Licensed Appraisers: Changes to Fannie Mae and Freddie Mac Codes of Conduct

In response to the current state of the real estate market, appraisal practices have come under scrutiny -- during the boom, appraisers routinely signed off on a doubling and tripling of home values. To prevent any further misconduct, Fannie Mae and Freddie Mac announced revisions to their Home Valuation Code of Conduct -- effective May 1, 2009.

Lenders that sell their loans to Fannie Mae and Freddie Mac will be required to follow new guidelines. The biggest change -- mortgage brokers and realtors will no longer be able to choose their own appraisers. Licensed appraisers will be selected by the lender. This will make the appraisal process more impartial, as lenders have no influence over appraisers. If lenders have their own in-house appraisers, the new code of conduct will prevent the loan-origination department from influencing the appraiser's decision or supervising their work.

If you are a licensed appraiser, you will most likely be affected by these upcoming appraisal changes. As Fannie Mae and Freddie Mac are such loan giants, the new code will affect most appraisers nationwide. Lenders who operate independently do not have to follow the new rules; however, the new code can serve to set a good example for the rest of the industry and aid in preventing another housing crisis. It can also provide more opportunities for today's appraisers -- all appraisers can equally vie for available jobs and create a higher standard for the industry in the process.

Labels: Accredited Real Estate School, Appraisal License, Real Estate Market

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Budget Friendly Marketing Tool

Once you obtain your real estate agent license, you'll evaluate new ways to market client properties to the masses. Get savvy and save money with this new, pocket-sized marketing tool.

Pocket Promoters, launched by The Personal Marketing Company in June 2008, are about the size of a business card and look like mini-property brochures. According to the company's website, an agent can order 100 Pocket Promoters for under $25. This price includes printing, delivery, a full-color property photo, a property description plus an agent photo and contact information.

Pocket Promoters can be left on the counters of local coffee shops, dining spots, dry cleaners or any place where your target audience frequents. Plus, they fit neatly into a wallet as opposed to an 8.5x11 flyer, which is likely to get folded in half and forgotten about.

In addition to local hangouts, agents can hand out their Pocket Promoters at open houses and place them in for sale sign brochure baskets.

If your marketing plan needs revamping, Pocket Promoters may be your economical alternative to other advertising tools. Constantly evaluate and improve your marketing efforts - it's an effective way to defy market challenges.

By Danielle Macklin, Allied Real Estate School

Labels: Accredited Real Estate School, Real Estate Agent License

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How to Choose an Online Real Estate School

Whether you're looking to renew your real estate agent license, or interested in starting a real estate appraisal course, an online real estate school offers a convenient way to quickly meet your goals.

Not all online real estate schools are equal. So when selecting the right online school, make sure they offer the following:

Accreditation

If your online real estate school is not accredited by a qualified accrediting agency, find another school. Why? Accreditation means the school operates on a sound financial basis, has an approved study program, has qualified instructors, approved recruitment and admissions policies and advertises its courses in a factual manner. Accreditation is your assurance that the course you're taking will lead to a viable certificate or diploma.

Student Support

What if you need assistance in selecting your online real estate course? A student support department helps your online experience run smoothly. Make sure your online school's support department is staffed by more than one person. Also, you should have multiple contact options including email, phone and fax.

Educational Support

With an educational support department, you're never alone during your studies. So if you don't understand the escrow process discussed in chapter six, an online school's educational support department will walk you through the steps.

Tech Support

The last thing you want to deal with while pursing a real estate license is technical problems. That's why your online school should offer a tech support department that quickly answers your questions and remedies your computer frustrations via phone, email or fax.

Guarantees

You did your research, but how do you know if the course you purchased is really worth it? Your online school should have a money-back guarantee that allows you to return the course materials within a specific timeframe. Make sure to inquire about your online school's guarantees and take the time to understand how they work.

An online real estate school is an ideal choice for those who like to manage their own time, enjoy learning from home or must attend to other responsibilities while pursuing their education. Choose your online school carefully and you'll be on your way to a rewarding career in real estate in no time.


By Danielle Macklin, Allied Schools, www.realestatelicense.com

Labels: Accredited Real Estate School, Online Real Estate School, Real Estate Agent License, Real Estate School

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4 Big Closing Mistakes

When you took your real estate license course, you learned how to close the deal on a home. Yet, some mistakes can cause you to blow the whole deal. Here are four big closing mistakes to avoid.

1. Missing important deadlines.

If you're not organized, you could cause your client to miss an important closing deadline. Avoid this major faux pas by making a list of every task that must be completed throughout the contract. Assign personal due dates to each task that are at least three days ahead of the real due dates. Set electronic reminders one week in advance to make sure you're on track.

2. Scheduling home inspections at the wrong time.

Once the contract is signed, your buyers need a certified home inspector right away. If there are problems, there's time to fix them or renegotiate new terms. On the other hand, if there's a contingency, like a $5,000 flooring credit, be wary of spending money on a home inspection until the contingency is met.

3. Not staying on top of lenders and escrow officers.

Call your client's lender and escrow officer regularly to make sure everything is right on schedule. Form a close network of professionals you trust and help your clients choose the best lender or escrow officer. There's nothing more frustrating than a lender or escrow officer who lacks a sense of urgency or doesn't return emails and phone calls.

4. Not keeping clients in the know.

You know purchasing a home is an emotional experience. Your clients will appreciate your efforts in keeping them up-to-date with the closing process. Don't worry them with small details you know you can handle, but do share larger issues that could deter a smooth closing.

By Danielle Macklin, Allied Schools,www.realestatelicense.com

Labels: Accredited Real Estate School, real estate tips

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Help Your Clients Choose the Best Lender

Once you complete your real estate license course, you should be prepared to help clients avoid typical buyer pitfalls. This includes choosing the wrong lender.

For example, let's say your buyers received three offer letters from three different lenders. Now they want your opinion. Should they go with the lender offering the most appealing interest rate? Maybe not. Before your buyers place their trust in any lender, do a little investigative work first.

Different circumstances require different lenders

Just because a lender touts a widely known reputation doesn't mean it's the best fit for your client's circumstances. There are lenders who specialize in working with first time buyers, buyers with small down payments or poor credit and more. Working with a lender who has expertise in your buyer's situation could improve their experience and possibly lead to a more reasonable interest rate.

More choices are always better

There's a huge variety of loan options out there, so your buyer's lender should offer an array of choices as well. From the classic fixed-rate loan to jumbo loans and option ARMS, a good lender will match your buyer with a mortgage that compliments their financial status and risk level.

Analyze fees too

Most potential homebuyers become consumed with the hunt of finding the lowest interest rate. But are there extra fees associated with the loan offering that too-good-to-be-true rate? Be smart and request a "good faith estimate" from your client's potential lender. This estimate should provide an overview of all costs associated with the entire term of their loan. Make sure to also ask the lender about other potential fees, like penalties or locking in a rate. Overall, you want your clients to feel confident when choosing a lender. If you feel they're omitting important information, encourage your buyers to move on.

Customer service with a smile

Is the lender paying attention? If your buyers request a 30-year fixed rate and the lender pushes something else, than beware. There's nothing wrong with making other recommendations, but the lender should immediately address your request as well. Additionally, the lender should provide your clients with answers to their questions in a manner that is helpful, informative and patient. If they rush them out the door at that time, don't expect the lender's responsiveness to get any better later down the road.

Get referrals

Ask family, friends and co-workers if they've had any good - or bad - experiences with lenders. Pay attention and even take notes if you have to. It's also a good idea to check out the web, as it's a popular sounding board for upset individuals ready to share their stories with the world.

More than likely, your buyers will appreciate your lender expertise and help you defy market challenges by referring you on to their own personal network.

By Danielle Macklin, Allied Schools,www.realestatelicense.com

Labels: Accredited Real Estate School, Real Estate, real estate license course

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Is it a Good Time to Get a Real Estate License?

As the real estate industry cools, some people are wondering if it is a good time to consider a career as a licensed real estate salesperson. Yes it is! You have to remember that real estate is cyclical -- it is going to have its ups and downs. If it is on a downward turn, it is only a short period of time before it experiences an upswing -- enough time for you to get your real estate salesperson license.

Prepare for your real estate career -- You can complete your real estate pre-licensing courses and take the real estate license exam in a relatively short period of time. By taking the time to prepare for your career, you will be ready to go when the market is "hot" again. Take advantage of this time to enroll in a real estate program and get the education you need. You'll have your license in place when you need it most.

Set up your network base -- Once you complete your real estate education, you should start to make contacts. Join a professional organization, talk to friends and colleagues, and pass out cards in neighborhoods. By getting your name and face in front of people, they will be more likely to choose you as their real estate salesperson when it comes time to sell their house.

Know your area -- Do your research and make sure you are well-versed in the area in which you want to sell. Have an idea of the types of houses that are included, their approximate prices, schools in the area, etc. Your knowledge will make you a more valuable salesperson for someone wanting to buy in the area. This will set you apart from other real estate agents.

Experience less competition -- When real estate was though the roof, you probably had three or four friends that opted to become real estate agents. As the industry cooled, these people probably left to pursue other careers. This has left a need for qualified real estate salespeople. By entering the real estate field now, you will have less competition and greater chance for success.

Give your real estate career an advantage by thinking ahead. By taking the time to get your real estate salesperson license now from an accredited real estate school, you can be ready for the next upturn in the market. A little bit of time now can pay off for you later.

Labels: Accredited Real Estate School, real estate license, real estate program

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How to Make Your Real Estate Career Survive

The real estate market is cyclical -- it is going to have its ups and downs. It's how you deal with the downturns that will determine your success as a licensed real estate salesperson. Many people think that becoming a real estate agent means fast cash. As the market changes -- homes stay on the market longer and interest rates rise -- many of the agents with this mentality will get impatient and leave real estate all together. Good agents, or agents that know the tricks of the trade, will survive in this ever-changing field and benefit in the long run. Here how:

1. Market, market, market -- place advertisements in local newspapers, create a mailer, or write an article for a real estate magazine.
2. Call past clients -- see if they are planning to move or know someone looking to buy or sell.
3. Provide incentives to potential customers -- offer to pay for a home inspection out of your own pocket, or take a smaller commission on a sale.
4. Create a new website or make additions to your current site -- add podcasts, maps, MLS listings, etc.
5. Network in neighborhoods within your community -- introduce yourself and hand out business cards to homeowners.
6. Set up a booth at community events -- offer free advice to potential buyers and sellers.
7. Attend first-time homebuyer seminars -- get your name and face in front of new homebuyers.
8. Complete your continuing education units (CEUs) for the year -- keep yourself busy and stay up to date with recent laws and changes.
9. Advance your career by getting your broker's license.

Labels: Accredited Real Estate School, real estate broker, real estate career, Real Estate School

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