I see it all of the time. I'm somewhere teaching a class of realtors about social media. One of them will come up to me afterward and say, "Could you take a look at my Facebook page?" I am usually quite happy to oblige. I open up their page and "Yikes!" While Facebook is a great tool, it should be noted that it is not a "traditional" selling tool. Let's take a look at some common mistakes.

1) "The hard sell"-Constantly asking for referrals, pushing your services and generally trying to shove real estate as the solution to every problem and question is annoying. You'll get yourself de-friended quick for this one.

2) "Real Estate is my life"-Yeah, we know because you won't ever shut up about it. I had a buddy of mine once who loved working out and lifting weights. That's great, but it's all the guy ever talked about. Everyone wanted to choke him after about 15 minutes. Social media is just that. Social. Get it? Talk about or even better ask about something other than real estate. People will appreciate the interest you have in them.

3) "Listings, listings and more listings"- Hey guys, this isn't the Sunday paper. You're not paying for these. Don't put every listing you have on your Facebook page. If people really wanted to see listings they would look them up on the internet.

4) "What? I need to give something of value?"- You better believe it. In social networking it is actually expected that you are there to actively participate and, yes, to give. The referrals correlate directly with the amount of credibility and trust you create by showing you are willing to give unselfishly.

So take a minute to review what you're doing on your social media platforms. Better yet, have another realtor or associate take a look and give you an honest assessment. You might be surprised at how you're coming across to someone else.

It is amazing to me the amount of confusion that abounds among homeowners as of late. Should I refinance or wait? Did my home go down in value? Should I pay off credit cards? Will I have a job tomorrow? What steps will the government take (or not take) to help out homeowners? With all of the talk in the media of this new program and that new program, bailouts, sour markets and consumer confidence in the tank; it's no wonder everyone is suffering from a little "analysis paralysis". There is just too much info.

I understand this, but the only thing you can control is your action.

First, don't count on the government doing a whole lot to help. They may be well intentioned, but their programs usually aren't feasible and rarely work. FHA Secure and the Hope program were both supposed to help around 500,000 homeowners each, but both died quick deaths. The guidelines to qualify were difficult, if not impossible, to meet.

Should you refinance?

Well, if you plan on staying in your home for at least 5 years, you probably should at least take a look. Don't assume you know what your credit looks like or if you qualify. The mortgage market has changed dramatically even in the last 6 months. Call your loan officer and talk to him or her. After all the rates are below 5% for a 30 year fixed rate. It would be crazy not to take a look and won't cost you anything to have a qualified individual give you a mortgage analysis.

Create a cash reserve

Now is the time to be socking money away. If you do refinance with a lower payment; consider putting the money you would have sent to your lender in a savings account. Look for little ways to cut costs. Let's face it. A lot of people are losing jobs right now and money in the bank is, well......... money in the bank.

If you have a home equity line you may have noticed the minimum monthly payment going down. Take a look at what your payment was a year ago and continue "paying" that every month. Simply take your monthly equity line payment now, subtract it from what you were paying a year ago and put the difference in a savings account.

Pay down debt

Now is a great time to negotiate lower rates and maybe even close some of those extra cards. Did you know you can close a credit card and negotiate the rate down to less than 5%? I did it with a Bank of America card I had. Boy, does the balance go down fast when the interest rate is low! Know something else? The less you owe on credit cards in relation to your credit line; the better your credit score is! It shows the creditor you are responsible with credit, even if it is available to you.

Last, but not least, update your resume

Hey, nobody likes to talk about it, but the reality is that talented people with education and skills and experience are losing their jobs every day. That's not a dig on them. Companies simply have to cut costs to survive. Having that resume fresh and ready to go certainly helps you mentally to cope with both the possibility and the realty of it if it happens.

So make a plan! Take control! You'll feel so much better and you'll be better prepared to handle this downturn and be that much smarter and confident when it turns around.

I continue to hear terms like "frozen markets" and "credit crunch" on the various media outlets. While I understand the fear in the market, is it really that bad or just a lot of hype?

It seems that every other day my business partner and I are having this discussion. The question we always come back to is, "Are we denying credit to anyone now that we would have approved a year or more ago?"

Well, let's have a look. If you have a 543 middle score with no money down; I can't get you a loan. Guess what? A year ago I couldn't get you one under those circumstances either. No real change.

And speaking of credit score; an FHA loan was possible with a score of 580 a year or so ago. Now lenders want a 600 or sometimes a 620 score to get it done. Is that a "credit crunch"? I don't think so. It's higher, but not significantly so.

Of course, you have the stated income loans, no-docs and no income verification loans that have gone bye-bye, but as a percentage of the overall market, unless you lived in California or Florida those weren't as prevalent as most people believed. Most of our loans were and always have been your standard "conforming" fixed rate loans.

And speaking of those conventional, conforming loans; how difficult are they to acquire? Used to be that a score of 720 would get you the best rate available. Now you need at least a 740 for that. A loan of 95% with a 5% down payment would also keep you in conforming land, but most lenders are limiting that to 90% loan-to-value. It's an additional 5% down, but that's not going to stop someone with good income and credit from buying a home. Again, not much of a difference.

Is 100% financing gone? For the most part yes, however you can still obtain a USDA loan or a VA loan at 100% if you were a veteran. Down payment assistance bit the dust back in October so you can no longer obtain an FHA loan with no money down. You can however get a gift from a family member for your down payment effectively still making it a 100% financing deal.

These things altogether do show a bit of a tightening in the credit markets, but certainly not a "frozen market" or "credit crunch". The markets are actually moving back to the place they were 10-15 years ago when a more prudent and realistic approach to lending money was the rule, not the exception. It's not the wild west of lending anymore like it was 2-3 years ago, but finding a loan is hardly impossible.

Take a look at the Charlotte Business Journal today. http://www.bizjournals.com/charlotte/stories/2009/03/09/daily36.html Foreclosures in North Carolina according to Realty Trac are down by 50% from the same time last year!

There actually is a ton of positive news out there this week. The stock market is up over 500 points this week. Companies are actually announcing that they are hiring again. Locally are we starting to come out of this recession? This thing has already lasted longer at the end of April than any other recession we've had since World War II. What about you guys in other parts of the country? What are you seeing out there?

I know you've all been deluged with a huge amount of bad news regarding the financial markets. The mortgage market is just one of them. I recently found a website that is a fantastic source of upbeat information regarding the economy. One could get the idea very quickly from reading the articles that the majority of the good news is not being reported by major media outlets. The website is www.positiveeconomicnews.com.

I would encourage all of you to not only take a look at it, but to actually use the information given and pass it around to your friends, family, co-workers and customers. It paints a very different view of what is going on than you hear from in the major media outlets.

So take minute to go to the website and take a look. I can guarantee your spirits and hopes will be lifted. Remember, the market is as much about perception as reality and right now we need all of the positive perception we can get.

Here is an article from this morning's Charlotte Observer. http://www.charlotteobserver.com/597/story/402351.html

It talks to a Wachovia economist who states that "Interest rates haven't been this low for a sustained period of time in the past decade".

So how can you capitalize on this in your business?

1)       Get into your database. Call every fence-sitter and looky-loo you have and show them this article.

2)       Do a direct mail piece to your past customer list. Postcards are great. Needs to only be informational. They won't necessarily need your services right now, but the average person has direct knowledge of 2-3 real estate transactions per year. You need to be top of mind.

3)       Get an e-mail piece together regarding the same thing. Copy this link. The average Joe out there has no clue what is happening, but he's starting to due to the fact that the media won't shut up about the Treasury department trying to get mortgage rates on purchases down to 4.5%.

4) Blog it! Put it on your website. Offer a special promotion if they act by the end of the year. Put a time frame on it to get them moving. You want to get it online or in your blog with pertinent key words so you can up the organic traffic to your site.

Take a look at this and don't wait. The time to act is now.

Happy hunting!

Reuters reported today that online retail spending rose 15 percent on the Monday after Thanksgiving from a year earlier. Sounds pretty good doesn't it? Take a look at the link here. http://www.reuters.com/article/internetNews/idUSTRE4B25Q220081203It seems that online spending reached $846 million on Monday. It was the second heaviest online spending day ever.

Everyone who knows me knows that I have always said that consumer confidence is the only thing that will save this economy. It is actually the only thing keeping the economy down right now.

Think about it. What is depressing the stock market right now? Are stocks inherently less valuable than they were a year ago? You could argue that some of them are due to sales forecasts and revenues being lower than were expected, but that is still a function of consumer confidence and the consumers willingness to purchase the product. However, the physical assets of the companies are still in place. The plants, equipment, raw materials, labor force and real estate owned by these companies are all still in place. They have not been diminished in the least. Sure there are some issues regarding some companies' goodwill and reputation, but the physical assets still physically remain. Get it?

The question still remains... just what will jump start the economy?

Well, falling gas prices will help. Keep in mind that retail sales, both in-store and online are probably being positively affected by the drop in gas prices. A recent article in the Kansas City Star computes that the average 2 car family is saving about $200 per month compared to last July. Where do you think a significant portion of that savings is going this year? I would say Christmas. The drop in fuel prices will also save money for those people this winter who rely on heating oil and natural gas to warm their homes. This will further ease pressure on those pocketbooks.

There is something else. Food and staple products we use every day aren't dropping as we'd like. There are 2 important reasons for this. Number one, diesel is the fuel of choice in large trucks that transport these products. Although it is cheaper, it hasn't fallen at the rapid rate we've seen in unleaded gasoline, but it is lower and will continue to fall. Number two, fertilizer is petroleum based and many of the products on the shelves including, (can you believe it?) disposable diapers are petroleum based as well. These products were made well in advance of them being on the shelves and were made with previously more expensive oil-based products. You should expect the first items you see coming down in price to be the items that are daily delivered, perishable and don't use petroleum products. (eggs, milk and fresh produce)

Let's take a look at some other things. How about housing? It has suddenly become more affordable for many people to become homeowners. In Southern California existing home sales are up 65% since last year. What happened? Housing prices dropped. You had a huge pent-up demand of people who thought they were doomed to be lifelong renters. Slash 25-30% off the price and suddenly it's the after Thanksgiving Black Friday housing event of a lifetime. Many areas of the country are experiencing this and consumers are responding.

And how about mortgage rates? We quoted 5.5% on a 30 year fixed rate mortgage last week. When was the last time rates were that low?

These are all very positive signs and by themselves would probably be enough to get consumers spending again, but for one thing; unemployment. Unemployment is hanging around 6.5%. Some economists are predicting it could get as high as 8.5%, but as my old man used to say, "If you laid all the economists in the world end-to-end, they still couldn't reach a conclusion." Nobody is going to accurately predict that number. That being said, I believe that as job growth improves in certain areas of the country, you will see localized consumer confidence improve.

And what will be the effect of all of this government meddling? Government bailouts unfortunately will only allow bad companies to continue to stay in business and lose our money. I don't really see the government as much of a savior in all of this, only a hindrance as they won't help existing business create more jobs by doing the one thing they can actually help with, which is lowering taxes. The best we can hope for out of the government is that they don't screw up the natural selection process. The market is very good at creating better products, lowering prices, creating new jobs and getting rid of unprofitable industries that consumers don't want if left alone.

My prediction? A good spring due to overall lower costs in the marketplace for areas with relatively low unemployment. Consumer confidence will surge amoung those with stable employment and will improve as more jobs are created. It's all about the consumer feeling good about the future. It always has been. (by the way, consumer confidence was up in November! A harbinger of things to come?)

Just wanted to put this out there...... How is everyone feeling about the market?

* Positive
* Concerned but optimistic
* Just plain concerned
* I don't know what to think
* I'm preparing for the worst while loading up on ammunition and canned goods

I'm still concerned but optimistic. I personally believe that the spring is going to bring a pretty solid turnaround, at least in our area. (Charlotte, NC) What about some of the rest of you around the country? What's your take on all of this?

All right now...... Take a deep breath..... let it out...........relax................. Ahhhh!!!! Feel better?

I know, I know. There's blood in the streets. Everyone is waiting for the (gasp!) next Great Depression! The bailout bill won't pass! The stock market is tumbling! And you and everyone around you is in a panic. Relax......................

All right now. Let's start at the top. I am absolutely shocked at the absolute lack of faith we are seeing here in the minds of the public regarding the financial markets. I am NOT shocked at the amount of lies and downright stupid statements I'm hearing on a daily basis. Most people wouldn't know a corporate balance sheet from a biscuit. Now guys, I know I have a business degree and that means I have taken classes in economics, accounting and business management, but it don't take no GED to figure out that this isn't the fall of Western civilization as you know it. I don't even bother listening to some brain dead reporter or TV anchor when they begin to enlighten me on the economy with their wealth of economics training. (by the way, I'm being sarcastic. Most reporters have college degrees in English or journalism. How that qualifies you to have an intelligent opinion on the economy is beyond me)

Now I know that everyone thinks the government should step in and save us all (although they created the problem by choosing to ignore accounting irregularities at Fannie Mae back in 2004) ,but let's take a look at what has happened in the banking business in the last week.....

-Bank of America bought the assets of Merrill Lynch

-JP Morgan Chase bought the assets of Washington Mutual

-Citimortgage announced yesterday that it is buying the assets of Wachovia

Well, will you look at that?!?!?! The government didn't have a thing to do with those things occurring! It is a natural process of the market righting itself! Guess what? Some companies will go out of business and some other companies who are stronger and made better choices will swoop in and get a good deal. THAT'S HOW BUSINESS WORKS! It's working!

However, because everyone is screaming for the government to do something and because it is an election year; you can believe we will have some sort of "bailout" plan finalized by the end of this week. The stock market will settle down and the sales of beer and hard liquor will drop precipitously. (another bad joke) The federal reserve today committed today to boost the amount of 84-day cash loans available to U.S. banks. The Fed is increasing the amount to $75 billion, up from the current $25 billion starting on Oct. 6.  That move will triple the supply of 84-day loans to $225 billion, from $75 billion. They also committed to doubling the amount of money available to all of the central banks to $620 billion up from $290 billion. This will let everyone feel good about that fact that there will be money to lend and thereby loosen credit restrictions. (in theory)

All in all, you can't forget where we are in the middle of right now. We are in the dead center of an election cycle. Everybody is going to sling mud until election day to meet their own needs and spin it to their benefit. Don't forget that we could have prevented all of this by tightening up on Fannie Mae back in 2004 when accounting irregularities came up, but Rep. Barney Frank who was the Financial Services Committee ranking member told investigators that, "I didn't see anything in your report that raises safety and soundness problems" (of Fannie Mae) Hey, you don't have to believe me. Look it up yourself on the archives of CSPAN. It was ignored, but you won't hear Barney Frank talking about it now, in fact, he hopes you don't know about it.

Take everything you hear right now with a grain of salt. My take is this:

•1)       "Bailout" plan will be in place this week. (these guys can't go campaign for re-election until they get it ironed out or the public will kill ‘em) It won't be the one they originally intended. It will probably be for a lot less money and be contingent on a lot more oversight, but the market will feel better, because the average Joe doesn't really understand the mortgage market anyway. He just wants to know it's business as usual. It helps him sleep at night.

•2)       Markets will settle down with that news. Fed pumping money into the banking system will loosen credit restrictions beginning Oct. 6^th.

•3)       After the election November 4^th, you can expect a HUGE drop in the amount of talk about the economy. You ain't gonna believe it. It won't make political fodder any more so the majority of politicians will shut up about it and the American people will stop having it shoved down their throats, thereby reducing the panic.

•4)       Consolidation of banks will continue further stabilizing the industry eliminating the weak by pairing them with the strong.

O.K., feeling better? You should. The system is working as it should. The weak die off and the strong survive ultimately making this economy stronger. Fortunately for those of us in the Charlotte market; we live in a very stable part of the country with regards to housing, jobs and the economy as a whole. So, take heart and congratulations! You're still here! Take steps now to position yourself for the turnaround, because it is coming and when it does........... those who are still in the game are going to reap the rewards. I think I'll stick this one out! How about you?

For the last year or so, there has been "blood in the streets". What do I mean by that? Most of you who are still in the business are here, because you've gutted it out. You've made the necessary steps in cutting staff, minimizing costs and sticking with the basics. The "what works" approach with very little extra fluff due to the fact that there isn't time or money to do otherwise.

I was at a seminar on Friday of last week and had the opportunity to talk to a realtor that I've done some business with over the years and he told me that if it didn't get better for him within 3 months; he was going to find another job. You've all heard it from your colleagues. Poor, poor pitiful me at every turn and it's easy to fall into that rut. We are essentially pessimistic creatures.

I turned around midway through the seminar to find this realtor friend of mine gone. He just gave up. Quit. Finito. Done. My question for you is...... when are you going to quit? When is it too much for you? Are you done?

This, my friends, is what we call a market correction. It stinks. I hate it. You hate it. Our families hate it. It's not fun, but, now listen to me here...... this is where fortunes are made. What? Are you kidding me? Actually I'm not. This is where you truly find out what you're made of. This is where you build your business, improve your processes and solidify your market. This is also where you can improve your mental processes. I'm talking about attitude.

Let me tell you. There is no better time to get your mind right than right now. I'm talking about engaging in positive affirmations, reading uplifting books, meditating and learning to "think right". I know it's tough. I know you don't want to do it. I know that depression lurks around every corner, but what's your plan when this market turns around? Is your attitude still going to be at the mercy of the market or WILL YOU DECIDE THAT YOUR ATTITUDE, NOT YOUR APTITUDE DETERMINES YOUR ALTITUDE?

Cut off the TV. Stop watching the TV and reading the news. Remember the old newspaper saying, "if it bleeds, it leads." There is no good news you are going to get from the boob tube or the newspaper right now. It won't sell newspapers, so it ain't getting printed my friend. Get some audio books by Zig Ziglar, Tony Robbins, Dr. Steven J. Covey, Brian Tracey and Dr. Wayne Dyer. Take a look at positive affirmation training. It sounds corny, but it works. Their are tons of self-hypnosis tapes out there. There are books. There's positive reinforcement through meditation. Avoid the negative like the plague and reinforce the positive. Internalize your belief through these methods that you can make it. Crazy? Maybe, but Henry Ford went bankrupt twice before he got Ford Motor Company off of the ground and the Wright Brothers made trips to North Carolina for 23 years before their plane actually flew.

Remember, "if you do what others will not do, you will have what others do not have." I don't know who said that, but it's a clear indicator of what we must do. Now is the time that winners are made.