The Senior Advantage Real Estate Council® presents: Developing And Maintaining
A Senior Market The Senior Advantage Real Estate Council® presents Not affiliated or endorsed by NAR Life. On your terms. ™
Mark Given Real Estate Seminars: Mark Given Real Estate Seminars Mark Given
ABR,CRS,GRI,SRES
P.O. Box 1460
Roanoke Rapids, NC 27870
252-536-1169
www.markgivenrealestate.com
markgiven@yahoo.com
2005 Iowa Statistics: 2005 Iowa Statistics The median price of a single-family home is $129,560
You had a 6% increase in home sales from 2004
Lowest median price – Centerville- $59,225
Highest median price – Iowa City - $168,400
Largest change in price – Storm Lake – 43%
Largest unit increase – Decorah – 116%
PLEASE!: PLEASE!
Please turn off your cell phones…….
Slide8: I Love taking this SRES Class with Mark
Projections of US Population Age 65 and Up in Georgia: Projections of US Population Age 65 and Up in Georgia 1995 – 718,000
2000 – 779,000
2005 – 852,000
2015 – 1,175,000
2025 – 1,668,000
Projections of US Population Age 65 and Up in Iowa: Projections of US Population Age 65 and Up in Iowa
2000 – # 4 in mature client population - 14.9%
2010 – # 7 in mature population - 14.9%
2030 – You drop to # 12…..but….22.4%
Estimated total of age 65 and older in Iowa by 2030: Estimated total of age 65 and older in Iowa by 2030 Total Increase
52%
226,973
Projections of U.S. Population Age 65+ for South Carolina 2000 - 2030: Projections of U.S. Population Age 65+ for South Carolina 2000 - 2030 2000 – 12.1% (485,333)
2010 – 13.6% (605,660)
2030 – 22.0% (1,134,459)
Increase in total 65+ population
133.7%
Largest change in population age 65+ 2000 - 2030 by state: Largest change in population age 65+ 2000 - 2030 by state Nevada – 264.1%
Alaska – 256.3%
Arizona – 255.1%
Projections of U.S. Population Age 65+ for Virginia 2000 - 2030: Projections of U.S. Population Age 65+ for Virginia 2000 - 2030 2000 – 792,333 11.2%
2010 – 994,359 12.4%
2030 - 1,843,988 18.8%
Increase in total 65+ population
132.7%
Projections of U.S. Population Age 65+ for Nebraska 2000 - 2030: Projections of U.S. Population Age 65+ for Nebraska 2000 - 2030 2000 – 232,195 13.6%
2010 – 243,313 13.8%
2030 – 375,811 20.6%
Increase in total 65+ population
61.9%
Projections of U.S. Population Age 65+ for North Carolina 2000 - 2030: Projections of U.S. Population Age 65+ for North Carolina 2000 - 2030 2000 – 969,048
2010 – 1,161,164
2030 – 2,173,173
Increase in total 65+ population
51.9%
U.S. Census Bureau Statistics for Clark County based on 2000 Census: U.S. Census Bureau Statistics for Clark County based on 2000 Census Total Population – 1,375,765(1,998,257)
White Population – 71.6% (75.2%)
African American – 9.1%(6.8%)
Hispanic – 22.0%(19.7%)
Asian – 5.3%(4.5%)
Median Home Value - $139,500($142,000)
Median Household Income - $44,616($44,581)
Homeowners – 59.1%(60.9%)
U.S. Census Bureau Statistics for Iowa based on 2004 estimates: U.S. Census Bureau Statistics for Iowa based on 2004 estimates Total Population – 2,954,451
White Population – 93.9% (75.1%)
African American – 2.1% (12.3%)
Hispanic – 2.8% (12.5%)
Asian – 1.3% (3.6%)
Median Household Income - $39,469 ($41,994)
Homeowners – 72.3% (66.2%)
U.S. Census Bureau Statistics for Charleston County based on 2004 estimates: U.S. Census Bureau Statistics for Charleston County based on 2004 estimates Total Population – 326,762
White Population – 61.9% (67.2% - SC)
African American – 34.4% (29.5%)
Hispanic – 2.4% (2.4%)
Asian – 1.1% (.9%)
Median Household Income - $37,810 ($37,082)
Homeowners – 61% (72.2%)
What’s available on www.census.gov: What’s available on www.census.gov General Demographic Characteristics
Social Characteristics
Economic Characteristics
Housing Characteristics
Housing Unit Counts
Population By Race
Also check out……: Also check out……
www.city-data.com
Statistics for New Hanover County based on 2000 US Census: Statistics for New Hanover County based on 2000 US Census 2003 population estimate – 173,554(160,307)
White population – 79.9%
African American – 17%
Hispanic – 2.0% (4.7%NC)
Homeownership rate in 2000 – 64.7% (69.4%NC)
Median Household Income - $40,172
36.6% of total population is age 45+
Projections of U.S. Population Age 65+ for North Carolina 2000 - 2030: Projections of U.S. Population Age 65+ for North Carolina 2000 - 2030 2000 – 969,048 12.0%
2010 – 1,161,164 12.4%
2030 – 2,173,173 17.8%
Increase in total 65+ population
124.3%
According to the February 2006 AARP magazine: According to the February 2006 AARP magazine 7,918 Americans will turn 60 every day in 2006
That’s 330 per hour!
Projections of U.S. Population Age 65+ for Iowa 2000 - 2030: Projections of U.S. Population Age 65+ for Iowa 2000 - 2030 2000 – 436,213 14.9%
2010 – 449,887 14.9%
2030 – 663,186 22.4%
Increase in total 65+ population
52.0%
Course Overview: Course Overview The Mature Market
Selling vs. Counseling
Legal Issues
Financing Options
Marketing 5 Life. On your terms. ™
Not affiliated or endorsed by NAR
Slide27: Let’s Get Acquainted
What do you think are major concerns of mature clients? : What do you think are major concerns of mature clients? Why should a mature client do business with you? How can you earn and maintain the respect and trust of mature clients? How can you speed up the decision making process with your mature clients without offending them? 4 Page 1 4 Not affiliated or endorsed by NAR
Slide30:
List 5 things that you have experienced in dealing with a mature client!
THE AGING OF AMERICA Senior Statistics: THE AGING OF AMERICA Senior Statistics According to AARP, between 1998 and 2000, over 8 million seniors changed residence
The fastest growing age group is 75+ and 4 out of 5 are women……TQ
83 % of seniors are property owners and 63% own their homes free and clear……..TQ
Less than 25% of older sellers will move to a “senior specific” community
4 Page 2 Not affiliated or endorsed by NAR
Understanding the Mature Market: Understanding the Mature Market
This marketplace has many variances.
Understanding generational interaction is key.
Page 2 2 Not affiliated or endorsed by NAR
Generational Differentiation: Generational Differentiation The Lost Generation 1883-1900
GI Generation 1901-1924
Silent Generation 1925-1945
Boomers 1946-1964
Generation X 1965-1976
Echo-Boomers 1977-1994
6 Not affiliated or endorsed by NAR
Slide34: “The depth of your sincerity is infinitely more persuasive than the height of your knowledge!”
Zig Ziglar
THE LOST GENERATION : THE LOST GENERATION Age 105 - 122
Make up less than 4%
Most likely in skilled care facilities or receiving at home care
22 million Americans are currently caring for an older person in the home.
In 1960 3,000 people over the age of 100
In 1997 54,000
By 2012 2.45 million
6 Page 2 Not affiliated or endorsed by NAR
Lost Generation: Lost Generation Grew up amidst unregulated drug use, massive immigration and child “sweat shops”
They gave the roar to the “Roaring 20’s”
The Great Depression hit them in midlife
Harry Truman, Irving Berlin, George Patton, Mae West, F. Scott Fitzgerald, Louis Armstrong
G.I. Generation(age 85-104): G.I. Generation(age 85-104) Made America a super power.
Coined the phrase “Senior Citizen”
3 out of 10 live in the same home for over 30 yrs.
1.5 million sell every year
Grew up in the depression
Male dominated, long term marriages….TQ
Strong faith in God 7 Page 3 Not affiliated or endorsed by NAR
G. I. Generation: G. I. Generation They came of age with the sharpest rise in schooling ever recorded
They built gleaming suburbs, invented miracle vaccines and launched moon rockets.
John Kennedy, Ronald Reagan, Walt Disney, Judy Garland, John Wayne, Walter Cronkite
G.I. Generation: G.I. Generation 8 out of 10 want to remain at home
Defined by career
Need reduced home maintenance
Believe in hard work and saving
Is their word their bond?
5 Page 3 Not affiliated or endorsed by NAR
G.I. Generation Marketing Tips: G.I. Generation Marketing Tips * Find out who they are – ASK don’t tell
* Talk about empowerment, NOT weakness
* Honor their need for independence
* Present yourself as a specialist
* Utilize “Relationship Marketing”
5 Page 3 Not affiliated or endorsed by NAR
F.O.R.D.: F.O.R.D. Family
Occupation
Recreation
Dreams
Let’s try an experiment…..: Let’s try an experiment….. Everybody stand up and shake a hand…..but do it my way…….
Now try saying this to your neighbor…….
“I don’t like you well enough to even remember your name”
Silent Generation(age 60-80): Silent Generation(age 60-80) Middle managers, mediators, counselors
Believe in compromise, human relations, problem solving and talking it out.
Sandwiched between GI and Boomers
Consensus Management is their style
Emphasis on “Process & Expertise” 6 Page 4 Not affiliated or endorsed by NAR
Silent Generation: Silent Generation Concerned with image while downsizing
Security, shopping and medical facilities
Populating the new “Sun Cities”
High divorce rate and blended families
Fear of outliving their assets
Don’t want to be dependent on children
6 Page 4 Not affiliated or endorsed by NAR
Silent Generation: Silent Generation Grew up as the suffocated children of war and depression
They are entering elderhood with unprecedented affluence, a “hip” style, and a reputation for indecision
Colin Powell, Walter Mondale, Martin Luther King, Jr., Sandra Day O’Connor, Elvis Presley
Silent Generation Marketing Tips: Silent Generation Marketing Tips 1. Find out who they are – what they want
Sell lifestyles
Show your credentials
Bring testimonials and resume
Emphasize your achievements
Show financial options
Show additional uses of equity IS THEIR WORD THEIR BOND? 8 Page 5 Not affiliated or endorsed by NAR
According to a AARP survey of seniors that went back to work…..: According to a AARP survey of seniors that went back to work….. 68% of ex-retirees went back to work because they wanted to.
32% did so because they needed money or health insurance
The Boomer Generation(age 41-60): The Boomer Generation(age 41-60) Rebelled against their fathers
More demanding and mobile……..TQ
Greater earnings- lack of savings
Used to self-consumption, self-gratification
Living longer
Postponed marriage for career
6 Page 5 Not affiliated or endorsed by NAR
The Boomer Generation: The Boomer Generation
1st generation to work beyond “retirement age”
May be supporting children and parents
Want more than one home
Want it all and nostalgic
4 Page 5 Not affiliated or endorsed by NAR
Boomer Generation: Boomer Generation George W Bush, Bill Clinton, Dolly Parton, James Taylor, Stevie Wonder, John Grissom, Tom Hanks, John F Kennedy, Jr
The Boomer Generation Marketing Tips: The Boomer Generation Marketing Tips One stop shopping
Financial options to maintain lifestyle
Your credentials, experience and designations are EXPECTED
Straightforward information
Best rate and terms
IS THEIR WORD THEIR BOND?
6 Page 6 Not affiliated or endorsed by NAR
The Generation X(age 29-40): The Generation X(age 29-40) Brand X attitudes
Latch key
Given lots of information without direction
Possess matter of fact attitudes
Group oriented and practical
“Drive through” mentality
Education value neutral
7 Page 6 Not affiliated or endorsed by NAR
The Generation X: The Generation X Cost of education, living and housing spiraling
Declining purchase power/dual income trap
Sense of entitlement
Entrepreneurial and results oriented
4 Page 6 Not affiliated or endorsed by NAR
The Generation X Marketing Tips: The Generation X Marketing Tips Shoppers – they already know the best deal
Product value and quality
Interpret information
Deliver everything yesterday
E-marketing
High tech, low touch
One chance
IS THEIR WORD THEIR BOND?
8 Page 7 Not affiliated or endorsed by NAR
Echo-Boomers(age 12-29): Echo-Boomers(age 12-29) 1/3 of the U.S. population
They’ve grown up with computers
35% are non-white
They believe in rules and not rebellion
Oriented in pleasing their parents
Color and Race Blind
Echo-Boomers: Echo-Boomers They are totally plugged- in citizens of a worldwide community
Dr. Mel Levine, a professor at the University of North Carolina said “"They have been heavily programmed. The kids who have had soccer Monday, Kung Fu Tuesday, religious classes Wednesday, clarinet lessons Thursday. Whose whole lives have really been based on what some adult tells them to do.”
Echo-Boomer Marketing Tips: Echo-Boomer Marketing Tips What do you think they expect?
Slide59: List 5 things that you can improve on in dealing with each generation empowered with this information!
Slide61: Failure is an event…..
It’s not a person…..
Yesterday really did end last night!
Slide62: Think Above The Wire…….
NAR STATISTICS ON HOMEBUYERS THAT USE THE INTERNET: NAR STATISTICS ON HOMEBUYERS THAT USE THE INTERNET 1995 – 2%
2005 – 78%
81% USED A REALTOR® and 90% used a real estate professional
Statistics for Gloucester County, Va according to 2000 U.S. census report: Statistics for Gloucester County, Va according to 2000 U.S. census report Population – 36,698
Ages 65 and over – 11.8%
White population – 86.7%
African American population – 10.3%
Hispanic or Latino – 1.6%
Median Household Income - $45,421
Homeownership – 81.4%
Median value of a home - $111,600
Statistics for Douglas County, NE according to 2000 U.S. Census: Statistics for Douglas County, NE according to 2000 U.S. Census Total Population – 463,585
Age 65+ - 50,795 – 11%
White Population – 81%
African American – 11.5%
Hispanic – 6.7%
Owner Occupied Housing – 63.3%
Median Income - $43,209
Median Home Value - $106,137
Statistics for Lancaster County, NE according to 2000 U.S. Census: Statistics for Lancaster County, NE according to 2000 U.S. Census Total Population – 250,295
Age 65+ - 26,080 – 10.4%
White Population – 90.1%
Hispanic or Latino – 3.4%
African American – 2.8%
Asian – 2.9%
Owner Occupied Housing – 60.5%
Median Income - $41,850
Median Home Value - $105,900
Selling Webster’s Definition: Selling Webster’s Definition
To persuade or influence to a course of action or to the acceptance for; to develop a belief in the truth, value, or desirability of; to cause or promote the sale of. Selling vs. Counseling Not affiliated or endorsed by NAR
Counseling Webster’s Definition: Counseling Webster’s Definition
Advice given as a result of consultation using a policy or plan of action or behavior; professional guidance of the individual by using methods like case history, personal interview or testing. Selling vs. Counseling Not affiliated or endorsed by NAR
CASE STUDY: CASE STUDY
Mrs. Edna Thompson, age 76, called Tom at ABC Realty and scheduled an appointment to discuss the possibility of selling her home. Her husband of 40 years, John, passed away just 4 months ago. She has lived in her present residence for 22 years. Not affiliated or endorsed by NAR
CASE STUDY: CASE STUDY
Tom arriving at the appointment introduces himself and asks Edna if he could briefly walk thru the home. Upon inspection, Tom indicates what he feels would be necessary repairs and cosmetic changes. Tom also discusses with Edna all the options of assisted living in the area. (Some of the facilities are several towns away.) Tom gives Edna his opinion of value and asks when she would like to list her property. Not affiliated or endorsed by NAR
CASE STUDY: CASE STUDY
Has Tom acted in the capacity of a salesperson or counselor?
What did Tom do right?
What did Tom do wrong?
Acting in a counselor capacity, how would you address this appointment? What questions would you ask? 4 Not affiliated or endorsed by NAR
The Do’s and Don’ts: The Do’s and Don’ts Don’t
Pre-judge or stereotype
Patronize
Rush the decision
Use first names without permission
Yell
Use real estate jargon 7 Page 10 Not affiliated or endorsed by NAR
DO: DO
Listen and be patient
Make them feel important
Empower
Keep informed about senior issues
Display your credentials
5 Page 10 Not affiliated or endorsed by NAR
DO: DO Be sensitive to Senior concerns-
Loss of control……TQ
Loss of spouse
Loss of status and power
Feelings of inevitability
Health issues
5 Page 10 Not affiliated or endorsed by NAR
Senior concerns: Senior concerns Loss of equity/savings
Leaving familiar surroundings
Loss of driving ability
Pet relationships
Management of personal possessions “Treasures”
Be accessible; communicate often 6 Page 10 Not affiliated or endorsed by NAR
Counseling Tools: Counseling Tools What is the objective?
The Real Cost of Housing
2 Page 11 Not affiliated or endorsed by NAR
Step 1: Determine the current market value of the property minus existing loans and liens: Step 1: Determine the current market value of the property minus existing loans and liens CURRENT NET EQUITY $__________
Step 2: What are your monthly expenses?
Mortgage Payment $________
Property Taxes $________
Insurance $________
Lawn Maintenance $________
Capital Improvements $________
MONTHLY CASH OUTLAY $________ 7 Appendix Not affiliated or endorsed by NAR
Step 3. Determine your rate of return: Step 3. Determine your rate of return % X $ Monthly income $________
Step 4. Determine current rental rates
Rent $ minus Investment $_________
Income
Cost of Housing $___________
Original Cost of Housing $_____________ 7 Appendix Not affiliated or endorsed by NAR
The “Real” Cost of Housing: The “Real” Cost of Housing Points to consider
Does your mature client want a life style change?
Is it prudent to continue to pay out of pocket or would it be advantageous to use the equity to create a greater cash flow?
Is it beneficial to completely eliminate the upkeep and use the funds for travel, family, etc? 4 Not affiliated or endorsed by NAR
The Ultimate Skill: The Ultimate Skill
Creating and maintaining long term relationships!
There is always a “psychological sale” before the actual sale can occur. (TQ) 2 Not affiliated or endorsed by NAR
Seniors and Family Members- Delight or Dilemma?: Ask a lot of questions
What are some issues that family
members might have?
Listen
Provide extra copies
Look at bottom of page 4(Building Relationships)
► Your relationship with the family of your client is crucial when it comes time to make decisions. Seniors and Family Members- Delight or Dilemma? 6 Not affiliated or endorsed by NAR
Maintaining the Relationship: Maintaining the Relationship Many agents feel that it is too frustrating to work with mature clients
Look at bottom of page 5
Counseling Concept: Counseling Concept Create a team of professionals……..
Who might be on your team? 1 Page 14 Not affiliated or endorsed by NAR
Challenges of Cultural Diversity: Challenges of Cultural Diversity Over One Million Immigrants/Year
Personal space
Time and time consciousness
Clear and concise language
Mental process and learning
4 Page 15 Not affiliated or endorsed by NAR
Slide86:
kiss, bow, or shake hands” Terry Morrison
Statistics for Fulton County, Ga based on 2000 US Census: Statistics for Fulton County, Ga based on 2000 US Census Population – 816,006
Age 65 and older – 8.5%
White population – 48.1%
African American – 44.6%
Hispanic or Latino – 5.9%
Asian – 3%
Age 25+ with bachelor’s degree or higher – 41.4%
Median Household income - $47,321
Median value of owner occupied home - $180,700
Keys to Communication: Generational Traits
Cultural Influences
Personality Assessment 3 Keys to Communication Not affiliated or endorsed by NAR
Mark Given Real Estate Seminars: Mark Given Real Estate Seminars Mark Given,ABR,CRS,GRI,SRES
P.O. Box 1460
Roanoke Rapids, NC 27870
www.markgivenrealestate.com
markgiven@yahoo.com
Thanks………….: Thanks…………. Please turn off your
cell phones
How to win friends picture: How to win friends picture
Statistics for Lynchburg City, Va. based on 2000 US Census: Statistics for Lynchburg City, Va. based on 2000 US Census Population – 65,269 Male – 29,841/Female – 35,428
Age 65 and older – 10,645 - 16.3%
White population – 66.6%
African American – 29.7%
Hispanic or Latino – 1.3%
Asian – 1.3%
Home Owners – 58.5%
Median Household Income - $32,234
Median Family Income - $40,844
Median value of owner occupied home - $85,300
Statistics for Mecklenburg County, NC based on 2000 US Census: Statistics for Mecklenburg County, NC based on 2000 US Census Population – 695,454
Age 55 and older – 15.8% (109,882)
White population – 64.0%
African American – 27.9%
Hispanic or Latino – 6.5%
Asian – 3.1%
Home Owners – 62.3%
Median Household Income - $50,579
Median value of owner occupied home - $141,800
Analyzing Personality traits: Analyzing Personality traits Page 9(Selling To Counseling)
Read the instructions and complete as quickly as possible……..
Don’t over analyze!
Slide96:
P
R
O
F
I
L
E
S
Slide97:
LION
Strengths
Practical Traditional Orderly
Goal-oriented Very direct Dependable
Self-determined Economical Organized
Limitations
Distant Stubborn
Unapproachable Insensitive Rigid
Critical
10 Appendix
Slide98: OTTER
Strengths
Persuasive Inspiring Open
Risk-taker Competitive Direct
Socially skilled Confident Outgoing
Pursues change
Limitations
Pushy Intimidating Reactive
Manipulative Restless Abrasive
Overbearing Dominating Impatient
12 Appendix
Slide99: BEAVER
Strengths
Exacting Practical Thorough
Factual Risk-avoider Reserved
High standards Meticulous Calm
Limitations
Perfectionistic Withdrawn Passive
Dull Sullen Shy
Slow to get things done
9 Appendix
Slide100: GOLDEN RETRIEVER
Strengths
Team-oriented Caring Sensitive
Good listener Devoted Good friend
Enthusiastic Likes variety Helpful
Accessible Trusting Peacemaker
Limitations
Too other-oriented Indecisive
Impractical Vulnerable Hesitant
Subjective 11 Appendix
Slide101: LION
Turn-ons
Control Responsibility Mastery
Loyalty Fast pace
Turn-offs
Ambiguity Irreverence Laziness
Showing emotions 7 Appendix
Slide102: OTTER
Turn-ons
Attention Adventure Achievement
Excitement Recognition Spontaneity
Turn-offs
Lack of enthusiasm Waiting
Indecision 7 Appendix
Slide103: BEAVER
Turn-ons
Perfection Autonomy Consistency
Practical Information
Turn-offs
Over-assertiveness Carelessness
Arrogance Fakes 7 Appendix
Slide104: GOLDEN RETRIEVER
Turn-ons
Popularity Closeness
Affirmation Kindness
Caring
Turn-offs
Insensitivity Dissension
Insincerity Egotism 9 Appendix
Slide105: List 5 things that you can improve on in dealing with each personality empowered with this information!
NAR 2003 Relocation Report for James City County, Va.: NAR 2003 Relocation Report for James City County, Va. *In 2003, 2,759 families relocated to James City
*In 2003, 1,996 families left James City
Would you like to know the top 10 counties that these families relocated from, moved to, and the families from the wealthiest counties moving here ?
NAR 2003 Relocation Report for Fulton County, Georgia: NAR 2003 Relocation Report for Fulton County, Georgia 38,319 families left!
34,543 families relocated to Fulton
Would you like to know the top 10 counties that these families relocated from, moved to, and the families from the wealthiest counties moving here ?
NAR 2003 Relocation Report for Lynchburg City, Virginia 2003: NAR 2003 Relocation Report for Lynchburg City, Virginia 2003 1,826 families left!
1,838 families relocated to
Would you like to know the top 10 counties that these families relocated from, moved to, and the families from the wealthiest counties moving here ?
NAR Relocation 2003 Report for Lancaster County, NE: NAR Relocation 2003 Report for Lancaster County, NE 6,305 families moved in…….
5,665 families moved out……
Would you like to know the top 10 counties that these families relocated from, moved to, and the families from the wealthiest counties moving here ?
NAR Relocation 2003 Report for Douglas County, NE: NAR Relocation 2003 Report for Douglas County, NE 11,271 families moved in…….
11,073 families moved out……
Would you like to know the top 10 counties that these families relocated from, moved to, and the families from the wealthiest counties moving here ?
NAR Relocation 2003 Report for Clark County, Nevada: NAR Relocation 2003 Report for Clark County, Nevada 43,083 families moved in…….
28,287 families moved out……
Would you like to know the top 10 counties that these families relocated from, moved to, and the families from the wealthiest counties moving here ?
NAR Relocation 2004 Report for Pitt County, North Carolina: NAR Relocation 2004 Report for Pitt County, North Carolina 3,591 households moved in…….
3,343 households moved out……
Would you like to know the top 10 counties that these families relocated from, moved to, and the families from the wealthiest counties moving here ?
NAR Relocation 2004 Report for Dallas County, Iowa: NAR Relocation 2004 Report for Dallas County, Iowa 2,615 households moved in…….
1,486 households moved out……
Would you like to know the top 10 counties that these families relocated from, moved to, and the families from the wealthiest counties moving here
NAR 2004 Relocation Report for Charleston County, SC: NAR 2004 Relocation Report for Charleston County, SC 12,112 households moved in…….
10,096 households moved out……
Would you like to know the top 10 counties that these families relocated from, moved to, and the families from the wealthiest counties moving here
Top 10 Counties relocating to Charleston County……: Top 10 Counties relocating to Charleston County…… Berkeley County, SC – 1883
Dorchester County, SC – 942
Richland County, SC – 296
Mecklenburg County, NC – 227
Greenville County, SC – 197
Lexington County, SC – 183
Beaufort County, SC – 131
Horry County, SC – 123
Colleton County, SC – 109
Fulton County, GA - 101
Top 10 Counties Relocating From Charleston County to…….: Top 10 Counties Relocating From Charleston County to……. Berkeley County, SC – 2,275
Dorchester County, SC – 1,179
Richland County, SC – 251
Mecklenburg County, NC – 174
Greenville County, SC – 156
Lexington County, SC – 127
Colleton County, SC – 115
Beaufort County, SC – 110
Duval County, Fl – 95
Fulton County, GA - 84
The report includes 217 counties coming in……Most surprising?: The report includes 217 counties coming in……Most surprising?
#39 – Knox County, TN – 41
#42 – Honolulu County, HI – 40
#44 – Bexar County, TX – 40
#59 – King County, WA – 30
#170 – Johnson County, KS - 12
Wealthiest Counties moving in!: Wealthiest Counties moving in! Kent County, MI – 22
San Mateo county, CA – 13
Washtenaw, MI – 10
Essex County, MA – 19
Nassau County, NY - 10
Top 10 Counties relocating to Dallas County……: Top 10 Counties relocating to Dallas County…… Polk – 1,494
Story – 56
Madison – 48
Warren – 44
Boone – 37
Guthrie – 36
Johnson – 28
Black Hawk – 26
Scott – 22
Maricopa, AZ - 20
Top 10 Counties Relocating From Dallas County to…….: Top 10 Counties Relocating From Dallas County to……. Polk – 661
Boone – 62
Madison – 47
Guthrie – 37
Story – 33
Warren – 26
Johnson – 22
Greene – 21
Adair – 20
Maricopa, AZ - 15
Wealthiest!: Wealthiest! Moving in – Lancaster County, NE 11 households
Moving out – Maricopa County, AZ - 15 households
NAR Relocation 2003 Report for New Hanover County, NC: NAR Relocation 2003 Report for New Hanover County, NC 6,743 families moved in…….
4,997 families moved out……
Would you like to know the top 10 counties that these families relocated from, moved to, and the families from the wealthiest counties moving here ?
Top 10 Counties relocating to Clark County: Top 10 Counties relocating to Clark County Los Angeles County – 4,337
San Diego County – 1,566
Orange County – 1,490
Maricopa County, AZ – 1,086
San Bernardino county – 998
Cook County, IL – 872
Riverside County – 721
Santa Clara County – 701
Honolulu County, HI – 647
Washoe County, NV - 629
Top 10 Counties relocating to Pitt County: Top 10 Counties relocating to Pitt County 1. Beaufort County – 287
2. Wake County – 194
3. Craven County – 142
4. Martin County – 130
5. Lenoir County – 126
6. Greene County – 110
7. Edgecombe County – 98
8. Nash County – 93
9. Carteret County – 67
10. Wayne County - 63
Top 10 Counties relocating to Mecklenburg County: Top 10 Counties relocating to Mecklenburg County Cabarrus County – 1,344
Union County – 1023
Gaston County – 883
York County, SC – 609
Iredell County – 540
Wake County – 510
Guilford County – 451
Forsyth County – 295
Catawba County – 284
Fulton County, GA - 216
Top 10 Counties relocating to New Hanover County: Top 10 Counties relocating to New Hanover County Brunswick – 438
Wake – 371
Pender – 360
Onslow – 200
Mecklenburg – 155
Guilford – 136
Cumberland – 124
Forsyth – 105
Durham – 102
Pitt - 91
Most Surprising: Most Surprising #16 - Queens County, NY – 183
And 6 Other Counties in NY
#11 - Richland County, SC – 215
#30 - Maricopa County, AZ – 125
#41 - Harris County, TX – 110
#367 - Hampton County, SC – 10
And 23 other counties with 10
Most Surprising …..Some Examples: Most Surprising …..Some Examples #15 - Suffolk County, NY – 58
#29 - Fairfield County, CT – 34
#34 – Montgomery County, MD – 30
#110 – Harris County, TX – 12
There are 5 NJ counties with 10 or 11
There are 136 counties with at least 10+
Top 10 Counties relocating to Lancaster County: Top 10 Counties relocating to Lancaster County Douglas County – 494
Seward County – 188
Hall County – 154
Cass County – 152
Platte County – 145
Buffalo County – 142
Madison County – 131
Gage County – 131
Sarpy County – 127
Saunders County - 124
Top 10 Counties relocating to James City: Top 10 Counties relocating to James City Newport News - 384
York County - 207
Hampton City – 101
Williamsburg City - 99
Fairfax County - 80
Virginia Beach - 64
Henrico County - 59
Clouchester County - 48
New Kent County - 34
Richmond - 28
Top 10 Counties relocating to Fulton County : Top 10 Counties relocating to Fulton County Dekalb County – 7,808 families
Cobb County – 4009
Gwinnett County – 2,647
Clayton County – 2,118
Cherokee County – 509
Forsyth County – 467
Fayette County – 365
Cook County, IL – 335
Douglas County – 305
Henry County - 267
Top 10 Counties relocating to Lynchburg, Virginia: Top 10 Counties relocating to Lynchburg, Virginia 1. Campbell County – 400
2. Bedford County – 251
3. Amherst County – 156
4. Appomattox County – 52
5. Richmond County – 24
6. Pittsylvania County – 22
7. Roanoke – 22
8. Henrico County – 19
9. Albemarle County – 14
10. Fairfax County - 14
Wealthiest Counties Moving to Fulton County: Wealthiest Counties Moving to Fulton County Delaware County, Ohio – 24
Douglas County, CO – 18
Loudon County, VA – 22
San Mateo County, CA – 34
Collin County, TX – 49
Snohomish County, WA – 13
Contra Costa County, CA – 44
Lake County, IL – 44
Somerset County, NJ – 22
Orange County, CA - 85
Wealthiest Counties Moving to New Hanover County: Wealthiest Counties Moving to New Hanover County Summit County, Ohio – 10
Santa Clara County, CA – 15
Bergen County, NJ – 14
Marion County, IN – 15
Montgomery County, MD - 30
Wealthiest Counties Moving to Pitt County: Wealthiest Counties Moving to Pitt County Henrico County, Virginia – 10
Cobb County, Georgia – 12
Horry County, South Carolina – 12
Prince George County, Maryland – 14
Broward County, Florida - 13
Wealthiest Counties Moving to Clark County: Wealthiest Counties Moving to Clark County Frederick County, MD – 17
Los Alamos County, NM – 11
Park County, CO – 11
Brazoria County, TX – 11
Wayne County, NC – 15
Fairfax County, VA – 97
York County, VA – 19
Somerset County, NJ – 24
Lowndes County, GA – 13
Porter County, IN - 26
Wealthiest Counties Moving to Lancaster County: Wealthiest Counties Moving to Lancaster County Collin County, TX – 10
Shawnee County, KS – 42
Adams County, CO – 16
Riley County, KS – 15
Laramie County, WY – 12
St. Louis County, MO – 11
Dupage County, IL – 10
Orange County, CA – 13
Santa Clara County, CA – 14
Black Hawk County, IA - 12
Wealthiest Counties Moving to Lynchburg: Wealthiest Counties Moving to Lynchburg Roanoke County – 11
Fairfax County – 14
Henrico County – 19
Richmond – 24
Roanoke – 22
Nelson County – 10
Bedford County – 251
Campbell County – 400
Appomattox County – 52
Albemarle County - 14
Wealthiest Counties Moving to James City: Wealthiest Counties Moving to James City Loudoun County – 11
Westchester County, NY – 14
Fairfax County – 80
Arlington County – 21
Morris County, NJ – 12
Albemarle County – 10
Fairfield County, CT – 20
Poquoson City – 13
Burlington County, NJ – 10
Chesterfield County - 26
Top 10 Counties Relocating From Fulton County: Top 10 Counties Relocating From Fulton County 1.Dekalb County – 8,470
2. Cobb County – 4,561
3. Clayton County – 3,678
4. Gwinnett County – 2,784
5. Forsyth County – 1,295
6. Cherokee County – 1,079
7. Douglas County – 584
8. Henry County – 539
9. Fayette County – 460
10. Coweta County - 345
Top 10 Counties Relocating From Mecklenburg County to:: Top 10 Counties Relocating From Mecklenburg County to: Union County – 2,000
Cabarrus County – 1,631
York County, SC – 1,161
Gaston County – 983
Iredell County – 677
Wake County – 515
Catawba County – 358
Guilford County – 288
Charleston County, SC – 227
Lancaster County, SC - 221
Top 10 Counties Relocating From Clark County to ****: Top 10 Counties Relocating From Clark County to **** Los Angeles County – 2,043
Maricopa County, AZ – 1,036
San Diego County – 993
Orange County – 697
Riverside County – 663
Nye County, NV – 657
San Bernardino – 647
Mohave County, AZ – 594
Washoe County, NV – 588
Cook County, IL - 345
Top 10 Counties Relocating From Lynchburg to ****: Top 10 Counties Relocating From Lynchburg to **** Campbell County – 411
Bedford County – 275
Amherst County – 182
Appomattox County – 37
Henrico County – 26
Richmond – 22
Chesterfield County – 22
Roanoke County – 18
Pittsylvania County – 17
Fairfax County - 17
Top 10 Counties Relocating From Lancaster County to ****: Top 10 Counties Relocating From Lancaster County to **** Douglas County – 676
Sarpy County – 156
Seward County – 154
Cass County – 131
Gage County – 116
Saunders County – 112
Maricopa County, AZ – 105
Saline County – 98
Johnson County, KS – 91
Otoe County - 89
Top 10 Counties Relocating From James City to ****: Top 10 Counties Relocating From James City to **** Newport News – 259
York County – 128
Williamsburg – 64
New Kent County – 60
Hampton City – 58
Henrico County – 49
Fairfax County – 44
Virginia Beach – 41
Richmond – 35
Gloucester County - 33
Top 10 Counties Relocating From Pitt County to ****: Top 10 Counties Relocating From Pitt County to **** Wake County – 300
Beaufort County – 251
Greene County – 115
Lenoir County – 104
Craven County – 102
Edgecombe County – 95
New Hanover County – 91
Guilford County – 73
Martin County – 70
Mecklenburg County - 69
I have Relo Reports for……: I have Relo Reports for…… Pitt County
Beaufort County
Greene County
Martin County
Most surprising statistic!: Most surprising statistic! *Moved to James City from:
Los Angeles, Ca – 13
San Diego, Ca – 16
Montgomery County, Md – 24
*Moved from James City to…….:
Wake County, NC – 30
Manicopa County, Az – 10
Los Angeles, Ca - 10
Top 10 Counties Relocating From New Hanover County to ****: Top 10 Counties Relocating From New Hanover County to **** Brunswick County – 521
Pender County – 461
Wake County – 368
Mecklenburg County – 184
Onslow County – 113
Guilford County – 82
Durham County – 76
Cumberland County – 71
Forsyth County – 58
Pitt County - 54
Most surprising statistic!: Most surprising statistic! The number 500 County moving to Clark County is……Barnstable County, MA – 10
And there are 37 counties moving in with 10!
The number 410 County moving out is to Anderson County, SC – 10
And there are 27 Counties with 10!
Most surprising statistic!: Most surprising statistic! There are a total of 82 counties with 10+
#81 – Pasco County, FL – 10
#82 – Howard County, MD – 10
#27 – Palm Beach County, FL – 24
#35 – Maricopa County, AZ - 20
Slide153: What if you just picked 2 or 3 Counties to become the Realtor® of Choice? The average agent only does 6 - 10 (sides) transactions a year!
Senior Advantage Real Estate Council: Senior Homebuyer Survey: Senior Advantage Real Estate Council: Senior Homebuyer Survey We can now break out results into two distinctive groups: 50-64 and 65+
44% of all senior buyers used the internet
Research comparable prices – 92%
Get current neighborhood sales – 88%
Track the housing market – 71%
Find a specific real estate agent – 61%
Senior Home Buyer Survey Continued: Senior Home Buyer Survey Continued 82% of those that relocated did so within their own state.
66% under 65 moved less than 100 miles away
48% of older seniors moved less than 25 miles
68% of older seniors moved for a higher quality of community service
40% of younger seniors moved to a better neighborhood
Senior Home Buyer Survey Continued: Senior Home Buyer Survey Continued 28% of younger seniors moved looking for a shorter commute to work
Consideration given to price was ranked 3rd for younger seniors and 1st by older seniors
92% of older seniors had purchased a prior home
69% of older seniors that were familiar with SRES® felt that designees were better able to meet specific senior real estate needs
45% said they were familiar with SRES®
Of those that expressed STRONG familiarity with SRES® 86% were very likely to use one
Taxpayer Relief Act: Taxpayer Relief Act 1 Not affiliated or endorsed by NAR
Look at page 10 (Selling To Counseling) : Look at page 10 (Selling To Counseling)
Taxpayer Relief Act: Taxpayer Relief Act IRC Code-Three Tests
Ownership Test
Use test
One-Sale-In-Two Years test 4 Not affiliated or endorsed by NAR
IRC Code - 3 Tests: IRC Code - 3 Tests Ownership test
Any 2 of the last 5 years
Filing Individually, $250,000 exemption
Filing jointly,only one spouse must meet ownership test to claim the $500,000
Not affiliated or endorsed by NAR
IRC Code - 3 Tests: IRC Code - 3 Tests
Use test
Occupancy as a principal residence for any
2 years of the last 5 years before sale
Occupancy not required on date of sale
When filing jointly
both must meet the
use test to claim the $500,000 7 Not affiliated or endorsed by NAR
IRC Code - 3 Tests: IRC Code - 3 Tests
One-Sale/Two Years
Exclusion can be used only
once every 2 years
When filing jointly both must meet this test to claim the $500,000 exemption. Not affiliated or endorsed by NAR
Before Taxpayer Relief Act of 1997: Before Taxpayer Relief Act of 1997 Qualifying Property - Principal Residence
Length of Occupancy
Any 3 of the last 5 years
Tax Exclusion on Gain
$125,000
Frequency of Use - Once in a lifetime
Must Be Age 55 or Older
Replacement Property Equal To or Greater
No Deduction for “Loss” 9 Not affiliated or endorsed by NAR
Taxpayer Relief Act of 1997: Taxpayer Relief Act of 1997 Qualifying Property - Principal Residence
Length of Occupancy
Any 2 of the last 5 years
Tax Exclusion on Gain
$250k filing individually
$500 filing jointly
Frequency of Use Every 2 years
If filing jointly – partial exclusions apply
if one sold within time
No Age Restrictions for Taxpayer
No Replacement Property Necessary
No Deduction for “Loss” 12
Capital Gain: Capital Gain “Basis” is the starting point for determining gain or loss and may be:
cost
Fair market value at a specified date
Substituted basis
The gain received on sale of a capital asset
Net sales price minus adjusted cost basis = gain
Preferential capital gains tax rate for:
Gains over the $500/250 are treated as capital gains Not affiliated or endorsed by NAR
Capital Gain: Capital Gain Second homes, investment property, or rental property are capital assets
They do not qualify for the $500,000/250,000 principal residence exclusion
Seller may move into investment housing for the 2 year “use test” to claim principal residence exclusion (all 3 tests must be met)
All OPTIONS SUGGESTED TO CLIENTS MUST BE SUBJECT TO REVIEW AND CONCURRENCE BY LEGAL/CPA’s Not affiliated or endorsed by NAR
Senior Legal Issues: Senior Legal Issues Retirement savings provisions
Death Tax
Estate Planning
Documents
Ownership designations
Managing incapacity 6 Not affiliated or endorsed by NAR
Retirement Savings Provisions:
“Comprehensive Retirement Security and Pension Reform Act of 2001”.
Increases in IRA Contribution Limits –
“catch-up” rule –
aged 50 and above may make additional contributions
of $500 for 2002 thru 2005
increasing to $1,000 for 2006 and beyond Retirement Savings Provisions 6 Not affiliated or endorsed by NAR
Retirement Savings Provisions: Retirement Savings Provisions The new contribution limits for traditional and Roth IRAs will be
$3,000 for 2002 through 2004
$4,000 for 2005 through 2007
$5,000 in 2008
Thereafter the limit will be indexed for inflation in $500 increments.
5 Not affiliated or endorsed by NAR
Increased Benefit and Contribution Limits for Qualified Retirement Plans: Increased Benefit and Contribution Limits for Qualified Retirement Plans Effective 2001 – (see page 1 & 2 - Legal Issues)
Annual Compensation
Annual Additions to and Benefits Under Defined Contribution Plans
40l(k), SEP Elective Referrals
457 Elective Referrals
SIMPLE Election Referral
7 Not affiliated or endorsed by NAR
Death Tax Repeal : Death Tax Repeal Provides a decade-long phase-in period
Moreover, further changes in the rules are almost a certainty.
Key Points
The repeal applies to the federal estate and generation-skipping taxes. It does not repeal the federal gift tax. Also, the legislation does not eliminate any state “death taxes”.
The federal estate and generation–skipping taxes are on a phase out plan with tax repeal slated for 2010. 5 Not affiliated or endorsed by NAR
Gift Tax: Gift Tax The annual gift tax exclusion law remains unchanged.
An individual can make a gift to any other individual, free of gift taxes or gift tax reporting, of $12,000 in 2005.
Spouses can each give a gift of $12,000 to the same person, making a total tax-free gift of $24,000. Page 4 3 Not affiliated or endorsed by NAR
Other Items to Consider: Other Items to Consider See page 4
State Death Taxes Credits
Capital Gain Tax Scale
How does this affect the Senior’s overall estate?
Page 4 Not affiliated or endorsed by NAR
ESTATE PLANNING - GOALS: ESTATE PLANNING - GOALS Ensure the assets of the estate to the users/heirs
Reduce the tax “bite”
Tax is due within 9 months of DOD
If the estate is over
$1,500,000 exemption
$2 million in 2006
$3.5 million in 2009
The entire estate is exempt in 2010
8 Not affiliated or endorsed by NAR
ESTATE PLANNING GOALS: ESTATE PLANNING GOALS Transfers between spouses are exempt (even at death)…..TQ
Gifts to anyone up to $12,000 are tax free
Eliminate Probate costs
Ensure family harmony
Control over who gets what
Eliminate the need for a conservator
6 Not affiliated or endorsed by NAR
ESTATE PLANNING DOCUMENTS – THE WILL (page 6): ESTATE PLANNING DOCUMENTS – THE WILL (page 6) It outlines the disposition of assets
It names the beneficiaries of the estate
It names the personal representative
Items to consider
► Is the will considered valid, if the senior has moved?
► Is the will valid if it is acquired through the Internet?
► Who has been named executor/executrix? 7 Not affiliated or endorsed by NAR
ESTATE PLANNING DOCUMENTS – THE WILL: ESTATE PLANNING DOCUMENTS – THE WILL In the absence of a will
The court appoints a personal representative
The law decides who inherits
The disadvantages of a will
May not avoid probate
May lead to the appointment of a conservator
May lead to court control of minor children
Becomes public record
Lack of tax benefits Not affiliated or endorsed by NAR
“No-Will-Will”: “No-Will-Will”
Let’s take a minute and read it!!!!
ESTATE PLANNING DOCUMENTS – THE WILL (PAGE 7): ESTATE PLANNING DOCUMENTS – THE WILL (PAGE 7) Some highlights of the “No-Will Will”
When the children become age 18, they can do whatever they please with their share of the money and property.
Any family heirlooms that may be part of my estate can be sold and converted to cash. None of my relatives probably want any of them anyway.
I want as much of my money and property as possible to go to the government instead of my spouse and children. Page 7 Not affiliated or endorsed by NAR
Living Trusts: Living Trusts Living trusts are an efficient and effective way to transfer property, at your death, to the relatives, friends, or charities you’ve chosen. The important difference between a trust and a will is that there is no probate. Property left by a living trust can go promptly and directly to your inheritors with no expense for court or lawyer fees……
A Living Trust: A Living Trust A living trust manages assets during life and distributes at death.
A revocable trust can be changed or revoked any time prior to death.
Upon death the trustee or successor trustee takes over administration
The trust may continue for the benefit of named beneficiaries.
No Probate Court jurisdiction.
Not affiliated or endorsed by NAR
A Living Trust: A Living Trust The trustee administers the estate without the court.
The process can be quicker than probate.
Husband and Wife may use an A/B trust to create a Federal tax exemption twice avoiding tax on their estate.
The trust is not a recorded document, which ensures privacy.
The person named in the trust takes over if you are incapacitated and can manage your affairs without interference from the court.
Not affiliated or endorsed by NAR
Living Trust continued….: Living Trust continued…. You can revise, amend, or revoke the trust for any(or no)reason, anytime before your death, as long as you are legally competent…….
When you die…..the living trust can no longer be revoked or altered…..It is now irrevocable!
Slide185: Redneck Palm Pilot………..
Life Insurance: Life Insurance
Support of dependents (including schooling)
Support of surviving spouse
Compensate for wage earners income
Cover costs of estate tax
Burial costs
Not affiliated or endorsed by NAR
Life Insurance: Life Insurance
Ownership of the insurance policy
If owned by the decedent of spouse proceeds are part of the estate
Avoid this by having the beneficiary be the owner
“Gift” the beneficiary the amount of the premiums
Set up an irrevocable insurance trust
Set up a survivorship policy
6 Not affiliated or endorsed by NAR
Durable Power of Attorney for Health Care/ Living Will: Durable Power of Attorney for Health Care/ Living Will You appoint the person to make decisions
Designate that there will be no artificial means to prolong life when the condition is irreversible
2 Not affiliated or endorsed by NAR
Durable Power of Attorney for Health Care/ Living Will: Durable Power of Attorney for Health Care/ Living Will OR YOU
Designate all measures be used to prolong life
Designate organ donation, burial provisions, etc.
Consider “Five Wishes”
4 Not affiliated or endorsed by NAR
Durable Power of Attorney for Health Care/ Living Will: Durable Power of Attorney for Health Care/ Living Will Directive to Physicians
Appointing the physician to make decisions instead of designating another person
Directs physician to withhold life sustaining treatment when in a coma
3 Not affiliated or endorsed by NAR
PROBATE: PROBATE To assure or prove that the intent of the decedent is followed
Examination and validation of the will
Items that pass outside the will are not probated
Attorney
Representative of the estate, not the beneficiaries
Specified in the will or hired by the personal representative
Petitions the court to admit the will to probate
Issues Letters Testamentary to the personal representative
8 Not affiliated or endorsed by NAR
PROBATE: PROBATE Probate Court
Controls the decedent’s estate
Appoints the personal representative
When named in the will, an executor
When not in a will but named by the court – an administrator
Supervises the payment of debts
Orders the distribution of assets
Issues “Letters Testamentary” to the personal representative granting authority to act
8 Not affiliated or endorsed by NAR
PROBATE: PROBATE Personal Representative
Named in the will or by the court
Represents the estate, not beneficiaries
“Letters Testamentary” give authority to act
Financial bond must be posted unless waived in the will or by the beneficiaries
Receives all income, pays all expenses, invests surplus cash, and manages the estate
Requires the court approval to sell assets 7 Not affiliated or endorsed by NAR
PROBATE: PROBATE Sale of Assets
Court may order sale to pay debts and taxes
Court may grant an interim “allowance” to the family
Personal representative inventories the assets
Probate referee appraises the estate for a fee
Appraisal establishes tax basis
Remaining assets distributed to heirs
7 Not affiliated or endorsed by NAR
PROBATE: PROBATE Fees and Costs
Court fees are set by state law and vary widely…….TQ
Fees for the attorney and personal representative are
Regulated by statute in some states
Hourly or “reasonable” fee in some states
Fees must be paid before distribution to heirs
Fees can be a flat fee or a percentage of the gross estate
7 Not affiliated or endorsed by NAR
PROBATE: PROBATE Sale of Real Property
Publication of notice is required unless waived in the will
The listing is signed by the personal representative with approval of the court
The court approves the amount of brokerage compensation
The court will decide on the necessity or advantage of the sale
Confirmation of Sale hearing is required
Overbids may be allowed
7 Not affiliated or endorsed by NAR
PROBATE: PROBATE Disadvantages of Probate
Expense – can be as high as 10%
Time – 12 months or longer
Lack of privacy – public process
Loss of control by the family
5 Not affiliated or endorsed by NAR
PROBATE: Advantages: PROBATE: Advantages Court ordered process
Provides notices and allows for objections by heirs and creditors
Allows for property to be sold as a traditional listing
No court confirmation of sale required
Check with attorney for local specifics
8 Not affiliated or endorsed by NAR
AVOIDING PROBATE: AVOIDING PROBATE
Title as Joint Tenancy with right of survivorship
Title as Community Property, or Community Property with right of survivorship (where allowed)
Title in a Living Trust
Creating a Life Estate
Named beneficiaries for Insurance, Bonds, etc. 7 Not affiliated or endorsed by NAR
An Example of Extreme Probate Fees: An Example of Extreme Probate Fees Marilyn Monroe died in 1962, but over the next 18 years, her estate received income, mostly from movie royalties, in excess of $1.6 million. When her estate was finally settled in 1980, her executor announced that debts of $372,136 had been paid, and $101,229 was left for inheritors. Well over $1 million was consumed by probate fees.
Tools for Managing Incapacity: Tools for Managing Incapacity Conservatorship/Guardianship
The conservator is appointed by the court.
Has the legal capacity to manage the personal needs and financial resources of one who lacks legal capacity
Special powers shall be granted by the court e.g. power to sell real property 4 Not affiliated or endorsed by NAR
Tools for Managing Incapacity: Tools for Managing Incapacity Conservatorship/Guardianship
Disadvantages
Records and proceedings are public
Expense of court costs, expert witness testimony, examinations, auditor fees, bonds
Conservator may be a stranger
Recovery requires court proof 6 Not affiliated or endorsed by NAR
Tools for Managing Incapacity: Tools for Managing Incapacity Durable Powers of Attorney
You appoint the person to conduct your affairs immediately, or in the event of a future problem
Incompetence (springing power)
Powers may be limited or broad
Not necessary if there is a living trust because the trustee assumes the roll 5 Not affiliated or endorsed by NAR
Tools for Managing Incapacity: Tools for Managing Incapacity Trusts
Upon the incapacity of the trustor, the successor trustee takes over the role
May eliminate need for a conservator/guardian 3 Not affiliated or endorsed by NAR
FIVE WISHES: FIVE WISHES Five Wishes States
If you live in the District of Columbia or one of the 35 states listed below, you can use Five Wishes and have the peace of mind to know that it meets your state's requirements under the law:
Arizona, Iowa, New Mexico, Arkansas, Louisiana, New York, California, Maine, North Carolina, Colorado, Maryland, North Dakota, Connecticut, Massachusetts, Pennsylvania, Delaware, Michigan, Rhode Island, District of Columbia, Minnesota, South Dakota, Florida, Mississippi, Tennessee, Georgia, Missouri, Virginia, Hawaii, Montana, Washington, Idaho, Nebraska, West Virginia, Illinois, New Jersey, Wyoming
Alabama 12th grade reading test: Alabama 12th grade reading test #1
CDEDBD DUCKS
MR KNOT
OSAR
CDEDBD WANGS
LIB
MR EDBD DUCKS
#2: #2 MR SNAKES
MR KNOT
OSAR
CMBDI’S
LIB
MR SNAKES
NAR Profile of Home Buyers and Sellers: NAR Profile of Home Buyers and Sellers 81% use Realtor®
41% used newspaper
41% used internet
32% used yard sign
24% used home book/magazine
29% used open house
21% used info from friend or neighbor
Mark Given Real Estate Seminars: Mark Given Real Estate Seminars
Mark Given
ABR,CRS,GRI,SRES
P.O. Box 1460
Roanoke Rapids, NC 27870
www.markgiven.com
mark@markgiven.com
PLEASE……: PLEASE…… Please turn off your cell phones!
Financing Options: Financing Options Reverse Mortgage
Estate Building
Tax Deferred Exchange
Installment Sale
Not affiliated or endorsed by NAR
Mark Given Real Estate Seminars
Reverse Mortgages: Reverse Mortgages Not affiliated or endorsed by NAR
Mark Given Real Estate Seminars
Slide214: Referred to as a HECM
Home Equity Conversion Mortgage
unique financing option geared toward older adults who own and live in their home
A Means for individuals to use their equity
in the home without repayment until a future date HUD Reverse Mortgage 2 Not affiliated or endorsed by NAR
Mark Given Real Estate Seminars
Common Uses of Funds from a Reverse Mortgage : Common Uses of Funds from a Reverse Mortgage § In home care
§ Back taxes
§ Home repairs
§ Pay off existing mortgage
or equity line
§ Pay off credit card
§ Purchase a car
§ Take a trip
§ Supplement monthly income
§ Purchase another property 9 Not affiliated or endorsed by NAR
Benefits: Benefits Borrower can never owe more…..TQ
than the value of the home at the time the loan
is paid-off
If loan amount is greater than the property value, HUD insurance pays the difference no debt to heirs
Heirs entitled to balance of Equity
if any exists
If Borrower takes monthly payments
payments will continue even if borrower outlives the expectancy Tables
3 Not affiliated or endorsed by NAR
Mark Given Real Estate Seminars
Slide217: § The youngest borrower must
be at least 62 years of age
§ All borrowers must reside in the property
§ The subject property must be the borrower’s primary residence Borrower Eligibility 4 Not affiliated or endorsed by NAR
Slide218: § Single family
§ 2-4 unit properties
§ HUD approved condominiums PROPERTY ELIGIBILTY 3 Not affiliated or endorsed by NAR
Methods for Obtaining Funds : Methods for Obtaining Funds § Lump Sum
§ Monthly Payments
– tenure or term
§ Line of Credit
§ Combination of all of above 4 Not affiliated or endorsed by NAR
Repayment : Repayment § If the subject property is sold
§ If Borrower(s) leave the subject property
for 12 consecutive months or more
Applies to both borrowers, in the case of a couple
In the case of a single borrower, when he or she
leaves
§ Repayment due
Upon the death of the surviving borrower or single borrower
3 Not affiliated or endorsed by NAR
HOW MUCH CAN BE BORROWED?: HOW MUCH CAN BE BORROWED? Determined by:
§ Youngest borrower’s age
§ Value of the property
§ Type of product
§ Current interest rates
§ FHA caps
6 Not affiliated or endorsed by NAR
Counseling Requirement: Counseling Requirement § Approximately one hour in duration
§ Can take place
in person or
over the telephone
§ Counseling performed by
Neighborhood Housing Services, Consumer Credit Counseling or
by Fannie Mae
§ Counseling Completion Certificate
part of underwriting file
Counseling is free of charge
4 Not affiliated or endorsed by NAR
The Application Process: The Application Process § Counseling session is the first step
§ Lengthy discussions with borrowers
and their families, both in person
and over the telephone
§ All applications are taken
face to face
Title search is ordered at
time of application
3 Not affiliated or endorsed by NAR
The Application Process: The Application Process
§ Borrower is not underwritten
only the value and condition of the property is taken into consideration
§ Repairs are often a requirement
If necessary, bids obtained
§ From application to closing
process takes approximately 4-6
weeks 3 Not affiliated or endorsed by NAR
Slide225: § HECMs are Variable Rate
§ Monthly ARM
weekly average of one-year treasury, plus margin of 1.50%
No monthly cap – just a lifetime cap of 10% over start rate
§ Annual ARM
weekly average of one-year treasury, plus margin of 2.10%
Caps: 2% annually, 5% over life of loan
§ The Higher the interest rate
the less funds available for disbursement
Hence, 99% of all borrowers choose the monthly rate Interest Rates Not affiliated or endorsed by NAR
Borrower Obligations: Borrower Obligations Prior to and After Closing … Borrower must:
§ Pay their real estate taxes……TQ
§ Keep their home properly insured
hazard and flood insurance (if applicable)
§ Maintain the condition of the property 4 Not affiliated or endorsed by NAR
Closing Costs: Closing Costs § HUD insurance
§ Origination fee
§ Appraisal, home inspection, credit report, flood determination fees
§ Termite inspection & water/septic tests
if applicable
§ Legal fees
Representation, title search, title policy
§ Document preparation fee, bank courier fee
§ Recording fees 7 Not affiliated or endorsed by NAR
Slide228: § All documents except
the title search and
Policy provided by Lender
§ Closings often take place
in borrower’s home
§ Closings last
approximately one hour
THE CLOSING PROCESS 3 Not affiliated or endorsed by NAR
IMPORTANT FEATURES: IMPORTANT FEATURES § HUD insured
§ No personal liability
§ No restrictions on use of the funds
§ No prepayment penalty
§ No income or credit qualification
§ Funds from reverse mortgage not considered income
§ Durable Powers of Attorney are eligible
§ Properly documented Conservators are eligible
§ Life Use provisions are eligible 9 Not affiliated or endorsed by NAR
Reverse Mortgage in Practice: Reverse Mortgage in Practice Senior age 70
Property appraisal $134,000
Line of credit $70,000
Closing costs $6,000
The outstanding line of credit expands by the same interest rate the Senior is paying on the reverse.
$60,000 line of credit unused would expand to $63,000 at the end of one year, assuming an interest rate of 5%.
Not affiliated or endorsed by NAR
Slide231: HECM
No monthly payments
Decreases monthly debt
No income criteria to qualify
No consideration of credit history
No risk of foreclosure
Closing costs Home Equity Loan
Monthly payments
Increases monthly debt
Income criteria to qualify
Credit taken into account
Potential for foreclosure
Often no closing costs REVERSE MORTGAGE
VS. EQUITY LINE 14 Not affiliated or endorsed by NAR
paperclip and circle: paperclip and circle
Olny srmat poelpe can read. : Olny srmat poelpe can read.
I cdnuolt blveiee taht I cluod aulaclty uesdnatnrd waht I was rdanieg. The phaonmneal pweor of the hmuan mnid, aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoatnt tihng is taht the frist and lsat ltteer be in the rghit pclae. The rset can be a taotl mses and you can sitll raed it wouthit a porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Amzanig huh? yaeh and I awlyas tghuhot slpeling was ipmorantt!
How’s your “Spizzerinctum”?: How’s your “Spizzerinctum”?
Will To Succeed!
The very moment you make a choice to succeed in a particular endeavor, spizzerinctum instantly becomes the “spring-board for your action”.
Remember: Remember No one can make you feel inferior without your permission!
Earl Nightengale said:: Earl Nightengale said: “A person becomes what he thinks about
all day!”
And I’ve also heard that……: And I’ve also heard that…… I will never exceed my highest expectation!
Tax Deferred Exchange: Tax Deferred Exchange Benefits
increase equity
increase appreciation
consolidate assets
diversify holdings
relocate or increase investment
dispose of poorly performing property 7 Not affiliated or endorsed by NAR
Tax Deferred Exchange: Tax Deferred Exchange increase net cash flow
change type of investment
conserve and compound an estate 7 Not affiliated or endorsed by NAR
Tax Deferred Exchange: Tax Deferred Exchange Six basic rules
All properties must be held for investment
45 day identification requirement
180 day purchase requirement
Qualified Intermediary
Title requirement
Reinvestment targets 7 Not affiliated or endorsed by NAR
Tax Deferred Exchange: Tax Deferred Exchange
All properties must be held for investment
“Like-kind” properties qualify….TQ Not affiliated or endorsed by NAR
Tax Deferred Exchange: Tax Deferred Exchange 45 day identification requirement
Identification must take place within 45 days of the initial property sale
Up to 3 properties
If more than 3, the 200% rule applies
45 days expires, cannot amend the list
5 Not affiliated or endorsed by NAR
Tax Deferred Exchange: Tax Deferred Exchange
180 day purchase requirement
Title must pass to taxpayer, no exceptions ….TQ Not affiliated or endorsed by NAR
Tax Deferred Exchange: Tax Deferred Exchange Qualified Intermediary
Taxpayers cannot touch the money
Must be an independent party
* No regulations governing intermediaries Not affiliated or endorsed by NAR
Tax Deferred Exchange: Tax Deferred Exchange 5. Title requirement
The tax return that held the original property must be the same tax return on the new property. Not affiliated or endorsed by NAR
Tax Deferred Exchange: Tax Deferred Exchange 6. Reinvestment targets
Property must be equal to or greater in value
All cash profits must be reinvested
Any cash taken is a taxable event called “boot” 4 Not affiliated or endorsed by NAR
Installment Sales “The Government’s Gift” to All Long-Time Property Owners: Installment Sales “The Government’s Gift” to All Long-Time Property Owners Another method of Deferring taxes where
Seller takes back a 1st Mortgage/Trust Deed
Be sure enough cash is received
up front to
Pay all costs plus any tax
on the gain….TQ
To guard against default
To ensure timely payments
6 Not affiliated or endorsed by NAR
Installment Sales “The Government’s Gift” to All Long-Time Property Owners: Installment Sales “The Government’s Gift” to All Long-Time Property Owners All installment funds are tax deferred…..TQ
Until they are converted into cash
Seller receives interest income on the government’s funds
At least one payment must be received in the tax year after the sale
The gain is prorated and paid over the years that principal payments are received
Saves Taxes if
Seller is in lower tax bracket in years after the year of sale
Lower capital gains rates applies to installment payments 8 Not affiliated or endorsed by NAR
Slide251: CHECK OUT
www.noteworld.com
SAREC and YOU: SAREC and YOU Website
Marketing Manual
Business Plan
Life. On your terms. ™
Not affiliated or endorsed by NAR
Slide255: SRES® Reception in San Francisco
Download: SRESNAR1005_final.pdf SRES® Reception in San Francisco
You are cordially invited to attend the 2005 SRES® member networking reception in San Francisco on Sunday, October 30 th from 5 p.m. to 6:30.
Distinguished Seniors Real Estate Specialist® Award
We are very pleased and honored to announce the first recipient of our newly created Distinguished Seniors Real Estate Specialist® Award. This award will be presented to an individual who has shown extraordinary service in his/her local senior community. Please join us for this very special event.
Share and Win
Bring your marketing ideas to share with your fellow SRES® designees at the reception and have the chance to win a free year’s membership in the Senior Advantage Real Estate Council®. We’ll hand over the microphone to you so you can share your ideas…and an envelope containing cash from $1 all the way through a free year’s membership to be redeemed on your membership anniversary. Envelopes containing the awards limited to the first 25….get there early!
If you plan on attending this special SRES® member networking reception, please RSVP no later than October 1 st via email to frances@car.org or call 213.739.8241. Your confirmation will include event location details.
We look forward to seeing you in San Francisco!
This event is proudly sponsored by Buyers Home Warranty.
A Place For Mom……Seniors hit by Katrina: A Place For Mom……Seniors hit by Katrina Hurricane Katrina - Senior Housing Relocation
We know that many thousands of Americans have been displaced in the aftermath of devastating Hurricane Katrina, including thousands of seniors. A Place for Mom is working to help families locate alternative housing options for their aging loved ones. During this time of crisis, A Place for Mom is publishing our database of all eldercare facilities and providers within 150 miles of New Orleans. It is our hope that this information may help families find options quickly and easily. The complete list is shown below, in order of increasing distance from New Orleans. For information on eldercare options beyond this 150 mile area, or for personal assistance from one of our 100 family advisors, please call us directly at 1-877-MOM-DAD9.
Current Press Releases on the SAREC Website: Current Press Releases on the SAREC Website Press Releases
2005-06-22 As the Population Ages, Brokers Discover A New Specialty (New York Times)
2005-06-21 REALTORS® with Special Training Provide Help to Older Clients
2005-03-17 SAREC® testifies at White House Conference on Aging Solutions Forum
2004-11-05 SRES® Client Assurance™ Program Enables Consumers to Verify License Status of Members
2004-11-02 SAREC® Marketing Campaign Highlights Options Senior Homeowners Have In Housing Choices
2004-11-02 SAREC® Accredits CENTURY 21 MatureMoves Training Program for SRES® Designation
2004-11-02 Free SAREC® Publication Highlights Aging Baby Boomers' Impact on the Seniors Housing Market
2004-10-04 10,000th REALTOR® earns Seniors Real Estate Specialist® SRES® designation
Marketing 101: Marketing 101 Communication
Don’t be afraid of the “D” word.
90% of today’s seniors say they use
age related discounts.
Offer a “bundle of services” that are unique and prepared specifically for your mature client base 4 Not affiliated or endorsed by NAR
Marketing Must Be…: Marketing Must Be… Continuous
Systematic
Repetitious
(7 times a year minimum and 13 times recommended)
Personal Equity *give before you get*: Personal Equity *give before you get* * There are very few people in the world who are immune to a tangible….valuable…act of graciousness.
* Focus on developing a large quantity of quality clients…who in turn will refer quality people….which in turn will create a quality business….which allows you a quality life
* The goal is to create a “critical mass”.
Power of 50: Power of 50 Your business is made of all those people who would name you as their personal REALTOR®.
50 People who…: 50 People who… …Know you
…Like you
…Trust you
…Are in the flow with you
The Potential of 50: The Potential of 50 50 people who know 50 people
= 2500 people
2500 x 20% turnover rate
= 500 sales per year
if you get 10% of the business
50 transactions per year
Marketing 101: Marketing 101 Direct Response Marketing
Special Reports
Post cards instead of letters
Use larger type
Use letters as follow up once a relationship has been established
Use newsletters to keep your client base informed on senior specific property issues
6 Not affiliated or endorsed by NAR
ESTABLISHING YOUR MARKETING PROGRAM: ESTABLISHING YOUR MARKETING PROGRAM Identify the Senior Market In your community Zip codes, Census reports
Identify who is talking to your market
Mail letter/postcard to prospect
Offer FREE “SPECIAL REPORTS”.
Set up a “hot line” phone for calls. Use LOCAL phone numbers.
Separate respondents from general database 6 Not affiliated or endorsed by NAR
ESTABLISHING YOUR MARKETING PROGRAM: ESTABLISHING YOUR MARKETING PROGRAM “Personally” deliver Special Reports whenever possible
Deliver or mail “Custom Quarterly Newsletter” to all respondents
Mail “Offering Senior Special Pricing/Services” letter to all database clients 3 Not affiliated or endorsed by NAR
ESTABLISHING YOUR MARKETING PROGRAM: ESTABLISHING YOUR MARKETING PROGRAM Start monthly mailing program of the letters/newsletters
Keep dates consistent
Repeat the general database mailing with “Special Reports” every six months
Update the database every year on the anniversary starting date 4 Not affiliated or endorsed by NAR
Senior Advantage Marketing Program®: Senior Advantage Marketing Program® Specially designed for SAREC members
Includes tools and resources for marketing specifically to the seniors market
“how to” scripts and outlines
Follow up letters
Custom client newsletters
Industry updates
Special Reports designed for buyers and sellers 7 Not affiliated or endorsed by NAR
OTHER IDEAS: OTHER IDEAS Seminars
“We Care” Program
Senior Centers
City Services 4 Not affiliated or endorsed by NAR
Senior Seminars: Senior Seminars GUEST SPEAKERS
Generally not more than 3 plus you
Lender
Tax specialist, CPA
Attorney
Qualified Financial Planner 6 Not affiliated or endorsed by NAR
Senior Seminars: Senior Seminars WHO TO INVITE
Your zip code client list
Mature clients of the other speakers
Mature clients from alternative living residences inquiries
Old as well as new clients/friends 5 Not affiliated or endorsed by NAR
Senior Seminars: Senior Seminars MEETING DATE/LOCATION/GETTING THE WORD OUT
Consider when in the month and time
Hotel, church, senior center or private home
Create Ad Space in LETTERS/NEWSLETTER
Use free space in local papers,
message on local radio/TV.
Other local senior media, church bulletins 7 Not affiliated or endorsed by NAR
Senior Seminars: Senior Seminars ACTUAL EVENT
2 hrs. Maximum time for event
Out before dark
Weekend or early PM is preferred
More seniors now work. Check your area.
Must provide food/snacks/coffee
Get raffle prize from local sponsor 7 Not affiliated or endorsed by NAR
“We Care” Program: “We Care” Program Identify “single seniors” in area. Contact and offer a check in plan. Set a weekly call time.
After approval, ask them for their closest contact person. Have the client notify them about your service.
Obtain the name, address and phone number of the closest relative, in case of a problem 3 Not affiliated or endorsed by NAR
“We Care” Program: “We Care” Program Contact them and let them know of your service. Tell them you will call only in the event of an emergency.
If there is no answer at the pre-set call in time, call again ten minutes later. If there is still no answer, go to the home. If there is a problem, call 911 and the contact person.
What’s in it for you? 3 Not affiliated or endorsed by NAR
Some Thoughts: Some Thoughts SENIOR CENTERS
Contact as “TEAM” NOT Realtor
Support specific “KEY” Events
CITY SENIOR SERVICES
Many communities offer “FREE” senior consulting services at monthly sessions. i.e.: tax planning, accounting, housing
Create a Senior Division in your Chamber of Commerce. Obtain referrals and send to other SRES designees. (client’s home area) for referral fees.
What services can you create?
7 Not affiliated or endorsed by NAR
Don’t Forget……: Don’t Forget…… You can have everything in life that you want if you’ll just help enough other people get what they want!
Slide278: Now it’s
your turn!
Slide279: LET’S
REVIEW……..
My Last Thought: My Last Thought You don’t have to be great to start…..but……
You’ve got to start to be GREAT!
Welcome: Welcome
To the SAREC® team! Life. On your terms. ™
Not affiliated or endorsed by NAR
Mark Given Real Estate Seminars: Mark Given Real Estate Seminars
Mark Given
ABR,CRS,GRI,SRES
P.O. Box 1460
Roanoke Rapids, NC 27870
www.markgiven.com
mark@markgiven.com