Chad's Blog

The Realtors of NWA have a friend in the race.

Chad Kumpe (Chad Kumpe Real Estate) — Fri, 28 May 2010 12:21:05 -0700

Lest We Forget!

My Momma told me, "It is never good to talk about religion or politics in class or in public." I hope Momma will forgive me for breaking her rule. We are now in the count down to the runoff for our elected officials: especially regarding who will be the Republican Congressman from Northwest Arkansas and the western part of the River Valley. The winner will most likely be the Congressman for the next two years. We Realtors put a whole lot of effort in staying in touch with our elected officials in Washington.

When business was really tough in the last year, the local Boards of Realtors and the NWA Home Builders Association put a lot of time and money in an advertising campaign named, "It's a good time to buy a home in Northwest Arkansas." We all should remember the person who stepped forward to be the spokesperson for that campaign. Mayor Steve Womack proved to be a great friend of our industry then and will continue to be.

All of us that make a living in the Real Estate Industry need a friend in Washington D.C. to help and protect us. Mayor Womack proved his friendship last year, and we need to return the favor on June the 8^th. Let's continue that friendship and keep it going into the future.

On another note: Have you seen the discussion on the Credit Consequences of Short Sales? It seems that a Short Sale, unless done very carefully, can affect that person's credit report for up to Seven years. A Foreclosure will affect the credit report for only Five years. It all depends upon how the financial instruction reports the occurrence. There have also been discussions about distressed homeowners being hit with Default Judgments after Foreclosures. The idea that we Realtors can give advice or council distressed homeowners should be strongly reconsidered.

I will be attending the Real Estate Educators Convention in San Antonia the middle of this month so I will be up to date on the newest things happening in the Real Estate Industry.

Tools from the Internet

Chad Kumpe (Chad Kumpe Real Estate) — Thu, 29 Apr 2010 20:19:21 -0700

Look what can be obtain from the Internet!!

By now a great many of us in the Real Estate industry are fully aware of the power of Social Networks. They are a large part of many Realtors' marketing efforts. The regular standbys of "Facebook", "Plaxo" and "Linkedin," I hear from daily. (I don't "Twitter", yet.)

There are some other sites that can be very valuable to one's professional growth, and dedicated Realtors need to be aware and use them too. From a national and daily prospective there are some good list servers. "Real Talk" can help one stay abreast of general business conversations across a wide spectrum. It is monitored by some long time pros of Real Estate and the internet. "Active Rain" is a group of enlightened and productive Real Estate agents from around the country that blog about situations and thoughts from their perspectives. Sometimes funny, sometimes serious, and always thought provoking. Once a week there is Information from NAR sent out by Realtor.org. This has valuable information about legal situations Realtors encounter. The CRS website has great information about helpful and educational Webinars. If you are not a CRS, try "Real Estate Brainchain" that has a weekly video and other offerings in the practice of Real Estate. Another is John Mayfield a well known Tech guy who puts out a weekly webinar about using Technology effectively. The "Swanepoel Reports" are tuned to point out trends in the Industry so we can have an idea where it's going. A Canadian friend, Gord Garrie, puts out marketing tips on a daily basis on how to manage your business base. Closer to home the "Arkansas Realtor Blog" will give reports on the market in our state. For local Northwest Arkansas market insight, it's hard to beat Paul Bynum's "Mount Data" with his monthly snapshot of the MLS activity.

For helpful non-Real Estate info, a look at the national economy report coming from "Marcus and Millichap" and a good site for personal care is "Every Day Health." The internet has become an extremely helpful source for so many of us in the Real Estate profession. How quickly that has happened!

Thoughts for the beginning of Spring

Chad Kumpe (Chad Kumpe Real Estate) — Wed, 31 Mar 2010 18:45:42 -0700

Realtor Profile of Buyers and Sellers

Before analyzing the NAR profile 2009 we need to look at the current demographics of the US population by generations currently in our market. Boomers born between 1946 and 1964 make up about 70 million people. They may buy one or two more houses in their remaining life time and that will usually be downsizing. Gen. "X" born between 1965 and 1980 make up about 32 million of the US population. They will buy three to four houses in their remaining life time. usually upsizing as families expand. The Minimum or "Y" generation born between 1980 and 2000 already outnumber the Boomers and in five to ten years will make up over 93 million of the working US population. They will buy eight to ten houses in their life time. The "Greatest Generation" those born before 1946 have probably bought their last home.

Now let us look at what the NAR Survey tells us: 61% of all buyers in 2009 were less than 44 years of age. 40% were under 34, with 25% being single females and 12% single males. Nearly half of all buyers were first timers. 65% of the first time buyers were under 35 with a median age being 30. (Think about half of them being under 30 years of age in nearly a quarter of all sales.) All buyers 55 years of age and up represented a little more the 20% of the sales. The under 30s bought 5% more homes than the over 55s. (What is the average age of the Realtors in your market?)

Why did the first timers (about half the buyers) buy a home last year? The American Dream: 62% wanted to own their one home. 10% thought it was a most affordable time to buy and only 6% said it was because of the tax credit. 61% of first timers bought under $200 thousand with the most popular range being between $125 and $150 thousand.

What was the first step taken in the home buying process? 33% actually went to the internet to figure out the process and 11% researched the actual process on line, only 18% talked to a real estate agent to figure out the "How to." The good news is 81% of the buyers found the Agent very useful in the process and 77% found the internet very useful last year the percentage w as equal. Internet usage was over 90% with 76% using it frequently and reported that they found an agent that way. 60% of the buyers were inclined to walk through the houses they liked on the internet. (That is probably how they found their agent.) The median age of internet users was 37; they spent twice as much time on home searches and looked at three times more houses. For all buyers, 40% looked on line first, 21% looked for an agent first, 10% drove by houses, and 5% attended open houses. For the under 40 age group, 55% went to the internet first, 12% went to an agent, and 11% went to a lender, 8% drove by or visited an open house, 12% talked to a friend or relative. Internet searchers wanted pictures first 80% of the time and 63% liked virtual tours. The public MLS was the favorite site. The most important thing a buyer looked for in an agent was honesty 31%, reputation 23%, a friend 13%, care 10%, and a good firm 3%.

There is a whole lot more an agent can learn from the 2009 Survey of Buyers and Sellers and the complete book can be found at www.Realtor.org.

"Lies, Damn Lies and Statistics" c/o Winston Churchill or Ben Franklin

Chad Kumpe (Chad Kumpe Real Estate) — Sat, 27 Feb 2010 16:11:16 -0800

A survey is completed every year by NAR of Home Buyers and Sellers. They interview 120,000 buyers and sellers between July of the previous year and June of the current year. (This survey is now available for download at www.Realtor.org.) Fifty-six percent of the buyers last year were between 25 and 44 years of age with Forty-seven percent of all home buyers being first time buyers. By far the largest group of these first time buyers was in the 25 to 34 age range. I think this is significant, because when I look at my Board of Realtors, I do not see many Realtors representing this age group (only a very few.)

Forty-four percent of buyers found the Realtor they worked with by referral from friends or relatives. It was the "Sphere of Influence" we all talk about. How deep is your "Sphere of Influence" in the age group that makes up the buyers of today and tomorrow?

The survey also pointed out that buyers want most from their agent: first Honesty and then Representation. This seems to add up to "Trust."

So let's see what some other surveys say. A Gallup Poll, just released, rated the public's perception of the honesty and ethics of various professions. Nurses rated highest followed by Druggists and MDs. the lowest being Stock Brokers at 21^st and HMO Managers at 22^nd. Although Real Estate Agents were not ranked in November of 2009, using our 2008 ranking, we would have come in at 14 behind Bankers but ahead of Lawyers. (It might have been beneficial not to be ranked after the bad market of 2009.) The Harris Poll organization did a poll on professions in late 2009 also. This was a ranking of the public's perception of Prestigious Occupations. Again the most prestigious were Firefighters (62%), Scientist (57%) and Doctors (56%.) The bottom three were somewhat of a surprise to me: Stock Broker (13%), Accountant (11%) and Real Estate agent/broker (5%).

I am not sure how to put this all together. It looks like 17 % of the population trusts in us but not a lot of respect for us at 5%. This might give a clue to a final statistic that came from the NAR poll. About two-thirds of the buyers and sellers were satisfied with the service they received in their transaction (not great) but only 17% used the same agent for their next transaction.

Perception is reality!

Back to the Future

Chad Kumpe (Chad Kumpe Real Estate) — Fri, 29 Jan 2010 09:00:05 -0800

Déjà Vu all over again

In the old days (before home inspectors) we Realtors carried a tool bag in our car. There was a wooden mallet for driving in those horrible wooden driver stakes that were supposed to hold up yard signs. There was a flash light for checking under the house for leaks and in the attic for insulation. There was a screwdriver and pliers for fixing minor things we found in the house before showings. There was also a 25 foot tape and a 100 foot tape for measuring rooms, as well as lot sizes. Some offices even had metal detectors to mark lot corners without the aid of surveyors. Most city lots had to be surveyed (cost $150) before closing any way. You see we Realtors were thought to be the experts regarding "a good, safe house."

Here is what is quickly coming at us. Buyers will receive a copy of the Appraisal Report any time between 10 days and 3 days PRIOR to closing. If a house is quoted in the MLS or in a Realtor ad as being for sale at, let's say, $92 per square foot and the appraisal report says the house is 50 or 100 feet smaller than advertised; that could cause a problem just before closing (if the buyer wants the quoted per square foot price.)

I do not think the county is particularly accurate in their measurements. Many home owners have little idea of square footage, only what they have been told. This is where the old 100 foot tape gets back in the Realtor tool bag. You must learn to measure a house accurately, or pay someone to do it for you. It would be wise to stop quoting a home for sale as priced at so much a foot. Remember, not all square feet are created equal anyway.

Some of the sharper Buyer Agents are making offers with a price on page one of the real estate contract, then going to page nine in paragraph 27 "other" and qualifying that offer based on a price per square foot. How do you advise your seller now? Some appraisers offer home measuring services to Realtors and/or sellers for $100 to $150.

In times past, we Realtors were the arbiters of house sizes. Sometimes changes bring back old ways.

Contracts in Arkansas for 2010

Chad Kumpe (Chad Kumpe Real Estate) — Tue, 22 Dec 2009 16:18:05 -0800

2010 Contracts may not be out till after Christmas!

Although the 2010 Contracts may arrive just in time for the New Year, that should not present much of a problem as there were not many changes.

Four of the changes had to do with the "Broker Service Fee." It was simply removed from that paragraph in the Agency contracts. It will be negotiated with the Commission. Companies that collect that additional fee will need a new script to explain the charge.

There will be no choices for a buyer or seller to make on a "Closing Protection Letter." It will simply be mentioned in the boiler plate that it may be required by a Lender.

The "Enhanced Title Policy" will be handled in much the same way. If a 50/50 split is chosen for a combination policy both buyer and seller will split the cost of the Enhanced Policy due to new HUD-1.

There will be a new paragraph in all listing agreements where by a seller can instruct their agent as to the use of the information on the Internet. If a seller wishes their listing to be shared with other Real Estate sites on the net, other than MLS, there will be four questions to do with Blogging, Address, and Automatic Valuations to be addressed.

In addition to a few other minor changes, there will be two new forms. There is now a "Sellers Property Disclosure (Commercial)" and a "Real Estate Contract (New Construction)." The New Construction Contract is 13 pages including the FTC Insulation Requirements. It is to be used when a house has never been lived in, with the exception of a builder's own house that has only been occupied a relatively short time. The discussion about a "Punch List" is much better than the paragraph 15, b.

There will be a CE, Salesperson, and Broker course on January 5, 6, &7 using the New Forms at the AIRE classroom in Lowell/Cave Springs (Ark Hwy 264). Register and pay by credit card on our web site www.aire.us or show up and bring a check.

Green Country with no Sun

Chad Kumpe (Chad Kumpe Real Estate) — Fri, 26 Jun 2009 11:25:43 -0700

My wife Wendy and I got back from a Real Estate Educators Convention in Portland, Oregon. It was held in Portland because the title for the conference was "Going Green." Portland is reported to be the Greenest large city in the US of A. It truly has the most LEED Certified Buildings of any major city and the public transportation could be the envy of any metropolitan area. Most of the central city transport was street cars running on electricity and free. To go on longer trips to the suburbs it only costs about $4.50 both ways. All of that was pretty impressive until we learned the sun really did not come out till mid May and we never saw it for the week we were there until around 4:30 PM and some times from 6:30 AM until 7 AM. However, there were Solar Collectors on some of the roofs.

It is always interesting to get outside of one's area and find out what the rest of the country is doing. As for sustainability, the West is really into it. There was recycling everywhere, the produce in the local Farmers Market was almost all Organically Grown, and we went to a Winery that was almost completely solar. Nine months of the year (except for the Crush) they actually put electric power into the grid and the electric utility paid them for it.

The Midwest was wrestling with a multitude of empty houses. 15% of the homes unoccupied, 9% of the homes built since 2000 unoccupied, homes over $500K are just as likely to be vacant as homes under $100K. Michigan, Illinois, Ohio and Indiana were not expected to turn around till 2015 or beyond. Thankfully Arkansas, Texas, Tennessee and Oklahoma were predicted to come out of recession this year.

Another phenomenon that was explored was Social Networking. We learned that Twitter was like an on-going Cocktail Party with a lot of chit-chat similar to what would occur at a party. It was useful to some in keeping clients informed about the purchase and selling process, but only if they appreciated Tweets, more helpful, it seemed, in the big cities. Face Book seemed the most productive for Realtors, again mostly in the larger cities. But I do see some of my FBF (Face Book Friends) that are using the medium effectively in NWA. It depends quite a lot on the audience. I notice a good many fellow Realtors wanting to be friends, but don't hear much from them after the initial Hookup. A good Real Estate site is "Active Rain" with helpful information on the daily blogs. There was a mention of Plaxo and LinkedIn as a good way to connect with other professions and may be even to find jobs.

All total, to a country boy, it seems that once again things happen other places and finally get here, and certain thing work a whole lot better where there is a large concentration of people. In regard to "Hard Times," we are a whole lot better off than most

What's in a Tweet?

Chad Kumpe (Chad Kumpe Real Estate) — Fri, 29 May 2009 08:49:31 -0700

I have a lot of random thoughts and a Tweet only gives you 140 characters. Not being sure how many characters each of my random thoughts would use, I decided to distribute those thoughts on good old e-mail (with emphasis on old.)

The Government is sure borrowing a lot of money. Interest rates will surely rise. I remember the last time, when Carter was President. The fear is that some deserving folks will get left out.

Inflation is good for the Real Estate business but bad for the economy as a whole. Saving is good for the individual but bad for the economy as a whole. What an interesting time we live in!

Did you notice what HUD (government) has done about the $8,000 tax rebate? First it could be clamed with a re-filing of an individual's tax return. Then it could be clamed at the closing table. That second option lasted less than a day, as some wise person figured it would lead the housing market right down a path we had just left. Some banks were loaning the money in return for the assignment of the tax credit, but that mess up the borrower's ratios. Now some financial intuitions are making a kind of Bridge Loan to help "First timers" buy a house.

I noticed a superior court ruling in Alabama that declared the Broker Service Fee was a violation of RESPA, deciding it was an unearned fee. When that paragraph was first placed in our ARA forms, Andy Schaus warned Brokers to clearly define the specific service that the Broker Service Fee covered. It was not the paper work or the closing of the transaction.

Your closings may take longer than in past times. In order to assist the borrower in understanding the mortgage transaction and to prevent loan originators from pressuring appraisers about values, originators and appraisers have a fire wall between them now. A third party now selects the appraiser, and the buyers should get a copy of the appraisal to approve three to ten days before closing, depending on the lender's guidelines.

I know some loan originators that have a hard time understanding the appraisal forms. Will there be classes for home buyers on how to judge the validly of the collateral they are using for the mortgage? Add ten days to your projected closing time.

On a personnel note: I went to two CE classes this month. Yes, CE Instructors must do CE too. The first was sponsored by the Arkansas CRS Chapter. It was an excellent presentation on the anatomy of a Short Sale and dealing with REO (foreclosed) Property. We must thank those Realtors that tackle that tough part of the market. The faster those properties get out of the market, the quicker we will return to a semblance of order.

The second class was presented by Paul Bynum. It was the most carefully researched presentation on the causes of the Mortgage/Credit Crisis I have seen or read. He may present it again in this market area. It is worth a day's time. Get ready for information overload. I am still wondering what a Credit Default Swap was ever concocted to accomplish.

Speaking of CE, Tina Daniel and I will be presenting a six hour CE class the first Friday of every month at the Metro Board of Realtors and the first Tuesday, Wednesday and Thursday at our Lowell classroom on AR Hwy. 264 West, 3.6 miles west of the Lowell exit off I-540. We will be presenting weekend classes on the second and third weekends in July. Call me for start times. You may register at the door.

Thoughts from Mexico

Chad Kumpe (Chad Kumpe Real Estate) — Fri, 01 May 2009 06:57:00 -0700

A couple of weeks ago, Wendy and I got to go to Cancun, Mexico; not to lie on the beach, but to give away Wheelchairs for Rotary and The Wheelchair Foundation. I was impressed by the extent to which the area had gone in order to reduce their energy use in the hotels and commercial buildings. Everywhere the lighting was fluorescent. In the hotel, all of the lights were compact fluorescents and the power turned off when you left the room.

It occurred to me that in that area of Mexico, they were far ahead of us in Arkansas in the "Green Revolution."

While we were gone, tax day and the "Tea Parties" happened as well as Earth Day. From the pictures I saw in the papers, the participants in the Tea Parties were a whole generation apart from the participants in Earth Day. It seemed the older generation (Boomers and Silents) were complaining because the Federal Government deficit was so high that it will be passed on to the next generation and beyond. The people involved in Earth Day were calling for Greener Earth, a reduction in greenhouse gasses and reducing the depletion of our natural recourses.

The newspapers also reported that eleven of eleven "Land Farmers" were polluting central Arkansas streams and the water table with the waste water and chemicals left over from drilling for gas in the Fayetteville Shale. What a contrast - the older generation worried about the national debt which is only money and the younger generation worried about the health of planet earth and its air, water, and recourses. I kind of think I am on the younger generation's team. I hope we in Arkansas can become Greener and continue the good life for our children and grandchildren. Air and water are critically important. We can always print more money.

The Golden Rule vs The Platium Rule

Chad Kumpe (Chad Kumpe Real Estate) — Thu, 26 Mar 2009 09:18:45 -0700

Almost every one knows the Golden Rule. In a large part it is the basis for our Realtor Ethics and is quoted in the Preamble to the Code. The Platinum Rule challenges us to look beyond ourselves - not to treat others as we like, but as to their preference of treatment. The only way we will know how to treat them or communicate with them is to ask and observe. Many great observations come from the NAR "Profile of Buyers and Sellers" published each year. Knowing that the median age of first time home buyers in 2008 was 30 and the median age of repeat buyers was 41, should give a Realtor evidence that a newer, younger generation is becoming our Client/Customer. They perhaps do not desire to be treated nor communicated with the same way as the Boomer generation, of which most of us are a part.

Look at the wealth of information that can be gleaned from the Internet. Look at the length of time buyers spend looking before contacting a Realtor. (Nearly one year!) 94% of the buyers find the internet a "most helpful tool." Today's buyer did, most of the time, eventually purchase the home with the assistance of a Realtor. They did, however, narrow their search and almost 50% of the time find that Realtor looking on the Internet first.

Think hard about your presence on the World Wide Web: Is it all it could be? Do you have a whole bunch of pictures? Are they professionally done? Is your information correct, and how many sites does it appear on? Did you know there are web sites that are free and world wide in exposure in a language for a specific country?

In order to get with the buyers of now and in the future, we must communicate with them in the way that they want to communicate.

New Market report for February at www.ChadKumpe.com .

Some Intresting News

Chad Kumpe (Chad Kumpe Real Estate) — Mon, 02 Mar 2009 08:43:54 -0800

Some "Green Things" about the President's Economic stimulus Package: Lower interest rates if home owners to retrofit their homes, 5 Billion for weatherization of residential homes, 3 Billion for retro-fitting buildings in the private sector, 11 Billion for a "Smart Electrical Grid," 6.3 Billion for state-level grants for energy efficiency.

According to www.greenandsave.com the return on a residential programmable thermostat is 156.5%. That represents a return on investment in a little over six months. Installing an energy-efficient residential hot water heater can provide a 32% return; money back in an average of three years.

One of the bright spots in the job market is weatherizing homes.

New job description: According to Stefan Swanepoel in the book, "Trends Report 2009," the job description of today's real estate professional is being characterized as an interpreter of information and a process facilitator.

If you are a member of REBAC, you received a couple of great articles on "NEGOTIATING." When does negotiation begin in the transaction? You might be surprised at the answer. Alex Hagerty, ABR,ABRM,CRB,e-PRO,SRES points out the most overlooked negotiating opportunity is the Buyer Agent making the offer presentation to the seller. (MLS Policy Statement 7.73, Rights of Cooperating Brokers in Presentation of Offers)

If you are not yet an Accredited Buyer Agent you will have a chance to take the two day required course on March 19^th and 20^th in Lowell at the AIRE Campus on Hwy 264. Register now at www.AIRE.us . This also counts for your CE 2010 in Arkansas.

New market report for January at www.ChadKumpe.com .

Realtor Ethics, Education, and Market Data

Chad Kumpe (Chad Kumpe Real Estate) — Wed, 11 Feb 2009 09:53:14 -0800

Here's Some Good News!

When I attended the NAR annual meeting in Florida in November of last year (which was to celebrate the 100th Anniversary of the Realtor organization,) one of the first speakers was an Economist that spoke about the fall and rise of the market (not pretty.) The next speaker talked about the public perception of our profession and that was not pretty either. When Realtors were ranked among other professionals we were very close to the bottom. Most of that perception was blamed on the bad real estate market.
The Gallup Polling Organization has just released a study of 21 Top Professionals with regards to the public rating of Honesty and Ethics. The top four (in order) were Nurses, Pharmacists, High School Teachers, and Medical Doctors. All of these professionals were rated by two thirds of the public as having very high Honesty and Ethics and very little or no negativity. Nurses were rated Very High by 84% of the public (12% average) with Medical Doctors at 65% Very High (32% average and 3% low.)
We as Realtors were ranked in the middle (not the bottom!) We were ranked along with (in order) Journalists, Bankers, and Building Contractors. According to the Gallup Poll we were rated by the public at 17% very high, 52% average, and 25% low to very low. Our ratings were considered "average" in Integrity and a neutrally rated profession for Honesty and Ethics. Although this poll is not pretty, it is sure not at the bottom along with Lobbyists, Telemarketers, Car Salesmen, Congressmen, Stockbrokers, Advertising Practitioners, Business Executives and Lawyers (listed from #21 to #14.) The poll has a sample error of 3% plus or minus.*

If you, like me, are not pleased with the public perception of your profession, there are things you can do about it.
Keep in mind that over two-thirds of the home buyers today are born after 1965 (Gen"X"ers.) These buyers appreciate facts, honesty, and know a great deal about the real estate market by searching on the internet. This group expects the Realtor to help guide them through the process of buying or selling. They appreciate professionalism. The Realtors that excel have used education rather than the "School of Hard Knocks" to obtain a high level of professionalism.
There will be many opportunities to get the required CE as well as work toward a recognized NAR designation.

The ABR Designation can be obtained in this calendar year and one half of the GRI designation can also be earned by taking courses in Northwest Arkansas.
ABR required course March 19th at the AIRE Classroom on Hwy 264 W, 3.6 miles west of the Lowell Exit on I-540
GRI 201 "Environmental Issues" July 8th & 9th at the JBU
Classroom in Rogers, south of the new Target
GRI 302 "At Home with Diversity" August 3rd JBU
GRI 301 "Ethics and Professionalism" September 3rd JBU
GRI 202 "Unauthorized Practice of Law" Sept 29th JBU
All Realtors need these educational designations because they are a Badge of the Profession and distinguish one licensee from another.

*Data taken from an article written by Lydia Saad about the Gallup Poll of Nov. 7-9.2008

Paul Bynum has put out some charts that represent the market last year. "Fun to Ponder" they will be better next year.
If you would like that 2008 data or the advantages of an ABR Designation wright me at www.Chad@ChadKumpe.com

Things to think about in a down market

Chad Kumpe (Chad Kumpe Real Estate) — Wed, 21 Jan 2009 09:32:42 -0800

Some Thoughts about Things!

Our property inventory is still way too high. The market values have slipped another 5%. This is along with a 4% decline in the median price from '07 to '08; all total down from the high by a compound 9%. The total homes in inventory in the MLS are 5750 which is down by 20% from the 2007 high. We still have a 17.1 months supply of houses on the market. This data comes from Paul Bynum of Mount Data. You can check his analysis of the MLS at my web site www.ChadKumpe.com. Please do us all a service and recheck your listings to see if they are priced correctly for this market. We can collectively help this over-supply by removing listings that are over priced. Buyers are looking for bargains.

Donna Schoby of Ready, Set, Stage has pointed out another trend in our market place. Buyers are not looking for "Fixer Uppers" any more. A house has to be in "Move In" condition to be considered by a serious buyer. Look at your listings with a critical eye. If it needs a little paint, get it painted. If it needs carpet stretched, cleaned or replaced, get it done. This may mean the difference in a property shown or not even considered. If the seller cannot get the property into first class condition, consider giving up the listing.

Now that January is almost over, it is time to start planning for your education requirements for the year. The Rogers Board has four GRI Classes and one ABR Class scheduled:

ABR "E-Buyer," March 10^th,

ABR "Required two day Course" follows on March 19th at the AIRE classroom in Lowell/Cave Springs Hwy. 264 E

GRI 201 "Environmental Issues" July 8^th & 9^th,

GRI 302 "At Home with Diversity" August 3^rd,

GRI 301 "Ethics and Professionalism" Sept. 3^rd, and

GRI 202 "Unauthorized Practice of Law" Sept. 29th.

It will be possible to complete most of the classes for the GRI designation and all of the Classroom work for the ABR designation in this calendar year.

Things to think about in 2009

Chad Kumpe (Chad Kumpe Real Estate) — Fri, 02 Jan 2009 16:17:03 -0800

Happy New Year!!

I bet you got a whole lot of wishes for a much better 2009, I sure did too. Nothing tells the story of last year like the "Book of Lists" 8^th addition by the "Northwest Arkansas Business Journal." The top twenty firms saw their volume shrink by 21.19%. The top twenty-five agents saw increases in their business in only seven cases. It is beginning to appear that we won't be back to normal till 2010, but things should start looking better by the second quarter of 2009. Don't look for a "Bail Out" for NWA. We are a whole lot better off than a great deal of the total US market.

We have too much inventory!! We could be like Chrysler and stop producing inventory till the market balances out, but we have very little control of production. There is something we can do to help the situation. Take a look at your listings, when the general market conditions drop from 2.5% to 17% (Arkansas Democrat Gazette 12/31/08) like it has in NWA. Many of the existing listings have become overpriced. Take a look at your listings; do a new CMA; if the seller will not or cannot come down on the asking price; drop that listing from the MLS. If a seller feels they cannot come down on their price due to owing more than the property is worth, have them contact their lender about a short sale right away, and take the property out of MLS until the conditions of the short sale can be worked out. If the property is truly worth what it is listed for, take it out of the MLS and let it rest until spring. Keep in mind, "A property that no one will buy is worth nothing." (Dr. Jeff Colllins, Street Smart.) We can be part of the solution to a market in balance.

I just finished the book "The World is Flat" by Thomas L. Friedman. It is well worth reading because the future is here. In it he suggests that in toady's marketplace you CQ (Curiosity Quotient) may be more valuable than your IQ. As we are all becoming more and more connected via technology, we must do things in new ways. Try new things, learn new things, and take new courses of learning in new ways. Get a new professional designation, proof of knowledge causes trust. The Real Estate Profession needs a whole lot of help in that area of trust.

If you have not tried it, get on "Face Book." Try the social network www.Plaxo.com, and start a blog on www.Activerain.com. It is a new way to farm, and it takes time, but it's a lot easier than "knocking on doors."

The Realtors interested in education here in NWA are planning a good schedule of courses for next year - take advantage. Superior education courses are the key to superior results in a Real Estate Career. Our job, in addition to being marketers, is to be Educators.

For current market conditions in NWA click on the web site www.ChadKumpe.com.

Thinking "Green"

Chad Kumpe (Chad Kumpe Real Estate) — Thu, 18 Dec 2008 07:05:33 -0800

The current MLS stats are now on my web site, good video!

www.ChadKumpe.com

You know, when you buy a new car, all of a sudden you see a lot of them on the road. There has been just as many as before, but now because you have one, you began to notice others.

In early November I took the new National Association of Realtors "Green Course." It was two days from 8:30 AM till 5:00 PM both days with an 80 question test at the end of the second day. (Passing was 80%) The course started slow for me as I already recycled and used those funny florescent lights and turned down the HV/AC during the day when no one was home. But I soon discovered "Green" was a whole lot more than that. I had never heard of "Green Washing" I soon discovered it is a lot like "White Washing." It seems there is a lot of that going on in our industry.

Now when I look around I see some things that I really did not notice before. The Clinton Foundation has teamed with our state to retrofit state buildings and adopt energy-efficient practices. (The Morning News 12-14-08) The former President form Arkansas said "This is the countries greatest opportunity to rejuvenate the economy and create a safer, cleaner world." It starts here in Arkansas.

I read in the same paper (12-15-08) a group of statistics showing the increase in world temperature by 0.44 degrees from Ronald Reagan's term in office to George W. Bush's. Sea ice has dropped by one million square miles and CO2 emissions have increased by 3.63 billion tons in the same time. Yes, global warming is hard to ignore.

We are Realtors are stewards of the land. Just look to the Preamble to our Code of Ethics. I have always though of this challenge to be more local or no further than national in scope, but as our saying goes "there not making any more of it." What happens when it is all gone?

Soon you will have an opportunity to take a "Green Elective" course on Residential Housing. There will be other electives on Commercial and Property Management that may be taken on line just click on www.realtor.org .

It is our opportunity as Realtors to lead the way in this rescue of our planet, our Dirt. Here are a couple of web sites that may be of interest to you: To calculate your own Carbon Footprint www.earthlab.com and for those who missed it here is a great short video "The Story of Stuff" www.storyofstuff.com.

The Real estate profession has taken a terrible beating in the public eye; here is a way to start our redemption. THINK GREEN!

Our friends at DesignWorks have created a website that has the most complete and up-to-date events and happenings in Northwest Arkansas. This could be a good addition to your relocation packages as sending sites like this to your out of state prospective clients gives them more reason to move here. Go to www.NWAEventsOnline.com and browse the site. Be sure to sign up for their weekly events newsletter too!

We are the most in tune Real Estate professionals in Arkansas

Chad Kumpe (Chad Kumpe Real Estate) — Wed, 12 Nov 2008 07:43:30 -0800

We in NWA must continue to stay on top of the ever changing market. See you at "Street Smart" and "Sky Line".

What I saw

Chad Kumpe (Chad Kumpe Real Estate) — Sat, 01 Nov 2008 09:55:28 -0700

I was in Hot Springs yesterday. The front page story on the "Sentinel Record" was about a large home under construction. There were no utilities connected to the house but it burned. I think this is another effect of the foreclosure problem. This may yet effect the builders or owners credit rating.

It is a beautiful day in the Ozarks. I will be out on Beaver Lake this afternoon.

Chad Kumpe, GRI,ABR,CRS,SRES

Broker Owner Chad Kumpe Real Estate

Foreclosures and such

Chad Kumpe (Chad Kumpe Real Estate) — Mon, 27 Oct 2008 09:49:34 -0700

There is allot on the Internet about Foreclosures and I think I know why. It seems most seller are wwaiting on 1, The election to be over. 2, Prices to stabilize. 3, the market to go back up. Most buyers are 1. Waiting on the election to be over. @, Prices to stabilize. #. Prices to go down further. There is one very large and growing section of the market that is not wwaiting on any thing and the is the foreclosure market. It is a hard market but it can be a good source of income in these times. Financial institutions need to sell. It must be working because that is why you see so much about it on the Internet. REBAC has a great class on Foreclosure. It will help an active agent tap into this market.

The leaves have really started to turn in the Ozarks. The first frost was last night. This week will be very colorful around Beaver Lake.

Chad Kumpe, GRI,ABR,CRS,SRES

Broker Chad Kumpe Real Estate

Beaver Lake in Arkansas

Markets-Financing & Fall Colors

Chad Kumpe (Chad Kumpe Real Estate) — Wed, 22 Oct 2008 08:11:37 -0700

From all indications the real Estate Market is improving in Northwest Arkansas. The Chamber of Commerce had a Job Fair that had 2700 people register and filled prospect lists for 2500 jobs. Reports from Street Smart indicate the 325 jobs are being created per month. The MLS inventory of homes on the market is continuing to go down. It's not like 2005 or 2006 but some agents are reporting multiplel offers again.

In a discussion among seasoned agents, the subject of "What is an agents responsibility in helping a buyers with financing?" Do we go back to the '70s and attempt to pre-qualify buyers with housing and debt ratios (front end, back end) or do agents leave that to the lender? Some lenders have put buyers into loans that worked out badly and some buyers made bad decisions. Did agents fall down on their jobs as educators? This will be an intresting discussion.

The fall colors have arrived in the Ozarks. We were on Beaver Lake last week end and the trees are just about to bust out in their colors. The rain and cold front will be the tipping point. The forests will be brilliant this weekend.

Chad Kumpe, GRI,ABR,CRS,SRES

Principal Broker, Chad Kumpe Real Estate

E-Pro & Beaver Lake report

Chad Kumpe (Chad Kumpe Real Estate) — Wed, 15 Oct 2008 16:00:09 -0700

I heard and saw a good presentation on E-Pro by Saul Kline this morning. This seems like a very worth while designations for Realtors.

We had rain again this morning and Beaver Lake is almost up to the damn height. It would be hard for a party barge to get under the Hwy. 12 Bridge. The colors of the leaves will turn in bout 10 days. I now have a Beaver Lake Weather Station on my web site.

Chad Kumpe, GRI,ABR,CRS,SRES

Home values

Chad Kumpe (Chad Kumpe Real Estate) — Thu, 02 Oct 2008 14:36:16 -0700

Although many reporting services are saying home values have falled as much as 16% that is not the case in the Rogers Arkansas and Fayetteville Arkansas markets. The Rogers Arkansas home prices are up slightly and the Fayetteville Arkansas values as indicated by sales are up 4%. 350 jobs are being created each month due in part to the strength of Walmart and their suppliers.

Beaver lake is still brimming full and will not recede much till November. This will make for excellent fishing in future years as the spring spawn has plenty of cover from predators.

ChadKumpe GRI,ABR,CRS,SRES

Principal Broker, Chad Kumpe Real Estate

This and That about NWA

Chad Kumpe (Chad Kumpe Real Estate) — Wed, 24 Sep 2008 17:27:57 -0700

I just finished my teaching duties before license renewal, Have a plan for Board education for 2009. Looks good, a great many licensees in class this month were very ignorant about the use of the Internet. They mostly leave it up to the MLS or their company. Early next year the Rogers Board will provide the ABR elective "The E-Buyer" Hope we get a good crowd.

The big news at "Street Smart" today was the market reduction in residential inventory and the big reduction in office space vacancy in Bentonville. There is still a good number of people moving to NWA at least 325 per month. Job creation is healthy. We may know after the first quarter of 2009 that we have hit bottom in this market and will have a good 2009.

Beaver Lake is still very full and due to the fact water is still filling all of our upper White River lake the Corp of Engineers will not start lowering Beaver Lake till November. I pity those folks with private docks. There will be allot of adjusting this winter.

Education

Chad Kumpe (Chad Kumpe Real Estate) — Tue, 16 Sep 2008 17:20:26 -0700

For the last several days I have been teaching the NAR Quadrennial Ethics Course. It used to be that was the broker's job. Brokers' responsibilities have become greater and more complicated, thus enter the specialist. There also seemed there was a time several years ago when Realtor knew and just did what was right and not what became possible. By doing what was possible we got some of our customers and clients in trouble. Several lost their homes and some are in trouble with their mortgages today. The whole mortgage mess cannot be blamed on the Mortgage Brokers and originators. Realtors have to share a portion of the blame.

Ike passes through Northwest Arkansas this weekend. It sure filled Beaver Lake right up to the top of the dam. the ground was still saturated thanks to Gustaf so the rain water ran off right into the lake. The run off was quick and clear so there was no debris or mud line this time. It is still a great time to be on Beaver Lake, but tall boats can't get under the Hwy. 12 bridge yet.

Chad Kumpe, GRI,ABR,CRS,SRES

Principal Broker Chad Kumpe Real estate

Arkansas Realtors Convention - Little Rock

Chad Kumpe (Chad Kumpe Real Estate) — Mon, 08 Sep 2008 17:01:16 -0700

The full board of the ARA has just met. There 353 less Realtors than this time last year. some markets are returning to normal and the prediction is that membership will be up next year. the Arkansas Realtor Political Action Committee reported that they have raised 100% of their goal but only about 1/3 of the members donated. The new ARA Building is coming along very well and on schedule.

A side note about Beaver Lake. Due to the rains from Hurrican Gustof the lake is back up. The cuttoff a Wildflower Point is running in 9 feet of water. The island across from point 9 across from Larue is 15 feet under water and big boats can no longer pass under the Hwy. 12 bridge. Both generators are running so it won't be long till the lake is back down.

Chad Kumpe, GRI, ABR, CRS, SRES

Principal Brober, Chad Kumpe Real Estate

Sales data for NWA

Chad Kumpe (Chad Kumpe Real Estate) — Thu, 28 Aug 2008 08:37:19 -0700

I now have a link on my web site that links to Paul Bynum's Mount Data monthly charts and graphs. This information is broken down by city and would be very helpful at setting proper range of value when helping a seller price their property for sale. For more information you can reach Paul at PaulBynum@MountDate.com

Chad Kumpe, GRI,ABR,CRS,SREA

Principal Broker, AIRE Instructor