The North Pointe Office of Berkshire Hathaway HomeServices Homesale Realty's sales meeting covering the following topics: 1. FHA guidelines, 2. Pros and cons of solar panels, 3. The Great Convergence in the insurance industry, 4. How to submit a HUD offer, 5. The rise of Homes.com, 6. Homesale Center has moved to the RESource Center, 7. The use of SOCI in your social media posts, 8. Working in a Changing Market.
Working in a Changing Market - How to keep your sanity when those around you are losing it
1. North Pointe Sales Meeting
Working in a
Changing Market
How to keep your sanity when those
around you are losing it
1
November 7, 2023
2. Homesale Complete Services
2
Dan Ranck
Cell: (717) 271-2400
NMLS # 140989
James Ream
Cell: (484) 824-3630
NMLS # 1598468
4.96 / 5
2022 Average
Survey Score
3. Why a Government Loan May be Best For a
“Good” Borrower
• Mortgage Insurance
FHA & USDA both have standard MI rates for everyone
VA does not have any type of monthly MI
Conv MI rates vary based on LTV, credit score, number of
borrowers, location, property type and DTI
Due to these factors, the government program rates are often
lower for the average first time home buyer
The average life of a mortgage is 7-8 years, due to refinancing or
selling. Most higher LTV Conventional loans do not benefit from
their MI going away in this time frames
3
4. Why a Government Loan May be Best For a
“Good” Borrower
Example: $250,000 home purchase, for a single borrower with a
680 credit score
4
$176.39 in monthly savings with FHA instead of Conventional
-OR-
Borrower could afford a house that is $25,000 more
FHA Monthly MI
$110.57
Conv Monthly MI
$286.96
5. Why a Government Loan May be Best For a
“Good” Borrower
• Higher Debt-to-Income (DTI) Limits
FHA and VA both allow DTI’s of up to 55%
When might this be a great option:
o They already own a home and want to buy
before they sell (no current FHA loan)
o Not all of their income sources are able to be
used at this time
o Conv loans are usually limited to a DTI of
about 45%, so a borrower could qualify for a
larger purchase price using FHA
5
6. Why a Government Loan May be Best For a
“Good” Borrower
• Past Credit Issues
Conventional loans have the
strictest and longest timeframes
for past credit issues such as
Foreclosure, Short Sale and
Bankruptcy
A government loan is the best
option to get your buyer in a
home sooner
6
7. But What About the Appraisal?
• If a property is in decent condition
and/or built within the past forty
years, this shouldn’t be a concern
• Options exist such as switching to a
Conventional Loan (if applicable) or
doing a 203K Renovation Loan
7
23. Submitting a HUD Offer
• www.HUDHomestore.com and
search properties
• Click the ‘HUD Registered Bidder’ tab
in the lower right-hand corner and
follow the instructions
• NAID #: WSTGOI2133
• For any questions please contact
Katharine Marion: kmarion@homesale.com
Phone: 717-572-4876
23
24. • Updated its consumer-facing website to provide
more of what consumers want
• Goal: To generate more engagement & touch
points on their site -and- it’s paying off
• Homes.com lead looks like this
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Make sure you don’t miss
any leads from Homes.com
Add noreply@homes.com to
your contacts
https://drive.google.com/file/d/1INllOjUUwGpQQ1Me-EkRCfZyHaBdjW2T/view
26. HomesaleCenter.com has a NEW Home
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• You can now find Homesale
Center in the BHHS Resource
Center
• Log-in through your Homesale
Google account
• Old platform is still available
at previous URL for a limited
time
27. Use SOCi to Auto-post Your NEW Listings
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• Manage content on
Facebook Business Page,
Instagram Business Account,
Google Business Page, LinkedIn, & Twitter
• New Feature - Toggle on the slider to activate
the New Listings Auto Poster
NOTE: Social Media Connector defaulted to OFF on
November 6th to avoid duplicate postings
28. November Training Sessions
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• Run Your Business Like a CEO – Thursday, November 16th (10:00-11:00 AM)
Learn how to structure your finances, prepare for tax season and plan for your
future with Alex Abbenante from Dergalis Associates
Click to Register: https://homesale.zoom.us/meeting/register/tZ0qcu6trj4tGdaSUZgoIh6fG6vGJKLiNyFW#/registration
• Short Sales & Foreclosures – Thursday, November 9th (2:30-3:30 PM)
Click to Register: https://homesale.zoom.us/meeting/register/tZUtc-6grj8iHtNH7v3bdcizTAoT80W9oOjb
• New Builds – Thursday, November 16th (2:30-3:30 PM)
Click to Register: https://homesale.zoom.us/meeting/register/tZ0qceyvrjItE9d_jtMOnfhL_GBInATCRKNb
• Understanding Your Clients – Thursday, November 30th (2:30-3:30 PM)
Click to Register: https://homesale.zoom.us/meeting/register/tZUtc-6grj8iHtNH7v3bdcizTAoT80W9oOjb
NOTE: Prior to taking this class, attendee should take the DISC Assessment.
Click here to access DISC Assessment: https://profiles.innermetrix.com/VO/3470a4ea/
29. Nationwide Industrial Vacancy Rates
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SOURCE:
Only 8 out of 75 geographic areas
have vacancy rates under 2% - - -
and Pennsylvania has 3 of them
31. Working in a Changing
Market
How to keep your sanity when those
around you are losing it
32. We Have to Start Controlling the Narrative
by Understanding What is Going on in 2024 and Beyond
32
11/07/2023
33. Average 30-year Fixed Interest Rate (5 years)
33
11/07/2023
3.94%
3.11% 2.96%
5.34%
6.76%
6.14%
2019 2020 2021 2022 2023 2024
(Projected)
Freddie Mac Average of Fannie Mae, MBA and NAR
Record low interest rates were a
once in a 50-year occurrence. Get
used to the new normal.
34. Average 30-year Fixed Interest Rate (50 years)
34
11/07/2023
8.86%
12.70%
8.12%
6.27%
4.09%
7.76%
1970s 1980s 1990s 2000s 2010s
SOURCE: Freddie Mac
11/06/2023
Today’s interest rate is lower than what
occurred in the 70’s, 80’s and 90’s
35. Current Loans w/Mortgage Rate at Time of Origination
35
11/07/2023
SOURCE: FHFA
3% 3.01-4% 4.01-5% 5.01-6% 6%
44.7%
26.0%
20.3%
5.3% 3.7%
At least 97% of the sellers with an
existing mortgage in the market
today have an interest rate that is
lower than today’s current rate of
7.76%
36. Percent Equity in Residence
36
11/07/2023
38.7%
30.0%
20.8%
8.6%
1.72% 0.12%
Own FREE and Clear At Least 50% Equity 30-50% Equity
10-30% Equity 0-10% Equity Negative Equity
SOURCE: FHFA, Census, Attom
2/3’s of homeowners have
more than 50% equity
in their homes
37. U.S. Properties with Foreclosure Filings (Quarterly)
37
200,000
150,000
100,000
50,000
0
11/07/2023
27,016
124,539
SOURCE:
HEADLINE: Foreclosure filings
have gone up 461% in three years
38. U.S. Properties with Foreclosure Filings (Quarterly)
38
11/07/2023
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
0
SOURCE:
Foreclosures are 720% less than
what they were during the market
crash of 2008-2011
39. Foreclosures
in Pennsylvania
(January – June 2023)
39
11/07/2023
• .12% of all housing units
have filed for foreclosure
• 1 in every 810 housing
units have filed for foreclosure
SOURCE:
41. 1. Manage Your Time and Energy
• You are your most valuable asset – continually upgrade yourself and
you will become indispensable
• Learn to time block
• Important to take time for yourself
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11/07/2023
42. 2. Get Used to Moving at the Speed of Unknown
42
11/07/2023
43. 2. Get Used to Moving at the Speed of Unknown
• More change will occur in this industry over the next five years
than we have experienced over the last twenty-five years
• Technology and Artificial Intelligence Tools will revolutionize how
we do business – Chat GPT, Virtual Showings, CubiCasa
• Changes in the industry are coming – lawsuits, commissions,
agency, Associations, MLS’s
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11/07/2023
45. 3. Build Trust and Nurture Connections
• Learn from others in the industry - collaborate
• Network to stay in front of people
• Stay in touch
• Over the next two years, there are going to be 7 million new babies,
3 million marriages and 50 million job switches . . . our work of
human connections happens around these moments
45
11/07/2023
47. 4. Improve Your Community
• The more you give within your community, the more you will get
back
• Volunteer or raise money for something that has impact for you
• Shift your perspective from ‘Houses to Humans’
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11/07/2023
49. 49
Tom Blefko
Director of Operations
North Pointe Office
Associate Broker, REALTOR®
Office: (717) 560-9100
Cell: (717) 587-6600
Email: tblefko@homesale.com
• 2022 Distinguished Service Award
• 2021 REALTOR® of the Year
• 2021 President
• 2009 Volunteer of the Year
Presenter Contact Information
Editor's Notes
People are only moving if they have to. It is imperative that you stay in touch with these people because when they need to move, they will contact the person that has kept them educated on the real estate market