CRChicago.com

Charles Rutenberg Realty is a firm built on the premise that it is the agent who brings in the business so it is the agent who should keep the commission earned. We can do that because we keep our expenses low so as to keep the commission paid to the agents high. One key way we keep our expenses low is by not providing a physical office for our agents to work out of on a daily basis. In our firm the agents computer is their office. We do this because the public no longer looks for their potential real estate agent in a physical office, they look for them online.

Well, we are not the only ones who know this is now the norm. A local Naperville real estate firm, one that had a very high profile physical office location, has elected to close that office. The reason? They acknowledge the consumer now does their search online and not in a physical office! This is what they said in their recent announcement:

“In years past, an office on the local street corner was the best way to reach our clients. Today, the “local street corner is on the Web” and it’s there that we are investing heavily in to promote our sellers to more buyers and our buyers to all the listings in the most advanced format possible.”

We have been saying the traditional firms would be coming to that realization for the last five years. We are pleased to see it is now becoming a reality.

Are you aware of this financial incentive available to new buyers?

Here is a brief overview prepared by DIGIOVINE HNILO JORDAN + JOHNSON LTD.
Solutions for Success.
www.dhjj.com:

■ For qualifying purchases of a “principal residence” within the U.S. made from January 1, 2009 and before
December 1, 2009.
■ The credit is the lesser of 10% of the purchase price or $8,000.
■ “First-time homebuyer” is any individual (if married, and their spouse) who is a US resident if they had no
ownership interest in a home during the three years previous to the day of the purchase.
■ Purchases from a relative do not qualify for the credit (sibling, parent, grandparent, aunt or uncle).
■ “Purchase date” for homes under construction is the date of occupancy.
■ There is no repayment of the $8,000 credit as long as the home continues to be the taxpayer’s principal
residence for 36 months from the date of purchase. Exceptions to this are death, divorce settlement or
involuntary conversion.
■ The credit also does not apply if the taxpayer’s financing is from
proceeds of tax-exempt mortgage revenue bonds or if the District of
Columbia homebuyer credit is taken for the tax year the residence is
purchased.
■ The credit phases out for taxpayers with modified adjusted gross
incomes between $75,000 and $95,000 ($150,000 – $170,000 for joint
filers).
■ This is a “refundable” tax credit (which means it can be used to
offset your tax liability with any remaining credit refunded).

How to obtain the credit:

• The credit can be claimed on either the 2008 or 2009 tax return.
• Note: If the 2008 tax credit is limited because of income
  limitations, taxpayers will need to consider both years to determine
  which year to take the credit for the greatest benefit.
• Any first-time homebuyers who believe they are eligible for all or
  part of the credit can modify their income tax withholding (through
  their employers) or adjust their quarterly estimated tax payments in
  order to reap the benefits prior to the filing of their tax return.
• Note: On May 29, 2009, HUD announced that individuals will be able
  to secure short-term bridge loans to apply the first-time homebuyer
  credit to their down payment. The home buyer must be using an FHA
  approved loan. The tax credit can generally not be used to meet the
  3.5% minimum down payment required by the FHA.

For more information, please visit www.dhjj.com or call Kara Bourbon at 630-420-1360.

Last week Charles Rutenberg Realty closed on a million dollar plus home sale. Many were surprised because homes in that price range weren’t supposed to be selling. There were hundreds of similarly priced homes on the market in Naperville so what made the difference? Why did this home sell?

The two key reasons this home sold are 1). It was priced right for the market and, 2) we featured what this home had that others didn’t. In doing our research we found almost all other similarly priced homes in the immediate market were situated on standard small residential lots. The homes were magnificent but there was no land. Our property was not only magnificent, it sat on over one acre and the views to the rear showed no other structure, The feeling was one of being out in the country even though it was only 8 minutes from downtown Naperville.

Once we focused our marketing on this unique feature, (our USP, unique seling proposition) we secured a firm contract with no contingencies. The buyer wanted land in Naperville and we had the best combination of magnificent house, spacious land and proper pricing. Suddenly, selling in today’s market didn’t seem so difficult.

Reading Crain’s today, the front page says “Home Sales Show Spark”. Perhaps buyers are starting to realize that it doesn’t make sense to wait if they are ready to buy a home. Interest rates are so low it is unlikely they will go lower and, if rates go up, it will make the effective price of their home higher since their payment is higher.

An interesting relationship between rates and prices is that at a 5% rate, if rates move by one percentage point (100 basis points) it is effectively the same as the price moving 10% or more! Thus, even if there is a possibility that prices may drop a bit more, it is highly likely interest rates will soon begin to move up. Waiting for a better price may effectively result in a worse deal! Plus, the home the buyer wants will likely be gone if they wait for the bottom, wherever that might be. All in all, the prudent buyer will take the steps necessary to secure the home of their choice today, while the selection and the interest rates are to their advantage.

I just got back from a trip to southern California. Their properties have seen dramatic adjustments in the last year and are projected to drop another 25% this year. In contrast our prices in the Chicago area have proven to be rather resilient. Even though individual home prices are dropping, both MLS statistics and Charles Rutenberg Realty sales records show that the average sales price in our markets have held even. While there are numerous anecdotal stories about sales at big discounts, the statistics don’t show that for the overall market. This continues to be a great time for a buyer to get into the market, especially if they qualify for the first time buyer tax credit.

We now have a new president. In his speech, President Obama stated we all need to take personal responsibilty to effect change. As Realtors, it is up to us to create our own success. We can do that through marketing.

One of the main reasons Charles Rutenberg Realty has, in under 5 years grown to be 20th largest real estate company in the Chicago area and the largest to offer 100% commission, is the mailing of our marketing flyer to over 30,000 area real estate agents on a regular basis. Direct mail works if it is done on a regular basis. You can carve out your niche as the local market expert through the use of consistent direct mail.

While postcards are the most common tool used in direct mail marketing, there are a number of options to choose from should you decide to start a consistent direct mail campaign. Remember though, it is the regularity that creates the impact. It is always better to send fewer pieces more often than to send a large number only once or a few of times.

Best wishes for a successful business this year.

Ray Zabielski

As we finish up 2008 it is useful to look back on what just happened in order to plan for the future. The Swanepoel Trends Report has done just that and will be released in early 2009. The following is a sneak preview of some of the reported findings.

Ray

THE TOP 10 EVENTS THAT IMPACTED REAL ESTATE IN 2008
(A Sneak Peek into the 2009 edition of the Swanepoel TRENDS Report)

As part of the annual Swanepoel TRENDS Report that is published every year during the first week of February, the research team wraps up their four month study of the real estate industry by announcing the top 10 Newsmakers, Events and Trendsetters for the year.

Events are defined as those occurrences that transpired during the previous calendar year (2008) that made headlines and captured the attention of the real estate industry. The selection of these events was based upon their potential future impact on the industry rather than only their 2008 impact.

The Top 10 Events That Impacted Real Estate in 2008 are:

1. The Bailout: September 17th

Most notably, the one single event of the year was the announcement of the “Silver Bullet” designed to save the country from the subprime collapse itself and the failure/buyout of major Wall Street firms and national banks. Depending upon how effectively the Emergency Economic Stabilization Act’s $700 billion is going to be allocated and managed it may prove to be the beginning of the turning point in the current economic recession.

2. The Presidential Election

In one of the most competitive, contentious, divisive and yet historic political campaigns, the country responded with the largest voter turnout in history to elect an African American, Barak Obama as president.  “I have a dream” has taken a huge step toward fulfillment. However, the new administration will have little time to reflect on victory as it faces serious economic challenges and a trillion dollar plus debt that will take years to resolve.

3. In Memory Of: Countrywide, IndyMac, WAMU, Wachovia And Others

Barely one year ago in 2007 these companies were not only household names but were considered financial giants. In one short year they have become a factoid of history. Some filed for bankruptcy while others were acquired by the likes of Bank of America, the federal government, J.P. Morgan Chase and Wells Fargo. 2008 reminded us that nothing lasts forever and everything is replaceable.

4. Facing Foreclosure Frenzy

As a direct fallout of the subprime collapse, the foreclosure rate in the U.S. hit staggering levels in 2008. At the opening of the third quarter foreclosures were up 25% over the previous October with a reported one in every 452 of the country’s homes in foreclosure. RealtyTrac reported last October that there was a sharp decline in foreclosure filings but it still estimated that, by the end of 2008, there would be more than one million REOs on the books.

5. Home Prices Spiral Downward

The recession devastated many real estate markets across the country with the worst-performing towns and cities in places like central California, Miami and Las Vegas posting declines of 40% in 2008. The stranglehold on financing continued to drive home prices in many other places back to 2000 – 2002 levels, with predictions of continued declines in 2009 as unemployment reaches record highs and the financial meltdown spills over to other industries.

6. NAR – DOJ Settlement

Finally the long and protracted 2.5 year legal battle between NAR and the Department of Justice (DOJ) was put to rest as Judge Kennelly issued his final judgment in November. In the end, NAR’s longstanding Internet Data Exchange (IDX) policy was validated as NAR was deemed to have not admitted any liability or wrongdoing and no payments were made in conjunction with the settlement. In addition, NAR has been cleared to reinstate an updated version of its Virtual Office Website (VOW) and the MLS has been preserved and strengthened in the process. Now it’s back to business.

7. Brokers Go Bust

Changing names, merging, consolidating, filing bankruptcy and closing branches was the order of the day throughout 2008 as literally thousands of real estate brokerage companies went out of business. This included many independents as well as franchises from just about every major brand including Century 21, EXIT and RE/MAX. Also filing for bankruptcy is national franchise Help-U-Sell and Web 2.0 newcomers such as Igglo. 2009 may see even more brokers closing up shop than 2008.

8. Keeping It Short

Founded in 2006, Twitter moved into the mainstream this year as the next evolution in the social networking and micro-blogging environment. By using short text-based posts (affectionately named “tweets”), staying in touch has been given a whole new meaning.

9. ActiveRain Explodes Past 100,000 Members

As we discussed in last year’s report (Trend #1 – Two Worlds; One Industry) ActiveRain has moved to the head of the social networking line in the real estate industry. With as many as 35,000 users logged on at the same time, no one else has even come close to reaching that many Realtors® at one time. It goes without saying that ActiveRain has proven that social networking has made a home in real estate.

10. NAR Celebrates 100 Years

In May 1908, 120 men gathered in Chicago with the goal to “unite the real estate men of America.” Today the National Association of REALTORS® (NAR) is America’s largest trade association representing more than 1.2 million members. For 100 years, NAR and its members have established homeownership as a cornerstone of the American Dream.

Nobody should be allowed to make any important business decision without reading this amazing report first!

For more information on the 2009 edition of the Swanepoel TRENDS Report visit www.retrends.com. This annual Report of approximately 170 pages is authored by Stefan Swanepoel and is widely recognized as the most comprehensive report analyzing trends in real estate.

Here is what industry leaders have to say about the Swanepoel Trends Report:

“… industry’s premier report …”
Lennox Scott, CEO John L Scott Real Estate

“… truly understands the vast ecosystem of residential real estate… ”
Stephen Roney, CEO MarketLinx

“… primary external source document for our strategic planning… ”
John Beardon, CEO GMAC Real Estate

“… best single-source reference available… ”
Mark Palmero L’Boe, CEO, Compass Realty Systems

” …your insight into the real estate market is legendary and well deserved… ”
Paul J. Wells, Broker Owner, RE/MAX Northern Illinois

As we enter the holiday season this year, we are all experiencing the effects of a very challenged economy. The good news we can build on is the knowledge that there is commitment to and a unified effort by all parties to address the challenges in our country and around the world. As we look forward to opportunities to address in 2009, all of us at Charles Rutenberg Realty would like to wish you and your family the best for the holidays.

One of the key things we look to do at Charles Rutenberg Realty is to find tools that help our agents do deals. Since it is only through completing transactions that any of us get paid, it is in our best interest that our agents succeed in their real estate business.

One new tool that was just released to our agents is the ability for them to complete property booklets and flyers for their properties. They can create flyers and booklets of up to 10 pages without cost through willowtreemarketing.com Details on accessing the system are under the Marketing section of the agent office site. The following is a comment from Emma Pawlik, one of our agents who is very pleased to have this new tool available to her. If you are not an agent with CRR, but would like to consider joining, please give me a call at 630-929-5410.

Ray Zabielski, Managing Broker

Hi Ray,

I hope all is well.
Just wanted to send you a quick note and say THANK YOU!!!!
It’s truly amazing to work for a company who’s broker is continuing to search for new products and makes them available to his agents. You’re really terrific!!!!.

I took advantage of WillowTree to create a booklet for a property I will be listing on Monday and it came out amazing, took just a few minutes to create (and when i ran into a problem i had sent an email and received a phone call as follow up from Susan who was extremely helpful) I had sent the pdf file over to my local singarama for printing and I know my clients will be blown away. What a great service!!!! But again one of many amazing tools our company offers. I hope you will get positive feedback and will keep this service for years to come. Thank you again so much!!!!!

I will be also taking advantage of your other find eproperties how Fabulous are they.
I will be thinking twice about my visualtour monthly subscription of 29.99 when I can get a personal website for each of my listings – how awesome is that.

Well I suppose I could go on and on about this but bottom line is THANKS SO MUCH!!!
For always being on top of the newest and coolest tools and for always being there for us.
I think it’s nice to be reminded that you are TRULY greatly appreciated!!!!!

Emma

Wow, what a time we are in right now!

Real estate deals are at a premium and, when they go to closing, sometimes the funds aren’t available from the lender. If you find that you are working harder and making less than you deserve, make sure you are at least paid the proper amount for your efforts.  We believe the agent should receive the commission and the company is paid a fee for providing the structure for the agent to build his or her business around. If you agree, we’d love to have you check us out at http://www.BestChoice.us

Ray Zabielski, Managing Broker