RE Marketing Review

Why Market to Renters? 10 Good Reasons

Christopher Sartorius (Carteret Mortgage) — Wed, 09 Jan 2008 11:31:44 -0600

With the current market conditions, Realtors need to market to renters. It just makes sense for a variety of reasons. Here are some of them.

1) A renter doesn't need to sell their current house in order to purchase a new home.

2) There is little or no competition. Most Realtors do not send direct mail to apartment complexes.

3) Gain recognition and contact with renters before they start shopping for homes, or shopping for a Realtor.

4) Each year most renters need to renew their housing lease, or move.

5) You can find renters alternative rental properties, if they don't qualify, or are not ready to purchase a home.

6) Build a mailing list of warm buyer contacts.

7) Create more targeted mailings. Renters are already mostly pre-qualified by their lease.

8) "Echo Boomer" renters looking to buy are predicted to be one of the largest groups of buyers in the future. This market segment are now entering their twenties and are at the age of typical first-time buyers. See NAR's "Marketing to Gen Next" PowerPoint. http://www.realtor.org/Research.nsf/Pages/presentations_use

9) Market conditions are favorable. The Prime Rate is the lowest it has been in over two years. It just makes more economic sense to purchase a home, rather than rent. Rental rates are increasing, while home prices are declining, or staying constant. Now is a great time to buy for renters.

10) Suitable for co-marketing. First-time buyers usually need help with financing and the home buying process. A marketing savvy lender can help you generate a consistent source of renter leads.

Put more focus and impact in your marketing for 2008 by marketing to renters in the correct, proven way!

© Realty Pro Marketing, LLC

How helpful is this list? Please provide any feedback you think may help improve the list that I have already compiled. Thanks.

Christopher Sartorius
Carteret Mortgage
chris.sartorius@carteretmortgage.com
http://www.MtgLoanPlanner.com/
Owner of Realty Pro Marketing, LLC

11-26-07 Monday Meeting

Christopher Sartorius (Carteret Mortgage) — Mon, 26 Nov 2007 11:44:34 -0600

*** Connect with your Colleague ***

Date: Monday November 26

Time: 10 - 10: 30 AM EST

Call in: 605-772-3001 1026195 #

Guest: Andy Tibbals with Franklin American Mortgage

See link to lender web site, and username and password info below:

un:
pw:

Grab your coffee and challenges until 10:15 when we welcome back Andy Tibbals who is now with Franklin American Mortgage where service is # 1 !

We hope that we will see you all at the Carteret Expo which is this Saturday. Your family can enjoy the history and museums of Washington DC while you are connecting with our lenders, your colleagues, Eric an the corporate staff.

As always, you are welcome to post challenges, comments, and requests for information for this week to the team member's only blog.

Realtor Best Practices - Working with Buyers - How a Loan Officer Can Help

Christopher Sartorius (Carteret Mortgage) — Wed, 24 Oct 2007 13:03:13 -0500

The following system for working with buyers is based on my research, and experiences with several top-producing teams, (before I became a Loan Officer), and observing the methods they used.

The purpose of this exercise is to demonstrate ways to systematize your business. It is a starting off point listing tasks for you to keep in mind while you are engaged in the process of working with a buyer.

I think that it is easier to do your job if you have an immediate goal that you are trying to achieve within each segment of the larger task.

Take a look at my list of Realtor "Best Practices" and see if they match what you are doing now. Let me know if you are doing anything differently.

Realtor Best Practices - Working with Buyers - How a Loan Officer Can Help

* Best Practices marked with an asterisk are those where a Loan Officer (such as myself) can help you save time and offer methods to systematize your business.

1) Generate a predictable source of leads*

- Within targeted market segments of buyers.
- Steady referrals from past clients and sphere of influence.

2) Setting Appointments

- Make appointments with potential buyers (and renters) to meet at your office only.
- If they won't meet your office, do not commit your time to them.
- Never meet buyers at a property unless you have already met them at your office previously, since many times they don't show up.
- If buyers are serious they will meet you at your office. You must be professional, and in control of your prospects.

3) Initial Meeting with Buyer

- The purpose of the first meeting is to get to know the prospect and to establish rapport.
- Learn their situation and tell them work-related information about yourself.
- Move to Buyer Brokerage as soon as possible.
- Begin to pre-qualify.
- Set up an appointment for the next meeting.

4) Pre-Qualification*

- Always pre-qualify prospects, otherwise you really don't know what they can afford to purchase or if they are actually qualified to buy.
- Have them talk to a loan officer as soon as possible.

5) Move to Buyer Brokerage

- Must do buyer brokerage immediately before or after taking prospects to see properties for the first time.
- If they won't sign buyer brokerage, tell them you cannot commit your time to them without it.

6) Showing Properties

- Show only the best properties.
- Know the inventory.
- Show 3-4 properties at the most, saving the best for last.
- Eliminate homes from selection as you refine together the buyer's criteria.
- Rate properties on a scale, to get a sense of their preferences.
- After showing properties, take clients back to office and ask them which one they want to write a contract on.
If they won't write a contract, make an appointment to meet again.

7) Financing the Purchase*

- A hard-working lender can make a deal happen that would not work out otherwise.
- Have two good loan officers that you can rely on.

8) Contracts

- Try to foster good will between the buyer and seller.
- Must be win-win offer for sale to go through.
- Use market statistics to determine an offer.
- Have an idea of what the seller needs from the sale.

9) Attitude

- Confidence is gained by doing something you fear so many times it becomes routine and enjoyable.
- You must be in control of the process and want to lead your buyer to make a good decision that will benefit them.

10) Time Management*

- Use your time most efficiently, it is your primary asset and it is a limited resource.
- The more efficiently you use your time, the more money per hour you will make.

11) Goal Setting

- Develop a life plan and a business plan. The business plan is a sub set of your life plan.
- The life plan should set the boundaries for your business plan.
- Try to seek balance in your life; a balanced life makes work more meaningful and enjoyable.
- Strive for on-going self-improvement and seek education and knowledge within your industry.

© Realty Pro Marketing, LLC

How helpful is this list? Please provide any feedback you think may help improve the "best practices" list that I have already compiled. Thanks.

Christopher Sartorius
Carteret Mortgage
chris.sartorius@carteretmortgage.com
http://www.MtgLoanPlanner.com/
Owner of Realty Pro Marketing, LLC

Huntington Club (Alexandria) Community Open House

Christopher Sartorius (Carteret Mortgage) — Thu, 23 Aug 2007 10:00:14 -0500

Join us Sunday, 08/26/2007, 1-4 pm, for a community-wide open house at Huntington Club, Alexandria.

Come view 16 units for sale, and see practically all the housing options available in the Huntington Club Community.

Community Highlights

Fantastic Location: Situated near Old Town, Crystal City, great shops & restaurants, walk to Huntington Metro, minutes from I-495.
Short drive into Washington DC, Maryland, or to Reagan National Airport.

Great Amenities:Pool, tennis courts, exercise room, party room, extra storage and ample parking. Almost all utilities are included in condo fees.

SIXTEEN (16 ) units are for sale, as of 08/15/07 in Huntington Club .

Prices Ranging from

1Br - $200,000-$237,500
2Br - $210,000-$278,000
3Br - $275,000-$299,900

1BR/1BA
*2638 Ft. Farnsworth Rd.,#1D         $200,000
2641 Redcoat Dr., #139                   $219,900
2617 Huntington Ave., #42              $229,000
2609 Indian Dr., #96                        $237,500

2BR/1 or 1.5 BA
2646 Redcoat Dr., #109                    $210,000
2632 Wagon Dr., #1C                       $218,000
2636 Ft. Farnsworth Rd.,#124          $230,000
2632 Wagon Dr., #2B                       $238,286
2630 Ft. Farnsworth Rd.,#151          $239,000
2620 Wagon Dr., #1C                       $240,000
2602 Indian Dr., #70                        $249,000
*2623 Wagon Dr., #341, 2Lvl           $270,000
2620 Wagon Dr., #327                     $278,000

Visit us and say hello at 2623 Wagon Dr., #341, or 2638 Ft. Farnsworth Rd.,#1D.

Custom Home Construction Loans Still Increasing in Northern Virginia

Christopher Sartorius (Carteret Mortgage) — Wed, 15 Aug 2007 07:27:24 -0500

Real estate sales have declined in Northern Virginia like in most areas of the country, however, the purchase of lots and custom home construction and remodeling continues to grow.

The reasons? These are several:

1) It is usually more cost effective to build your own home than to buy it, especially during the current market conditions. Many people are attracted by the opportunity to build their dream homes at below market values. They routinely have instant equity when they are finished with their home construction projects.

2) Demographics. Baby boomers are building second homes in large numbers. These are houses that they plan on using as vacation properties or future retirement homes.

3) The default rate on construction loans is very low, so therefore borrowers can expect very competitive rates and programs. For example, it is possible to defer payment on a construction loan for up to two years during the construction period. That's right, no payments for up to two years, and during that time, the property is probably going to appreciate further!

Here are some common construction loan program features:

- One Time Close - 3 Loans Closing at One Settlement
Lot, Construction, and Permanent Financing Loans all close on the same day!

- Interest Reserve Available - No payments During Construction!

- Up to 24 Month Construction Term

- Extended Rate Lock - Varies by Lender

- Closing Costs Financed - Varies by Lender

- Construction Contingency Funds

- Cross Collateralization

- Modular Homes Are OK - With Fast Draw Schedule

- Cash Flow Arm, 3 or 5 Year Semi ARM Loan Programs Available

- Soft Costs Included and Paid with First Draw

- Flexible Draw Schedules - Varies by Lender

How is construction lending in your location?

Which construction lenders have you found to be the most popular with your clients?

Idylwood Towers Community Open House, Sunday Aug. 5th (Tysons Corner, VA)

Christopher Sartorius (Carteret Mortgage) — Fri, 03 Aug 2007 14:13:32 -0500

I wanted to let Fairfax and Loudoun County Active Rain bloggers know about the Idylwood Towers Open House this Sunday, August 5th, 2007, 1 pm - 4 pm.

I will be hosting Realtor Ying-Ying Li's listing at 2300 Pimmit Drive, #1001, near Tysons Corner, and I'll be available then to pre-qualify buyers that may be interested in the Idylwood Towers community.

At the event there will be 11 Open Houses in two buildings, and you will have the opportunity see practically all the Idylwood Towers housing options available.

On a personal note, my marketing company built Ying-Ying's web site, http://tysonshomevalues.com in 2005, and I have been working with her ever since. She is a great Realtor and the agent behind organizing the Community Open House. Please read on for more details.

First Ever Community Open House in Idylwood Towers!

Great opportunity to preview 11 GEORGEOUS homes with GREAT LOCATION, and BEAUTIFUL VIEWS, in less than an hour!

Location: 2300 and 2311 Pimmit Drive, Falls Church, VA 22043

2300 Pimmit Dr. Condos For Sale:

#210

#1001

#1202

#1114

#1405

#1411

2311 Pimmit Dr. Condos For Sale:

#107

#111

#303

#401

#915

Date and Time: Sunday, August 5th, 2007, 1 pm - 4 pm.

What's Available for Sale:

11 Listings to View

BR: 1--2 Bedroom Units

Price Range: $212,000--$300,000

Community Highlights

Fantastic Location: Situated on the edge of Tysons Corner, short distance to Marshall High School, near great restaurants, Tysons Corner Center and Galleria, near West Falls Church Metro, close to proposed Tysons Metro stop, minutes from Rt 66 and Rt 495 commuter roads. Short drive into Washington DC or to Dulles Airport.

Great Amenities: Concierge, tennis courts, pool, exercise room, party room, extra storage and ample parking. Almost all utilities are included in condo fee.

Spacious Floor Plans: 2 Bedroom units are 1,182 square feet.

Directions: From Tysons, Leesburg Pike Eastbound For 2.5 Miles, Right On Pimmit Drive, To 1st highrise building On Right, (Drive Around To Front Of Building)

Community Open House organized by Ying-Ying Li, Long and Foster Real Estate

We hope that you will be able to attend the Idylwood Towers Community Open House on Sunday, August 5!

"Conforming" versus "Jumbo" Loans

Christopher Sartorius (Carteret Mortgage) — Fri, 27 Jul 2007 10:40:54 -0500

Let me start by saying what prompted me to write this post is that there has been speculation in the media that the conventional loan limit will remain at $417,000 for 2008 due to the recent decline in home appreciation and prices.

Such a move by Fannie Mae would be another signal that the current trend of the declining housing market will continue through 2008.

Anyway, let me explain further....For more information about "Conforming" versus "Jumbo" loans, read on.

The Basics

A Jumbo loan is a loan that exceeds the limit for a "conventional", or "conforming" loan amount, established by Fannie Mae and Freddie Mac.

In 2007, the maximum size mortgage eligible for purchase by Fannie Mae and Freddie Mac, was set at $417,000.

The names, "Jumbo" or "Super or Ultra Jumbo" mortgages simply refer to residential loans that exceed $417,000 for the purchase, construction, or refinance of a single family residence. Each lender sets distinctions (such as "Super" or "Ultra") between the various Jumbo loans amounts.

Fannie Mae sets conforming mortgage limits at the end of the year. So each year, the loan amount will usually change based on prevailing home prices. With the recent drop in home prices, there is speculation that the conventional loan limit will remain at $417,000 for 2008. See link for more details: http://www.topproducer.com/news/63880.html

Conventional loans are more easily sold on the secondary market to investors than Jumbo loans, simply because Fannie Mae and Freddie Mac buy loans at their conforming limit, and conforming loans can therefore be more efficiently packaged to investors.

Jumbo loans are consequently priced at slightly higher interest rates than conforming loans due to inefficiencies in selling them on the secondary market.

What To Look Out For - A Reminder To You Experienced Realtors

A mistake that Loan Officers and Realtors sometimes make is not to take into account the interest rate distinction for the borrower between using a conventional or a Jumbo non-conventional loan product.

In cases where the loan amount is close to $417,000, a knowledgeable loan officer or Realtor can save their clients money by recommending using a higher down payment strategy, so that a conforming loan can be used, or by seeking sellers' concessions to buy down the typically higher Jumbo loan interest rate.

Knowing the simple facts above could possibly make a sale happen that otherwise wouldn't, and can help you serve your client better.

- What are your thoughts about the maintaining of the conforming limits staus quo in 2008, and the plans already underway to lower the conventional limit in 2009?

- Are "policy wonks" going overboard and setting market expectations too early, and causing harm to the housing market, and the economy in general?

- Consider also that there are signs of price recovery in 2008 that the NAR has been broadcasting recently...or are their voices cries in the wind, at this point?

Reasons to Buy a Home in Today's Market

Christopher Sartorius (Carteret Mortgage) — Fri, 29 Jun 2007 10:59:43 -0500

I have been working with a lot of first-time homebuyers recently, and I think that young home buyers are poised to really benefit from home ownership during these market conditions, in the Washington, DC metro area, and specifically Northern Virginia.

This ties in with a previous blog posting I made titled, The Economic Reason to Buy a Home, although this posting concentrates on the market conditions that make buying a home at this time so advantageous.

The reasons are these:

1) Interest rates are at historical lows. The combination of low interest rates and decreased housing prices represent a great investment opportunity.

2) At this time, due to houses taking longer to sell, sellers are willing to give concessions to attract buyers, including paying for closing costs. Up to a 6% seller contribution is permitted on some first-time homebuyer programs. That equals $18,000 on a $300,000 home.

3) Buying a home is almost always a good financial investment. In general, when you buy a home, you are betting that long-term historical trends of appreciation cycles will continue. See my previous blog posting, The Economic Reason to Buy a Home.

4) Now is an excellent time for renters to buy a home (making a mortgage payment) for what they are paying for rent. Rentals have experienced increases in monthly rent prices during the first quarter of 2007, while home prices have declined.

5) If first-time married homebuyers purchase a home that they can comfortably afford now, by the time their children are older, and they need more space, they can sell their first starter home and use the equity to make a down payment on their next larger home.

The question that buyers need to ask themselves is, "If I don't buy a home now, where is the down payment to buy my ultimate dream home going to come from?"

Most people are unable to save ($50,000 - $100,00 for a 20% down payment on a $250,000 - $500,000 house), with all their other financial obligations.

Owning a house is the best way that I know of for ordinary people to accumulate enough wealth to make a significant down payment on the homes that they ultimately want to purchase.

Since most first-time homebuyers are young, they have more time to allow the equity in their homes to grow, than other homebuyers.

6) The final argument for why buying a home makes sense now, is because if you wait to buy, nothing is guaranteed. Interest rates can go up, the price of homes could increase, and so forth. Currently, buyers have historical trends on their side, and, as mentioned, the combination of low interest rates and decreased housing prices represent a great investment opportunity.

Now is the time to be a market contrarian, and to run in the opposite direction of market psychology.

During 2005 homes were selling beyond their market value justifications, and buyers were acting irrationally in their desire to own a home. And the opposite holds true today. Market conditions are ideal for home ownership investment, yet buyers remain on the sidelines.

Origination Pro Seminar, May 17-19 in Fairfax, VA

Christopher Sartorius (Carteret Mortgage) — Wed, 18 Apr 2007 13:14:06 -0500

I will be attending the Origination Pro Mortgage School seminar on May 17-19, 2007, in Fairfax, Virginia, and I was wondering if any other members of the Active Rain community will also be there at the event?

The three day seminar is billed as "...absolutely the most intense, comprehensive mortgage training available in the mortgage industry..." It is also suitable for Realtors wanting to learn more about the lending industry, and to better understand the lending side of the real estate transaction.

Has anyone attended Dave Hershman's seminars before, and what was your experience?

If you've never heard of Origination Pro before, here is a link to the web site.

Economic Reasons to Buy a Home

Christopher Sartorius (Carteret Mortgage) — Wed, 11 Apr 2007 18:27:01 -0500

Have you ever gotten into a conversation with a prospect or client regarding what a sound investment real estate is, and why it is such a good opportunity for the average person? I bet you have.

If you are like me, you may have had trouble sometimes putting into words why it is such a good investment. This blog posting may help. After some research, I put the main reasons together, using my own words, while getting some ideas from a mortgage educational book called, "The Book of Home Finance" by Dave Hershman. (I am not affiliated with the writer or publisher).

Here they are:

The Five Primary Investment Reasons to Buy a Home

1. Real estate is a uniquely powerful investment medium. With real estate you have the ability to use leverage to own, and control a very expensive asset, with a relatively small initial capital outlay. This financial investment, your home, is also a necessity of life, and provides shelter and tangible benefits for you, and your family. It frequently increases in value over time, through appreciation. Equity in your home can be built up while you make monthly payments, and thereby pay down the mortgage principle, a form of "forced savings".

2. Owning real estate can have tax benefits too, since homeowners are allowed to deduct real estate taxes, and interest paid on their mortgages. (Refer to your tax consultant to see if the deductions available can apply to your particular situation).

3. Real estate can also serve as a hedge against inflation. Apartment unit rents will certainly increase during times of inflation, while a fixed rate mortgage, and some other types of mortgages, will not suffer the same payment increases.

4. Owning real estate can often be less expensive, and a far better investment than renting. See Rent versus Owning Calculator

5. Real estate can out-perform other investments, namely stocks, over the short term. Over the very long-term (20-50 years) stocks can consistently out-perform real estate. The advantage of real estate as an investment over stocks appears to be in certain markets and over mid-length time frames (1-15 years). See Forbes Magazine analysis

These are the primary and best investment factors that I could think of for the average buyer, and that are described in the literature I am familiar with. I am not considering the advantages of purchasing multiple investment properties or real estate related stocks or funds, by the way.

Can you think of any other investment-related reasons to purchase real estate that should be added to the list, and that could be used to convince buyers to purchase in any market?

For the other side of the coin, read this article, 5 Lousy Excuses for Not Buying a Home (from Smart Money Magazine) and note the ways to respond to those consumers' objections. Very enlightening.

Washington Wizard Tickets - It's All About Location, Location, Location!

Christopher Sartorius (Carteret Mortgage) — Wed, 21 Mar 2007 15:26:33 -0500

On St. Patrick's Day my wife and I attended the Washington Wizard's game held at the amazing Verizon Center, feeling as if the "luck of the Irish" was with us.

My wife had won her company lottery, and it was now our turn to use a pair of company-owned almost courtside tickets, along with a parking pass, to the Wizards game.

The tickets were spectacular 4^th row from the court, VIP tickets that had a face value of $275 each, so watching the game from that category of seats was a special event for the both of us.

There was also a very festive atmosphere around the Verizon Center, with crowds of people packing the bars and restaurants for St. Patrick's Day, looking to drink some green beer, and have a good time.

With the help of several gracious ushers, we found our seats in time for the game's tip off. There were complimentary programs waiting for us on our seats, along with a menu of food items available from the roving attendants assigned to our section.

We settled into a good game that saw the Wizards take an early lead. I couldn't help noticing that the game seemed just a little more interesting, and vivid, from our vantage point, rather than the typical, nose-bleed section tickets that I was used to, where you are barely able to read the numbers on the player's jerseys.

From our seats near the front row, it was really fun to be able to see, and hear, the players on the court, as if you had just walked on to a neighborhood playground.

During the television timeout after the first quarter, we noticed James Carville walk past us only a few yards away. It was the first of several celebrity sightings we had during the night.

The Wiz built up a big lead during the second quarter with Antwan Jamison and Gilbert Arenas both contributing significantly. See game summary here.

It turned out to be an interesting game, with Gilbert Arenas scoring two 4-point plays in the same game, the only time that it had been done in the NBA since Nov. 12, 2003. The Wizards also got a much needed blowout win, letting them rest their regulars before they started an important West Cost road trip.

If I can somehow get back to the real estate part of this blog, (if that is possible at this point...) what I realized about our tickets was, what a difference location makes!

The tickets that we enjoyed that night were the equivalent of a Malibu beach house, right off the water, with a price tag to match the view. It was a great visual and emotional experience, and it made me appreciate, in a new sense, why people pay so much for location. (Hopefully that is not too much of a real estate stretch...)

Along those same lines, after attending the game, and seeing the atmosphere around the arena, it made me wonder how great the new Washington Nationals stadium will be, and the potential impact that it will have on the city.

If the Verizon Center experience can be repeated in the Southwest section of DC, it will be another boost for the economy, and make that section of the city another premier real estate location and destination.

2007 Market Conditions for Northern Virginia

Christopher Sartorius (Carteret Mortgage) — Sat, 17 Mar 2007 09:18:33 -0500

Interest rates are projected to vary within an expected narrow range during 2007. They are unlikely to climb above 7% or decline below 6% for the year, as a regional average rate.

Regional job growth is expected to be strong, with approximately 56,500 new jobs created during 2007, making the area among the strongest local economies in the country. For more information about job growth and the
differences between our local economy and the rest of the country, see the Center for Regional Analysis' report, at: http://www.cra-gmu.org/forecastreports/Washington%20Outlook-PrinceWmNVBIA2007.pdf
(http://www.cra-gmu.org/index.htm)

With continued job growth, home sales for the region should increase over 2006 figures, for resale homes, during the course of 2007.

Locally, house prices on average should rise somewhere between 2% - 4% during 2007, based on market trends and projections derived from 2006 results.

While interest rates remain at historically low levels, along with a strong regional economy, it is possible that a seasonal resurgence in the local Northern Virginia housing market may take place during the Spring months.

Buyers at this time have the better negotiating position, as houses remain on the market for longer (more traditional) time periods before selling.

The good news for Realtors and Loan Officers is that the Washingtion metro region is better off than most other regional markets in the United States.

Top 10...Business Generating...Things to Post on Your Blog

Christopher Sartorius (Carteret Mortgage) — Sat, 03 Mar 2007 22:20:51 -0600

This is my list of the best things to post on your blog for business-generation. As always, I base my observations on my own experiences and what interests me when looking at other blogs.

1) Your Listings. The best real estate content and information remains real estate listings.

2) A New Testimonial (include photo of happy client(s). It always feels great when someone else sings your praises.

3) Examples of your marketing, let people see that you market to the areas where they are looking to buy or sell.

4) News about your Customer Appreciation events, with photos and additional fun info. about the event

5) Market Conditions, especially during the current market where buyers require more information and guidance when making a decision. Include monthly regional statistics from your Realtor Association.

6) Photos of your favorite farm community during the different seasons.

7) A positive review of a contractor that you personally use and/or that a client has commented about the contractor. It is a great way to keep your networking moving forward and rewarding good work.

8) News about a charity event that you participated in, with some photos and info about how others can contribute to the charity.

9) Press releases, ie., news about your real estate company, introducing new employees, and so forth.

10) Your yearly vacation photos and details about the trip. What you liked and didn't like. Keep the vacation postings to once a year though, or people may start to wonder what you are doing with your time...

Go forward and blog with these ideas...I hope they help you generate more business.

Did I miss something that you personally thinks needs to be added to the list, or do you have an idea that works for you?