What Have You Heard?

About the national foreclosure trends?

About your local market?

Check Out TheseLocal Opportunities

• Great Buy Photo #1

• Great Buy Photo #2

• Great Buy Photo #3

Top Three Benefits for Buyers

1. Own Your First Home: It’s More AffordableThan Ever

2. Invest:Values Mean Stronger Cash Flow,Better Returns for You

3. Move Up Now: Get More Than You Thought,and Sooner

Win in Five Steps

1. Know the language, playing field, and rules

2. Seize the opportunity.

3. Ignore the myths.

4. Be ready to go.

5. Build a strong team with your expert distressed property agent.

Know the Language, Playing Field,and Rules

• Language and Playing Field – Get Familiar with Foreclosure Terms, Players, and Motives

• Rules – Know Them and

Follow Them

Distressed Property

Rules: Traditional vs. Distressed

• They’re different!– Price– Speed– Decision-Making– Communication– Negotiation

Knowing these differences will give you clear

expectations—and help you get what you want!

Rules – Price

Traditional

• Seller motivation and emotion play a big part

REO

• Priced to sell by institutions with no emotional stake

Short Sale

• Priced by listing agent and owner; bank must agree to this price

Rules – Speed

Traditional

• Normally proceed with all due haste

REO

• Offers get quick reply

• Last-minute closing delays common

Short Sale

• Slow offer response

• Acceptance brings fast close

Rules – Decision-Making

Traditional

• Homeowner/seller decides

REO

• Bank or lender decides

Short Sale

• Seller decides what offer to accept; lender must approve

Rules – Communication

Traditional

• Good communication expected but not always practiced

REO and Short Sale

• Banks, listing agents pressured by volume—hard to reach

• Buyers must insist on—and provide—great communication

Rules – Negotiation

Traditional

• Negotiation common on price, condition, and terms

REO and Short Sale

• Some negotiation possible with Fannie Mae REOs

• Short sale negotiation rare—properties sold “as is”

Seize the Opportunity

Six Realities Define Your Opportunity1. Buyer’s market—capture value now!

2. Mortgage rates are great, but for how long?

3. Affordability—home buyer dollars going further

4. Number of foreclosures remains high

5. Foreclosure inventory nearing peak

6. All parties motivated to sell

Percentage of buyers who bought distressed property tripled from 2008 to 2009.

Six Realities1. Buyer’s Market—Capture Value Now

BalancedMarketInventory(6 months)

Six Realities2. Mortgage Rates Are Great, But

for How Long?

75% of distressed property buyers say low rates are their prime motivator.*

Sources: Mortgage Bankers Assn./KW DP Buying Survey*

Current Rate:5.00%

Six Realities

3. Affordability Strong—Home Buyer DollarsGoing Further Now

Cost of home ownership headed down.

Median-priced home monthly cost is about 15% of median income; this is down from 23% three years ago.

How long will this last?

Six Realities4. Number of Foreclosures Remains High

Source: KWDistressedProperty Buying Survey

Our State: Foreclosure Percentage

Source:RealtyTrac

Our Local Market:Traditional vs. Foreclosed Available

0

5

10

15

20

25

30

35

40

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Traditional

Foreclosed

Our Local Market:Traditional vs. Foreclosed Sold

0

5

10

15

20

25

30

35

40

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Traditional

Foreclosed

Six Realities5. There’s Still Time—

But Mortgage Rate Re-Set Peak is Near

Mortgages resetting to higher rates are a big driver of foreclosures.

Mortgage reset volume will top out in late 2010.

Source: Credit Suisse Bank

Six Realities

6. All Parties Motivated to Sell– Distressed homeowners—protect credit and

escape payments– Lenders—get foreclosed property off their

books – Agents—investing time and money in inventory;

their clients need it sold +

Your motivation to get a great dealmeans a win-win for all.

What’s Stopping You?

What have you heard that concerns you about buying?

Ignore the Myths

1. Myth: Foreclosures are mostly low-end, in poor condition, and in bad areas.

2. Myth: Foreclosures have lots of title problems including liens.

Ignore the Myths

3. Myth: The best foreclosures get soldin bidding wars.

4. Myth: Loans are hard to get for foreclosures.

Ignore the Myths

5. Myth: Foreclosures take along time to close and aren’t worth the wait.

6. Myth: The best opportunities havealready been snapped up.

Buyer’s Success Story

• Buyer who closed

• Deal they got

• Experience they had

• What they say they learned

Be Ready to Go

1. Motivation

+

2. Preapproval

+

3. Expert Advice

= Success

Be Ready to Go

1. Strong Motivation

Know your “Big Why”

Have criteria set and be prepared tomake decisions.

Be ready to communicate clearly at all times.

Be Ready to Go

2. Preapproved Wallet

Whether all cash or financed, solid buyers are the winners in this market.

Be Ready to Go

3. Expert Distressed Property Agent on Your Team

In this market, more than ever, you need great representation!

Quality advice counts.

Build a Strong Team

A strong team that communicates well will get a winning result.

Combine your wants and needs with local expert knowledge and experience.

Here’s how we’ll work together …

Let’s Get Started—Now Is the Time

What Questions Can I Answer?

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