Effective Methods to Generate Real Estate Leads

Generating quality leads is the most important aspect of running a real estate business. If there are no leads, you won't make any sales. And if there are no sales, there is no revenue. Needless to say, all realtors spend a lot of time collecting the contact information of potential clients.

You can employ different techniques to generate leads and each one of these techniques has its merits and demerits. Here we will give a quick overview of the most common lead generation methods. We can divide these methods into two broad categories - traditional methods and modern methods.

Traditional methods

Traditional methods involve leveraging your influence among your friends and peers.

Ask your friends for testimonials and referrals. Your friends will have other friends and if they really trust you, they will readily recommend you to their circle of friends.

There is one disadvantage though. Many people are not interested in mixing their personal life with business and as such they will probably not want to do business with a family member or a friend.

You should also consider going round your locality and knocking on the doors. You should know the people in your neighborhood and they should know you as well. However, don't be an aggressive salesman. Introduce yourself and ask if they would like to subscribe to your monthly newsletter with lots of useful information about selling and buying. Collect their address, phone numbers, and email address and send them the promised newsletter. The biggest disadvantage is that this can be time consuming.

Networking

Family gatherings, presentations, seminars, and conventions present a great opportunity to network with potential clients. Try to attend the events attended by your potential clients. For example, if you go to an open house, you are more likely to find potential clients interested in buying or selling homes.

Cold calling

This method involves calling people hoping that those who bother to attend the call might be interested in hearing what you have to say. This is not very effective. However, if you choose your target audience carefully, you might see some results. Try to have an engaging conversation with the person and ask if you could get an appointment.

Direct mail

This involves sending mails to a targeted list of people. Make sure that the letter addresses the specific concerns of the people you are writing to. Also, your letter should look as professional as possible. If people find the content useful, they might contact you. After all, that is your goal.

You may also consider sending postcards. They may leave a greater impact because the reader doesn't have to open the envelope to see the content. Make sure that the design on the post card is attractive. Also, your copy should be compelling enough. Include a call-to-action. Ask them to call you or visit your website.

Email newsletters

The email newsletter is perhaps the most effective of these lead generation methods. In order to receive your newsletters people have to subscribe first and this is a clear indication that they are interested in your service.

While it is okay to use your newsletter to promote your services, you should also include useful content. If you feel that you don't have the expertise to write an article, you could perhaps use one of those free-for-reprint articles.

As you can see, each method discussed above has its merits and demerits. In order to get the best results, you have to use more than one method.

Need lead product solutions? iLeads delivers results that fits your needs! We are a lead solutions provider with lead generation covering Insurance, Lending, Real Estate, Direct Marketing, as well as Lead and Data Analytics. Contact iLeads today!

Maintaining a Good Broker-Lender Relationship

As a broker, one of the most important things to establish is a good relationship with mortgage lenders. The relationship between broker and lender can mean the difference between a smooth, speedy loan process and one that drags on with obstacles to overcome.

Most brokers establish relationships with many wholesale mortgage lenders because one simply cannot provide all of the necessary lending needs. Buyers look for brokers who can show that they have positive relationships with lenders. Any adjustments to the terms of the loan require a strong bond between the broker, lender, and borrower.

So what can a broker do to maintain a positive broker-lender relationship? Here are some tips:

Be prepared. You need to be familiar with all lender guidelines in order to determine the best lending program for the borrower. You also need to be able to make sure that the loan fits the lender’s conditions.

Have control of the loan process. Your goal should be to submit an acceptable loan package and ultimately close the loan. Constant communication is necessary so that you know what is going on during the entire loan process.

Take advantage of technology. Being technology-savvy allows you to submit loan applications online. Brokers can also check the status of loans on the web as well as check loan conditions.

Be aware of your work. Accuracy and completion of loan submissions will help to ensure a smooth approval.

The loan process requires effort from all parties involved. The reality is that everyone is paid on loans that are closed. It’s the mortgage broker’s job to represent a loan package that shows that a lot of effort and expertise was put into the process.

Struggling to find buyers that qualify? RealTAG gives you the real estate content that drives consumers to your site, and gives you an inside look at their financial situation. Close more real estate deals and generate qualified leads by contacting RealTAG today!

Bigger and Better Data in the Real Estate Market

Has your real estate company made use of big data yet? Before you start using big data, you need to understand the basics of the term. Big data is not just a lot of data, but the complete technological environment where all the data is kept, executed, accessed, recovered, and shared. And all these operations are performed in a completely secure environment. 

This big data environment also includes the data that was abandoned because it was too unstructured. In usual cases, data that does not fit in the logical structures of the corporation is discarded. However, in a true big data environment, such data is broken down into smaller chunks so that it becomes easier to index. Data driven organizations of today are adding more and more to this domain, and every data bit like location information and consumer behavior becomes a part of this huge volume of data.

Using data analytics, real estate professionals can look beyond the obvious. These analytics are used to uncover hidden trends of property sale and purchase. Also, with these trends, behavior economics can be predicted more easily. Big data supporters have always supported analytics for their ability to uncover hidden patterns. These patters allow real estate professionals to create a more impressive marketing campaign. Big data has the ability to find consumer behaviors, whereas typical transactional data lacks this feature.

The Better Big Data Approach: Delegating Different Teams

Ideation is best left to folks who thrive on creative challenges. Usually, the ingenious thinkers, the convention-challenging risk takers are easily identifiable in a team. Along with your data manager, create a small team where such folks are assigned to carry on with experimentation. However, ensure proper reporting protocols are in place. Think of this as your innovation pipeline. Don’t expect this team to deliver from day one. You need to be patient and let innovation evolve. Soon, your innovation pipeline will feed your sales funnel and the ROI on your big data investments will put a smile on your face!

As a real estate business, you need a competitive advantage to flourish in an extremely fickle marketplace. With this objective in mind, get ready to embrace big data in its entire form—the defined and the explorative side. More than this being a big data strategy, it is about your mindset. Are you ready to allocate time and resources to outdo contenders or do you find safety in staying grounded even when the competition is closing-in?

Contemporary Big Data Trends

Ideally, data analysis should be done without bias. It is often seen that analytical teams are more predisposed towards analyzing consumer and marketing-related data. Data analysis should be handled by dedicated professionals who can handle systematically-indexed and random sets of data to derive meaningful information. Big data will take time to become omnipresent. More standards will slowly rise in this niche. However, as a real estate business, you cannot wait for standardization of big data. It is better to understand the current trends, start your big data journey, and be resourceful enough to help to shun visible pitfalls and build upon greater analytic insight.

Struggling to find buyers that qualify? RealTAG gives you the real estate content that drives consumers to your site, and gives you an inside look at their financial situation. Close more real estate deals and generate qualified leads by contacting RealTAG today!

Time for Lenders to Adopt a Reasonableness Standard

Some regulatory actions and decisions taken by the federal government last year indicate that lenders will have to adopt industry standards if they want to comply with the guidelines and avoid hefty fines.

Recently an appeals court found that the origination process followed by countrywide was flawed. The jury went to the extent of saying that it amounted to fraud. The verdict landed Bank of America in trouble. The lender bought Countrywide in July 2008 just as the country was falling into a financial recession. Now Bank of America is being held liable for fraud over the deceptive mortgages sold by its countrywide unit during the housing boom. In fact, the US Department of Justice has already started pursuing claims against Bank of America and some of its top executives for the rapid mortgage approval process followed by the bank.

Bank of America has already resolved a large number of outstanding litigations with investors and the now the lender is focusing on settling the issues it has with enforcement agencies like the US Department of Justice.

What this means for lenders?

In recent times, mortgage regulators have taken action against lenders experiencing fast growth with the objective of ensuring that they have adequate infrastructure to support the growth. In particular, the regulators are interested in finding out whether the existing infrastructure is good enough to handle the volume of business the lender does. This is usually done by comparing one lender to another lender of similar business volume and size.

These actions seem to suggest that the regulators are trying to develop a generalized standard as against specific standards that need to be met.

Until now, lenders only had to fulfill specific requirements. This allowed them to compare their specific actions to certain specific standards and determine whether they were fair or not.

But now we are seeing the creation of a generalized 'reasonableness' standard that requires lenders to evaluate their performance on the basis of the procedures and processes adopted by their competition. This creates extra pressure on lenders to build adequate compliance infrastructures because just meeting the minimum statutory requirements will probably not be enough in the future.

In addition, when more and more lenders implement such practices to protect their customers and avoid defaults, it will put extra pressure on companies that lag behind their competition.

What this means is that lenders can no longer afford to be content with meeting the minimum regulatory requirements. Instead, they have to measure their performance against their competition and ensure that their compliance performance is satisfactory. They also need to review their conduct and business practices from a generalized 'reasonableness' perspective.

In other words, a lender's compliance will always be viewed in retrospective. This means that the lender should be able to predict and review possible outcomes and conclude that their practices are reasonable and that they are not engaging in fraudulent activities. This will not be possible if lenders do not keep themselves abreast of the happenings in their industry. They need to watch the developments in the marketplace and ensure that their actions are justifiable and mainstream.

Struggling to find buyers that qualify? RealTAG gives you the real estate content that drives consumers to your site, and gives you an inside look at their financial situation. Close more real estate deals and generate qualified leads by contacting RealTAG today!

Severe Weather Conditions Don’t Batter Reinsurers as 2014 Q1 Trends Emerge

Reinsurers must be smiling a lot as Q1 reports for this year show up. Most insurers seem set to gain from uncompromised capital and manageable claim volumes. Underwriting teams have performed rather well with 2014 being a remarkably silent year in terms of catastrophes. With no major natural disasters so far and no discouraging weather forecasts, the immediate future looks secure for carriers.

Staying Positive with a Guarded Approach

After 2012, ever since the likes of Sandy battered the coastal regions, river/ocean dwellings and businesses have been spared from permanent damage. However, it would be wrong to state that the entire industry hasn’t seen any challenges in the first quarter of 2014.

As market optimism gained momentum after the Holidays, winter storms started rolling in. With the onset of 2014, a polar vortex gripped the nation, bringing freezing temperatures to most states. This was interpreted as a part of a global weather pattern since European nations too suffered from winter storms and flooding (very severe in the UK). However, the reinsurance industry isn't complaining much about these events.

Most businesses that seek comprehensive coverage against various types of natural disasters usually pay more-than-average premiums. Further, the smaller insurers have typically stayed away from taking upon too much of reinsurance risks. The bigger, more established insurers exposed to claims surfacing due to snowstorms have been able to absorb the shock.

Yes, insurers have received storm related claims but the overall situations remains manageable for most insurers. Most claims haven’t sought compensation for total overhauls or large scale construction. Most properties suffered partial damages. Common damages include collapsed roofs, burst sewage lines, power failures, and auto accidents but with little loss of life or excessive damage to property. Many needed exhaustive repairs but little rebuilding. This ensured that carriers’ bottom line wasn’t dented. Further, reinsurers are exposed for a part of the total compensation only.

Making Sense of All This

The significance of this upbeat trend assumes greater importance if the severity of cold and snowfall-caused losses are taken into consideration. The losses are at their highest since 1980. The entire nation has been suffering an unexpectedly long and brutal winter. This has given rise to more commercial and personal claims. Still, the industry at large remains positive, finding security in its capital reserves. The insurers’ buffer has been further boosted by better consumer activity in the first quarter.

Agents are being increasingly questioned by consumers who have had a recent, good run on their credit histories. Reinsured mortgages are being sanctioned with lesser apprehensions. This is creating a cycle of positivity—a better capital position is allowing insurers to take upon more risk which is further influencing better consumer interest. Even the catastrophe bonds that provide some level of reinsurance protection against losses caused by winter storms are expected to deliver, not causing any principal loss.

Need lead product solutions? iLeads delivers results that fits your needs! We are a lead solutions provider with lead generation covering Insurance, Lending, Real Estate, Direct Marketing, as well as Lead and Data Analytics. Contact iLeads today!

Homes with Sustainable Features are More Popular than Ever

What are the features that buyers look for when they shop around for their new home? Do they really think that sustainability makes a home more attractive?

Yes. A recent report published by the National Association of Realtors claims that sustainability improves the saleability of a home. In fact, both young and old buyers are looking for homes that score high in the sustainability department.

But which features top the buyer's list of preferences?

The sustainable features that are particularly important to buyers are energy efficiency, eco-friendliness, and commuting costs. Almost 32% buyers consider commuting costs while buying a home and 9% buyers insist that the home should have solar panels installed on it. Heating and cooling costs bother 36% buyers. Over 40% buyers look for energy efficient appliances and lighting. At least 9% buyers insist that the home should have eco-friendly community features.

The survey studied the behavior of buyers and sellers and broke down the trends by the respective generation of each respondent.

The questions were aimed at discovering which generation the majority of buyers belonged to and what size homes were being bought by them. It also tried to assess the popularity of multi-generational homes in today's housing market.

Methodology

The survey consisted of 122 questions. The questionnaire was sent to a random sample of 148,011 people who recently bought homes - that is between July 2012 and June 2013. A total of 8,767 people participated in the survey.

Here are the findings.

Over 60% home buyers belong to Gen X and Gen Y. Younger people account for 16% of the buyers whereas the older generation accounts for 14%. Only around 9% people belonging to the Silent Generation bought homes during this period.

Almost 76% of the first time home buyers belong to Gen Y. As you can imagine, there aren't many first-time buyers among the older generation. Only 2% buyers belonging to the Silent generation (born before 1946) are first time buyers.

Interestingly, buyers of all age groups start their home buying process online. They look up properties for sale. Buyers belonging to Gen Y also search online to find out more about the process of buying a home.

People born during World War II (Silent Generation) hire an agent or a broker to help them find their dream home.

Over 50% of Gen X and Gen Y buyers used their mobile phone or tablet to help them find that perfect home. In fact, 26% Gen Y and 22% Gen X buyers purchased a home they found via their mobile devices.

Younger buyers mostly hired agents recommended by their friends, family or neighbors. Older buyers were far more interested in hiring an agent they had worked with in the past.

Almost 88% buyers got a mortgage to buy their home. While almost all buyers belonging to Gen Y got financing to purchase their home, only around half of Silent Generation buyers got financing.

Seller profile

Almost 29% of recent sellers belong to Gen X. And younger sellers tend to hire the same broker or agent for their home purchase.

Get your share of the $1.5 trillion in Adjustable Rate Mortgages scheduled to reset this year! Imagine having up to a 20% funding rate at a low, cost effective price per lead! With our ARM plus leads, you can. Get in touch with ARM Source today!

Tips to Help Agents Design an Effective Marketing Strategy

As a real estate agent, you spend a lot of time marketing your clients' listings. But do you also spend time marketing yourself? If you do not market yourself properly, people will not want to work with you. They will not even realize that you are a real estate agent.

How to market yourself?

Marketing has several facets and you need to take care of every one of them. Here are some tips and ideas to help you design a sound marketing strategy for your real estate business.

Marketing yourself isn't much different from marketing your clients' listings. In both cases, you will be employing the same techniques.

Effective marketing has three component:

Finding the right audience

 You should know who your target audience is. If you are trying to sell a listing, you should know where the buyers are. Your marketing efforts should be targeted at them. For example, there is no point in trying to sell the listing to a family that has just moved into its brand new home. They will have absolutely no interest in buying. You can figure out who your target audience is by following these simple tips. The target audience depends upon the kind of home you are trying to sell. If you are trying to sell a starter home, you should target newly married couples who live in the neighborhood. If you are marketing a high end luxury home, you should target the affluent sections of the society. Selling a big ticket home to people who can't afford to buy it is a waste of time.

If you are trying to market yourself, you should focus on people living in the towns where you provide your service. As you can see, it is relatively simpler.

Choose the right medium

Choosing the right medium to market your listings and service is crucial. Think about marketing and perhaps the first thing that comes to your mind is the internet. While online marketing is highly effective, it is equally competitive.

In order to get the desired results, you need to design an effective online marketing strategy. When it comes to online marketing, establishing a presence on social media is imperative. You should also consider direct email. If you run a website, encourage people to subscribe to your newsletter. The beauty of this method is that it is highly targeted. The people who subscribe to your email are those who actually want to hear from you.

You should also consider advertising your listing in magazines. If the magazine reaches your target audience, it makes sense to promote your listing / service there.

If you do not choose the right medium, your marketing efforts won’t produce the desired results.

Get your message across

So, you have identified your target audience. You have also decided how to reach them. Now you have to get your message across. If your message is not spot on, all of your efforts will fail.

Your message should directly speak to the target. Don't use general language in your messages. Be specific. You should also ensure that your message encourages people to take the desired action. This is crucial for effective marketing.

Use these tips and ideas every time you launch a marketing campaign to get the best return on your investments.

Need lead product solutions? iLeads delivers results that fits your needs! We are a lead solutions provider with lead generation covering Insurance, Lending, Real Estate, Direct Marketing, as well as Lead and Data Analytics. Contact iLeads today!

Why Real Estate Agents Can't Ignore Public Relations

Public relations play an important role in brand building. However, in the real estate industry only big brands seem to care about PR. Most agents and small brokerage firms still don't have a well-defined public relations strategy. This could be due to a scarcity of resources. Few agents can spend thousands of dollars on their PR machinery. There are also agents who simply don't understand why public relations are important.

All agents should have a public relations strategy in place. To start with, you need to do whatever you can to position yourself as an authority on all matters related to real estate. You should also gain the support of your community. Enjoying sufficient community support is crucial to building your brand. A well-designed public relations strategy will help you accomplish both.

The two pillars of your public relations strategy are relationships and consistency.

You must make a consistent effort to publicize your name. Some agents make an initial effort, but as they get busy, they put their PR efforts on the backburner.

Building relations with media outlets

Media outlets are a great platform to reach out to potential clients. Building relations with media outlets might take time, but it is well-worth your efforts.

Here's how to get started:

Decide which media outlets you want to be quoted in. You should consider websites as well as local media outlets. The local newspaper, for example, is a great platform to bring attention to your service. You should also try to get the attention of media outlets focusing on the real estate industry.

If you can get quoted in a newspaper report, you will be able to show potential clients in your neighborhood that you are an expert on real estate. Getting quoted in a real estate industry outlet will substantially increase your credibility overnight.

When you get quoted in a news story on a real estate website that gets tens of thousands of visitors a day, you get to reach agents and potential clients across the country. This leads to referrals and sales.

Once you have identified the media outlets in which you want to be featured, you should reach out to them. Tell them why they should get tips and advice from you. Send an email each month with interesting information and story ideas. You will probably not hear from them, but don't give up. Building relationships take time. Your objective is to get quoted in a local story, and by constantly sending story ideas to media editors and reporters, you are making your job easier.

Gather the support of your community

A lot of agents make valuable contributions to their community, but they keep mum about it. Don't commit that mistake. If you're involved in a cause, you should write a press release about it.

The press release should be about your cause. It should also include one or two quotes from you. Your goal is to draw attention to your service by showing your association with the cause. Send the release to reporters and editors in your contacts list.

Many national media outlets take news stories from local media outlets. So if your PR efforts are consistent, over time you will be getting calls from news reporters and editors all over the country asking for your opinion on important industry related matters. That is when things get really interesting.

Get your share of the $1.5 trillion in Adjustable Rate Mortgages scheduled to reset this year! Imagine having up to a 20% funding rate at a low, cost effective price per lead! With our ARM plus leads, you can. Get in touch with ARM Source today!

Severe Winter to Squeeze the Earnings of Property Insurers

Harsh weather conditions cause property damages and financial losses. For Americans, this year's winter was one of the worst in recent memory. In fact, winter storms brought many parts of the country to a standstill. Administrators had a tough time keeping the roads clear for vehicles and pedestrians during the winter season. In fact, officials across the country are still paying the bills.

In Atlanta, the cleanup costs amounted to $13.5 million. The situation was even worse in many other parts of the country.

Severe winter also hurt property insurer's earnings during the first quarter. In fact, this year's winter was probably one of the costliest in the country since 1980. Insured losses during the period were more than 1.5 billion USD.

Besides causing major property losses, the adverse winter affected several businesses. Many companies had to deal with supply chain issues and business disruptions. If you add sinkholes, train derailments and mudslides, it is not hard to see that the first quarter loss is above average.

Winter isn't the only cause of property damage in the US. The Atlantic hurricane season is even more dangerous. Although weather forecasters expect this year's hurricane season to be less active, you never know until the storms hit the shore.

Several independent studies note that property insurer's net income during this quarter is likely to be challenged. However, since the market for securities is strong, they should be able to sail through.

This year's severe weather upset business operations for several companies throughout the country. Severe weather conditions pose a continuous threat to the bottom lines of many businesses in the US.

FM Global, unarguably one of the biggest business property insurers in the world, recently conducted a poll of the workforce in the US. Over 70% of the full-time workers in the US said that this year's winter was the worst they had experienced in five years. More than 25% employees said that their company had been hit by the weather. Unfortunately, most of them didn't have any emergency plans to continue their operation during the hostile weather conditions.

However, winter-related financial losses have caused many companies to rethink their strategies and change the way they do business. That is a welcome move because the weather is quite unpredictable and hence companies should avoid complacency.

Harsh winter can cause property damage and financial loss. It may also affect the organization's competitiveness. Businesses need to be resilient and should be able to deal with all weather-related emergencies.

Businesses can prevent property damage in winter by following these guidelines.

·         Don't expect the winter to be lenient. You should plan as though freeze-ups are going to be certain. This is imperative even if your company headquarters is located in a warmer climate where severe drops in temperatures are unlikely.

·         Every company should have some employees to patrol buildings during the winter season. They should look for cold spots, large leaks and structural damages.

·         If the operations need to be shut down, there should still be procedures for adequate heating. This is imperative. If the company fails to heat the premises adequately, they will not be able to claim damages from their insurance companies.

Buy and work leads smarter, contact only the customers you want to engage, and enable your employees to be productive. Connect with your target audience with Live Connect today!

Flood Insurance Market: Greater Affordability and Uniformity Underway

Government’s National Flood Insurance Program might be in the doldrums, but a few steps are being undertaken to ensure that coastal communities get some relief. The Senate recently passed a bill that will stimulate more flood insurance reforms. At the heart of these reforms lies the limitation on premium hikes. These efforts don’t clearly address the actual reasons that were causing the premiums to jump, but consumers will be happier with the news of government capping on premiums.

Menendez-Grimm Bill

Agents in the coastal community insurance niche have been repeatedly voicing their concerns about limited benefits and almost negligent scope for offering financial sops. This insurance marketplace remains highly pessimistic with minimal consumer addition. Now, some degree of grandfathering has been allowed in the policies. This is largely applicable to communities with updated flood maps. Now, agents will be able to offer subsidies along with standard coverage as a result of the Menendez-Grimm bill. Other changes that this Bill brings to the flood insurance marketplace include:

Overall Affordability

The Bill seeks to make the entire flood insurance marketplace more uniform and affordable. Overpriced policies, i.e. those with an annual premium greater than 1% of the total coverage amount, will be gradually eradicated.

Streamlining Property Sales

Until now, coastal homebuyers were paying the full risk rate at the time of buying homes. Now, pre-FIRM properties will be exempted from this provision. Property owners have been wondering about how to prevent the steep decline in their property valuations. Many coastal properties have been rendered unfit for sale due to this environment. Now, the entire marketplace will breathe easy. This also means better equality for home buyers and sellers.

Firewalling Premium Rises

FEMA has been asked not to increase the annual rates beyond a certain value—the limitation ranges between 15 and 18 percent. This is welcome news for agents as consumers interested in individual policies are often questioned about the recent, unwarranted hikes.

Reverting to Good Old Grandfathering

Grandfathering has been present in many of the traditional insurance markets, including the healthcare sector. However, coastal community properties didn’t enjoy this advantage. Homeowners were left with two expensive choices—either pay higher rates or take upon large scale property restructuring. With grandfathering kicking in and premiums with a defined cap, homeowners don’t need to fret about rising out-of-pocket expenses.

Widespread Refunding

Some folks have complained about a little clarity about the refund procedure for homeowners who had unconsciously overpaid. Until now, FEMA didn’t provide any clarity on this issue. Now, overpaid premiums will be adjusted in the form of nationwide refunds.

Better Communication: More Outreach & Transparency

Map determinations get more assistance to ensure that communities and policyholders abiding by the regulations are benefited. Agents have often struggled to advise consumers on how to finance the appeal. With more appeal reimbursements, homeowners will be repaid for their flood risk related knowledge. The flood insurance niche has been somewhat opaque. Usually, agents have been at the forefront of bearing consumer queries with little clarity from the state or federal government. Now, prospective policyholders can demand answers for flood mapping and hikes in rates from clearly defined organizations. With more information available about flood risks and map appeals processes, policyholders will feel more secure.

Buy and work leads smarter, contact only the customers you want to engage, and enable your employees to be productive. Connect with your target audience with Live Connect today!

What Does the Future Hold for Independent Mortgage Brokers?

Market analysts have been speculating about the imminent death of the mortgage broker for a while. Many banks suffered huge losses when the markets crashed in 2008. They also had to deal with low interest rates and a slow economy. As a result, many of them quickly left the marketplace. At least some of them have started working directly with the homebuyer.

Does that mean that the days of the mortgage broker are numbered? Yes and no.

There has been a gradual decline in the number of mortgage brokers over the last few years. Their numbers may drop even further during the coming years. This, however, doesn't mean that all independent brokers will have to quit the market soon. That is unlikely to happen.

What does the mortgage broker do?

Mortgage brokers act as the middlemen between lenders and home buyers. However, the new rules issued by the Consumer Financial Protection Bureau may force many independent brokers to quit the business.

The new rules prohibit mortgage brokers from placing homebuyers in costlier mortgages with the sole objective of earning a higher commission. They will also prevent the broker from receiving commission from both the lender and the borrower. While brokers are not exactly happy with this development, consumers will definitely welcome this move because it makes working with the broker safer.

However, this many force many brokers to quit the business. And if that happens, the consumer may find it difficult to shop for a mortgage. Brokers make the whole business of getting a mortgage easier. They understand the market and know the best deals and rates. They have access to banks.

If there are no brokers, homebuyers will have to go from lender to lender until they find the best deal. Getting a home loan is already difficult because it requires a lot of documentation. And if the broker vanishes from the scene, the process makes even longer. This will affect the borrower in many ways.

It is true that they can log on to the mortgage shopping sites. However, most of these websites only provide referrals. They don't provide enough information for the borrower to compare rates.

Working with a mortgage broker is risky. Many unscrupulous brokers place borrowers in risky mortgages. They are only concerned with their commission. In fact, these brokers have even been blamed for the crash of the housing sector.

However, now that many of these greedy brokers have quit the sector, the new rules eliminate most of the risks associated with working as a broker. Now for the borrower the biggest challenge is finding a mortgage broker who has access to a huge number of lenders.

Over the last few years, several big banks in the US and Canada announced that they would no longer work with independent brokers. Some of these banks even went to the extent of saying that loans originated by their loan officers performed much better.

Numbers don't lie
 

Independent brokers have been quitting the industry for a while. That was mainly due to the crash of the housing sector.

While in 2006, The National Association of Mortgage Brokers had around 25,000 members, their number fell to nearly 5,000 in 2013. This drop in their number has also reduced their market share. During the last 2 years, independent brokers originated only about 10% mortgages. They accounted for nearly 30% of the mortgage originations during the period between 2004 and 2006.

Struggling to find buyers that qualify? RealTAG gives you the real estate content that drives consumers to your site, and gives you an inside look at their financial situation. Close more real estate deals and generate qualified leads by contacting RealTAG today!

How Walkability Helps in Selling Real Estate

Walkability has suddenly become a buzzword. It is a broad topic that involves health, economics, community, demographics, and the environment. It might seem complicated, but it is just common sense.

Homes that have easy access to shops, services, and offices by foot tend to sell for a price premium but that is hardly surprising. When people have convenient access to service areas, they get to save a lot of money on transportation. They also get to save time. And when they walk their health improves. When more people walk there will be fewer vehicles on the road. As you can see, this is good for the environment as well.

In other words, walkability makes a community more livable and eco-friendly. Developers are keen to provide walkability. When they build communities where people don't have to drive, they can charge a higher price.

People now want to walk to work. They also want to live in bustling townships that have everything they need within walking distance. Walk score, a new metric that developers now use to sell their properties, is a measure of services available within a certain distance. Homes that are close to food stores, transit and government offices tend to have a walk score of 90 percent or above. Unfortunately, this metric doesn't consider the quality of the walk. A short walk along a dark underpass is much less pleasant than a relatively longer walk along a tree-lined street with beautiful homes and shops.

Here are a few things builders need to take into account when they build homes that boast of walkability.

Future proof the homes

When walkable homes are built with care and craft, their value will continue to appreciate. The key is building communities where people want to live and spend time.

Be street smart

The sidewalks should be at least 5 feet wide. If they are narrower, they won't let couples stroll.

Builders interested in creating long time value now even consider building streets that are lined on either side by trees. If budget permits go for it and when choosing trees mix them up.

Encourage interaction

When you build public spaces, you need to look at them as outdoor living spaces that provide a sense of privacy and enclosure. They must be configured in such a way that stores should face each other. Also include large porches in the front so that families can interact with their neighbors. Porches that are too close to sidewalks need to be built with special care. These kinds of porches should be elevated so that homeowners feel comfortable.

Choose tenants wisely

While choosing tenants for the stores, make sure that they complement each other. For example, a bookstore, a clothes store, a restaurant and a coffee shop contribute to one another and add to the amenities.

The growth of the walk to work culture

In cities that have a well-defined work culture, more and more people are looking for properties that are within walking distance of their workplace. These properties command a price premium and their value tend to appreciate over time.

While trying to develop walkability, real estate professionals and builders must not compromise on aesthetics. Simply put, walkability helps sell homes.

Struggling to find buyers that qualify? RealTAG gives you the real estate content that drives consumers to your site, and gives you an inside look at their financial situation. Close more real estate deals and generate qualified leads by contacting RealTAG today!

P2P Lending: An Assessment of the Risks and Opportunities

Peer-to-peer lending or P2P is the method of lending cash to people who are not related to the lender. This kind of lending usually takes place online and does not involve any financial institution.

There are several P2P lending websites and they use various credit checking tools to determine the borrower's eligibility for the loan.

What risks are involved?

P2P loans are 'unsecured personal loans' made to individuals who have not put up collateral.  Remember that the lender will not receive any government protection for his/her investments. However, they can reduce their risk by selecting the 'right' borrowers and diversifying their investment among different borrowers.

Aren't they risky?

Yes, these loans carry a high amount of risk as they are not secured. However, if you take a look at the default rates of these loans on P2P websites you can see that most borrowers repay.

Borrowers are expected to have a decent credit score to qualify for these loans. The interest rates usually depend on the borrower's credit history. Higher risk borrowers will have to pay higher interest rates. Borrowers who are considered low risk will be eligible for low interest rates.

These kinds of lending companies are now being watched by the Securities and Exchange Commission and many of them have obtained SEC's full approval.

Transparency

P2P websites conduct their business in a transparent way. The investor will have access to complete information on each loan prior to investing their money. It is true that these loans are unsecured, but the lender can reduce their risk by lending small amounts to many different borrowers. Credit card loans, too, are unsecured loans, but that hasn’t stopped banks from offering them. Just like credit card loans, P2P loans, too, are reported to credit agencies. So a borrower who fails to repay the loan will damage his/her credit score.

Who operates these loans?

P2P lending is a for profit online business. It generates income by collecting fees from borrowers on the funded loans. The website may also collect a fee from the investor. These websites are fully automated, so they don’t have to employee many people. This reduces their operating expenses. Consequently, they can pass some of these benefits on to the borrower by offering lower interest rates. While at the same time, they help lenders earn higher interest rates

Right now, P2P is a fast growing investment opportunity. Even investment bankers from traditional lending institutions are joining these P2P websites as lenders, investors and board members. This clearly indicates that the new lending platform is gaining credibility.

The bottom line

Even traditional banks find peer-to-peer lending attractive. That is a good reason for an investor to consider this lending platform. You can reduce your risk by investing small amounts. Also, instead of lending the whole amount to one borrower, you can divide the money into smaller sums and lend them to different borrowers. This reduces your risk because all of your borrowers are unlikely to default.

Traditional bank deposits offer lower interest rates and that is the reason investors are turning to alternative investment opportunities. While P2P lending has its own risks, the returns are good enough to attract many investors.

Get your share of the $1.5 trillion in Adjustable Rate Mortgages scheduled to reset this year! Imagine having up to a 20% funding rate at a low, cost effective price per lead! With our ARM plus leads, you can. Get in touch with ARM Source today!

Key Recommendations for a Homeowner to Maximize Appraisal Value

Home appraisals today are more important than ever when it comes to buying or refinancing a home. With housing prices starting to increase, many home sales and refinance deals are being cancelled due to low appraisals. In any market where housing prices are rising, obtaining appraisals that keep up with the increased sales prices is a challenge. Add the high level of foreclosures, the down market for the past several years and the problem grows exponentially.

There is nothing more frustrating that finding a buyer who can qualify for a loan, and then losing the deal to a low appraisal. There are steps that homeowners can take that will ensure the home appraises for the highest dollar amount possible. This will provide the loan closing the clients are looking for, whether it is a refinance or the sale of a home.

When a home is scheduled for an appraisal the first thing the homeowner needs to do is to take it seriously. Imagine they are showing the home to a potential buyer and ensure the home is presenting in its best light.

Here are a few simple things the homeowner can do to ensure the home appraises at its highest value:

Clean the house thoroughly. Make sure the home is clean, de-cluttered, carpets and windows are cleaned and the home is odor free. Appraisers will assess the condition of the home and if the home is clean, they will give you the benefit of the doubt when it comes to maintenance.

Curb appeal is as important to an appraiser as it is to a homebuyer. Make sure the lawn is mowed, the hedges trimmed and the home is neat and orderly. It is also good to have the flower beds in good condition and any needed repairs or paint completed so the home has the best curb appeal possible.

Make repairs as needed. Appraisers generally value a home in lots of $500. Things like a leaky faucet, peeling paint, broken windows and faulty light fixtures can add up quickly. This will affect how the appraiser rates value as well as the condition of the home and its affective age.

Make all areas of the home accessible, but don’t follow the appraiser around. When homeowners close off the garage, basement or attic, the appraiser cannot accurately assess the value of these spaces. Providing access will help the appraiser give an accurate assessment and will remove concerns that the homeowner is hiding something. When the appraiser is in the home, it is important to let them do their job. Ask questions at the beginning and/or end of the appraisal, but allow them to inspect the home without the homeowner in tow.

Gather information on home improvements. It is very important to support the condition of the home with evidence. Include upgrades to the home as well as structural upgrades. If the roof, electrical, or HVAC has been replaces, provide documentation so the appraiser can account those improvements into the home’s value. The same goes for improvements like kitchen and bath upgrades.   

Appraisers try to be objective as possible, but in the end the value is subjective. It is based on recent home sales in the area and the general condition of the home. The homeowner cannot impact neighboring home sales, but they can impact the condition of the home. Providing documentation, and presenting the home in the best possible light, is the most effective way to get the maximum value from the appraisal.  

LeadXL provides accurate, actionable information and analysis, resulting in increased conversion of leads from ALL sources. Lead XL was built for lenders following a clear path to success: Analyze. Revive. Enhance. Contact Lead XL today!

Brand Building Strategies for Real Estate Startups

At last you have decided to start your own real estate company! This is undoubtedly one of the most exciting moments in your life. You might also be feeling a little nervous.

When you start on your own, you get to explore new horizons and soar to greater heights. However, running a real estate business can be quite challenging. Since this is a highly competitive industry, you need a sound marketing plan to achieve the kind of success you were hoping for.

Yes, you read it right. You cannot survive in the real estate industry without a solid marketing strategy. Still, many people who start their own real estate company do not have a well-thought out marketing plan in place. They simply start out and then struggle for a long time before giving up.

But this isn't surprising. When you start a business, you have to take care of a lot of expenses. You need to buy or rent office space. You have to hire employees. You have to pay the utility bills. When there are so many expenses, very few people can set aside money for marketing. But this is a huge mistake. A marketing plan and a marketing budget are crucial to the success of a startup. Don't wait until you make your presence felt. If you don't have a marketing plan, nobody is going to realize your presence.

Convey your brand message through the right channels

Since the very beginning, you have to send out a clear brand message to your audience. As a company, you must have a unique selling proposition. There must be something that makes you different from other real estate companies in the neighborhood. Tell your potential clients why they should hire you. The answers to these questions will help you define your brand.

Brand building is an important strategy that will allow consumers to remember your company when they need a product or service you offer. At least 5 years of marketing are necessary to improve brand recall.

Startup owners often overlook the need to build a brand. That is probably because brand building is expensive. In addition, it doesn't always lead to immediate results. However, a branding strategy should be the foundation of your business.

Branding might take time, but it is usually the difference between a startup that merely gets by and the one that really makes it big in the real estate world.

Branding requires sending the right message to a targeted group of customers. Once you have decided what your brand message is, you need to find ways to communicate that message. Consistency is the key. Everyone including your top management executives and your employees should communicate the brand values in the exact same manner.

Make sure that your logo and other brand images are consistent in all marketing and advertising efforts. You should also communicate with your target audience through a variety of platforms, including social media, newspapers, magazines, television, radio, public relations and email. All of these platforms should work together to build your brand.

When you have got the right marketing strategy in place, your company can reach heights way beyond your wildest imagination.

LeadXL provides accurate, actionable information and analysis, resulting in increased conversion of leads from ALL sources. Lead XL was built for lenders following a clear path to success: Analyze. Revive. Enhance. Contact Lead XL today!