Tag Archives: Real Estate news

Fannie & Freddie Experience More Delays

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Nearly 3 years ago mortgage financing giants Frannie Mae and Freddie Mac announced that changes were coming on the standard mortgage application. These were to be the first changes made to the application in 20 years. As the process moved forward, the new Uniform Residential Loan Application was supposed to make its debut February 1, 2020. The government – sponsored enterprises decided additional changes were needed and extended the time frame for it’s mandatory use.

“The redesigned URLA is the result of extensive collaboration with industry stakeholders,” said Andrew Bon Salle, Fannie Mae executive vice president of single-family business.

“We are proud to be a part of this effort that enables lenders to better serve their customers by providing ease and clarity to borrowers during the loan origination process,” Bon Salle said.

The Federal Housing Finance Agency has requested more changes to the URLA form. At issue are questions relating to language preference, home ownership education and housing counseling. These questions have been moved to a voluntary form instead of being addressed on the main application. After revisiting these changes, additional changes are now being revised as well, including:

Redesigned format: Improved navigation and organization that will support accurate data collection and better efficiency for a more consumer-friendly experience.

New and updated fields: Capture loan application details that reflect today’s mortgage lending business and support both the GSEs’ and government requirements.

Clearer instructions: Simplified terminology enables borrowers to complete the loan application with less help from the lender.

Revised government monitoring information: Incorporates the revised Home Mortgage Disclosure Act demographic questions.

Spanish informational version: Will be available soon.

The new timeline for use is still unspecified as the changes will be assessed yet again to see what the impact will be to everyone involved. The timeline and new implementation dates will be released as soon as they are available until which time the new form is available, continuing the use of the current form is required.

Social Media Success for Real Estate Professionals

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Now more than ever, social media marketing is essential to promoting yourself as a real estate professional. Gone are the days when home buyers would open a newspaper to look for properties for sale or look up names of real estate agents in a phone book.

Therefore, it is imperative for any real estate agent to use social media in marketing their businesses and listings. And while any realtor can open a Facebook or Instagram account, it’s not always as clear how to use social media as a tool to send the right message to the right people at the right time. In our course Social Media Marketing for Real Estate Professionals you will find valuable need to know information to make yourself and your business a social media success! Here are 3 steps to get maximum exposure for your brand and properties online.

1. Use Different Platforms

Remember all platforms are different and the voice and message should match that. The top 3 social media markets are Instagram, Facebook and Twitter. Of course, there are many more, but don’t spread yourself to thin trying to market on every platform.

Post photos on Instagram to generate leads.

Instagram is widely considered the perfect social media platform for realtors. There are more than 700 million users on Instagram, who reportedly press the “like” button on images about 4.2 billion times per day.

  • You get engagement by doing polls on insta-stories (very effective) and asking a question in the last line of the caption. Getting users to engage on your account is one of the best ways to grow and connect with your audience.

Without a doubt, Facebook is the king of social media.

With more than 2 billion users worldwide, it is easy to understand why the brainchild of Mark Zuckerberg is the first thing that comes to mind when one hears “social media.”

  • Use the 80/20 rule with updates: 80% of posts ought to be customer-centric while 20% should be about the business. It also helps the cause of agents to post about happenings in and around their communities like local charity events, school-related activities or even gas prices (especially when they’re low)

 Tweet to promote listings.

The volume of tweets will greatly boost a realtor’s exposure. The more tweets a real estate agent sends out, the more leads can be generated. In addition to sharing listings, there are other types of content or pieces of information worth tweeting, like advice on moving as well as tips for staging and upgrading homes.

  • Hashtags are also very important, as people use them to search for a particular topic on Twitter. Agents should use hashtags like the geographic area they operate in, recent events or keywords that their target market may be searching.

2. Use more videos and photos

Just like many others, it’s tough to turn the camera on yourself….but you have to get over it! The reality is that no one cares that your video isn’t professional grade all the time, your hair isn’t perfect or that you stumble over your words occasionally. Being yourself is the key. People will respect your effort and want to do business with you if you are authentic. Establishing that you are likable, good at your job, and can be trusted are the keys to winning!

  • Sharing images and video clips on your social media platforms can also greatly enhance the engagement level of real estate agents online.

3. Measure social media metrics.

Finally, real estate agents should identify and track their social media metrics to gain a better understanding of which strategies are working and which should be replaced or tweaked.

    • Metrics like the number of “likes” per share, number of followers and level of engagement can guide real estate agents toward what they ought to do with their social media campaigns. Facebook Audience Insights will tell you which kind of posts generate interest, and which kind lead to unfollows.

Real Estate’s American Dream

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The American dream. Owning your own home is the largest transaction an average American will make in their lifetime. Conventionally, as a salesperson or broker, you are the catalyst to make that dream a reality. Showing homes, placing offers, negotiating and eventually making the deal. Customarily you work on commission which incentivizes you to get the buyer into the highest transaction you can. To the untrained eye that customary 3% commission doesn’t look like much but as an agent you know that it can add up to thousands or tens of thousands. In 2018 $80 billion dollars were paid in real estate commissions.  This is where the traditional real estate market exists and where current events seek to shake the ancestral market.

Now, more than ever, social media marketing is crucial to reach those customers. Networking, blogging, creating relationships online will all make or break your business. When you have real estate brokerages that are setting new precedence online by allowing more time for focusing on the customer – whether it’s for the buy or the sale. They offer a do-it-yourself approach, such as providing title services, and securing the best mortgage, ultimately offering the buyer an all in one experience. How can you compete? Get online. Start with a social media marketing course like ours and learn how to open doors to new customers and keep your legacy clients coming back. The lessons in this course will take you through the development phase of your social media presence, and on to a place where you are confidently creating online content that represents you in the best light possible. Aligning yourself with your buyer or seller and maintaining a virtual presence will keep your business and reputation attractive to clients. Using Social Media effectively as a real estate professional takes a certain amount of finesse, but if done correctly, can be a major catalyst for advancing your career.

 

Who Should Pay the Buyer’s Agent?

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Traditionally in America, the home seller pays the buyer’s agent, however–that tradition is under fire due to new lawsuits filed in Chicago against the National Association of Realtors and others. The outcome of the cases could have far reaching impact in the world of American real estate.

According to a recent Washington Post article, class-action lawsuits have been filed against NAR, the nation’s four largest real estate brokerages, and the MLS companies they use. The suits state that federal anti-trust laws have been violated by the named entities by forcing sellers to pay the buyer’s agent inflated commissions.

The claimants state that the buyer’s agent should be paid by the buyer in a competitive market, and also that the split commission contracts enforced by MLS companies often cause the seller’s agents to be unfairly compensated.

The outcome of these suits could affect home owners and buyers as well as agents and brokers.  Some say that if the courts rule against the defendants that commission rates for buying and selling agents will go down in order for agencies to stay competitive in a customer’s market. If home buyers were required to pay their agent’s commissions instead of the sellers, they would negotiate directly with the agent to pay only for services rendered, as opposed to the blanket commission currently paid by the seller.

The downside to such a situation going into effect is that when it comes to purchasing a home, buyers are already at a financial disadvantage—forced to pay for closing costs and moving costs on top of the price of a home. According to the Post, some Realtors say that the added expense of having to pay their agent’s commission would put a heavy strain on “first-time and other cash-short buyers”. This could have a negative impact on real estate markets across the country.

Commercial Real Estate: An Attractive Victim for Hackers

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Data breaches affect every kind of business and Internet user. And sophisticated hackers target commercial real estate in hopes of a big payday, according to Minnesota lawyer Nadeen Schwen, in an interview with Minnesota Lawyer.

Why do hackers target real estate business?

Hackers follow the money. Schwen says they have many chances to manipulate and profit off of real estate transactions and target everyone from attorneys, to buyers, to agents, to brokers online.

Once a hacker has compromised an email thread, they will send out bogus invoices, bank documents or receipts and pose as a major player in the real estate transaction. As soon as the target of the email authorizes any transaction, they kiss that money goodbye.

How do I keep my business safe?

  1. Change your passwords. This is the simplest defense and will be most effective when passwords have a mix of numerals, characters, letters and a mix of capital and lowercase. Change your log-in info often.
  2. Protect customer data. Any financial information or sensitive information should be considered valuable and protected with encryption software.
  3. Surf safely. Block and limit sites that you and your employees can view.
  4. Invest in anti-virus software. Get over the dread of paying a big price tag upfront. If a hack happens, it could spell catastrophe down the line.
  5. Keep your software up to date and use the latest versions of any apps or technology you employ at your business.
  6. Use secure devices. Do not do business on public computers or shared devices, that may unintentionally store log-in information and other data.
  7. Make a plan. Devise a cyber security policy and make sure your employees understand how it works. Figure out how your company will secure data, back up data, and create an emergency response plan in the event of an attack.