real estate commentary: Why The Mortgage Ship Sank and The Realtor Ship Sailed On - 07/17/08 12:42 PM
A few years ago, the sun was bright and the wind was strong. And while we were never the perfect partners, we still understood that both the Reator Ship (the SS CrazyMarket) and the mortgage ship (the SS LooseLending) needed to make it to shore for a real estate transaction to … (75 comments)
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real estate commentary: 5 Ways to Look Busy in a Down Market (Even though You're Not) - 04/12/08 09:13 AM
Realtors seem to have an affinity for motivational speakers and numbered lists with intriguing titles. Thus, in honor of the annual Realtor Magazine List Issue, I present a list which won’t exactly make the PowerPoint presentation during Craig Proctor’s barnstorming tour. Here are 5 ways to look busy in a … (8 comments)
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real estate commentary: Shattered Dreams, Wasted Time: The Demise of the 20-Something Mortgage Brokers - 04/07/08 03:33 AM
It would not be fair to say they were in it for the money. And yet, MONEY (or shall I say EASE of making money) was what drew so many in.
It was, the gold rush that caused many young people to forsake college. Worse, to sacrifice those twenty-something years for a career that … (81 comments)
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real estate commentary: Recessing a Fine Line or Just Rambling On..... - 03/12/08 12:31 PM
The economic signs seem to keep pointing toward that "R" word. Of course it is hard to know for sure, you could poll 10 so called economists and probably get 10 different takes on the subject. Now whether the country is officially in recession or not is not the point, fact … (0 comments)
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real estate commentary: Where do I spend my money..... - 03/10/08 05:44 PM
Well looks like oil made another record high today, around $107/barrel. This is very troubling to me and should be to everyone else out there. Gradually the price of gasoline and crude related products is going to make its way into the pricing at the stores. In some cases this has … (2 comments)
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real estate commentary: Inside the Mind of An Internet Shopper: I Put In My Dollar, Now Gimme My Coke! - 03/02/08 01:33 PM
ARE WE KIDDING OURSELVES ABOUT UNDERSTANDING INTERNET SHOPPERS?
When we Web 2.0ers dream in color, here is what we see: Mr. IRES (Internet real estate shopper) throws magic key words into Goggle. Because of our fabulous SEO savvy, he is led to our blog. Eureka!
He is madly in love with everything he reads and can't … (16 comments)
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real estate commentary: Inside The Mind of An Internet Shopper: You Can't Land A Prize Fish In a Murky Lake - 03/01/08 12:16 PM
ITS 2 AM AND THE PAJAMA WARRIORS ARE THINKING ABOUT REAL ESTATE
There is something sadly ironic about all those "pajama warriors" who apply online for a mortgage at 2AM. I often wonder why they are choosing a mortgage company in the most impersonal way EVER, yet are desperately seeking one of the most personal relationships in the … (41 comments)
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real estate commentary: Unpermitted: California's Secret Little Property Tax Revolt Is a Ticking Time Bomb - 02/29/08 07:31 PM
"Chad" (not his real name) THOUGHT he was one of the lucky ones. His house had sold, and the buyers were lender approved.
Then the appraiser delivered the devastating news that caused the whole transaction to blow up: The appraisal on Chad's house could not include the entire 700 square foot downstairs area that had been converted … (12 comments)
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real estate commentary: How Your Bad Boy Mortgage Could Cost You the Ability to Finance A Car - 02/22/08 10:55 AM
Yes, declining values have even hit the auto loan business.
Here's a heads up: Those guys who finance cars? They don't want you to have one of those bad boy mortgages with a negative amortization feature.
Over at our family's auto leasing company, one of our good credit buyers was mysteriously turned down when he applied for financing on his … (6 comments)
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real estate commentary: The Anatomy Of A Foreclosure: The Sad Decision to "Let the House Go" - 02/21/08 12:10 PM
****Good Morning America called me this morning and asked to interview the real "Jake". Jake agreed and will appear on Good Morning America tomorrow, (Saturday). Segment is on the housing crisis in California. Talk about the power of ACTIVERAIN! For anyone who wants to see the REAL "Jake", tune in tomorrow!
It is … (86 comments)
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real estate commentary: Profoundly Paperless: When Did Paper Become Socially Unacceptable? - 02/19/08 10:52 AM
"What is this Big Box, Grandpa?"
"Oh, that? That's a file cabinet. We used to store papers in it."
"Grandpa, what's paper?"
Okay, I know we've been slinging the word "paperless" around for years. Then we snickered, went back to our desks piled with paper, laughed when our clients had to sign enough paperwork … (10 comments)
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real estate commentary: If The Seller Is a Bank, You Just Don't Rank - 02/16/08 10:24 AM
In this brave new mortgage world, where at least half of all sellers are either lending institutions or agencies that represent these lending institutions, can I just say this? I MISS THE "REAL SELLERS".
You see sellers used to be real people who actually cared about closing on time. They had a real estate … (22 comments)
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real estate commentary: Upside Down On Steroids: The Demise The Mega McMansions - 02/08/08 12:28 PM
Last night I watched with interest as ABC's Nightline did a feature on a neighborhood of McMansions in Southern California....or I should say: the demise of a neighborhood of McMansions? The mortgage crisis has TRAPPED the owners in their monster homes, unable to sell, and awash in negative equity.
Not only did … (14 comments)
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real estate commentary: Lending Synergy - 02/03/08 11:02 PM
What is synergy anyway? Wikipedia defines it like this:
A mutually advantageous conjunction where the whole is greater than the sum of the parts. A dynamic state in which combined action is favored over the sum of individual component actions. Behavior of whole systems unpredicted by the behavior of their parts taken … (2 comments)
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real estate commentary: Pollyanna Never Sold Real Estate: How Americans Lost Their Optimism & Trust - 01/30/08 11:58 AM
There is definitely something about Broker Bryant's posts that always get me on my soapbox. His most recent feature includes some fascinating responses to the often heard Pollyanna statement: "NOW IS A GREAT TIME TO BUY REAL ESTATE".
Well, it isn't a good time for everyone.
This is like saying "Now is a great time … (11 comments)
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real estate commentary: Sins (and Confessions) of An American Consumer - 01/23/08 11:10 AM
I am a consumer in America. Forgive me, for I have sinned. And excuse me if I am confused.
I have spent money I do not have to buy things, and charged it to my credit cards.
I have bought real estate that I cannot afford (now that I have to make the real payment).
… (7 comments)
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real estate commentary: And We Forgive Those That Trespass Against Us... - 01/13/08 05:43 AM
I used to think NO TRESPASSING signs were, well, just plain rude. That was until I owned a property that I was forced to share with trespassers. Within no time, I was that rude property owner, and as far as I was concerned, there was no sign RUDE ENOUGH.
How about this one: "Get the hell … (4 comments)
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real estate commentary: SALE PENDING (And Praying For Lending) - 01/10/08 12:48 PM
Today, when a Realtor asks a mortgage broker this: "How long should the loan contingency be?", a mortgage broker just might say: "We can remove the contingency the day the loan closes."
Why? Because until the lender FUNDS the loan, there is danger of it falling apart.
In advance, I apologize to all of the listing … (67 comments)
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real estate commentary: The Death of Suburban Sprawl - 01/07/08 12:05 PM
As a new year begins many Americans are in an understandable economic funk. We resign ourselves to smaller cars and smaller net worths, hoping we can save not only ourselves from the ills of the last century, but also our jobs and our homes (or the equity in our homes). But is there … (29 comments)
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real estate commentary: The Millenials Are Coming! The Millenials Are Coming! - 12/13/07 12:03 PM
Update*****PLEASE, YOU CANNOT MISS THE ANONYMOUS COMMENT & PRICELESS INPUT ON THIS POST FROM "A FELLOW MILLENIAL"
All eyes were on her, certainly not me, as we strolled into the upscale suburban supermarket to pick up a bottle of wine for dinner. Who was this exotic blond creature that stood in stark contrast to the rest us … (20 comments)
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real estate commentary: A Real Estate Fable: The Winter of Skinny Rats - 12/12/07 04:12 PM
Two rats met late one December afternoon in 2007 to discuss a mortgage. BUYER RAT had been referred to MORTGAGE RAT by their mutual friend, REALTOR RAT.
"I want to buy cheddar cheese," said Buyer Rat, "but I need a loan. What is your rate, Mortgage Rat?"
"Ah, Buyer Rat, I see you have not bought any cheese … (7 comments)
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real estate commentary: Never Say Cockroach - 12/10/07 09:39 PM
During the mortgage crisis of 1982 (yes, this is NOT the first "mortgage crisis") we were forced to move when my husband was transferred to Dallas. We bought a grand old house sitting high on a hill in an elite neighborhood called Las Colinas (as Californians, we were real estate rich).
In spite of the home's regal appearance (dusty peach bricks, stately white columns, … (16 comments)
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real estate commentary: Freezing Adjustable Rates is Like Rent Control: A Disaster Waiting to Happen - 12/03/07 01:51 PM
Hey, I have an idea. Let's freeze all those adjustable rate mortgages for seven years at those low rates we had 2 years ago. Don't you agree those people "deserve" to keep their lower payment? Don't you think the lending industry somehow stuck it to those poor souls and "deserves" to … (72 comments)
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real estate commentary: The Single Most Important Thing When Shopping for a Mortgage (No, It Isn't the RATE) - 11/30/07 10:25 AM
Tomorrow is December, a month dedicated to the great American sport of SHOPPING. Yet even the most confident super-shoppers, the ones who know every angle and tactic to snag the best deals, crumple and hide when it comes to shopping for a mortgage. Either that, or they simply revert to something that gives them … (10 comments)
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real estate commentary: Easy Rider: Will the Real Subprime Please Stand Up? - 11/25/07 10:05 AM
After attending my first round of holiday parties this week I realized it isn't just us real estate geeks that have the mortgage crisis on our minds. People used to run the other way when I said I was in the car business. Now they seek me out with the following question: "What about … (6 comments)
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real estate commentary: Here's A Concept: Let's Just Do Nothing About the Mortgage Crisis - 11/24/07 01:15 PM
Inspired by the discussion taking place about the current mortgage/foreclosure crisis, I pose the following question: What if we just did nothing? That's right. Nada. Zip. Zilch.
No government intervention. Stop playing the blame game... (what does it matter?) What would happen if we just plain old sat back and let the market … (40 comments)
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real estate commentary: The Secret to Better Rates NOW: Divide And Conquer - 11/15/07 11:05 AM
Mortgage brokers have been the whipping boys of the lending industry this year. Ouch, still stinging, still getting bad press. We're battered, we're bruised, but guess what? The real estate world needs smart, creative mortgage brokers more than they ever did before.
Why? Because putting loans together in a way that gets the BEST LOAN … (6 comments)
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real estate commentary: Is The Mortgage Crisis OVER? Or Are the Buyers Just OVER IT? - 11/13/07 08:03 PM
Here come the buyers. They have lurked in the shadows all year while the headlines screamed "MORTGAGE CRISIS". Mind, you, they have no idea WHAT a mortgage crisis is, but this much is clear: Who wants to buy a house (which means getting a mortgage) in the middle of a crisis? Did "The Mortgage … (8 comments)
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real estate commentary: Buy Here, Finance Here, At Your Own Risk - 11/06/07 10:44 PM
In response to the discussion about Realtors being "encouraged" to use their affiliated lender, I would ask this: What do you think happens in the Toyota dealership when you are ushered over to the finance department and walk out with a Toyota Motor Credit loan or lease? That's right, you have … (70 comments)
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real estate commentary: Desparately Seeking Thanksgiving - 11/04/07 12:26 PM
As I closed up the Sunday paper this morning, I felt more than a little sad. It was filled with a kind of desparation advertising for all things Christmas. Fifty-two days before Christmas and the commercial onslaught has begun. Is there anyone else out there that remembers when Christmas lasted only a few … (17 comments)
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real estate commentary: The Future of Mortgage Brokers Is Questionable - 11/01/07 10:17 PM
As the year comes to a close, the mortgage crisis is taking on a different spin. Slowly, yet steadily, banks are closing their wholesale divisions. When this happens, a borrower must go into a bank and deal directly with a bank employee to get a mortgage. He will have no option to use his … (13 comments)
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real estate commentary: Buy Stupid, Sell Smart (The Forrest Gump Way to Buy Real Estate) - 10/16/07 11:30 AM
"BUY LOW" is the classic advice for buying real estate. But how low is low enough? I say, a BETTER STRATEGY is to just BUY STUPID. Funny thing, you can get rich much faster being stupid. Just ask Forrest Gump.
When you buy stupid, you don't need to wonder when the market will bottom out. Nope, all you need … (12 comments)
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real estate commentary: The Stairway to Heaven Needs a Ramp - 10/14/07 04:37 PM
Caught in a time warp between their kids finally finishing college and their elderly parents needing help, is that huge bulge in the population known as THE BABYBOOMERS. Although it remains to be seen how their retirement will change the face of our economy, I can tell you one thing for certain: They do not … (50 comments)
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real estate commentary: Pay me NOW to get your leads LATER...Trust me, they're quality...Have you heard this before? - 10/09/07 06:04 PM
What do you guys think about all these companies that are coming out of the wood works saying they will give you quality leads for xxx dollars a lead. If these companies are so sure you will get business from them, why won't they accept a referral fee?
As I was … (2 comments)
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real estate commentary: Newsflash to Politicians: Brad Pitt Isn't The Only One Who Owns More Than One Home - 09/29/07 04:19 PM
Hey, I have a great idea. Let's help everyone with those 500 credit scores "fix" their credit. They can't help it if they can't manage their finances. Let's just take everyone that has a 750 score and GIVE 100 of their points to everyone that has a 500 or less score. There! … (9 comments)
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real estate commentary: Rest In Peace, McMansions - 09/06/07 12:28 PM
American's Most Opinionated Mortgage Broker asks us, "Who the hell is going to buy all those McMansions?"(if not the babyboomers, and not the new generation of homebuyers who seem to prefer the urban life?) Funny thing is, he isn't the only one asking this question here in California, where a … (42 comments)
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real estate commentary: Far Flung Suburbs and Commuting: An Idea Going BUST - 08/27/07 11:08 AM
Within the past decade, thousands of homeowners made a decision that they have come to regret:Instead of buying expensive real estate near their jobs (and modest, older homes) they were lured to bigger, much cheaper new homes (McMansions) in outlying areas. This required the bread winner to spend several hours each day COMMUTING. Was … (49 comments)
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real estate commentary: Mortgage Lenders Never Considered Anyone Would Be UPSIDE DOWN - 08/22/07 12:09 PM
There is a place where being upside down in a loan is the NORM. It doesn't create a crisis. Lenders don't close their doors because of it. Borrowers accept it, and still willingly buy. Where is this place? It is none other than your SECOND biggest asset: Your car. Your truck. Your SUV. … (23 comments)
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real estate commentary: Why A Rate Drop Won't Save the Real Estate Market - 08/16/07 06:10 PM
Let me get straight to the point: It isn't about RATES. Rates could go MUCH LOWER, but if no one can MEET THE REQUIREMENTS to buy or refinance a house, it just doesn't matter. What will drag real estate down in the near future is not getting better and won't get better … (19 comments)
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real estate commentary: Outsmart the Market Mentality and Emerge A WINNER - 08/11/07 03:35 PM
Market mentality is an interesting thing. In today's Internet era, it moves as fast as wildfire and seems to grip our brains and cripple our thinking. It explains why very few people are able to buy low and sell high. With very little effort, it is easy NOW for all of us … (13 comments)
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real estate commentary: Mortgage Crisis: An Unprecedented Chain Reaction is Bringing Real Estate to Its Knees - 08/04/07 10:31 AM
As summer has worn on, and with very little fanfare, a crisis has been developing in the mortgage industry that will CHANGE THE REAL ESTATE INDUSTRY FOREVER. This is far more than simply "the summer of discontent" for loan officers. It is imperative that all of us understand these developments and what they mean to … (26 comments)
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real estate commentary: Buy Real Estate NOW: 5 Keys to Taking Advantage of a Down Market - 08/03/07 11:42 AM
Just when you became convinced prices were low enough to buy some real estate, along comes the mortgage meltdown. No more 100% financing. Highly restricted stated income. Higher rates than last year. Bad things happening to people with adjustable rate mortgages. Stop waiting. Now is the perfect time (while everyone else is trying … (5 comments)
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real estate commentary: A Big Fat "I TOLD YOU SO"...Why Stated Loans are Nearly Extinct - 08/01/07 10:35 AM
"LOOK FOR STATED INCOME LOANS TO SALARIED BORROWERS TO BE SEVERELY RESTRICTED OR ELIMINATED."
The above statement was written in my blog on June 1, 2007. Here we are on August 1, and as any mortgage broker will tell you, the above statement has come true in a big way. Stated income, so … (45 comments)
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real estate commentary: Up In ARM's: Truth or Consequences for Mushroom Mortgages - 07/29/07 12:25 PM
The biggest difference between a FIXED RATE MORTAGE and AN ADJUSTABLE RATE MORTGAGE is simple: Something in the future IS GOING TO CHANGE AN ADJUSTABLE RATE MORTGAGE. The biggest SIN in the mortgage industry is leaving borrowers woefully uneducated and unprepared for RATE ADJUSTMENTS.
Brain Brady's recent post, ARM's Don't Kill Houses, Loan Hacks … (5 comments)
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real estate commentary: Discrimination in Real Estate is Only Against the Law for SOME of US - 07/19/07 10:31 AM
When I ended up with 2 daughters at the University of California in Berkeley, I decided to buy the girls a condo. After all, real estate at the time was booming, and owning property anywhere near San Francisco is a near guarantee of appreciation. What I hadn't counted on was the blatant … (24 comments)
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real estate commentary: Location, Location, Location: Playing the Appreciation Game to Win - 07/15/07 12:19 PM
With declining or stagnant values defining the current real estate market, understanding the old adage, "Location, location, location!" is imperative. Everyone making a decision on buying property is making an investment decision, and more than anything else, location will determine future appreciation.
One thing that has become obvious (painfully obvious for some) in this … (3 comments)
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real estate commentary: The Brave New World of REAL ESTATE (When we kiss commissions good-bye) - 07/10/07 08:50 PM
There are rumblings. Not a roar. Just rumblings. Still, maybe we in the real estate business should wake up and smell the coffee. The old pricing model that required a seller pay 6% to sell the house? Could be extinct sometime soon.
Imagine a brave new world. All the houses for sale are … (40 comments)
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real estate commentary: Are Real Estate Agents Grossly Overpaid? Let the Market Decide - 07/02/07 10:44 AM
Arthur M. Louis, who writes a column in the San Francisco Chronicle entitled Moneybag, suggests that real estate agents are grossly overpaid, and deserve a 1% commission on the sale of a property.
Well, I am not a Realtor, but I'm looking around Mr. Louis, and I sure don't see any filthy rich overpaid … (14 comments)
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real estate commentary: Love Thy Neighbor: Should Bad Neighbors be Disclosed to Buyers? - 06/17/07 12:06 PM
One of the most important aspects of buying and enjoying real estate is LEFT COMPLETELY TO CHANCE! That's right, you can't hire an inspector to CHECK OUT YOUR NEIGHBORS. You can't specify in the real estate contract they should be friendly, but not too nosy. They should be tolerent and good natured and have no … (7 comments)
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real estate commentary: Homeowners Insurance Needs Serious Reform: The Case of the Dog Bite - 06/16/07 10:52 AM
Returning from a vacation, a couple in a upscale neighborhood was greeted with the shocking news that the District Attorney had called while they were gone, informing their teenage son the family's beloved pet would be picked up and euthanized within days. The crime? The dog had bitten a neighbor about a month earlier. The motivation: MONEY from HOMEOWNER'S … (21 comments)
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real estate commentary: Dirty Little Real Estate Ripoffs: How Real Estate Gets Stolen - 06/12/07 02:21 PM
… (4 comments)
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real estate commentary: Hidden Valuables: The Family Secret It Doesn't Make Sense to Keep - 06/11/07 10:38 AM
Soon after purchasing a MAJOR FIXER as their first home, a young couple received an unexpected windfall. While remodeling the kitchen, a false wall over the kitchen cabinets was torn down, exposing what had been the secret hiding place for the former owner's valuables.
Literally, CASH, COINS AND JEWELRY rained down from the ceiling, fell to the ground, … (54 comments)
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real estate commentary: Emerging Trend: Babyboomers Supersize Second Homes - 06/07/07 08:06 PM
… (4 comments)
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real estate commentary: Being a Grinder Gets You Nowhere - 06/05/07 09:33 AM
Are you a Realtor who believes that it is in the best interest of your client to negotiate lower prices with all of the vendors in the transaction? You know what I mean: Asking the home inspector to take 10% off the price. Asking the title company for a special deal because your client doesn't have … (4 comments)
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real estate commentary: Are Stated Income Loans Facing Extinction? - 06/01/07 10:04 AM
With housing prices so high here in the San Francisco Bay Area, you might just wonder how real estate continued to sell for so long, and how the average person EVER bought a house.
THREE WORDS: STATED INCOME LOANS.
There are rumblings in the industry that these loans, which have always been somewhat controversial, might be … (10 comments)
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real estate commentary: The GRADUATION SPEECH You'll Never Hear: The Gaping Hole in Education - 05/20/07 10:23 AM
Honorable Graduates, Distinguished Faculty, Friends, Family and Parents:
YOUR EDUCATION HAS A GAPING HOLE IN IT that IS GOING TO COST YOU DEARLY.
Please don't ask me why we thought it was important to teach you about Shakespeare, but not about your credit report, because I am at a loss to answer this. … (4 comments)
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real estate commentary: SUBURBAN FLIGHT: When did being urban become so cool? - 05/15/07 08:59 PM
… (16 comments)
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real estate commentary: Homeowner's Insurance Needs SERIOUS REFORM (The case of the $60,000 Treehouse) - 05/13/07 11:41 AM
Did you know you have an INSURANCE RISK SCORE, just like you have a CREDIT SCORE? But unlike your credit score, you can become pond scum and lose your ability to have homeowner's insurance when YOU DID NOTHING WRONG.
Personally, I am sick and tired of watching perfectly upstanding citizens who happen to … (30 comments)
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real estate commentary: Just Say No to INTEREST ONLY LOANS - 05/11/07 12:04 PM
Maybe we should start calling INTEREST ONLY LOANS what they really are: Stagnant Equity Loans.
Here in California we are still shell shocked over the fact our once soaring values have plummeted or stagnated. Like the ripples from a stone thrown in Lake Mortgage, we are all feeling some pain and re-thinking the advice we … (47 comments)
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real estate commentary: To Sell the Listing Lush the Garden - 05/03/07 10:47 AM
Often I see beautifully staged homes that scream "I'm Gorgeous Inside". Is this to make up for the fact, "I'm kinda plain and boring outside"? It sure seems that way. And yet buyers fall in love with houses often from that very first impression. whether from a picture or a drive … (0 comments)
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real estate commentary: Cinderella and the Fairy Godmortgage - 05/02/07 09:36 PM
… (5 comments)
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real estate commentary: Take a Tip from the Car Biz to Sell the Listing - 04/20/07 04:27 AM
… (15 comments)
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