I believe that for Realtors, the most important aspect of their real estate business is the relationships Realtors have developed over the years. All the Internet Lead Generation, Farming, Open Houses, walking neighborhoods are a great way to add people to your database. Once they're in your database, it's really up to the Realtor to establish that relationship. Relationships are the real reason that keeps buyers and sellers calling.

The question is, can Internet Social Networking really help establish that relationship? I was thinking about using my Facebook page and advertising it on all my mailings and emails to my database. I don't mail or market myself to anyone I haven't met, so I feel comfortable on not getting any stalkers. The objective is to have people go to my Facebook page to see who I am, make comments and generally interact with me... establishing a relationship. What are your thoughts? Please let me know your thought!

I've been getting into social networking, mainly Facebook. I'm seeing it take on a life of its own. First, I started out be connecting with friends and family. Then, past real estate clients. Next thing I know, one of past real estate clients from Great Britain contacting me on Facebook and said they wanted to buy a condo in Scio Village Ann Arbor because the prices were so low, it made sence to buy one instead of renting a storage unit for thier furniture. Plus, they have a place to stay when they come to Ann Arbor. It occurred to me that social networking is just another way stay in touch with the people you meet. More importantly, it give all the people you meet an insight to your personality and really helps develop your relationship with them. That's what the real estate business is really all about... building relationships. Looking for comments and advice.

Here is the November 2008 Real Estate Market Report from Dave Jenks and Jay Papasan of Keller Williams Realty.  

Interview a couple of REALTORS to see who has the best marketing plan, networking capability and above all, be able to communicate with you on a regular basis to help you interpret what the buying market is doing. That way you can adjust your marketing accordingly to get it sold for the highest amount. The biggest thing is communication and the ability of the REALTOR to not only network with other local REALTORS, but with other REALTORS and BUYERS throughout the entire country. I firmly believe that one of the best things a good REALTOR can offer is his/her ability to network with other REALTORS throughout the country. There's an old saying in the real estate business... that Real Estate is a "local business". Well, that may be true, but Ann Arbor is a very international community and you may have the perfect BUYER coming from Asia, Europe or even good ol' New York New York! The bottom line is, it's up to your REALTOR to find BUYERS not only here in Ann Arbor, but elsewhere throughout the entire country and world! If they only concentrate on just the "local market", you may be missing the perfect BUYER.

How do you BUY more HOUSE in ANN ARBOR for less? Easy, get a LOWER INTEREST RATE!

I just got my Inman News report that the MORTGAGE volume increase was huge so far this January due to INTEREST RATES declining. That means HOME BUYERS are BUYING!! Looks ANN ARBOR REAL ESTATE has hit bottom here in ANN ARBOR MICHIGAN!! 

As an example: Typically we have been seeing 30 YEAR FIXED RATE MORTGAGES around 6%. Based on a $200,000 MORTGAGE, your payment would be $1200/mo. INTEREST RATES for a 30 YEAR FIXED RATE MORTGAGE averages 5.42% according to Inman New, Wednesday, January 16 2008. That means on $200,000 MORTGAGE, your PAYMENT would be $1125/mo. That's saving $75/mo!! Pretty good, eh? 

To some, $75/mo doesn't make that big of a difference. Fair enough. But, with that lower INTEREST RATE, your BUYING power goes up to $213,000 for the same $1200/mo!! You can BUY alot more HOUSE with that simple little $13,000 increase!!!

The bottom line: Get out there and start BUYING HOMES IN ANN ARBOR, SALINE, DEXTER, YPSILANTI, CANTON, PLYMOUTH, NOVI, NORTHVILLE, SOUTH LYON or where ever you want to go. Take advantage of these LOW INTEREST RATES!!

For more information on the HOUSING MARKET in the ANN ARBOR AREA, please search for available HOMES at www.jamesgiacalone.com.

JAMES GIACALONE

KELLER WILLIAMS REALTY

ANN ARBOR, MI

(734) 975-9246

As I was telling a client (we'll call him Bob) today, this is the best time in real estate I have ever seen for buyers to buy a new house in Ann Arbor, Saline, Dexter, Ypsilanti, Plymouth, Canton, Novi, Northville and even Ypsilanti. Here were some of his objections. The market is not good, my job is not secure, don't know if I am even going to be here in 5 years. I said "great", then "let's look at the cost of not buying right now.

Is the market really "not good"? "We'll that depends on your perspective" I said to Bob.

Let's face it, Bob, if you're a seller, you're going to take a hit. Market values are down approximately 10% overall from last year and have dramatically decreased from 2 years ago. Obviously, that means if you are a buyer in the Ann Arbor real estate housing market, you are going to get one heck of deal! "But, what about the sellers?? How can taking less money for your home translate into a good thing?" Bob asked.  "YOU WILL SAVE EVEN MORE ON YOUR NEXT PURCHASE!!!" I exclaimed.  

Here's an easy example.... assume the market values are down 10% overall.  Bob has a $200,000 house to sell. But, because the market value is down 10%, it sells for only $180,000. Now, Bob wants to buy a $300,000. Well guess what? That house is also down 10%, so Bob buys it for only $270,000! So, even though Bob got $20,000 less on the sale of his house, he saved $30,000 on the purchase of the new house.... that means Bob actually made $10,000 on the transaction!!! Waahoo!! :-0 Did I mention Bob also got one heck of a deal on a 30 year fixed rate mortgage as well!

Bob looked at me with much skeptism.... "you're just being a salesmen putting a good spin on a bad subject." he said. But, am I really? These are the facts. You can't deny them, I'm just pointing them out to you.

"Ok" Bob said with indignation. "But, my job is not very secure right." Well, that may be true, it's hard for everyone right now. But, let's again look at the facts, I told him.  "You've been a stable employee now for 2 years. You don't make great money, but it's decent money, not much in savings, but you're paying your bills on time. In fact your credit score is over 660" (better than the average bear I might add). The point is, no one knows when thier time will come. Is that a good reason to deny yourself one of the best property investments of your life and the American Dream? Will your job be more secure next year? Or in 2 years, 3 years, 4 more years when the prices have risen again (and home price will rise again, they always have rebounded and home prices will rebound again). I told Bob, "if you bought a new house now, you could sell it when its at the top of the market value and make a huge profit when you move out of the State of Michigan!!" (no please don't do that... we need as many tax payers as we can get)

"Ok, Ok... now you are sounding like a slick salesmen who claims to be the greatest real estate consultant and advisor... let alone Realtor!" Pardon me while I take my tongue out of my cheek... ;-)

"At the risk of sounding like a slick talk salesman, I'm just being honest with you Bob. Sometimes an honest piece of real estate advice sounds a little different than what we normally hear. But, it is really all you need when gathering the all the facts that influence your decision." That's all I'm doing... pointing out the facts. Search the entire Multi Listing Service yourself right from my website  www.jamesgiacalone.com . You'll see for yourself what kind of deals are out there.

So, what are the cost of not buying in this market? Well, just look at what we talked about and make your own decision, Bob.... 

Buona notte.

Well, anyone who knows me, knows I love to talk real estate. So, a friend of mine suggested to start a blog and just start talking to people!! I'm new at this, so any advice on how to 'blog' would be great!!

I am a real estate professional. I know what I know and I know what I don't. And, I know the difference between the two. When I know, I'll tell you. When I don't know, I'll go find out. My top priority is that you always get the right answer. I'm a professional.  How's that for a start?