Great post by my Dad. Sure this is going to lead to lots of discussion.

DJ

Here are some of the benefitsof investing in a down real estate market from an addition to the wiki by Peter Vekselman - he has an interesting take on the market.

The real estate market being down is not necessarily a bad thing. Sure the credit worthiness of investment banks and even the general public is being questioned, but all is not lost.

In fact, the silver lining is, oddly enough, real estate itself. Real estate is still worth something, though not at the hyper inflated values you may have been seeing a year (or even half a year) ago. 

That’s good news; people with liquid assets can purchase many of these properties without having to go through the much-tougher practice of getting a loan. Or, if you are able to get a loan, you are in a much, much better position than the majority of the country.

But other than money, here’s a quick run down of the other benefits of investing in a down real estate market.

1) Real estate has become a long-term investment. There are some idiots out there who think they can flip in a down market, but the handful that do are really, really lucky.

Real estate will bounce back; it will not reach the levels it did but at least you will get a return on your investment. The old saw in investment was to purchase while the stock was low and sit on it until you saw it grow. You need to do the same in this market.

2) If you become a landlord through real estate investment, you will find that your money is returning on you at a better rate than purchasing highly volatile stocks, bonds, or even commodities would right now. The overall return for a year will be about 6% or so; much better than bank accounts or even certificates of deposit.

3) Renters are plentiful. In this market, people are losing their homes but are not becoming “homeless.” They are turning to landlords to find a place to live while they recuperate and try to regain the losses they have suffered.

Many of these people are unfortunate enough to have been caught in the mortgage meltdown without any mis-steps of their own.

4) Others, even if they were in a house they could not afford, are still hard-working people who were sold a bill of goods by mortgage lenders. Finally, because housing is a crashing market, new housing starts are at a record low. In fact, they are at the lowest in decades so there will be no real competition from new home sales to hamper your purchases.

5) The only other competition is other foreclosed homes or homes where people are up side down and in need of at least some quick cash via a short sale. Down real estate markets should be no barrier to your investment in the market, especially if you are smart and do your homework before hand.

Pick the right location, the right tenants, and the house and you will be glad you invested in real estate during this down market period.

If you enjoyed this article, please consider becoming a contributor to The Real Estate Wiki today! You're not only helping out consumers and other real estate potentials, you're helping yourself wih a great link and authoritatibe exposure. So please, check out the wiki today if you have a little time and become our newest volunteer!

I saw a new post on The Real Estate Wiki and thought I'd share the idea and see what you think - its about making an offer on a new construction, which IS different than making  an offer on a home that's been sold before.

The question is if:

1) Negotiating a new contruction is really effective and

2) If its worth it.

It seems to me like the difference between buying an old car and buying a new car - since its devalued the moment you set foot in it, I think its defintely worth trying to negotiate it down. The question is if it works.

The wiki states that typically, the margin for profit with new construction homes is so small (per unit) that there is basically little or no negotiating. You can try, of course, because "everything in real estate is negotiable," but do not expect too much.

Having said so, in a buyer’s market such as in 2007, builders and their lenders usually are very motivated to sell their homes and are coming up with very creative incentives, including in some cases, offering to cover 6 months or more of property taxes, assuming several months of mortgage payments, assuming all closing costs, etc.

The reason why builders cannot easily drop the price of their homes is because they put so much money into it, they have to at least make it back. If you have a client interested in a new construction vs. a resale, there are lots of websites with lists of development properties along side agent listings.

What do you think? Have you negotiated a new construction successfully before and has it worked out? Please feel free to add to the article at the Real Estate Wiki.

If you have a chance, please check out the Real Estate Wiki and contribute - together we can make an awesome real estate resource and help eachother out in the bargain. You also get a free link and profile, so please come on by:)

Here are the top 10 reality TV shows to date that are real estate oriented. Top 10 lists are often subjective, so I know some of you will like others better, but that's the fun of it;p

Here are the top ten real estate TV shows going into 2009 and just a few of the many lessons we can learn from them:

10. Get It Sold (HGTV)"

Small changes often yield greater results. Yup, sweeping that walkway, vacuuming that carpet, replacing that worn old chair - even the little things make a difference when selling and staging a house.

9. Weekend Warriors (HGTV)

Fixing up a home to make it easier to sell doesn't have to cost an arm and a leg. Many things we think are hard just take some common sense and the right directions.

8. Secrets That Sell (HGTV)

Don't be afraid to ask for help from professionals if you're a seller - they can save you a lot of time and headaches. Do set a reasonable budget and stick to it. Looks can make the difference between a sale and a fail.

7. Extreme Makeover: Home Edition (ABC)

The amount of work that's put into each and every home is a true reminder of the gift every family on this show gets. When a community gets involved, things happen.

6. My House is Worth What? (HGTV)

Sellers may not like to hear the truth about what their homes are worth, but if you get them to listen you can help them more than they know.

5. Designed to Sell (HGTV)

Design a home the right way to begin with and it will sell much faster.

4. Bought & Sold (HGTV)

Sometimes you have to go extraordinary lengths to close a deal, but it can be well worth it in the end.

3. Moving Up (TLC)

Moving out and selling the tiny home a growing family has been in for years can be hard - so many memories, not enough money, etc. - but the right agent can make it happen.

2. House Hunters (HGTV)

Building a home is HARD and INVOLVED. Just buy one - you have so many options!;p

1. Flip That House (TLC)

Yes, even you can make money off flipping a home, but it takes work, skill, pull-through and sound professional advice to make it happen.

Feel free to add to this list and remember to check out the Real Estate Wiki for more great top 10 lists and tons of other real estate information!

If you have a chance, please consider contributing some post or articles to the wiki - we're really looking to gear up for 2009 and any help is greatly appreciated, plus you get a free link and profile:)

If you like this post, please Twitter it:))

Referrals are one of the best ways to develop new business. A new agent can invite referrals by contacting his or her “sphere of influence” (people you are intimately familiar with, such as friends and relatives) and asking, “do you know anyone in your subdivision, gym, at work, interested in buying or selling a home?”

This question will prompt the memory of a specific individual and a reply providing the name and contact information of a prospect.

Open-ended questions, such as “do you happen to know of anyone,” will lead to open ended answers, such as “not off the top of my head, let me get back to you on that” (which will never happen).

When you get a referral from a friend or relative, make sure they give tiy all the contact information of the prospect and ask for permission to use your friend or relative’s name when takling to the prospect.

Contact the referral as soon as possible and inform your friend or relative of the outcome of the call. A new agent must prospect for referrals with the same efficiency he or she prospects for new sales leads.

For more excellent information, please visit The Real Estate Wiki. We'd love for you to consider contributing as we're trying to really make it huge in 2009. So please, think about checking it out and maybe adding some entries - you've got nothing to lose and at the very least, a great free link to gain!

Really, please Twitter people's posts you like from AR. Its a great way to thank them for taking the time to post something for you and the community - if we all cross-promoted a little more, what a great environment of good will we could create.

So I'd like to give a call-out for a Twitter-a-thon.

For the rest of this month, any post you think is worth commenting on, post it to Twitter real quick. All it takes is a moment and you've just helped your colleague out.

Now this idea could die before it really gets going, but I thought it was worth a try:) A blog post that's worth commenting on should be worth Twittering about. And if you're one of those people who just comments to get points, this is also a great way to make up for that;p

Please pass this around and lets see if we can get something really great rolling!

Thanks for reading and please check out The Real Estate Wiki if you have a chance - we're looking to really bulk it up more in 2009 and any and all entries are WELCOME. Its a true wiki, totally free to all, no advertising and you get a link out of it to boot;p

I've talked to a couple of people about this topic recently so I thought it would be interesting to bring up. Where do you draw the line between jsut visiting and building a relationship with a client into outright gossip about other agents, agencies, other buyers and more.

Is it ever ok to indulge in a little gossip or should it be avoided at all costs in your interactions with your real estate clients?

Although most of us enjoy listening to gossip, we are also prone to negatively judge those who engage in this practice to excess.

Real estate is a very competitive business and it is easy to “criticize” the competitors but this practice will only make you look bad in your clients’ eyes. Worse, it could come back and bite you if the person or subject gets around to the wrong people.

On the other hand, being complimentary about a competing agent or enterprise will show to the client the values and morals you live by. It will make you more trustworthy in their eyes.

I think the simplest solution is this: don't talk bad about anyone. If you can't help it, just don't talk bad about anyone in public. We all need to vent sometimes,  but just make sure its to your spouse or a good friend who has nothing to do with real estate:)

For more great information or to find out more about best practice for dealing with clients, check out The Real Estate Wiki and consider adding an entry today!

I thought this would be a fun list to post for everyone as a follow-up to my movie-themed post last time. Here are the top ten most memorable real estate agent roles in the movies:

1. Jack Lemmon, Glengarry Glen Ross

2. Annette Benning, American Beauty.

3. Al Pacino, Glenarry, Glen Ross

4. Gene Hackman as Lex Luthor, Superman

5. Kevin Spacey, Glengarry Glen Ross

6. Jerry Blake, The Stepfather

7. Michael Keaton, Clean and Sober

8. Adrienne Barbeau, Open House

9. Josh Mostel, The Money Pit

10. Poltergeist, Craig T. Nelson

I find it interesting that the majority of these roles portray real estate agents in a negative light (albeit great performances). I think its about time Realtors got a better rap in Hollywood!

Who would you add to this list or remove?

For more great top ten lists and tons of other great information, please check out The Real Estate Wiki and if you feel like it, consider adding an entry to help out:)

Here's a fun look at some of the top ten real estate movies of all time following in the vein of my top ten countdown til 2009. Now, any lists are always subjective, these are just a few of the more amusing ones from Amy Hahn.

Which would you add to or take off the list?

10. Neighbors starring John Belushi and Dan Akroyd

Hehe always make sure you meet your neighbors and get a good feel for the neighborhood.

9. The Amityville Horror starring Josh Brolin

Follow your instincts. If you feel weird about a house, maybe there's a good reason.

8. Pacific Heights starring Michael Keaton

If you're renting, always make sure to do a good, thorough background check with references!

7. Open House starring Adrienne Barbeau

Open houses can be scary for new realtors, so make sure everything is planned well in advance and think about hosting a more experienced agent's open house first.

6. Mr. Blandings Builds His Dream House starring Cary Grant

Before investing in a house, make sure you get the proper inspections and reviews. Also, even the worst fixer upper can turn into the home of your dreams through hard work and determination, so don't discount that fixer-upper you saw.

5. Poltergeist starring JoBeth Williams and Craig T. Nelson

Always check into the history of the house you're buying or selling, otherwise something unwanted might pop up (or out at you!);p

4. Life As A House starring Kevin Kline

Reminds us of the important role a home can play in our lives and that the right house can make all the difference in our lives.

3. American Beauty starring Kevin Spacey and Annette Bening

In real estate, the better you are at promoting yourself and your services, the more business you'll get and the more authority you'll have. However, be sure to use this authority in a responsible way!

2. Duplex starring Drew Barrymore and Ben Stiller

Always make sure to double check everything and never take anything at face value. If you're a buyer, this means making sure you know all the relevant facts about the home you're buying. If you're a real estate agent, make sure the seller has disclosed absolutely everything and double check it yourself.

1. The Money Pit starring Tom Hanks and Shelley Long

This is a remake of "Mr. Blandings Builds His Dream House" and carries the same message: always make sure you know exactly what you're getting.

Note: due to the number of excellent comments, I've added additional real estate related movies below for you (and me!) to check out. Make sure to visit the Real Estate Wiki for some more great lists; after all, that's where I found this one:)

Glengarry Glen Ross
Moster House
Gone With the Wind
The Notebook
One Flew Over the Cuckoo's Nest
The FountainHead
Grapes of Wrath
Open House
Its A Wonderful Life

And from Stanley Fosha some great movies and quips:

Wall Street - Stocks, bonds, real estate. The art of the transaction as a movie. The Brutal, Blood Thirsty, Battle of the Transaction. I love this film. "What's worth doing is worth doing for money."

Blazing Saddles - Hedley Lamar and his henchman try to steal the land of Rock Ridge for a new railroad. The funniest real estate transaction ever filmed! "Unfortunately there is one thing standing between me and that property - the rightful owners."

Field of Dreams - An entire film devoted to coming up with a mortgage payment. Oh sure, there's some baseball tossed in there, and some land development tips, but this one is about raising the money to pay for the farm. "If You build it, they will come."

Joe's Apartment - Little known. Little seen. Joe's apartment building is going to be stolen by an evil land developer (aren't they all evil?) and Joe fights them off with cockroaches. I've been selling a lot of cash deal properties in questionable areas lately....this one strikes home. "We know where you live. We LIVE where you live!"

Thanks everyone for giving us all something to do over the weekend!

Hello everyone! I hope you all had a great Christmas and have an excellent New Years. Before the New Year, I thought it would be appropriate to touch on some top 10 lists for 2008. The first of these is The Top 10 Titans of the Real Estate Industry in 2008.

Independent Brokerage Companies, Franchise Groups and Real Estate Networks are always ranked on separate lists as it is impossible to really, effectively compare these different kinds of organizations.

The following group of the “biggest of the biggest” (in alphabetical order) combines all residential real estate brokerage types into one list. They are aptly named “The Top 10 Titans of the Real Estate Industry in 2008.”

The criteria in the report was based on metrics such as scale, growth, innovation, internet strategies, industry profile and consumer awareness, among others.

1. Exit Realty

2. Home Services of America

3. Keller Williams Realty

4. Leading Real Estate Companies of the World

5. Long & Foster

6. NRT, Inc.

7. Prudential

8. Realogy

9. RE/MAX International

10. Weichert Realtors

What do you think? Do you agree with this list, compiled from the 2008 Swanepoel Trends Report?