Short Sale Advice from Nic Petrossi, Orange County Realtor

There are 5 things you can do when you realize you can no longer make your mortgage payments:

1. Nothing
2. Deed in Lieu (Hand the Title, and keys, back to bank)
3. Short Sale
4. Bankruptcy
5. Loan Modification

All of these options will adversely affect your credit.  However, some options ARE better than others.

For example, the on the severity scale of how bad your credit will take a hit, on a scale of 1 to 10, an outright foreclosure or bankruptcy is like an 11.  The Deed in Lieu is probably the dumbest thing to do because the bank will let you stay in the home rent free for a while anyhow while you work this all out.

A Loan Modification is the best route to take, but you have to know what you’re doing.  There are only a handful of legitimate Loan Modification companies out there that know how to handle this for you (for a fee) but are well worth the money.  Making your monthly payment smaller could allow you to keep your home and sometimes the bank will reduce the AMOUNT owed (principal balance). 

A short sale is the best route to take, usually, if you…A) Can’t get a loan modification, B) The loan modification doesn’t help anyhow because you can’t afford even the new amount, C) The home you’re living in is your principal residence (i.e. it’s not an investment property), and D) you can work out discharge of indebtedness with the IRS.

We get the term “short sale” from the fact that the bank is taking less from the proceeds from the sale of your home than the current loan amount owed.  Ergo, the bank comes up “short.”  In other words, the bank takes the hit in the pocket and you take the hit to your credit.  When you short sale, the amount “forgiven” you by then bank for the difference owed and the final purchase price is actually considered a “gift” by the government, and the government will tax your income accordingly. 

Example:   You bought your home in 2006 for $750,000.  The home is now worth $600,000 and you’ve lost your job.  Your wife (or husband) can’t handle the payments with their income alone.  You try to call the bank and work out a loan modification but the bank says “no” even though the person on the phone is not authorized to tell you “no.”  So you call an expert who can negotiate with the bank for you.  THAT doesn’t even work so now you must short sale your home.  You find a real estate agent who lists the home you once bought at $750,000 for $575,000.  The agent tells you that you need to get together a “packet.”  The packet consists of two years taxes, 2 months bank statements, a hardship letter to the bank explaining why you can’t make your payments, and any other documentation of income.  The agent gets several offers and eventually (after several weeks) submits the highest and best offer (we’ll say $600,000 for the sake of this discussion) to the bank with the “packet.”  The packet with the offer reaches the bank’s loss mitigation department where it sits on a desk with several other offers and packets on several different properties.  If there are 2 or more lenders on your home, the packet and offer have to be sent to those banks as well.  When there is a Second on the property, it gets sticky because the First Lien Holder always wants to screw the Second Lien Holder and the Second wants to get something out of the deal.  The negotiations between the 1st, 2nd (and sometimes) 3rd Lien Holders will often delay this process even longer.  Let’s say the bank settles on the $600,000…and you owe $700,000 since you originally put down $50,000 when you bought the place.  Now, you are taxed on that $100,000 as if you made that money since it is considered a gift by the IRS.

The good news is that there was a bill passed by Congress to relieve you of that “gift” taxation as long as you live in the property as primary residence and can prove insolvency (that your bills are more than your income).  You would then apply for this using IRS form 982 called “Reduction of Tax Attributes Due to Discharge of Indebtedness.”  You apply when you file your income taxes.  The word on the streets is that the IRS is so back-logged that they are not going after people for the difference on their home’s short sale, but I wouldn’t trust in that information but consult a CPA or lawyer to see how you’ll be affected.

Need help selling or buying a home in Orange County? 

Contact me, Nic Petrossi with Prudential at (714) 272-3646 or email me at npetrossi@yahoo.com

Click here to check out my website —–>    CLICK HERE

NIC PETROSSI (714) 272-3646 Brea Realtor Placentia Realtor Fullerton Realtor Yorba Linda Realtor

Ladies and Gentlemen,

The Market is changing.  Dramatically.

There are dozens of Brea real estate agents, Yorba Linda real estate agents, Placentia real estate agents, Fullerton real estate agents, Anaheim Hills real estate agents from large firms (e.g. Prudential, C-21, Seven Gables, REMAX) who are saying it is EXTREMELY difficult to get their buyers into a property.

What does this suggest???

The market is shifting right in front of our eyes.  I’m coming out now to say — WE’VE HIT THE BOTTOM…at least in the under $500K price range for homes in excellent condition. When it comes to the $300K price range in Northeast Orange County, fuggetaboutit.  What would you say if I told you there are properties with 10, 20, 30 offers on them going for $100K over asking price?  That’s right, if it sounds too good to be true, it is.  A fellow agent in my office made an offer with a client on a home listed at $289,000.  His client’s offer?  $320,00.  He went up to $331,000.  The assistant for the listing agent of this Bank Owned property in Anaheim called to tell him the bad news:

   “Aaron, we have an offer for $370,000.”

             Fuggetaboutit

It’s time to stop listening to what your friends and family are saying or what you’re hearing on TV or reading in the paper…if you want a nice home for a nice price this year, you need to get your “ducks in a row.”  You need to get pre-qualified, you (and your real estate agent) need to be constantly watching for the properties to pop on the market.  This is beginning to look a lot like 2002 again except the banks aren’t going to let it get away from them again and have it crash down on their heads.  The safeguard will be VERIFY, VERIFY, VERIFY.  Verify income, verify downpayment, verify DTI.

Call Nic Petrossi, Prudential for any questions, dialogue, to start the process of finding that right home for you.  Need to sell your home?  I do that too.   (714) 272-3646  cell  (714) 257-3606 office 

npetrossi@yahoo.com

Click here for website:       CLICK HERE!

Brea Short Sale Realtors & Agents – What are my options???

There are 5 things you can do when you realize you can no longer make your mortgage payments:

1. Nothing
2. Deed in Lieu (Hand the Title, and keys, back to bank)
3. Short Sale
4. Bankruptcy
5. Loan Modification

All of these options will adversely affect your credit.  However, some options ARE better than others.

For example, the on the severity scale of how bad your credit will take a hit, on a scale of 1 to 10, an outright foreclosure or bankruptcy is like an 11.  The Deed in Lieu is probably the dumbest thing to do because the bank will let you stay in the home rent free for a while anyhow while you work this all out.

A Loan Modification is the best route to take, but you have to know what you’re doing.  There are only a handful of legitimate Loan Modification companies out there that know how to handle this for you (for a fee) but are well worth the money.  Making your monthly payment smaller could allow you to keep your home and sometimes the bank will reduce the AMOUNT owed (principal balance). 

A short sale is the best route to take, usually, if you…A) Can’t get a loan modification, B) The loan modification doesn’t help anyhow because you can’t afford even the new amount, C) The home you’re living in is your principal residence (i.e. it’s not an investment property), and D) you can work out discharge of indebtedness with the IRS.

We get the term “short sale” from the fact that the bank is taking less from the proceeds from the sale of your home than the current loan amount owed.  Ergo, the bank comes up “short.”  In other words, the bank takes the hit in the pocket and you take the hit to your credit.  When you short sale, the amount “forgiven” you by then bank for the difference owed and the final purchase price is actually considered a “gift” by the government, and the government will tax your income accordingly. 

Example:   You bought your home in 2006 for $750,000.  The home is now worth $600,000 and you’ve lost your job.  Your wife (or husband) can’t handle the payments with their income alone.  You try to call the bank and work out a loan modification but the bank says “no” even though the person on the phone is not authorized to tell you “no.”  So you call an expert who can negotiate with the bank for you.  THAT doesn’t even work so now you must short sale your home.  You find a real estate agent who lists the home you once bought at $750,000 for $575,000.  The agent tells you that you need to get together a “packet.”  The packet consists of two years taxes, 2 months bank statements, a hardship letter to the bank explaining why you can’t make your payments, and any other documentation of income.  The agent gets several offers and eventually (after several weeks) submits the highest and best offer (we’ll say $600,000 for the sake of this discussion) to the bank with the “packet.”  The packet with the offer reaches the bank’s loss mitigation department where it sits on a desk with several other offers and packets on several different properties.  If there are 2 or more lenders on your home, the packet and offer have to be sent to those banks as well.  When there is a Second on the property, it gets sticky because the First Lien Holder sometimes doesn’t care about the Second Lien Holder and the Second wants to get something out of the deal.  The negotiations between the 1st, 2nd (and sometimes) 3rd Lien Holders will often delay this process even longer.  Let’s say the bank settles on the $600,000…and you owe $700,000 since you originally put down $50,000 when you bought the place.  Now, you are taxed on that $100,000 as if you made that money since it is considered a gift by the IRS.

The good news is that there was a bill passed by Congress to relieve you of that “gift” taxation as long as you live in the property as primary residence and can prove insolvency (that your bills are more than your income).  You would then apply for this using IRS form 982 called “Reduction of Tax Attributes Due to Discharge of Indebtedness.”  You apply when you file your income taxes.  The word on the streets is that the IRS is so back-logged that they are not going after people for the difference on their home’s short sale, but I wouldn’t trust in that information but consult a CPA or lawyer to see how you’ll be affected.

Need help selling or buying a home in Orange County? 

Contact me, Nic Petrossi with Prudential at (714) 272-3646 or email me at npetrossi@yahoo.com

Click here to check out my website —–>    CLICK HERE

NIC PETROSSI, Nov. 7, 2008 – Brea Foreclosures | REO’s | Bank Owned Homes from Brea Real Estate Agent / Realtor

Below is a complete list of all Brea foreclosures | REO’s | Bank Owned properties as of Nov. 7, 2008.

Contact me on my cell through my website, click here —–>  WEBSITE  to set up a time to see any of these awesome opportunities in BREA.  Brea has been rated one of the best cities to live in, with top restaurants e.g Olive Garden, Taps, Yardhouse, Bobby McGhee’s, Red Lobster, Cheesecake Factory, BJ’s, the Market, and one of Orange County best shopping locales.  The Brea Olinda Unified School District is ranked as one of the top in the state and most homes are freeway close. 

Fri, Nov 7, 2008 09:05 AM

RES	MLS #	Status	P	V	H	T	Q	Type	A/D	Address	City	Area	Zip	TGNO	Trct/M	Bd	B t/f	Sty	Gar	SqFt	Yr Blt	Price	DOM
1	P651183	A	8		H	T	Q	SFR	D	1933 Lotus Pl	BREA	86	92821	708G6	OTHR/0	4	2/2	1	2	1,583	1971	$399,900	88	*
2	R809103	A	3		H	T	Q	SFR	A	651 N Willow Dr	BREA	86	92821	709B7	VILB/1	4	2/1	1	2	1,431	1956	$404,000	35
3	P652141	A	6		H	T	Q	SFR	D	468 Redtail Dr	BREA	86	92823	709H6	OTHR/0	3	2/2	1	2 A	1,077	2002	$419,900	81	*
4	S551832	A	6		H	T	Q	SFR	D	710 W IMPERIAL Hwy	BREA	86	92821	708J7	OTHR/-	4	3/2	2	2 A	1,745	1971	$452,900	16
5	P658669	A	1		H	T	Q	SFR	D	846 De Jur St	BREA	86	92821	708H5	OTHR/0	4	2/2	1	2	1,550	1960	$460,900	37	*
6	L27671	A	3		H	T	Q	SFR	D	3601 Falcon Way	BREA	86	92823	709H6	OTHR/1	3	2/2	1	2	1,500	2002	$465,000	37
7	P661576	A	11		H	T	Q	SFR	D	401 Union Pl	BREA	86	92821	739B1	OTHR/0	3	2/2	1	2 D	2,050	1950	$483,000	17
8	P662965	A	2		H	T	Q	SFR	D	150 Madrona Ave	BREA	86	92821	709A7	ASH/*	3	3/2	2	2 A	1,635	1997	$489,000	7
9	S552519	A	8	V	H	T	Q	SFR	D	1513 Zachary Ct	BREA	86	92821	708H6	OTHR/0	3	3/2	2	2	1,617	1994	$526,900	9

 

 

NIC PETROSSI, Brea Homes (Complete List of Bank Owned Foreclosures REO) as of Nov. 4, 2008 from Realtor

Below are all current active bank owned properties in Brea….the status of these foreclosures are up-to-date and accurate as this data is directly from the MLS.

Contact me through my website ——-> WEBSITE  to view featured properties, search the MLS, or to set up at time at your convenience to view any Brea Homes.

Tue, Nov 4, 2008 02:06 PM

RES	MLS #	Status	P	V	H	T	Q	Type	A/D	Address	City	Area	Zip	TGNO	Trct/M	Bd	B t/f	Sty	Gar	SqFt	Yr Blt	Price	DOM
1	P651183	A	8		H	T	Q	SFR	D	1933 Lotus Pl	BREA	86	92821	708G6	OTHR/0	4	2/2	1	2	1,583	1971	$399,900	85	*
2	R809103	A	3		H	T	Q	SFR	A	651 N Willow Dr	BREA	86	92821	709B7	VILB/1	4	2/1	1	2	1,431	1956	$404,000	32
3	P652141	A	6		H	T	Q	SFR	D	468 Redtail Dr	BREA	86	92823	709H6	OTHR/0	3	2/2	1	2 A	1,077	2002	$419,900	78	*
4	S551832	A	6		H	T	Q	SFR	D	710 W IMPERIAL Hwy	BREA	86	92821	708J7	OTHR/-	4	3/2	2	2 A	1,745	1971	$452,900	13
5	P658669	A	1		H	T	Q	SFR	D	846 De Jur St	BREA	86	92821	708H5	OTHR/0	4	2/2	1	2	1,550	1960	$460,900	34	*
6	L27671	A	3		H	T	Q	SFR	D	3601 Falcon Way	BREA	86	92823	709H6	OTHR/1	3	2/2	1	2	1,500	2002	$465,000	34
7	P661576	A	11		H	T	Q	SFR	D	401 Union Pl	BREA	86	92821	739B1	OTHR/0	3	2/2	1	2 D	2,050	1950	$483,000	14
8	P662965	A	2		H	T	Q	SFR	D	150 Madrona Ave	BREA	86	92821	709A7	ASH/*	3	3/2	2	2 A	1,635	1997	$489,000	4
9	S552519	A	8	V	H	T	Q	SFR	D	1513 Zachary Ct	BREA	86	92821	708H6	OTHR/0	3	3/2	2	2	1,617	1994	$526,900	6

NIC PETROSSI, Brea Real Estate Agent — List of Foreclosures | Bank Owned | REO from Realtor

Here is a list of all Brea foreclosures | Brea REO’s | Brea Repo’s | Brea Bank Owned Properties from the Socal MLS as of Nov. 1, 2008:

RES	MLS No.	Status	P	V	H	T	Q	Type	A/D	Address	City	Area	Zip	TGNO	Trct/M	Bd	B t/f	Sty	Gar	SqFt	Yr Blt	Price	DOM
1	P661871	A	1		H	T	Q	SFR	D	776 Sonora St	BREA	86	92821	708G5	OTHR/0	4	2/2	1	2	1,600	1973	$359,900	9
2	P651183	A	8		H	T	Q	SFR	D	1933 Lotus Pl	BREA	86	92821	708G6	OTHR/0	4	2/2	1	2	1,583	1971	$399,900	82	*
3	R809103	A	3		H	T	Q	SFR	A	651 N Willow Dr	BREA	86	92821	709B7	VILB/1	4	2/1	1	2	1,431	1956	$404,000	29
4	P652141	A	6		H	T	Q	SFR	D	468 Redtail Dr	BREA	86	92823	709H6	OTHR/0	3	2/2	1	2 A	1,077	2002	$419,900	75	*
5	S551832	A	6		H	T	Q	SFR	D	710 W IMPERIAL Hwy	BREA	86	92821	708J7	OTHR/-	4	3/2	2	2 A	1,745	1971	$452,900	10
6	P658669	A	1		H	T	Q	SFR	D	846 De Jur St	BREA	86	92821	708H5	OTHR/0	4	2/2	1	2	1,550	1960	$460,900	31	*
7	L27671	A	3		H	T	Q	SFR	D	3601 Falcon Way	BREA	86	92823	709H6	OTHR/1	3	2/2	1	2	1,500	2002	$465,000	31
8	P661576	A	11		H	T	Q	SFR	D	401 Union Pl	BREA	86	92821	739B1	OTHR/0	3	2/2	1	2 D	2,050	1950	$483,000	11
9	P662965	A	2		H	T	Q	SFR	D	150 Madrona Ave	BREA	86	92821	709A7	ASH/*	3	3/2	2	2 A	1,635	1997	$489,000	1
10	S552519	A	8	V	H	T	Q	SFR	D	1513 Zachary Ct	BREA	86	92821	708H6	OTHR/0	3	3/2	2	2	1,617	1994	$526,900	3
11	S551541	A	10		H	T	Q	SFR	D	197 N Thistle Rd	BREA	86	92821	709F7	CHE/1	4	4/3	2	2	2,403	1979	$629,000	2

Contact me (phone # on website) to see any of these homes —–>  www.NicPetrossi.com

BREA Foreclosures | Brea REO | Brea Bank Owned – Complete List Oct. 31, 2008

Below is a complete list of all Brea Bank Owned Homes / Brea Foreclosures / Brea REO as of Oct. 31, 2008:

Contact me through my website —>  WEBSITE  to schedule a time to go view any of these homes.

RES	MLS No.	Status	P	V	H	T	Q	Type	A/D	Address	City	Area	Zip	TGNO	Trct/M	Bd	B t/f	Sty	Gar	SqFt	Yr Blt	Price	DOM
1	P661871	A	1		H	T	Q	SFR	D	776 Sonora St	BREA	86	92821	708G5	OTHR/0	4	2/2	1	2	1,600	1973	$359,900	8
2	P651183	A	8		H	T	Q	SFR	D	1933 Lotus Pl	BREA	86	92821	708G6	OTHR/0	4	2/2	1	2	1,583	1971	$399,900	81	*
3	R809103	A	3		H	T	Q	SFR	A	651 N Willow Dr	BREA	86	92821	709B7	VILB/1	4	2/1	1	2	1,431	1956	$404,000	28
4	P652141	A	6		H	T	Q	SFR	D	468 Redtail Dr	BREA	86	92823	709H6	OTHR/0	3	2/2	1	2 A	1,077	2002	$419,900	74	*
5	S551832	A	6		H	T	Q	SFR	D	710 W IMPERIAL Hwy	BREA	86	92821	708J7	OTHR/-	4	3/2	2	2 A	1,745	1971	$452,900	9
6	P658669	A	1		H	T	Q	SFR	D	846 De Jur St	BREA	86	92821	708H5	OTHR/0	4	2/2	1	2	1,550	1960	$460,900	30	*
7	L27671	A	3		H	T	Q	SFR	D	3601 Falcon Way	BREA	86	92823	709H6	OTHR/1	3	2/2	1	2	1,500	2002	$465,000	30
8	P661576	A	11		H	T	Q	SFR	D	401 Union Pl	BREA	86	92821	739B1	OTHR/0	3	2/2	1	2 D	2,050	1950	$483,000	10
9	P662965	A	2		H	T	Q	SFR	D	150 Madrona Ave	BREA	86	92821	709A7	ASH/*	3	3/2	2	2 A	1,635	1997	$489,000	0
10	S552519	A	8	V	H	T	Q	SFR	D	1513 Zachary Ct	BREA	86	92821	708H6	OTHR/0	3	3/2	2	2	1,617	1994	$526,900	2
11	S551541	A	10		H	T	Q	SFR	D	197 N Thistle Rd	BREA	86	92821	709F7	CHE/1	4	4/3	2	2	2,403	1979	$629,000	1

 

October 12, 2008 Placentia Foreclosures, Brea Foreclosures, Yorba Linda Foreclosures, Anaheim Hills Foreclosures, Orange County Foreclosures — A Response to O.C. Register Article

An article came out today in the Orange County Register Front Page regarding Orange County Foreclosures. (Orange County, CA that is).  Writer Mathew Padilla quotes DataQuick Data company as his source saying there are more than 3,300 unsold foreclosures in Orange County as of early September 2008.  Though we all know that good news does not sell newspapers and that the O.C. Register is notorious for skewing data to achieve their ends (increased newspaper subscriptions), Mathew Padila did admit that homebuyers are snatching up foreclosures.  This is true.  As a Realtor, I have made offers with buyers on short sale properties and bank owned properties (foreclosures) and have found pretty stiff competition with multiple offers and buyers often out-bidding each other by anywhere from $5,000 over asking price to (I’ve seen) $100,000 over asking price when the home is priced so far under market value that home buyers and investors realize to get the home, they have to sometimes go WAY over asking price. 

Placentia Home Example:

  A home in my own neighborhood in Placentia (smaller unit) was selling as bank owned for $399,990.  I put an offer on this home at full asking price.  It turns out, there were already (1st day on market!!!) several offers already on the table, according to listing agent.  The home ended up selling for (get this) $455,000.  So, although it may be true that there several foreclosures on the market, the GOOD ONES are being bought up immediately and buyers are often paying MORE than asking price when they realize what a ridiculous deal it is. 

Furthermore, the article in the O.C. Register does not specify the number of foreclosurs per city / area.  What this means is that there the 3,300+ homes are mostly in areas where most of the bad loans (stated income negative amortization or adjustables) were issued.  The real numbers for local cities?

Placentia Foreclosures:  25 Bank Owned (REO) Properties out of 186 homes on the market as of TODAY, October 12, 2008.  That’s a whopping 13% baby!

Yorba Linda Foreclosures:  15 Bank Owned (REO) Properties out of 384 homes on the market as of TODAY, October 12, 2008.  Hold on to your hats and glasses for this stat — That’s a whole 4% !!!!! 

Brea Foreclosures:  7 Bank Owned out of 111 total properties (again as of today)…that’s 6% folks.

Is Supply really ahead of Demand as Mathew Padilla says?  Well, in some cities, but when you have only 15 foreclosures listed on the MLS in Yorba Linda out of 384 homes, I wouldn’t call that a majority.  In fact, I’d say that these 15 properties are either going to be bought and gone tomorrow or there is something seriously wrong with some of them.  Buyers are buying REOs like they’re going out of style, when they are priced right (which 90% they are) and they are in good areas.

Looking for a foreclosed / bank-owned property in a great area?  Let me do the research.  If you’re looking in the North Orange County area (Fullerton, Placentia, Brea, Placentia, Orange, Anaheim Hills) or even some of the perimiter cities, I’ll run the search for you and send the properties to your email.

Send your request to:  npetrossi@yahoo.com    or visit my website, click here —> Nic’s Website

For more foreclosure information, check out RealtyTimes, RealtyTrac.com or Yahoo! Real Estate.  (make sure you click the “foreclosures” bubble.  Your best bet is to send your request to my email since I can weed out the homes that are already in escrow or in neighborhoods that are right for you.

$700 Billion Bailout Plan — What does this mean for Placentia Homes, Yorba Linda Homes, Brea Homes and Orange County Home Values?

$700 Billion….what does this mean for values of Placentia homes, Yorba Linda homes, Brea homes, and Orange County homes in general?  Well, first of all, I want to address Senator John McCain’s response to the question asked in the debate on Tuesday, October 7, “What are you going to do to help our economy?”  The answer was something to this effect — (For the government to) Buy up all those bad loans in America.”  Why is this significant?  Though foreclosures in Orange County (and the rest of America for that matter) are still going to be commonplace in 2009-2010, the ability of people stuck in Negative Amortization or 3,5,7 year adjustable mortgages to refinance their home after the government has “bought” their old loan will enable them to lower their payments and remain in their homes.  This won’t be the cure completely, but will at least stop the bleeding of the downward spiral of home prices in Yorba Linda, Placentia, Brea, Fullerton, and Orange County as a whole.

   Foreclosures and short sales are killing home prices.  When a Realtor prices a home well below the comparables (comps), and the home sells for much much less (as in a short sale situation), the rest of the “regular” sale homes in the neighborhood suffer.  When a bank hires a Realtor to sell a placentia bank owned (Placentia REO) home and that Realtor does a BPO (Broker Price Opinion) and prices the home way below the comparables, AND it sells, all the homes in the neighborhood suffer. 

So, what hopefully, though someone can correct me if I am wrong (and I’m open to correction) part of this bail out plan encompasses is relieving a large percentage of home owners with loans that are about to “re-set” sometimes to double the monthly payment (as in an adjustable situation) from this burden and giving them a chance to remain in their homes, NOT have to give their home back to the bank, this helps to alleviate some of the downward pressure on homes in America.

This post is from a Placentia Realtor / Yorba Linda Realtor.  Comments and feedback are more than welcome.  There is much that remains to be seen and see where we are once the dust settles.

 

To Spend or Not to Spend — Tips for New Realtors (and experienced Realtors?) from a Placentia Realtor / Yorba Linda Realtor

When I started my career real estate as a Placentia Realtor, Yorba Linda Realtor, Brea Realtor, I wanted to do EVERYTHING in terms of marketing.

I wanted to do the postcards, the newsletters, my wife is a runner so we had a booth at the 5K and 10K races.  I did the internet advertising for a Schools website that promised me leads.  What this added up to was more money, more money, more money.  This was dangerous since a HUGE chunk of the money from the few deals I had were going to marketing ideas that DIDN’T WORK and yielded nothing for me in terms of business.

So, what do I do now?  What do you really need?  What REALLY works?

Although there is  no cookie-cutter recipe to this business, I found that…

A)  You have to have a website.  Click here for an example.  Besides for the obvious features (your name, face, contact info), your website should have something people want or need.  They can get a mortgage calculator on a million different websites.  What does YOUR website have that others don’t?  Wht is unique about your site that will bring people back and make them regular visitors?  Make sure that they can search the MLS (search for homes).  But that is a given.  My website will have a link that will allow prospective buyers to view boundary maps of different schools to see WHERE they need to buy if they want their children to go to ABC Elementary.  City Information with restaurant locations / movie locations is also a good idea. 

B)  Notepads.  “Notepads?,” you say…yes notepads.  Why?  Well, they’re relatively inexpensive, (I think I pay $200 for 1000 shipped to my office).  They have shelf-life, meaning they last longer than the trip to the garbage can.  AND, people like em.  They use em.  My uncle saw a random stranger in a grocery store using my notepad to check off their grocery list.  Make sure you don’t get cute with your notepads and use some fancy design, sunset, beach scene, mountain scene, so they can’t see what they’re writing down.  Think simple for your design.  Name, contact info huge at the top, that’s all you need.

  The newsletters and postcards are still good, don’t get me wrong, but they just don’t yield much in the way of business.  Focus on getting your website up higher in Google / Yahoo! natural search results.  Talk to a very good web designer on how to do that with key words.  85% of people are using the Internet to find homes.  DON’T SKRIMP on your website…pay extra to make it eye-catching, unique, well-thought out.  People get an impression of your abilities and character from your website…it’s where they get to know you anonymously before they decide on actually calling someone.

I hope this helps…maybe even some of you experienced agents pulled something out of this you can use.  Good luck!!!