Question 1:http://homes.wsj.com/columnists/housetalk/20060512-fletcher.html?refresh=on

-- Dick Moore, Arlington, Va

Question 2:http://activerain.com/action/question/view_question_consumer?question_id=4257

I am renting now and waiting for the prices to come down more before I buy. I have noticed that all the REO and short sale homes have asking prices that are on the high end of market value. How long before the deals start showing up? I really want to buy again but based on the median household income the prices will need to come down about 40% (in the 90808 area) before the average buyer can afford them. Is there a way to get a REO house for such a discount at this time?

Non-member response
Submitted 11/12/07 12:18 PM I got my information from melissadata.com and this is the info for the 90808 areaI wish to purchase in. Date Sold Avg Price Date Sold Avg Price Oct-07 18 $528,000 Oct-06 46 $626,000 Sep-07 20 $647,000 Sep-06 45 $662,000 Aug-07 33 $601,000 Aug-06 58 $630,000 Jul-07 46 $614,000 Jul-06 41 $622,000 Jun-07 35 $589,000 Jun-06 46 $628,000 May-07 48 $635,000 May-06 51 $602,000 Apr-07 54 $619,000 Apr-06 42 $589,000 Mar-07 33 $599,000 Mar-06 42 $607,000 Feb-07 26 $581,000 Feb-06 18 $568,000 Jan-07 40 $590,000 Jan-06 34 $590,000 TOTAL 353 $600,300 505 $612,167 Thank

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Very often, I run into questions above. 

Last week, my Mercedes won't start.  With my good next door Steve's diagnosis, I accepted Steve's help to do DIY approach. I bought a starter from O'reily and Steve would do the job without charge (I am not a handyman. Steve fixed my phone line for free.  What kind of neighborhood I picked up and moved into from LA, CA, without seeing my property before escrow were closed. Where I got my confidence to choose the community? )

At the last minute, Both of us gave up.  Why? Steve realize that there is no space for him to unplug the upper bolt even he can reach it and he is very skillful in mechanics. He felt so upset all night for having a big palm.  So, I have it towed to a garage and painfully pay the hefty bill (it was confirmed that starter is the cause, later).  We have a real problem: we don't have a right tool that costs me a labor charge $489.

No job can be done without right tools.  Same is true, to have a reliable right tool to know the housing market will put you in a better position than others. The general public don't know how to get most effective ways to see the current new development, particularly in a volatile market.  I don't blame them.  But you, an agent supposed to be a pro equipped with right tools?  Whom shall be blamed?  Me, your broker?  Or YOU!

As to data or index, almost everyone is familiar with such terms as area, city or zip-code average price or median price.  Thanks for the media's broad coverage.  Everybody use them in their conversation.  It seems we feel ourself out-of-date without those terms, just as in 1930' an intellectual felt uncomfortable if he didn't speak some terms used in Marx's "Communism." (he was an old guy living in the past, not deemed smart, academic, or advanced at that time.  Not a Starbuck's guy now.  Paying $5 for a cup of coffee?  Crazy to me.) 

But, how come I feel so terrible that I believe those terms are JUNKS, offering no help to me while I am searching a good REO deal as a pro?  Where is my tool box?  Am I a old dog, so stupid that I can't learn new tricks an average agent knows?

Yes, there are several helpful websites, such as Zillow.com. Most web service are giving us some raw materials, not very effective to the point.  In addition, those materials consume too much time for us to analyze.  So I have to develop my own tools.  I wish I could say the answer is "just a click away."

There are so huge demand from the general public to have such a tool I figured out.  However, All (maybe, except one) RE website operators don't know the practice of RE so that they are unable to see the need, let alone to meet the need.  I don't know nothing about computer programming.  If I do, I will create a free website so effective to meet the market niche and help the general public. It will be a big success to profit.

I love to collect RE recipes from other pros.  I like to read their inputs for enlightenment.  I am NOT satisfied by the reply provided by June Fletcher.  Those websites she mentioned are tools, indeed.  But they are general tools you can buy from Wal-mart for your household use or domestic cars.  They are definitely not a professional one to be used on a Mercedes.  What do you feel about her article?   What do you feel about these two terms: average price and median price?

Two cents for your thoughts on this topic, my fellow agents. 

After your inputs, I will tell you why I totally disregard those median or average housing price indexes published by the Press.  And how I do my own research to EASILY and MORE PRECISELY (still not time-saving, though) spot a real time housing market in Los Angeles REO market?  Oh, don't forget that I am a cheap guy.  They are free for me, and I will make sure it is free for you to navigate.  [please don't ask other market because I am too lazy to find it for you.  You have to use my method or logics to find it out for yourself, or anyone can help here for you.)

Well, I won't tell you my secret if you guys don't response. (In order for you to get it, you have to express your opinion on those two price terms or a website, not just hands out asking my formula.  I will make an exception: to personally email you my professional formula.  Still free of charge.  I don't do email list bulk sale, I promise. It is my policy: always post my answer openly here,  NOT by a private email. I may choose NOT post it here.)