Hinge Buyers....Jacki's new phrase...will it catch on, and what is it?

It's a buyer's market. How often have we heard that lately? I have to say though, I dunno about all that. I think it's a stale-mate market personally. Here's why:

As Jay Butler pointed out in an article in today's Arizona Republic, Buyers must first be sellers. And as we know, sellers are having a tough time right now. So it's the old "chicken or the egg" question in real estate...what comes first, the buyer or the seller?

Does it all come down to people who are buying that don't currently own a home? Or maybe the second home buyers? It's like a domino theory....there's one buyer that has no contingencies (aka a house to sell before they can close on the home their buying) that starts the effect.

Example:

John Buyer buys a $300,000 home with no contingencies from Jane Seller. Now Jane Seller can buy her move-up home for $400,000 from Susan Sellsalot. Susan Sellsalot can now buy her dream home from Sam Sellnow for $600,000. Sam Sellnow can now start working on his financial goal of becoming an investor. Sam takes the profit from his house and buys an investment property for $250,000 and a personal residence for $500,000. Now we have 2 more buyers in the market...and so on and so forth.

See what I'm saying here?

So now EVERYTHING hinges on good ol' John Buyer. I am right now coining the phrase "Hinge Buyer"....that describes John Buyer in a nutshell. (and if you've heard this term before, let me know. But I think we might be looking at a Jacki Semerau Original here.)

Easy enough, right? There's always first time home buyers out there, right? And if you think about, hasn't real estate been like that from the very beginning? I can see Chris Caveman, needing to upgrade to a larger cave due to his growing family. So he barters with First time cave dweller Dave, previously living in his parent's cave. You see where I'm going, right?

Ahhh....but it's not that easy anymore, now is it? Why not? Here it is...the Real Estate Buzzword of My Blog, SUBPRIME.

With the subprime debacle still in effect, lenders are all too scared to lend their money. Some guidelines are way too strict for John Buyer to qualify. If John Buyer doesn't qualify, then all of those subsequent sales mentioned above don't happen. Leading us to a Stalemate.

As I heard on a real estate radio talk show this week, the pendulum looks to be swinging too far in the opposite direction. So how long do we hold on? Where do we find those first time buyers that DO qualify? What can we do to change the direction?

Post a comment and tell me what you think....where do we go to find the "Hinge Buyer?"

It's News to me...

Today's Arizona Republic had an article, Valley Home Resales Slow. This article is something to ponder. Not the stats, or the fact that the market is "slow", but rather the question, what is the positive spin on this?

If you know me, do business with me, or otherwise were directed to this blog by me, then you most likely focus your real estate career in the Northeast Valley. So when you read articles about the "Valley Market" or the "National Market", you need to remember that our world is a little different. In Scottsdale and surrounding areas we don't share the same issues as other places in the Valley, like Gilbert or Surprise. We don't have new-build communities around every corner. Communities that are dropping prices and offering an insane amount of discounts to buyers, making it extremely difficult to compete with.

We also have the attractions that buyers want: prestigious location, golf communities, proximity to business, airport, shopping, and transportation corridors. When we look at the things that Arizona has to offer that will keep us going, we see that our NE Valley is THE place to be.

So don't let the Republic, or any other news source, get you down. Rise above the negativity, and stay positive. Don't get me wrong, I'm not telling you to ignore facts, or put on those proverbial rose-colored glasses, thereby walking around with your head in the clouds. Quite the opposite. I encourage you to be and stay realistic. Set your expectations as such. Stay informed on what the news reports, especially because this is often the only education on the real estate market that your clients and prospects receive. You need to know what they are learning, so you can sort out fact-or-fiction issues for them. Give them the real scoop, not the sensationalized. As I am always reminding my agents, the reporters' job is NOT to report the news. It's to sell newspapers. And let's face it, sensationalism sells.

Want to stay informed? Contact me to learn more about NATnews, our daily real estate news email blast. It's free, and can keep you informed on the day's news pertaining to real estate in Arizona. Email me at jsemerau@nat.com or by calling me at 602-294-2904.

Until next time...

And the Real Estate Buzz Word of the Week is...

Short Sale. (Ok so that's two words...but who's counting?)

If you've read the real estate headlines lately, then you've heard the term. Everyone is talking about it. It comes on the heels of the last Real Estate Buzz Word, "Foreclosures." But what is it, and why all the attention?

In short (excuse the pun), a short sale occurs when the following conditions apply:

• A homeowner has a lien (aka mortgage or loan) against their house.
• The homeowner cannot make the minimum monthly payment on the loan.
• The home's market value is currently LESS than the balance of the loan, thereby putting the homeowner in a situation of not being able to afford to sell their home.
• The homeowner wishes to avoid foreclosure.
• The homeowner contacts the lien holder (aka bank or lending institution) and arranges for the lien holder to accept LESS than what is owed to payoff the loan in full.

Well, this certainly makes sense if you're the homeowner, right? Who wants to face foreclosure? Ruin their credit? Have the stress of a large payment they can't afford?

Not so fast, Mr. or Mrs. Homeowner. A short sale is not a "get out of jail free" card. There are repercussions, but they are not nearly as severe as those of a foreclosure. You get to avoid having the enormous hit on your credit score that a foreclosure would deliver. However, you will still see a large drop in that credit score. With a foreclosure, you could be looking at an approximate loss of 250 points to your FICO. With a short sale, you might only see a loss of approximately 100 points.

Another negative for the homeowner is the fact that the lender will now deliver a lovely little note to the homeowner, and they will be so kind as to send a copy of that note to the IRS. These little love notes are often referred to as a "1099". But wait, you're thinking, a 1099 is only delivered for income. And you are correct. The IRS often views the forgiven portion of the debt as income. That's right...the homeowner will most likely need to pay taxes on that amount.****2008 Update Note: thanks to the government's involvement, this may not apply. Contact your attorney or CPA for more information on why not!******

Still...this is better than losing your home outright. So for someone facing a foreclosure, this is a very viable option. But why would the lien holder be willing to accept less than the amount owed? What's in it for them?

For one, the lender is in the business of loaning money. They are NOT in the business of owning real estate. So the fact is, the lender does not WANT the house. Second, there are alot of costs for the lender to take a home through the foreclosure process. All in all, most lenders would like to avoid the costs, headaches, and extra work involved with the foreclosure process. And who can blame them? So for the lender, it is often a wise business decision.

So there's a bit of the basics, delivered a bit tongue-in-cheek. But in all seriousness, if you are a real estate agent, you need to be well educated on short sales. Because this "Buzz Word" is not going to go away anytime soon. And you will need to be able to properly advise your clients who may be in a tough financial situation. And it's more common than you may think. What with ARMs adjusting to their higher rates, property values declining in the past couple of years, and homeowners that chose to use their home as an ATM when property values were at their height, you never know when a past client of yours will call you looking for help.

But don't think that just because you've read a blog on short sales means you are fully educated! If you'll be advising your clients, you need to know more. Email me at jacki@jackisemerau.com and I'll get you more information, articles, and resources.

Until next time,

Jacki

Virtually Amazing!

I'm excited about a new marketing tool that we are offering at North American Title Company. In today's market, where listings are abundant and buyers are few and far between, you as an agent need to use all the tools you possibly can to set your listing above the others.

Virtual tours are a great tool to help you accomplish that. Studies have shown that approximately 80% of home buyers begin their search on the internet. On popular consumer-based real estate websites, such as Realtor.com, the listings with virtual tours attached are usually viewed first. Wouldn't you like to make sure your listings were gaining as much exposure as possible to that 80%?

So by adding a virtual tour, you increase the number of internet viewings significantly. And we, like other title companies, have a relationship with a traditional virtual tour company. The company we promote is vi360.com. If that is something that is of interest to you, contact me and I will get you in touch with the right person so that you receive our preferred pricing. They do a great job, and I refer them with confidence.

BUT WAIT.....that's NOT the new tool I was telling you about!

As an alternative, we are now offering what we call "Virtual Commercials". They look like virtual tours, act like virtual tours, and link to sights such as Realtor.com like virtual tours. They are not, however, actually virtual tours!

Want to see an example of what this tool is all about? Visit my website at http://www.northeastvalleyresource.com/ and click on the sidebar "Welcome to Pinnacle Peak". There you will experience a virtual commercial of my North American Title Pinnacle Peak Office located at 8525 E. Pinnacle Peak Rd #115, Scottsdale, AZ 85255.

Here's the exciting part: if you contact me directly at 602-294-2904, I can get you set up on this program with the preferred NATC pricing of just $100/year! And that gives you absolutely unlimited access to create as many virtual commercials as you would like. You will even be able to track how many viewings your commercial receives.

As always, we at North American Title are constantly trying to find new ways to help you become a more successful agent. Because the more successful you become, the more successful you will help us to become. We Take Your Career as Seriously as You Do. More than a tag line, it's a way of life for us at NATC!

So call me at 602-294-2904 to get started on your new virtual commercial program!

Until next time,
Jacki

Quarters, Dimes, and Nickels...

...Or in other words, CHANGE. And I've got some to talk about!

North American Title's Pinnacle Peak branch has some very exciting news! Heidi Gardner has accepted the position of Branch Manager! For those of you that know Heidi, I'm sure you're as excited as I am!

She's been in escrow in the Pinnacle Peak area for over 12 years. Her customer service skills are incredible, and she's just as strong in the technical aspects of escrow. Many of her clients have been top producers in the area for years. And no matter if you are a seasoned agent or a brand new agent, she treats you with the same respect and service. In fact, she treats all our customers the same, even if they are not the agent that directed the deal to us. You can learn more about Heidi by visiting my website at www.NortheastValleyResource.com and clicking on the sidebar "Get to Know Heidi Gardner".

As you know, Cindy Kappus was the previous branch manager at our Pinnacle Peak location. And I have great news about Cindy as well! She is now the branch manager for our Hayden Branch. Cindy is working towards the position of Northeast Valley Escrow Manager, so this move is a step towards her ultimate career goals. She is available to handle your escrows. If you were previously her client at the Pinnacle Peak branch and prefer to stay with her, just let me know! You can still use the PP Branch as your "location"...Cindy will come up for signings with your clients...no problem!

So as you can see...good things are happening at North American Title!

Until next time...

Dancing with the STAARS

If you are a member of the Scottsdale Area Association of Realtors (SAAR) then you may have heard of STAAR Night. This is a stage production that is put on by real estate professionals with talents in the performing arts to benefit the Hutch Fund.

So what's the Hutch Fund? This is a charity set up through SAAR that benefits real estate professionals in crisis. You can learn more about the Hutch Fund by going to my website, http://www.northeastvalleyresource.com/ and clicking on the sidebar "STAAR Night."

OK....so why am I blogging about this? First of all, the Hutch Fund is an amazing charity that I fully support. And it just so happens, I have a background in a particular performing art...dance. More specifically, choreography. It was my major in college, my professional aspiration prior to discovering real estate, and remains my passion. So who knew I might get a chance to use this talent in my current career with a title company? Not me!

Last year was STAAR Night's debut. I was interested but had no idea what to expect. So instead of auditioning, I sat in the audience. What I saw blew me away, and I said to myself, "I've GOT to be a part of this next year."

And so I am! Originally, I just intended to perform in the production. But as luck would have it, last year's choreographer couldn't be involved this year. So I submitted an audition tape of some of my choreography, and here I am! And I have to say, this has been an amazing experience.

Tickets are on sale...you can reach the link through my website or you can go to http://www.saaronline.com/ and link into ticket sales that way. I encourage you to join us for a wonderful and entertaining event on May 1st at the Scottsdale Center for the Arts. If you decide to attend, please send me an email at jsemerau@nat.com and let me know! I'll look for you there!

Until next time...

Best Little Title Company in Arizona

That's right! Arizona Business Journal's Ranking Arizona has ranked North American Title Company number 1! What does this mean for you? This means that when you write North American Title Company on Line 91, you know that you are putting your transaction, your clients, and your paycheck in good hands.

Thank you for voting North American Title your title company of choice.

Until next time...

Boulders Sunset Tour

Tours is one of the services that I provide to agents that has proved to be very valuable. Tonight's tour is at the Boulder's, which is a community you hardly ever have the chance to tour, so I hope to see you there!

My previous tours have been at McDowell Mountain Ranch, Troon North, Lone Mountain Vistas, Cresta Norte, and Camelback Corridor to name a few. These tours have been great for the listing agents that particpated. I've had many tell me that the tours led to showings. That's a great thing! And on the Troon North Tour that I had a couple of weeks ago, I had an agent get a full price offer on his $2.5 million listing within a few days of having it on tour with me! (The two had nothing to do with each other, but all the same...)

For the agents that come through the tour, they have had great benefit in learning inventory while having a great time in the process.

So if you are a listing agent with a particular need, feel free to contact me to see if we can put together a tour for the community that your listing is in. It doesn't always work, but I will look at the possibility. I have certain criteria that the community and listing must meet before I will consider the tour. Call me at 602-294-2904 if you feel that this might be a tool that is of benefit to you.

After tonight's tour at the Boulders, my next upcoming tour will be at Desert Highlands on March 21st. Look for more information to come!

Until Next Time...

Inaugural Blog

So I decided to do it. Blogging...who knew? I've stayed away from it as long as possible (and, if I'm going to be honest, because my company had all blogs blocked from viewing!) But about a week ago I told myself, "if I see one more article on blogging...I'll begin to think there's something to it!" And alas, about 20 minutes ago, Rismedia sent out an email about...you guessed it...blogging in real estate.

I had heard horror stories regarding how long it takes to set up a blog. So instead of overthinking it, I took the Nike approach (Just Do It). And like I said, 20 minutes later, I'm typing this out. How about that?

I'd like to take this first blog to let you know what I intend to blog about. I'm a Marketing Rep for North American Title Company (we prefer the term Business Development Manager, but it's all the same). I specialize in the Northeast Valley in Arizona (Scottsdale, Carefree, Cave Creek, NE Phoenix). And it's my intention to blog about issues as they arise in my arena of the local real estate industry.

Some of my blogs will address technical issues, some will address marketing issues, and some will address the real estate market in general. I will highlight community events, ideas on how they can be used in marketing yourself, and more. (in other words, whatever comes to mind at the time that I'm typing away)

My intended audience is as follows: Real Estate Agents, as well as investors, in the Northeast Valley here in Arizona. If you are reading this blog, and you don't fit that description, then you are forbidden and must vacate the premises immediately. JUST KIDDING!!! Of course you're welcome to play along!

And at any time, please feel free to visit my website at www.NortheastValleyResource.com. There you will find information such as:

• Title and Escrow - what is it, how does it work, and why do you need it.
• Schedule of events - Classes, tours, clinics, seminars, etc.
• Meet my staff - Get to know the escrow professionals that will be taking care of your transactions when you write North American Title on Line 91 of your next contract.
• Important links - Valley information, Building projects, County and governement websites, etc.
• Community Updates - What is going on in the NE Valley, and how can you use that information to grow your business.
• And more!

Until next time....