There is no denying the market is bad.  In fact, BAD may be an understatement.  In slow economic times, it may be important to obtain financing to help your business grow.  Your greatest ally in financing can be your Consumer Credit Report.  I have spent years as a credit analyst and one thing is for sure:  your personal credit score is the top indicator of perceived risk to a financial institution.  If you have great credit, lenders will view you as low risk an you will be able to obtain financing at a low cost.  However, if you are a perceived credit risk, be prepared to pay higher fees for less money on a loan or line of credit.

The best thing you can do to protect yourself and qualify for better rates is to monitor and maintain your credit profile.   Research indicates that 70% of credit reports have false or inaccurate information.  So, 7 out of 10 people have a chance to increase their credit score and pay less for financing.  By reviewing and monitoring your credit, you will be able to challenge false information, thus increasing your credit score and saving you money.  You can challenge false information by calling the credit bureaus or sending in a letter.  Until negative information is changed or removed from the report, you may be perceived as a higher risk to potential financiers.  Setting an account up with Equifax.com, FreeCreditReport.com or TrueCredit.com is a good start.

In times like these, ever dollar counts.  Take a look at your credit report and make sure false reporting is not tarnishing your credit record.

Gas is $4 per gallon right now and I drive a truck with a V-8 engine.  I admit, it's probably not the smartest vehicle for a Realtor to drive....  Needless to say, the cost of gas is killing me right now.

(This is NOT my truck.  I am from Texas, but even THIS truck is ridiculous to me...) 

So, as I cried myself to sleep looking at my gasoline bill, I was reminded of a story I read at kiplinger.com- "How to save money on practically everything".  Some ideas are obvious, some are not, but it really shows how small changes can make a big difference when gas is at $4 a gallon!
For example, if you eat out twice a week just order water.  Two glasses of tea at $2 plus tax and tip add up to $5 per meal.  Switching to water for 2 meals a week saves $10/week or $500 per year.  Here's the link to the article:
http://www.kiplinger.com/features/archives/2008/02/savemoney.html
I'm sure you'll find something that works for you in the various lists.

With the nationwide real estate market the way it is, a smarter, more savvy buyer has emerged.  The last 5 first-time buyers I have helped had told me that they already researched mortgage rates and trends and know exactly what they are doing.  In each case, after our initial meeting, I sent them to get pre-qualified for a loan.  3 of the 5 new buyers have come away from their initial mortgage consultation confused and disappointed.   I think it can be a bit overwhelming for a first-timer. Needless to say, I spent a lot of my time explaining the fact that there is much more than an interest rate that goes into buying and affording a new home. 

Zillow is launching a service for potential mortgage customers to get anonymous quotes for loans.   From what I understand, mortgage companies will be able to see each other's quotes, creating a competitive marketplace.  I wonder how my future buyers will take advantage of this.  There is not much detail given on the mechanics of this service, but I bet it is successful, and I bet it will bring a whole new dimension to my initial meeting with new customers....... 

Do any of you have any more details about Zillow's new mortgage quote service? 

Success in real estate, as with any service-based industry, relies on strong and lasting relationships.  If you treat your clients right, sooner or later they will return the favor.  But if you treat them poorly, they will NEVER forget.

I bought my first home before I became a Realtor.  I went through a "Realtor" when I bought the house.  I put Realtor in "quotes" because this man did NOT reflect the professional, caring attitude that I have come to find synonymous with being a true Realtor.  Just before our first showing appointment, he called asked me to come pick him up from his house because he was low on gas.  Now, to be fair, I was in my early 20's and very naive to the Real Estate industry.  Plus, I typically give people the benefit of the doubt.  But this guy never seemed to care about my needs.  On several occasions, he mentioned needing to close a deal soon, so he could earn a commission to pay for some marketing costs.  This guy was AWFUL. 

I will spare you any further negative detail, and get to my point. 

While he showed poor service during my purchase, the worst part was what happened after I closed on the house..... NOTHING!!  He did NOTHING after I got the keys to my first huge investment.  No congratulations card, no "just calling to say hi" phone call, no NOTHING.  The guy simply disappeared.

I became a Realtor a few years after that, and now, every time I help a client, I have this guy in mind.  I do not want to be the cause of a bad experience (or be the subject of a bitter blog).  While we are paid for the service we provide currently, I think our true value is revealed years down the road when we still know and correspond with our very first clients.  You don't have to be the smartest or best-looking agent, you just have to care.  The only way to build a successful, long lasting business is to cultivate and maintain your professional relationships.

I'd like to think I was a genius.  I'd like to think I could control every facet of my personal and professional life.  The fact is, there aren't enough hours in the day to get everything taken care of effectively on my own- especially my finances.

Last year, my wife and I met Mark Callahan.  Mark is a financial advisor for Waddell & Reed  and he has helped us a TON.  From life insurance to money market accounts, Mark has worked with our finances to help us begin to secure our future.  He has also helped my finances indirectly by helping me to network and build my list of contacts and preferred vendors.

My question to all of you seasoned veterans is: With an inconsistent cash flow, what has been your best financial tool?  Do you have a system or some sort of planning that helps with how your commissions are used?  Any advice would be appreciated.  Thanks!

The Federal Reserve cut its key overnight interest rate by three-quarters of a percentage point this morning in an effort to stave off fears over a potential U.S. economic recession. That sounds nice.  But, as Realtors, what does that mean for us when dealing with our past clients?

If our clients currently have an interest rate around 6.5% or higher and plan on staying in their homes another 3+ years, they might want to look into refinancing. If they refinanced a $200,000 loan to 5.5% down from 6.5% they will save roughly $129/month on thier mortgage payment.  If you are a Realtor like me, I am sure you have relationships with great mortgage companies, so referring past customers for refinances can be yet another service for you to provide to keep the cycle flowing.

A college friend of mine and current Dallas Realtor named Jeff Duffey posted a blog with similar info via his personal blogsite, but he hasn't put it here on ActiveRain.  So, I decided to link it here.  I think it's important to keep our past and current clients up to date on the market conditions, and Jeff provides great service for his clients up in the Big D.

I must start this blog by letting you know that I am very new in Real Estate.  I've only been a Realtor for 10 months or so.  I'm a newbie.  My Real Estate business is growing (slowly but surely) and I am already starting to develop some very valuable business relationships.

I think the word "value" is often misused.  Value, to me, is the long-term worth gained by purchasing or obtaining relationships or items.

I like to use furniture as a metaphor to define my feelings on value.  I could go out and purchase a nice looking armoire made from particle board for $200.  This armoire will hold a television or my freshly pressed dress shirts.  It will look nice in my guest room.  And it is CHEAP!

Alternately, I could purchase a solid teakwood armoire and spend $1000.  This armoire will still hold a television and those nice shirts of mine.  It is sturdy, and it will no doubt look much nicer.  But do I want to spend $800 more for the same functionality?

YES I DO- and here's why: 

In 5 years, the $200 armoire begins to sag and warp.  The woodgrain venir is starting to peel off.  The top has bubbly round formations from when Uncle Ernie used to set down his scotch and water and the condensation from the cold highball glass has warped a warty circle into the "wood".  At this point, I have no other choice but to donate it to Goodwill or put it on Craigslist for $23 for a needy college student.

The solid-wood $1000 armoire, on the other hand, still looks the same in 5 years.  There is no sagging or warping.  There is no chipping or peeling because there is a nice finish on the natural grain of the teak.  Even Uncle Ernie can't warp this solid wood with his sweaty libations.  No, this piece will be in the family indefinitely.  It is a classic, quality-made piece of furniture.  I will be able to pass it down to my grandchildren (and I don't even have kids yet!). This solid wood armoire has infinitely more value.

I channel this metaphor when building business relationships.  I always look create the most valuable partnerships possible.  For example, I have developed a great relationship with Dominik Kilpatrick at Sente Mortgage (formerly Milestone Mortgage) in Austin, TX (http://www.inspiringclients.com).  Dominik has helped me with my personal mortgage needs and has introduced me to countless other services and business partnerships that are proving to be increasingly valuable in my personal and professional life.  Dominik is the teak armoire in a sea of particleboard furniture.  My initial "investment" with Dominik will be repaid 10-fold with all of the doors he has helped me to open for my business.  He handles his business with the utmost dignity and professionalism.  I refer ALL of my buyers to Dominik for their mortgage needs, because he offers value far beyond the price of the loan. 

I strive to offer the same value to my clients in their real estate transactions.