Weekly Video Tip: Viewers Have Choices By Stephen Schweickart
RISMEDIA, June 8, 2010—Did you know that in the early years of television, TV’s didn’t have remote controls? You actually had to get up to change channels. There wasn’t even a mute button. And speaking of channels, there were only three—ABC, NBC and CBS.
Today, it’s a different world. Viewers have hundreds of options at their instant command. If something is boring, viewers move quickly on to something else in a split second. The same holds true of online video—with one exception. Viewers have literally millions of options. Unless you capture and hold someone’s attention, they’re gone in flash.
So what’s the bottom line? If you’re currently using video, or even thinking about using video to market yourself online, there are a few lessons to be learned.
First, quality content is one of the best forms of advertising. Why? Because people don’t have to watch it, they want to watch it. It gets their attention because you’re giving them something of value in return for their time. But you may be thinking ”easier said than done.” While creative programming can be a challenge, we have a suggestion—think local. Take a look in your own backyard for items of interest. Local market updates are a perfect way to keep in touch with your data base, featuring information about local interest rates, inventory levels, average time on the market, property values and more. In other words, information that may be difficult to find elsewhere. Plus, it can be updated every few weeks—giving viewers a reason to keep coming back.
Second, keep it short and simple. A common mistake when producing video is to assume your viewer has the time, or will take the time, to watch your entire presentation. It just isn’t true. Their finger is poised on the cursor, so you’d better keep it both brief and relevant. Anything beyond a couple of minutes and you’re getting on thin ice.
And finally, don’t forget that all important call for action. Invite the viewer to contact you for more information. And speaking of that, If you’d like more suggestions on local programming, including local market reports, or if you have a comment or question, we’d love to hear from you here at VScreen! Thanks for watching!
Stephen Schweickart is the co-founder of VScreen. For more information on this topic, visit VScreen’s blogsite at http://www.vscreen.com/blog/.
To see last week’s video tip, click here.
Energy Concerns and Green Housing: What’s in It for Us?’
RISMEDIA, June 8, 2010—As the green movement continues to gain popularity across the real estate market, real estate professionals and consumers alike are curious as to what is in store for the population as we continue to focus on energy concerns and green housing. In this month’s Power Broker Roundtable, industry leaders Tom Wilkins, Bob Hamrick and Kurt Heater discuss whether we can use public awareness of green issues to boost our bottom lines.
Moderator:
Steve Brown, Special Liaison for Large Firm Relations, NAR
Participants:
Tom Wilkins, CEO, Better Homes & Gardens, The Poconos, Pennsylvania
Bob Hamrick, CEO, Coldwell Banker Premier, Las Vegas, Nevada
Kurt Heater, Pres., Prudential Sherm Heater, Grant’s Pass, Oregon
Steve Brown: These days, it seems the hottest topic at cocktail parties is global warming. Some say greenhouse gases are dooming our grandkids to a future of drought and flooding. Skeptics argue that climate change is inevitable and beyond the scope of anything we humans do. While the truth is likely somewhere in between, most people agree that sensible conservation and practical oversight is probably a healthy approach –and the efforts we make today will put energy-saving dollars in our pockets tomorrow. That’s one reason most of us practice some sort of conservation effort; recycling trash, reducing our use of paper, or heating our swimming pools with solar panels. It’s also the reason why NAR built the first LEED-certified* green building in Washington, DC. NAR believes REALTORS® need to be on the leading edge of social concerns—which is also why they developed NAR’s Green Designation for today’s real estate professionals—and why they closely monitor all legislation regarding environmental issues. I have earned the Green Designation myself because I believe it’s important to be at the forefront of this movement. As green issues take a more prominent place in social discourse, we take justifiable pride in our industry’s commitment to the environment. A visit to NAR’s Green Resource Council (www.greenresourcecouncil.org) will give you more information. But can we use public awareness of green issues to boost our bottom lines? For some answers, we’ve invited a panel of real estate pros from various parts of the country. Tom, what’s the situation in Pennsylvania?
Tom Wilkins: The economic climate has had an effect here—especially in the Poconos, where the inventory is heavily loaded with “as is” vacation properties rather than new construction. So today, most people are concerned with savings, like tax advantages on a second home. The key to getting their attention on green issues would be, “how much money will that solar heating system save me in the course of a year?”
Bob Hamrick: Yes, I think the idea of “going green” started to gain momentum before the housing downturn hit. Today, a lot of Las Vegas buyers—and most investors—are pretty focused on opportunistic purchases like REOs and short sales. As things start to improve, real estate consumers will turn their attention back toward “green.”
Kurt Heater: Personally, we built our own home to take advantage of solar energy. We knew it would take years for energy savings to offset the initial costs, but I’m a child of the original Earth Day movement, so I suppose it rubbed off on me. While I think that builders of new construction are tending toward energy conservation, I think the rush to buy cheap right now is diverting buyers’ attention a bit. We had a huge run-up in prices between 2001 and 2005, and short sales and foreclosures at this point are probably 50% of our business now.
Steve Brown: So if I’m hearing you right, as the market stabilizes, consumers are taking a broader interest in green issues?
Tom Wilkins: I think that’s definitely true. In our case, the Better Homes and Garden brand is committed to promoting good environmental practices. Almost all of our agents have NAR’s Green Designation. I think it’s safe to say as Realtors, we all got caught up in staying alive these past couple of years—but as the market improves the focus will shift back to some extent toward practical energy concerns. We need to be prepared for that.
Bob Hamrick: I agree. The effort to compete may have slowed down the green effort, but I expect today’s move toward green construction will become the standard for the future. The new CityCenter in Las Vegas, which is really an extraordinary resort destination, was designed and built to conserve energy and preserve natural resources. It’s just a more responsible approach to building, and I think that signals a growing trend. Getting our agents green-certified and knowledgeable is certainly a place to start.
Kurt Heater: Yes, I think most people respect the green concept. We need to up the appeal by balancing environmental sustainability with economic practicality.
Steve Brown: In other words, builders need to keep on building green, and Realtors need to be prepared to help customers understand the practical advantages.
Tom Wilkins: I would say so. The customer’s first question to himself will always be, do I like the house? If he doesn’t, the issue of energy conservation won’t be enough to change his mind. But if he does, then energy savings and conservation become an undeniable bonus.
Money May be Tight, But Homeowners Still Investing in Great Outdoors By Amy Hoak
RISMEDIA, June 11, 2010—(MCT)-Homeowners love their yards. They plant gardens, create cozy areas for entertaining, and install decorative elements that they’re as happy to look at from the kitchen window as they are from their chaise lounge.
And despite a weak economy, Americans are expected to continue this love affair with the world outside their door—and perhaps spend a little more time in it as they plan to spend their summer vacations at home.
About 94% of residential landscape architects polled by the American Society of Landscape Architects earlier this year said that outdoor living spaces, including cooking and entertaining areas, would be popular in 2010. That said, improvements are expected to have few frills as homeowners stick to the basics in this cool economy.
“Homeowners want to create a sense of place for their family, friends, and neighbors to enjoy outside, but an uncertain economy means many will dial back some of the extra features we’ve seen in past years,” said Nancy Somerville, executive vice president for the group.
According to the survey results, some of the most popular features this year include: outdoor seating and dining areas, including benches and seat-walls or weatherized outdoor furniture, as well as fire pits and fireplaces, the classic outdoor grill and outdoor counter space. More lavish outdoor kitchen appliances, including refrigerators and sinks, are expected to be less popular, as are stereo systems and outdoor heaters. Survey results found a growing interest in low-maintenance landscapes and native plants. There’s also a continued resurgence of the home garden.
While consumers may be planting more as a way to have fresher produce or so they can know where their food is coming from, there’s also an economic driver: According to the National Gardening Association, a well-maintained food garden yields an average $500 return, considering a typical investment and the market price of produce.
A growing market
The interest in spending time outside is likely to beget more products designed for indoor/outdoor use in the near future, according to Rob Tannen and Mathieu Turpault, of Bresslergroup, a product-development firm.
One of the products they imagined: a tray container system that people could take into the garden to collect fruits and vegetables, adapt to fit the sink for cleaning the produce and slide into a refrigerator as you would a crisper drawer. Another concept was a grill with seating built around it, allowing cooks to entertain friends as they work.
Technology will likely play a larger role outdoors, too, Tannen said. It’s not far-fetched to imagine a shed with solar roofing panels that allow you to charge pieces of large lawn equipment, as easily as you might dock your Dustbuster inside the house. Or using iPod apps in the garden to learn how to best take care of a plant, he said.
Already, technology has entered some gardens. EasyBloom, a product that hit the market in 2008, is a sensor that you stick in the ground to collect information about the soil. You then connect it to a computer via a USB port, where collected information is analyzed to help determine what plants will thrive in that area. The tool also can diagnose problems with an existing plant. “People get bummed out when a plant is not doing well,” said Matt Glenn, chief executive of PlantSense, the company that sells EasyBloom. “If you have a rose bush, put the sensor next to the rose bush and the sensor will look at the world the way the rose does.” You’ll quickly learn, for example, if it isn’t getting enough sunlight or has been over-watered—which can be useful for the growing ranks of novice gardeners.
Adding appeal
When designing any outdoor area, it’s important to create a series of places that you can inhabit, whether it’s a covered space to entertain in or a vegetable bed to attend to, said Sarah Susanka, an architect and author of The Not So Big House series of books. Don’t forget your garden’s view from the inside either, she added.
“When I was designing my garden, I designed a view from my kitchen window,” so it could be enjoyed while standing at the kitchen sink, she said. “If you can see something that you find attractive day after day, you’re much more likely to sit out there,” she added.
And while many homeowners are making these outdoor improvements to their homes so they can enjoy them—especially in a real estate market where moving to another home is financially difficult for some families—a well-planned and maintained garden and outdoor area will serve an owner at the time of resale too.
“When you have a beautiful garden, someone will fall in love with it. In fact, it’s what they’re purchasing—more than the house even,” Susanka said.
Arbors, water features such as fountains, pergolas and decks are expected to be the most popular outdoor structures for homeowners this year, according to the architects group. And making an investment in a deck, for example, might set an existing home apart from a newly constructed one, said Edie Kello, director of marketing for Fiberon, a company that manufactures composite decking material.
“Fifteen to 20 years ago, most builders were putting on decks. A lot of construction builders these days aren’t building decks,” Kello said. “I think it’s a cost factor,” she said, adding that when builders were mass producing during the boom years—building as quickly and cost-effectively as possible—home buyers would often get only a stoop outside their door.
(c) 2010, MarketWatch.com Inc.
Distributed by McClatchy-Tribune Information Services.
Foreclosure Activity Decreases 3 Percent in May 2010, According to RealtyTrac
RISMEDIA, June 11, 2010—RealtyTrac, a leading online marketplace for foreclosure properties, recently released its U.S. Foreclosure Market Report for May 2010, which shows that foreclosure filings—default notices, scheduled auctions and bank repossessions—were reported on 322,920 properties in May 2010, a 3% decrease from the previous month and an increase of less than 1% from May 2009. One in every 400 U.S. housing units received a foreclosure filing during the month.
“The numbers in May continued and confirmed the trends we noticed in April: overall foreclosure activity leveling off while lenders work through the backlog of distressed properties that have built up over the past 20 months,” said James J. Saccacio, chief executive officer of RealtyTrac. “Defaults and scheduled auctions combined increased by 28% from 2007 to 2008 and another 32% from 2008 to 2009—creating a build-up of delayed bank repossessions. Lenders appear to be ramping up the pace of completing those forestalled foreclosures even while the inflow of delinquencies into the foreclosure process has slowed.”
Foreclosure Activity by Type
A total of 96,462 U.S. properties received default notices in May, a 7% decrease from the previous month and a 22% decrease from May 2009. It was the fewest default notices since November 2008 and down 32% from the peak of 142,064 default notices in April 2009.
Foreclosure auctions were scheduled for the first time on a total of 132,681 U.S. properties, a decrease of 4% from the previous month and down less than 1% from May 2009. The May 2010 total was down 16% from the peak of 158,105 scheduled auctions in March 2010.
Bank repossessions (REOs) hit a record monthly high for the second month in a row in May, with a total of 93,777 U.S. properties repossessed by lenders during the month—an increase of 1% from the previous month and an increase of 44% from May 2009. All 50 states posted year-over-year increases in REO activity.
Nevada, Arizona, Florida post top state foreclosure rates in May
With one in every 79 housing units receiving a foreclosure filing in May, Arizona foreclosure activity increased less than 1% from the previous month and was down nearly 5% from May 2009, but the state posted the nation’s second highest foreclosure rate for the second month in a row. One in every 169 Arizona properties received a foreclosure notice during the month—more than twice the national average.
One in every 174 Florida properties received a foreclosure notice in May, the nation’s third highest foreclosure rate, and one in every 186 California properties received a foreclosure notice in May, the fourth highest state foreclosure rate.
Foreclosure activity in Michigan increased nearly 6% from the previous month and was up 46% from May 2009, helping the state post the nation’s fifth highest foreclosure rate—one in every 223 Michigan properties received a foreclosure filing in May.
Other states with foreclosure rates ranking among the top 10 in May were Georgia, Idaho, Illinois, Utah and Maryland.
10 states account for more than 70 percent of national total
Florida accounted for nearly 16% of the national total in May despite a nearly 14% decrease in foreclosure activity from May 2009. Florida foreclosure activity increased nearly 5% from the previous month.
Illinois foreclosure activity decreased 20% from the previous month, but the state still accounted for nearly 5% of the national total, with 15,061 properties receiving foreclosure notices in May. Illinois foreclosure activity was up nearly 38% from May 2009.
Other states with foreclosure activity totals among the nation’s 10 highest were Nevada (14,346), Georgia (13,778), Texas (11,137), Ohio (10,379) and New Jersey (7,993).
Metro foreclosure hot spots continue to post annual declines
With a 1% increase in foreclosure activity from May 2009, Vallejo-Fairfield, Calif., was the only metro area with a top-10 foreclosure rate to post an annual increase in foreclosure activity. One in every 101 Vallejo-Fairfield properties received a foreclosure notice in May, the fourth highest foreclosure rate among metropolitan areas with a population of 200,000 or more.
All other metro foreclosure rates in the top 10 were in cities with declining foreclosure activity on a year-over-year basis: No. 1 Las Vegas was down nearly 18%; No. 2 Merced, Calif. was down 7%; No. 3 Modesto, Calif., was down nearly 28%; No. 5 Cape Coral-Fort Myers, Fla ., was down nearly 19%; No. 6 Stockton, Calif., was down 33%; No. 7 Riverside-San Bernardino-Ontario, Calif., was down nearly 29%; No. 8 Bakersfield, Calif., was down 19%; No. 9 Reno-Sparks, Nev., was down nearly 18%; and No. 10 Phoenix was down nearly 9%.
For more information, visit www.realtytrac.com.
Will a Short Sale Save Your Credit? By Kara McGuire
RISMEDIA, June 11, 2010— (MCT)—Stuck in a house you can’t afford or can’t sell for more than you owe on it? Beware the Web, where you’ll see plenty of claims that short sales will save your credit, simple as that. But there’s nothing simple about deciding whether to sell your house in a foreclosure or in a short sale, which means you sell the property for less than you owe the bank. And in most cases, going through either process will wreck your credit score.
“Both short sales and foreclosures are considered negative by the score, because our data shows us it’s very predictive of future credit risk,” Tom Quinn, Minneapolis-based Fair Isaac Corp.’s vice president of FICO scores, said. “The claim that doing a short sale is not going to hurt your score is false. It’s inaccurate.”
Credit scores, which are designed to assess how likely it is that consumers will uphold their side of the bargain, look at the severity (are we talking bankruptcy or a late car payment?), frequency (have you skipped a payment once, or have you missed a bunch?), and recency (did you miss a payment last month or last year?) of items on your credit report.
In both short sales and foreclosures, “you made a lender eat a big number,” said Alex Stenback, a mortgage banker with Residential Mortgage Group in Wayzata, Minn.
That’s not to say that there aren’t some instances where short sales are better. If a borrower is current at the point of a short sale, for instance, then the consumer’s credit score won’t sink as far as it would have if he hadn’t made a mortgage payment for six months. Still, Fair Isaac says that the benefit from not having prior delinquencies on file pales when compared with the hit a score takes from a short sale.
Dan Williams, program director for LSS Financial Counseling Service, says this widespread notion that short sales are better for credit is a big problem because it deters some people from going into foreclosure when that would be the best option for them.
In Minnesota, homeowners can stay in their houses for six months after the foreclosure sheriff’s sale. Factor in the fact that many banks don’t start foreclosure proceedings right after the third missed payment, and families can potentially stay in a house for more than a year rent-free, hopefully saving that money to help them get back on their feet. This could amount to thousands of dollars.
Housing counselors say that most clients have credit scores in the basement already. “If you’ve got a poor credit score and are doing a short sale to preserve your credit, it’s ridiculous,” Williams said. And it’s happening every day.”
If you’re having mortgage trouble, seek help right away from a housing counselor or an attorney. Realtors are the go-to professionals to learn about the local housing market and what it takes to sell your home. But they aren’t credit experts, and I’d get a second opinion if anyone is telling you that a short sale will save your score. And don’t pay someone a lot of money if they promise to quickly rehab your credit score after foreclosure. Credit scores are forgiving—over time.
Both FICO and its credit scoring competitor VantageScore have released estimates for what happens to consumers’ credit scores when they make mortgage missteps. In the VantageScore study, a homeowner with an otherwise clean record who then has a short sale sees their credit score drop between 120 and 130 points (on a scale of 501-990) compared with between 130 and 140 points if the same homeowner ends up in foreclosure.
For a homeowner whose credit report is rife with late payments on everything from credit cards to car loans, a short sale would ding them between 15 to 25 points compared with 10 and 20 points for a foreclosure. Customers with rotten scores will see smaller point drops than someone whose score is good, because the score already has taken into account the lower-scoring customer’s risky behavior and adjusted the score downward.
FICO’s example found short sales and foreclosures will set you back between 140 and 160 points if your credit score is a respectable 780 (on a scale of 300 to 850), or between 85 and 105 points if your credit is 680.
Even if you do your homework, you ultimately can’t control how your housing woes are reported to the credit bureaus. For example, mortgage servicers may report your situation to the credit bureaus using different codes that could be interpreted more or less favorably by FICO, Quinn said.
What if your circumstances change and you’re able to save your home from a foreclosure? “Once you’ve got a foreclosure starting to track on your credit file, you’re taking a major hit,” even if you ultimately save your house, said Sarah Davies, a VantageScore senior vice president.
Credit scores play such a central role in consumer’s lives. Yet it’s so hard to understand them that people can end up making disastrous choices based on myths that are taken as fact. It’s certainly not a catchall solution, but Congress should at least grant consumers free access to their credit scores, an idea which is currently being floated at the capitol.
(c) 2010, Star Tribune (Minneapolis)
Distributed by McClatchy-Tribune Information Services.