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Buying a home vs investing in the stock market. Tell the stock gurus to take a hike!

JimCramerMad

"I double dare you to buy a house right now!" Do you think these guys have an agenda? 

It's high time we told buyers (and sellers, for that matter) the truth about whether a home is a good investment.

Despite what Wall Street wants you to believe and our 'bad news media', owning a home isn't the same kind of investment as stocks or bonds. What you get is a USE asset that depreciates over time while it grows in market value. All you have to do is keep the home in good repair to maximize your investment.

Here are five reasons why you get more for your money with a house than the stock market:

1. Leverage. With stocks, you put in all your money for a little piece of a company. With a house, you put in a little money to get the entire house.

2. Tax benefits. Uncle Sam knows that owning a home is a pain in the neck; that's why you get tax incentives. These are basically government bribes to get you to buy.

Think about it, with what other investment can you put in 5 percent of the cost of the asset, reap all the appreciation, and pay no capital gains? That's right: live in your home for at least two years, and you don't have to pay capital gains tax on up to $250,000 in appreciation if you're single and a combined $500,000 if you're a married couple.

And that's not all - consider the benefits of fixed-rate mortgages, property tax write-offs, interest rate deductions, and depreciation. Is this a great country or what?

3. Control. When you buy stocks, you're paying some CEO 500 times the average worker's salary for company performance that most other workers would lose their job over. With a home, you have control - what you buy, how much you pay, and where you live. You can improve the value with repairs and updates. Try comparing that to getting heard at the next shareholders' meeting!

4. Lifestyle. Do you want to look at a concrete jungle or your children playing in your own back yard? With a home, you're purchasing a vantage point for yourself and your family. The neighborhood you want to be in, and the size and style of a home that fits your needs.

5. Value. Unlike some stocks, your house will seldom become worthless. Barring a catastrophe, your home will retain a major portion of its value, even in the worst of times. So don't freak out about slight fluctuations in the value of your home in any given year. You'll make it up. Housing has lost value only one year out of the last 35. It's more normal to beat inflation by 1 percent to 2 percent.

Take Stock in This
So let's add a little perspective here. You lost a greater percentage on the stock market this past year than if you owned a house. You lost more on your SUV. And you sure lost more on your iPhone.

And keep this in mind: When it rains, which would you rather have over your head - a roof or a stock certificate?


One more time for good measure...REMEMBER TO CALL ME TO HELP YOU, ESPECIALLY FOR YOUR JUMBO BUYERS!  My Regional Manager said that our jumbo rates are kicking everybody's butts right now so be a hero and ask your buyers in the $417K+ loan range to let us give them a better deal than the competition.  We love to compete and we especially..   ...love those jumbos!

Sam Thompson,  PHH Mortgage

Senior Advisor - Helping you GROW your business!

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

3 comments • Sam Thompson • February 18 2008 11:35AM

It's Show Time!


 


 

RoySchieder

'Jaws' Police Chief Brody Roy Schieder  1932-2008   In Honor of Roy Schieder's passing last week, I thought it would be appropriate to talk about the open house. If you are my age you may have seen his 1979 movie "All That Jazz".  In this movie he uses this line over and over again;
 

"ITS SHOW TIME"

Everyone that attends an open house has a motive, be it buying or selling, but some of it is to find out more about you. They are looking to see if you are the agent they want to work with.  Let's face it, rarely does a prospect walk into an open house with their check book in hand and say "I want to make an offer".

Too many times, agents tell me that they just had a bunch of dummies come through their open house last weekend. Think about it, they aren't dummies, they are doing their homework.  They might have been looking for the value in using a real estate agent and hopefully, they thought more of you!

The good news is, if you are prepared and show them the value in using you, you will have a customer. Remember the Internet has changed businesses drastically.  Just look at stock brokers, before Etrade everybody used them to buy stocks. Did they all go out of business?  No, but some did. 

Before the Internet, buyers had to use real estate agents because there wasn't anyway to get information about a property without an MLS book.  But now they have Realtor.com and plenty of other online search engines.  You can no longer be an MLS book, use the open house to show them why you are valuable.  

When your open house lookers leave, you want them saying, "I really liked that Realtor and I am really glad we stopped by".  When they feel this way, they are going to think of you and will recommend you to others too, anytime they think of real estate.  

So, get out and dazzle so prospective buyers and always remember,

"IT'S  SHOW  TIME!"

Another line Roy made famous when they saw Jaws for the first time was, ''You're gonna need a bigger boat'' and this is going to be the case for your success too!

Sam Thompson,  PHH Mortgage

Senior Advisor - Helping you GROW your business!

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

 


   

0 comments • Sam Thompson • February 18 2008 11:30AM

Negotiations - The fun part of every real estate transaction!

 

 
CarterBeginSadat

Camp David Accords - Sadat, Carter, Begin
In successful negotiations, everybody wins!

Negotiations are the fun part of selling, right? 
Well, they can be if you know how.
 
In a past job as a Materials Manager, before I discovered the fun of outside sales, I was responsible for purchasing of all raw materials for a large manufacturing plant.  This was the fun part of the job.  It involved working with sales guys coming in to sell us their products or service and hammering out deals that saved money, improved quality, reduced inventory, etc.  There were always things to be negotiated and in the end, everybody won, most of the time.

In real estate, there are many ways to work the deal besides price as you know including the timing, repairs, leaving appliances, seller concessions, leaving the window treatments, etc.  By having a better understanding of how you can help facilitate the negotiations, you are going to close your deals better and faster so your clients refer you to all of their family and friends for years to come.

Here is a link to a ton of resources that you cut and paste into some good marketing material for your information that you can share with your clients as you see fit.  There is some FSBO related information too so use as you think you can to help your sales.
 
Click here: 
 
 
 
Sam Thompson,  PHH Mortgage

Senior Advisor - Helping you GROW your business!

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

 

 
 
 
0 comments • Sam Thompson • February 10 2008 10:32PM

Sharpen your weapons and go forth for a better chance of success!

  

 

  Sharpen your axe before you set out!


I love to watch that show on television called the "The Big Idea" that constantly pumps us to do something with our ideas.  They showcase young millionaires and get them to explain how they invented their widget and how they took it to market and they always get them to tell us how we can do it too.

Tonight, they had a success guru that had some good advice for all of us...

4 rules for success for your business

1. Don't make or accept excuses - take responsibility and learn from your mistakes
2. Think and plan strategically - do the right things consistently
3. Be patient but not complacent - work your plan
4. Lose your fear of failure - focus on success

Just having a good list to work on is not enough.  You have to take the time, every morning or evening to THINK about what you put on your list first!  Do the right things first, every day, every week, every month, every year.

And one more time in case you missed this last week... REMEMBER TO CALL ME TO HELP YOU, ESPECIALLY FOR YOUR JUMBO BUYERS!  My Regional Manager said that our jumbo rates are kicking everybody's butts right now so be a hero and ask your buyers in the $417K+ loan range to let us give them a better deal than the competition.  We love to compete and we especially...

 
…love those Jumbos!

 

Sam Thompson,  PHH Mortgage

Senior Advisor - Helping you GROW your business!

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

 

 

1 comment • Sam Thompson • February 07 2008 11:37PM

Weekly Tip - Make some sales calls this week to old prospects!

 

happycall

Make a past client happy with a quick call!

Considering the recent drop in rates and media hype on it, now's a great time to call any prospects that you were working with over the last several months that never followed through on a purchase or listing.

Call them and say that it's a good thing they put it off because now is a much better time to do it! 

For your sellers, the pitch can be that now is a better time to list than before because now, with the recent drop in rates to a 4 year low, many more buyers are starting to enter the market and now the new payments are going to be more attractive for them when they do.

If they still aren't ready, ask if they know anyone else you can call that might be considering a new home or selling their home!!  If still nothing, always end with, "well, please call me if you change your mind or if you hear of someone in the future and I'll do everything I can to help."

Let me help you with this so we all will be happy!  Just call me and  I'll help you get them excited with a quick pre-approval letter so you can close them and help them achieve the American Dream of homeownership!

The girl in the photo looks just as happy as I do everytime I get a call from a Realtor!  I love helping you and your buyers!
 
 

Sam Thompson,  PHH Mortgage

Senior Advisor - Helping you GROW your business!

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

 
0 comments • Sam Thompson • February 07 2008 11:23PM

The Fed is at it again but we need to help!!

  

fedratecutting

GENTLE BEN NEEDS OUR HELP!
Bernanke is trying to help but is running out of rates to cut!

Will he cut more?  If so, will the mortgage lending gods lower their rates too?

Those are 64 million dollar questions and the truth is that even he doesn't know what is going to happen but I am sure that he wishes that he doesn't have to cut more so...

Don't let your buyers worry over what the rates are going to do or they'll keep sitting on the fence and might never take the plunge.  Just sell them on the fact that rates are very attractive and the housing market is really priced right with many nice homes and great home values out there!  Get your buyers excited because if rates drop much lower, those home values are going to be gone!!  Let's help Ben and help get this housing market and economy going again with positive talk and practice good sales techniques and let's close on more homes.

You can also remind your buyers about our pre-purchase, rate protection and rate protection programs that allows them to protect their rate with the one-time float down option up until 5 days prior to closing!! 

Just ask them to call me and I will explain it to them for you.  It is the best way to go to eliminate the worry while taking advantage of what might go down in history as the best time to ever buy a home in the USA!

AND ESPECIALLY GET YOUR JUMBO BUYERS TO CALL ME!  My Regional Manager said that our jumbo rates are kicking everybody's butts right now so be a hero and ask your buyers in the $417K+ loan range to let us give them a better deal than the competition.  We love to compete and we especially...
 

...love those jumbos!

 

Sam Thompson,  PHH Mortgage

Senior Advisor - Helping you GROW your business!

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

 

 

 

 

0 comments • Sam Thompson • February 07 2008 11:22PM

Copy other successful agents. Learn from mentors and tweak for your style.

 

Working smarter, not harder is so important in any career, especially sales.  You have to constantly analyze what is working and what isn't and make changes accordingly. 

I recently listened to some material from Brian Tracy, a motivational speaker that drove this point home.  He explained how he struggled in several unsuccessful jobs until he started asking other successful people in his company what they were doing and then he just copied them.  

I have several mentors on my team that continually reach the top of the national rankings of my company and I talk to them often asking what they are doing and they are always eager to share.

Are you doing this too?  It takes just as much effort to be an average agent as it does to be a very successful agent so why not be that one?  Ask agents in your area and reach out to others in other markets and this can help you in establishing a new referral relationship too. 

One of the keys is your attitude and by keeping a positive one you are going to have more pep in your step and you are going to make that extra call or visit... and that positive feeling is going to come out and that is going to help your clients be more positive towards you too.

I have to be honest that my December and January were awful and I really went through some depressing days where I had to make some money fund moves to help with my cash flow but I am not going to let these slow months get me down.   I have some high aspirations for 2008 and I hope you do too! 

Sam Thompson,  PHH Mortgage

Senior Advisor - Helping you GROW your business!

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

 

 

0 comments • Sam Thompson • February 07 2008 11:21PM

Personal Sales Coaches

I hired a personal mortgage sales coach!  Just like the pro athletes have a professional coach to help them excel in their profession, I decided I needed a coach to help me in mine.   I have high aspirations for myself this year and took a leap of faith to help me with this because I am not satisfied with my current income level or lifestyle and starting in August, I am going to have 2 kids in college.  I know I can do better and decided that now was the time to start. 

Why am I telling you this?  Because I want you to know that I am doing everything I can to be a better Mortgage Advisor for you and your business.  This includes how I build rapport, how I push myself and my processors, how I manage my time and expenses and how I  communicate with my borrowers AND the realtors that I support.

Also, like everything I do, I thought the training would help me become better at helping you in your chosen profession.  So, if you will allow me, I want to share my training with you.  You can think of me as your personal coach if you want.  Just let me know if you want me to do some 1:1 coaching  and I'll share what I've learned with you so we can both excel this year! 
 

Sam Thompson,  PHH Mortgage Advisor - Helping you GROW your business!

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

 

 
 
0 comments • Sam Thompson • February 02 2008 10:44PM

New Cost vs Value Guide - Use to build more value in your cost!

 

 
 

housecalc

 
Getting back to basics by giving good sound advice to your sellers and buyers is a great way to build your business in this climate.  One good way to do that is to provide some great information to them into what they can do to improve the value of their property in terms of improving the "market value" vs the cost that they will incur. 
 
Here is a great link for your files to help you put together some good information for this purpose.  Another thing you can do is call your local appraiser for some tips that you can share with your clients or prospects.  Great for prospecting FSBOs too!
 
 
 
 

Sam Thompson,  PHH Mortgage Advisor - Helping you GROW your business!

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

 

 
 
 
 
0 comments • Sam Thompson • February 02 2008 10:42PM

Treat your customers like family! No badgering like these funny clips!

 


 
PHH Mortgage treats all customers like family!
 
Unlike the badgers out there on the web and in local mortgage offices, we take the time to review and educate all of our prospects on what they can do or need to do to get approved.
 
Don't send your buyers to badgers, let us help them! 
 
This is great advice for you too that you know very well, I'm sure.  By taking extra time with your buyers and treating them as nice as you can, the word will get around and soon, all of their family and friends will calling you to help them too.
 
Have you seen the badger clips from Hyundai?  These are so funny!  Click here to watch them now.
 
 
 
 
 

Sam Thompson,  PHH Mortgage Advisor - Helping you GROW your business!

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

 

 
 
 
 
 
 
 
 
 
0 comments • Sam Thompson • February 02 2008 10:40PM