Agent Success Club

Launch Time for Virtual Tours!

To all of our valued Agent Success Club Members and Affiliates,

We are pleased to announce the launch of our new Virtual Tour program. Powered by RealtyOpen.com, this new capability allows our Members to create and share an unlimited number of Virtual Tours.

We all know that Sellers expect maximum exposure for their property and Buyers rely on Virtual Tours as part of the home search process.

Best of all, these are included as part of your membership at NO ADDITIONAL CHARGE!

For more information, visit: http://www.agentsuccessclub.com/tours/

Sincerely,

AgentSuccessClub.com

New Virtual Tour Are Coming to Agent Success Club!

We have just begun testing our new virtual application

17905 Villa Creek Virtual Tour

Down Payment Assistance Programs

Recently, we prepared an article for Agent Success Club members that discussed whether or not downpayment assistance programs would make a comeback. A copy of the article is re-printed below.

Down payment assistance programs were all the rage and still remain a very confusing topic to most homeowners. Once a thriving business market — until President George Bush signed H.R. 3221, The Housing and Economic Recovery Act of 2008. Part of the act banned seller-funded down payment assistance programs such as AmeriDream, the Nehemiah program and others.

Down payment assistance programs allowed the seller and charitable organizations to contribute towards the closing costs and down payment of FHA loans. For first-time homebuyers, down payment assistance programs helped make getting that first home with an FHA loan even more affordable. When the law banning down payment assistance programs took effect on 1 October, 2008, many borrowers and lenders had to find other ways to reduce or mitigate closing costs and down payments. Now there are developments that could give hope for homeowners who want to purchase using an FHA guaranteed loan; a bill called the FHA Seller-Financed Down Payment Reform Act of 2009. This was introduced in January 2009 by Representative Al Green (D-TX) and 17 co-sponsors.

But I thought you still could get Down Payment Assistance?

That’s the confusing part; there are still programs for Buyer’s in most large counties and cities that make it possible for someone to buy a home without any down payment. This can mean that you could buy without any money down but requirements vary by county/city, and the general rule is that the Buyer cannot make over a certain amount per year. It’s really targeted to help revitalize communities.

The new FHA Seller-Financed Down Payment Reform Act is designed to, “revise the requirements for seller-financed down payments (also known as SFDPA for short) for mortgages for single-family housing insured by the Secretary of Housing and Urban Development under Title II of the National Housing Act,” according to OpenCongress.org.

There are pros and cons to reviving down payment assistance programs. Opponents of the 2009 FHA Seller-Financed Down payment Reform Act say bringing back down payment assistance programs like AmeriDream or GrantAmerica could potentially distort housing prices. According to one site which opposes the return of seller-financed down payment assistance, “Usually the SFDPA money comes from simply marking up the home (sic) value.”

Those in favor of SFDPA programs point out that the FHA requires a 3.5% down payment as part of the terms of an FHA home mortgage. When down payment assistance programs are available, that down payment isn’t necessarily made by the borrower. Some down payment assistance programs even offer additional money to cut the costs further. The advantage to the cash-strapped buyer is obvious. Little or no down payment means a smaller financial drain during the transition to becoming a homeowner.

Assuming the “marking up the home value” complaint is legitimate, the issue can be viewed from a different perspective. If a buyer knows in advance that getting a greatly reduced down payment means getting a markup to offset the down payment issue, seller financed down payment assistance becomes an option–IF the buyer is willing to accept the markup.

You could choose to pay the required FHA loan down payment in full, or opt to pay a bit more over the long run to make up for not having to put a larger amount of money down at closing. The real issue is being an informed borrower, reading the fine print, and knowing your choices about making the down payment and how much could affect your bottom line overall. Choose a larger down payment and lower FHA loan payments every month, or accept a higher monthly bill to avoid putting a drain on your bank account. It’s the informed decision that counts.

For now, the “controversy” is moot—the 2009 FHA Seller-Financed Down payment Reform Act has not been passed or rejected. Until changes to the law are passed by the federal government, down payment assistance programs are still banned, sort-to-speak; there are other ways to find down payment assistance if you really need help.

The real question is whether or not these programs will truly help drive sales. As agents, we are looking at all opportunities to help buyers get into a home and more programs (as long as they are legitimate and make sense for the borrower) will almost certainly help.

Inman ReConnect

I have been attending the Inman conference in NYC this week. What an awesome experience! Great programs, speakers and information.

It ties right in to what I do at www.agentsuccessclub.com

Focusing on new tools, resources and ideas for residential real estate agents and a commitment to building bigger, better business.

Have any of you attended one of these?

Tax Credit Extension

By now you’ve heard that the Homebuyer tax credit has been extended; not only for new homebuyers but current homebuyers have a reason to celebrate. New Homebuyers can purchase a home and get up to $8,000 in a tax credit and current homebuyers can purchase another home and get up to $6500 in a tax credit.

Not a bad incentive; and what’s even better is that for those current homeowners who thought of moving, now is your chance to move down to a lower priced home and save big money.

• You’re getting a $6500 tax credit to purchase another home
• If you move down think of the savings you can put into your pocket
• The tax credit does not hinge on a current homeowner selling, so you can also rent out the home
• Mortgage interest rates are still lower than usual

There are a few restrictions this time around; because of so many fraudulent transactions you are unable to get the tax credit at closing. The IRS is going to check and double check to make sure you’re not using fraudulent social security numbers or any other paperwork to scam the system. Once all the checks and balances have been done the IRS will issue you a check and mail out to you.

Be aware of the dates. We have until April 30 to sign a contract on a home and June 30, 2010 to close on a home. The biggest problem is that people procrastinate. You can’t start looking for a home April 1 and hope to sign a contract by April 30th. Is it possible? Sure, but you’re not taking into account all the “what-if’s”

So don’t wait until the very last minute if you want to take advantage of the extended tax credit.

Happy New Year!

Happy New Year to all of the real estate agents and brokers out there. If you are like me, you are glad that the holiday season is coming to an end. Not that I don’t like them, but it is always refreshing to start the new year and new selling season.

This is the time of year that we really should be looking at how we plan on growing our business. Were you happy with the number of deals you did in 2009? Do you have a plan in place to grow your business in 2010?

My advice to you is to take time and think about what your business will look like this year. Don’t obsess about it, but give it the time and attention it needs.

One thing is certain. Tomorrow will come and circumstances in people’s lives will create the need for them to buy and/or sell a home. Make sure they are thinking of you when that happens.

Don’t listen to the naysayer’s and other negative people around you.

Think POSITIVE and commit to prosperity.

Steve
www.agentsuccessclub.com