Our newest Video Tour! Great house – please give us your feedback. If you are thinking of selling your home, be sure to contract us about The McAllister Team Seller Advantage – the most comprehensive marketing plan in the industry.
February 3, 2012
January 27, 2012
Our First McAllisterTeam Video – 4707 Ridge Road, Urbana, Ohio 43078
4707 Ridge Road – $164,900 This is our first video! This is what all McAllister Team listing clients can expect from us. If you are thinking about listing your house – give us a call.
January 17, 2012
Looking ahead to 2012 and Beyond – The McAllister Team / Real Estate II
These are my notes from my presentation this morning at the Springfield Clark County Chamber of Commerce. What we do, where we have been in the area, and where I think we will go in the next few years.
Good Morning, Thank you for the opportunity to speak for a few minutes.
I’m Chris McAllister with Real Estate II. My goal this morning is to give you a sense of our local real estate market, some information on national trends and statistics, and a little bit about myself and my team, and the services we provide. I have a summary hand out of information as well.
My Real Estate II office is just up the street in the Bushnell Building, and we also have our office on East Home road and a third in Urbana on Court Street. Collectively we have 48 licensees and a very healthy share of the market.
I have been licensed since 2001 and I was born and raised in Springfield and attended Springfield North and The Ohio State University. My last ‘real’ job was as a District Team Leader for Target Stores in Long Island and around New York City. My wife will tell you that in the 17 years or so I worked in retail that we transferred 17 times. So we had some personal experience buying and selling houses. In late 2000 I was not sure what I wanted to for the next few years but I knew I wanted to own my own business and work for myself. I decided to pursue real estate and real estate investing.
Business was great for quite some time -until it wasn’t. I’m sure you all have a pretty good idea of what happened to the market in 2007 and 2008 – but if you missed, take my word for it – it wasn’t pretty. – and yet here we are.
The McAllister Team focuses on three primary areas.
First, is what I call the ‘retail’ portion of our business. We are Realtors and we help people buy and sell homes.
The second area we work in is REO or Real Estate Owned property. We work with over two dozen banks and financial institutions helping them liquidate distressed property, mostly to investors but more and more end users as well. I have actively worked this business since the year I got my real estate license. We have marketed and sold literally hundreds of these properties in the Miami Valley over the last few years. Sadly, depending on how you look at it, this will be a big part of our business for at least another two to three years as what I call “The Great Deleveraging” continues to play itself out.
The third area we work in is property management. At present we look after 350 or so rental units for various owner clients. We work with owner clients with 50+ properties as well as owners of individual properties who want to rent their homes out in order to take advantage of a job transfer or to move up to a larger home.
The statistics regarding our local market I want to share with you this morning come from our MLS and are for the 12 months ending September 30. First of all, for some perspective, July 2005 was our last best month. For the year 2005 in Clark County we sold over 1200 properties with a volume approaching $124 Million. For the same calendar period ending September 30, 2011, we sold 743 properties with a total sold volume of $70 Million and change. That is a drop of more than 40%.
We have been ‘bumping along the bottom’ the last three years. For the calendar period ending September 30 2011 compared to the same period ending September 30, 2010, unit sales were down 8% but volume was essentially flat to last year and to 2009. Things are not necessarily better, but they do not appear to be getting any worse either.
I am planning for a similar 2012. However, I expect a large influx of distressed property to hit the market in Spring that will provide a bit of a boost to volume. Foreclosures were down for most of 2011 as the large banks, Chase, Citi, Bank of America and like became embroiled in ‘Robo-Signing Scandals’ and were / are being forced by the 50 states attorneys generals to address their practices and ensure they are foreclosing within the letter of the law. There was a significant uptick in sheriff sale activity beginning in November last year.
The quality of the distressed inventory is improving in that many REO properties, especially those being marketed by Fannie Mae and Freddie Mac are in good shape and are highly attractive to first time home buyers. As these properties are sold to owner occupants, it strengthens the market for all of us. Quite frankly, available inventory has been thin recently as so many would be sellers are under water on their mortgages. This Deleveraging is a painful process but it is what needs to happen to get us where we need to be.
Most experts I follow continue to predict the overall market will improve by 2014 with moderate to strong growth into 2023 and beyond. Demographically this makes sense as the ‘Echo Boomers’ the largest demographic bubble since the ‘Baby Boomers’ finally begin to move out of their parents basements and build new homes, families and lives. This combined with an improved job market and Baby Boomers in a position to downsize once the market stabilizes provide not just hope, but a good bet for improvement in the future.
I am all about the numbers so if you have questions please do hesitate to see me after the program this morning. I would like to leave you with the fact that houses that are well positioned in the market and in move in condition are selling. And there are going to be some tremendous deals still to be had over the next couple of years.
Thank you so much for allowing me to ramble on up here. I have some handouts for you to take with you at our table if you would like some more info.
October 31, 2011
Housing Stats For Clark, Champaign, and Surrounding Counties
The link below will take you to housing sales stats for the first three quarters of this year for all of the counties served by our Multiple Listing Service. You will see that most of the counties are down to last year with the exception of Logan County which is up dramatically. (No reason why but WRIST verified the numbers.) Clark county is off by roughly 8% YTD in unit sales. Call or email me with questions.
http://www.wristinc.com/November2011/3rd%20Q%202011%20Home%20Sales.pdf
August 16, 2011
The $1000 Solution – Working with Realtors
The $1000 Solution – Working with Realtors
The following is an excerpt from our latest E-Book; The Help-U-Buy Way.
Even if we were not Realtors, we would work with Realtors to sell our homes as opposed to taking the “for sale by owner” route. Some investors believe that having a Realtor involved in a transaction will scare clients away because they want to avoid a hard sell. Other investors cannot abide the fact that real estate firms sometimes make more money than they do on a given sale. More often than not, we think the reason some investors are averse to working with Realtors is that they have never worked with
a really good one.
Realtors are not miracle workers. They cannot sell a house for more than the market will bear. They cannot make buyers buy something they don’t want to buy. They can, however, provide you with detailed information about the market you cannot easily obtain anywhere else. They have the network, the connections, and the technology to effectively price and sell real estate. In today’s market, there is no substitute for the marketing exposure and professional advice that only a good Realtor can provide.
Realtor Economics
We choose to offer a 3.5% cooperating commission to buyer agents to set ourselves apart from the competition who generally offer 3% or less. This combined with our Help-U-Buy™ brand has caused agents to look to us when they have clients who cannot obtain traditional financing.
The $1,000 Solution
We want to motivate agents to find us land contract buyers. Many times these days, there is not enough down payment at closing to cover an agent’s commission and other seller
expenses such as deed preparation, property tax credits or conveyance fees, the agent has to wait until the client obtains permanent financing to get paid. We make it clear in the MLS and in marketing e-mails to the agent community that they can count on a minimum of $1,000 at a land contract or lease option closing, regardless of the amount of down payment we receive. The agent collects the rest of his or her commission when the buyer obtains permanent bank financing at the end of the option or land contract term.
Is $1,000 a lot of money? Yes, but if it gets a tenant / buyer into the house 30 to 60 days faster than not, it is worth every penny. Secondly, mass mailings and private marketing is also expensive and hit or miss at best given the glut of inventory on the market.
Remember, $1,000 employs every agent in your market area, not just your listing agent. An MLS listing also gets your house on every real estate related web site that matters. In addition, the selling agent wants the rest of their commission. They along with you, your listing agent, your lending partner, have a vested interest in seeing that their client cashes you out. We have also found that buyers that come to us through this method are more likely to understand their commitment, work on their credit, and pay on time.
Can you do it without a Realtor?
Is it possible to do this effectively without a Realtor involved? For some it is. We are confident, however, that correctly deploying a Realtor and their services as a key member of the team will result in greater success.
Simply turning over a listing to a Realtor to “do their thing” will probably result in disappointment. On the other hand, choosing a Realtor as a strategic partner and merging what they bring to the table with what you have learned in this chapter will bring superior results.
August 10, 2011
2011 OAR President’s Sales Club Award
Allow me toot our own horn for a moment – The McAllister Team was awarded the Ohio Association of Realtors Pinnacle of Performance award for 2011. We closed over 250 transaactions again this year. Way to go team! – and remember, no matter how busy we are, we are never too busy for your referrals!
July 21, 2011
July 12, 2011
Financing Tips and Potential Hurdles – Investor Selling Strategies
The following is an excerpt from my latest E-Book, The Help-U-Buy Way: The Retail Sales Strategies You Need to Succeed In Any Market. For you FREE copy email me at Chris@RealEstate2.com or visit me on Facebook. www.facebook.com/TheMcAllisterTeam
Choosing and Working With a Lending Partner
One of the most important things to look for in a lending partner is someone who understands that most of your referrals will not qualify for a traditional mortgage right away. Many if not most lenders will see your referrals as waste of time. You need a partner who sees the value, and gets a degree of satisfaction, from putting someone in the house of their dreams – regardless of how long it takes.
They have to understand that these will be some of their most grateful clients and will they will refer them to family and friends in the future.
Your relationship with your Lending Partner must be reciprocal. The perfect partner is going to be in for the long hall, and you must be sure that your ‘easy’ purchase referrals go to this person as well as the credit challenged customer. Take the time to share your vision and business plan with your prospective lending partners, and take the time learn about their business as well.
Your Lending Partner is a key member of your team, and critical to your profitability.
Does Your Lender Have a Credit Rehabilitation Plan?
Most reputable lenders have a credit rehabilitation program they contract with. These services work closely with your buyer for the period of time necessary to ‘coach’ them to an improved credit score. Most cities have non-profit entities that provide home buyer education classes as well. Completion of these classes can help the buyer qualify for grant money if they and the home they are purchasing qualify. Sometime successful completion of the classes alone aid qualifying for a traditional mortgage.
The First Meeting
We always recommend the investor or the investor’s Realtor meet with the buyer and the lender together at the lender’s office. The initial portion of this meeting may include the exchange of confidential information the buyer may not want to share with you or your Realtor, so be sensitive to that. At a minimum however, you should conclude the meeting together so the buyer sees that you and your lending partner are both committed to getting the buyer into the home they want with financial terms that work for them.
FHA and Conventional Seasoning Rules
Lenders have specific criteria for determining whether to make a loan and one of them is under what circumstances the property is being sold. While you should never allow a buyer’s lender to bully you into accepting less for a property than it is worth, it is helpful to be aware of the constraints they operate under.
Yes you must stand your ground but there is no reason to rail against something that is completely and utterly beyond your control either. FHA will not finance a home unless it has been held by the seller for a minimum of 90 days. In addition, expect to have to detail what you did to the house and provide your own comparable sales for review. Conventional mortgages backed by Fannie Mae and Freddie Mac have their own internal guidelines to limit risk, fraud, and predatory lending.
Appraisals
Appraisals by definition are an opinion of value. They are however the opinion of a professional licensed by the state and contracted by a lending institution that wants to ensure that every loan they make will perform. Appraisals sometimes come in for less than the price the property is contracted for. Sometimes the appraisal comes in just fine but the lender requires a second appraisal to justify the first. This is dictated by their internal underwriting requirements.
During 2008 and into 2009 we saw more and more second appraisals requested. One of the reasons is that we work in a market area being designated as ‘declining’. This means that home prices have been going down year over year. Banks are not in the business of making loans against depreciating assets.
Laws governing lending are changing on a monthly basis making it all the more important to develop a relationship with a reputable lender that understands your business.
For more information – visit us at www.TheMcAllisterTeam.com
July 1, 2011
Our Newest Agents
I want to welcome our newest agents to The McAllister Team and Real Estate II.
Mikel Hall is a new Realtor new to the business who has been with us for a couple of months now. Already he has had two closings and two more in the pipeline. (We forgot to tell Mikel it’s a tough time in real estate right now.) Welcome Mikel!
Pierce Newland has joined us. Pierce has been licensed for a few years now and comes to us from Assist 2 Sell. Pierce is a very hard working person, eager to learn and eager to serve both buyers and sellers as part of our team. Welcome Pierce and THANK YOU for choosing Real Estate II.
Both Pierce and Mikel and be reached at 937-390-3715.
February 23, 2011
Our Book is Now an Amazon Kindle Download!
Our book is now available as an Amazon Kindle Download! (edit/delete)
We Lost $1,000,000 in Real Estate In Less Than 5 Years by Brad Zitzner and Chris McAllister is now available for Kindle download for $4.96.
Our personal story of navigating the real estate downturn. This is a how-to guide of everything that worked for us, and everything that did not. Lots of case studies and personal experience. If you are thinking of investing in real estate – you will want to read this book. The paperback edition is available on Amazon.com also for $9.96. Buy or sell a house and get one free!
