Working the Numbers – Why Your Knowledge of Financing is Now Key to Selling Homes
By Anne M. Gardner, RCE, CAE
Vice President, NVAR Education and Business Specialties
With recent headlines striking fear in the hearts of the most hopeful home buyers, today’s agent is in a position to offer advice about both the home purchase and its financing. During the frenzy of the last market cycle, a majority of agents avoided getting involved in financing discussions. The plethora of exotic and complex loan products that were on the market and the speed with which business was conducted kept most agents out of the lending loop. Fast forward to today’s market and the story has changed dramatically. Agents are once again needed to assist buyers in interpreting financing options for. How do agents get up to speed after sitting on the sidelines for so long?
Start by attending a special event created as a reintroduction for members to financial services professionals at NVAR! This special networking and education event, hosted by our Real Estate Finance Forum will take place February 19 at NVAR’s Fairfax headquarters. This gathering is the first in a series of education events aimed at getting agents back in step with lenders and up-to-speed on the intricacies of today’s lending environment.
With the introduction of two new training sessions this winter, NVAR is working to ‘close the gap’ for Realtors® who need to improve their understanding of the realities of today’s lending market. The courses were developed in a workshop format, and are intended for small groups to allow agents an opportunity to gain an in-depth understanding of current market options.
The first class in the new series is, “The New Rules of Real Estate Finance,” which will debut on Thursday, February 19 at NVAR’s Fairfax headquarters. Written and taught by Kevin Connelly, our 2007-2008 Real Estate Finance Forum Chairman and former NVAR Affiliate of the Year, the course is a hands-on opportunity for agents to take pencil to paper and cover such topics as pre-qualifying, credit scoring and other essentials.
“Agents who are not taking steps to re-educate themselves on today’s finance climate are in danger of eclipsing themselves from transactions,” says Connelly, Vice President at BB&T Mortgage in Arlington, and a 25-year veteran of the Washington-area mortgage industry.
In coming months, NVAR School of Real Estate will introduce a second essential course, this one highlighting the new uses of the FHA 203(k) loan. Called “Renovation Financing,” this loan is currently utilized by purchasers of foreclosed/ REO properties that are in need of repairs.
“This is an old program, but one that is going to be important in the coming year,”says Fred Bowers, Vice President with Intercoastal Mortgage and an NVAR Real Estate Finance Forum member. Bowers sees much potential for the loan program in the Washington market in the next two years. “As agents work to sell homes in need of significant repairs,” Bowers says, “this loan will fill the gaps for buyers wary of taking on the problems inherent with abandoned and foreclosed properties purchased at ‘fire sale’ prices.”
Ensure your place as a trusted and knowledgeable advisor for your clients by taking steps to enhance your knowledge of real estate financing. To learn more about these new offerings and the Real Estate Finance Forum, contact NVAR Education at 703.207.3244 or email registrations@nvar.com.