Public Affairs Update

June 30 Closing Date Remains Unchanged
The Senate has adopted Senator Harry Reid’s (D-NV) amendment to the pending jobs and extenders legislation (HR 4213) that would extend the closing date for the homebuyer tax credit from June 30, 2010 to September 30, 2010. The amendment would apply only to purchasers who have satisfied the April 30 binding contract rule for the $8,000 and $6,500 tax credits. The amendment creates no new eligibility for the credit. The provision is now part of HR 4213, the pending Jobs/Loophole Closer bill. Passage of HR 4213 requires 60 votes. Three efforts to achieve the 60 votes have failed.

Even if the bill can secure the necessary 60 votes, several more votes will be required in the Senate. The bill then returns to the House. There is no guarantee that the House would adopt the Senate amendment.

The extension could be offered to another bill that includes tax provisions. The Senate will be considering a small business bill that includes tax provisions during the week of June 28. NAR continues to aggressively push House and Senate leadership to extend the date. | MORE INFO

FHA Fee Increase Needed to Shore Up Stability
Information is circulating on the Internet questioning the rationale of House-passed legislation authorizing FHA to improve its financial stability by increasing the monthly mortgage insurance premium. The premium would increase to .85 percent from .55 percent. FHA is seeking the increase so it can decrease the upfront premium it charges borrowers, which is 2.25 percent of the loan amount.

The increase in the monthly premium will rebuild FHA reserves faster than it otherwise could, and lowering the upfront premium will provide home owners with greater equity. NAR supports the FHA change and estimates that on average it will increase monthly payments by $33. The Senate still must act on the measure. | MORE INFO

Applications for HUD-Owned Listing Brokers Invited
HUD announced that PEMCO is the managing and marketing contractor for selling HUD-owned properties. The company will be accepting applications through July 5 from real estate brokerages to be listed as “HUD local listing brokers.” For more info, contact Jerome Nagy, jnagy@realtors.org.

Source: National Association of REALTORS®

Well the market has been pretty steady for the agents here at Lakeplace.com in our new Crosslake office. I am so proud of all our agents for doing such a great job and putting in all the extra hours needed to get a new system built and implemented to a point where it is running pretty smooth overall. These agents are amazing.. the willingness to share new ideas and think outside the box have been such an asset for our young company.  I just wanted to take this opportunity to express my thanks to all of you who have made my time here at Lakeplace.com such a great experience on both a professional and personal level. Thanks for all the support and guidance – I have learned so much and will really really enjoy working with you.

Never be afraid to try something new. Remember, amateurs built the ark. Professionals built the Titanic.

Virtually everyone in Real Estate sales here in the Brainerd Lakes area is required to negotiate. After conducting and attending several workshops and working with scores of agents during the last decade, I have discovered that most real estate sales people are not as effective at negotiating as they could be.

However, I do come across great real estate sales negotiators (Clint Nelson Positive Realty) from time-to-time and have noticed that they typically have a few things in common. Here are the characteristics they usually possess.

Understanding of the negotiating process.

Highly effective negotiators recognize that negotiating is a process, not just something that is done when discussing the terms and conditions of a sales or listing contract. Negotiating is much more than haggling about price. It requires an understanding of the dynamics that affect the process and influence the behavior of the buyers and sellers involved. Great negotiators invest time learning different tactics and strategies and how each technique contributes to the overall outcome.

Focus on win-win.

Win-win means that both parties feel good about the outcome of the negotiating process. Some agents state win-win solutions are not possible in business negotiating; I contend that someone usually gives away more than they should and the outcome becomes a win-lose situation. Great negotiators don’t believe that. They help their clients try and solve problems and look for opportunities to give as much value as possible. They also know how and when to limit their concessions, give-aways, and discounts so they can work out an agreement that is equitable for both parties.

Patience.

Too many people search for the quick fix try to close the sale as fast as possible so they can move on the next one. Great sales negotiators recognize that patience is a virtue and that rushing the process often leads to an undesirable outcome. They don’t hurry to reach an agreement. Instead, they take time to gather the necessary information. They think carefully about possible solutions. They take their time during the entire process. This is critical because major mistakes are made when we try to reach an agreement too quickly. We rush through the process, not giving the other person’s offer ample attention, and often end up with an outcome that is win-lose. Simply because we were in a hurry.

Creativity.

Most great negotiators are also very creative. They use their problem-solving skills to determine the best solution and look for unique ways to achieve their goal.

Willingness to experiment.

Negotiating is a very dynamic process because no two agents are alike. What works extremely well in one situation can backfire in another. That’s why great negotiators practise using a variety of concepts and techniques. They experiment with different strategies, solutions, and tactics. And a small failure does not prevent them from experimenting with new ideas in the future.
Confidence.

Great negotiators are confident when they enter a negotiation. They aren’t arrogant or rude or cocky–they are simply confident. They have developed a high belief in their ability to reach an win-win agreement. They are confident that they can handle anything that comes their way in a negotiation and this confidence is developed through experience. Great negotiators evaluate themselves regularly. They learn from their mistakes and victories. They focus on improving their skill. They develop an internal confidence that is unshakable.

Keen listening skills.

People will tell you virtually everything you need to know if you ask the right questions AND listen carefully to their answers. I personally believe that this one attribute is the most important skill in selling and negotiating real estate contracts.

Negotiating is not a skill that is easily acquired. It takes time, effort and energy. If you want to improve your negotiating ability you must be ready to work at it. Invest the time learning the dynamics and science of negotiating. And be prepared to push yourself out of your comfort zone.