JOHN 'S REAL ESTAE BLOG

The Great Bail Out!!!!

2008-09-25T18:07:01Z

Nobody likes the idea of Government bailing out large corporations at tax payers expense. I am hearing that it is not a bailout but a loan guaranteed by the Federal Government to get us out of the mess we are in. Anyway you choose to look at it, a bailout is a bailout. My question is it necessary for us to do so at this time? Here is my take.

Everyone is suffering and that is the truth. Banks are in freeze mode. They have no money to lend since they are unable to sell to Fannie Mae and Freddie Mac. The result:

Lending standards are so tight that it is very difficult for prospective home owners, even those with good credit, are finding it extremely difficult to get a mortgage.

Realtor are fleeing the profession in droves. It has become very difficulty for them to feed their families.

Builders can't build because they have no source of financing.

All sectors that provide services to Builders, Banks, Realtors home owners and prospective home owners are hurting. Isn't this a recipee for disaster?

Therefore, would you say that the bailout is a good idea or not? For those of you who don't like the word bailout you may substitute it RESCUE PACKAGE. How's that?

THROW OUT THE LIFE LINE!!

2008-09-22T23:26:24Z

President Bush has proposed a $700 billion bail out for Wall Street, Fannie Mae, Freddie Mac, AIG and only God knows who else is waiting in the wings. What about main street? Why are so many good people losing their jobs? What is being done to help tax payers? The hurt is great but the need is greater. Where is the life line for main street America?

Is any of this huge outlay of $700 billion going towards job creation? If no, why not? I hear of a mortgage bailout thrown somewhere into the mix of this huge outlay of tax payers money. Befoe I get into economic policy let me divert for a second to talk about job creation. Unless we start creating real jobs we can only expect our economic situation to get worse. The companies that we invest our 401 K and other retirement vehicles in will not grow our money but yet we will be saddled with paying them hefty management fees thus reducing one's nest egg. Job creation is the vehicle that is going to get us out of this mess.

Like it or not the American people will always nedd a place to live. The state of the Real Estate Market needs to be given greater focus. We need to stop the blame game and work on finding solutions to mess that we find ourselves in. ( To be continued)

STAGING

2008-08-14T15:23:25Z

As we all know, we are in a changing market and need to change the way we approach our business. No longer do we have buyers and sellers beating down our doors instead agents go in search of qualified buyers and motivated sellers.

Listing agents are becoming more creative and are staging more and more listings. That is all good but have you seen some of the staging IMPERSONATIONS out there? There is a good old statement that says "leave to the experts." Let's be real!! Do you agree that some homes are better left as is than be subjected to horror, sorry, I should say, Make Over that is meted out to them?

I believe that it is sometimes good to give our buyers a blank canvas and allow them the lattitude to walk into a home and mentally sketch how their furniture will look and fit into the space. What do you think?

Life As A Realtor

2008-07-03T17:20:45Z

Life as a Realtor- the way we knew or have known it- has changed. I hear Agents talk about how difficult it is to get sellers to be more realistic about the asking price on their homes, how hard it is to get buyers off the fence and ways to reduce Taxi Service to their clients. Lets take a moment to examine each.

The neighbor down the block sold her home 3 years ago for 400K so your seller who is convinced that his home is nicer, has more curb appeal and upgrades is unmoved from his asking price today of $475K. What do you do since you want to have that listing? I can tell what will happen to you. You will spend time, effort and money marketing a home that will not sell. Plus you run the risk of have that seller ruin your reputation in the neighborhood about how lousy a job you did marketing his home. If the home is overpriced, it is okay to say no to the seller and walk away. He will call in 9 months begging for your help.

Second, we need to educate our buyers that yes, the market is soft but no, sellers are not giving away their homes. Don't get me wrong, everyone loves a bargain. There is a huge difference between a bargain and a give away and that is what many of our buyers need to understand. We need to be the educators of our buyers. (This blog is getting lengthy and will be continued in part II).

Realtors Help Our Veterians!!!!

2008-07-03T16:48:57Z

Our Veterans are working very hard at home and overseas to protect our interest and we need to work equally hard at home to protect their interest. Recently I have been hearing of veterians who return home only to discover that their homes have been foreclosed on. I found it very difficult to assimilate until yesterday when I recceived a referral call from a vet who recently returned from war and found a letter stating that his home is in foreclosure. Well the letter he described is 3 months old and a check of the tax records indicate that the owner of record on the said property is now the Bank.

This poor guy has lost his home and all his possessions in it while serving to protect National Interest. How about his interest? I instructed him to get in touch with his mortgage company and find out what has happened with his home. I am committed to hepling him find a home free of service charges.

Do you have any suggestions to offer regarding what we as realtors can do to help our returning veterans who find themselves in this situation?

Buy Foreclosures?

2008-04-05T20:02:52Z

Much is said and much has been said about the huge number of foreclosures that are saturating the market. Banks are becoming less and less inclined to take on more foreclosures. In the past the foreclosure arena was dominated and controlled by investors but today even some investors are holding back from making new purchases while the savvy ones are gobbling up everything they can get their hands on. Take heart there is a window of opportunity for the rest of society that was unveiled just this past week.

The US Senate passed a bill that if signed by the President, will provide incentives for regular home seekers to purchase foreclosed homes. The question then arises, should Realtors and real estate agents expose their clients and buyers to this new opportunity? I say yes. It has been good for investors and it can be good for home seekers as well. However one must be very careful when buying foreclosures. There are many, many hidden dangers and defects that might not be visible to the eye. My advice to buyers is to first consult with a real estate professional who is acquainted with the foreclosure market.

We have to be realistic and we must use common sense in what we do. For example, if my car breaks down, the person I am going to call is my mechanic. I am not going to call my dentist he is not an expert on cars. Banks as well as other lenders have Realtors, Appraisers and Attorneys working for them. The least home buyers should do to protect their interest is equipt themselves with the services of a Realtor.

The Senate has acted, What Now?

2008-04-03T16:49:26Z

In yesterday's blog I solicited information on what's happening with the Government's stimulus package. Well, home builders stand to benefit. They will get to write off their losses and start building again. But will they? Every day I am hearing of more and more builders who are packing it in or are seriously considering doing so.

I hear that there is a proposal to give tax credits to Home buyers who buy foreclosed homes. My question is , are these the same poll of buyers who were recently in foreclosure? If so, lenders will need to listen since so many lenders are asking for credit scores of 680 and above. No one wants to see boarded up foreclosed homes overrun with tall grass and weeds in their neighborhoods but is this the solution?Even states and local governments will be given funds to deal with foreclosures at the State and local levels.

Everything sounds good but I have a burning question which still remains unanswered. What provisions are being made for those home owners who struggle from month to month to make their payments on time, shouldn't they be rewarded as well?

What will happen with this bill once it gets to the House of Representatives? Then, what happens when it gets to the President's desk? Will he sign it or will he ask that changes be made? After all is said and done when will real relief trickle down to the rank and file of our society? This is definitely food for thought. More to follow.

What Next?

2008-04-02T21:59:44Z

The sound bites may sound good but is there any substance? The word around town is that Senate Democrats and Republicans are cooperating on a bill that will provide a stimulus in the market. Can these two bickering groups forsake their fighting ways and cooperate for the betterment of the Nation? Let's just suppose they they are successful, how long will it take to bring relief, if any to hurting consumers? Who will really benefit from this stimulus? There are so many questions and such few answers. Does anyone have information on what's going on?

I was approached by a scholarly gentleman two day ago and he had a statement and a question for me. His observation was that the Government has resorted to bailing out private companies ( I believe that he was referring to Bear Sterns) but her wanted to know what is being done to help all of those homeowners who are sacrificing month after month, eating rice and beans in order to make the monthly mortgage payment ON TIME?

This was a good question. The reckless and irresponsible are to be rewarded but what about the responsible home owners who purchased between 2004 and 2007? What can be done to help the good guys with adjustable rate mortgages?

Is the Economy hurting the Real Estate Market? Part I

2008-03-21T05:53:52Z

I hear some people saying the real estate market is hurting the economy. Others are saying the economy is hurting real estate. So, is it the economy that's hurting real estate or real estate hurting the economy? I think we are missing an important commodity and that is OIL. Does anyone remember that only a few years ago that oil was $30.00 per barrel. Today it is more than $100.00 per barrel. That's an increase of more than 300%. Who is paying for it? Every consumer. We appear to be totally dependant on OPEC and OPEC is sucking every penny from our pockets and it is going to get worse before it gets better. They have refused to increase output which could lead to lower prices at the pump. As price of gas increase so does the cost of goods and services so let's look at our net effect. Higher prices at the pump, higher prices for goods and services, fewer jobs being created ( some are lost to outsourcing), more corporate mergers (means of survival) and layoffs in the job market. If we are spending most of our disposable income on gas what's left to buy that new house? When conditions are so bad that the government has to bail out a non government corporation such as Bear Sterns people are forced to stop and ask, What next? Uncertainty is hurting both the real estate market and the economy. I heard that OPEC is thinking of pegging the price of oil to the Euro and away from the dollar!!!!

THE OTHER MARKET SECTOR!!!!

2008-03-06T19:46:00Z

In my blog yesterday I talked about buyers, sellers and agents and the need to be rational and realistic for the market to work. Well I did hear from some of you regarding Lenders, Rates and Foreclosures but I am only going to address rates and say something about foreclosures.

Interest rates have bounced up one day then down the next. There is definite instability in the market at this time and that's something we have to deal with. By the way, even if rates go up, they are still very attractive. A trip down memory lane reminds me that back in the 1980's rates were in the teens and you had to come up with 20% downpayment. Today you can get rates at about 6% - 7% with little or no downpayment and that's pretty good. I believe that today's interest rates are attractive and should motivate buyers to go out and buy homes. Foreclosures are what they are and can be a very good investment for the prudent buyer or investor.

SPRING IS HERE BUT WHAT ARE WE DOING!!!!!

2008-03-05T19:26:19Z

Warmer temperatures bring the birds, the bees, the critters, buyers and sellers out of hibernation. I think that agents need to become proactive in educating their buyers and sellers. Why? Sellers need to know their market. Sellers who have owned their homes for four or more years need to be realistic with pricing. It is no longer possible to receive the same mark up that the neighbor accross the street got in 2005 for a similiar home. Times have changed and we as Realtors need to educate our sellers to the realization that a shifting market will definitely require a shift in mindset.

Buyers have become professional bargain hunters. Every home is viewed as a bargin basement opportunity or else there is no deal. Well sellers are attempting to sell their homes not give them away. By holding back, buyers are foregoing huge opportunities in the market. It is my opinion that the best time to buy is NOW, not tomorrow, not next week or next month. Procrastinating comes with a price. As the market gains momentum, prices as well as values will rise. The time for action is NOW.

SPRING

2008-03-04T19:30:02Z

Well, Daylight savings time begins on Sunday March 9th. Will this signal the end of winter hibernation for our buyers? What is the pulse out there?

The Real Estate Market

2008-02-29T17:26:04Z

Who or What is really hurting the market? Is it home owners? Lenders? Investors? or the Government? Unless we identify the source of our problem and correct it we will not see the market surge that we are hoping for.

Project Lifeline

2008-02-29T17:06:13Z

Recently there has been much talk about government doing something to reduce the number of foreclosures in the market. "Project Lifeline" was launched with the cooperation of some lenders. What has happened? Are real people being helped? Do Realtors have information to share with their clients who purchased homes through them? If so, we need to be sharing this info.

What's going on in Fayette County

2008-02-29T16:48:18Z

I believe it was the October 2005 issue of Money Magazine that touted one of the cities in Fayette County Georgia as the 6th best place in the nation to live. Recently I have been hearing so much negative vibes about Fayette. I need some positive news and attribues to give to my out of town buyers. Let's talk.

Saving Homes and Communities

2008-02-26T11:03:45Z

Help! Help! Home owners on the verge of losing their homes need to reach out and get the help they need before losing their homes to foreclosure. Help is available but I believe people are too embarrased, ashamed or fearful to reach out for help. Communities, Community Groups, Realtors and even the Chamber of Commerce need to become proactive in reaching out to homeowners facing foreclosure. Bear in mind that every foreclosed home affects the value of the other homes in the community. We are all affected and need to get involved.