William Boughton's Blog

Short Sales from an escrow perspective

William Boughton (Old Republic Title and escrow of Hawaii ) — Fri, 07 Dec 2007 19:44:44 -0800

Aloha

As part of my ongoing committment to providing quality information to the real estate community, please see Old Republic's latest information release on Short Sales. I hope this information proves valuable to you. For those of you in the state of Hawaii, we are scheduling classes on this topic on all islands taught by our own Jeannie Wenger. Jeannie is a 28 year veteran of our industry and a true resource of knowlege. I will post the dates of upcoming classes, or you can go to www.oldrephawaii to see our class calendar. Happy Holidays!

Are You Creating new Homebuyers Part #3

William Boughton (Old Republic Title and escrow of Hawaii ) — Fri, 23 Nov 2007 17:21:03 -0800

Aloa All

As part of my ongoing rant about how more agents (especially here on Maui) should be focusing on the first time buyer market, I thought I'd share an ad piece I am using to encourage the agents in my own area to work toward changing the lives of people who don't realize they can actually enjoy the financial benefits of ownership.

The idea is to identify the types of properties people at varying rent levels can actually afford and include a flier like this along with other value-added information such as the items I have shared in previous postings.

Get people thinking about their financial security, and how responxsibly executed real estate ownership can help them solidify their financial future.

There ARE qualified buyers out there! Many of them just don't realize it. The current market is a land of opportunity for the those willing to step beyond their media induced fears, and start to think bigger for their lives.

Build a team of solid lenders and wise financial advisors. Do the research and put together a collection of good financial information and get it into the hands of people who need it! You will generate sales, build income, and change lives for the better!

Are You Creating New Homebuyers? Part 2

William Boughton (Old Republic Title and escrow of Hawaii ) — Wed, 07 Nov 2007 18:52:03 -0800

Aloha!

In my last posting I presented my opinion that not enough agents are siezing on the crucial first time buyer market. Not only does this market present a real land of opportunity in our current market, but it is these very people that will fuel the future upper end of the market. The agent that changes the lives of renters will reap the future dividends.

Below are a couple tools that can help you to show present renters the real cost of renting in the long term without the benefit of tax advantages and asset appreciation, as well as helping them to understand how much home they can really afford.

Be sure to contact your local Old Republic sales representative for your marketing needs, and support them with your business!

Are you creating new homebuyers?

William Boughton (Old Republic Title and escrow of Hawaii ) — Mon, 05 Nov 2007 17:38:06 -0800

Yes, it is a reality that the real estate market is not the same as it was even a year ago. The landscape has indeed changed. This does not mean, however, that it is a lousy one. Every market holds opportunities for the agent that seeks them out.

Something I am having a hard time getting my head around is the fact that so few agents are marketing to the very group that can best help to unstall the current market. FIRST TIME HOMEBUYERS!

I consistently hear from agents the following predictable lines:

"There just aren't any qualified buyers out there.

"Everybody is sitting on the fence waiting for the market to bottom out."

"The loan programs just don't exist anymore."

The fact is, there really are qualified buyers, they just don't know it and no one is bothering to educate them!

The only way you know when the market has bottomed out is when the prices start to go back up and you've missed it.

Creative loan programs do still exist out there. You just need to develop a strong partnership with a strong lender that is committed to getting the job done, AND WILLING TO THINK OUTSIDE THE BOX A BIT.

There are plenty of young renters out there that simply don't know the powerful opportunities out there for them right now. Think about it. Prices are on the decline, realistic sellers are motivated to negotiate, and mortgage rates are still near historic lows!! There are also an increasing number of opportunities posed by the increase in foreclosures on the market in certain areas.

I recently listened in on a teleconference sponsored by my company given by Darryl Turner, that really crystallized my thoughts on this subject, and has prompted me to write this post. What follows is my rough synapsis of Darryll's conference, with a little data from my own study thrown in.

The first problem is that most folks are turning to the wrong sources for information. CNN (Constant Negative News) is not a definitive authority on the real estate market!!

Most renters don't know how much tax THEY PAY every time they write a rent check. Assuming a typical renter is in a 28% tax bracket, they actually pay out 38% tax on their rent payment. The end result is that a renter paying $1500.00 in rent can actually afford a mortgage payment of $2083.00 per month once the tax advantage is factored in. This means they could technically afford a house in the $290,000.00 price range. Additionall, most renters have not given much thought to how much their rent payments add up to over time. Using the same rent amount of $1500.00, a renter will have paid out $232,923.00 after 10 years, $616,551.00 after 20 years, and a whopping $1,248,388.00 after 30 years. These amounts also figure in taxes paid on rent.

I'll let you all in on a little secret. My wife and myself have been renting for the last six years in the challenging Maui housing market. We have always paid approximately $1500.00 in rent. We have in the last couple years been doing the work of organizing and planning finances, saving reserves and solving inaccuracies in our credit reports. Our income is also very average for our age. We now expect that we will buy our first home within the year, AND finance it at 100%, keeping our reserves liquid. We also plan on buying right here on Maui.

We came to the conclusion that this is possible for us by reading good information, and asking a lot of questions of wise people. Anyone can do the same thing armed with and acting on correct information. Not a single realtor EVER made an attempt to market to us as first time home buyers!!

There are a lot of well qualified buyers out there just like us, and many many that could be if their eyes are just opened to the possibilities before them! If you have not marketed to this largely untapped source of business, you really should! Start gathering farming data for renters in your area, and scour your sphere for folks that are still renting. Your local title marketing rep is always a good source for this type of information. Develop a well thought out marketing strategy to cater to these folks. Good information is key. Start sending these folks valuable information as to their potential to be owners. Walk your farm and get to know these people personally. Some may need information and resources for financial planning and budgeting in order to position themselves. Others may already be well positioned. Be the agent that changes lives! Yes, some of these clients may require some additional attention, but in the long run they will appreciate you, refer to you, and use you again when they are ready to keep moving up the housing ladder. Don't forget, the bottom feeds the top!

From my own experience and through the information Darryl Turner has shared, I am convinced that any agent who thoughtfully and dilligently works the first time buyer market WILL see results. Yes there are always challenges and work to be done, but that sure beats sitting on your hands waiting on "the market" to change, all the while, not making any money.

I'll leave you all with a final thought from Darryl. "No individual can change THE MARKET, but we can all change OUR OWN MARKET!"

Are you creating new homebuyers?

William Boughton (Old Republic Title and escrow of Hawaii ) — Mon, 05 Nov 2007 17:37:54 -0800

Something I am having a hard time getting my head around is the fact that so few agents are marketing to the very group that can best help to unstall the current market. FIRST TIME HOMEBUYERS!

I consistently hear from agents the following predictable lines:

"There just aren't any qualified buyers out there.

"Everybody is sitting on the fence waiting for the market to bottom out."

"The loan programs just don't exist anymore."

The fact is, there really are qualified buyers, they just don't know it and no one is bothering to educate them!

The only way you know when the market has bottomed out is when the prices start to go back up and you've missed it.

The first problem is that most folks are turning to the wrong sources for information. CNN (Constant Negative News) is not a definitive authority on the real estate market!!

I'll leave you all with a final thought from Darryl. "No individual can change THE MARKET, but we can all change OUR OWN MARKET!"

Hawaii State Conveyance Tax Rates

William Boughton (Old Republic Title and escrow of Hawaii ) — Mon, 29 Oct 2007 18:08:08 -0700

Aloha!

Sellers of Hawaiian Real Estate are often dismayed and surprised at settlement time to see a meaningful portion of their proceeds gobbled up by Hawaii State Conveyance tax. It is always a good idea to let your listing clients know about this tax up front so as to avoid any unpleasant experiences at closing time. Below you will find the current rates as put forth by the Hawaii State Department of Taxation.

Dont forget to contact your local Old Republic Marketing Representative for a quick and accurate estimated closing statement as part of your listing presentation! Your clients will thank you for it!

HB1308 Conveyance Tax

Act 156, SLH2005

Effective July 1, 2005

For all transfers or conveyance of real or any interest

$1 to $599,999.99 .10 per $100 Round to nearest

$600,000 to $999,999.99 .20 per $100 Round to nearest

$1,000,000 and above .30 per $100 Round to nearest

For the sale of a condominium or single family residence for where

the purchaser is ineligible for a county homeowner's exemption

$1 to $599,999.99 .15 per $100 Round to nearest

$600,000 to $999,999.99 .25 per $100 Round to nearest

$1,000,000 and above .35 per $100 Round to nearest

Aloha

William Boughton (Old Republic Title and escrow of Hawaii ) — Wed, 12 Sep 2007 00:43:55 -0700

Just joined the group. Looking forward to participating.