INTERVIEW WITH JIM FIELD, CENTURY 21 AWARD

Jim Field has been with CENTURY 21 Award since 2004, and he has been a top producing agent in San Diego for over 20 years. In 2008, Field was the #1 ranked agent in CENTURY 21 Award’s Golden Triangle office.


RORE: How have you adapted to a changed market?

FIELD: You have to get control of the market. That means you have to recognize it for what it is and then take the actions that will get the right results. For me, it’s meant going back to the basics. It means prospecting, lead follow up, and providing more value in my service. It’s about listening more intently and adding value.


RORE: What does your prospecting routine look like?

FIELD: My goal is eight to ten hours on the phone starting early each morning, five days per week. You have to commit to the disciplines that generate results. In the “old market”, agents would sometimes get a listing, list it high, and eventually the market would catch up with the pricing and the property would sell. Now it’s different. You have to really communicate with your sellers and bring more value than ever before. Sometimes you have to say “no” to a listing. Sometimes you really have to work to get a seller to understand how much competition they have to contend with and that it is in their interest to price it attractively.


RORE: How do you keep yourself motivated?

FIELD: That’s a great question. I believe that mindset is a very powerful thing, and I work hard to feed my mind the right diet of inspiration and affirmation. I read for an hour every morning, and I pick up literature that helps me stay positive. I think staying positive is a challenge for every person, but for me starting the day with powerful affirmations and inspiring literature sets the tone for the whole day.


RORE: What’s the best piece of advice you could give to a newer agent?

FIELD: First, get in front of as many potential customers as possible every day. This speeds up the learning curve faster than anything. Second, make every situation feel like a “win-win”. I am committed to being a calming influence in every transaction I am involved with. If the other party gets emotional, it can derail everything. You just have to take the emotion out of it and find solutions that are going to work for everyone. Sometimes that means being “pleasant but firm”; sometimes that means looking at alternatives you hadn’t considered and finding another way to reach your goal.


RORE: How are you achieving success with short sales?

FIELD: It depends a great deal on the lender. I’ve been able to get them done, but it takes persistence and consistent follow up every single week. I did short sales in the 90s, but it was different then. The banks are a little better at working with sellers now than they were a year ago, but you have to be persistent. Ultimately, almost any success you’re going to have in this market is based on persistence. You have to be disciplined in doing those things that generate business, over and over again, with more persistence than ever before. If you do that, and work hard daily at staying positive, your success will grow.

APRIL IS OPEN HOUSE MONTH IN THE CENTURY 21 SYSTEM

From CENTURY 21 Corporation…

One lucky consumer will win $221,000 towards the home of their dreams!

In a time when some consumers are cautious about entering the market, CENTURY 21 is paving the path for one person to earn $221,000 and eight others to win $5,000! Plus we have thousands of instant prizes. It's a way to show the public that our CENTURY 21 Agents are helping to re-build the dream of homeownership. The more consumers entered to win, the more leads generated for you!

Go to 21Online.com/aprilopenhouse to find all the latest information about the "Path to Your Dreams" Sweepstakes and April Open House Month. Make sure that you visit and download the most recent Consumer Rules and Entry Forms today - as we've made some ongoing enhancements.

How does a consumer enter to win?

A consumer can enter through Century21.com or directly at Century21.com/sweepstakes. Consumers can also visit Open Houses to enter through the downloadable entry form on 21online.com/aprilopenhouse. Print out a set for your upcoming Open Houses.

How will consumers learn about the Sweepstakes?

Not only are you promoting this Sweepstakes, but national radio and online advertising have already begun! Both the radio ads and online banners can be heard and seen on 21Online.com in the ‘About Us' section.

CENTURY 21 agents can win as well. Yes, that is correct. All Agents and Brokers can take advantage of Open House Month and are eligible to win one of eight $2,100 prizes.

There are two ways to enter:

Complete the online survey through 21Online.com/aprilopenhouse and you will receive one entry.

Hold Open Houses, and you will receive one entry for every open house on Century21.com. The more Open Houses you host, the more chances you have to win!

So Talk It Up! And get one lucky consumer on the "Path to their Dreams!"

FED AGREES TO PUMP ANOTHER TRILLION DOLLARS INTO MORTGAGES

What’s a trillion dollars worth in the mortgage market? About a half percent.

That’s the fallout from this week’s announcement that the Federal Reserve plans to buy up to $1 trillion in treasury bonds and mortgage backed securities. The Fed’s new plan nearly doubles its previous commitments, and shows that if banks won’t freely lend, the government intends to create a vacuum to suck up loans and clear space for new originations to take place.

30-year fixed rates dropped into the 4’s on the news… and having been in the business for two decades, there’s a “shock” factor to seeing interest rates in the 4’s that’s just hard to shake.

When you factor in discounted prices with rates in the 4’s and massive spending by the federal government, what I see is an incredible opportunity to make a long term investment in a fixed asset at a payment that is artificially low.

On the backside of this whole thing, we’re going to have inflation – gold jumped over $26 yesterday on the news of the Fed’s action – and with new construction essentially on life support, the demand for existing resale homes has to get stronger over time.

The government has clearly chosen to focus on the demand side of this equation – incentivizing demand with low rates and a large tax credit for first time buyers – which means that bringing buyers into the market has to be our focus.

I’d love to know your thoughts – as always, we’ll keep doing everything we can to keep the CENTURY 21 name front and center with Southern California’s real estate consumers.

B OF A STEPS UP TO THE PLATE ON JUMBO LOANS

Everyone in Southern California is acutely aware of the difficulty many buyers are having in obtaining competitive jumbo financing. Now Bank of America is stepping in with a new program designed to pull jumbo rates back down to more reasonable levels.

B of A’s new commitment to jumbo financing is already freeing capital and making deals happen – current jumbo fixed rates are in the high 5’s. The program requires a FICO score of 720, down payments of 20% or more, documented income, full appraisals and six months of reserves.

B of A says it will keep a large percentage of the jumbo loans on its books. The program will not be available through independent mortgage brokers – consumers will need to go directly through retail bank branches or through Countrywide, which will be re-branded as Bank of America April 22.

DATAQUICK NUMBERS SHOW STABILIZING MARKET IN SOUTHERN CALIFORNIA

For the first time in ten months, price declines came to a halt in Southern California, according to new information released by DataQuick earlier this week.

A total of 15,231 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was essentially unchanged from 15,227 for January, and up 41.3 percent from 10,777 for February 2008.

Throughout the region, foreclosures now account for 56% of sales activity, up from 36% one year ago.

The median home price stands at $250,000, down 41 percent from one year ago and over 50% below the "high water mark" of $505,000, which was set in mid-2007.

So what does it mean?

Ultimately, to turn our market around, it's going to take more buyers than sellers, more job gains than job losses and continued low interest rates to fuel a solid recovery. We have the buyers - with interest rates in the 5's (4's???) and the $8,000 first-time buyer tax credit spurring entry level sales, there's no shortage of buyer activity below $300,000.

The higher price points are still a concern, though, because equity losses are still mounting and an uncertain economic climate is causing many potential move-up buyers to take a long, slow assessment of whether or not moving up is the right thing to do.

But the bottom line is that we seem to have found our floor.

The tricky thing about trying to time the market is that you only know when you've touched bottom after you begin heading back up. That may be what's happening now.

With low rates, discounted prices and a strong, temporary tax incentive for first-time buyers, the rest of this year figures to see higher volume and more competition for entry level homes.

Freeing up additional credit, especially in the arena of jumbo loans, will continue to be hugely important to fueling a larger overall recovery.

We'll continue to work with our local, state and national government officials to push for more support for housing in California.

CALL OFF THE DEPRESSION

Interesting Reuters headline making the rounds today on the news of some unexpected life coming back into the US economy.

Housing starts jumped 22% in January and the closely followed Producer Price Index was up just 0.1%, suggesting that inflation is under control even with the government pledging to pump nearly $800 billion of stimulus money into the economy.

The Federal Reserve is also expected to jump into the mortgage business in its largest capacity to date, purchasing up to $750 billion in mortgage-backed securities from Fannie Mae and Freddie Mac, which should drive 30-year fixed interest rates below 5.00% if and when the plan is formally announced.

Three out of four mortgage applications submitted last week were for refinances, according to the Mortgage Bankers Association. Fannie Mae says the volume of mortgage loans it refinanced in February was $41 billion, nearly three times the amount refinanced in January and evidence that homeowners with jobs, credit and documentable income are able to save money.

Economists are hopeful that lower mortgage payments will spur spending in other areas of the economy.

While we are still in a very sticky economic situation, it's evident that government action is stirring the pot and creating some positive momentum for the economy. Like turning a giant flywheel, there's been a lot of effort to get the wheel turning, but the hope is that we'll see more and more momentum as the different components of the stimulus plan begin to take root.

INTERVIEW WITH RICHARD ELIAS, CENTURY 21 AWARD

For over 15 years, Richard Elias has been making the home selling and buying process efficient, understandable and profitable for homeowners throughout the San Diego area. His reputation as a “Power Negotiator,” award-winning sales record, and commitment to customer satisfaction are just a few of the reasons Richard has been honored as a GRAND CENTURION in the CENTURY 21 system – a status that is accomplished by less than one percent of agents worldwide. In 2008, Richard was the #1 ranked agent in CENTURY 21 Award's Mission Valley office.

RORE: How has your business model changed in the past two years?

ELIAS: The best way to sum it up is to say I’ve gone back to following a schedule that’s 100% certain every day. There are activities I need to do every single day, and it starts with prospecting. The other thing I would say is that we have focused on going back to basics, which is something you hear a lot of people talk about, but we really are doing.


RORE: What does your prospecting routine look like?

ELIAS: As the market has shifted, we have really intensified our prospecting efforts. It’s 100% our main focus. We are always actively going after new business. The goal is to try and identify those people who absolutely have to do something. If a person needs to sell, he needs to sell. If they’re committed to selling, we will do whatever it takes to give them the best opportunity to reach their goal.


RORE: What about your efforts with buyers?

ELIAS: We understand that this has been a crazy market. With our buyers, we really work with them on understanding why they want to buy, and then we have an honest discussion about whether or not now is the right time to buy. We remind them that real estate is a long-term investment – that’s a belief people got away from for a period of time. Our job is to give them solid, factual information to base their decisions upon.


RORE: How do you counter the negative perceptions that exist in the media and in the marketplace?

ELIAS: One thing I see agents doing too often is buying into the negativity that’s out there and then it becomes internalized as part of their belief system. It’s like a self-fulfilling “doom prophecy”. Yes, we know that some homes are not selling. But last year over 4 million homes did sell in the U.S. The thought process has to be, “What percentage do you want of the 4 million sales that occurred?” I don’t listen to the news anymore.


RORE: What do you do to motivate yourself?

ELIAS: Now more than ever, I think it’s so important that you fill your mind up with good, positive influences. There is good news out there. There are also a lot of things to be grateful for. One thing I will tell you for sure is I appreciate and respect every deal that we get done. I think everyone on my team has a deeper appreciation for what we accomplish, and we don’t look at anything lightly.


RORE: How does being affiliated with a top company help you?

ELIAS: Without a doubt, in this market you need to align with the company branding and market presence of CENTURY 21 Award. It’s nice to be able to walk into a listing appointment and say that I am part of the number one CENTURY 21 franchise in the world. It’s nice to say I’m with a company that continued moving up in 2008 when other companies were closing down.


RORE: What advice would you give to new agents or agents looking to jumpstart their business?

ELIAS: You cannot wait around for things to change. You need to commit to hours of prospecting on a daily basis. You need to set goals and have personal direction, or you will not survive this market. You are either going to choose your direction and go there, or sit back and let the tide carry you where it wants to go.


RORE: What are you doing to stay connected with your past clients?

ELIAS: You need to be intentional about reaching out to your past clients, and you need to do it more personally than in the mail or through traditional means of staying in touch. We understand that there are challenges for people, but we are still here to help. We not only reach out to our past clients, we let them know that if they have friends or neighbors who need help, we’re here for them, too. We’ll say, “Please have them call me!”


RORE: You are known for being a disciplined “time blocker”. What are the daily routines that make you successful?

ELIAS: My schedule is totally predictable and it drives my business. But the most important thing is in making time for prospecting every single day. My personal commitment is 25 new contacts a day, which can include 5 to 7 expireds, 3 to 5 FSBOs, 10 “Just Listed / Just Sold” contacts, 5 past clients, and 3 professional contacts every day. Prospecting time is really your “money time”, and it’s where you show your value. If you have skills and know how to handle objections, you can succeed in any market, anywhere.

SALES ACTIVITY IN OC UP 58%, ACCORDING TO DATAQUICK

Interesting analysis from DataQuick on sales in Orange County ZIP codes during the first few weeks of the year. Overall, sales are up 58.8% from one year ago, but some ZIP codes are showing increases of 400% or more.

Check these numbers out:

Sales up 400% or more:

433% Garden Grove 92844

425% Santa Ana 92707

400% Foothill Ranch 92610

Sales up 200% - 399%

375% Anaheim 92806

333% Santa Ana 92703

218% Garden Grove 92843

Sales up 100% - 199%

183% Fullerton 92831

163% Anaheim 92802

147% Tustin 92780

When you look at this sampling, there's one theme that jumps off the page - affordability.

The home ownership rate in America jumped from 62% to 69% between 1995 and 2005 because underwriting guidelines were removed for many entry level buyers. That, it turns out, is the root cause of the distress we are feeling today.

What's clear is that Orange County is a great place to live... and at prices not seen in almost a decade, there are plenty of buyers and investors who think living in the OC is a bargain once again.

The $8,000 first-time buyers tax credit, coupled with low rates and an opportunity to earn some sweat equity, is why the bottom of our market is tops in the minds of buyers today.

HELP YOUR CLIENTS WITH TAX ASSESSMENTS

I've heard and seen it a lot lately - from top producers.

Homeowners want to know how to appeal their property tax assessments, and they need your help.

If you're looking for a reason to connect with past clients, or to bring some value to those you don't currently have relationships with, consider contacting homeowners and offering to provide them with comps to help them protest their property valuations.

The state of California has a great booklet which explains the process step-by-step... you can download this 19 page guide by clicking HERE.

My philosophy in sales has always been centered on relationships, not transactions... and this is one way to create stronger relationships and position yourself with integrity. In a season where many folks are watching every dollar, a successful reassessment could save $100, $200 or even $300 a month.

Be that trusted advisor... get on the phone and call your past clients!

HOMESTEPS (FREDDIE MAC) TO OFFER SELLING AGENT BONUS THROUGH JUNE 30

For offers received between March 2 and May 15, 2009, HomeSteps will be offering a $1,500 bonus to selling agents for all Freddie Mac properties sold in California.

Simply click on the coupon above, print it out and submit it with your next HomeSteps offer.

Enjoy!

INTERVIEW WITH RON ARNOLD, CENTURY 21 SUPERSTARS

In the coming weeks, Romero on Real Estate will feature conversations with top agents inside CENTURY 21 Award and CENTURY 21 Superstars.

This week, we introduce Ron Arnold of CENTURY 21 Superstars Placentia office. Arnold has been a continuous top producer with CENTURY 21 Superstars for more than eight years. In 2008, Ron broke through with his best one-year performance ever, eclipsing $400,000 in gross closed commissions to rank as the Placentia office's #1 agent.


RORE: Describe your 2008.

ARNOLD: Wow, 2008… 2008 required a huge amount more work to get deals in escrow, and a huge amount more work to keep deals together. There were so many more challenges with buyers who weren’t sure about the market. But I tell people the truth – that’s one of the core principles of my business. And if I don’t think it’s the right time for my buyers to buy, I’ll tell them. That approach has cost me some business in the short term, but it leads to a level of trust that is ultimately rewarded. Right now I have 24 buyers working with me at a serious level, so I know my approach is working.


RORE: How has your business model changed in the past two years?

ARNOLD: I am doing a much better job of managing contact campaigns. I have really emphasized staying touch with people, and I have set up detailed campaigns that reach people wherever they are. I can’t emphasize enough how important it is to make impressions constantly. If I do these campaigns as I have them scheduled, I am going to have a much better and less stressful year. If I don’t implement what I have planned, I have to invent new things to send out all the time, and that will take away from the time I need for contracts and appointments. I am totally focused on implementing best practices at every level of my business.


RORE: How have the shifts in our market caused you to grow as a person?

ARNOLD: It’s made me appreciate what’s most important. Sometimes there are seasons that are really barren, and I think God uses these times to draw us back and make us reflect on what our true priorities should be. And going through that process makes me so much more grateful for things when times are going well. For me, it’s become clear that my relationships with God, my wife, and my kids are most important. I have to give credit to the Lord, because He has given me all these good things.


RORE: What else have you done to stay connected with your past clients as the market has changed?

ARNOLD: Every year I send gifts to my past clients, and I work to stay up on what’s happening in their lives. But the last two years have been ugly for a lot of people, and that’s simply a reality. You have to face the pain that exists. I have committed myself to engaging with all of my past clients, and one thing I have really focused on is helping people get their property taxes reassessed. I have pulled comps for many of my clients and advised them on how to get a reduction. I have helped them with the process, and that has made their payments more affordable. It goes back to being principle-centered, and one of my core principles is that I really want to help people. That doesn’t change no matter what kind of market we are in.


RORE: What advice would you give to someone who may have had success but needs to kickstart their business?

ARNOLD: Find people who know you, like you and trust you. Spend personal time with these people. Take them to Starbucks, go to lunch, take them out. Say “I’m here for you, but I need your help.” Learn to ask for referrals. If you invest in these relationships, your sphere will invest in you. Personalize your communications. Treat people as individuals. There’s not a “90-day quick fix” to generating referrals… it’s about treating people the way you would want to be treated, and always giving things of value to the people who know you best.

FANNIE MAE PROHIBITS COMMISSION CUTTING ON SHORT SALES

Every agent who has participated in a short sale transaction knows there may come a moment when the lender announces a reduction in the commission it will approve as a condition of accepting an offer.

A great deal of angst circulates around this issue because, despite what the seller agreed to pay in the listing agreement, the transaction cannot close without the lender's approval which is often a "take it or leave it" position.

The buyer and seller want the transaction to close and agents do not want to be a road block to that outcome. Balanced against this is an agent's need to earn a reasonable income and justify their own expenses and liability incurred in a transaction.

If lenders condition acceptance of short sale terms on the willingness of agents to accept a reduced commission, agents really have no power - except to decline to list or show short sale properties in the first place - a tragic result for everyone, including lenders.

Fannie Mae was made aware of this pattern and the adverse consequences of agents and brokers avoiding short sales. As a result, Fannie Mae announced a revised policy that took effect March 1.

Now, "closing of preforeclosure sales may not be conditioned upon a reduction of the total commission to be paid to real estate agents to a level below what was negotiated by the listing agent with the borrower, unless the fee exceeds 6 percent of the sales price of the property in aggregate."

This policy applies to Fannie Mae loans only and only to those loans where the borrower is in default. Nevertheless, it should give agents and brokers a degree of comfort in knowing that the agreed and earned commission will be paid on many short sale transactions.

For a property secured by a Fannie Mae loan, where the seller is in default, the lender may no longer condition acceptance of buyer's short sale offer on the agents' and brokers' agreement to reduce their commission below a total transaction commission of 6%.