Gary Keller Rebuttal to Jim Kramer's "WORST TIME TO BUY" Comment

Oh so true. Kramer's comments actually made me giggle a bit. Was so ridiculous to generalize like it was the absolute truth. Thanks for posting this.

Hello All

Overall, I love Jim Kramer. He is all about disclosure, and so is the network that broadcasts his remarks. He is always expressing his opinion, and his disclaimers say that at the beginning and end and sometimes in the middle of his show.

I agree that Real Estate is a local buying experience, and that most of Jim's stock picks are basically national or even global. So wherever he lives, he is probably reacting to a local situation for a national audience. However, the mortgage market that ties into the housing market is global. And if the secondary mortgage market is in a freeze pattern, then our homes have a much harder time getting bought. <<<<<<Everywhere>>>>>>

Somewhere else in this Active Rain community I found a link to a county by county report on the amount of escrows that actually go to closing. Some areas were down to as little as 30% of loans actually closing. In a broader context, I believe this is what he was referring to. Unless you are working with cash investors, or 800+ credit score buyers, you are not having as easy of a time getting a house sold because of financing woes.

Finally, for all my customers that have taken a while to get financed, they are ALL getting a better price in the housing market now than they did six months ago. For everyone who is buying now, there is a feeling that waiting will bring a better price. It's not only Jim Kramer saying this. Its everyone.

Have you talked to any FHA appraisers lately???Lenders are demanding comp reviews and justification on comps more than 90 days old. These are the expertsand they think prices are dropping.. because they are. The key now is sales price under appraisal and 90% LTV. Or better with shaky credit scores of only 725 or less.

I like Jim Kramer and think he told the truth. Unless you can get a house way under appraisal now, you will be better off waiting. Sellers should really consider offers now because the next one will probably be for less money, and ask for more concessions and incentives.

Heres a big BULLLYAAAAAAHHH for my buddy Jim Kramer.

Mike Norvell Sr

 

I just joined KW...after an invitation to Mega Agent Camp in Austin, TX. I saw Gary Keller in person, and I really learned a lot from him. He is a great leader!

First, let me say that I too love the Keller Williams Company and actually do know some of their agents. Nice firm, nice agents working there, that being said, Kramer did not attack any agents or agency, just stated that with pricing continuing to fall, and with the difficulty in the mortgage market, this is not a good time to buy.

I have considered myself a listing agent in the past, but have been moving my focus over to working with buyers. Buyers are forced to be realistic, they cannot escape the maze of lender requirements and the blizzard of paperwork. They have to make a decision that will last for years, and the hope of building equity by buying into a falling market is not an easy choice.

 I agree, seller have their head stuck in the sand an are reluctant to take a decent profit when so many of their neighbors made a killing by selling earlier. I feel its just as wrong to tell sellers that the market is going to come back soon. With so many homes on the market, soon is not around the corner anymore. Trying to get a seller to get an appraisal is like pulling teeth, it is just too painful for them to even think about it...so they ignore it and watch the Today SHow where they say everything will be alright soon.

I am recommending to my buyers that they look to newer construction for the same price and stick in communities where the value will have a better chance of staying even. I have seen my share of homes bought over the last few years that are worth less now, and with mortgages that are charging more. Maybe in other areas it has not been so hard hit, but my in-box is full of short sales and forclosures of those that were told to buy into such a rapidly rising market, only to see the values continue to fall around them.

Best of luck to you Joshua, and maybe we can do some business in the future. I will continue to be honest and fair, and like working with like minded professionals

Mike Norvell Sr

Josh,

 Great to hear from you. Now having someone as smart as Garry on Tv who could make sense of this media Real Estate scaremongering would cause the  market to setlle and return to normal. Then they would have nothing bad to report on. The golden rule of the media 'Bad News sells'

I am loving your atricles, we will have to grab lunch.

 

Paul

I think even Jim Kramer realized he made a too broad brushed statement. If you listen clearly he is talking about investing in real estate and not the average home buyer. The rebuttal Gary gives is a very clear a good view of the housing market as a whole. The biggest thing to be scared about is that bafoon we have as our President Elect for NAR.

That type of Lobbyist diatribe is what hurts us a professional industry when our leader looks like some man off the street confused and unclear as to what answer he should give to the audience!!!!!