Bob's Blog

PURPLE HOUSE FOR SALE

Bob Ashauer (RE/MAX Alliance) — Thu, 30 Jun 2011 14:00:08 -0700

Picture it - a big two story house, on a hill, painted a deep purple, with red trim and so very, very ugly - standing like a beacon for all to see - with a "for sale" sign.

IN THIS MARKET, A PURPLE HOUSE WILL NOT SELL!

Sure, somewhere out there might be a buyer just looking for a purple house - right! Or someone who realizes it's just paint - right! We have often said in the past there is a buyer out there for every home. Granted, but in today's market, loaded with inventory and scarce with buyers, the sad truth is that not every home listed for sale will sell this year. The purple house will be one of those that will not sell. OK, stubborn seller/dreamers, at least consider that painting a nice home purple to market it is a real dumb idea. Got the picture? Smile, but here is another real dumb idea.

IN THIS MARKET, AN OVER-PRICED HOME WILL NOT SELL!

Putting your home on the market with a listing price way above the market price is a lot like painting it purple to sell it. The listing price you advertise is the most important part of marketing today. Your home will sell at the market price. You need to advertise it at that price. Today's consumer is subject to the most powerful blitz of communications in the history of mankind. And the message? Prices of homes are down, and price matters most. No amount of snazzy advertising on your particular home can overcome that message. It's somewhat like, "Please ignore the ugly purple color, it's really a nice home!" Actually, I believe there is a new psychology at work recently. I have observed that today's buyers are much less likely to "just make an offer" and enter a negotiation. It wasn't like that just a short time ago. Today, an over-listed property is simply discarded from a buyer's list - there are just so many homes available and so much pricing information available. I think it may be a matter of the economy. Could it be that many consumers today just don't want to "pile on" to sellers that may already be suffering? Maybe. I do know that their search lists are driven by an attractive listing price, and it seems to me they don't go back, even if the list price is dropped.

So, purple houses and over-listed homes will not sell in this market, but others will. Let your REALTOR help you determine the market price for selling your home, and advertise it at that price when you list it. This is no time to "See what you can get" or "Leave some room to negotiate." Not in this market. And it's no time to paint it purple either; but if you over-list it, you may as well.

Future Home Prices in the Metro East

Bob Ashauer (RE/MAX Alliance) — Sat, 22 May 2010 12:12:41 -0700

So where are we heading? Will my home be worth more or less in two years? Should I wait or do it now? Advising clients on the future of our housing market so they can make good decision is part of my job as a Realtor. Keeping informed is a challenge because the factors affecting our future, both economic and political, seem to change quickly. Filtering solid information from the news is critical. My clients often see headlines and news broadcasts where interpretations of exactly the same data or event vary extremely. "The market is back!" to "Here comes the second crash!" The news is often misleading and aggravating. It is safest to only focus on near term market conditions, but helping clients make decisions based on a realistic view of the future is part of the job. OK, it's crystal ball time again.

In this post, let us examine a snapshot of several strong national factors that will very likely affect home prices nationally, and examine them locally in the metro east of Saint Louis. Reliable analysts are predicting a further slide in home prices in the next several years. Other sources, of course are "pumping sunshine" that we have hit the bottom and are firmly on the road to recovery. Keeping a view of the national economic health of the nation is important, of course, to all of us. Which view is probably correct and why? Two factors are being touted to erode prices over the long run. One is the "shadow inventory" of homes that are owned by banks or near foreclosure, but not yet on the market. Many sources estimate there is a bubble of 4.5 million properties in this shadow inventory, many expected to come onto the market soon as banks attempt to sell them. These foreclosed properties will increase the supply of homes dramatically, and they are priced low because of their condition. That tends to depress the sales value of all other homes. The second factor predicted is an increase in mortgage interest rates within the next year, which changes the dynamics of home buying. Just a one percent increase can significantly raise potential payments for households already facing economic pressure. Decreasing the buyer pool would put downward pressure on home prices. These two factors seem to be likely forces that will drive home prices down nationally over the long run.

Let's take a closer look at these predictions on a geographical basis. Where in the country may we see these trends? Here? One of the sources I look to is PMI, Inc, a national company that underwrites or insures mortgage loans. They have an inherent interest in the future value of property held as collateral and the subsequent risks of their loans. The data they use is extensive and beyond what we can examine in this short post, but their national view is interesting to us. They recently published a chart (below) that shows the probability of home prices being lower in two years than they are today. In the red areas of the country, for instance, they predict that it is 100% certain home prices will drop over the next two years. In our area, they indicate only a 30 to 50% chance that home prices will be lower; or about a 50 to 70% chance they will be higher. We might well question their ability to predict the future (a real hazard in today's turbulent times, and did they see the crisis coming in the first place?) However, the relatively lower risk in our area that they predict is useful, and it makes sense based upon our experience.
Our market did not see the same extreme changes in the past that others have. Certainly we did have a bubble in home prices, have suffered through drops in value, foreclosures will probably increase in our area, and an interest rate increase would affect us. The national problems will continue to be felt and reflected here. When we see or hear about national trends, however, they must be tempered by our relatively stable economic conditions. Need I say it? OK, all markets are local!

So what's up today? I observe we are on a plateau for now, and I think it will last through the next few months at least. The spring influence has brought a normal increase in market activity and slight increase in prices. Homes that are priced right for the present market conditions are selling well. Many buyers realize the great opportunity offered by this market. I will say though, that the mix of homes that make up the market place is also very complex. If you could consider for a moment the full range of homes for sale, all reflecting the perspective of their owners and agents. and could imagine the full range of opinions and feelings of potential buyers, and their agents, you could easily get a sense of what I mean by complex. Add a mix of property conditions from move-in ready to distressed properties with special purchase requirements and you see the market as something we've never experienced before. It's good, but different. There has never been a time when it is more important to rely on a professional Realtor. Get one today, smile.

Future prices? Our local economy and unemployment level are key factors, of course. Trying to get into a local restaurant on a weekend indicates to me that all is well, but in reality a lot of family budgets are pinched. Overall and in the long run, I believe national factors will keep home values from appreciating in the next few years like many of us home owners would like, but it depends greatly upon price range and even neighborhood. We need to get used to this market, and have a realistic understanding of costs, price and value. It will be here for a while. It is a soft and bumpy bottom, at best.

Contact me at dcbob@charter.net
Search for homes at http://www.EastOftheArch.com

Interest Rates - Buy Now ???

Bob Ashauer (RE/MAX Alliance) — Mon, 08 Mar 2010 12:32:15 -0800

Interest rates for mortgages are really, really low at the moment. Will they go up sometime? Sure, of course. Should that affect your decision to buy now? You bet. For my younger generation of potential home buyers, let me take a short trip down memory lane, along with others who remember:

First, look over the graph below showing the history of mortgage rates. Let’s go back just a few years to the 70’s with a personal reflection:

I was mobile, like a lot of families – pretty much knew I would have to move to and from somewhere in the country every 3 or 4 years. Real estate was an important part of the game plan. Many of us bought homes; let’s say mine was for about $180,000 with a VA loan at a decent interest rate in 1976 – maxed out with very little down – leverage, right?

Then the early 80’s happened! Interest rates careened to ridiculous levels. Buyers cringed, as you can imagine, or can remember. But my home sold in a matter of weeks, and at my asking price with a nice profit! A lot of others did as well. The magic was my assumable loan. My interest rate and the relatively low monthly payments had more selling power than the home itself! True, the buyer had to come up with a big down payment to get to my asking price and to assume my loan. Sure glad I had taken the loan out for the maximum amount at the time I purchased because that helped.

Assumable loans were golden to buyers and sellers. Assumable loans – now there’s a term we haven’t heard about lately, so let’s think about it in light of today. Holding an assumable mortgage at today’s low interest rates may be an important hedge for homeowners against a surge in interest rates. It could make the difference in being able to sell your home in the future. (By the way, after my move I sat it out – rented for two years until sanity returned to the mortgage industry.) Lucky? No, I had some real good advice, and I listened.

So let’s pose some questions to Cindi Myers from USA Mortgage (http://cmyers.usa-mortgage.com). Cindi, what kind of loans are being made today, and are they assumable? All of them? Could it be important in the future?

“Well Bob, only government loans are assumable in this day and age. When I say government, I mean FHA and VA loans. FHA is your traditional first time home buyer loan, with a 3.5% down payment requirement, which is backed by the government. VA loans are for veterans and active military, who have served the minimum required time to qualify. VA loans offer 100% financing. A later assumption is handled directly by the lender. There is normally a $500 fee associated with this type of transaction. The homeowner would inquire directly with their lender and the lender would send out a loan package that the potential buyer would have to complete and return with the predetermined fee. In these days, they would have to credit qualify for the assumption, as well as to qualify for a debt to income ratio. The advantage is the new buyer is literally taking over the loan balance at the rate the original borrower took out. Of course, the owner’s equity is a whole other discussion. On a VA assumption, if the new potential owner is not a veteran, the original veteran’s entitlement stays with the property, which means the original veteran doesn’t have the full benefits restored to him. Obviously, dependent on the circumstances, that might be a problem. With all of the refinancing that has taken place recently, I would say there is a considerable about of government loans that could be assumed. With Freddie & Fannie tightening their belts and all of the additional overlays of risk that lenders have implemented, government loans have dominated.”

So, if history repeats itself, and it always does, we will see higher interest rates in the future. Having an assumable loan may be a great hedge against the future sale of your home. Can you see your listing when interest rates are above 10 %? “Take over the payments on my 5% loan!” Think about it.

Visit the Real Estate Consumers Blog for more information and articles on buying, selling and owning real estate.

RE/MAX IS DOING SOMETHING!

Bob Ashauer (RE/MAX Alliance) — Sat, 13 Feb 2010 08:55:25 -0800

Meet Dave – my team at RE/MAX Alliance has. I seldom post outside articles, but we are proud of the role our Chairman has taken to help America recover from the housing mess consumers face. He knows and speaks the plain truth about our market, and works tirelessly with government and industry leaders to make changes that will lead to real improvements. And they listen! Dave’s message to Realtors is simple: Become an expert on the market and learn new tools to best serve our clients. And at RE/MAX, we listen, too. Meet Dave:

Editor’s Note: The following is a Feb. 10 press release from RE/MAX International.

RE/MAX Urges Lenders to Release Properties
Record Foreclosure Numbers Need to Be Tackled Head On

(Denver, CO, February 10, 2010) – Dave Liniger, RE/MAX International Chairman and Co-Founder, urged government and economic leaders to push lenders to release foreclosures to help speed the housing recovery. Liniger made his comments as a featured speaker at the Five Star Government Forum in Washington D.C. The Forum brought government and industry leaders together to share ideas for building stability in the nation’s housing market.

”Most of us feel that there is a tsunami of properties out there. I can assure you in the hardest hit areas of the country, there are bidding wars going on,” said Liniger, the only speaker representing a real estate company. ”So, for those lenders who are here listening, now is the time to release properties, because you’ve got the Homebuyer Tax Credit that’s driving buyers into the market, and a limited window of opportunity to get these properties sold before the credit expires this year.”

Liniger explained that in some markets experiencing high foreclosure rates, homes in price ranges that qualify for FHA financing are attracting a lot of attention. In these areas, there are multiple offers from investors and first-time buyers, which indicates there’s a real shortage of available homes.

The Five Star Forum focused on the Home Affordable Modification Program (HAMP), and the challenges facing mortgage lenders in modifying loans under the program. It brought this group of influential leaders together to begin the hard conversation on how better to keep more Americans from losing their homes.

Over the past year, RE/MAX International has led the way on the housing recovery. Liniger and other RE/MAX representatives met with Housing and Urban Development Secretary Shaun Donovan, as well as officials with FHA, Fannie Mae, the Treasury Department, and the Homeowner Preservation Office. RE/MAX offered recommendations for streamlining the Short Sale process, some of which the Treasury Department adopted when it announced a new process last November.

In 2009, RE/MAX trained more than 10,000 agents to handle Short Sales. More RE/MAX agents have earned the Certified Distressed Property Expert (CDPE) designation than agents with any other real estate company. Surveys show that after earning a CDPE designation, agents are twice as likely to be able to keep families in their homes. And, if the best route is a Short Sale, CDPE agents are much more successful at completing the transaction.

“In our industry, we talk about distressed properties, but we’re dealing with distressed sellers, distressed human beings,” said Liniger. “They’re humiliated by their situation, and that’s why 70% of them never pick up the phone to help themselves when they’re faced with a foreclosure. That’s where Short Sales come in. They provide a better way for both the homeowner and the lender.”

While some cities and markets are experiencing a recovery, as both home sales and prices rise, others are not faring as well. Overall, the real estate industry is in a correction, according to Liniger, who sees distressed properties making up the majority of sales for the next three to five years. And, after that, another housing boom may be on the horizon.

“Once this correction is over, we have a whole new generation of homebuyers waiting to get into the market. But we have to get through this first, and the best way to do that is to take it head on.”

Is it REALLY for sale?

Bob Ashauer (RE/MAX Alliance) — Thu, 28 Jan 2010 14:01:07 -0800

Or - “Why do I need a Realtor to find a home – one more time! ”Self-searching for a home on the Internet has become the rage! Well I, for one, think that’s great. It whets the appetite for potential buyers, and besides, it’s just a whole lot of fun – better than reading e-mail jokes all day! There are so many great sites with so much information, and they are growing more useful every day. Wait to you see what is coming this year on Realtor.com; home values, market trends, transaction records – Our National Association of Realtors is bound and determined to “out-do” the non-Realtor sites like Zillow, Trulia, Google, Yahoo and the many Find-All-Homes-But-I-Want-The-Name-Of-Your-First-Born-Child.com. Ha! We individual Realtors try to compete, of course, with our own search sites – everyone has one. (By the way, mine is the best at www.EastOfTheArch.com– smile.)

Fun, but there is a creeping problem for the home buyer – a problem that is growing in the 2010 market, and you need to know the solution when you search for homes. Not every home listed for sale is equally “buyable,” even on the good sites that keep their listing inventory fresh. We Realtors today are spending much more time evaluating listings to see if they are truly “buyable” for a given consumer, and under what conditions. This information is not apparent to you as a consumer on a home search. Calling the number in the listing for “more information” seldom gets you all the information you need. After all, the purpose of that listing, and that number, is to sell the home – to anybody!

That is why you always need the number or a buyer’s agent in your phone’s contact list. Hopefully someone you know and trust, and have chosen to potentially represent you. Ok, I’ve said all that before, but the 2010 market is making it even more important to you. Let me list some of the categories of homes listed for sale these days. They’ve always been there, but the mix is getting broader in today’s market, and you can’t always tell the difference.

Tradition Sales,
“As Is” Sales,
Short Sales,
REQ Sales,
Foreclosed Sales,
HUD Owned Sales,
New Home Sales,
FSBO Sales,
And more….

Each kind requires a different buying process that may or may not match your ability or needs – or your interests! Often you simply can’t tell a book by the cover. It takes some research by a Realtor – a buyer’s agent - to get “the rest of the story.” The best solution is to sit down with a Realtor, learn about the different buying processes for various sale possibilities, discuss in confidence your needs and wants, and let your Realtor help you screen your search for homes that are truly “buyable” by you. I’m never too busy to meet with you to do just that – it’s how I work and what I do. Or, simply call me about any listing, but give me a little time to research the situation behind the pretty pictures and glowing description. Every home today presents a different kind of opportunity, and the differences are usually as important as the more obvious features shown in the listings. So yes, you really do need a Realtor to find a home, more than ever in today’s market and Internet environment!

Bob Ashauer, Your Personal Agent
618 581 1695
www.EastOfTheArch.com

Is Your Dream Home Someone Else’s Nightmare In 2010?

Bob Ashauer (RE/MAX Alliance) — Fri, 22 Jan 2010 11:56:36 -0800

You've never found the home you've always wanted, with just the features, style and location for you. Oh, some have come close, but not at a price you would pay! When the other owner has your great taste, they know it - and they have priced that jewel way up there when they sell. Besides, close is just not good enough at the prices you've seen. After all, you don't really have to move - it's just a dream! But you've keep your eyes on the market for years - maybe someday!

Well, wake up from your dream state; it may be time to take a closer look at the market in 2010! Your dream home may be sitting there on the market this year as a nightmare for someone else! Selling prices are down, interest rates are at the bottom for now, and many people do have to sell those jewels, for any number of reasons. True, your dream house may not be in perfect condition, or may not be exactly what you have always wanted, but in this market those are opportunities! This year, there are ways to buy a home at a bargain price, have immediate improvements made to your own tastes, and turn that nightmare into the dream home you've always wanted! We call this market a perfect storm! With it come opportunities for smart buyers - not just investors! Learn more of how the 2010 market realities may be the perfect time for you at this new web site: http://sites.google.com/site/homebuying2010/

Tell your friends- they may be interested in how 2010 is the year to realize their real estate dreams!

Father Time and Baby New Year on Real Estate

Bob Ashauer (RE/MAX Alliance) — Fri, 01 Jan 2010 21:36:58 -0800

Baby New Year:
"Happy New Year! But hey, old man, there seems to be a lot of long faces and frowns on the folks. What kind of mess did you leave me in your year of 2009?"

Father Time:
"Blah!! I didn't do it - not my fault - could have been worse - it didn't start on my watch - give me a break - I did the best I could -mumble, grumble and Blah!"

Baby New Year:
"Ok, OK, so what happened?"

Father Time:
"Well, basically, people's homes are not worth what they used to be, or what they thought they would be. There was a whole lot of finger pointing going on in my year - bad loans, greedy people, bubbles, stupid people, bad this, bad that and bad some other things. Everyone assumed home values would continue to go up - they always did before - but for the past few years they've actually gone down! Just my bad luck to be the one in charge of the year when things didn't come back to "normal," whatever that is - blah! We tried and tried - had all our fingers crossed - but the good times of steady home appreciation just didn't come back - something about some bubble bursting. It's terrible - caused lots of other troubles too - lots of pain and discontent. My year was the pits - blah, blah! You can have it!"

Baby New Year:
"Easy, old man, I'm sure you did your best last year. So, what's it look like for 2010? What are you leaving me for my year?"

Father Time:
"Well kid, home values are in the pits, there are a lot of homes for sale that people couldn't afford to keep, most owners don't have money to fix up their homes to sell, even if they have to move - some even owe more than their home is worth! Interest rates are in the cellar because nobody is borrowing money to buy a home. It's so bad the government stepped in to help, but you know how that goes! You still happy?"

Baby New Year:
"OK, I can see why you are grumpy, but let me get this straight. Home prices are at their lowest level in years. Interest rates are at rock bottom. Money is available for government backed loans with small down payments for the purchase of homes and for making improvements. The government is giving tax credits for new and existing home owners to purchase a home, giving credits for energy saving improvements and even providing down payment assistance. Wow! Sounds like I'm going to be in charge of a great year. So how do I start, if you can get out of the dumps for a minute?"

Father Time:
"Yea, the truth is that conditions are right for a good year, but it's complicated. People just aren't used to how things are at the moment. They want things to be like they used to be, so they can't see how bright the future year can be. There is help, though. Tell people to sit down with a Realtor, like Bob Ashauer with RE/MAX Alliance, to understand the new reality of real estate, and to see what the year can bring for them and their family. Sure, it's different, but different in a good way. Maybe I didn't do such a bad job with my year after all. Good luck, young 2010!"

Baby New Year:
"Thanks, Father Time. Happy New Year to you! I'll have the folks call Bob at 618 581-1695 to see how the New Year looks for them - it looks great to me. Maybe with a little help we won't be as grumpy at the end of 2010 as you are now. I know I won't be - this baby is out looking for a good buy on my dream home! Hey Bob .............."

Find Bob at www.EastofTheArch.com
Serving the Metro East of Saint Louis in Illinois

Real Estate and Your Cell Phone

Bob Ashauer (RE/MAX Alliance) — Thu, 01 Oct 2009 13:36:31 -0700

We all know that searching for homes from a computer is one of the greatest benefits that have grown out of the Internet (and it just keeps getting better.) But just driving around looking at homes is equally important and popular. Did you know that starting today you can combine these two common activities in your home search? I have purchased and set up home information for my clients to receive on their cell phones! (And if you are reading this, it's available to you too - and it's free!) Imagine pulling up in front of a home that catches your eye and wondering about the price, or the details. No more trying to call the number on the sign, getting a sales pitch (if anyone answers), or trying to reach your agent. Just punch a button on your own cell phone and get the answers in private and right when you want it! I use it every day myself and I can't imagine how I got along without it. My clients love it as well.

It works on any enabled cell phone. (See below on how to turn your cell phone into a real estate search machine.) You may already have phone features where you can search Internet sites from your phone, but my program is different. I provide the same home data available on my website searches to your cell phone, according to your phone's capability. If yours is a smart phone, you can get pictures, virtual tours, maps and home details. If you have a GPS phone, a simple click will provide the homes currently for sale at and near your location on a map! Awesome! And my data is fresh - updated daily!

So what's the catch? None. As always, I simply hope you will call on me to represent you when you are ready. Nothing will replace the service you need, and I will provide, when the time is right. OK, how do you get this on your phone? Just click here to learn how - it's really easy.

THAT'S A LIE !

Bob Ashauer (RE/MAX Alliance) — Tue, 15 Sep 2009 21:54:00 -0700

You gotta love Congress! How about an imaginary real estate address, now that crying lie is the new behavior. I'll do the address, cry lie and do the spin - more efficient that way, and maybe more fun - smile.

Part of the speech: "I am not a real estate salesman, and I don't sell houses. I'm only in the business to provide professional service to clients, whether they buy or sell a house or not! I always put their interest first - even ahead of my own. (And by the way, this is a great time for anybody to buy or sell a home!)"

Shouted from the floor: "That's a lie. Everyone knows you only get paid after a sale. You're just like a used car salesman that would say anything to make a deal!"

The truth? Have you ever felt that way, but were too polite to cry "liar?" Sure you have, I've seen it and felt it, so let's talk about it.

From a personal perspective, I try very hard to work only for clients with whom I've established a mutually trusting relationship, even if there is only a short time to form it. Learning a client's needs, wants and circumstances is my real job - far more important than my knowledge of the market, the properties and the processes in a particular transaction. I am confident, then, to put their interests first (and only). If a sale or purchase is not right at the time, so be it - the clients' interests come first. From a business perspective, I can only assume that when the time and circumstances are right for a client, they will still allow me to represent them to the finish, and to payday. It's hard to hold that perspective in this new day of real estate, where client relationships are formed (and broken) quickly thru Internet connections, and in this wondrous age of extensive consumer information and consumer activism. Have I taken a role where the client wanted less - been an "order taker," "a house shower," a "salesman?" Sure, it sometimes comes with the job, but I almost always regretted it. You know the old saying, "If it looks too good to be true, it probably is not true." Being handed a pop-up sale, where all I had to do is process it, may seem like a dream, but it often becomes a nightmare. So, I see my job as building the client relationship necessary to provide true professional service from my client's perspective - it's what I do.

So what's the point of this post? (smile) Well, for me it's a reaffirmation, or reminder, of how I do my work. For you, the consumer, here's a hint: There is a wide range of roles and behaviors of agents in our business - a very wide range. How you relate to an agent often determines the level of service you receive. (Approach an agent as a "used car salesman", and that may be what you get - or you may be passed on to another agent without ever knowing why.) Ask questions. Any professional Realtor can answer them with honesty. (Sorry, I don't recommend shouting "liar" in someone's face, even if it did happen to the President!) But do be active in "hiring" your agent, and work towards that essential trusting relationship. You deserve and need the professional service of an agent who puts your interest first. No lie.

Also at http://reconsumer.wordpress.com

Every once in awhile ..................

Bob Ashauer (RE/MAX Alliance) — Thu, 27 Aug 2009 22:23:37 -0700

Every once in awhile, there is that special real estate transaction where everyone is very happy. Below are the buyers and sellers at such a deal that closed today. Notice the smiles. That is what keeps me in the business. Certainly it's not the size of the sale, or the commission, it's the size of the smiles.

The young couple are my clients, first time buyers. The seller, Mike, (that's his SUV) is a real estate agent from Missouri, but in this case, he was just the owner and seller. (His property was listed by an Illinois agent that represented him.)

Mike, as the owner, went far beyond what he had to do. He fixed things that didn't have to be fixed, painted things that didn't have to be painted, cleaned things that were clean - all to make sure the buyers were getting the best home that he could reasonably provide. There are people like that - people that strive to put what they sell, whether car, boat or home, in the best possible condition for the next owners. It has to do with internal pride. In these tough economic times and hard bargaining, it is trait easily forgotten. This seller didn't, and I know my clients thank him.

But that's not the end. Mike Love is also a Realtor, located in the Lake of the Ozarks. I'm pretty sure that Mike also goes the extra mile to satisfy his clients like he did my clients. In Real Estate, it's not always about just getting the best price or spending the least money. Realtors like Mike work towards the smile that comes from treating clients as if they themselves were in the transaction - that's his brand of customer service. I seldom give recommendations, but if you are ever down at the Lake of the Ozarks in need of a Realtor, think of Mike. I know I will. His web page is www.soldonlove.net and his phone is (573) 216 6126. Thanks, Mike.

posted from www.reconsumer.wordpress.com

Has the Market Bottomed Yet?

Bob Ashauer (RE/MAX Alliance) — Mon, 03 Aug 2009 17:01:33 -0700

There was a whole lot of positive news about the economy and the real estate market weekend. More will come, I'm sure. That goofy mortgage pitchman on our local radio (you know him, "just call xxx-ninety nine ninety nine) - says this is the time to buy a home! Even old Alan Greenspan was cautiously calling the bottom of the recession. Great news or wishful thinking?

Well, it's not my job as a Realtor to pump sunshine about the market, even if a lot of people think so. Sure, I am anxiously waiting for a return to the appreciation of home values because that will truly mark the end of this economic slump. I hope it's soon. No, my job is to attract clients and to serve them well in this, or any market. Yes, the local market activity is picking up, but don't rush to the phone to raise the price on your listed home just yet. If we are at a bottom, it's a soft bottom that may be here for awhile at best. Home prices are still low, and cautious buyers may push them lower yet. Or not?

It is true that this is a very attractive time to buy a home now, or to move up for those in an economic position to do so. Prices are low, interest rates are low and there are some really great homes on the market. And first time buyers have an unprecedented opportunity to make a purchase before the $8000 tax credit and other assistance programs expire. Just this week, I had a customer call me about taking over a listing when hers expires. A really nice 2 bedroom/2bath brick home she had on the market for nearly $200,000, but is now down to just over $110,000 because she just has to move to a new city. Not a foreclosure, not a short sale - not a distressed property, just a great buy! There are a lot of homes on the market like this. You bet, it's a good time to buy!

How long will it last? Which way will the real estate market go and when? Remember, markets are very local - they vary by specific location, price range and home features. Attitudes and conditions of the national market do have a big affect on our local market of course. The overall economic news in the national financial markets looks hopeful. Unemployment levels are probably the next big watch. One of the biggest factors on how soon we see a housing recovery will be consumer confidence and attitudes. That's pretty hard to predict, as we all know.

If you would like to express your view into the crystal ball of home prices, go to my consumer blog site, www.reconsumer.wordpress.com - this post at that site has a short poll question there, just for fun. (I'll be darned if I can get it to show here! Oh well, you might like the site more, so click and try it!)

Buyer's Market? Seller's Market? or ............. Lender's Market?

Bob Ashauer (RE/MAX Alliance) — Thu, 09 Jul 2009 21:26:29 -0700

A Realtor on the west coast recently coined a new phrase to describe his market - the "lender's market." I like it! Yes, he was voicing his frustration about California-crazy market conditions that are not the same as ours, thankfully. His concept does explain, however, some aspects that may affect you as a consumer here in the metro east side of Saint Louis. Let's look at it.

Classically, a buyer's market is characterized by a large inventory and a relatively slow sales volume. It is often expressed in terms of the absorption rate - the number of months it would take to sell off the inventory at the present rate of sales. Most would agree that we have a buyer's market here today. In terms of control, buyer's rule! Buyers tend to have greater control of the time frames and also many of the terms and conditions in the contract. Buyers typically pay less than they might in an active seller's market, and usually have a larger selection of properties to choose from.

A seller's market is just the opposite. I remember when it was that way - not too long ago. In a "hot" seller's market there is a smaller and faster moving inventory with prices generally increasing. Sellers are more in control to determine the outcome of any successful effort to purchase. Buyers tend to pay more, often more than the listed price.

Well, our market is somewhat mixed, because the nature of properties in our market is mixed. Let's consider that there are "normal" properties for sale and then there are "distressed" properties for sale. For normal properties, yes, this is a buyer's market. There is a great inventory and sales are slow. With today's low interest rates and prices this is a great time to be a buyer. But not so fast! There is that other market segment - distressed properties, where buyers are definitely not in control. Who is? Well, that's what I like about the term "lender's market."

So, if you are looking for a great deal on a foreclosed property, welcome to the lender's market. There are a few things to know: You as a buyer are not in control - the lender is in charge. Second, you will pay the market price for the property, considering its condition (sorry, you are not the only buyer looking for that great deal!) And third, things may take a long time. Let's look at two kinds of distressed property. When an owner wants to sell a property for less than is owed on the property, it is referred to as a short sale. The buyer and seller may agree to a sale; but enter the lender, who must approve the sale, which may incur a loss to the lender. In fact there may be more than one lender involved, as all liens against the property must be satisfied before the sale is completed. The other common type of distressed property happens after the rather lengthy foreclosure process. When a property has been foreclosed and owned by the lender(s), it is called Real Estate Owned ( REO ). Lenders involved in distressed properties are clearly in charge as they determine if they will accept, or not, even the highest offer on the property. In the case of short sales, they can either agree to writing off the short-fall of the loan or opt to continue the foreclosure process. Often they make no decision at all. It is more difficult to predict the decisions made by lenders than we can for normal owners of property. What appears to make common sense to a buyer or seller may not appeal to a lender from their vantage point. It makes it hard to negotiate with them. Lenders also tend to set their own rules concerning purchase contracts and processes. The second golden rule seems to prevail: (Whoever has the gold, makes the rule.) Buying or selling a distressed property is not for the faint hearted or inexperienced.

It may sound as if I personally do not like dealing with distressed properties. Not true. They are an important and possibly growing segment of our market. What is important to me is that customers, and my clients, understand the differences of buying and selling distressed properties in the "lender's market."

I sure like that term!

Visit my Consumers blog at:

www.reconsumers.wordpress.com

Timing Is Everything

Bob Ashauer (RE/MAX Alliance) — Tue, 07 Jul 2009 09:14:29 -0700

We are often asked, "How's the market doing?" Home prices and sales levels are the implied questions. Well, here's an answer to a question that is not asked, but should be: "It is taking longer today to buy or sell a house than it used to take - sometimes a lot longer!" Several internal process changes, driven by national reforms, are extending the time to close a transaction. New rules are in effect to make sure home appraisals remain at arms length, away from undue influence. Lenders and title companies will soon be working with new disclosure processes for greater consumer protection. Federal incentives for refinancing home loans have invited a massive workload increase. Whether these government reforms are good for the industry or not (and let's assume they are) they have slowed the processes of buying and selling property. A second big change in today's market is the larger mix of "distressed properties" on the market. Homes subject to short sales and bank-owned properties often take a very long time to market and sell because of the added complexities and additional parties involved. Not every home on the market today is equally "buyable" by every consumer.

So what do these subtle, internal changes mean to you as a consumer? Each situation is different, but these changes and trends in the market place may definitely affect you.

Consider the importance of timing - it may not be everything, but time frames are an important consideration in realizing your plans to buy or sell a home. It is also said that time is money - pretty hard to measure that, but true none the less. Buyers, while considering the features of your dream home, the price range, neighborhoods, loan payments, drive times - all important, for sure, but also consider a time line that meets your needs and wants. To avoid surprises and dissapointment, you should work with your Realtor to establish the normal times it may take, considering your circumstances, for each phase of the buying process. It's called a Timing Analysis, and it may guide your decisions during a purchase. Thirty to sixty days from the time you decided to buy a home until you had the keys in your hand was "normal", but that normal is getting longer. Sellers, knowing and meeting your timing needs and wants is a very important part of marketing your home - perhaps the most important. Your timing expectations should be a central part of the decisions on listing and marketing your home for sale.

The clock is ticking - start a time line and back it up to the beginning!

Want to be in your new home before the kids start school?
Looking to buy a home for student housing near the University? (At the same time as everyone else?)
First time buyers - you must own that new home by November 30th, and there are 8000 reasons to be start making your decisions now.
Should I sell my home before I find one to buy? It depends on your circumstances, of course, but getting it wrong can cost you money and frustration!

All good questions that need a timing answer. This market has changed for consumers, and more is to come. Work with your Realtor to develop a Timing Analysis of your needs, and get a realistic view of how long it might take to accomplish your plans. Timing may be everything.

http://reconsumer.wordpress.com    A blog site for consumers

http://www.firsthomebuyersite.com  A web site for first time buyers only

http://www.EastOfTheArch.com        A great seach site

Bob Ashauer
RE/MAX Alliance
Collinsville, IL

"We're Just Looking......"

Bob Ashauer (RE/MAX Alliance) — Sun, 05 Jul 2009 17:16:37 -0700

A Consumer Guide to Real Estate

"We're just looking ......."

How many times have we said that? I know I've said it often. I am usually thinking something like "Get off my back, I'm not ready for a sales pitch; I'll call you when I need you; Please don't interrupt me when I'm browsing ------." I recently had a lady in Walgreens follow me around the store while I was waiting for a prescription to be filled, asking me multiple times if I was finding what I needed. Get back! Nice lady, though, just doing her job, and she had time on her hands. But it was soooo aggravating!!!

Does that happen in Real Estate? Absolutely, yes! There are over 1000 licensed agents in our area - all hoping for your business. No wonder a customer would say, "Just Looking," or "I'm just looking for a friend, or my son or ......"

OK, you have expressed an interest in Real Estate, somehow, by asking a question, surfing a web page, going to an open house, or just chatting with an agent. Great! You are a customer. You deserve the best professional service our industry can provide - without the aggravation! That's what this article is about - How to get the professional service you deserve without being pressured. In a nut shell:

There's more to it than that, of course, so read on: There are two things that can help you as a consumer. First, understand how the real estate industry really works! Then, knowing that, be a smart consumer, and insist on getting the service you deserve by choosing who represents you. These two steps, or thoughts, will help you get what you deserve as a customer. Follow them and you will avoid the frustration many consumers encounter. These steps can also put lots of money in your pocket. Get it wrong and you may miss some important benefits of this great industry.

First - Know How It Really Works (click)
Then next - Hire Your Agent (click)

First Time Buyers Only Site

Bob Ashauer (RE/MAX Alliance) — Wed, 20 May 2009 11:24:00 -0700

The more I learn, the less I know for sure!

In the past few weeks, I've been surprised several times by my favorite clients - first time buyers! They are sometimes in a hurry and come to us with a knowledge base learned on the Internet and word of mouth advise. Trying to learn what they "know" and coaching them as new clients often requires some quick thinking and open field running; and I'm not as fast as they are anymore - probably never was - ha.

So - I put up a First Time Buyers Only web site. I might get a few leads from it, but mostly I want to bring them up to speed a little when I refer them to it.

Please visit it. Your comments are welcome.

http://www.FirstHomeBuyerSite.com

A Rare Positive News Story

Bob Ashauer (RE/MAX Alliance) — Thu, 05 Feb 2009 11:50:36 -0800

This happy story is being repeated all over the country as buyers find their dream homes with great loans, but positive TV news stories are rare. It sure would be nice to see more news stories like this to balance the doom and gloom coverage.Buyers: Remember. it's only a buyer's market for you if you buy something.

Ready, set ................

Bob Ashauer (RE/MAX Alliance) — Fri, 09 Jan 2009 10:04:49 -0800

As I was removing Christmas lights (left circle on the picture) on January third, I found buds on my tree limb (right circle)!

OK! That's close enough for me! Spring must be here! If Mother Nature is jumping the gun, then so can we. Let's declare the start of the SPRING REAL ESTATE SEASON! Enough with the gloom and doom, already. A New Year, a new season, a new office for RE/MAX Alliance in Collinsville, new clients to meet - all looking at a market just brimming with great deals on great homes.

On 1/8/2009 Collinsville Mayor John Miller cut the ribbon with Tammy and Rick Owens, the owners of the new RE/MAX Alliance office at 531 Belt Line Road in Collinsville, Illinois. There was a great turnout of Realtors and friends from the area.

This new crew of top agents is ready to serve you! Remember, it's only a buyer's market for you if you buy something. (smile)

I would rather switch than fight !

Bob Ashauer (RE/MAX Alliance) — Wed, 31 Dec 2008 10:03:48 -0800

Count me as one of the many agents across the country that will switch Brokerage companies about this time of the year. In two thousand nine, the RE/MAX brand is mine. Sort of has a ring to it, and I'm excited!

Oh, I know, there's a valid argument about not changing companies to improve your business - something about the grass being greener and a fence somewhere. True, but it's not about that. The real estate business is all about serving clients and meeting their needs. The question for me is how to best accomplish that in the coming year.

Our industry has been changing at a dizzy rate for us, mostly because the information age has finally engulfed our business. It was long over due. Think of many other areas of commerce that have had to completely change the way they do business. How many of your Christmas presents did you purchase on-line - or at least research on-line? (I really don't miss the grinning Sears salesman that hooked you as you came in the door to sell you a washer and dryer.) Again, these changes in our market place were long overdue.

Change? Let's think about change. In 2009, the market defies recent history. Our clients face a whole new set of needs. Most of our customers in the past were simply in pursuit of the great American dream of a nicer home. Today there are a whole lot of homeowners facing economic survival. The needs of our customers span, to a much greater extent, the entire hierarchy from basic shelter to ego gratification. The market our clients deal with is also facing much uncertainty as we enter the New Year. Who knows where we're headed? (Our clients certainly hope that we do!)

So, what will it take to be a successful agent in 2009? Certainly a positive attitude is part of the answer. Overcoming the national gloom and doom with expertise and ability is what our clients expect. But I think it will take more than that. I've studied and applied a lot of theories as an organizational change consultant in another life. There is only one not-so-lofty poster that sticks in my mind for today - a picture of iron Mike Ditka with the words "Whatever It Takes" on it. In a practical sense, 2009 will require flexibility and attitude to meet our clients' needs.

And that, dear friends, is why I switched to RE/MAX, and why I am excited. Not to say anything negative about my prior company, but I need the flexibility as an agent to change, maybe frequently, in how I meet my clients' needs. A new office, new marketing, and new tools - all somewhat a pain, but a refreshed attitude for 2009 is worth the effort, and I know I picked a company that fits me. In two thousand nine, the RE/Max brand is mine! Still has a nice ring to it.