Transfer Fee Battle is Heating Up

A few years ago, builders started imposing transfer fees on the homes that they sold. Most of the buyers didn't care because the fee didn't show up until they sold the house and then it was the new buyer's responsibility to pay for the fee. But things are starting to heat up in Washington as these transfer fees are being further investigated. Transfer fees have been more accepted in the past as they were usually found in the selling of condominiums and smaller homes where the funds would be used to pay for the maintenance and general upkeep of the housing project. The issue that has everybody up in arms over is the fact that these new transfer fees are doing nothing other than lining the pockets of builders (often for 99 years).

In a booming real estate market, we would probably see these fees getting swept under the rug. But in a weaker economy, everything is under the spotlight, especially in the real estate market. With so much opposition and press on transfer fees, we could see some federal regulation that would ban these fees very soon. The FHA has already proposed a rule that would restrict Fannie Mae and Freddie Mac from purchasing homes with these types of fees. I'm sure we will see more on this very soon.

Recovery Really Means Stabilization

In today's real estate market, we need to better understand what recovery really means. Many people, both in and out of the real estate industry, are waiting for loan programs to come back and prices to go back up. Financial recovery in our real estate market is all bout stabilization rather than recovery. Last month new construction was up 24%. That sounds great, but it really balances out when you factor in the 37% drop in new construction after the expiration of the home buyer tax credit. So pay attention to what's evolving in the market so you can improve your business and be the reliable agent or broker that your clients expect.

Seats Still Available at Utah SAFE Prep Course!

Tomorrow Praedo Institute will be hosting a 3-hour SAFE preparation course that will count for 3 hours of mortgage continuing education and will help loan originators prepare for the SAFE exam. The course will be held at the Salt Lake Community College Miller Campus at 9750 South 300 West in Sandy from 9 am -12 pm. There are still seats available! Sign up today!

SAFE Prep Course On Thursday Aug 5th at SLCC!!

Praedo Institute has an upcoming SAFE prep course on Thursday, August 5th from 9:00 am-12:00 pm! The class will be held in the Wasatch room of the Salt Lake Community College located at 9750 South 300 West in Sandy. This 3-hour course will count as 3 credits toward your continuing education and will prepare you for the SAFE exam. Sign up today as seats are going fast. Seriously sign up now.

More on Social Networking

I don't want to beat on a dead hose here but I want to encourage everyone to take advantage of social networking. If you don't you will get left behind. Marketing during tougher times will pay off with dividends as things get better. Take advantage of Facebook, Twitter, and other social networking tools. These are free tools and you must take advantage of this changing marketing world in order to stay in the game, The way people receive information has changed, products and the services now go to them.

Email support@praedo.com for more information. We are always happy to help at the Praedo Institute.

Facebook: Your Newest Marketing Tool

As if you haven't heard enough about facebook. Facebook just announced their 500 millionth user on Tuesday. There is now talk of an alleged contract that would award 50% of facebook to an associate of Mark Zuckerburg (Founder of Facebook), if the contract is found to be binding by the judge. Also, there is a movie coming. And this is to say absolutely nothing of friend requests, inbox messages, liking, photo tags, wall posts, and poking.

Without going into the how-to of facebook (you can talk to your 9 year-old niece for that), I'd like to shed a little bit more light on the power of this social media giant. In fishing, they tell you to 'go where the fish are.' In business, it has always been my feeling that you should 'go where the people are.' It sounds simple enough, but many loan officers and real estate agents are still avoiding using facebook as they see it as a fad. It is not. This is not a furbie or a tickle me elmo, facebook is here to stay. The longer you hold off to take advantage of this free service, the more business you will lose and the more business your cutting-edge competitors are going to get. Take advantage of it, build a company profile, update your status, and request a friend or two. Your checkbook will thank you later.

One thing to keep in mind. Do not mention confidential material on facebook that you would not openly talk about elsewhere. If you update you status saying that 'my clients just put an offer on their dream home,' the seller's agent may see it and encourage the sellers to reject the offer and raise the price. Your buyers may find out. They will sue you. They may win. If you're not going to announce it in the middle of the town square, don't post it on facebook. With 500,000,000 users it's more like Times Square anyways.

Jumbo Loans Are On A Comeback Tour

Jumbo loans are reportedly making a comeback. This is great for the middle- to upper-income borrowers who have been unable to purchase some discounted dream homes because of the drying up of the jumbo market. Bankrate.com is reporting 30-year fixed jumbo loan rates for 5.5%, which is very surprising for an almost extinct loan program.

When it comes to borrowers, banks are still only accepting the cream of the crop as they try to minimize risk and keep only good loans on their books. This is a slow start to re energizing this loan program, but it is at least a start, and many loan officers across the country are rejoicing at the idea of the jumbo loan market being revived.

While I've never been an advocate of beating the dead horse, I did want to add another plug to my unofficial theme I've had for our readers over the last couple of weeks. Be the professional your clients expect. Explain the pros and cons of a jumbo loan and be equipped to explain all of your borrower's specific options. Knowledge is power.