New Orleans Real Estate

Happy Easter

Sun, 08 Apr 2012 07:25:56 -0700

To all my associates and subscibers, HAPPY EASTER AND HAPPY PASSOVER!!!!

Brett Richman

Summers Group Realty LLC
Broker/ Owner
Cell: (504) 813-6409
Office: (504) 586-8900
Fax: (504) 754-7652
1539 Jackson Ave. Suite 230
New Orleans, La. 70130
www.SummersGroupRealty.com
REALTOR®

New Orleans Festival Season is Upon Us!

Tue, 03 Apr 2012 09:37:51 -0700

New Orleans is known for many amazing events this time of year. Most of these events all share three common elements that make New Orleans and Southeast Louisiana lifestyle a truly unique culture. These three paramount elements are not only key features of the festival culture here but, also deeply ingrained into the character and spirit of people that make New Orlean s the strongest independent regional culture in the country. They are great food, great music, and wonderful people to share them both with.

Last week there was an amazing free festival at Congo Square in Louis Armstrong Park, the Congo Square Rhythms Festival. The park itself has just finished an amazing renovation, and looks incredible. It is truly an asset to the French Quarter and Treme areas. The Municipal Auditorium provided a great backdrop for the event.

Sunday concluded the Tbois Blues Festival. This amazing event that takes place annually in Larose Louisiana.

For only $30 attendees get all of the food and beer you could ever want. Not too mention non stop amazing blues, rock, and zydeco.

Beer was provided by local NOLA Brewery, who featured many select brews made especially for Tbois.

Summers/East Coast Realty was a proud sponsor of the event, and we can't wait to do it all over again next year!

REO's: The left hand not knowing what the right hand is doing.

Thu, 05 Jan 2012 13:24:01 -0800

Hey Blogsters,

I don't often use exact examples from my professional life to make my point through my blog (I don't want to compromise my clients' confidentiality) but, I feel that this topic/experience is important enough to illustrate my frustrations.

A few months ago, I was driving through the neighborhood looking for possible development opportunities for myself and business partner. I came across a huge duplex, in an ideal neighborhood. Although, the house was not being actively marketed for sale, the construction work on the property had obviously been halted months ago. So, I decided to do some further research on the property and get in touch with the owner to see if he would be willing to entertain offers. So, after working with my magical broker's tool box, and making a few emails and calls, I was able to setup a meeting with myself, my business partner, the potential seller, and his attorney. After an hour or so in the meeting, we were able to sketch out a rough deal for the property at $217,000 (it still needed about $100,000 worth of renovations). We were still hammering out the details before finalizing the agreed upon Purchase Agreement. After a week or so of going back and forth, the seller walked away and not so politely suggested that we go play in traffic. He insisted on making our full deposit amount ($10,000) non-refundable. He said that this was the cost of waking "the sleeping giant", in this case is second mortgagee (that's right I forgot to mention that he hadn't made any mortgage payments in over a year). So, the deal was on life support at that time, and I moved it to the back burner while carefully monitoring the Civil Sheriff's website waiting to see the address pop up on the sale sheet as the inevitable foreclosure hammer was bound to fall at any time. About a month later it popped up on the sale list, with a writ amount of $176,000. I said to myself, "Brett you may have just saved yourself $41,000! So, like I often do, I attended the auction, cashier's checks in pocket, ready to buy this property. The bidding opened at $176,000, and I promptly proceeded to bid. It became apparent that the only person bidding against me was the attorney representing the seizing creditor. I bid up to $220,000 before I put the brakes on. After the auction concluded, won by the creditor, I proceeded to speak with the bank's representative who was the sole bidder other than myself. He told me that he was authorized to bid up to $309,000, the total outstanding balance of the first mortgage including all penalties, fines, and fees. So, the deal was once again on it's death bed. But, I knew in the back of my head that the property now eventually will be placed on the open market, and that I would have one more chance to buy it. A month goes by. Then the property pops up on the MLS, get this, now listed at $168,000! Once again, I start thinking how my patience has been rewarded, and now I am in position to save even more money, right? Wrong. My partner and I made a full price offer, less than 24 hours after the property came on the market. I hear from the agent the next morning, and he tells me that my offer was received but, there are two other offers. As many of you probably know, it is standard REO procedure at that point to reject all offers and request that everyone comes back with their "highest and best offer". So, we pumped our offer up $10,000 above list price, and we still got rejected. Presumably to an even higher offer, with less contingencies. Although, it still has not closed, I am very curious to see the final closing price.

To sum up my frustrations:

The bank could have had $217,000 before incurring any foreclosure costs or proceedings. They could have had $220,000 at auction, free and clear. And then, after four months they decide to list it at $168,000? In this world of massive foreclosure, and bank consolidation into behemoths that are unreachable by phone, I wonder if the left hand and the right hand even know of eachother's existence any more. BOA may be the worst offender but, regardless you don't have to be a Harvard economist to spot the problems in this deal. This case is not unique. It's just another sad example of (bailed out) banks being insured and taking the biggest losses possible to cheat the tax payer.

Share some of your horror stories with me, and perhaps together we can make sense of it all.

Happy Holidays

Sat, 24 Dec 2011 05:39:08 -0800

Wishing all AR members, subscribers, and everyone else the happiest of times during this holiday season.

How to Get Your Blog Featured on AR!?!?!

Mon, 05 Dec 2011 14:39:48 -0800

As summer turned to fall (hard to tell here in NOLA), I once again decided to refocus some of my energies into boosting my online presence and putting more work into my blogs. I am continually posting. And, I also enjoy commenting on featured blogs on AR, there are some truly insightful bloggers out there who share their knowledge and experiences with us daily. Although I am very interested on all of the real estate content blogs, I also carefully read the blogs about blogging itself.

I would now like for the Active Rain community help me out as a community, and to give me some feedback and insight into the "art of being featured". For exposure purposes, and out of a little bit of ego I admit, I am always hopeful that one of my posts will be featured, and people across the country and globe will be emailed a link to my blog. By the way, congrats to all of the bloggers who have been featured, as I know it is not that easy.

So, Active Rain experts, please comment and leave feedback and recommendations on how to have your blog featured on AR. I am excited to hear what you have to say, so please don't hold back any of your trade secrets.

Thanks, and a happy holiday season to all!

Agent's Pick Up Your Phones!

Thu, 01 Dec 2011 15:54:14 -0800

Please allow me to vent.

Today I have been setting up showings for a buyer client of mine, for tomorrow. She wanted to see six properties all within close proximity. So I called six listing agents. Of the six, four of the listings listed a different phone number for appointments, other than the agent's cell phone number. Of those four, every single one went to voice mail, and an hour later I am still yet to hear back. In fact, the only agent who picked up the phone at all was Eric Bouler, an AR superstar in my area. Kudos to you Eric.

Let's All Take Time to Give Thanks!

Wed, 23 Nov 2011 12:33:05 -0800

It's a shame that Thanksgiving only comes around once per year. Often times, we have so much in life that we take for granted. No matter where you are in life, love, and fortune we should all take time and look at our lives from a distance. Realize that it is the journey through life that we must enjoy and embrace. The destination is often inconsequential. This year I am thankful for my loved ones who make life worth living. I am thankful for my wonderful friends who fill my days with joy. I am thankful for my colleagues that helped propel my career to where it is today. And I am thankful to be a Realtor, who gets to wake up and work his dream job everyday!!! Happy Thanksgiving Active Rainers, Blogsters, and everyone else!!!!!!!!!!!!

Happy Veterans Day America

Fri, 11 Nov 2011 12:21:35 -0800

God Bless America, our Troops and our Veterans! Let's bring our men and women home safely to their families as soon as we can. Remember, even if you don't support the wars, it is important to support our troops. There are no political affiliations in a fox hole. This is the time for America to truly be united. A great big "thank you" goes out to all of our men and women in uniform both at home and abroad working daily for our freedom.

"A Change is Gonna Come" (thank you Sam Cooke)

Wed, 30 Dec 2009 10:33:14 -0800

Hello Blogsters!!

I apologize for being away so long but, now I'm back blogging. And, I'm more focused than ever. You might say to yourself, what makes this guy so cheerful and poignant on this rainy and cold Tuesday morning? Well, internet readers of the world, besides the holiday cheer hangover, I have also learned to fully accept and embrace the changes in my real estate business and the economy. Like the great Sam Cooke once said, "a change is gonna come".

Over the past year and a half, the economy and the real estate market in particular, has obviously gone through a Kafka-like metamorphosis. If we as agents and brokers stay stagnate then, we will slowly erode like rocks at the beach as the constant tide of the recession slowly turns us into a smoothed out shadow of our former selves.

I used to make a great living developing and selling first-homes and condos to young professionals, graduate students, and whoever else would come along. Due to financial constraints, many parents aren't buying that condo for their kid, a large portion of young professionals are struggling to stay employed, and the boat loads of buyers have since been diverted to another port.

So what is a real estate professional to do? Simply put, make a change. I know it sounds so simple to make changes in your business practices, and head in a new direction. But, old habits and ways of conducting business are deeply ingrained in us, and often are resistant to change. To be successful, in today's real estate market you have to be able to roll with the punches and go where the money is. Now I can't give some generalized advice that will turn every struggling brokerage around, there just isn't a universal answer for such a complex situation.

For my own business, I first began by figuring out who is still conducting lots of real estate business, and how can I benefit their business and make a little something for myself in the mean time. I live in a high-end rental area, and for the big time landlords, it's almost business as usual. So, I put together a good presentation, and pitched it to a few of the fat cat landlords in my area, and got my foot in the door.

From there, I let my job performance speak for itself. Over the past 18 months, I have leased out nearly 100 rental units. The transactions are simple and quick without a long term commitment on either side of the deal. And although rentals are not as lucrative as sales, even a modest agent with a decent inventory can close 2 or 3 leases in a week without breaking a sweat.

So, as the market and the economy has shifted and transformed itself, so have I. This flexibility has allowed me to stay in business and successful but, more importantly I am very happy with the direction of my brokerage. Nobody knows what the future will hold. The only thing that is certain is change. And, you have to be able to embrace the changes around you and make the best out of any situation.

Loan Modification and the Lion's Den

Thu, 06 Aug 2009 10:38:36 -0700

In the jungle, the strongest predators prey on the weakest and most helpless. And after years of being an entrepreneur, let me tell you, the business world is no different. As we saw from 2003-2007, the predatory lending practices of the mortgage brokers and bankers has greatly affected the economy of today. By now, we know all about the "sub-prime and Alt-A" loans that have put many fragile homeowners in a tumultuous situation with an uncertain future.

Now, with economic fears nearing their highest point, here comes a Knight in shining armor, riding his/her white horse, just waiting to rescue these borrowers in distress. Is it some fairy god mother, or perhaps a genie in a bottle? No it's "Loan Modification Man"! Loan-Modification can be a very tricky transaction, so buyer beware! Does everybody remember those mortgage broker/ tricksters who put you in these alternative loans in the first place, well these are the same group of nomadic heartless predators. That's right! The same S.O.B. that got you into this mess in the first place, now has a magical solution that will keep you in house, safe and sound. Well, fool me once, shame on me. But, you won't get a chance to fool me twice!

The primary action of most of these loan-modifying predators is to change your loan from a 20 or 30 year term to a 40 or 50 year term. Now, let's be reasonable here. A 50 year mortgage loan! These people should be shot just for suggesting that. Yeah your payments are the same, and you should have that house paid off just before the year 2060. And I'm sure that the hungry loan-modifying predator made sure that he/she gorged themselves on a couple of percent of your new loan, amounting to a few more months of payments for you.

Don't get me wrong, I am all in favor of negotiating with a mortgagee to lower interest rates or make other adjustments to help homeowners keep their homes. But, I am advising all of my clients in this situation to proceed with extreme caution. Have a third party review the new loan documents to check them out. Take a close look at your financial situation, and have an idea of what you want to get out of the negotiations before they even start.

Because remember, it truly is a jungle out there.

Putting a House on the Market? Consider it a First Date!

Wed, 22 Apr 2009 10:40:10 -0700

Whenever my clients are about to place a home on the market, I tell them that "the first impression is the only impression most buyers will have". You wouldn't show up to a first date smelling like paint or covered in construction dust would you? Of course not. So, don't subject your home to the same embarrassment. When a buyer enters a home for the first time, they can't help but to make superficial judgments. It is only natural. So in preparation for selling a home, make sure all of the "T's" are crossed and "I's" are dotted to perfection. It never hurts to have a professional cleaning crew make the house shine like new. And, if the home is occupied then, be sure to keep the house in presentable condition at all times. I know it sounds like a lot of work but, you can't expect a buyer to "imagine" what the house would look like in pristine condition. Most buyers have a lack of imagination, to say the least. So in conclusion, make sure your sellers put their best foot forward and show up to that first date dressed to impress!

Oh! What a cute baby buyer!

Mon, 09 Mar 2009 21:05:09 -0700

Well, anyone who has been in the real estate business for at least the past five years have seen things turn a complete about-face. When I was first learning to survive in the harsh jungles of the real estate community, I was trained and drilled on three basic industry rules to keep my career from the jaws of some hungry carnivore:

1. Listing Appointments

2. Listing Appointments

3. and more Listing Appointments

And, that is no exaggeration! My first year in the business, I might not have known the tax millage rate for a particular area but, I sure could wow you with a heck of a Powerpoint presentation. The mindset for the years spanning 0 - 2005 was "get inventory", quite simply, obtain as many listings as possible and rely on the law of large numbers to make a living for you. Now don't get me wrong, we all know plenty of work goes into each and every listing appointment but, my how the times have changed.

In this market, not a month goes by that I don't turn down a listing! That's right, the same guy who would jump over hot coals to sit down over the dinner table and explain my "unique marketing plan", now has "no availabilities for your listing". This is not because I am the busiest Realtor in the south (sometimes I feel like it), it is because I do not have time for "the incurable unrealistic seller". Or as my grandfather used to say, " life is too short, I don't have time for green bananas".

My advice for other agents out there who may be struggling, spend your time showing qualified and motivated buyers anything and everything they want to see. I know, I know, I know, but seriously I am not kidding. It is more rewarding, given the current economic circumstances, to follow a buyer all around town, rather than putting a sign up in front of a property that will never sell.

Once you have a buyer client (signed buyer's agent agreement), treat them like a delicate newborn baby. Nurture their every need, Watch over them and spoon feed them until it is time to release them into the wild adventures of home-ownership. By then, you have closed a deal , earned a commission, and developed a return client, who will surely recommend you to their friends and colleges.

I'll Call It: The Bottom is Here!

Wed, 18 Feb 2009 14:00:12 -0800

Recently, I have been pouring through market data for my area. And, I have noticed a few pleasant trends in the market. First, the number of listings that are expiring without a sale is down significantly along with the number of listings in general. Secondly, and perhaps most importantly, listing prices in the New Orleans Metropolitan Area have stabilized greatly in comparison to the rest of the nation the average difference between the original listing price and the final sales price is narrowing.

This can be interpreted in many ways. I believe that it is a positive for sellers' and buyers' interests alike. The average home-buyer can take solace in the fact that if (s)he buys a home today for a fair market price, the value should hold steady through upcoming economic turmoil. Inversely, the average seller can rest a little easier in knowing that if they accurately price their property, then they should not have to institute many, if any, significant price reductions. Personally, I prefer to take an optimistic view of the statistical data that I have gathered. I tell my clients that, "it is not going to get any worse than it is right now and the future looks bright". Also, I feel confident in telling them that, " if they can negotiate a good price/terms for a property now, then they stand to make money off of their investment". Of course, there are many caveats involved in any real estate transaction. This is why I advise customers, regardless of experience, to always have an agent handle a real estate transaction on their behalf.

National Real Estate Data

Tue, 27 Jan 2009 10:49:54 -0800

It seems like every day that Real Estate industry data will be released on a nation-wide basis. Sometimes, it is NAR reporting existing home sales for the month. Other times, it is CNBC report anouncing "new home starts" for the fiscal quarter. And yet other times, it some "market report" from one obscure data-collection service, or another. But, what can really be taken from these so-called "industry-wide-snap-shots"? To the average homeowner, buyer, or seller the answer is simply, not much.

These reports are based on information gathered on an extremely large sample size. This is normally to assure an accurate result of any empirical data. Unfortunately for us, this completely nullifies the accuracy of this data to the individual.

Real Estate markets are so localized, homeowners should consult a R.E. professional who specializes in their neighborhood. You will notice, that I did not say, "your city" or "your town", this is because factors that affect the property values of house on the other side of town, may not have any bearing on your property at all!

National R.E. statistical data should be taken with a grain of salt. Trends that critically affect the value of a condo in Miami or Las Vegas, may not have any significance at all to home-owner in New Orleans. The same can be said for trends that are prevalent in different sectors of the Real Estate market (i.e. Commercial/Industrial-vs-Residential).

So in closing for this week's post, I am asking you to please do not panic when you hear scarey data spewing from the mouth of a talking head on T.V. Instead call your local agent or broker, and ask him/her, "what's going on with the value of MY property".

The Power of the Word "OR".

Mon, 05 Jan 2009 22:39:00 -0800

It is very rare that a two-letter word like "OR" is so powerful. On a recent trip to Miami, driving down the street, I came across sign after sign reading, "FOR SALE OR LEASE" As a broker, who represents clients closely, and often times gets to know them well or even become friends, I couldn't help but to feel so sorry for the owners. You see, that this little, seemingly unimportant word, "OR", represents a very very bad situation. These owners/sellers are in such a bad place financially that they would walk away from that piece of property anyway possible. The "O" in the word "OR" is like a little life saver, the last gasp of a drowning property owner. I know what you are saying, "these people over-extended themselves and they deserve it", and in many cases you are probably correct. However, in business I never deal from a position of weakness. But, once that "FOR SALE OR LEASE" sign goes up, you have already lost all negotiations. You had better hope to get out of there with your head still attached. Good Luck!