For over a year now my office has been preparing for the coming storm. Some of you are already beginning to see the rip currents but still havent' experienced the tsunami. DOOM GLOOM...Nope..not if you're prepared.
What is the storm? The sarcastic side of me raises my eyebrow that you'd believe the media for one moment that the worst is over! Oh, but you say..I'm already doing great this year. Yup you will. So what's ahead. Now I'm no lender, market analyst or any such learn-ed creature. I'll tell you what I've been told and see if you agree that we better get the lifeboats and jackets ready and make sure there are flares.
THE STORM
1. Rip currents- Jan 1 next year will be the first of the "baby boomers" retiring and beginning to draw their promised "pension" of SSI/Medicaid/Medicare, a system which is already bankrupt and borrowing money from us and our children.
2. THE BIG WAVE- The 5 Year ARMS adjust next year. If you think last year was rough, geez peeps, that was just the 2-3 year arms. A paltry amount considering the nearly triple amount of jumbos still to go through the adjustment and/or forclosures. Speaking of:
3. Shadow inventory- Let me explain. The banks got their lovely bailout funds, didn't lend them, forclosed on homes and have NOT released a goodly portion of them back on the markets. WHY NOT? you ask. Well that would further devalue our markets right? And in a time of economic struggle and joblessness the people have to believe they have something of value still. Besides let's get real. The banks are holding them cuz it pads their portfolios so more "investors" will invest in their company. Makes em look like Brad Pitt in Fight Club if ya know what I mean.
Doom Gloom Doom Gloom.....nope... a smaller nope, but nope.
So what do we have to do to weather the storm
1. Your lifeboat and My personal ARCH NEMESIS-Embrace Tech. Ugg. See I have a generic post without frills, just words on a page. I think the pics and fun fonts are for the magazines. I'm here to learn. And I'm not old. I just have priorities and my family comes before learning IDX feeds and hyperlinks. Can anyone explain Wolfnet..never mind. Get hyper social network crazy. Yep got that one down. But I will overcome and my Tech Lifeboat will be readied whether I like it or not.
2. Prepare your Flares-Your sellers. If they cannot sell at the market value now, what happens when they are competing with 7-10 million MORE REO properties to be released like a feature film, at a later date! Christmas Eve perhaps. Happy Ho Ho. Are they really going to want to compete with those and lose every bit of equity or bring countless dollars to closing. Heck they're doing that now, what do think will happen next year?
3. Get your emergency kit ready- Really fellow Realtors. Save your money. Gone are the days of getting a great close, going out and spending on vacation, shopping or that new toy. The new toy needs to be named "no debt", a paid for home, 6 months reserves in the bank or more. Save Save. We're done with the culture of spend. Our government is doing plenty of that 4 us! Heck they think they're at the KMART blue light special with our tax dollars and the Martha Stewart linens are flying off the shelves. RUN Blue Lighters! SAVE YOUR MONEY! Do what your grama did..get a piggy bank.
Attention Passengers..following these key steps could save your a... I mean career. Get ready folks. The next tsunami is coming. Will you ride the wave in your lifeboat or be stupid and do as you've always done and coasted along just like the daredevil surfer taking on the big one. Problem is..he always ends up dead. Will you be a Realtor in the next coming wave?
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