1. Know Your Buyers Tuesday July 28, 2009

2. Topics To Be Covered Twilight Open Houses Twilight Open Houses DRE License Number DRE License Number Lending-Waiting Period Lending-Waiting Period Buyers Survey Buyers Survey

3. Twilight Open Houses For the next 30 days, try sitting between the hours of 3:00 to 7:30pm. For the next 30 days, try sitting between the hours of 3:00 to 7:30pm. Avoid the heat Avoid the heat Little or no competition after 5:00. Little or no competition after 5:00.

4. DRE License Number Must be on ALL solicitation materials Must be on ALL solicitation materials Including, but not limited to the following: –Business Cards –Stationary –Websites –Promotional and Advertising Flyers, Brochures, Email & Regular Mail, and any other marketing or promotional materials designed for solicitation.

5. DRE License Number Exemptions: Exemptions: –Print Advertising in the News Paper –For Sale Signs placed on or around the property –Advertisements in electronic media including radio, cinema and TV ads.

6. Lending-Waiting Period Regulators require lenders to provide borrowers with initial disclosures of estimated costs. Regulators require lenders to provide borrowers with initial disclosures of estimated costs. Lenders are prohibited from collecting fees until borrower has been given loan cost disclosures. Lenders are prohibited from collecting fees until borrower has been given loan cost disclosures.

7. Lending-Waiting Period New Rules require a 7 day waiting period after borrowers receive disclosures. New Rules require a 7 day waiting period after borrowers receive disclosures. If loan costs increase more than 1/8 of 1%, the lender is required to re-disclose, and the borrower has another 7 days to consider the transaction. If loan costs increase more than 1/8 of 1%, the lender is required to re-disclose, and the borrower has another 7 days to consider the transaction.

8. Lending-Waiting Period Main reason for Changes: Main reason for Changes: –Closing dates will be more closely tied to lender and agents accurate estimates in costs and rates. –Purpose of the rule changes are to afford consumers better access to and more time to consider key elements of a major financial transaction.

9. C.A.R. Buyer Survey Number of Sales increased 27% in 2008. Number of Sales increased 27% in 2008. Number of Sales are projected to increase another 25% in 2009. Number of Sales are projected to increase another 25% in 2009. 49% of buyers bought thru a regular sale. 49% of buyers bought thru a regular sale. 38% bought an R.E.O 38% bought an R.E.O 13% bought a Short Sale. 13% bought a Short Sale.

10. C.A.R. Buyer Survey Counties with huge number of distressed sales: Counties with huge number of distressed sales: –Riverside, Solano, San Bernadino, and Kern. –These counties had over 80% of home sales were distressed sales. –Also experienced high growth in sales.

11. C.A.R. Buyer Survey Homebuyers are optimistic about future direction of Home Prices. Homebuyers are optimistic about future direction of Home Prices. One in Three Buyers believe Prices will go up within five years. One in Three Buyers believe Prices will go up within five years. 60% of Buyers believed Prices would go up in ten years, and 37% were unsure about home prices. Only 3% thought Prices would go down or stay flat. 60% of Buyers believed Prices would go up in ten years, and 37% were unsure about home prices. Only 3% thought Prices would go down or stay flat.

12. C.A.R. Buyer Survey First-time Buyers doubled from 19% in 2008 to 38% in 2009. First-time Buyers doubled from 19% in 2008 to 38% in 2009. Statewide median home price has declined 60% from its peak. Statewide median home price has declined 60% from its peak. The unprecedented price decline has led to dramatic improvements in Affordability, currently at 69% - up from 46% a year ago. The unprecedented price decline has led to dramatic improvements in Affordability, currently at 69% - up from 46% a year ago.

13. C.A.R. Buyer Survey Level of Difficulty obtaining Financing: Level of Difficulty obtaining Financing: –Scale of 1-10, with “1” being “easy”, and “10” being “very difficult”. –Homebuyers on average had a level of difficulty in obtaining financing of 8.1. –27% responded with a “10”. –Those who bought an R.E.O. gave a rating of 8.9.

14. C.A.R. Buyer Survey Down Payments: Down Payments: –Home buyers on average put a down payment of 25.1% compared to 19.4% in 2008. –The average down payment for first time buyers increased to 19.7% in 2009.

15. C.A.R. Buyer Survey Financing: Financing: –7 of 10 home buyers used Fixed Rate Mortgages and 3 out of 10 used Adjustable Rate Mortgages. –1 of 10 first time buyers asked their relatives for financial assistance.

16. C.A.R. Buyer Survey Time With Buyers: Time With Buyers: –In general, home buyer devoted more time from start to finish on the home buying process. –On average, they spent 8.4 weeks considering buying a home in 2009 compared to 7.2 weeks in 2008.

17. C.A.R. Buyer Survey Time With Buyers: Time With Buyers: –6.6 weeks investigating neighborhoods before contacting an agent, compared to 6.2 weeks in 2008. –10.3 weeks searching for a home with their agent compared to 8.7 weeks in 2008. –Internet buyers spent more time upfront on their own, but less time with their agents.

18. C.A.R. Buyer Survey Internet vs. Traditional: Internet vs. Traditional: –Internet buyers on average visited 13.6 homes with their agent. –Traditional buyers visited 25 homes. –Only 13% of all home buyers looked at News Paper/Magazine ads to search for a home. –84% of homebuyers used the internet as a significant part of the home selection process.

19. C.A.R. Buyer Survey Internet Buyers: Internet Buyers: –94% strongly agreed that using the internet helped them better understand the home buying process. –92% strongly agree that the internet helped them understand home values better. –62% strongly agreed that the internet helped increase their appreciation for what real estate agents do.

20. C.A.R. Buyer Survey Online Tools: Online Tools: –Multiple pictures –Virtual Tours –Neighborhood Profile –Map/directions has dropped in popularity

21. C.A.R. Buyer Survey Real Estate Websites: Real Estate Websites: –Realtor.com-visited by 89% of home buyers. –Real Estate Company website-visited by 81% of home buyers. –Individual Real Estate Agents Site-visited by 66% of home buyers. –Zillow-visited by 55% of home buyers. –Yahoo Real Esate-visited by 53% of home buyers. –Cragslist-visited by 49% of home buyers.

22. C.A.R. Buyer Survey Internet As A Threat? Internet As A Threat? –Less than 10% of internet buyers felt that the information that they gathered online was as useful as that provide by their agent. –None of them said the information collected was more useful than that provided by their agent.

23. C.A.R. Buyer Survey Agent Selection Process: Agent Selection Process: –62% of all buyers in 2009 interviews at least three agents before settling on one, a sharp increase from 40% in 2008. –Internet buyers interviewed fewer agents than traditional buyers. –More than 1 out of 10 buyers will Google the agent before finally selecting who they want to work with.

24. C.A.R. Buyer Survey Agent Selection Process: Agent Selection Process: –23% selected their agent because he/she understood how to purchase Foreclosures, Short Sales or Distressed Sales. –22% made their selection because agent seemed to be most responsive. –21% selected their agent because he/she seemed to be able to negotiate the best.

25. C.A.R. Buyer Survey Response Times: Response Times: –67% expected a response from their agent within one hour or less. –98% expect at least a same day response.

26. C.A.R. Buyer Survey Buyers Satisfaction With Agent: Buyers Satisfaction With Agent: –73% said their agent always quick to respond. –61% said their agent negotiated a good deal on their behalf.

27. C.A.R. Buyer Survey Buyers Dissatisfaction With Agent: Buyers Dissatisfaction With Agent: –82% said their agent did not negotiate aggressively. –18% said their agent was too slow to respond. –Home buyers who had their escrow close on time has steadily dropped from 55% in 2006 to 37% in 2009.

28. C.A.R. Buyer Survey Home Buyers Advice To Agents: Home Buyers Advice To Agents: –Improve the speed of communication. –Provide references for lenders who perform. –Become more knowledgeable on REO’s and other distressed properties. –Demonstrate to the buyer how the agent is negotiating aggressively. –Provide references for lenders to recommend the best product for the buyer.

29. C.A.R. Buyer Survey Home Buyer Satisfaction With Agent: Home Buyer Satisfaction With Agent: –64% would use the same agent again in the future, a slight increase from 61% in 2008.

30. C.A.R. Buyer Survey How Long Will They Stay? How Long Will They Stay? –77% plan on staying at their current home 37 to 60 months. –The median is 48 months. –0% said they would stay longer than 60 months.

31. Thanks for being the best agents in America!