DEAN GRAZIOSI: DEAN GRAZIOSI REVIEW – REAL ESTATE FEED BY DEAN GRAZIOSI

If you are in the process of purchasing a new home, the amount of money needed for a down payment may be more than you expected.  There are some ways in which you may be able to get assistance with your down payment.  If you are in need of assistance with your down payment, there are many programs that may be able to help.

If you are a first time home buyer, there are many programs that may help.  A first time home buyer is anyone who has not had ownership interest in a home within the last three years.  First time home buying programs are not only for those who are purchasing their first home, but can also be applied to anyone who may have had a foreclosure more than three years prior to buying a new home.  This improves your chances of qualifying for assistance greatly.

There are also state agencies that were designed to help buyers with their down payment.  These programs consist of buyers acquiring a loan from the agency in order to cover their down payment.  The buyer is then responsible for paying the money back to the agency on a monthly schedule.  The interest rates on these types of loans are usually lower than what a bank would offer.

You may also qualify for grants that are provided by the state you reside in.  These grants were designed to assist home buyers who are not able to come up with all of the required down payment.  There are certain requirements that must be met in order for anyone to qualify for these types of grants.  Consult your realtor or mortgage broker; they may be able to provide you with more information regarding grants.

If you are a veteran and you qualify for a VA loan, oftentimes there is no down payment required.  The VA loan covers the closing costs and down payment.  If you are a veteran and would like more information on acquiring a VA funded mortgage consult your local Veteran’s Administration office and they will be able to explain what is required.  Your mortgage broker may also be familiar with the requirements of a VA loan and can tell you if you qualify. 

Don’t let you inability to come up with a down payment hinder your dream of purchasing a new home.  There are many programs and agencies that were designed to help people in your situation.  With a little research and legwork, you may be able to qualify for a home loan and have the money required for the down payment.  Coming up with a down payment can be a stressful undertaking, but with the help of the agencies that were put in place to help, it has just gotten easier to buy a new home.

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With the real estate market the lowest it’s been in years and the market being flooded daily with foreclosed properties, now may be the perfect time to pick up a home at a large discount.  Although, many foreclosed homes come with their own set of issues, there are some diamonds in the rough that can be found for a fraction of what they are really worth.

Foreclosed homes sell significantly lower than their actual value.  This is due to the fact that the properties are now owned by the bank.  Because banks tend not to have a need for vacant homes that are costing them money to insure and keep in decent shape, they are looking to get rid of them as fast as they can.  What this means for you, is that you may be able to find a home that needs minimal work to make it look like new again. 

There are two ways in which you can purchase a foreclosed home from the bank.  One is dealing directly with the bank and submitting your offer to them, the other is to purchase homes at a bank held auction where bidders determine the selling cost.  If you choose to deal directly with the bank, you may be able to negotiate a better deal than if you were to involve a third party.  The benefit of purchasing a home at auction is that you may be the only person interested in the property and be able to purchase for a lower price than the bank was initially asking.

There are some challenges with purchasing a foreclosed property as well as benefits.  Once all the paperwork has been signed and you are in possession of the property you may discover problems that you weren’t aware of before the purchase was finalized.  To avoid finding yourself in this situation, you may want to have an inspection done on the property so that you are aware of any problems before you close on the property.  An inspection is relatively inexpensive compared to what you may have to pay in order to make the property livable.

You may have heard horror stories about the problems that come from buying foreclosed properties, while some are in dire need of repair there are some out there that are in nearly perfect shape.  One of the most important things you need to do before purchasing a foreclosed property is to do a bit of homework.  By doing some research into any problems the neighbors may have had with plumbing or flooding issues, you will get more information from a friendly neighbor than the bank might offer.  Research is the key to finding a foreclosed property that will need minimal work to become your dream home.

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Once you’ve set up an appointment with a possible prospect, you should be well prepared with your presentation so that you can direct your seller through the entire home selling process without any problems. You don’t have to read a line-by-line sales script for you to be able to nail the agreement. All you need to do is have a well thought outline of what you want to talk about during your meeting with the prospect. Creating a listing preparation should be given enough time so that you can be sure that everything is concise and planned. Here’s how:

• When you first meet these people, you need to build rapport initially. Make sure you take a few minutes and have small talks. Get them comfortable with you before you even start with your material.
• Make sure that you’ve internalized your listing presentation. This should enable you to ask your seller a few questions that will hit every point of your presentation and this should not sound like a sales pitch. You are in charge of the appointment that is why you have to be sure that you are the one asking the questions. For every point that you want to tackle, you start by asking a question and then let your seller do the rest of the talking.
• As the real estate agent, you main role is to actively listen. This is a fact. The best presentation always involves actively listening to the seller most of the time. With your presentation, 80% of the time should be spent on listening to the seller talk while the other 20% should be spend asking and answering any questions that the seller might have. You have to let your prospect do the talking.
• Creating a listing presentation does not necessarily mean having a PowerPoint presentation although it would help a lot to have visuals. In this case, you should have samples of your marketing and advertising materials such as brochures and flyers. You might as well include testimonials and case studies of your previous happy customers. This should help you in increasing your ‘prospect to client’ conversion rating.

So, don’t just memorize a script that is already pre-written. This will make you sound mechanical and you will surely fail in delivering a good rapport with your prospects. Instead of focusing on your script, focus on your clients, listen to every concern and monitor his or her body language. Be exceptional in giving a listing presentation.

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You have done all your homework.  You know or sense that another broker or agent will be discussing the possibility of listing the property before a final decision is made.  The moment of truth has arrived.  At first, these meetings may have troubled you.  No longer.  Now, every listing we pursue shall be addressed in the same manner.

We will be true to our broker, true to our profession, true to ourselves and true to our client.  After all, they all go hand-in-hand.  Meanwhile our professionalism and handling of our marketing plan will blow the competition out of the water.  The seller will be so impressed that even if they take a meeting with another agent, they will be thinking about your presentation.

Good listing presentations begin with a relaxed, friendly disposition.  If you sense a price disagreement or are put off by the fact the seller will be consulting another agent, take that chip off your shoulder and concentrate on the job ahead.  Hey, this may well be the biggest asset in the family.  The seller is just trying to do what is best for their family.  It is up to you to convince the seller that what is best for their investment is to retain your services.

Your listing meeting begins well before you arrive at the residence.  In some cases, it may have begun months ago when you heard there was a possibility the home would come on the market.  Obtaining the perfect listing is often your ability to build both a personal and a professional relationship with the seller.  Brokers do not like to talk about it, but we know that is important.  There is a personal side to real estate and that is a side we enjoy.

You have built a personal and professional relationship wit the seller.  In fact, that is why you have arrived at the residence to make your listing presentation.  Because you have this relationship, you will always maintain your demeanor and will have the ability to present your case and marketing plan.

Before you arrive at the home, you have done your legwork and your homework.  You may even have confidentially consulted your office manager or other high profile agents in your office.  This is always a good idea.  You can never have too much input from knowledgeable experts.  

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As every real estate agent knows, the most difficult part of getting that new listing is establishing the right listing price.  If there was not a human side to every listing price, arriving at the fair market value is relatively simple.

Well, there is a human side to the listing price.  And, that component needs to be addressed.  Once in a rare while, the listing agent meets a seller who wants professional advice and truly acknowledges the fair market value.  However, those sellers are few and far between.

More often, the seller is aware of certain homes that have sold in he neighborhood and can build a street-savvy, hearsay case for their own selling price.  Rarely, is the seller’s idea of a listing price on the mark. 

The agent must now walk a delicate balance taking into account the fair market value and the personal feelings of their client, friend and seller.  That is the tricky part, isn’t it? 

At the same time, the agent must be professional, courteous, filled with integrity and accurate.  We all know that, historically, we have been surprised.  Sometimes, listings have sold for more than our data suggested.  Far more often, and especially in the current marketplace, listings have sold for less than was merited and below market value.

While there is no question that this is a buyer’s market, houses are selling.  And, properly priced homes sell for market value.  Brokers and their agents know that it is a buyer’s market and, don’t kid yourself, so do your sellers.

Even though a property’s fair market value may be less than your seller hopes, the agent’s responsibility is to provide an accurate fair market value analysis and a well-designed marketing plan that will accomplish that goal.  These two components go hand-in-hand and experienced agents know that one without the other does not work.

Yes, agents do take certain listings at above market value prices, but they have upheld their integrity and the integrity of their firm by advising the seller of the true market value.  If the seller chooses to disregard the recommended asking price and fair market value, the agent then has to make a decision. 

Many times, the agent will take the listing above market value with the agreement that a reduction will occur within a certain time frame.  We dislike admitting it, but we all know that happens.  This can actually be a strategy certain brokers and agents employ.  Yet, even that strategy will only work if the true market value has been discussed and substantiated.

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