Turn Tax Hindsight into Financial Foresight

Provided By: realtytimes.com

So, how’s that income tax "make over" going?

A few short weeks ago, you were among the millions moaning "If only I’d…" and agonizing about how much they owed in income tax. Were you also caught up in the last-minute-filing scramble?

Tax time hits us in the face with financial reality.

For too many of us, tax time represents the only time each year we take a close look at our finances. Unfortunately, this is usually on the fly when there’s no time for fixes and forecasts; however,savvy Americans decide it is time to do things differently . They make achievable resolutions to improve their financial health. It’s what happens after the filing deadline that really matters.What have you learned from filing your tax return? Did Uncle Sam get your money while you ended up with debts and dissatisfaction? Do you want to repeat this outcome in April 2014, or take a financial step forward? It’s your choice.The secret to keeping more of what you earn is not a secret. In fact, those who paved the road to financial literacy and financial security have left deep ruts for others to follow. Yes, it can be a bumpy ride, because you are letting go of some expensive bad habits, but the experience can be empowering. Financial improvement takes longer to achieve than one weekend since you are replacing ingrained ineffective habits and biases with a new way of thinking and acting when it comes to money, but results are evident very quickly.Starting points abound, and they all begin with you.The first step does not involve heading to the net via a popular search engine, because the first step is you observing you. You watching what triggers your spending, and alternatively what makes you think twice before you pull out credit cards or click on "BUY NOW" buttons. Record every dollar you spend for at least a week, and you’ll begin to see patterns. Do this for longer, and you’ll reveal relatively easy opportunities to save money and not spend it. Once you know where your weakness lies, assess your advantages. Start simple. Act on what you learn.

• Perhaps you’ve read a financial book or two, or know someone who has.
• Your workplace may offer financial education programs.
• Friends and family have had good and bad experiences to save you repeating mistakes. They can also refer you to professionals who have proven their value.
• Realtytimes.com hosts a wide range of articles, including those in this column Decisions & Communities, that can start you thinking differently about real estate buying, financing, and investing.

Back to turning tax hindsight into financial foresight…Here’s three big reasons to spend time on foresight and making financial progress:

1. What’s your point in working to earn money?If you have no goals beyond the next paycheck, money will slip through your fingers. We support goals that involve property ownership and investing in real estate. What matters to you? It’s easier to work toward something you really want. Divide a big goal like owning your home or paying off your mortgage into manageable projects. Make them small enough that you are aware you’re making progress. Be realistic. Start with a goal you can achieve this week. Then a bigger one for the month of May and on you’ll go. Doing something has a huge advantage over doing nothing, or wishing you had in hindsight.
   
2. Talk to those who know more than you doFrom the day after tax deadline, most accountants and financial advisors have time to talk to prospective clients like you. Discover where tax savings lie and how you can start on the path to financial security. Come to the conversation prepared to clearly and specifically explain your situation. Details matter. If you’re vague or unprepared, how can the professional provide specific, relevant information to get you started?
   
3. Get organizedWhat do you know about your financial strengths and weaknesses? Exactly how much cash do you have in your wallet right now?
   What is the current balance of your principal debit account?
   Exactly what is the outstanding balance of your two highest-interest debts?
   Exactly how much income have you earned this month?
   How much have you saved so far?

How many of these questions can you answer right now? Do you understand the role your financial habits play in the reality behind your answers? If you are unaware of your financial status, how can you create strategies to get you from where you are today to where you want to be?Start by getting your paper and electronic financial records in order. Set up a simple system for recording receipts each week, or at least filing receipts by category, so they can be easily totalled. Set a budget so you know where the money you earn should go every day, week, month…to move you ahead.The forced belt-tightening of the recession has made some aware of where every penny goes, but what will happen once they no longer feel under pressure to manage their money? How will your post-recession financial habits be different from those during the boom that got us all in trouble.Tax time taught you something about you and the way you put the money you earn to work. Act on that insight, and next tax time, you’ll see progress. Ignore that lesson, and hindsight becomes your financial pattern. Where will that lead you?

Published: April 30, 2013

Down payment help isn’t just for first-time home buyers

Provided By: interest.com


Think down payment assistance is only for poor, first-time home buyers? It’s not.
Banks, nonprofits and government agencies all pass out money to middle-income home buyers.
"Most people self-select out of these programs because they don’t see themselves in need," says Marietta Rodriguez, deputy director of National Homeownership Programs and Lending for NeighborWorks, a national network of community development nonprofits.

Assistance programs typically target people who make between 80% and 120% of area median income. That can be a pretty high number.

In Washington, D.C., for example, a single person can earn about $90,000 and still qualify for $20,000 from Wells Fargo’s Neighborhood LIFT program. In Atlanta, a family of four could earn about $80,000 and qualify for $15,000 in LIFT funds (www.wellsfargo.com/mortgage/lift).

Not only do you not have to be poor, you don’t even have to be a first-time home buyer to use Neighborhood LIFT; you just have to sell your current home first.
Assistance can come in the form of a gift, a second mortgage or a loan (with or without interest) that’s forgiven over time.

The LIFT money is a zero-interest loan, but 20% of the loan is forgiven each year as long as you don’t move out, sell your home or refinance into a higher-rate loan.
You’ll find assistance programs offered by other sponsors, too.
"Some municipalities are still using Community Development Block Grant or Home funds (via the U.S. Department of Housing and Urban Development)," Rodriguez says. "Sometimes employers make down payment assistance pools available, there is philanthropic money, and many of our NeighborWorks nonprofits are also community development financial institutions, and that opens up a window of capital they can use."

The U.S. Department of Agriculture offers a loan program in rural areas, and the Federal Home Loan Banks offer help putting money down and paying for closing costs.

Check for the strings that often come attached, such as restrictions on where you can buy a home or a requirement that you work for a particular employer (like a public school system). Many programs force you to attend homeownership classes to learn budgeting and home maintenance skills.

Even with assistance, you’ll still have to qualify for a mortgage based on your employment history, income, debts and credit rating.

Rodriguez recommends consumers start their home search by consulting a homeownership counselor even before choosing a real estate agent or lender.

"Your Realtor and your lender have a business proposition," Rodriguez says. "That’s why they’re in business. So does a nonprofit, but they’re less about selling you a certain thing and more about facilitating a sustainable purchase that makes sense for the home buyer."

Get started with our guide on how large your down payment will need to be when purchasing a home.

Mortgage interest rates tick up during first quarter

Provided By: interest.com


Home loans are still quite a bargain. Just not the exceptional bargain they were late last year.
The average cost of 30-year, fixed-rate mortgages, the most popular way to finance a home, is up a quarter of a point since reaching a record low in early December.
The average cost of a 15-year mortgage, which is very popular with borrowers looking to refinance a home, is about a tenth of a percent more than last fall.
Have mortgage interest rates bottomed out?
It's too soon to say. But here's what we do know.

Most mortgages are sold to investors through two government-owned companies called Fannie Mae and Freddie Mac. Because of that, mortgage rates usually rise and fall in sync with the returns on long-term Treasury bills.

The Federal Reserve remains committed to holding long-term interest rates at historic lows until our lethargic economy is growing faster and creating more jobs.
But investors seem to be shaking the bunker mentality of the past few years that had them piling into safe assets such as Treasuries no matter how pitiful the returns might be.
Money is flowing back into stocks, which is why the Dow Jones Industrial Average and S&P 500 ended the first quarter at record highs.

The return on 10-year Treasury bonds fell to a record low of 1.38% in July, then rose to surpass 2% for the first time in nine months in late January, before falling back to end the first quarter at 1.85%.
What does this tell us about mortgage rates as the spring and summer unfold?
The Fed will be able to hold interest rates down, put probably won't be able to replicate the record lows we saw in late 2012.


Savvy borrowers with decent credit can expect to pay a quarter to half of a point less than these average rates.

Search our extensive database of the best interest rates offered by hundreds of lenders for better-than-average deals.

Where you live will have a lot to do with how much you pay.
The cheapest 30-year loans are in Kansas City (3.64%), closely followed by Detroit (3.65%) and Phoenix (3.67%).

The most expensive loans are in Tampa, where the average rate is nearly three-quarters of a point higher at 4.35% and Denver (3.97%).

Click here to find the average rates for all 25 major cities we track. You’ll find the data for 30- and 15-year fixed-rate loans and 5/1 adjustable-rate mortgages (ARMs).

Rates this low mean the payments for principal and interest for the average 30-year loan are a very affordable $464 per month for every $100,000 borrowed.

Use our mortgage calculator to see what your monthly principal and interest payments would be on any fixed-rate loan.


How long we'll enjoy such low rates depends on the Federal Reserve.
In September, the Fed’s policy-making committee announced plans to buy $40 billion of mortgage debt a month for the foreseeable future.

When the Fed buys bonds backed by thousands of home loans, it essentially floods the market with money, pushing down the cost of financing a home.

Although the Fed has purchased $2 trillion dollars’ worth of government and government-backed mortgage debt since the financial crisis hit in 2008, it’s never had an open-ended commitment like this.

It always spelled out exactly how much it was going to spend and when those purchases would take place.
At the December meeting of the Open Markets Committee, the governors appeared to be evenly split on whether the Fed would continue buying bonds until the end of 2013 or stop sooner than that.

Minutes of their January meeting said "many" members are now concerned at the higher-than-expected pace of purchases — about $85 billion a month — and the amount of debt the bank has accumulated — more than $3 trillion.

Those records say an "ongoing evaluation of the efficacy, costs and risks of asset purchases might well lead the committee to taper or end its purchases before it judged that a substantial improvement in the outlook for the labor market had occurred."

That's the first indication that the committee could be wavering on its September commitment — and something for anyone planning to buy or refinance later this year must watch.
When the Fed stops buying, you'll almost certainly pay more for a mortgage.

Most Americans Want Eco-Friendly Homes – And Would Pay More For Them

Provided By: Realtor.com

Eco-friendly homes have gone mainstream: most people would trade in their swimming pools for Energy Star appliances and CFL lighting, according to our survey of realtor.com users.

The desire to be eco-friendly has increased dramatically in recent years. We may commemorate Earth Day in April but many people make a concerted effort to go green in large or small ways all year long. And now, in addition to hybrid cars, biodegradable packaging, and recycling efforts, our users are telling us that they are also increasingly eco-minded when it comes to their homes.

Living Green:
More than 30% of the respondents currently live in an eco-friendly residence and nearly 85% of those we surveyed said they would like to own an eco-friendly home. Eco-friendly residences often use green building materials and low-VOC paint and have other features such as high-efficiency water heaters, energy-conserving insulation, and rainwater collection.

Those who don’t live in an eco-friendly residence are still doing their part to go green: 80% have energy-efficient appliances while almost 75% have energy-efficient lighting. It seems that there is plenty of room to grow when it comes to solar power; just 5% of our respondents indicated that they have solar panels.
It appears that most of us are paying attention to environmental concerns, with the majority of people saying they have been aware of the need for eco-friendly homes for some time. Only 7% of our survey respondents said that the eco-friendly became a concern for them in the past year, with the bulk of respondents indicating that their interest in going green began at least several years ago.

Green Homes, Real Value:
How important is living in a green home to today’s buyer? Nearly 40% of survey respondents told us they would be willing to sacrifice square footage for a more eco-friendly residence. Smaller homes are often greener because they consume less energy and materials. In addition to less space, potential buyers would also be willing to sacrifice other home amenities. A full three quarters of our respondents (75%) would give up the pleasure of their own pool, while 74% would say farewell to the game room.
Their motives aren’t purely altruistic: survey respondents also indicated that they are aware that eco-friendly features have real value. A total of 70% of respondents believe that eco-friendly features add monetary value to a residence, while 68% would pay more money for an eco-friendly residence.
Eco-friendly homes aren’t just good for the environment; they can also be good for our wallets. No wonder then that energy efficiency features were very desirable for our respondents. Energy-efficient air conditioning topped the list at 86% of those surveyed opting for it. Also, 85% wanted energy-efficient appliances, 79% were interested in energy-efficient lighting, and 76% had their heart set on water-conserving appliances.

The $1,382 reason to scrutinize your closing statement

Provided By: interest.com

I've bought and sold enough houses to expect my closing statement to show all kinds of charges, most of which make little sense to me. There is, for example, $9.50 for flood data services and $77 for tax services. (Whose taxes? What am I getting for these tax services? Nobody says.)
I've accepted these charges as part of doing business.
When my husband, Gary, and I purchased our current home through a short sale, we came to the closing table agreeing that, unless something was way out of line, we'd just sign the document and get our house. With luck, this is the last piece of real estate we will ever buy.
We signed, and we signed. I pointed out that I wrote a book a lot lighter than this sheaf of paper we were signing.
No, we did not read every word like I tell people to do. That would have taken all night.We did read every line of the settlement statement — the summary of every dollar amount that affects the transaction. It's a good thing we did.

The first item that stood out was a $1,000 charge for the septic pump certification fee. We had agreed to pay the septic fee as part of the deal.
However, we had already paid it on our credit card. Gary pointed that out to the loan officer, who agreed that we should be refunded that amount. (We since have received a refund.)
Next, we read a line called "Buyer credit to seller for tax proration" for $1,382.52.
We asked the loan officer what that was, and she searched until she found an email from the short sale negotiator.

It said that Bank of America had agreed to the sale only if it received a certain dollar amount, and because the closing date had been extended, the property taxes that had accrued in the meantime were a problem. The negotiator suggested in the email the buyers should pay that, because it was "their fault" that the closing was delayed.

Because there was no explanation in the closing packet about the "buyer credit to seller," we couldn't close until someone hurriedly typed up an addendum and placed it before us for signing.
We were told that if we didn't sign, we would lose the house.
We already had quite an investment of time and money, including the $1,000 septic fee, so we signed.
Several people, including our loan officer, advised us that we would be able to get that money back later because it was illegal for them to add it at the closing table.

So far, however, we haven't had any luck.
Moral of the story: Read the closing statement, and make sure you understand every line.
Several people work on your closing file, and not all of them are familiar with what's been paid or by whom.
You may be able to resolve some surprise charges but not others, but it's always better to at least know where your money went than to close your eyes and sign.

Jumbo Loans Heating Up Along With The Luxury Market

Provided By: Realtor.com

Big, expensive luxury homes come with big, expensive mortgages, and lenders have developed large specialized loans – termed jumbo loans - so that borrowers can have access to higher loan limits. As the luxury home market continues to rise these jumbo loans are heating up the marketplace again. According to the National Association of Realtors, sales of properties worth between $750,000 and $1 million are up 38.7 percent over a year ago and $1 million-plus property sales are up 25.7 percent.

The Narrowing Spread Between Conforming And Jumbo Rates
The housing crisis took a hit out of the jumbo loans market and many lenders stopped making these types of loans. There is renewed interest in these loans partially due to the narrowing of the spread between jumbo rates and traditional conforming mortgage rates. As CNBC’s Diana Olick reports, that spread was as wide as 0.875 percent last summer. The most recent numbers from the Mortgage Bankers Association show the average contract rate for a 30-year fixed conforming mortgage last week was at 3.76 percent with points at 0.43 while the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances was at 3.85 percent with points at 0.42 . In some cases the rates can be nearly the same.
Limits for jumbo loans have changed over time. In 2011, the maximum conforming loan limits for jumbo loan mortgages decreased in many counties around the U.S. Limits had been raised temporarily in 2008 to give a boost to the housing market and were extended several times during that period. When the conforming limits decrease, buyers are required to take out larger jumbo loans for same total home purchase price.
More lenders are getting back into the jumbo lending market which provides increased flexibility for those applying for a loan. “There are just more options and more programs,” says Keith Lewis, of Lewis Financial, a jumbo mortgage specialist based in Michigan. “In my market I’m seeing refinancing on jumbo loans because housing prices have come back. Also the rapid appreciation in prices in our local market has meant that existing home owners can move up into a larger house that better suits their needs.”

More Money, More Scrutiny
Because there is so much money involved, jumbo loans have more stringent underwriting requirements and only the most qualified of borrowers will generally be approved. This is one of the reasons that the rates are currently so favorable. Loans above certain dollar amounts (the conforming loan limit) must be secured with a jumbo mortgage which tends to carry a higher interest rate and more points. The general loan limits for 2013 remain unchanged from 2012, sitting at $417,000 for a 1-unit property in the continental U.S. Limits can go up as high as $625,500 in more expensive areas. Most banks publish jumbo mortgage rates which change regularly.

Depending on your financial status this could be a golden year to try for a jumbo loan. Standards may get more restrictive in 2014 when rules from the Consumer Financial Protection Bureau take effect. According to a recent NBC News story on jumbo loans, the CFPB rules will doom interest-only mortgages which were roughly 10 percent of the jumbo market.

For borrowers interested in jumbo loans to secure that luxury home of their dreams there are often a lot of hoops to jump through. Borrowers have to prove a high income, excellent credit score and also be able to put down large down payment. Lenders of jumbo mortgages need to make sure borrowers are a good risk and debt-to-income ratio is also scrutinized. As a general rule, your monthly mortgage payment on a jumbo loan should not exceed 38 percent of your pre-tax income.

Characteristics of a Good Realtor

Provided By: Trulia.com


My history professor always said, “There are three necessities in life: Food, Clothing, and Shelter.”
To obtain any of these three require an individual’s tastes and preferences. The third necessity - Shelter - or, more aptly stated - a home - takes more than just knowing your likes and dislikes.

If there were a one-size-fits-all approach to buying a home we could go shopping for one at Walmart. Alas, it is not quite that easy and the process can be tedious and unpredictable. Having someone you can trust to guide you through the process is important. Generally, the average home buyer starts their search for a home online and then looks to family or friends for a referral to a real estate agent or Realtor (an agent that belongs to the National Association of Realtors).

This is the important part, because the real estate agent is the person to bring all parties together, facilitate important information, and make the process run smoothly. In a perfect world your agent would find you a house (or list and sell your home) with ease and minimal stress and everyone would show up to the closing table with smiling faces and a good nights sleep. However, we live in the real world and it’s imperative that your agent is accessible and can have the knowledge and foresight to anticipate potential issues and then help navigate you through the process to bring you to that desired “happy ending.”
Some qualities to look for when choosing your agent:

Accessibility: How easily is it to get ahold of your agent? Do they work another job full time and real estate is just a part time gig? Having an agent with mobile email, such as a Blackberry or other smartphone, almost guarantees that the agent will be in-the-know regarding your communication and needs, even if they can’t respond immediately.
Reliability: Your real estate agent is your guide and is there to support you through the process by interpreting and advising you on situations that are unclear or unfamiliar. As your guide, your agent should promptly respond to your calls or emails and you shouldn’t have to worry whether they’ll get back to you. Follow up and follow through are important characteristics to possess. If you have to wait more than half a day for a response (and then the dreaded excuse), then you’re probably waiting too long.
Communication: Even if this isn’t your first home purchase (or sale), an agent should explain the process and what comes next so that your expectations can be set. Should your expectations go unmet, your agent will hopefully be in communication beforehand to explain why an issue or deadline may not be met and what can be done to fix it. Also, a real estate agent should keep you informed of their whereabouts - as when they may take a weekend away or may have a day of training and not be easily accessible to communicate via email or phone.
Experience and Foresight: The longer your agent has been in the industry the more experience they will have to be be able to predict and anticipate various circumstances and situations. This is a very important factor. If your agent can foresee an issue with an appraisal or detect that another party is not being honest then they can save you the frustration and the emotional stress that comes when dealing with last minute issues.
Trust and Honesty: It’s great when an agent is in-the-know and can almost literally predict the future of your transaction, but if they’re not honest and upfront with you then they’re worthless. If you have to doubt what you’re being told then you may want to reconsider beginning a real estate relationship with this particular agent. The scary thing is that this could be hard to detect up front if the real estate agent gives you a good sales pitch and promises you the world. Be skeptical and have them prove they are working for you and have your interests at heart. The sooner you know your agent is trustworthy and painfully honest, the better. You don’t want to be half-way through the process of buying or selling a house and realize your agent is treating you like a paycheck now that they have you sold and will ultimately drop you for the next hot prospect.
You will know when you find a good real estate agent. They’ll work hard for you up front, let you know what they’re doing on your behalf, communicate with you frequently to let you know of progress, and at the end of the day you can breath a sigh of relief because you can trust that they will be reliable and will be there for you until the end. Generally you will find that someone is trustworthy and honest when they demonstrate up front that they are reliable, accessible, and communicate frequently with you to let you know what comes next.
Working with a Realtor is a relationship. When both parties understand each other, their goals, and their general way of communicating, then the process should be smooth. The mechanics of finding you some shelter now becomes a journey to find you a dream home and … who knows … you may both become life-long friends. (You can’t find that at Walmart).

If you’re looking for an agent that possesses all of the above characteristics, please contact the Keller Williams Office @ 972-772-7000

15 Tips for Career Networking at Real Estate Industry Events

Provided By: Select Leaders

If the three keys to real estate value are location, location, location, then surely the three keys to career advancement or securing a great new position are networking, networking, networking. Once you've covered the obvious - your rolodex, your school chums, and your golf connections - where else can you turn to expand your web of connections? Too often, professionals pondering a career change ignore or fail to fully exploit the opportunities offered by their industry association meetings. For the properly prepared networker attending industry meetings can be one of the most efficient and cost-effective parts of a career development strategy. Real Estate industry events offer numerous opportunities for professional development and targeted networking.

Let's face it: many professionals approach large gatherings with some trepidation. Even the most gregarious among us can find a dimly-lit, room full of chatter and cocktail-toting strangers a bit daunting. Although most organizations hold their major conventions in the fall, smaller meetings throughout the year can also be great for networking, as they are often more intimate and topical. Whether you are contemplating attending your first association meeting or are a veteran of the rubber chicken circuit, chances are you could be more strategic about using those events for effective career-development networking. The following 15 tips should help you get more out of every meeting you attend:

Networking Tip #1:

Plan your yearly calendar of meetings strategically. Meetings are valuable tools in the hands of a strategic networker, and wasted opportunities in the hands of a passive attendee. If you want to improve your industry knowledge, advance your career within your sector or explore a career change into a different area of the real estate industry, meeting attendance deserves to be part of your strategy. Meetings are announced months in advance. Plan to visit our web site frequently and update your personal planning calendar at least quarterly.

Networking Tip #2:

Make meetings a part of your professional development plan. Many real estate organizations actively encourage their employees to attend certain industry events. Try to incorporate meeting attendance into the professional development plan approved by your company. Even if you cannot be reimbursed for meeting fees and expenses, you may be able to obtain approval for the out-of-office time. Money and time spent attending meetings can be an important career

Networking Tip #3:

Think geography. Sort your personal contact list geographically to identify anyone in or near the meeting's host city. About a month before the meeting, contact any local prospects you hope to meet but wouldn't necessarily travel specially to see, using the upcoming event as an excuse. Even if a meeting cannot be arranged, a useful conversation may result. Consider adding an extra day or partial day to your travel plans to schedule meetings with local contacts or prospects who are not attending the meeting.

Networking Tip #4:

Register early. This will ensure that your own contact information appears in the printed conference registry so others can reach you both during and after the meetings. It will also ensure that you get a proper badge instead of a last-minute, hand written one that is difficult to read and brands you as a latecomer!

Networking Tip #5:

Stay at the convention hotel or close by. This is yet another reason to register early, as adjacent hotel rooms can fill up quickly. You can stretch your effective hallway time enormously if your accommodation is conveniently located near the meeting venue.

Networking Tip #6:

Schedule meetings before you go. If someone you want to see is likely to be at the conference, contact him or her in advance to set up a meeting. Often, you can arrange a 15-minute chat or a cup of coffee during an industry gathering with someone who lives 3,000 miles away, whereas neither of you would normally travel the distance to get together otherwise. Those 15 minutes could change your life.

Networking Tip #7:

Display your badge prominently. On your right lapel, please, so that a person you are greeting can see your face and name in a single glance. When you shake hands, your right shoulder naturally comes forward. If your badge is on your left lapel, you are making it harder for the other person to see it. Necklace-style badges, often favored by women, have their shortcomings. Why encourage someone to stare at your navel in order to learn your name? If you think of your badge as jewelry and leave the brooch and scarf at home, you may do better at networking events.

Networking Tip #8:

Do your on-site homework. Take time when you first arrive to review the conference registry and agenda and see who is scheduled to attend and speak. This will help refresh your memory on names and faces of people you already know. Make a list (actual or mental) of everyone you want to meet and review your progress against it periodically.

Networking Tip #9:

Allow plenty of hallway time. Much of the real work of an industry meeting is done between formal sessions. If you spend too much time in the corner talking on your cell phone, you may look impressively busy but miss the opportunity for a brief conversation or business card exchange with someone you need to meet. One tried and true strategy is to arrive early at a major event (keynote speaker, kickoff luncheon) and simply stand near the entrance. As people stream past you into the hall, you are bound to see someone you want to greet. Just be sure you have secured your own seat inside first.

Networking Tip #10:

Choose your breakout and workshop sessions strategically. If your boss is a speaker at one session or the topic is of central importance to your current position, perhaps you will feel obligated to attend that workshop. When you have a choice, however, think about your professional advancement when you choose among conference offerings. The speaker may be more important to you than the topic under discussion. If you want to network your way to a particular person, being a member of his/her audience is a great way to start.

Networking Tip #11:

Speak with the speakers. Nobody needs a formal introduction, even to the CEO of the largest REIT or a legendary developer, if that person is a speaker or panelist. Don't feel intimidated about approaching the speaker afterwards to ask a question or have a brief chat, even if the speaker is surrounded by similarly-intentioned audience members. Often this post-session huddle is more interesting than the presentation and experiencing it gives you one more thing in common with the speaker and other audience members who might become great contacts for you.

Networking Tip #12:

Learn all you can. Real estate industry meetings offer great opportunities to gain an introduction to new sectors, fields or disciplines. Let your curiosity be your guide here. Research shows that real estate leaders and hiring managers prefer well-rounded, multi-faceted professionals. The broader your knowledge, the more interesting you will be as a candidate and as a colleague.

Networking Tip #13:

Network during leisure activities. If you can include any recreational activity in your meeting itinerary - golf outing, mobile workshop, cultural side trip, dinner at a local rib joint - you will have a chance to meet people outside your normal sphere, and also to expand and deepen your relationship with existing contacts. Successful networkers know that life-changing opportunities often come from the most unlikely sources. And remember that the longest time one is able to spend with another at a convention is often at a breakfast or luncheon. Catch up with important contacts at meals and make a point to sit with them. Some seasoned networkers purposely join a table of total strangers just to see if anything interesting comes of it.

Networking Tip #14:

Follow up with calls, emails or letters. Too often, professionals return from meetings and become mired immediately in the work that accumulated in their absence. Take the time, on the return flight perhaps, to create your follow-up strategy. If a panelist impressed you, send a letter commending the presentation and introduce yourself. If you had a preliminary meeting with an important contact, or prospective future employer or colleague, send a follow-up communication with more information about you, your company or your resume, if appropriate.

Networking Tip #15:

Add your new contacts to your personal database immediately. When you accept someone's card or make an important connection, try to take a minute soon thereafter to note anything you need to remember about that person, what you discussed, who introduced you or what you promised to send as a follow-up. It is often hard to recall these details, if you wait too long. As soon as possible after the event, turn your networking efforts into a usable database of new valuable contacts.

8 smart moves to score the best possible mortgage : How to grab a great home loan

Provided By: interest.com
A great home loan can save you thousands of dollars over the life of your mortgage.
All it takes to land one is a little planning, plus some knowledge about the application process.
With this information, you'll score a house you know you can afford, discounted closing costs and a mortgage rate that will make you the envy of the neighborhood.
You might even get the seller to throw in some money to sweeten the deal.

Of course, you'll need to address the major factors that could damage your chances for mortgage approval before a lender ever sees your application.

But if you follow these 8 smart moves, you'll put yourself in position to land the best possible home loan.


A good credit score can lead the way to lower mortgage rates and more choices for loans. Lenders offer the best rates to borrowers with credit scores higher than 760.

The Fair Isaac Corporation calculates your FICO credit score based on the information in your credit reports from the three major credit bureaus. Its website (www.myfico.com) includes a table that shows how credit scores affect mortgage rates.

Credit reports often include wrong or outdated information about your credit or payment history, and those errors could lower your credit score.

That's why you should check the information kept by all three of the major credit-reporting bureaus before you apply for a loan.

To get a free credit report from Experian, TransUnion and Equifax, go to AnnualCreditReport.com.
Each report shows how to correct mistakes or submit an explanation for legitimate black marks that appear on the report.


You've probably spent months looking for the perfect home, so why not spend a few hours looking for the cheapest possible mortgage rate?

Lenders offer a surprisingly wide range of rates and fees. Finding the right loan can reduce your payments by hundreds of dollars a month and save hundreds or even thousands of dollars on up-front fees.
Our database of the best mortgage rates from scores of lenders can help you get a sense of what loans cost now.

Know that mortgage rates are about as cheap as they've ever been. So even if you score an average rate, you're getting a good deal.
Experts believe interest rates will remain below 4% on 30-year, fixed-rate home loans for most of 2013.
Even if they finish the year above 4%, they'll still be at historical lows.


It's easy to underestimate the cost of owning a home.
In addition to your mortgage payment, you'll pay property taxes, homeowners insurance, utilities, maintenance costs and possibly condo or association fees.

Use this mortgage calculator to determine how much you can afford to borrow based on your monthly income and expenses.

Add that to the amount you've set aside for a down payment, and you'll know how much you can spend on a home.

Remember, your housing costs -- including principal, interest, taxes, assessments and any other fees -- shouldn't exceed 28% of your gross or pretax income.


Banks and mortgage companies reject about half of all borrowers because they don't meet stricter demands for better credit scores, higher incomes and fewer debts.
Asking to be preapproved for a mortgage is a way to find out where you stand.

You fill out an application that asks how much you make, how much you've saved and how much you owe on everything from cars to school loans to credit cards.
The lender evaluates that information, checks your credit reports and credit scores, and replies with a letter that says you can qualify for a mortgage and how much it's willing to loan.

The process is usually free, and being preapproved boosts your credibility with real estate agents and sellers who don't want to waste their time on buyers who may not be able to get financing.
Here's our step-by-step advice on how to get preapproved.


Getting the Federal Housing Administration to guarantee your loan can be a boon for buyers having a tough time obtaining a mortgage.
You can obtain an FHA loan even if you have a smaller down payment, lower credit scores and more debt than banks and mortgage companies usually demand.

In fact, an FHA mortgage requires just a 3.5% down payment -- that's $3,500 for every $100,000 you borrow. If your FICO credit score is below 580, you'll have to come with a 10% down payment.

Most non-FHA loans require a down payment of at least 5% and often as much as 20% of the purchase price.

Rules have changed so you can borrow more money with an FHA loan than in the past.


Mortgages come with a bewildering and expensive array of expenses: loan origination fees, administrative fees, title insurance, settlement charges and so on.
You can save big by negotiating reduced fees with your lender or asking the seller to pay some of them for you.

Other ways you can save money: Pick your own surveyors, appraisers, insurers and inspection services rather than relying on the those recommended by your lender; close near the end of the month to save on prepaid interest; and make sure the costs on your Good Faith Estimate (GFE) and the settlement papers match up.

In all, those fees you'll pay once your deal is finalized can add 3% to 6% to the price of your home, depending on where you live.


Paying discount points on your mortgage is like prepaying part of the interest on your loan. You pay money up front in exchange for a lower interest rate for the life of the loan.

One point is equal to 1% of your loan. So if you're borrowing $150,000, a point would cost $1,500.
Each point you buy will knock one-eighth to one-quarter of a percentage point off your mortgage rate, which is less than points would buy a few years ago.

Buying down your interest rate makes sense only if you have extra cash available and you're likely to stay in your home long enough to recoup the up-front cost.
After all, it could take years to break even.

Our mortgage points calculator allows you to decide whether you're better off paying points to lower your interest rate or adding that money to your down payment.


One way to lower the cost of your home loan at no cost to yourself is to ask the sellers to pay the points on your mortgage.
You get a lower monthly payment and need less income to qualify for the mortgage.
Paying your points can also cost sellers less than reducing the price of their home.

Say you want to buy a $375,000 home with 20% down. A $300,000 30-year, fixed-rate mortgage at 4% means a monthly payment of $1,432.

A 5% sales price reduction costs the seller $18,750. The loan amount drops to $285,000, which decreases your monthly payment to $1,361. You'll save save $71 each month on your payment.

Paying three discount points on your mortgage costs the seller only $12,000. Your loan amount is still $300,000, but your rate could drop to 3.25%. Now your monthly payment is $1,306, a savings of $126 from the original deal.

Fix the Funnel: How Paul Chiolo Captures, Tracks and Closes More Leads

Provided By KW Blog

In real estate, lead tracking and follow-up can improve efficiency and increase the bottom line. But when you add team members into the mix, making sure every lead is accounted for gets more complicated. Paul Chiolo of Keller Williams Oceanside Realty has mastered the process. But it took time and some tweaking to get the combination of people, process and lead flow perfect.

Chiolo knew he needed a new lead tracking system after he landed a developer contract to list condo units at The Grande at Diamond Beach, a community of 125 luxury beachfront residences in New Jersey.

Though the 25-year veteran had already successfully worked with many developers and high-rise condos, generating, converting and servicing leads for another $180 million worth of listings meant sweeping changes.

“The volume we were seeing demanded a foolproof tracking system,” Chiolo recalls. “Our developers demanded it, and implementing it stretched our team. We had to remove every limiting belief that says a small team can’t intimately handle a massive volume of Web leads, walk-ins and phone calls.” Using the FAST Leads System from The Millionaire Real Estate Agent, Chiolo and his team dramatically improved their lead conversion process while reducing the redundancy in their business operations.

The FAST Lead System at Defined

FAST is an acronym for Funnel, Assign, Source and Track. In a nutshell, leads are funneled into a single point of entry and then assigned to appropriate team members. Next, leads are sourced in order to calculate the return on investment for various marketing and prospecting activities. Finally, leads are tracked in order to make sure customers are properly serviced and converted into clients.

It’s a great theory, though putting it into practice was challenging. Chiolo says the biggest issue in the beginning was information duplication from tracker to tracker and from report to report. That left Kimberly Bailey, a broker associate and sales team leader at Keller Williams Oceanside Realty, handcuffed to a computer, filling out redundant trackers and lead forms.

The two did some digging and discovered that some of the information they were entering was not only duplicative, it was irrelevant to the success of a project. So, the team boiled down the tracker reports to just the necessary facts, which drove up production on both the residential and commercial arms.

“We were trying to please our developers and other clients but we weren’t communicating well internally,” Chiolo admits. “Once we gained the respect of our clients and showed them we had a better way to track leads that would allow us to spend more time selling their units, we were able to reduce multiple trackers to a more comprehensive one. That helped us have a focused daily call – and that call has become our main tool.”

The FAST Lead System in Action

At 9 a.m., the team – Chiolo, Bailey, buyer specialists, a closing processor and marketing rep – joins a daily call. The Monday call lasts 30 minutes. Tuesday through Friday calls run about 15 minutes, though it wasn’t always that way. In the beginning the calls took up to 90 minutes a day, which drained the front line buyer agent’s productivity.

During the call, the team discusses the tracker report. Agents identify hot prospects, discuss any client objections and then develop an action plan to overcome them. The buyer specialist and closing processor discuss all pending closings, drilling down into any financing issues that need to be resolved. And the marketing rep discusses e-mail blasts, message goals and analytics.

“If Mr. and Mrs. Smith are looking at 123 Main Street, what’s happening?” Chiolo asks in an example of the tracker call discussions. “They are torn between that house and one on Baker Avenue. What’s it going to take to get them to sign a contract? If they are checking with lenders, who are the lenders? That’s a hot lead that we’ll discuss the next day until it closes.”

With more than 15,000 leads coming in on a single project, the team has to keep it tight – no chitchat about the kids or weekend golf – to the point that every customer is labeled for a streamlined discussion. Chiolo figures without this system in place, there would be “complete internal disaster” and the risk of losing a project or disillusioning the team.

The FAST Lead System Requires Accountability

In 2012, the team achieved $78.6 million in closed sales volume. Chiolo says there was no possible way they could have reached those heights without the tracker system. “It wasn’t easy to get everyone on board,” he says.

“Agents dreaded the calls mostly because it was foreign to them. Hour-and-a-half daily calls are like a form of torture to a real estate agent,” Chiolo says. “But being held accountable did magical things for our team. It swept away any excuses and made our team shine. It made them realize they have nowhere to hide and pushed them to perform at levels they didn’t think they could.”

Going back to the example of the homeowner, Chiolo explains what he means. “If Mr. Smith is headed to the bank to talk about financing the home on 123 Main Street on Friday morning, the agent should follow up Friday afternoon. But in the real world – or in a world without a tracker system – that doesn’t always happen. The agent forgets because he’s busy chasing the next lead or handling a closing. The tracker equips the team lead to question the agent about Mr. Smith’s bank appointment. The agent knows he’s accountable and comes to the daily call with answers.

“Salespeople don’t always realize the value of accountablity,” Bailey says. “We’re independent agents. So taking it from A to Z with the accountability tracker was, of course, a little scary at first. But once agents start to see how much it actually benefits them in the long run – to have someone pushing them and encouraging them to follow up so they don’t drop the ball – they embrace it.”

Moving Forward When You Don't Land a Sale

Provided By Realty Times

One of the most challenging aspects of any sales job is rejection. Rejection becomes more damaging the more we have invested in the prospect. Rejection on an initial call is easier to take than rejection after you have prepared and researched for your presentation, made your presentation, sent additional value to the prospect after the presentation if you didn't get the contract signed that night. Most salespeople are highly optimistic when they have taken all of these steps in the sales process. Some salespeople are counting the sale as made at this stage, and they experience the ultimate rejection when they hear the word no.

I believe there is a mindset that each salesperson needs to adopt to achieve long-term success in sales. I describe it as not being attached to the outcome. Not being attached to the outcome allows you to better handle the times when you don't land the sale. Not getting the sale happens to every salesperson. The question isn't what if you don't land the sale; the question is when and what do you do then? How will you respond?

Being more focused on doing the steps in terms of practicing your skills, preparing for the call, building and delivering great openings, delivering dynamic presentations, overcoming objections, and effectively closing is more important than making one sale. Perfecting your skills, mindset, confidence, conviction, product knowledge, and questioning will lead to countless sales, rather than one sale. Being unattached to the outcome allows you to scream the four letter word of sales and mean it. The four letter word being... NEXT!

When a prospect informs you that you did not get their order, you want to avoid the typical mistakes that most salespeople make at this stage. The first mistake is reloading their sales pitch. They figure that the prospect didn't hear their sales presentation well, or they would be saying yes. So, they reload the features and benefits and try to throw the Hail Mary pass of sales, hoping for a completion. It takes a full court press in selling mode to try to change the prospect's mind and make a sale. This type of approach shows little respect for the prospect, yourself, and the sales process. It smacks of desperation and a focus centered on your commission earned. The second mistake often made by salespeople is the silent treatment. The salesperson shows a little of their emotions, frustration, and disappointment publicly or vocally to the prospect. That is followed by the obligatory "fine".

Being in sales for more than twenty years has taught me a lot about this. The truth is, however, I learned what the real meaning of fine is after being married for twenty years now. When my wife, Joan, uses the word fine, I can assure you that whatever I said or did not say, did or did not do is most assuredly not FINE!

The third type of mistake is the retaliatory salesperson. Their approach is to go negative on the agent or company the prospect just selected to do business with instead of you. All this does is cement the prospect's resolve that they made the right choice. If done with too much aggression, it will ensure you never do business with this prospect.

When you don't land the sale, there is a seven-step process to end this stage of the relationship with dignity. The steps are discussed here in detail to help you feel better, ease concern on your prospect's part, and create opportunities and openings for the future.

1. Listen intently

We can secure additional valuable information and sales opportunities even in the face of defeat. Some of your prospects will realize all the hard work you expended in preparation, communication, and presentation. When you have a prospect who recognizes this, you have a significant opportunity to learn. You will learn more from your defeats than from your victories if you are willing to take the heat of exploration.

Ask permission to ask a few questions, so you will be able to do a better job in the future. Most people will respect you for your willingness to look at this situation as a learning opportunity. Then ask some of these questions:

• Where did we fall short in securing your business?
• Was it anything that I personally said or did that influenced the sale away to XYZ Company?
• If you were me, what would you have done differently?
• Do you see an opportunity where we might be able to work together again in the future? What would that be?
• Is there anything that I can do for you?

The more information you can secure about your performance, your company's performance, your services, how the prospect makes decisions, and what they might need in the future, the more you will be able to invest this no sale situation in the future for your career, company, and future dealings with this prospect.

2. Convey disappointment professionally

I believe that it's advantageous to express disappointment constructively. I am not talking about whining to them. To tell them that you are disappointed that you didn't earn their business or that you won't be working together is valid. If done well, it can convey a level of caring and commitment to your company and prospects that is admirable. You must have grace in this step, or you can sound too much like a toddler wanting something and threatening a tantrum if you don't get it.

3. Wish them well

Be encouraging about their choice. Be positive about the other company and salesperson. That is easier to say than do, especially if you have strong conviction about your service. The truth is all salespeople should believe they are the best and what they are selling is the best, as well.

If you wish them well, it still leaves the door open for future business, or if the company selected doesn't perform, you still might get a call back. The ultimate in this approach is to tell the customer they have made a good selection, and XYZ Company will do a good job for them. It might be hard to many of you to squeeze a compliment of another agent or company out of your mouth, but it's the pinnacle of professionalism.

4. Before you hang up the phone, make sure you open a window

As a telephone salesperson coming off of a non-sale, you must make sure you prepare for the future. The future is brighter with a window open... the window of opportunity to make a future sale.

Ask permission to check back with them in a few weeks. I have made a lot of money in my sales career by checking back in a few weeks and finding out that the prospect is now dissatisfied with their choice. What they have received up to this point was far less than promised.

Ask permission to contact them periodically over time. "Can I call you periodically just to see how you are doing?" Tell them the door or window is open to them. "If I can be of assistance to you in the future, please don't hesitate to call." You want to convey that it wouldn't be a problem for them to come to you in the future. You respect and understand their decision, so they shouldn't feel uncomfortable coming to you for anything.

5. Send a personal note

One of the most powerful techniques to use after you don't make the sale is a personal hand written thank you note. It reeks of professionalism and courtesy. The salesperson who won the business probably won't send a note, so your note will look even more powerful.

A simple note expressing your appreciation in meeting them and being able to learn about their needs is perfect. You should further thank them for the opportunity to vie for their business. Then express regret in not being able to service them on this occasion. Closing with that fact that you will follow-up with them in the future and hope for the opportunity to serve them is powerful and professional.

6. Send them something that adds value

If you have done your job right in preparation, you should be able to send them an article of personal or professional interest. Recommend a book or a couple of books you read recently or in the past that might help them. We must constantly look for ways to differentiate ourselves from the competition.

7. Just do it!

If you tell them you are going to do something (call, send them an article or information on a new product), do it. I find that the majority of salespeople fail to do what they say they will. Too many salespeople don't follow through on their commitments. They get busy, forget, or neglect to schedule it. My advice is set a time in your CRM right now to follow-up with them.