case says.

The federal index, though, doesn't include such properties, instead accounting only for properties with financing from mortgage giants Fannie Mae or Freddie Mac. For that reason, many prefer Case-Shiller.

"I believe S&P Case-Shiller for the areas it covers," says Thomas Lawler, a housing economist in Leesburg, Va.

Case-Shiller has shown a steeper decline in markets with many distressed sales. The second-quarter year-over-year declines in San Francisco, Phoenix and Las Vegas ranged from 23% to 28%, according to Case-Shiller. But the federal gauge recorded declines of only 5.8%, 11% and 18%, respectively.

Not everyone thinks the Case-Shiller index is useful. Richard A. Smith, chief executive of real-estate broker Realogy Corp., says the index omits 13 states. "Case-Shiller as a broad index is inaccurate," Mr. Smith says.

David Blitzer, chairman of the index committee at Standard & Poor's, which publishes Case-Shiller, responds that "the sampling and data collection is as good as it can be."

"One's got to be wrong," Mr. Smith said of the dueling Case-Shiller and federal indexes. "Nobody will know until the book is written."

Yet there is no surefire way to know which index got closer to the truth. Each year since 2000, the Census Bureau has asked homeowners to report the value of their home, but "it doesn't necessarily jibe with assessment records or anything like that," says Jeanne Woodward, a Census Bureau statistician.

Another potential check on values is home appraisals. But Dr. Leventis said there are two possible sources of upward bias. One is that people often choose to get their homes appraised when they figure the value has risen sharply and they can convert some of that to cash with a refinancing. Another is that appraisals tend to overstate the value of homes, perhaps because homeowners seek the most-favorable assessment.

"I really don't see a benchmark" against which to check these home-price indexes, says Lawrence Yun, chief economist of the National Association of Realtors.

His group releases its own numbers, most recently showing prices declining by 9% in the third quarter compared with a year earlier. But that measure, unlike the others, doesn't take into account a home's sales record. So instead of comparing each property's sale price to its prior sale price, the realtors group compares the price of homes sold this month with that of homes sold last month -- even if the mix of homes has changed sharply. Mr. Yun defends the measure as "very simple to understand."

Most of the numbers that get headlines are based on metropolitan areas. Yet the housing-market picture can vary dramatically within the same region. Lynn, Mass., a suburb northeast of Boston, saw prices drop 10% in the second quarter compared with a year earlier, according to Wellesley's Prof. Case. Yet in the same period prices in Cambridge, just west of the city, rose 13%.

Integrated Asset Services, or IAS, sells estimates by neighborhood. "We are a lot more granular" than Case-Shiller and the federal index, Chief Executive David McCarthy said.

Within Middlesex County, which includes Cambridge, one neighborhood was up 12% compared with a year earlier in September, while two others were down 1% and 2%, respectively.

Fiserv Inc. uses the Case-Shiller local numbers to sell estimates for a single property.

The risk when going local is that data become sparse and a few anomalous sales may throw things off -- particularly in markets where most of the sales are distressed. IAS makes estimates based on as few as 50 to 75 transactions.

None of this nuance is captured in headlines about the latest home-price-index release, Prof. Case complains. Still, he is hopeful that home-price indexes will improve. "This new criticism that these indexes are showing different things is going to lead to a lot of research," he says.

Conforming Loan Limit for U.S. to Remain $417,000 in 2009:

2008-11-07T15:47:00.000-05:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

Different Limits in Some Areas
Federal Housing Finance Agency - November 7, 2009

The Federal Housing Finance Agency (FHFA) today announced the conforming loan limit will remain $417,000 for 2009 for most areas in the U.S. but specified higher limits in certain cities and counties. The conforming loan limit is the maximum size of loans that Fannie Mae and Freddie Mac can purchase in 2009.

According to provisions of the Housing and Economic Recovery Act of 2008 (HERA), the national loan limit is set based on changes in average home prices over the previous year, but cannot decline from year to year. Loan limits for two-, three-, and four-unit properties in 2009 will remain at 2008 levels as well: $533,850, $645,300, and $801,950 respectively, for homes in the continental U.S.

The national limit was left unchanged at $417,000 based on declines in FHFA’s monthly and quarterly house price indexes over the past year. The monthly purchase-only index declined 5.9 percent over the 12 months ending August 2008, and the quarterly all-transactions index dropped 1.7 percent from second quarter 2007 to second quarter 2008. Virtually every other measure of house prices has also fallen, with many showing even larger declines. FHFA has not yet determined whether it will continue to use a currently existing FHFA price index to gauge price movements in future years. For this year, however, all reliable metrics point to lower prices, and a price decline of any size is sufficient to determine that the national limit will not change.

Following the provisions of HERA, FHFA has set loan limits for “high-cost” areas in 2009. These limits are set equal to 115 percent of local median house prices and cannot exceed 150 percent of the standard limit, which is $625,500 for one-unit homes in the continental U.S. The new limits affect loans purchased by an Enterprise in 2009, unless the loans were made permanently eligible for purchase under the Economic Stimulus Act enacted earlier in 2008 and has generally higher limits.

Under rules set forth in the Stimulus Act, loans originated in 2008 and the second half of 2007 are subject to limits of 125 percent of local price medians up to a maximum of $729,750. As a result of the difference in the formula for determining high-cost area limits, many of the high-cost area loan limits are different for 2009 than they were for 2008. They are generally lower because of the lower median price multiplier in HERA (i.e., loan limits are 115 percent rather than 125 percent of median prices) and the lower ceiling ($625,500 rather than $729,750). For loans originated during the period covered by the Stimulus Act, the higher of those limits and the 2009 limits will apply.

In calculating loan limits, FHFA used median house price estimates calculated by the Federal Housing Administration (FHA) of the Department of Housing and Urban Development (HUD). Those values have been estimated in a manner consistent with requirements of the National Housing Act, which requires that median prices for all counties in metropolitan statistical areas (MSAs) be set equal to the median price for the highest-cost county. FHA has estimated median house prices for the purpose of setting its own loan limits and has used data from a number of sources, including aggregated county recorder data (supplied by Radar Logic), the American Community Survey, and the National Association of Realtors.

HUD will allow a 30-day appeals period for those wishing to contest its median price estimates. Appeals are to be based upon data suggesting a potentially higher price median for a given area. Details concerning the appeals process will be released today in an FHA mortgagee letter. To the extent that appeals are deemed valid and HUD’s median price estimates change in response to the one-time appeals process, the FHFA loan limits will be changed to reflect the updated data.

While FHFA has used median house prices estimated by FHA for 2009 loan limits, it may choose alternative methods in future years. FHFA will be seeking public comment on a forthcoming proposal concerning the best approach to measuring price medians for this application.

As in previous years, the 2009 maximum conforming limits are higher in Alaska, Hawaii, Guam, and the U.S. Virgin Islands than in the contiguous U.S. In those areas, as delineated in the attached list, loan limits vary from $625,500 to $721,050 for one-unit properties.

In addition to a table containing a list of all conforming loan limits for all U.S. counties and statistically equivalent areas, also attached is a list showing only those areas where 2009 loan limits are set by the high-cost area provisions in HERA. These areas have loan limits above $417,000 for one-unit properties in the continental U.S. and above $625,500 for properties in Alaska, Hawaii, Guam and the U.S. Virgin Islands.

Link to 2009 High-Cost Area Loan Limits (PDF)

LOOKING BACK AND LOOKING AHEAD

2008-10-27T20:31:00.001-04:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

Mortgage markets followed the recurring trading pattern of 2008 last week -- volatility, volatility, and more volatility.

After opening with a strong performance that drove rates down, late-week fears of a global recession reversed that path. Mortgage rates ended the week unchanged.

This was an unexpected outcome for the week considering that:

The dollar gained 5%, making bonds "worth more"
Oil fell 11%, helping to spur consumer spending
LIBOR dropped slightly, signaling a credit thaw

Each of the above factors usually helps to generate new demand for mortgage bonds, pressuring mortgage rates lower.

But, this market is anything but normal. Because of the stock market's weak showing last week, several hedge funds were forced to liquidate their holdings and move into cash. The rampant selling dumped an excess supply of mortgage bonds onto the market, offsetting the favorable bond market conditions, and causing mortgage rates to rise sharply from Wednesday to Friday.

Unsuspecting rate shoppers found this out the hard way.

This week, mortgage markets should be similarly unpredictable -- there is a bevy of economic news and government news on which markets will chew, digest, and attempt to swallow.

On the economic side, the two most influential data points are the Consumer Confidence survey, and Personal Consumption Expenditures. The former will be used to predict Holiday Season shopping -- a weak reading should cause mortgage rates to rise -- and the latter is the Federal Reserve's measure of inflation.

If PCE is low, expect calls for more economic stimulus which would help mortgage rates to recede.

And, on the government side, the Federal Reserve will hold its scheduled 2-day meetingTuesday and Wednesday. It's widely expected that the Fed will lower the Fed Funds Rate by at least 0.250 percent, maybe more.

Often, when the Fed Funds Rate falls, mortgage rates rise in the immediate wake of the announcement. Be aware of this if you are currently floating a mortgage rate.

Bernanke Is Fighting the Last War

2008-10-19T07:54:00.003-04:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

COPY WSJ INTERVIEW

On Aug. 9, 2007, central banks around the world first intervened to stanch what has become a massive credit crunch.

Since then, the Federal Reserve and the Treasury have taken a series of increasingly drastic emergency actions to get lending flowing again. The central bank has lent out hundreds of billions of dollars, accepted collateral that in the past it would never have touched, and opened direct lending to institutions that have never had that privilege. The Treasury has deployed billions more. And yet, "Nothing," Anna Schwartz says, "seems to have quieted the fears of either the investors in the securities markets or the lenders and would-be borrowers in the credit market."

The credit markets remain frozen, the stock market continues to get hammered, and deep recession now seems a certainty -- if not a reality already.

Most people now living have never seen a credit crunch like the one we are currently enduring. Ms. Schwartz, 92 years old, is one of the exceptions. She's not only old enough to remember the period from 1929 to 1933, she may know more about monetary history and banking than anyone alive. She co-authored, with Milton Friedman, "A Monetary History of the United States" (1963). It's the definitive account of how misguided monetary policy turned the stock-market crash of 1929 into the Great Depression.

Since 1941, Ms. Schwartz has reported for work at the National Bureau of Economic Research in New York, where we met Thursday morning for an interview. She is currently using a wheelchair after a recent fall and laments her "many infirmities," but those are all physical; her mind is as sharp as ever. She speaks with passion and just a hint of resignation about the current financial situation. And looking at how the authorities have handled it so far, she doesn't like what she sees.

Federal Reserve Chairman Ben Bernanke has called the 888-page "Monetary History" "the leading and most persuasive explanation of the worst economic disaster in American history." Ms. Schwartz thinks that our central bankers and our Treasury Department are getting it wrong again.

To understand why, one first has to understand the nature of the current "credit market disturbance," as Ms. Schwartz delicately calls it. We now hear almost every day that banks will not lend to each other, or will do so only at punitive interest rates. Credit spreads -- the difference between what it costs the government to borrow and what private-sector borrowers must pay -- are at historic highs.

This is not due to a lack of money available to lend, Ms. Schwartz says, but to a lack of faith in the ability of borrowers to repay their debts. "The Fed," she argues, "has gone about as if the problem is a shortage of liquidity. That is not the basic problem. The basic problem for the markets is that [uncertainty] that the balance sheets of financial firms are credible."
So even though the Fed has flooded the credit markets with cash, spreads haven't budged because banks don't know who is still solvent and who is not. This uncertainty, says Ms. Schwartz, is "the basic problem in the credit market. Lending freezes up when lenders are uncertain that would-be borrowers have the resources to repay them. So to assume that the whole problem is inadequate liquidity bypasses the real issue."

In the 1930s, as Ms. Schwartz and Mr. Friedman argued in "A Monetary History," the country and the Federal Reserve were faced with a liquidity crisis in the banking sector. As banks failed, depositors became alarmed that they'd lose their money if their bank, too, failed. So bank runs began, and these became self-reinforcing: "If the borrowers hadn't withdrawn cash, they [the banks] would have been in good shape. But the Fed just sat by and did nothing, so bank after bank failed. And that only motivated depositors to withdraw funds from banks that were not in distress," deepening the crisis and causing still more failures.

But "that's not what's going on in the market now," Ms. Schwartz says. Today, the banks have a problem on the asset side of their ledgers -- "all these exotic securities that the market does not know how to value."

"Why are they 'toxic'?" Ms. Schwartz asks. "They're toxic because you cannot sell them, you don't know what they're worth, your balance sheet is not credible and the whole market freezes up. We don't know whom to lend to because we don't know who is sound. So if you could get rid of them, that would be an improvement." The only way to "get rid of them" is to sell them, which is why Ms. Schwartz thought that Treasury Secretary Hank Paulson's original proposal to buy these assets from the banks was "a step in the right direction."

The problem with that idea was, and is, how to price "toxic" assets that nobody wants. And lurking beneath that problem is another, stickier problem: If they are priced at current market levels, selling them would be a recipe for instant insolvency at many institutions. The fears that are locking up the credit markets would be realized, and a number of banks would probably fail.
Ms. Schwartz won't say so, but this is the dirty little secret that led Secretary Paulson to shift from buying bank assets to recapitalizing them directly, as the Treasury did this week. But in doing so, he's shifted from trying to save the banking system to trying to save banks. These are not, Ms. Schwartz argues, the same thing. In fact, by keeping otherwise insolvent banks afloat, the Federal Reserve and the Treasury have actually prolonged the crisis. "They should not be recapitalizing firms that should be shut down."

Rather, "firms that made wrong decisions should fail," she says bluntly. "You shouldn't rescue them. And once that's established as a principle, I think the market recognizes that it makes sense. Everything works much better when wrong decisions are punished and good decisions make you rich." The trouble is, "that's not the way the world has been going in recent years."
Instead, we've been hearing for most of the past year about "systemic risk" -- the notion that allowing one firm to fail will cause a cascade that will take down otherwise healthy companies in its wake.

Ms. Schwartz doesn't buy it. "It's very easy when you're a market participant," she notes with a smile, "to claim that you shouldn't shut down a firm that's in really bad straits because everybody else who has lent to it will be injured. Well, if they lent to a firm that they knew was pretty rocky, that's their responsibility. And if they have to be denied repayment of their loans, well, they wished it on themselves. The [government] doesn't have to save them, just as it didn't save the stockholders and the employees of Bear Stearns. Why should they be worried about the creditors? Creditors are no more worthy of being rescued than ordinary people, who are really innocent of what's been going on."

It takes real guts to let a large, powerful institution go down. But the alternative -- the current credit freeze -- is worse, Ms. Schwartz argues.

"I think if you have some principles and know what you're doing, the market responds. They see that you have some structure to your actions, that it isn't just ad hoc -- you'll do this today but you'll do something different tomorrow. And the market respects people in supervisory positions who seem to be on top of what's going on. So I think if you're tough about firms that have invested unwisely, the market won't blame you. They'll say, 'Well, yeah, it's your fault. You did this. Nobody else told you to do it. Why should we be saving you at this point if you're stuck with assets you can't sell and liabilities you can't pay off?'" But when the authorities finally got around to letting Lehman Brothers fail, it had saved so many others already that the markets didn't know how to react. Instead of looking principled, the authorities looked erratic and inconstant.
How did we get into this mess in the first place? As in the 1920s, the current "disturbance" started with a "mania." But manias always have a cause. "If you investigate individually the manias that the market has so dubbed over the years, in every case, it was expansive monetary policy that generated the boom in an asset.

"The particular asset varied from one boom to another. But the basic underlying propagator was too-easy monetary policy and too-low interest rates that induced ordinary people to say, well, it's so cheap to acquire whatever is the object of desire in an asset boom, and go ahead and acquire that object. And then of course if monetary policy tightens, the boom collapses."
The house-price boom began with the very low interest rates in the early years of this decade under former Fed Chairman Alan Greenspan.

"Now, Alan Greenspan has issued an epilogue to his memoir, 'Time of Turbulence,' and it's about what's going on in the credit market," Ms. Schwartz says. "And he says, 'Well, it's true that monetary policy was expansive. But there was nothing that a central bank could do in those circumstances. The market would have been very much displeased, if the Fed had tightened and crushed the boom. They would have felt that it wasn't just the boom in the assets that was being terminated.'" In other words, Mr. Greenspan "absolves himself. There was no way you could really terminate the boom because you'd be doing collateral damage to areas of the economy that you don't really want to damage."

Ms Schwartz adds, gently, "I don't think that that's an adequate kind of response to those who argue that absent accommodative monetary policy, you would not have had this asset-price boom." Policies based on such thinking only lead to a more damaging bust when the mania ends, as they all do. "In general, it's easier for a central bank to be accommodative, to be loose, to be promoting conditions that make everybody feel that things are going well."

Fed Chairman Ben Bernanke, of all people, should understand this, Ms. Schwartz says. In 2002, Mr. Bernanke, then a Federal Reserve Board governor, said in a speech in honor of Mr. Friedman's 90th birthday, "I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again."
"This was [his] claim to be worthy of running the Fed," she says. He was "familiar with history. He knew what had been done." But perhaps this is actually Mr. Bernanke's biggest problem. Today's crisis isn't a replay of the problem in the 1930s, but our central bankers have responded by using the tools they should have used then. They are fighting the last war. The result, she argues, has been failure. "I don't see that they've achieved what they should have been trying
to achieve. So my verdict on this present Fed leadership is that they have not really done their job."

RE/MAX NATIONAL HOUSING REPORT

2008-09-27T06:24:00.001-04:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

Through an exclusive agreement with the Associated Press, the newly created "RE/MAX National Housing Report" for the U.S. is being distributed to the news media on a monthly basis. The report for August was released Wednesday.

With extensive national distribution, the monthly report is bringing tremendous exposure for the RE/MAX brand.

The report is designed to fill the need for an accurate and comprehensive gauge of today's real estate market. It's unique because it provides data for all types of residential properties (single-family homes, condos and townhomes) and covers a large sampling of 60 metropolitan areas, representing all 50 states.

"We want to give the most thorough representation of the marketplace possible." says Dave Liniger, Chairman and Co-Founder of RE/MAX International. "By including entire metropolitan areas in all 50 states, we hope our report will become the most complete guide to the overall health of our national real estate marketplace."

The Associated Press will prepare news stories and informational, interactive graphics based on the monthly updates for use by its extensive broadcast, print and Internet subscribers.
"It's critical at this point in time to have the most reliable information available," Liniger says. "The consumer is anxious to know what this market is doing and where it's headed. The RE/MAX National Housing Report will provide sales, inventory and price information that can help homebuyers and sellers get through this market."

Fannie and Freddie: Finding Their Future

2008-09-11T07:59:00.001-04:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

I applaud recent government actions to restore confidence and stability in the housing industry by placing Fannie Mae and Freddie Mac into a conservatorship. Federal cash guarantees are part of the plan, which will also replace key executives at the two government sponsored enterprises (GSE's).

Many analysts believe that this move will lead to lower interest rates in the short term and help bring buyers back to the market to reduce the high inventory of homes. All this is good, but it may come at a price. Taxpayers may be stuck with a $200 billion bill to bail out the two GSE's. But there aren't many good options at this point in time.

The original objective for the two GSE's was to provide a "counter-cyclical balance" to the marketplace, letting private organizations operate freely in good times and providing alternative options in bad times, all to ensure consistently affordable homeownership.

These are respectable goals, but over the years, Fannie and Freddie have grown to control roughly half, or about $5 trillion of securitized mortgages in the United States. Part of the stated objectives of the new plan is to allow them to continue to grow through 2009, in an effort to stabilize the market, but then in 2010 to shrink by 10% each year to a more reasonable size.
However, creators of this new restructuring plan recognize that congress and the new administration will ultimately determine a permanent future for Fannie and Freddie. It is my hope that their original mission, to create opportunities for affordable housing, will not be lost, while at the same time, their dominance in the marketplace will be reduced.

Nobody likes the idea of having the government control such a large portion of the mortgage industry, but for the short term, this plan may play a key role in the resolution of the serious problems in the housing industry. A reorganization of Fannie and Freddie may be long overdue and have a positive impact, but we need to be sure that we don't facilitate government control of an industry vital to the economic well being of so many in our country.

Take the Updated Mainstreet Tour for User Tips

2008-09-05T22:28:00.002-04:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

Are you familiar with ALL of the latest features and resources available on RE/MAX Mainstreet? You may want to take an updated tour accessible from the login screen - and share the link with others who are in, and even outside, the network.

You'll find information about all of the following and more:

.Maximizing your Mainstreet presence by enhancing your member profile
.Setting up your remax.net forwarding e-mail address
.Sending and receiving referrals through the Web Roster
.Accessing educational videos through Agent Training On Demand
.Getting started with LeadStreet and the RE/MAX Design Center
.Shopping for RE/MAX branded business supplies and support materials through the RE/MAX Order Desk Online

Access the tour using the "Start the Flash tour now" link on the Mainstreet login screen.
If you're already logged in to Mainstreet, simply sign off and select "Click here to sign back in." You'll be redirected to the login page.

Without having to sign in to view the tour, you'll be able to give friends, business associates and recruits a sneak peak at the valuable features inside.

You can watch all segments of the tour in sequence, or choose the topics you want to learn more about.

The Housing Bill: A Silver Bullet?

2008-08-26T08:00:00.002-04:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

Of course, there aren't many people who believe that the government has the best solution to our problems, even if the problem is as significant as our current housing situation. No, the government should never be the first choice, but at this point we may need all the help we can get.

However, I really don't believe that the recent Housing Stimulus Bill is going to be the silver bullet that so many are hoping for. There are some aspects of the bill that certainly take steps in the right direction, but in the end, it will only be one of several factors that will eventually help turn this market around.

Now, I'd like to comment on some of the bill's highlights:

Tax credits for first time home buyersThis may help bring more buyers into the market, even though the definition of a first-time buyer is a bit loose.

Conversion to 30 year fixed loans for financially strapped homeownersWho could be against this, except for the lenders get to decide who is "financially strapped." A great opportunity for them to unload only their worst loans.

Making higher conforming loan limits permanentI think this is a good idea and should have been done long before now.

Better management and oversight of Fannie and FreddieSounds good, but this may not translate directly or immediately to practical help for homeowners.

I think you get the idea. It's an election year mixed bag that really doesn't go far enough to have the type of impact to turn this market around. This Housing Stimulus package may help some, but in the end, it will be the marketplace that decides.

Although it may take several more months to turn around, we are already seeing signs of a rebound in some locations. My advice is to take the time to educate yourself on those skills required by this buyers market and you will survive to find even more success in the next real estate rush.

5 Million remax.com Leads Distributed through LeadStreet

2008-08-09T08:17:00.002-04:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

It's thrilling to manage more than 5 million online leads - but that's something the competition probably doesn't understand. No other real estate network has distributed more referral-free Web leads to agents than RE/MAX.

Since the launch of LeadStreet in 2006, RE/MAX Affiliates have received more than 5 million e-mails, text messages and other notifications from clients on remax.com who are looking for assistance and guidance during the home buying process.

That translates into nearly 180,000 leads a month - or 6,000 a day.
In recognition of the success of lead Street and the ILDX initiative to put all the listings on remax.com, eNeighborhoods - one of two firms that powers the lead-generation system - presented RE/MAX International's eBusiness team - as well as the regional representatives who are integral to the success of the LeadStreet - with a trophy.

"We're recognizing the hard work and investment that RE/MAX International has put into LeadStreet - so that all the benefits go out to the agents and brokers," says Andy Woolley, Vice President of Enterprise Services for eNeighborhoods. "The technology is groundbreaking and, really, RE/MAX is the first company that's done it on a companywide scale, both creating a consumer interface and taking the next step to provide tools for agents and brokers to incubate and manage the leads they receive.

"It's connecting consumers with agents and using that national presence of the RE/MAX brand to drive traffic down to the local level."

Woolley presented the trophy to RE/MAX International Vice President of eBusiness Marnie Blanco and Senior Vice President of Information Technology and eBusiness Kristi Graning.
"It's a symbol of the leaps and bounds ahead of the competition RE/MAX is in providing successful technology services and tools to Associates," Graning says. "The numbers indicate that remax.com is a Web site of choice for consumers - and RE/MAX Associates are the ones they turn to - when they're looking for the most listings and best information

New Legislation Might Provide Boost for Homebuyers

2008-08-05T07:29:00.001-04:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

With home sales and prices down, and unsold inventory up in many areas, the real estate market could use a jolt of good news - and Congress just provided it.

The massive, 690-page housing bill just approved on Capitol Hill has plenty of mortgage-related provisions in it, but it also has an important stimulus program designed to jump-start housing sales: It's a tax credit, effective immediately, that could cut up to $7,500 off the federal tax return of anyone who buys a house before the end of next June, when it expires.

Buyers have to be first-time purchasers, or renters who haven't owned a house anytime in the past three years. The "credit" is actually more like an interest free loan, repayable over 15 years. Single taxpayers can only qualify for a $3,750 maximum credit. But it still puts thousands of after-tax dollars of incentives into home purchases - money that wasn't there before.

Starting this week, hundreds of thousands of potential buyers who've been on the sidelines can purchase a new or resale house and qualify for the credit. The National Association of Realtors estimates that up to two million sales could be stimulated by the credit in the coming 11 months, and the National Association of Home Builders anticipates a "multiplier effect" in the move-up segment of the market.

That's because people who sell houses to buyers using the credit will then often need to go out and find replacement homes for themselves - effectively rippling the impact of the credit upstream, triggering even more sales.

Since there's no Congressional limit on how many buyers can take advantage of the new incentive, it could prove to be huge. It all depends on whether Realtors, builders and individual sellers educate potential buyers about how to factor the credit into affording a new home.
In other economic news this week, mortgage rates jumped to their highest level in nearly a year, 6.6 percent for 30-year fixed rate conventional loans, according to the Mortgage Bankers Association of America.

On the plus side, the University of Michigan's Consumer Sentiment survey - a key economic barometer affecting consumers' willingness to spend - rose a surprising five points last month.
And still another surprise: The national home ownership rate - defying all gloom and doom predictions - jumped to 68.1 percent in the latest quarter, up from 67.8 percent.
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2008-07-23T11:54:00.001-04:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

The Inflation Calculator Checks Whether Your Income Is Keeping Pace With The "Cost of Life"
The phrase "Consumer Price Index" can be intimidating and unclear to Americans. It's an economic term, after all, and not a part of everyday American language.
It even has its own abbreviation to add to the confusion -- CPI.

So, when a layperson hears that "CPI is rising", it's not always clear what it means. The tendency, therefore, is to ignore the news.

This is one reason CPI is commonly substituted with the more down-home expression of "Cost of Living".

In contrast to the term "CPI", the phrase "Cost of Living" is a lot more clear. When people hear that the Cost of Living is rising, instinctively, they get it. And now they can see how it works in numbers, courtesy of the Bureau of Labor Statistics.

The Inflation Calculator at the government Web site helps a person compare household income to the changing Cost of Living between any two years since 1913. For example, a U.S. household earning $48,201 in 2007 would have to increase that income to $50,868 just to keep up with "life".

CPI touched a 17-year high in June, jumping 5.000 percent year-over-year. Without a 5.000 percent increase an income, a household falls behind.

2008-07-15T07:37:00.001-04:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

"Remax" Ranks Second Among Real Estate Search Terms According to the Hitwise Internet usage statistics for June, "remax" holds steady as the No. 2 real estate search term, remax.com ranks No. 4 for real estate Web sites, and a California brokerage's Web site is named among the "Fast Moving."

Hitwise, a subsidiary of Experian, has been collecting and analyzing data directly from Internet Service Providers (ISPs) since 1997.
The search terms in the latest results were ranked by volume of searches that successfully drove traffic to Web sites in the Hitwise Business and Finance - Real Estate category for the four weeks ending June 28, based on U.S. Internet usage.

Hitwise Real Estate Search Term Rankings 1. realtor.com - 1.64 percent 2. remax - .81 percent 3. zillow.com - .56 percent 4. zillow - .39 percent 5. real estate - .38 percent 6. apartments - .37 percent 7. century 21 - .33 percent 8. realtor - .31 percent 9. homes for sale - .30 percent 10. www.realtor.com - .29 percent

In addition, Hitwise confirmed that remax.com was No. 4 among the most popular real estate sites in June.

Hitwise Most Visited Real Estate Web Site Rankings 1. realtor.com - 4.46 percent 2. Yahoo Real Estate - 2.70 percent 3. ZipRealty - 2.65 percent 4. RE/MAX - 2.47 percent 5. Rent.com - 2.36 percent 6. Zillow - 2.30 percent 7. Homegain - 1.77 percent 8. ServiceMagic - 1.69 percent 9. Trulia.com - 1.63 percent 10. Apartments.com - 1.62 percent

Taking Advantage of Short Sales

2008-07-07T16:24:00.002-04:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

And the bad news just keeps coming- Home prices keep falling, foreclosures keep rising, a gallon of gas keeps getting more expensive, food costs keep increasing, the stock market keeps falling, and we all keep wondering when will it end?

The market we have this year is the same market we'll have next year. Things are not going to change over night. But the good news is that the resourceful will survive. We just have to adjust our strategies.

In past Blog postings I talked about foreclosures, how they're a reality today and could be a part of a successful real estate business. Now, I'd like to remind you about Short Sales. Many lenders are realizing that they'll save money the sooner they can get a property off the books. So, when they fear a homeowner may be headed for foreclosure they may fix a sales price lower than the mortgage balance, and put the property on the market for a quick sale.

Short Sale opportunities are on the rise and if you have clients that are fearing foreclosure, encourage them to talk to their lender. Did you know that two thirds of homeowners in default never even contact their lender?

If the lender does agree to a Short Sale, it can work to everyone's advantage. The homeowner avoids foreclosure, the lender avoids the carrying costs, the neighborhood avoids another abandoned property on the block and a professional real estate agent can provide a beneficial service to a grateful consumer.

RSN just finished production of a very timely course, "Foreclosures, Short Sales and REO's." This very informative program is available on DVD and can be ordered here on Mainstreet in the Education Registration area. This course can also count toward a FSSAR certification.
Since this market will be with us for a while, I would recommend you learn how to handle these types of transactions. You'll add another tool to your tool box, help yourself through this turbulent time and also help reduce this tremendous inventory.

If you've had experiences in Short Sales and would like to share them. I'd like to hear from you and let everyone benefit from what you've learned.

The FHA Time Bomb

2008-06-23T22:19:00.002-04:00

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

Is this how a democracy subsidises business??

Well, this certainly is embarrassing. The Federal Housing Administration – the very agency the Bush Administration and Congress trumpet as the solution to the mortgage crisis – has announced that it suffered a $4.6 billion loss last year. This is one of the worst financial performances ever for the government's multibillion-dollar mortgage insurer.

We'd hope this news might cause Congress to reconsider its plans to turn over some $300 billion of troubled loans to an agency already in financial distress. No such luck. A bill passed by the House and now being debated on the Senate floor would expand the FHA portfolio to about 1.5 million mostly high-risk subprime mortgages. So at the very time private lenders and investors are fleeing subprime markets, Congress wants taxpayers to dive in.

The Senate has also folded into its housing bill a separate FHA "modernization" that would more than double the agency's loan limits while lowering downpayment requirements. Together these maneuvers could put taxpayers on the hook for tens of billions of dollars of additional mortgage losses.

One reason the FHA lost so much money was financial mismanagement. In 2000 in the final days of the Clinton Administration, HUD Secretary Andrew Cuomo tried to expand FHA's share of the mortgage insurance market by lowering its premiums by one-third, to 1.5% from 2.25%. The Bush Administration never reinstated the more prudent premiums. If it had, FHA's losses would have been zero or close to it.

The biggest reason the FHA lost so much money was a scam called the "downpayment assistance program." Under this program, builders or mortgage originators make a loan to low-income homebuyers, and then arrange for a third party to pay the downpayment, so the loan qualifies for FHA insurance. This means borrowers have no skin in the game, and in many cases have negative equity because the value of the homes are often inflated.

Borrowers could bet on the upside of the market at no cost to them. And thanks to the 100% FHA insurance against default, lenders were guaranteed full repayment whether or not the loan is ever repaid. Until recently, lenders even got a tax write-off for their "charitable contribution." Everyone won – except the taxpayer. Now even the FHA finally agrees that this program invites widespread fraud and wants to end it. But Barney Frank, who heads the House Financial Services Committee, is insisting that it continue.

One lesson from the debacle is what happens with low or zero downpayment FHA loans: They go bust. The Government Accountability Office finds that default rates are about three times higher than on conventional loans. So why in the world is Congress promoting a new FHA bill to lower downpayments to 3% and in some cases even to zero?

Here's another brain twister: Median home prices have fallen to $202,300 from $219,900 with more declines on the way. So why is Congress raising FHA mortgage limits to as high as $729,000 in some high-income areas? Mr. Frank's House bill would allow the FHA to guarantee a loan up to 125% of the average home price in any area. The FHA's mission is to help low- and moderate-income households become homeowners. Encouraging moderate-income families to buy $700,000 homes is how the subprime crisis began.

The most reckless provision now on the Senate floor would allow the FHA to take over risky subprime loans from private banks. When FHA Commissioner Brian Montgomery announced the agency's losses last week, he warned that Congress's subprime loan bailout could plunge FHA deeper into the red. Senate Banking staffers tell us that lenders have all but admitted that, if the bailout becomes law, they will dump their worst loans onto the FHA.

Among the likely dumpers: Countrywide Financial, which gave Senate Banking Chairman Chris Dodd a bargain mortgage. The Congressional Budget Office predicted this month that 35% of these loans could go sour.

Yet Congress is putting the political imperative of "doing something" about housing above the risks of tens of billions of dollars in taxpayer losses. The White House has waxed and waned in its support for this exercise, and late last week issued a statement saying President Bush might veto it. He could do worse than heed Kentucky Senator Jim Bunning, who warns: "As soon as we finish this bailout for banks and borrowers, the next taxpayer bailout will be of the FHA."

Cincinnati Realtors

2008-06-17T07:38:00.004-04:00

CINCINNATI'S RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

Cincinnati Realtors< Thinking of cutting your marketing efforts? One expert argues that a faltering economy is a great excuse to expand them! Do your Customers know you or your company?

In a sputtering economy, small businesses are often quick to rein in their marketing budgets. But that may be a shortsighted strategy. Glum economic times can be an opportunity for small companies to make inroads on their competitors' turf and re-energize their marketing efforts.
The Wall Street Journal recently spoke with Stefan Tornquist, research director for MarketingSherpa Inc., a Warren, R.I., marketing-research firm and unit of MECLabs Inc., about how small businesses can improve their marketing in a shaky economy and take advantage of some underused marketing channels. Excerpts of the discussion follow.

SELL YOURSELF Stefan Tornquist of MarketingSherpa Inc.
Moving Online

THE WALL STREET JOURNAL: Is the slowing economy affecting how businesses conduct marketing?

MR. TORNQUIST: Based on a survey we did in late February and early March, the largest group of small firms -- those with 100 or fewer employees -- surveyed are sitting and waiting to see what happens before changing their budgets. The second-largest said, "We think this is an opportunity," and the third-largest group is pulling in [marketing budgets].

The caveat is that people who see the down economy as an opportunity aren't spending their money in the same way. They're taking money out of traditional advertising and direct-marketing campaigns and putting it online. That was a movement that was already taking place, but the economy is accelerating the trend.

WSJ: What challenges does the current economy present?

MR. TORNQUIST: The challenge is one of resources, of course, and matching messaging for their customers. Companies that have sold around [the idea that their products deliver high quality for a somewhat higher price] have to figure out whether that message will work out with their customers now. Maybe a better message is the longevity of the product and long-term value rather than something that implies high cost. Smart companies take a downturn as a reason to look at current customers and re-evaluate how these relationships can be expanded.
businesses often can't afford the big-ticket security solutions big companies favor.

• The Way WSJ: What marketing strategies should small companies be looking at right now?

. TORNQUIST: I'm of the opinion that it's a good time to increase a brand imprint [by buying print or radio ads, or banner ads online, for instance]. A lot of small companies see branding activities as a waste of money. If I have a paid search ad, I see direct results. That's something about the Internet's effect on advertising -- if you don't get something immediately, you assume it's not working.

What we lose sight of is that brand activity makes us trust a company and buy when we see their ad later on. One of the greatest challenges for small companies is to make a name for themselves, and a downturn actually provides an opportunity to do that because it tends to suppress the branding activity. There's absolutely the opportunity to leapfrog competitors, especially if the local leader is using the downturn to curtail their activities