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Brook Marshall
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TODAY S BUYER S REP A publication of the Real Estate Buyer s Agent Council, Inc.

Number 6 No Longer Waiting In the Wings?

the day they ll own a place of their own a shared goal they want to accomplish before

They re feeling more secure in their jobs and wonder if now is the time to make a move,

Across the U.S., it s becoming more and more economical to own instead of rent.

on a median-priced home is more affordable than fair market rent on a three-bedroom

Of course, affordability, interest rates, and job security aren t the only factors

They also need to secure a mortgage to finance their purchase.

With rents rising faster than income and lenders loosening credit and down payment

have a much easier time getting approved for financing, says Joe Caltabiano, SVP of

1 TODAY S BUYER S REP A publication of the Real Estate Buyer s Agent Council, Inc. A wholly-owned subsidiary of the National Association of REALTORS June 2015 Volume XXIV Number 6 No Longer Waiting In the Wings? Get Ready for the Next Wave of New and Returning Buyers Josh and Lauren are tired of renting. For the past five years they ve been paying off their student loans and dreaming about the day they ll own a place of their own a shared goal they want to accomplish before turning 30. Their landlord plans to hike their rent again. They re feeling more secure in their jobs and wonder if now is the time to make a move, especially while interest rates are still low. Josh and Lauren are not alone. Across the U.S., it s becoming more and more economical to own instead of rent. In fact, RealtyTrac found that in the first quarter of 2015, the monthly house payment on a median-priced home is more affordable than fair market rent on a three-bedroom property in 76 percent of the U.S. counties included in its analysis. Of course, affordability, interest rates, and job security aren t the only factors potential buyers are considering. They also need to secure a mortgage to finance their purchase. Fortunately, lenders are making it easier to clear this hurdle too. With rents rising faster than income and lenders loosening credit and down payment requirements, new buyers will not only consider purchasing a home an option, but will have a much easier time getting approved for financing, says Joe Caltabiano, SVP of Mortgage Lending at Guaranteed Rate in Chicago. Also, builders have entered the first-timer arena and are now building smaller, more affordable, housing. The combination has created the perfect storm for first-time home buyers. Continued on page 3 LOOK INSIDE... Finding Buyer Assistance Programs page 3 REBAC Course Offerings at REALTORS Conference & Expo page 4 Don t Forget Boomerang Buyers! page 6

MEMBERSHIP UPDATE WORTH QUOTING... Life is 10 percent what happens to me and 90 percent of how I react to it - Charles Swindoll Last Call for Hall of Fame Nominations!

) Don t miss out on the opportunity to acknowledge their contributions. Congratulations!

commencement ceremony held in Washington, D.C.

concentration courses, while also achieving a cumulative grade point average of 3.00 or higher (on a 4.00 scale).

acquired in the program. Nominees for the 2015 REBAC Hall of Fame must be submitted by June 29, 2015. To download a nomination form, visit REBAC.net/HOF.

Residential Real Estate Sales, Marketing and Management Melia Campbell-Frank, Marysville, California* Amy Fry, York, Pennsylvania Rachael Hand, Lafayette, California John

2 MEMBERSHIP UPDATE WORTH QUOTING... Life is 10 percent what happens to me and 90 percent of how I react to it - Charles Swindoll Last Call for Hall of Fame Nominations! Do you know someone who has excelled in providing or promoting representation for home buyers? (Perhaps you are that someone?) Don t miss out on the opportunity to acknowledge their contributions. Congratulations! 2015 Realtor University Graduates REALTOR University is pleased to announce the 2015 Master of Real Estate (MRE) graduates, who were awarded their diplomas on May 15 at a commencement ceremony held in Washington, D.C. To graduate, MRE students must receive credit for at least 12 courses (36 semester-credit hours), consisting of seven program-specific courses and five elective and concentration courses, while also achieving a cumulative grade point average of 3.00 or higher (on a 4.00 scale). As with any graduate degree program, the MRE at REALTOR University requires students to complete a final capstone research project that integrates the knowledge and skills acquired in the program. Nominees for the 2015 REBAC Hall of Fame must be submitted by June 29, To download a nomination form, visit REBAC.net/HOF. Please call with any questions. Residential Real Estate Sales, Marketing and Management Melia Campbell-Frank, Marysville, California* Amy Fry, York, Pennsylvania Rachael Hand, Lafayette, California John Mayfield, Farmington, Missouri* Mary Miner, Austin, Texas Mary Ellen Volpa, Middletown, Delaware Adrienne Wagner, Donegal, Pennsylvania Commercial Real Estate Investment and Analysis Micah Capener, Tremonton, Utah Andrew Gonzalez, Vero Beach, Florida* Thomas Guirola, Washington, D.C. Michael Hege, Charlotte, North Carolina* John Kent, Greenville, South Carolina* Real Estate Association Management Mary Ann Sgobba, Totowa, New Jersey To learn more about REALTOR University s Master of Real Estate program visit RealtorU.com. * Indicates candidates who ve nearly completed their graduate degree. Connect online with fellow ABR s for news, tips, and REBAC.net 2 TBR June 2015

1 IMPROVED LENDING ENVIRONMENT If you re encountering would-be buyers who

changed over the past months, including: Conventional loans: Both Fannie

first-time buyers (previously 5 percent).

credit score requirements on conventional loans to 620.

85 percent of the loan amount, down from 1.35 percent.

Credit standards for FHA loans have also been lowered, with some banks

VA loans: Eligible members of the military, veterans, spouses, and some

available at the regional, state and local level designed to help

Unfortunately, the vast majority of buyers eligible for assistance are

Marketing Tip: Home buyers are eager to learn about new, favorable

Partner with a qualified lender to offer seminars on buyer assistance

It s a great way to meet interested buyers and showcase your services. es.

and Present Home Buyer Seminars Often, maximum income levels are higher

Plus, remember that the federal government s definition of a first-time

expanding the pool of potential candidates well beyond today s Millennials.

is bound to score bonus points with clients and referrals.

3 No Longer Waiting In the Wings? Get Ready for the Next Wave of New and Returning Buyers Continued from page 1 IMPROVED LENDING ENVIRONMENT If you re encountering would-be buyers who simply assume they won t qualify for a mortgage, explain how things have changed over the past months, including: Conventional loans: Both Fannie Mae and Freddie Mac now allow minimum down payments as low as 3 percent for first-time buyers (previously 5 percent). Some lenders, including Guaranteed Rate, have also lowered their minimum credit score requirements on conventional loans to 620. FHA loans: Annual mortgage insurance premiums have been reduced to 0.85 percent of the loan amount, down from 1.35 percent. On average, this saves borrowers about $1,000 per year. Credit standards for FHA loans have also been lowered, with some banks accepting minimum scores as low as 600. VA loans: Eligible members of the military, veterans, spouses, and some defense-related employees can apply for loans with zero down payment and no mortgage insurance requirements. Homebuyer assistance programs: A surprising number of programs are available at the regional, state and local level designed to help first-time homebuyers secure attractive financing terms. Unfortunately, the vast majority of buyers eligible for assistance are unaware of what s offered, or falsely assume they won t qualify. Marketing Tip: Home buyers are eager to learn about new, favorable financing options. Partner with a qualified lender to offer seminars on buyer assistance programs. It s a great way to meet interested buyers and showcase your services. es. A 4-Step Guide for Successful Home Buyer Seminars How to Develop, Promote and Present Home Buyer Seminars Often, maximum income levels are higher than many realize. Plus, remember that the federal government s definition of a first-time buyer is someone who hasn t owned a home within the past three years, expanding the pool of potential candidates well beyond today s Millennials. See 4 Ways to Find Buyer Assistance Programs (below) to research what s available in your area. Share what you learn in client newsletters, blog posts, or social media updates. After all, any buyer s rep who helps buyers find the best financing deals is bound to score bonus points with clients and referrals. Continued on page 6 4 Ways to Find Buyer Assistance Programs 1. Visit HUD (portal.hud.gov). The U.S. Department of Housing and Urban Development compiles lists of regional, state and local assistance programs. To find them: Select your state. Click on Learn About Homeownership Select Assistance Programs (under Buying a Home ) 2. Do a Google search of [name of state] te] home buyer assistance. 3. Check Down Payment Resource. (downpaymentresource.com), a web-based aggregator of homebuyer programs that works in partnership with numerous MLSs. 4. Talk to local mortgage professionals. Note: Canadians can do similar research via Service Canada at servicecanada.gc.ca/eng/lifeevents/buying_a_home.shtml TBR June

Join us at The REALTORS Conference & Expo In San Diego! November 13-16, 2015 EXCLUSIVE REBAC MEMBER EVENTS Unlimited Opportunities for ABR s!

8:15pm Exclusive ABR & REBAC networking opportunities Knowledgeable speakers and exciting entertainment 400 exhibitors showcasing new products, services and ideas Always a highlight of

Right after the General Session, head to the ABR /GREEN/SRES Reception to help induct the newest members of the REBAC Hall of Fame!

net/courses/conference-expo for updated information regarding REBAC course offerings and the 2015 REALTORS Conference and Expo.

Thursday, November 12, 8:30am 5pm Instructor: Maura Neill, ABR, CRS, e-pro Instructor: Ginni Field, ABR, CRB, GRI, SFR, SRES Refer a friend or colleague!

During the course, participants learn to build a buyer representation business; the value of the services performed on behalf of buyer-clients; ways to work toward a signed buyer

Registration fee: $199 on or before October 16, 2015 and $225 thereafter. Prospecting, Farming, Networking! Lead generation goes by many different names.

4 Join us at The REALTORS Conference & Expo In San Diego! November 13-16, 2015 EXCLUSIVE REBAC MEMBER EVENTS Unlimited Opportunities for ABR s! Special buyer representation sessions Numerous pre-conference course offerings (details below) ABR, GREEN and SRES Networking and Awards Reception - Saturday, November 14, from 6:15 8:15pm Exclusive ABR & REBAC networking opportunities Knowledgeable speakers and exciting entertainment 400 exhibitors showcasing new products, services and ideas Always a highlight of the REALTORS Conference & Expo social scene, this year s Reception promises to be better than ever. Right after the General Session, head to the ABR /GREEN/SRES Reception to help induct the newest members of the REBAC Hall of Fame! REBAC COURSE OFFERINGS All courses will be held at the Hilton San Diego Bayfront. Visit REBAC.net/courses/conference-expo for updated information regarding REBAC course offerings and the 2015 REALTORS Conference and Expo. Accredited Buyer s Representative Designation Course Wednesday, November 11 & Thursday, November 12, 8:30am 5pm Generating Buyer and Seller Leads: Capture, Qualify, and Convert Course Thursday, November 12, 8:30am 5pm Instructor: Maura Neill, ABR, CRS, e-pro Instructor: Ginni Field, ABR, CRB, GRI, SFR, SRES Refer a friend or colleague! This two-day course is the foundation of the ABR designation program. During the course, participants learn to build a buyer representation business; the value of the services performed on behalf of buyer-clients; ways to work toward a signed buyer representation agreement; and methods, tools, and techniques to provide the support and services that buyers want. Registration fee: $199 on or before October 16, 2015 and $225 thereafter. Prospecting, Farming, Networking! Lead generation goes by many different names. Are your lead generation techniques built to last? We will examine the discipline, strategy, and systems that effective lead generation requires. We will look at traditional and innovative methods for creating leads as well as scripts and tools for qualifying leads. Use this turnkey resource to also examine how to research and quantify the results of your lead generation activities so that you can fine tune and focus your efforts. Counts as an elective for the ABR Designation. Course Fee: $75.00 per person through October 16th. $95.00 per person after October 16th. TO REGISTER OR LEARN MORE For a complete roster of conference events, or to register, please visit REBAC.net/courses/ conference-expo For questions, contact REBAC at or REBAC@realtors.org. 4 TBR June 2015

Champion Emmitt Smith 4 VIP tickets to the General Session with three-time Super Bowl Champion Emmitt Smith Full Early Bird REALTORS Conference & Expo registration ($350 value) Early Bird REALTORS

Print Shop NAR Green Day 1: Resource-Efficient Homes Features and Benefits Thursday, November 12, 8:30am - 5pm Instructor: John Shipman, GREEN Learn real estate concepts, principles, practices and

Stand out with the only designation on this topic for real estate agents conferred by the National Association of REALTORS. Course Fee: $75.00 per person through October 16th. $95.

5 REBAC S SEA YOU IN SAN DIEGO SWEEPSTAKES! Be sure to select ABR /GREEN/SRES as your primary affiliation when you register, so you ll automatically be entered in our sweepstakes. Prizes are: AIRCRAFT CARRIER FRIGATE One night s stay at the Hilton San Diego Bayfront, REBAC s 2015 Conference & Expo Headquarters 2 VIP tickets to the General Session with three-time Super Bowl Champion Emmitt Smith 4 VIP tickets to the General Session with three-time Super Bowl Champion Emmitt Smith Full Early Bird REALTORS Conference & Expo registration ($350 value) Early Bird REALTORS Conference & Expo registration ($350 value) $200 gift certificate to the REBAC Print Shop Winning entries will be drawn October 16, Please note that REBAC reserves the right to substitute alternate prizes of equal value. Complete sweepstakes rules are available upon request to REBAC. CRUISER 2 VIP tickets to the General Session with three-time Super Bowl Champion Emmitt Smith Full Early Bird REALTORS Conference & Expo registration ($350 value) $100 gift certificate to the REBAC Print Shop NAR Green Day 1: Resource-Efficient Homes Features and Benefits Thursday, November 12, 8:30am - 5pm Instructor: John Shipman, GREEN Learn real estate concepts, principles, practices and benefits related to resource-efficient homes. Information for this designation is provided from the ground up in a way that makes sense to you and your clients. Stand out with the only designation on this topic for real estate agents conferred by the National Association of REALTORS. Course Fee: $75.00 per person through October 16th. $95.00 per person after October 16th. Property Pricing Strategy Certification Course Thursday, November 12, 8:30am 5pm Instructors: Lynn Madison, ABR, GRI, SRS and Melanie McLane, ABR, CRB, CRS, GRI, RAA, SRS, SRES, GREEN Take the NEW pricing strategy course and earn NAR s latest certification on pricing properties! Learn how to choose comps, make adjustments, and create a CMA. Discover how to overcome objections and pricing concerns from your clients. And finally, understand how to work with appraisers. In addition to being the required course for NAR s new pricing certification, earn elective credit towards the ABR designation. Course Fee: $75.00 per person through October 16th. $95.00 per person after October 16th. NAR/REBAC complies with the Americans with Disabilities Act. Anyone needing special assistance to participate should notify REBAC in advance at TBR June

welcome a copy of the Home Buyer s Toolkit.

HOME BUYER S TOOLKIT 10 Steps to Choosing and Purchasing your Home Which markets are most likely to benefit from these socalled boomerang

Several other states, including Arizona, Georgia, Illinois, Michigan, and Texas showed substantial, but more modest improvements.

To view the data, go to realtytrac.com/news/ foreclosure-trends/boomerang-buyers. DON T FORGET BOOMERANG BUYERS!

largely older buyers who, for a variety of reasons, were pushed out of homeownership since 2006 and are now poised to reenter the market.

3 million borrowers were foreclosed on, received a deed in lieu of foreclosure, or short sold their home.

6 No Longer Waiting In the Wings? Continued from page 3 Get Ready for the Next Wave of New and Returning Buyers Marketing Tip: Information-hungry firsttime buyers will welcome a copy of the Home Buyer s Toolkit. Order customized versions now available in English or Spanish through the Member Center of REBAC.net. HOME BUYER S TOOLKIT 10 Steps to Choosing and Purchasing your Home Which markets are most likely to benefit from these socalled boomerang buyers? NAR estimates that California has been and will continue to be the biggest benefactor, followed by Florida. Several other states, including Arizona, Georgia, Illinois, Michigan, and Texas showed substantial, but more modest improvements. A similar analysis by RealtyTrac (illustrated below) breaks down potential boomerang buyers by major metropolitan areas. To view the data, go to realtytrac.com/news/ foreclosure-trends/boomerang-buyers. DON T FORGET BOOMERANG BUYERS! Even though Millennials have been grabbing the lion s share of real estate industry headlines, there are also a substantial number of largely older buyers who, for a variety of reasons, were pushed out of homeownership since 2006 and are now poised to reenter the market. NAR estimates that, between 2006 and 2014, nearly 9.3 million borrowers were foreclosed on, received a deed in lieu of foreclosure, or short sold their home. Nearly a million of these former owners have already reentered the market and many more are qualified, but waiting, to purchase a home. (See graph below. 1 ) MORE BUYERS = MORE DEMAND FOR ABR S As more new and returning buyers begin shopping for homes and ways to finance their purchase they re also going to be searching for the most qualified real estate professionals to assist them. That s where you come in. 1 For NAR s complete report, go to economistsoutlook.blogs.realtor.org/2015/04/17/return-buyers-many-already-here-many-more-to-come/. 6 TBR June 2015

Marketing Tip: Send attention-getting mailings to apartmentdwellers and other renters in your area using REBAC s postcards (two sizes) and flyers.

HOME OWNERSHIP: Take a new lease on life. arded by the Real Estate Buyer s Agent e only designation of its type recognized n of REALTORS.

Waiting Period Matrix: Post Foreclosure, Bankruptcy &Sh Short tsale Fannie Mae Freddie Mac FHA VA USDA Rural Jumbo 2 Foreclosure 7 Years from completion date 7 Years from

for deed-in-lieu from completion date 4 Years from completion date for short sale 1 4 Years for deed-in-lieu from completion date 1 Ch.

2 Years from discharge date 3 Years from completion date 3 Years from discharge date Based on specific investor guidelines Ch.

performance must be satisfactory; buyer must receive permission from the court to enter into a mortgage 1 Year of the payout must elapse and payment performance must be

receive permission from the court to enter into a mortgage 1 Must be a purchase of a primary residence with a maximum LTV/TLTV/HTLTV ratio of the lessor of 90% or the maximum for

Please Note: For extenuating circumstances, Fannie Mae is 2 years from completion date for short sale or for deed-in-lieu.

Source: Guaranteed Rate From inexperienced but eager Millennials, to once-burned and tentative boomerang buyers, today s buyers may not be the easiest clients, but they re

7 Marketing Tip: Send attention-getting mailings to apartmentdwellers and other renters in your area using REBAC s postcards (two sizes) and flyers. (Details in the Member Center of REBAC.net.) Be your r own landlord t Name domain.com ress L When n you want to buy, your ABR will bring you home. HOME OWNERSHIP: Take a new lease on life. arded by the Real Estate Buyer s Agent e only designation of its type recognized n of REALTORS. Established in 1988 than 30,000 members, REBAC is the on of real estate professionals specializing REBAC awards the industry-recognized RS after meeting the education and Purchase Waiting Period Matrix: Post Foreclosure, Bankruptcy &Sh Short tsale Fannie Mae Freddie Mac FHA VA USDA Rural Jumbo 2 Foreclosure 7 Years from completion date 7 Years from completion date 1 3 Years from completion date 2 Years from discharge date 3 Years from completion date Short Sale Deed-in-Lieu 4 Years from completion date for short sale 4 Years for deed-in-lieu from completion date 4 Years from completion date for short sale 1 4 Years for deed-in-lieu from completion date 1 Ch. 7 Bankruptcy 4 Years from discharge or dismissal date 4 Years from discharge or dismissal date 3 Years from completion date 2 Years from discharge date 2 Years from completion date 2 Years from discharge date 3 Years from completion date 3 Years from discharge date Based on specific investor guidelines Ch. 13 Bankruptcy 2 Years from discharge date 4 Years from dismissal date 2 Years from discharge date 4 Years from dismissal date 1 Year of the payout must elapse and payment performance must be satisfactory; buyer must receive permission from the court to enter into a mortgage 1 Year of the payout must elapse and payment performance must be satisfactory; buyer must receive permission from the court to enter into a mortgage 1 Year of the payout must elapse and payment performance must be satisfactory; buyer must receive permission from the court to enter into a mortgage 1 Must be a purchase of a primary residence with a maximum LTV/TLTV/HTLTV ratio of the lessor of 90% or the maximum for the transaction or a no cash-out refinance which must meet all guideline requirements. 2 JUMBO waiting periods vary by lender. Please Note: For extenuating circumstances, Fannie Mae is 2 years from completion date for short sale or for deed-in-lieu. For any mortgage with a LTV greater than 80% mortgage insurance is typically required. Mortgage insurance guidelines may differ. Update 8/16/2014. Source: Guaranteed Rate From inexperienced but eager Millennials, to once-burned and tentative boomerang buyers, today s buyers may not be the easiest clients, but they re certainly a welcome boom to the housing industry. Fortunately, your ABR training puts you in a much stronger position to attract and earn their business. Depending on your local market dynamics, this may be an ideal time to promote yourself to these groups, using a wide variety of marketing techniques and information resources (including those featured in this newsletter). After all, buyers don t want to be sold on your services. Instead, they want to see evidence that you can teach them, guide them, and find solutions that meet their unique needs. TBR June

Real Estate Buyer s Agent Council, Inc. 430 North Michigan Avenue Chicago, IL 60611 1-800-648-6224 REBAC@realtors.

8 Real Estate Buyer s Agent Council, Inc. 430 North Michigan Avenue Chicago, IL REBAC@realtors.org TODAY S BUYER S REP June 2015 Volume XXIV Number 6 Plan Now for the 2015 National Conference! It s not too soon to make your plans for the annual REALTORS Conference & Expo, November in San Diego, California. Registration opened on May 6. See pages 4 5 for details on REBAC s educational offerings. When you register, be sure to indicate ABR /GREEN/SRES as your primary affiliation. Why? First, you ll help REBAC receive a larger royalty, which helps finance REBAC programs and events at no cost to members. Additionally, you ll be automatically entered in REBAC s Sea You in San Diego Sweepstakes and be eligible to win prizes that include complimentary conference registrations, free hotel accommodations, gift certificates for the REBAC Print Shop, and more. Learn more at REBAC.net/courses/conference-expo.

BUYER S REP TODAY S. page 6. page 7. First-Time Buyers: Waiting in the Wings, Eager to Own! LOOK INSIDE...

BUYER S REP TODAY S. page 6. page 7. First-Time Buyers: Waiting in the Wings, Eager to Own! LOOK INSIDE... TODAY S BUYER S REP A publication of the Real Estate Buyer s Agent Council, Inc. A wholly-owned subsidiary of the National Association of REALTORS June 2017 Volume XXVI Number 6 First-Time Buyers: Waiting