Yup, credit is tightening. Yup, there is too much inventory. Yup, if your house is overpriced, it will more than likely NOT sell. Yup, there are a lot of foreclosures & short sales.
There is a lot of waaaaaaaaaa waaaaaaaa waaaaaaaaa moaning and belly aching going on.
I don't want to answer my phone if it is a seller, agent and sometimes even friends. I am a prisoner in my home/office because I like to be positive and upbeat.
Here are how some of the conversations start:
- Don't you want to make money?
- Sell my house!
- I can't get an escrow to save my life!
- Whoa is me!
- When are you going back to work?
There has been a whole lot of change in the market in the last thirty days, heck even the last week. $40 billion in adjustable loans are set to adjust in the month of August. The next four months is going to be hell. Period, end of story.
Agents: I don't want to work 12-14 hour days myself and I don't know what the easy money of 2004 was like, I have no reference in my mind. Why is it that most agents think that the only thing they can do with their license is sell residential real estate? Commercial and property management is HOT right now. Prospect to renters, show rental property and get that referral fee!
Sellers: Unless your property is listed under the FHA limit (304K currently), fuggetaboutit! Open up other doors. Put your house up for lease or offer a lease option to purchase. Yes, Vegas area renters are tough on property but there has to be a way to minimize the pain and negative cash flow and put a band aid on the situation for a couple of years. Don't lease option for more than one year. Investors are coming out of the woodwork and trying to do two year leases, they are hedging on a 2009 boom at your risk.
Friends: I am resourceful, I don't need to get a job. My license takes me to great places and even though I am working long hours for very little money, I find this job rewarding in every way. Real Estate is in my blood. Everything will be OK.
To the people who feel sorry for sellers selling short and people being foreclosed upon ~ dry your tears! It really isn't that bad. Who is caught in the cross fire? I would say the majority (read majority) are people who took money out, like lots of money. Like we are talking over 6 figures ~ you know, 100K and above out of equity in their homes and have nothing to show for it. Where is that money? Why should the bank sell short and at a loss? My favorite short sale story is about a couple getting divorced, they want to short sell the home they bought last year, and the wife wants to buy it for $300K less. FRAUD!
Oh, and don't get me started on foreclosures. Working with renters, I can tell you I get at least one story a week about a renter who has to scramble because the owner (aka INVESTOR) is getting foreclosed on. People who were hedging on a "quick flip" and didn't anticipate a long hold.
Like I said, there is a minority of "normal" people out there selling short and getting foreclosed on but I don't hear too many of those stories. Those are the people my heart aches for.
I long for a normal market, although getting into it in 2005, I guess I don't know the definition of "normal".
It's my party and I will cry if I want to.
All the Best,