Dan Polimino

As you know, a lot of Realtors these days are utilizing social networking to get the message out about a home that they are trying to sell on behalf of their client. Consumers are posting their homes on Craig’s list and Zillow in hopes of attracting a buyer. They post the home information week after week on their profiles, but they never seem to get a lead and or inquiry. Shortly thereafter, they abandon the process and tell everyone that social networking didn’t work for them and you know what, they’re right.

The reason they are right is because they are doing it wrong. They have missed the point of the entire platform and how it works. According to Webster’s dictionary, the term “social” means, “of or relating to human society, the interaction of the individual and the group, or the welfare of human beings as members of society.” The key term in that whole thing is interaction. You cannot just post material day after day on social networking sites and never interact with other people. You need to comment on their posts, their home listings, their pictures, their comments, and their games. When you do that, you start a dialogue. The dialogue turns into a conversation and the conversation may turn into a friendship. Once you make friends then you can do deal! I’ll say that again in case you missed it. You need to make friends first and then that gives you the opportunity to do deals like sell a home. If you follow that rule about making friends first, then you’ll finally see results from social networking. This rule applies to any business and not just real estate.

I was recently consulting a non-profit group on internet and social marketing. They thought that they could spend $1500 a month on internet marketing and see a direct P&L result of say $3000 a month. Social networking doesn’t work that way. It’s not a cash machine where the standard profit and loss balance sheet applies. Here is what I told the nonprofit on what they could expect if they embark on an internet social media campaign:

“The most likely scenario to see a return on your investment will be in the form of relationships. You will broadcast a message and make yourself known to thousands of people every day (which is 100 times more than what you are doing now with a passive website). Out of that, conversations will happen, relationships are made, databases are formed, and followers ensue. Over time, those relationships will become stronger and leads to visits to the Ranch and that will lead to someone stepping up making a one-time gift donation of say $10,000. Then a second person will step up with a one-time gift and so on and so on.”

That’s the way social networking makes things happen. So stop posting information about homes; start conversations or provide value added information that start conversations. Make a friend and do a deal.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost

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http://www.coloradodreamhouse.com/index.php/news/ The next four weeks are going to be slow in Colorado Real Estate as kids get ready to go back to school and parents try to get back into their normal routines. The good news is the second selling season from September 15^th through November 15^th is right around corner. That’s the second best time to sell a home in Colorado. What does the next four weeks mean for buyers and sellers? To find out watch this week’s market update with Fuller Sotheby’s International Realty agent Dan Polimino.

Effective October 4th, 2010, FHA will lower the upfront mortgage insurance premium (MIP) and raise the annual mortgage premium. Upfront MIP will decrease from 2.25% of the loan amount to 1 percent. The annual mortgage insurance premium, paid monthly on FHA loans over 15 years, will change from 55 basis points to 85 or 90 basis points.  The reason for the change is to prop up the FHA Mutual Mortgage Insurance Fund which is “running on fumes” and needs to be gassed up.

Under the current rules a $200,000 loan has a $4,500 upfront MIP and a monthly premium of $91.67. Currently the monthly MIP is computed by taking the loan balance of $200,000 multiplying by 0.0055 and dividing by 12. The good news under the new rules is that the upfront MIP will decrease by $2,500, however the monthly MIP will increase by $60 or $70; an annual increase of $720-$840 per year. It is not known at this point if borrower’s who wish to refinance an existing FHA mortgage will receive a credit towards the upfront MIP on a new mortgage.

Is it better to wait or go forward now?  As always, have your mortgage consultant do the math to see what best suits you. The logic of reducing upfront fees and increasing monthly fees, when there is a pressing need to increase a reserve fund, escapes me.  It must be because I did not go to Harvard and have spent most of my life in the private sector.

Feel free to call or email with any questions or comments.

Next Week: New FHA program for borrowers with negative equity.

Best, Chip

Chip Allen

Crestline Mortgage Bankers

A Division of Universal Lending Corp

Direct: 303.947.2109

Fax: 303.987.0676

Loanchip@hotmail.com

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When people you care about need a mortgage,

for purchase or refinance, please do not keep me a secret.

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