Mark Hoeft's Blog

What If All The Real Estate Headlines Are Wrong?

Mark Hoeft (Mark Hoeft Real Estate Broker) — Sun, 29 Jun 2008 07:44:54 -0700

What If All The Real Estate Headlines Are Wrong?

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OK, time for a 30-second real estate market quiz. Quick...which is the more exciting scenario?

- A man slowly walks down a flight of stairs, sometimes pausing or retracing his steps until he reaches a floor. After trudging along for while, he notices another staircase and begins ascending, occasionally pausing or taking a step back before methodically proceeding upward.

- Ignoring the safety railing, a man hurtles down a terrifically high flight of stairs. He hurries recklessly downward, dodging obstacles in his path as he goes. He suddenly cries out as he loses his footing, sails through the air, tumbles down several flights and crashes through a banister. The badly injured man is bandaged from head to toe and attached to a variety of complex medical devices that monitor his vital signs. Experts debate his condition but agree that the situation is dire and prospects for recovery are uncertain.

...and that's why more headlines say "Home values off the cliff in Phoenix, Miami and Las Vegas" than "Things aren't bad in Seattle, Portland and Charlotte." Most readers just find sensational headlines more interesting. And while they may help sell newspapers, they also scare buyers and sellers to the sidelines, though the news may be very positive for home buyers in particular.

Add public relations acumen to the long list of skills today's real estate professionals need to be successful. Real estate is a long-term investment, but it's easy to lose sight of that fact when current conditions and recovery prospects seem grim. As REAL Trends Editor Steve Murray* says:

"Rather than say 'it is a good time to buy,' sales professionals need to present facts, figures and charts that show it clearly. The time where housing consumers took our word for this has likely come to a close."

The picture isn't all doom and gloom. Real estate pros can make a convincing case that, for many homebuyers, now is a great time to buy. But you're going to need some proof. Get listing data, neighborhood information and compile your own reports on market conditions. Be able to explain market conditions with visual summaries. Provide leave-behind reports and materials homebuyers can reference later.

So what's needed in today's market? In the form of a classified ad, it might look something like this:

Wanted: Real estate professional with public relations skills, local expertise and nerves of steel. Strong understanding of industry trends affecting buyers, sellers and homeowners. Must be able to recognize risks and opportunities inherent in shifting markets, provide candid assessments and expert guidance. Ability to troubleshoot and deliver creative solutions for skeptical consumers. Positive mindset and understanding of buyer and seller psychology required.

Who's on board?

Author note: If you see Steve Murray on the agenda at an industry event, check him out. You can learn more about real estate market conditions in one session than reading real estate headlines for six months.

By Charles Warnock - Marketing Director at eNeighborhoods and Homes.com.

Not the Bottom AGAIN ...... Its here... No it's not....Yes it IS.....NO....YES

Mark Hoeft (Mark Hoeft Real Estate Broker) — Sat, 24 May 2008 09:20:42 -0700

Again the conversation with some of my clients (investors) in Pensacola, Florida. I am going to wait for the Bottom of the Market. They are not from Pensacola so the pricing of similar properies in their area is much lower. This now skews their idea of our market for like properties!

Comment #1- We can by a 3 bedroom 2 bath home in a working class neighborhood for $50,000.00 here at home, I do not want to pay $75,000.00 for a simila home in Pensacola 2 blocks from the water, because I think the price will continue to drop. The property had 4 offers on it the First day and SOLD for $82,000.

We all know what the bottom IS..........Think about it.......... Yes you do...

The Bottom is ZERO in every market (Thanks Larry) and we do not know where the Top is every market is different but lets say the TOP is infinite.

We now the Top and the Bottom, the question the the client now becomes......Where do you want to be between ZERO and INFINITITY?

To Infinitity and Beyond..."Buzz Lightyear"

May 23, 2008 Existing-Home Sales Dip 1% in April

Mark Hoeft (Mark Hoeft Real Estate Broker) — Fri, 23 May 2008 16:01:12 -0700

Daily Real Estate News | May 23, 2008Existing-Home Sales Dip 1% in April

Existing-home sales slowed in April, partly because tight lending guidelines hampered home buyers.

But there are some things to be happy about: A greater number of market areas are showing sales gains from a year ago, and a recent reversal in mortgage policy means the market is better positioned for a turnaround, according to the NATIONAL ASSOCIATION OF REALTORS®.

Existing-home sales - including single-family, townhomes, condominiums and co-ops - declined 1.0 percent to a seasonally adjusted annual rate of 4.89 million units in April from an upwardly revised pace of 4.94 million in March, and are 17.5 percent below the 5.93 million-unit level in April 2007.

More Favorable Mortgage Options Will Help

With less-restrictive mortgage options opening up for buyers, "we could see an upturn in home sales this summer," says NAR President Richard F. Gaylord.

Last week, Freddie Mac and Fannie Mae announced that they were eliminating their "declining market" policies, effective June 1. NAR and others believed the policy was bad for the housing market because it discouraged consumers from buying homes in areas hardest-hit by foreclosures.

"This means consumers across the country will have access to safe, affordable financing with down payments of only 5 percent on most mortgages, with 100 percent financing available on some loan products."

Lawrence Yun, NAR chief economist, said eliminating restrictive policies should be a big help to home buyers. "I would encourage buyers who were disappointed by poor mortgage options to take another look at the market because the lending changes are significant," he said. "Also, a recent notable drop in interest rates on conforming jumbo loans will help consumers in high-cost markets like California and New York."

National Prices, Inventory Levels

Nationally, the median existing-home price for all housing types was $202,300 in April, which is 8.0 percent below a year ago when the median was $219,900. Because the slowdown in sales from a year ago is greatest in high-cost areas, there is a downward distortion to the national median with relatively more sales in low- and moderate-priced markets.

Total housing inventory at the end of April rose 10.5 percent to 4.55 million existing homes available for sale, which represents an 11.2-month supply at the current sales pace, up from a 10.0-month supply in March.

Mortgage rates declined, according to Freddie Mac. The national average commitment rate for a 30-year, conventional, fixed-rate mortgage slipped to 5.92 percent in April from 5.97 percent in March; the rate was 6.18 percent in April 2007.

Single-family home sales slipped 0.5 percent to a seasonally adjusted annual rate of 4.34 million in April from 4.36 million in March, and are 16.1 percent below the 5.17 million-unit level recorded one year ago. The median existing single-family home price was $200,700 in April, down 8.5 percent from April 2007.

Existing condominium and co-op sales fell 5.2 percent to a seasonally adjusted annual rate of 550,000 units in April from 580,000 in March, and are 27.9 percent below the 763,000-unit pace in April 2007. The median existing condo price was $214,900 in April, which is 3.7 percent below a year ago.

Regional Sales Volume, Prices

The unusual mix of market conditions around the country continues, but areas showing healthy price gains include Greenville, S.C., and Springfield, Mo., both with solid local economies. "On the other hand, some markets like San Diego, Calif., and Fort Myers, Fla., are experiencing rising sales after sudden double-digit drops in local home prices, so lower prices and low interest rates are starting to generate results," Yun said.

In the West, existing-home sales rose 6.4 percent in April to a level of 1.00 million but are 15.3 percent below a year ago. The median price in the West was $285,700, which is 16.7 percent lower than April 2007.

In the South, existing-home sales were unchanged from March at an annual rate of 1.92 million in April, but are 18.6 percent below April 2007. The median price in the South was $170,800, down 5.1 percent from a year ago.

In the Northeast, existing-home sales fell 4.4 percent to an annual pace of 870,000 in April, and are 14.7 percent below a year ago. The median price in the Northeast was $262,000, which is 7.7 percent below April 2007.

In the Midwest, existing-home sales were at an annual rate of 1.10 million in April, which is 6.0 below March and 19.7 percent lower than April 2007. The median price in the Midwest was $159,100, down 2.9 percent from April 2007.

- NAR

Great start to using a Profitable Formula

Mark Hoeft (Mark Hoeft Real Estate Broker) — Wed, 14 May 2008 18:37:37 -0700

Real Estate Investing 101: Purchasing Rentable Properties
By: Eric Bramlett

Purchasing real estate with the intent of turning it into an apartment or a house for rent can be an excellent financial decision. When you buy a property with the intent of renting it, however, there are several factors you should take into consideration in order to guarantee the best chance of successfully finding a tenant and making money from your investment.

Assessing Your Goals Before Buying

Before you buy real estate with the intent of renting it out, you need to determine what your goals will be. For example, do you want to create a steady source of income for many years to come or are you looking to sell the real estate for a profit later? If you are looking for a property that you can sell for a profit later, you will want to purchase something that is inexpensive that you can fix up and sell later.

Determining If Your Real Estate Will Be Your Home As Well

When you get into the rental business, you will also need to decide whether or not you will live in the apartment building or housing unit that you purchase. If you do decide to live on that piece of real estate, you will probably be able to get your entire mortgage paid off by your tenants. As such, you will basically be living in your home for free. At the same time, you might prefer to distance yourself from your tenants. In this case, living in the same apartment building or housing unit may not be so desirable.

Choosing the Type of Real Estate You Will Buy

When deciding on the type of real estate you are going to buy, you will need to take some factors into consideration. For example, single-family houses are usually less expensive than apartment complexes since they are so much smaller. At the same time, a house will bring in less income than an apartment complex. Keep in mind that an apartment complex will often require more upkeep than a house. Take all of these factors into consideration when deciding on the type of real estate you plan to invest in.

Picking the Right Location for Your Investment

Obviously, when you buy real estate with the intention of renting it out, you want to find property that is desirable. Otherwise, you will have a difficult time finding someone willing to rent it out from you. Therefore, you should select real estate that is in an area where people want to live.

In order to determine if the property is in a good area, consider the available shopping and activities that are near to the property. You should also consider the schools and the crime rate, as well as the general attractiveness of the neighborhood.

Unless you are looking for a fixer-upper and you have the time to fix up the home or apartment, you should look for a place that is in good shape. By purchasing a well maintained piece of property in a good location and within your budget, you will be certain to start a solid career as a landlord.

About the Author

Eric Bramlett: Eric Bramlett is the Broker and co-owner of One Source Realty in Austin Texas. Visit Eric's Austin Texas Real Estate Guide, visit his Austin Texas Real Estate company's website, and his Austin Condos & Lofts Guide. He has seen considerable success in real estat and looks forward to many more years in the business. Eric currently invests, renovates, and develops real estate in the Greater Austin Texas Market. He spends his time working with select clients, helps his new agents get started in their real estate careers, helps his experienced agents progress their careers to the next level, and when he has time...he takes his dogs to the lake.

Importance of quality over quanity Marketing. Money is tight.

Mark Hoeft (Mark Hoeft Real Estate Broker) — Wed, 14 May 2008 18:31:45 -0700

How to Make Your First Impression Last
By: Karen Saunders

Let me tell you about the last home show I went to.

It was your typical home show with lots of booths, pretty displays, and loads of freebies. But I wasn't interested in all that. I was on a mission. I needed a landscaping contractor to take my dismal, ordinary backyard and turn it into Fantasy Island. Not too much to ask, right?

I was prepared to spend all day, if necessary, talking with every last landscaping contractor there in order to find someone to make my dream come true. So I grabbed a tall mocha on the way in, took a plastic goodie bag from the entry table, and set off to find me a contractor.

Not as easy as it sounds. Everyone seemed to have a great deal going, and the displays were all so gorgeous and pretty soon all the people I met seemed to blend together! On the upside, I did collect a lot of pretty brochures to put in my bag, not to mention some nifty water bottles and key chains.

When I got home later that evening, I slipped on some comfy clothes, sat down with a cup of hot tea, and stared sorting through all the business cards I'd collected. But, I had so many cards it was hard to remember who was who! Which one was the guy that specialized in outdoor kitchens? And the one that did those waterfall scenes, which one was that? Ahh!

I don't remember what every one said. I just remember what I liked. But it was hard to tell anyone apart from this stack of cards! Is there a way to set yourself apart from the crowd with just your business card?

Absolutely! A business card, while small in size, is your big weapon. Here are 7 top notch tips to keep your card out of the wastebasket and into the rolodex! (I'll give you my other 7 in the next article)

Choose a cover stock with some meat on it! Ever pick up a card that is just wimpy? You know what I mean, the kind that bends right in your hand, and by the time you get back to the office it's a crumpled mess. It's cheap paper, and shows other people that you might be cheap in your business practices, too. Go see your printer, get a free swatch book, and feel the difference for yourself. This is your first impression, so make it a strong one!
Create a focal point-something that really stands out-to draw the reader's eye. Maybe something in a contrasting color or a unique graphic. Use your imagination.
Your logo should be clear and strong, and should still look great when it's reduced down to fit on a card. Think about that when you're designing your logo, because it should be the same on every print item that you put out.
Remember, in marketing less is more. Don't make your reader work by having a lot of text to read. Use white space to balance the layout and just give enough information so they know what your specialty is.
Use a highlight color sparingly and only on the one main message you want to get across. Too much, and it loses its effectiveness.
Also, on the highlight color-make sure the color fits with the type of business you have. I can't tell you how many of those landscaping cards used red or brown, when green would have been perfect!
You should have no more than two type fonts on your cards, which also include their "families"-bold, italics, and bold italics.

OK, now you are all set to let your little business card do big things for your business! If it's the first impression people get about you, you want to make sure it's a memorable one. Your success depends on it!

Florida's hurricane-safety program for homes on track to exceed goal

Mark Hoeft (Mark Hoeft Real Estate Broker) — Wed, 14 May 2008 13:45:02 -0700

Florida's hurricane-safety program for homes on track to exceed goal

The My Safe Florida Home Program, which provides qualified homeowners with state grants toward making their homes more hurricane-resistant, is expected to surpass its projected goal of assisting 35,000 state residents before it ends May 31, Florida Chief Financial Officer Alex Sink said Tuesday.

In making the announcement, officials said residents still have two weeks to apply for the grants. The state program provides matching grants for up to $5,000 to help homeowners improve their homes to protect them from hurricane-force winds, said Kevin Cate, a spokesman for the Department of Financial Services.

Homeowners whose homes have undergone wind certification and hurricane mitigation inspections by the Department of Financial Services can apply for matching grants.

The first-come, first-served program will transition to an inspection-focused program beginning this June offering free wind inspections by qualified hurricane mitigation inspectors. "With hurricane season less than one month away, I encourage Floridians to sign up for a free wind inspection to learn how to harden their homes against hurricane damage," Sink said in a statement.

The state Legislature approved the My Safe Florida Home Program last year to help Floridians reduce hurricane damage.

The program has approved 32,292 homeowners for mitigation grants and paid 6,930 grants totaling more than $22.4 million. More than 222,981 wind inspections have been provided free to homeowners, and state officials expect to complete wind inspections for at least 400,000 single-family residential properties before June 30, 2009.

The upgrades have helped more than half of the homeowners who have received a wind inspection get discounts on property insurance premiums. Homeowners are saving $217 on average on their home insurance.

This should be a front page story in every news paper and #1 on CNN

Mark Hoeft (Mark Hoeft Real Estate Broker) — Wed, 14 May 2008 13:37:51 -0700

FOR IMMEDIATE RELEASE

TUESDAY, MAY 13, 2008, AT 8:30 A.M. EDT

Aneta Lukasik / Timothy Winters CB08-70
Service Sector Statistics Division
(301) 763-2713

ADVANCE MONTHLY SALES FOR RETAIL TRADE AND FOOD SERVICES

APRIL 2008

Notice of Revision: Monthly retail sales and inventories were revised based on the results of the 2006 Annual Retail Trade Survey. The Annual Revision of Monthly Retail and Food Services showing revised data can be found on our website at http://www.census.gov/mrts/www/annrev08.html.

The U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for April, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $378.1 billion, a decrease of 0.2 percent (±0.5%)* from the previous month and 2.0 percent (±0.7%) above April 2007. Total sales for the February through April 2008 period were up 2.2 percent (±0.5%) from the same period a year ago. The February to March 2008 percent change was unrevised from 0.2 percent (±0.2%)*.

Retail trade sales were down 0.3 percent (±0.7%)* from March 2008, but were 1.8 percent (±0.7%) above last year. Gasoline station sales were up 16.3 percent (±2.6%) from April 2007 and sales of food and beverage stores were up 5.7 percent (±0.8%) from last year.

The advance estimates are based on a subsample of the Census Bureau's full retail and food services sample. A stratified random sampling method is used to select approximately 5,000 retail and food services firms whose sales are then weighted and benchmarked to represent the complete universe of over three million retail and food services firms. Responding firms account for approximately 65% of the MARTS dollar volume estimate. For an explanation of the measures of sampling variability included in this report, please see the Reliability of Estimates section on the last page of this publication.

Percent Change in Retail and Food Services Sales

(Estimates adjusted for seasonal variation, holiday, and trading-day differences, but not for price changes)

The Advance Monthly Retail Sales for Retail and Food Services for April is scheduled to be released May 13, 2008 at 8:30 a.m. EDT.

For information, visit the Census Bureau's Web site at <http://www.census.gov/retail>. This report is also available the day of issue through the Department of Commerce's STAT-USA (202-482-1986).

Pensacola Florida Vistors Guide

Mark Hoeft (Mark Hoeft Real Estate Broker) — Wed, 14 May 2008 10:09:19 -0700

This is a great link to Pensacola Beach, Historic Pensacola Florida and the surrounding area. This Pensacola Visitors guide will give you several options on things to do while you are at Pensacola Beach and in the Pensacola and the surrounding area, along with great Resturants, Museums, National Air Museum, the home of the Blue Angels there is so much useful information, please check it out. It has it all.

Click on the Picture for More Information

Is this Good News?

Mark Hoeft (Mark Hoeft Real Estate Broker) — Wed, 14 May 2008 09:42:19 -0700

Some people believe that this is the only way to recover from this problem we have. Is this good news?

House Passes Sweeping Legislation to Rescue Homeowners

The U.S. House of Representatives was very busy Thursday, passing The American Housing Rescue and Foreclosure Prevention Act (H.R. 3221) by a vote of 266 to 154, and The Neighborhood Stabilization Act (H.R. 5818) by a vote of 239-188.

This sweeping legislation is Congress' most comprehensive attempt yet to address foreclosures in the housing market. The bill includes versions of H.R. 5830, H.R. 1852, H.R. 1427, H.R. 5579, and amendments to Preserving the American Dream for Our Nation's Veterans. The plan is projected to help roughly 500,000 borrowers at a cost of $2.7 billion over five years.

It's important to note that these measures were not voted into law and still await Senate action. If passed by the Senate, it would still need the approval of the President who has reportedly threatened to veto both bills.

To learn more about this legislation, here is a summary from the House Committee on Financial Services.

Some believe that the free market, will make the necasary adjustments and it will be self corrected?

What do you think? I have always believed Less Government is a Good Government. Wasn't it the governments suggestion that we make homes more affordable and help to get more home owners the reason we are in this position anyway.. Relax the lending standards so more people can own homes.

Gulf Breeze Florida Waterfront Lot on Deep Water Canal

Mark Hoeft (Mark Hoeft Real Estate Broker) — Tue, 13 May 2008 22:09:38 -0700

Price $499,900.00

HUGE PRICE Reduction!!! You have to check out this Beautiful Deep Water lot on the San Marco Canal in Gulf Breeze Florida with views of the Santa Rosa Sound the canal is protected and allows for a deep water or large Sail Boat Please click on the Picture to se more pictures of the views. The lot is cleared and ready to build. Canal is maintained and dredged in an agreement with Corp of Engineers.