The Newspaper Association of America has released the latest news showing the mass exodus of advertisers from newspapers.

Here is the quick summary for changes Q2 2008 to Q2 2009:

• Print Advertising down 30.1%, Online Advertising down 15.9% and Classified Advertising down 40.4%
• Total Advertising (Print and Online) down 29%
• Real Estate Classified Advertising down 45.8%

It’s the biggest drop ever in real estate advertising, but not as big as the drop in recruitment advertising, which is down 66% year over year and looks like it is heading to zero.

Echoing what we’ve seen in the housing market and unemployment rate, the rate of decline in print advertising has started to slow over recent months. One might be tempted to believe that for the print Industry the worst is behind them. However, a quick glance at the long term trend of recruiting classified advertising revenues, which was hit hard in the last recession, the print industry looks unlikely to ever recover as the advertisers shift to online options.

The real estate audience left newspapers long ago and the ad dollars are now finally leaving for good. With fewer dollars around to support ever increasing consumer expectations, it looks like newspapers are going to continue to struggle. Advertisers are realizing that they can target an engaged audience, using advanced local ad products that are reasonably priced by going online.

More charts below showing the collapse of Automotive and Recruitment Classified Advertising trends.

Pending sales for single family homes since August 1st. 

Need more specific information-let me know.

Yes it is!.  I was running through Jungle Jim’s in Fairfield and couldn’t resist taking a picture of these giant watermelons.  As far as I’m concerned-watermelons are synonymous with summertime.

Heather Burns is a Mortgage Broker with Wells Fargo Home Mortgage. I was reading a blog she wrote on Active Rain titled Why Should I care about Social Networking? where she mentions how she has benefited from being proactive on Trulia Voices - our real estate social networking community.

“Trulia offered me a forum in which I could respond to consumers and other real estate professional alike.  In fact, this past week, I responded to several questions with regards to Wells Fargo’s requirements for Jumbo mortgage down payments. Because I was able to respond in a manner that allowed multiple people to view, I was able to generate several leads, and a preapproval. Had I been working within more traditional methods, such as email or telephone with just one individual, I would not have had the opportunity to speak with others who were in need of my assistance.”

Thanks for helping real estate agents and consumers with their mortgage related questions! We wish you continued success.

As you round the gentle curve on Ross Road, in Fairfield, you pass by a very historic address -6181 Ross Road. The Elisha Morgan Mansion nestled in Gilbert Farms was built around 1817.  The Mansion is listed on the National Register of Historic Places.

 If you are out and about enjoy walking around the wonderful grounds surrounding the Mansion.   

photo credit: tuppaware_001

Real estate is a relationship business that is built on trust. Multiple parties rely on each other to reach a common goal. To reach this goal, teamwork and a steady line of communication is essential. Failure to communicate can lead to confusion, delays, errors or missed opportunities. So what does this have to do with Trulia, Twitter and Customer service?

At Trulia, we proactively participate in social media in a variety of ways and on various social networks. Each network is slightly different as is the manner in which the community chooses to engage. Regardless of the network, one thing is for certain, we’re there to be a part of the conversation. That being said, one of the most important things we do is listen. We listen to what consumers and agents have to say - the good, the bad and the ugly.

Twitter is a social network that has become an important communication channel for us - especially for customer service. On any given day, I’ll have a conversation with someone about something Trulia related. Questions like -  How to submit a listing, What’s T.A.N, Can you fix my property address, How can I find an agent in my area, Can you help me sell our home faster, Is my MLS on Trulia to things like Can Trulia sponsor my REBARCAMP, Can you speak at our event and so forth. It’s a mixed bag really. All good stuff. In each instance, it brings us a little closer to our audience, customer and clients.

A couple of months ago, I met Erica Parpan - @realsupportva, a virtual assistant at RealSupport on Twitter. Initially, we exchanged a couple of casual hello tweets…sparked by my Trulia hat avatar of all things….

…and RT’s - re-tweets -  which helped build up our rapport…

Then, Erica had some questions re: one of her clients listing syndication feeds….

140 characters was not enough room to have this type of conversation so I asked her to email me the details. At that point, a customer service conversation that started on Twitter moved to email where we could exchange more details. After receiving the info, I relied on our great back end Customer Service and Engineering team to assist in fixing her clients issue. Together, with teamwork and an open line of communication we were able to resolve the issue expeditiously.

To read more details on how we helped Erica and her clients in this specific case and another via Twitter, you can read all about it from her perspective on her Active Rain blog titled - Twitter Tip - Building Invaluable Relationships on Twitter to Support Your Business.

I have many other stories like this but just wanted to highlight how a company like Trulia can use a non-real estate specific social network like Twitter for Customer Service. Are you using Twitter for customer service?

FHA and Fannie Mae are slamming the condo market. 

For areas with an abundance of condominiums, like Fairfield, the new rulings could have a negative impact.

 FHA Mortgages:

In the past FHA approved a complex as meeting their standards- and future borrowers using FHA mortgages did not have to jump through hoops to get a loan approved.  Beginning around October 1st of this year- FHA condo approvals issued prior to 10/1/2008 are being eliminated and condos projects will have to be recertified with HUD.    What this means to buyers and sellers - longer time to closing while the complex is reviewed and approved.  If the condominium complex cannot obtain FHA approval- sellers will have to rely on a much smaller pool of buyers who  qualify for conventional mortgages or cash buyers.

Fannie Mae:

Add to the potential crunch of FHA approvals, Fannie Mae  announced a decision to tighten its lending rules to condominium buyers.  Under the new rules, if a condo association has more than 15% of its units delinquent over a month- Fannie Mae is not guaranteeing the loan. And owner occupied units must be at 70% instead of 51%.   For complexes not meeting the guidelines lenders (banks, credit unions…) can’t provide a loan unless they plan on holding onto it forever.  Most lenders do not operate this way.

It will probably take some time for the jittery condo market to normalize - in the mean time condo buyers and sellers are pinned in a ring refereed by FHA and Fannie Mae.

Today more and more sellers in the greater Cincinnati area aren’t receiving checks when they close on the sale!

It’s referred to as a “dry closing” because funds aren’t handed out at closing.  Usually (but not always) a dry closing is the result of a lender requirement to review all the signed closing documents prior to authorizing release of the money.

Usually it’s not the fault of anybody sitting around the closing table- it’s a lender requirement.  In many cases, the person handling the closing simply faxes all the material to the lender and approval comes within 30-40  minutes.  However, more and more, the lenders are not responding in a timely manner- and buyers and sellers are left in an awkward position. 

Sometimes the seller is contractually obligated to provide occupancy at closing and they have vacated the property anticipating payment at the time of closing.  Buyers expecting to move in the same day as closing and scheduled movers, appliance deliveries, cable/dish installation and a multitude of other things.

The rubber hits the road when everybody signs the closing documents and the seller doesn’t receive their money.  The seller has some options:

• Give the buyer the keys and hope the closing check will arrive that day
• Not allow occupancy until payment is received
• Seek legal council

I haven’t heard of anybody jumping up and down yelling “Show me the money” -yet.

But buyers and sellers need to know what is happening before they sit down at the closing table.  In a previous blog I covered potential closing delays caused by new government regulations added to the current lender requirement to review signed documents may have an impact on more and more closings.  It would be helpful if all the parties were warned in advance about the possibility of a “dry closing”- but nothing in the normal documents requires providing this information to buyers and sellers.

Of course there are other reasons for dry closings.  Sometimes the payoff on the seller’s mortgage can’t be obtained, condominium clear letters aren’t received, old liens against the property requiring a lot of footwork to clear, buyer did not provide required paperwork in a timely manner- delaying the loan process.  Most of these can be cleared up prior to the closing but can sometimes cause ongoing problems.

It would be helpful if buyers started asking their lender about their closing policy before the actual closing.  Privacy regulations often prohibit lenders from communicating with anybody but the buyer- so agents are not aware of potential of a “dry closing”.  Another solution would be escrow closings- where parties sign the paperwork by a specified date and the “closing” is scheduled for a future date.  This gives the title company time to clear all the hurdles and hand out funds on the scheduled date.  The down side of escrow closings is the added cost.

If you need more information about closing problems or real estate call or email.

thecincyblog is out of order until further notice.

This morning I snapped on the television to catch the morning news and …..found myself listening to blues music.  Somebody moved my station!  It may take several minutes, hours or days to sort out where my favorite TV shows now reside.

Hopefully nobody changed the address to my house - and at least the newspapers are in the right place.

First time home buyers often deal with tons of issues and unknowns when purchasing real estate.  Part 1 covered questions buyers need to ask before starting the process.  Part 2 started to answer dealt with the basics and today’s article is zeroing on the buyers and the buying sphere of influence. 

Many years ago when I started in the business a “mature agent” told me…..the decision maker sits in the front seat of your car- so pay attention.  Well you can understand my doubts about the veracity of the statement when a twelve year  jumped in to rode shot gun.   Fortunatley (or unfortunately) he tended to be the final decision maker for that particular purchase. 

So you are thinking about buying house or condo- who will be sitting in the front seat?

• The actual buyer(s)- if there are 2 or 3 of you- decide who has the final say.  House hunting can be very frustrating and if no one can make a purchase decision- well you get the picture
• Parents or grandparents- I am all for parental support -if it is support and not a distraction.  Family members are great at helping new buyers visualize decorating and many are good at figuring out what if any of the repairs or upgrades might cost.  Family members who instill fear, jealousy and genrally display a total  lack of knowledge about the housing market are not much help to anybody.
• Your friends and coworkers mean well- and you need to take their comments under consideration- but remember who is buying the house or condo (you). 

Choosing a realtor (unless you are buying a For Sale by Owner) is the final part of the equation

• Recommendations are common in our industry and it’s a great way to find a realtor with  a known track record.  Friends, family, coworkers and bosses are great sources for suggestions.  Thank them for their recommendations- but investigate on your own.  There are a lot of great agents-you don’t need to work with somebody if you are not totally comfortable with their business practices and communication skills.
• Lots of buyers meet their agent while roaming through open houses.  Open houses provide an easy way to gauge the agent’s personality, follow up skills and overall market knowledge.
• Listing agents often end up representing buyers- because the buyer met them at an open house or called them about the property.  This is known as dual agency- where the agent has a fiduciary responsibility to both the seller and the buyer.  Make sure you understand and are comfortable with dual agency before committing to work with the agent.
• Since 80%+ of the buying public begins the process online-many agents are found through web sites or blogs.  (For obvious reasons I am OK with bloggers) The agent selection process may begin via email and continue for some time before you actually meet face-to-face.  Once again, you (the buyer) need to feel confident about your selection.

Honesty is always the best policy for buyers and agents- if you are uncomfortable working with me (or any agent) tell them.  If the problem cannot be resolved, shake hands, part friends and move on.  All Realtors have access to the same Multiple Listing Service databases but some buyers think there is an advantage to using several Realtors at the same time to shop for homes in the same area…..this often leads to confusion and questions about who is really representing the buyer.

Bottom line - buying a piece of real estate requires decision making.  First time home buyers need to decide who is, the decision maker, the impact of their “buying sphere of influence”  and which agent will represent them.  If those decisions are made before you start serious house hunting- the whole process will be much easier.

Still not sure about buying now or buying later- call or email.

Related Articles: What Buyers and Sellers Should Know; FHA-Common Questions; About.com; Tax Credit