The nightly news is depressing to watch these days. With any more bad economic news one would feel like jumping a boat to Bora Bora. It's clear we'll need some time to recover, but the more important question everyone wants to know is where are we headed next?
We probably won't get a true economic picture until after the election, which, by the way, is less than a month away. We seem to forget that things typically get a little out of whack in an election year. Lets assume for a moment that this was a normal election cycle and the global economy was not on the verge of meltdown. What would normally happen is this: The stock market roller coasters along, as more speculators predict what the economy will do under President X or President Y. Uncertain consumers keep their money close to the vest, and all this leaves businesses scrambling for strategies to keep the doors open. Many of those strategies result in reducing overhead, which translates into laying people off. Thus the circular panic begins. Now all of this uneasiness is magnified ten fold by the credit crisis.
Whether you're a McCain fan or you think Obama is the best man for the job, one thing is for sure. The country will have a better sense of its future once the election is over. The unsettled roller coaster ride will quiet down. January will be here before you know it, and the President will be inaugurated. While I'm not speaking with hard evidence, just the general consensus of those in my network, I also think people will generally feel better at the start of 2009. Feeling better can translate into a lot of different things, but the two economic categories that must turn-around to get this country back on it's feet are housing and energy prices.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.
Quite a few folks responded to my column entitled "The Credit Collapse Blame Game." And that's a good thing. It's always nice to know someone's listening, whether you agree with me or not. In response to your comments, I have a couple follow-up notes of my own.
First, a number of readers told me that over the years they've made responsible financial decisions, thus they aren't to blame for the current crisis. Fair enough. I'm sure there are some who used sound judgment in making big-ticket decisions like purchasing a home. Just understand folks, you are no longer the majority of America. Sad but true, you're a rare breed, a miniscule percentage of the population. The vast majority of Americans are in debt, as a popular television commercial says, "up to their eyeballs." And the problem is not only their mortgage, but the tragedy extends to their car loans, credit cards, bank overdrafts and personal loans. Make no mistake; this all contributes to low liquidity and poor credit.
Secondly, too many people are taking a narrow and short-sighted view of this problem. By now, we all realize that the housing market plays a major role in this nation's economy. When the housing market is strong, we all benefit, both in business and in our personal lives. When housing is on life-support, however, everyone suffers, whether you're directly tied to the real estate industry or not.
Economists say this problem was 10 to15 maybe even 20 years in the making. So during these last 20 years, did you benefit at all from the full-bodied economy supported by the housing market? Did the loosening of credit and the free flow of money profit you at all in your business or personal life? You bet it did, and how it did could fill two more columns.
Here's the deal: You can't have your cake and eat it too. If, over the last decade or two, you benefited or even participated in a robust economy partially prompted by a superficially inflated housing market, then you were part of the problem. Now, we will all join together in being the solution.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.
These past few weeks we've witnessed a collapse of credit in this country like most of us have never seen. Former Federal Reserve Chief Alan Greenspan in a recent interview called it a "once-in-50-years event." Greenspan failed to mention that he's partially responsible. But you know what? We all are.
Before anyone starts finger pointing and blaming someone else for the nation's credit woes, perhaps we should follow the bouncing ball to see how this colossal collapse began. It started with us, with you and I wanting more house than we can afford each month. And mortgage lenders have been far too eager to lend us money for these high-priced homes because Wall Street kept coming up with new loan products requiring less documentation. Whether or not we could afford the loans really didn't seem to matter.
Real estate agents have had no problem selling buyers expensive homes and taking a high commission. Appraisers got more than a little loose with appraisals and homes were overvalued. Builders seized the market opportunity and built like crazy, raised prices and made a bundle. Then Wall Street said, "Sure, we'll buy risky loans, and we'll buy a lot of them." Investment banks got greedy, leveraging themselves to the hilt. Then, when investors stopped buying risky loans, those brokerage houses were left with no one to pay and bankruptcy. This, in turn, created panic in capital markets around the globe, pushing the world economyto the brink of ruin.
Now, I realize I've oversimplified, but here's the point: If you want to blame someone for the economic problems we're all suffering through, start by looking in the mirror and over at your neighbor. We're all responsible. Now it's time to fix it and it's going to hit us all right in the wallet.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.
From this title, you may already suspect that I'm going to suggest updating your bathrooms and kitchen. And you're right. If you plan to sell your home in the near future for top dollar, updating these spaces is a given. But what else can you do to boost your home's value? We'll get to that in a minute, but sometimes it's helpful to take a little quiz to find out what you do and do not know. Respond to each statement as either true or false.
1) Any remodeling project is a good one.
2) I can and I should do it myself.
3) Pools add value.
4) Always follow the latest design trends.
If you answered false to all of the above, you did well. Let's talk about why.
1) If you remodeled your living room to look like a concert hall in order to showcase your baby grand, that might be a problem if you try to sell and the potential buyers don't know the white keys from the black ones.
2) Some of us are more qualified than others to take on home remodeling projects. Know your limitations and leave it to the professionals when necessary.
3) If you live in a warm climate year round your home's value may benefit from a pool, but in Colorado they're costly to maintain and actually a liability.
4) Following the latest design trends may seem like the right thing now, but peach wallpaper may be out in a few years. Stick with neutral, easy-to-work-with finishes that are timeless.
So that's what not to do. Now let's explore projects that do add value to your home. Here's a quick list of potential projects to not only boost value but help your home sell quickly, too.
Refurbish or finish the basement
Put in a deck or patio
Do a major bath remodel
Paint, paint, paint
Add on to or finish an attic space
Build a second floor
Revive or remodel the kitchen
Replace siding
Get a new roof
Update the landscaping
Install new windows
Replace or repair flatwork (concrete)
Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at Dpolimino@fullerproperties.com and www.CoDreamHouse.com.
I love new technology, especially when I think I've found something cool that helps people sell their homes. Today, I'm excited about a company called Access U2 Global Property Info. It launched about three years ago, and here's the scoop. Let's say your home's for sale with a yard sign out front. Access U2 comes by and attaches an additional sign to it called a sign rider. On the rider is a toll-free phone number with a property code number. When someone drives by your home, sees the signs and wants more information, they call the toll-free number on the sign rider. Once they call from their cell phone, they get a voice prompt asking them to enter the property code and their phone number. Instantly, they'll receive a text message with details and a description of the property. If their cell phone supports new technology, the system will also send 10 photos and a video of the home. Your potential buyer can view all the photos of the house or take a virtual tour right from their cell phone while sitting in front of your property. To wrap things up, the service e-mails or texts the property's listing agent with the prospect's phone number so the agent can follow up.
No more property flyers and brochure boxes. How many times have you been frustrated wanting more information about a home, but the brochure box was empty? That's over. Even better, this service is eco-friendly. A real estate agent may print 100 flyers for a given listing. Using this technology on even 10 listings saves 1,000 flyers, so it's easy to see how an agent could save a tree each year.
For only $15 a month per listing, any agent can sign up to use Access U2 Global Property Info via their Web site at www.propertybyphone.com, or call 877-293-U2U2. To date, the company has over 1,000 listings.
Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.
I picked up the phone, said "hello," and the first words out of my fellow realtor's mouth were, "Wow, that's a low offer!" She was referring to the contract I sent over on behalf of a client earlier in the day. She genuinely seemed surprised, but I was puzzled by her comment. I wondered if she'd been working in the same real estate market I‘ve been working in for the last year.
Maybe I'm naïve, but I thought by now everyone should be used to receiving low purchase-price offers. I've had a beautiful, new construction, 2,500-square-foot ranch with a three-car garage on the market for the last six months. Even though it's listed for $370,000, we regularly received offers in the $310,000 range. I'm so used to seeing a buyer ask for $30,000, $40,000 or even $60,000 off the asking price it doesn't even make me blink.
For the last 18 months, it's been common to have low offers in some market segments. And I'm sure they'll keep coming in a while longer. How long? That will depend on a number of factors. For example, will inventory continue declining, giving buyers fewer choices? Can people get loans at reasonable rates? What will happen with the general economy?
Thankfully, low offers aren't as common in all market segments. Homes $300,000 and below can still bring full-price offers. Why? We'll discuss that issue in a column later this month.
If low ball offers are the norm for now, we might as well figure out how to handle them. If you're a seller, don't be offended and react from anger. It's not a personal insult. It's probably not even a direct reflection of your home. It's simply the market. If you're a buyer, this is your chance to perhaps get more home for your money. If you're an agent, remember this deal works both ways. You can't be surprised or taken back when you get a low offer on your listing, but then turn around and have no problem submitting low offers on other realtors' listings.
Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.
CALLING ALL AGENTS! I need some help. I am trying to help a builder friend of mine sell a new construction ranch in a subdivision called Eagle Meadow Estates in Dacono, CO. This is not an area of Colorado that is our expertise. So I am asking if any agents in and around Weld County to help me find a buyer for 4000 sq ft ranch, 4 bed, 4 bath, 3 car, on a 3/4 acre lot, around 500K to please call Dan at 303-522-1161 or reply to this blog. Click on the video tour below for more information.
There's no question that this summer's gas prices have taken a chunk out of everyone's wallet. We're no different. This is the first time I can remember that our family has made a concerted effort not to use the car. We've been walking and riding bikes to the nearby grocery store and using light rail for everything from the Rockies game to dinner downtown. The philosophy in our house is this: If we're going to drive, we make it count by planning well and accomplishing many things in one trip.
This same scenario is being played out with families all around the country, but the driving force is not just gas prices. It's also the cost of heating, air conditioning and using more energy-efficient lights and appliances. We're now living in an era where energy efficiency will be a major priority.
Earlier this summer, I interviewed Chris Lattimer, president of the Lattimer Group. They do consulting for real estate investment with emerging markets. Chris mentioned that one of the hottest investment areas right now is TOD, or Transit Orientated Development. TOD includes different types of mixed-use real estate that's located within a certain proximity to public transportation systems, hubs or stops. Chris is excited about this opportunity for his investors because he sees people using rapid transit more than ever before, and he has also seen people who previously wouldn't dream of moving closer to the city express interest in leaving the suburbs.
Does this signal the end of suburban sprawl? Just a few years ago it was cool or fashionable to live in a downtown loft. Now, it's convenient and necessary. Think about it for a moment ... you can walk outside your building, get on light rail and head to work. That evening you come home on light rail, stopping by the grocery store that happens to be on the street level of your building. For entertainment, you ride your bike to the park. Wait a minute. Doesn't that sound much like how it used to be for our grandparents...riding trains and bikes?
Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at Dpolimino@fullerproperties.com and www.CoDreamHouse.com.
Daniel Polimino
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