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October 2008

How To Buy HUD Homes in Nevada

Buying a HUD home in Nevada is emerging as another alternative for potentially a good bargain.   The active property list as of 10-24-08 had 48 available properties including manufactured homes, condos and single family residences.  There have been few HUD homes available in recent years due to the high percentage of conventional loans.  With the trend in financing switching back to FHA loans (46% of all Las Vegas closings in September were FHA), expect to see the number of HUD homes available to increase.

Here is a review of the HUD Home bid process and resources:

  • The local listing broker for HUD is Joe Iuliucci of Prudential Americana Group.  Joe and his team ensure all the HUD listings are posted in the MLS and manage the listings for the HUD Marketing and Management Contractor Michaelson, Connor and Boul.  The new list is published every Friday. 
  • Buyers must use a licensed real estate agent to submit HUD bids.
  • HUD properties can be found in the MLS or at MCBREO.com or HUDHOMESNEVADA.com
  • Real estate brokers must be registered with HUD and be issued an NAID number in order to submit valid bids.  You can check to see if your NAID # is current or your broker can register at MCBREO.com.
  • All HUD homes are on a Master key not on lockbox.  Real estate agents can sign out a key at any Prudential Americana office or purchase a HUD key for $3 with a valid NAID # and your business card at the Prudentail Americana Southwest office - 8337 West Sunset Road, Suite 150
    Las Vegas, NV  89113  Phone: (702)734- 5555  
  • All bids are submitted electronically directly on the MCBREO website and are considered simultaneous bids.  You must have the complete contract and all disclosures completed and signed by the buyer prior to submitting the bid.  
  • When properties first come on the list, there is a 10 day period reserved for owner occupant offers only.  Properties will open up to investors on the 11th day if there has not been an acceptable offer to HUD.  Daily bids are open to all bidders/purchasers.
  • All the necessary Forms and Addenda are located at MCBREO.
  • Also, get the Broker Handbook: A Guide to Selling HUD Homes for step-by-step instructions on the entire process and how to complete the forms. 

  • Make sure you review the Bid Results and Statistics area of the website for useful information to assist you with educating the buyer. 
  • Remember the highest net to HUD is the winning bid - basically the offer price less any requested closing costs and commission (HUD will pay a commission up to 5% of sales price).
  • Check out the comprehensive HUD.gov site for extensive and useful information.

If you are an interested buyer, just give me a call (702-858-9191 or jan@janobrien.com) and I will be happy to refer you to an experienced real estate agent who can assist you.


6 Fundamentals of Marketing

Jean Jones of ProspectsPlus  recently gave an excellent presentation to our real estate office on the fundamentals of marketing and how to use the marketing and lead generation materials available from ProspectsPlus.  I encourage you to check out the cost effective and wide variety of marketing materials, personal brochures, postcards and more.  Contact Jean Jones directly for more information at 623-544-1205 or email:jjjjones99@aol.com.

Here are the six fundamentals of marketing Jean shared with our office:

  1. Budget.  Every business needs a budget and a method to track your expenses and return on investment.  See my post on the Real Estate Business Plan to download supporting forms and budgets.  A good rule of thumb is to invest 10% of your gross revenue back into your marketing budget.
  2. Consistency.  The 3-7-27 law of prospecting states it takes 3 contacts for someone to recognize your name; 7 contacts for them to associate your name with your business; and 27 contacts for them to feel comfortable doing business with you.
  3. Work High Priority Activities.  Identify what your high value and priority activities are, schedule them and just do it!  In sales, your key results areas include: Prospecting, Trust & Rapport Building, Identifying Needs, Presenting Persuasively,  Answering Objections, Closing the Sale and Getting Referrals.
  4. Specialize. To compete and win, consider being the best in the world at one thing.  What is your target market, niche or specialty?Understand the demographics within the geographic area.
  5. Psychographics.  To further target your efforts, you've got to determine not only who buys (or will buy), but what makes them want to buy or sell and with you. Psychographic variables are any attributes relating to personality, values, attitudes, interests, or lifestyles.
  6. Data-Mine.  A high percentage of properties sell to someone who currently lives within 10 miles and has lived in the area for at least 5 years.  Are you leveraging the power of data-mining through the use of just listed and just sold postcards, door-to-door canvassing, calling, and farming?

How to Create a Real Estate Agent Business Plan - 3 Steps to Success

Businessplan_goalsetting I am featuring this post on Real Estate Business Planning and Goal Setting (originally posted on 10-28-08) to encourage all readers of this blog and those who come across it to...TAKE ACTION NOW! 

If you are interested in one-on-one coaching...  contact me for a FREE consultation to discuss my coaching packages and options.  All packages include guidance and support on completing your Business Plan and Outcomes.

 

The purpose of this post is to recap the 3 Steps to the Real Estate Business Plan with links to all previously published material.  I've also uploaded all the necessary business plan and goal setting forms/documents for your convenience.   

In my experience, less than 10% (probably closer to 5%) of real estate agents actually prepare a written business plan and set annual goals.   I have witnessed the amazing results of those who actually create and use a business plan and set goals in all areas of their life.  Only 3% of adults have clearly written goals and accomplish 5 to 10 times more than those who do not have written goals. The 80/20 principle applies to everything - just become aware and observe the multitude of examples (Read Living the 80/20 Way Work Less, Worry Less, Succeed More, Enjoy More):

  • 80% of sales people spend 80% their time with customers who will never buy or sell from them. 
  • 80% of your results will come from 20% of your activities
  • Less than 20% of agents are responsible for 80% of all business

Here's your challenge... Are you ready, willing and able to join the success group (the less than 20%)?  Are you willing to do the opposite of what the masses usually do and achieve your desired outcomes?  If you are ready... start today by following the 3 Steps to Business Planning and Take Action! 

Previous blog posts on Business Planning and Goal Setting:

Step 1 - Set Your Goals (Outcomes)

The critical steps to achieving your goals:

  1. Identify clear, concise, SMART goals and know your WHY for each of them.
  2. Write them down for all areas of your life (Personal, Financial, Business/Career, Relationships/Family, Spiritual)
  3. Create Action Plans - break the goal down into steps and next actions.  Take action every day!
  4. Measure and track your progress - you can't improve what you don't measure.
  5. Celebrate your successes along the way - make any necessary course corrections.

 

Read these posts for more information on goal setting:

Step 2 - Create Your Business Plan.  Documents to download for writing your Business Plan:

  • Review_of_your_Business.pdf  Start by analyzing your previous year's business - this form will help you gather and calculate key factors for your specific business.  Everything from sources of business to average days on market and listing to sale ratios.  Before you launch into your plan for the coming year, it's critical to review what worked last year and to know your basic numbers.

  • Basic_Real_Estate_Business_Plan.pdf  This is a 2-page easy-to-use, basic real estate business plan.  Just follow the step-by step formula to turn your desired income goal into the number of listings, sales, contacts and appointments required to obtain it. 

  • Use this SAMPLE Basic Business Plan to use as a guide:  Sample-Basic-Real-Estate-Business-Plan.pdf

  • Allocating_time_to_build_your_business.pdf  An eye-opener exercise about the value of your time.

  • DailyWorkPlan.pdf  A simple daily planner page that also helps you track productive activity.

  • Attitude-Affirmations-TimeMgmt.pdf   A good review of what you already know!

Step 3 - Measure and Track Your Results.   You can’t improve what you don’t measure.   An excellent tracking system will allow you to make necessary course corrections and adjustments as well as gage your overall success.  Here are some excellent tools to track and measure your performance and results -

SECRET to SUCCESS:  Create Your Daily Action Plan and Just Do It!

Once you have your business plan in place, it is critical to review it and make necessary course corrections at least quarterly .  On a monthly basis, make sure to use the performance dashboard or a suitable tracking form to record your actual results and compare them to your plan or goal.

From the business plan you can create your daily, weekly, monthly ACTION PLAN.  This plan will outline the income-producing activities and other tasks you are committed to in order to achieve your  desired outcomes.  Review and stick to your Action Plan DAILY! 

  • Write your Action Plan on index cards - and keep one with you
  • Put one in front of your dayplanner
  • Post it in your workspace
  • Tape it to your bathroom mirror and review it daily
  • Review and record your results daily also

A basic mantra or affirmation for your consideration and real estate success could simply be:

"I make one qualified appointment daily!" 

Create an Action Plan that works for you -
it may consist of some of the following activities:

  1. Make ______ contacts daily
  2. Send ______ personal notes weekly
  3. Add _______ people to your database weekly or monthly
  4. Contact _____ FSBOs weekly
  5. Contact ______ Expireds weekly
  6. Hold ______ effective open houses weekly/ monthly
  7. Mail or email to your SOI/Past clients valuable market information monthly
  8. Mail or email to your designated farm of ______  properties monthly
  9. Door knock/ door drop _________ houses monthly
  10. Take ____ past client to lunch monthly
  11. Network with ____ business to business referrals monthly
  12. Hand out 5-10 business cards, 5 days/week and actively ask for business or for permission to add them to your database

Join the WBNL Coaching Wanderers Club - The online, virtual coaching and training platform for Real Estate and Business Professionals.

Your basic, FREE membership includes:

WBNL Coaching Real Estate Business Plan Online Course and Downloads

More Recommended Resources:

Brian Tracy International - I highly recommend anything written by Brian Tracy.  Sign up for one of Brian's free newsletters and receive a free 326 page eBook entitled GOALS! How to Get Everything You Want - Faster Than You Ever Thought Possible.

David Allen's Getting Things Done -  GTD is an effective Action Management System.  Read or download and listen to this book.  There are abundant free resources and blogs on this site.

Free Motivational & Success Classics as eBook downloads:


Should an Appraiser Use Short Sales and REO's as Comps?

Debbie Huber,SRA of Huber Appraisal and Home Pride Insections in Las Vegas is today's featured guest blogger.  Debbie has been appraising residential homes in Las Vegas for over 20 years and holds the SRA designation (Senior Residential Appraiser).  She is also a Past President of the Appraisal Commission for the State of Nevada.

Should appraisers use short sales or bank owned properties/repossessions as comparable sales or listings in their analyses? (Repo’s or bank owned properties are also known as REO’s.)  The best response to this question is that it depends on each particular subject property’s subdivision or market area, and what the typical types of sales are in that particular subdivision and/or area. Sales and listing data must be analyzed sufficiently to determine which properties are not only the most similar to the subject in features, amenities, quality and location, but also those that represent “normal” terms of sale by typically motivated parties for the specific market area.

At the time of writing this article (the third quarter of 2008), unless I am appraising a bank owned property or a short sale, I try not to use short sales as my actual comparable sales in completing an appraisal report. I believe that short sales may actually be a third, separate type of market, due to the difficulties of getting through the short sale process. The motivations of the involved parties may not reflect typical sellers’ (or buyers) actions in their markets, and therefore, lower selling prices are often the result. I don’t believe it is appropriate to use short sales as the actual comparable sales in an appraisal unless they are considered typical for that specific subdivision. If that is the case, then it is essential to utilize them. Keep in mind that appraisers must always analyze all market data pertinent to each subject property. While I must consider all short sales that are relative to a subject property, I may not necessarily use them as my comparable properties when completing the appraisal and report. It is important to discuss specific comparable sales in the appraisal report that may be considered pertinent, however, even if they are not identified as actual comparable properties in the report. This allows the client or user of the report to understand the logic of the appraiser and therefore, lessens the possibility that the report could be considered misleading in any way.

REO’s or bank owned properties that have sold also must be considered. The same logic applies to them. If they appear to be typical sales for a subject’s area, (which now seems to be the case in most areas) than they should be used as comparable properties. I have utilized bank owned properties (REO’s) as comparable sales only when I have determined that they are representative of the
neighborhood I am analyzing. In analyzing market data for any assignment, the more data one can analyze, a more accurate opinion of true market value should result. While Fannie Mae guidelines require a minimum of three comparable sales on the appraisal reports, it is important for appraisers to analyze more than just three sales. Only then can an appropriate determination be made which three (or more) properties are really the most representative of the subject’s market and therefore should be put on the appraisal report(s).

Listings, pending and contingent sales should always be considered, also, even if they may not appear in the appraisal report. Short sales and REO’s, if common in an area, may indicate the current competition in a subject’s neighborhood and could assist the appraiser to make the final determination of the opinion of market value. Many financial institutions are now requiring that appraisers include one or two current listings on all appraisal reports completed in Clark County.

Contact Debbie:

Huber Appraisal, please call (702) 243-3256 or email: debbie@huberappraisal.com                        

Home Pride Inspections, please call (702) 363-1681 m.harrison@homeprideinspections.com