VanEd Newslog

Finance Friday: First time home-buyer credit may be set for extension

News reports out of Washington have indicated that an extension of the extremely popular $8,000 tax credit for first-time home buyers, along with a proposal to offer a $6,500 credit for existing homeowners, has been agreed to by key members of the Senate. The new $6,500 credit would be for those existing homeowners who have lived in their current residence for a consecutive five-year period within the past eight years.

Potential home buyers would need to be under contract by April 30, 2010, and close before July 1st, 2010. Concerns have been raised by House Democrats about the cost of the program, and there have also been allegations of abuse of the program that have resulted in an IRS probe of the program.

Early registration open for NAR Resort & Second-Home Symposium

The 2010 NAR Resort & Second-Home Symposium will be held at the Hyatt Regency Lake Tahoe Resort, Spa and Casino on June 13-15, 2010. Held every 18 months, the symposium is a can’t-miss networking and educational event for REALTORS®.

REALTORS® attendees either already have their Resort and Second-Home Property Specialist (RSPS) certification or are attending the symposium to earn their certification. The symposium offers all attendees a variety of educational events, seminars, property tours and social gatherings.

Symposium attendees come from across the United States and North and worldwide to get the latest information on economic issues, learn about marketing trends and new products, discuss the process of marketing of luxury homes, and to connect with clients and other REALTORS®.

Don’t miss out on this unique opportunity to attend education sessions and networking events tailored for your business! Attendance at the NAR Symposium counts as one elective towards your Resort and Second-Home Property Specialists (RSPS) Certification. To view the RSPS Certification requirements, please visit www.realtors.org/resorts

Click Here for more information or to register online.

There's still time to register for NAR conference and expo in San Diego

Register now for the 2009 REALTORS® Conference and Expo! We encouraged to register soon for the best hotel options! The conference is slated to run from November 13th through the 16th and the Annual Governance meetings will run from the 11th through the 16th.

Worried about price? Visit the Conference web site to learn 5 ways NAR is working to keep costs and expenses down for this years attendees.

This years conference will include programs and opportunities to expand your business and increase your productivity. Registrants will also be able to hear Condoleezza Rice, Sugar Ray Leonard and Daniel Shapiro. Learn more at http://www.realtor.org/convention.nsf/.

Review the NAR Conference Hotel map and amenities and the NAR Governance Meeting Schedule to help you plan your trip and housing needs.

Q&A with Jennifer Allan - "Should I try to enforce a 'pre-qualified buyers only' requirement on my new listing?"

We asked author Jennifer Allan to answer questions based on her teaching and experience in the real estate industry. Jennifer is also a regular contributor to Realty Times and RISMedia.

Question: "Should I try to enforce a “pre-qualified buyers only” requirement on my new listing? If so, how?"

JA: Every once in awhile I’ll hear an agent say that he (or she) restricts showings on his listings only to buyers who are already pre-qualified for the purchase price. His rationale is that it’s inappropriate to inconvenience a seller by allowing showings to buyers who in all likelihood cannot or will not purchase the property.

I disagree - I think it’s simply a matter of setting appropriate expectations with a seller. In 12 years, I have never had a seller ask me to screen buyer showings, probably because I warn them upfront I have no control over who looks at their home. Some will be real buyers, some will be agents previewing the competition for their upcoming listing and some will be buyers out for the first time who won't buy for six months.  

However, I continue, any activity is good activity, even if it doesn't result in a sale, because the home has been exposed to one more (actually probably two or three more counting the Realtor & buyers) and exposure is always a good thing. We should do everything we can to encourage showings, rather than look for ways to trim them down. I'd much rather risk my seller being a bit irritated at lookie-loo's than miss a previously lukewarm buyer who suddenly turns into a red-hot one.

My sellers ALWAYS say - "Of course! We want as many people as possible to look at our home!"

As a wise (wo)man once said… “Unseen is Unsold!”

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Guest Author Jennifer Allan has authored five books and multiple courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm.  The latest release of her book Sell with Soul is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com.

VanEd Presents: Appraisal Exam Prep ~ available online

VanEd’s got you covered with two new online EXAM PREP courses for those needing to pass the initial License or Certified Residential License Exam for Appraisers. 

Developed by Henry Harrison MAI, SRPA, ASA, IFAS, DREI and Burton Lee MAI, FRICS, CDEI — two leading authors and educators in the industry, our online Appraisal Exam Prep courses offer pooled questions from over a 900 question database,  including thorough coverage of the current USPAP and tips to better prepare you for your test day. 

Exams can be repeated as often as you like and will pull different questions each time — INCLUDING essential vocabulary review!  Check us out online by following this link:

CLICK HERE for Appraisal Exam Prep! 

Sign up anytime and conveniently access the course whenever you need to — and if you have questions, we’re here to help — email us at appraisal@vaned.com!

Finance Friday: Tougher Qualifying Standards

Many investors are adopting even more stringent underwriting standards. Most of these will become effective for loan applications taken after November 1st and for closings after the end of the year.  Here are some of the most common requirements.

1. Maximum Debt to Income Ratio of 45% regardless of Automated Underwriting Decision. There are a few instances where the ratio can be up to 50% with excellent compensating factors. The 45% ratio applies to both conforming conventional and FHA loans.
2. Requiring two years of income tax records, either W-2's for employed borrowers or complete tax returns for self employed borrowers.
3. All credit documents as well as the appraisal can be no more than 90 days old as of the funding date.
4. Proof of liquidation if stocks, bonds, mutual funds, or retirement accounts that are used for down payment or closing costs. In addition, only 70% of the account value (60% for retirements accounts) may be used for qualifying purposes.
5. All appraisals must include interior photos of the main rooms.
6. Employment and income must be verified even for FHA streamline refinances and VA rate and term refinances. The maximum ratios for FHA streamline refinances are 31% (payment ratio) and 43% (debt ratio). For VA loans, the maximum debt ratio is 41%.
7. Income from alimony, child support, or separate maintenance must be documented by a 12 month history of receipt as well as proof it will continue for at least three more years.
8. Requiring fraud mitigation reports, which verify six basic elements: Social security number, address, phone number, employment, liabilities, and property alerts. There are several companies providing acceptable reports.

Interest rates have trended up slightly this week.  A no point low fee 30 year mortgage for a high credit score borrower is still available at 5.125%. Paying a one percent fee brings the rate to 4.75%.

Guest Author Randy Kelly is a Mortgage Banker and Finance Author with Premier Mortgage.

VanEd Presents: Understanding Sustainability

VanEd is proud to offer the Planning Institute course; Understanding Sustainability. This course is a survey of sustainability, global climate change, and efforts on an international, national, and personal level that can effect the change necessary to become more sustainable. It will give the student the information necessary to discuss the general topic, and to evaluate new information about global climate change and what can be done about it as that information comes along over the next few years.

The approach of the course is to look at the antecedents of sustainability, some of the key terms, national and local policies, alternative energy sources, and individual efforts that lead to a more sustainable lifestyle.

This course qualifies for real estate continuing education in Colorado - Click Here to learn more!

Designation Spotlight: e-PRO ~ Discounted registration ends Friday!

e-PRO is designed to help agents thrive in the world of online real estate by teaching students the technology on the forefront of the industry. VanEd offers access to the e-PRO certification program online. e-PRO is the only Internet certification program endorsed by NAR, and is designed to enhance the students knowledge of online marketing and resources.

Right now receive a discount on the price of the e-PRO certification course. Register by Friday, October 16th and pay only $299! and receive: e-PRO - NAR's only internet certification program as well as the new Web 2.0/Social Media module that was released in July - FREE!

Click Here to register today!

For more information on e-PRO, and you may also watch the approx. 8 minute video below to learn more about e-PRO.

Affiliate Spotlight: $2 Million in Commissions Paid and Growing!

Entrust New Direction reports that over $2 Million in commissions have been paid to real estate professionals who know about self-directed retirement plans have been brokering deals involving IRAs purchasing or selling real estate for their clients. Entrust New Direction has overseen over 900 real estate transactions for clients. Self-directed plan administrators like Entrust New Direction are not allowed to give investment advice, make recommendations, or sell any products.

“Being a marketing person, our limitations put me in an awkward spot at times. Potential clients call, are excited, and want to know how to find that first piece of real estate for their IRA. I can’t help them with that. That’s why we spend so much time building relationships with professionals who can,” offers Marketing Coordinator, Amy Sheflin.

“The key for professionals is just letting clients know that they can make these investments and then following up with listings of available investment properties. Knowing how to analyze the investments for the client’s retirement plan is key. This education can be a cornerstone to building sales and catering to investor clients.”

Many professionals are just starting to realize what this growing market of investors could mean for their business. Entrust New Direction continues to try to reach these professionals through continuing education and other events in the metro area and teach them how to use the tool to build sales. Entrust offers education both online and in their on-site classroom and has several events planned for this fall. For a full list of upcoming events, visit www.NewDirectionIRA.com.

Agents and brokers can take the MRE approved course online through Van Education - register online at http://www.vaned.com. Entrust New Direction will also be the featured course author in VanEd's booth at the Colorado Association of Realtors convention in Colorado Springs from 11:30am - 2:00pm at the Broadmoor on Monday, October 19^th. Stop by the VanEd booth to say hello!

Two follow-up classes are planned after this event and qualify for 2 hours of Continuing Education credit. The Introduction to the Real Estate IRA offers an overview of how it all works and how professionals can incorporate self-directed investment tools into their business to help sell properties. It will be offered on October 28^th from 8:30am – 10:30am and again on November 12^th again from 8:30am – 10:30am. Both classes will be held in Entrust New Direction’s classroom, registration is available online by clicking here.

Guest Authors Bill Humphrey and Catherine Wynne are Principals with Entrust New Direction IRA. Reach them online at www.newdirectionira.com.

Q&A with Jennifer Allan - Do I really have to do an open house?

We asked author Jennifer Allan to answer questions based on her teaching and experience in the real estate industry. Jennifer is also a regular contributor to Realty Times and RE/MAX Times.

Question: "Everyone knows that open houses aren't likely to sell the house. Do I really have to do one?"

JA: I think so, sorry. For many reasons, not the least of which is that your seller expects you to and any attempt you make to talk him out of it will make you appear, um, lazy. Even if the seller agrees to your face that open houses are a waste of time, inside he's wondering if you're really as committed to getting his house sold as you say you are. Open houses are one of the most visible things we do as real estate agents and a very easy way to keep a seller happy. Conversely, refusing to do one is a very easy way to make a seller UNhappy!

Here are three other reasons to hold your listing open, at least once:

1. You can gather feedback from the public to share with your seller,
2. You'll become more familiar with your listing and might notice features (or challenges) you didn't see before,
3. You might sell the house. You never know - but it's not as if you holding an open house will HURT your chances of getting it sold!

So, yeah, I think you oughta do it. What's the worst thing that could happen?

Jennifer will be presenting "Selling to your Sphere of Influence" next week at the CAR Convention. Click here for information.

Guest Author Jennifer Allan has authored five books and multiple courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm.  The latest release of her book Sell with Soul is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com.