Jack of All Trades

As a real estate professional in today's market, every agent must possess a multitude of skills in order to succeed. Thus, we become a Jack of All Trades to Master One - Real Estate Sales!

The Market Specialist - We must consistently be an expert in our markets. We must understand current pricing trends as well as neighborhood demographics. This is an ongoing study for us as markets continue to change ever so rapidly.

The Economist - While we do not have a crystal ball to see the rise or fall in the market (though many people seem to feel we do), we must be focused on not only our local economy, but our national and global economy as well. The last 5 years definitely proved how important global economic stability is to our business.

The Accountant - Of course we must obtain the skill to add and subtract, as well as calculate a client's amount received or needed to close a transaction. Now throw in the short-sale, bankruptcy, and other debts owed and we have a complete balance sheet to juggle (all the while trying to meet our client's desired bottom line).

The Marketer - Yes, marketing! Isn't that the main aspect of what we do? We market ourselves, market our listings and even market our buyers to prospective listings! If you are poor at this, you are in for a long and unprofitable ride.

The Psychologist - This is a new one for me. Yes, I have become somewhat of a psychologist for my clients. The pain and suffering of not getting that great deal, moving under stressful conditions, disagreements with spouses over price, and having to accept much less than anticipated on a sale are only a few of the reasons we console and listen to our clients.

The IT Specialist - Where would we be without computers. We need to be up to speed with the latest gadgets, marketing software and web sites, programs, etc... As the majority of our business moves to the web, a background in this area is definitely beneficial (or a necessity).

There you have it. I am sure I left out a number of skill sets, but you get the point. To be successful in this business one must exceed at many trades to master real estate sales. I wouldn't have it any other way!

Mortgage Lending Getting More Stringent?

Over the past 2 weeks I have come across one article after another regarding the difficulty to obtain a mortgage. While this is nothing new in the real estate lending world of today, we are now faced with another huge obstacle to climb - a depleted FHA fund.
According to the National Association of Realtors, FHA financing was obtained by 40% of home buyers. That is a huge number for one lending program, yet a positive one to maintain the proper balance of housing inventory levels.
The FHA capital reserve fund has gone below statutory minimums. What does this mean? A change in the FHA guidelines is inevitable. The change may consist of one (or all) of the following: more money down required from the borrower, less seller contributions, a higher MIP, and possibly not allowing the up front MIP to be financed. Of course, NAR strongly opposes any drastic and sudden change, as this could eliminate a large percentage of home buyers.
Now, couple this with Fannie Mae and Freddie Mac guidelines that continue to get more conservative, and a flow of bank-owned foreclosures to hit the market, and values could fall even more.
As a home buyer, it is still an excellent time to buy. Work closely and early with your real estate professionals to ensure you are up to date in program guidelines, and form a tight budget to enable more savings for your home purchase.
As a real estate professional, keep in touch with the latest industry changes by going to your member access site for the National Association of Realtors. While change is coming, we can be prepared and ultimately the lending market will self-adjust.