It all happened today.
Yes, don’t tell me it’s Monday morning. The alarm was set for 4:30 am but I didn’t rise and shine until 4:50 am. No reason for the delay in getting up, it just happened. First off I got the computer going with access to database program which usually takes a bit of time to load. Then there was coffee. I heated up some from last night but it didn’t taste good. I think it was leftover decaf; I’m not a decaf type of guy. Instead, I made a new pot of the real stuff. I also put a bowl of oatmeal in the microwave for my wife.
Then it was back upstairs for my morning work. Just before 6 am I started my wife’s car and waited for her to get ready to depart for work. Just a bit more than a mist, there was just a drizzle of wetness in the air. Back at my computer I finished a assessment of a low appraisal which had come in on a property I had sold. The seller wasn’t in the mood to sell it for less than the original purchase price and the buyer wanted the house at a fair price. That seems logical. Well, just after 9 am when I finished my written opinion of the lower than low appraisal, I was literally flying to get showered and ready to get on with the day.
My first stop was a meeting with a competing company’s manager to discuss a salesperson who worked for him, then off to the office to turn in a new University Place rambler listing I had taken Friday afternoon. It’s a great property in a great neighborhood of mostly more expensive newer homes. Plus it’s listed at a great price. Then it was off to meet with a local bank’s manager to discern why it had become so difficult to communicate with them concerning a transaction they were financing for a buyer I represented. All in all, it was a so-so meeting, but later in the day it would prove to be beneficial. I suppose you could say I stirred the pot just enough.
Then back to the office to write directions and comments to be input with my new listing. Before I had a chance to escape, I also input a front picture of the property of my new listing. In response to an email I copied and emailed additional information to two clients in California. Yes it was way past time for lunch and I still hadn’t had breakfast. Where had the time gone? Whirling into my driveway, I again was on the fast tract for real nourishment; leftover eggs and hash browns from yesterday. All of a sudden I felt warm and cozy, no longer uneasy or inhibited from a lack of sustenance. But before I could return to the office, I had to get additional outside pictures of my new listing.
Back on the road again, I had a real purpose. But before I could get much accomplished, the phone rang. It was a call from a seller / agent who really didn’t want to see me. But I insisted that we needed to talk in person and I took off to meet them at their home. Sitting at their kitchen, they appeared relaxed yet nervous at the same time. I attempted to explain to them what I was doing I was distracted by a phone call from a lender who had information about the property those folks were attempting to sell to my client. They listened intently and seemed pleased that I was attempting to help but then, the phone rang. It was the lender calling to inform me that they would help solve our problem. Again, as they listened to just my side of the conversation, they seemed aware and anxious that something positive was happening.
Attempting to download the pictures I had taken, I found that the port in my office computer wasn’t reading the card I had inserted. Taking the computer apart didn’t help. As I was contemplating my next attack on my computer, a fellow agent stopped by and indicated he needed to talk. He came in pushing a roller chair, closed the door, sat down and told me that he was working with a former client of mine and the client had been referred to him by another office agent who has subsequently left real estate sales. He told me he had met with the clients last evening but he said he couldn’t help them until such time as he talked with me. I told him I was aware of the situation and while I believed the client’s actions were very hurtful to me, I didn’t have a problem with him working with them. I did however stipulate a number of items. First of all I said that I no longer had any files pertaining to their property. He said he didn’t need any of my files. Secondly I showed him an active comparable which I felt was superior in nearly every regard. “That is your competition,” I told him. And lastly, I told him I never wanted to discuss this situation or this particular client ever again. He agreed and just as fast as it had begun, our meeting was over.
Unhindered by what had just been discussed in my office, I was back in a nearby neighborhood talking with potential clients, going door-to-door passing out promotional material along with a business card size calendar. One man I met was very interested in what I was doing. Back at my computer I got additional information about him so I could mail him a thank you card.
Finally at home for the afternoon, I finally was able to extract the pictures from my camera and get them downloaded into the Windermere Photo Gallery for my new listing. All in all it was a wonderful busy day; eventful and exciting.
Beginning Tuesday morning, more to follow.
Monday, January 12, 2009
Sunday, January 11, 2009
What your Realtor did today
This morning my wife and I attended mass and instead of breakfast out, we got donuts and went home where we had eggs, bacon and hash browns. Of course we ate the donuts on the way home before we had breakfast. They were so sweet. I suppose we needed to be sweetened up a bit.
After breakfast, I started removing turkey and beef from bones we had from Christmas leftovers for a soup Kathleen was making. But, before I could get too far, I had a phone call and I had to run up to my computer. A client wanted information on a home he had saw in the newspaper ads and while we discussed it, he asked if I could show it to him. We decided to meet at 12 noon.
Afterwards I drove to an agent’s home to try and catch her to discuss a mutual pending sale we were working on together. Lately we had had difficulty connecting.
Once again on the run, after realizing I had old jeans on, I drove back home to change and then took off like lightening. First, I stopped by my office and got paperwork for an open house I was doing after my appointment. Second, met my client who, after seeing the home, said the home too much like scrambled eggs. He didn’t need another project. Then off like a bullet to my open house.
When I came home after my open house, the turkey/beef soup was delicious. Afterwards, I crashed in my recliner. I hope I'm just tired. Of course I'm not old. I have the energy of a youth. I just spend it every day.
Later in the evening, I made a couple of client calls. I hope everyone also had a productive day.
After breakfast, I started removing turkey and beef from bones we had from Christmas leftovers for a soup Kathleen was making. But, before I could get too far, I had a phone call and I had to run up to my computer. A client wanted information on a home he had saw in the newspaper ads and while we discussed it, he asked if I could show it to him. We decided to meet at 12 noon.
Afterwards I drove to an agent’s home to try and catch her to discuss a mutual pending sale we were working on together. Lately we had had difficulty connecting.
Once again on the run, after realizing I had old jeans on, I drove back home to change and then took off like lightening. First, I stopped by my office and got paperwork for an open house I was doing after my appointment. Second, met my client who, after seeing the home, said the home too much like scrambled eggs. He didn’t need another project. Then off like a bullet to my open house.
When I came home after my open house, the turkey/beef soup was delicious. Afterwards, I crashed in my recliner. I hope I'm just tired. Of course I'm not old. I have the energy of a youth. I just spend it every day.
Later in the evening, I made a couple of client calls. I hope everyone also had a productive day.
Thursday, January 1, 2009
New Year Memories - Great Buys
Of course I have many great New Year memories, but the one that popped into my head today was New Year’s Day 1972. At the time I was a senior at WSU and a number of us had returned to campus right after Christmas to finish papers due the end of the semester. Back then, the semester ended a couple of weeks after the Christmas break.
As a kid growing up, New Year’s Day had always been special and included a special dinner with friends and neighbors. Back then my folks used to bring out a bottle of port wine to signify that the meal was indeed a special event. Although I’ve never been quite sure of what exactly constitutes a port wine, sometimes they would let me take a sip. Anyway, in keeping with that tradition, I felt obligated to fix something special. Since a fraternity brother had left a couple of quail or ducks with me after a hunting trip, I thought they would make the perfect meal. But, as I began the preparations, I realized the birds still had feathers.
I reasoned that my mom knew everything, so I called her and asked how to get rid of the feathers. She told me to melt paraffin wax in a pan and dip the birds and when I removed the wax from the birds, the feathers would disappear. Surely, that sounded easy enough except, after I had dunked and removed each of the birds from the dripping wax, I found out that it wasn’t so easy to remove the wax and feathers. Actually, by the time I had finished, I literally believe I had broken every remaining bone in each birds little body. At the time it was very nerve racking but now it seems quite humorous. As I recall, my friends and I enjoyed a delectable feast and no one cared how the feathers were removed.
As to my real reason for being back on campus before the Christmas break had concluded; I finished my paper and had it turned in the first day back in class. Actually, it was a great paper and I received one of the two highest grades in the class. The class was a graduate economics class on discrimination and my paper was entitled “The Circular Tendency of Discrimination.” My wife says I still have a copy of it around somewhere. She believes I never throw away anything. I hope she’s right. It was a great paper and a great accomplishment. Something I still treasure.
As this relates to real estate, it reminds me of the eternal question of “What is value; what constitutes value; how do you measure value and who determines what that value is or should be?” Of course the paper I finished that Christmas break had great value to me. I gave my blood, sweat and tears finishing it and it earned me an exceptional grade in a graduate level class. Did I mention that the grade on the paper determined ones entire grade for the class? Well it did. The sole grade determinant was one single paper and I was triumphant and exuberant that I had done so well. That paper had real value and the grade I received was the measure of that success or value.
However, in residential real estate, value is primarily determined by buyers and supposedly quantified and substantiated by real estate appraisers using data from already closed transaction where buyers and sellers had come together in a meeting of the mind. A meeting of the mind is another way of referring to a sale price.
Just to stir the pot a bit, an economic adage states that value doesn’t always equal cost. With residential real estate, that’s another way of saying that some components of a home cost more than what a willing purchaser is willing for pay. Hot tubs are a quick example. Another one would be master bedroom soaking tubs. In those cases, the cost of the hot tub or soaking/Jacuzzi tub usually exceeds what most buyers would be willing to pay if the items were sold separate from the residential real estate. As an appraiser, those instances would be referred to as, “the contributory value, less depreciation, of the hot tub or soaking/Jacuzzi tub is less than the actual cost of those items when purchased new. Contributory value indicates that they are part of something greater; that they contribute to something which has many parts. The value of a whole house could also be less than the cost of building it. It’s what a willing buyer is prepared to pay.
But, getting back to value, let’s say that a builder buys a lot and builds a home. Let’s also say that the builder proposes to build a new residential home projected to cost $300,000 on a lot already purchased for $100,000. The builder goes the banker and fills out an application and hopes to get an appraisal of at least $400,000; $300,000 for the proposed improvements and $100,000 for the lot to build it on. If an appraiser, after an inspection of the property and review the building plans (specifications), is able to concur with the builder and conclude that the value of the residential real estate, once completed, is at least $400,000, then the builder will typically get a loan from the bank and begin construction.
However, if after the home is completed and if it still remains unsold, does it still have a value of $400,000? Not necessarily. Furthermore, it doesn’t have a higher value either. It isn’t until someone steps up to the plate and completes a purchase of the property at a price agreeable to both the buyer and the builder, who is also the seller, that value is confirmed. As with the earlier example, the cost of building the home isn’t necessarily the value of that home when exposed on the open market.
This is very important. I’m constantly being told, “Well my home was appraised last year for $400,000 and therefore, that’s what it is worth today.” Sorry, it’s only worth that today if the market will support that price and a willing and able buyer is willing to pay that amount. Here again, it is important to recognize that the value conclusion of a real estate appraiser, completed by a licensed or certified appraiser, is as of a specific day and time. It isn’t intended to represent a value that will exist to any other date or expand into the future. This is especially true today. In today’s market, value is a moving target. It isn’t constant and it’s constantly changing.
Another economic principle is that change is expected to occur; that markets will change and react differently to altering conditions and influences. That is why it is called the “principle of change.”
Looking at our current Pierce County market, one indicator I pay a lot of attention to is the medium price of the unsold residential housing inventory. These include all unsold homes which are currently listed for sale on the Northwest MLS. The medium price is the price of the home most near to the middle of all of the homes available at any given time. As an example, on January 1st, 2008, the medium price of all unsold residential homes in Pierce County was $310,500; $351,500 in Bonney Lake; $535,000 in Gig Harbor; $287,825 in Lakewood; $265,448 in Spanaway; $259,000 in Tacoma; and $400,000 in University Place.
In statistics I ran this morning, the medium price of the unsold residential inventory in Pierce County was $285,845; $315,000 in Bonney Lake; $499,925 in Gig Harbor; $267,000 in Lakewood; $225,000 in Spanaway; $234,950 in Tacoma; and $369,900 in University Place. Yes, there have been changes and this data indicates that the list prices of the unsold residential inventory are being reduced. This is a reflection of perceived market changes and an attempt to become more competitive.
What all of this suggests is that, if not already, residential real estate will soon become a hot commodity. In other words, it’s a great time to be buying real estate. The list price (asking price) of residential real estate and the interest rates to purchase those properties are at the lowest levels in years.
For those of you still on the fence, let’s look at statistics of the medium price of the unsold inventory from September of 2004. In Pierce County the medium price of the unsold inventory was $225,000; in Bonney Lake it was $257,400; in Gig Harbor it was $349,000; in Lakewood it was $209,950; in Spanaway it was $192,450; in Tacoma it was $188,990; and in University Place it was $290,000. You do the math. Real estate is still a great buy.
Ken Thiemann is a Real Estate Consultant with Windermere RE / Paragon Company located at 7525 28th Street West in University Place, Washington. In addition to holding an associate broker’s license, he is also a Washington State certified appraiser. Due to stringent appraisal reporting requirements, Thiemann points out that the majority of the valuation consulting he does is completed under his broker’s license. When possible he completes manual statistics of various market areas throughout Pierce County. Since 2004, he is particular interested in homes listed and sold over $800,000. For instance, in December of 2004 there were 95 homes throughout Pierce County listed over $800,000. In statistics ran this morning, there were 395 homes listed over $800,000. Thiemann attempts to use statistics to help his sellers better understand the market in order to facilitate a quicker sale. Thiemann was originally licensed in 1972 and earned his broker’s license in 1976.
As a kid growing up, New Year’s Day had always been special and included a special dinner with friends and neighbors. Back then my folks used to bring out a bottle of port wine to signify that the meal was indeed a special event. Although I’ve never been quite sure of what exactly constitutes a port wine, sometimes they would let me take a sip. Anyway, in keeping with that tradition, I felt obligated to fix something special. Since a fraternity brother had left a couple of quail or ducks with me after a hunting trip, I thought they would make the perfect meal. But, as I began the preparations, I realized the birds still had feathers.
I reasoned that my mom knew everything, so I called her and asked how to get rid of the feathers. She told me to melt paraffin wax in a pan and dip the birds and when I removed the wax from the birds, the feathers would disappear. Surely, that sounded easy enough except, after I had dunked and removed each of the birds from the dripping wax, I found out that it wasn’t so easy to remove the wax and feathers. Actually, by the time I had finished, I literally believe I had broken every remaining bone in each birds little body. At the time it was very nerve racking but now it seems quite humorous. As I recall, my friends and I enjoyed a delectable feast and no one cared how the feathers were removed.
As to my real reason for being back on campus before the Christmas break had concluded; I finished my paper and had it turned in the first day back in class. Actually, it was a great paper and I received one of the two highest grades in the class. The class was a graduate economics class on discrimination and my paper was entitled “The Circular Tendency of Discrimination.” My wife says I still have a copy of it around somewhere. She believes I never throw away anything. I hope she’s right. It was a great paper and a great accomplishment. Something I still treasure.
As this relates to real estate, it reminds me of the eternal question of “What is value; what constitutes value; how do you measure value and who determines what that value is or should be?” Of course the paper I finished that Christmas break had great value to me. I gave my blood, sweat and tears finishing it and it earned me an exceptional grade in a graduate level class. Did I mention that the grade on the paper determined ones entire grade for the class? Well it did. The sole grade determinant was one single paper and I was triumphant and exuberant that I had done so well. That paper had real value and the grade I received was the measure of that success or value.
However, in residential real estate, value is primarily determined by buyers and supposedly quantified and substantiated by real estate appraisers using data from already closed transaction where buyers and sellers had come together in a meeting of the mind. A meeting of the mind is another way of referring to a sale price.
Just to stir the pot a bit, an economic adage states that value doesn’t always equal cost. With residential real estate, that’s another way of saying that some components of a home cost more than what a willing purchaser is willing for pay. Hot tubs are a quick example. Another one would be master bedroom soaking tubs. In those cases, the cost of the hot tub or soaking/Jacuzzi tub usually exceeds what most buyers would be willing to pay if the items were sold separate from the residential real estate. As an appraiser, those instances would be referred to as, “the contributory value, less depreciation, of the hot tub or soaking/Jacuzzi tub is less than the actual cost of those items when purchased new. Contributory value indicates that they are part of something greater; that they contribute to something which has many parts. The value of a whole house could also be less than the cost of building it. It’s what a willing buyer is prepared to pay.
But, getting back to value, let’s say that a builder buys a lot and builds a home. Let’s also say that the builder proposes to build a new residential home projected to cost $300,000 on a lot already purchased for $100,000. The builder goes the banker and fills out an application and hopes to get an appraisal of at least $400,000; $300,000 for the proposed improvements and $100,000 for the lot to build it on. If an appraiser, after an inspection of the property and review the building plans (specifications), is able to concur with the builder and conclude that the value of the residential real estate, once completed, is at least $400,000, then the builder will typically get a loan from the bank and begin construction.
However, if after the home is completed and if it still remains unsold, does it still have a value of $400,000? Not necessarily. Furthermore, it doesn’t have a higher value either. It isn’t until someone steps up to the plate and completes a purchase of the property at a price agreeable to both the buyer and the builder, who is also the seller, that value is confirmed. As with the earlier example, the cost of building the home isn’t necessarily the value of that home when exposed on the open market.
This is very important. I’m constantly being told, “Well my home was appraised last year for $400,000 and therefore, that’s what it is worth today.” Sorry, it’s only worth that today if the market will support that price and a willing and able buyer is willing to pay that amount. Here again, it is important to recognize that the value conclusion of a real estate appraiser, completed by a licensed or certified appraiser, is as of a specific day and time. It isn’t intended to represent a value that will exist to any other date or expand into the future. This is especially true today. In today’s market, value is a moving target. It isn’t constant and it’s constantly changing.
Another economic principle is that change is expected to occur; that markets will change and react differently to altering conditions and influences. That is why it is called the “principle of change.”
Looking at our current Pierce County market, one indicator I pay a lot of attention to is the medium price of the unsold residential housing inventory. These include all unsold homes which are currently listed for sale on the Northwest MLS. The medium price is the price of the home most near to the middle of all of the homes available at any given time. As an example, on January 1st, 2008, the medium price of all unsold residential homes in Pierce County was $310,500; $351,500 in Bonney Lake; $535,000 in Gig Harbor; $287,825 in Lakewood; $265,448 in Spanaway; $259,000 in Tacoma; and $400,000 in University Place.
In statistics I ran this morning, the medium price of the unsold residential inventory in Pierce County was $285,845; $315,000 in Bonney Lake; $499,925 in Gig Harbor; $267,000 in Lakewood; $225,000 in Spanaway; $234,950 in Tacoma; and $369,900 in University Place. Yes, there have been changes and this data indicates that the list prices of the unsold residential inventory are being reduced. This is a reflection of perceived market changes and an attempt to become more competitive.
What all of this suggests is that, if not already, residential real estate will soon become a hot commodity. In other words, it’s a great time to be buying real estate. The list price (asking price) of residential real estate and the interest rates to purchase those properties are at the lowest levels in years.
For those of you still on the fence, let’s look at statistics of the medium price of the unsold inventory from September of 2004. In Pierce County the medium price of the unsold inventory was $225,000; in Bonney Lake it was $257,400; in Gig Harbor it was $349,000; in Lakewood it was $209,950; in Spanaway it was $192,450; in Tacoma it was $188,990; and in University Place it was $290,000. You do the math. Real estate is still a great buy.
Ken Thiemann is a Real Estate Consultant with Windermere RE / Paragon Company located at 7525 28th Street West in University Place, Washington. In addition to holding an associate broker’s license, he is also a Washington State certified appraiser. Due to stringent appraisal reporting requirements, Thiemann points out that the majority of the valuation consulting he does is completed under his broker’s license. When possible he completes manual statistics of various market areas throughout Pierce County. Since 2004, he is particular interested in homes listed and sold over $800,000. For instance, in December of 2004 there were 95 homes throughout Pierce County listed over $800,000. In statistics ran this morning, there were 395 homes listed over $800,000. Thiemann attempts to use statistics to help his sellers better understand the market in order to facilitate a quicker sale. Thiemann was originally licensed in 1972 and earned his broker’s license in 1976.
Sunday, December 14, 2008
Getting ready for Christmas,
Although Christmas is still two weeks away, planning for the whole family to come home for Christmas began the Saturday after Thanksgiving. Of course that meant I was going to have to organize, sort, reorganize and file the numerous stacks of paperwork I had sitting on nearly every table, corner and countertop around our home. Obviously I had promised I would get it done before everyone arrived, but it's still stressful. At this point I would say I am about 40% into the job and it's starting to look pretty nice. I'm getting lots accomplished. I suppose it's not as stressful as I had once thought.
Also, I’m still working as hard as ever with my real estate listings and sales. With everything going on in the economy, I know it’s still difficult for buyers and sellers to think forward but it’s really an excellent time to buy that smaller or larger home. In our area, prices are below 2006/2007 prices and interest rates are at the lowest point in nearly two years. In my book that amounts to a win-win for everyone.
But, some sellers are thinking, “I don’t want to give my home away.” Although I really don’t know exactly what that means, I think it means ‘I won’t sell my home for less than what I feel it’s worth.’ Except the workings of the market tells us the value of a home. It’s not some conjured dollar amount a seller really feels strongly about. That’s why, in our market area, those home which are actually being sold are homes which have been reduced to the point where the market meets the expectations and capabilities of the available buyers. Now it’s true that some homes sell for more than what most of us believe is market value. Yet, in those rare cases, there is something unique or cute about that property where its market appeal just simply exceeds the overall market. All of the rest have to be competitively priced according to location, size and features in order to find that special qualified buyer.
Of course, qualified means one having an acceptable credit score. Except now isn’t the right time to get me started on the virtues of credit scoring. I’ll speak more on that topic another time.
Now, getting back to why now is a great time to buy, let’s assume that two/three years ago a house sold for $300,000 and it’s now available for $225,000. Let’s also assume it is your home which you won’t give away. But in this hypothetical situation you sell it and purchase a home which sold for $700,000 two/three years ago for $525,000. Let’s figure this out. On the sale of your home you lost $75,000. But on the home you purchased, you saved $125,000. Isn’t that a savings of $50,000? Both scenarios assume the very same 25% loss of value.
As for the financing, if it was 6% or more two/three years ago and it’s now just over 5%, on a $500,000 note that’s an additional savings of $416.67 per month. (6% minus 5% = 1% times $500,000 equals $5,000 divided by 12 months in the year is = to $416.67 per month)
It’s not just a good time to buy, it’s an excellent time. So get off the couch and give me a call at (253) 370-5626 and I’d be happy to work and compare the specific numbers to your situation.
As to my continued Christmas preparation, I was only interrupted once in preparing this blog. My wife wanted me to help bring in the groceries and she wanted me to go with her to pick up a new mattress and box spring. Lucky for me she let me come back and finish. I do love Christmas, especially with everyone coming home. I am not a shopper though. But my wife loves it. In exchange I rub her feet. We make a good pair.
Until next time, Merry Christmas and happy house hunting to all.
Also, I’m still working as hard as ever with my real estate listings and sales. With everything going on in the economy, I know it’s still difficult for buyers and sellers to think forward but it’s really an excellent time to buy that smaller or larger home. In our area, prices are below 2006/2007 prices and interest rates are at the lowest point in nearly two years. In my book that amounts to a win-win for everyone.
But, some sellers are thinking, “I don’t want to give my home away.” Although I really don’t know exactly what that means, I think it means ‘I won’t sell my home for less than what I feel it’s worth.’ Except the workings of the market tells us the value of a home. It’s not some conjured dollar amount a seller really feels strongly about. That’s why, in our market area, those home which are actually being sold are homes which have been reduced to the point where the market meets the expectations and capabilities of the available buyers. Now it’s true that some homes sell for more than what most of us believe is market value. Yet, in those rare cases, there is something unique or cute about that property where its market appeal just simply exceeds the overall market. All of the rest have to be competitively priced according to location, size and features in order to find that special qualified buyer.
Of course, qualified means one having an acceptable credit score. Except now isn’t the right time to get me started on the virtues of credit scoring. I’ll speak more on that topic another time.
Now, getting back to why now is a great time to buy, let’s assume that two/three years ago a house sold for $300,000 and it’s now available for $225,000. Let’s also assume it is your home which you won’t give away. But in this hypothetical situation you sell it and purchase a home which sold for $700,000 two/three years ago for $525,000. Let’s figure this out. On the sale of your home you lost $75,000. But on the home you purchased, you saved $125,000. Isn’t that a savings of $50,000? Both scenarios assume the very same 25% loss of value.
As for the financing, if it was 6% or more two/three years ago and it’s now just over 5%, on a $500,000 note that’s an additional savings of $416.67 per month. (6% minus 5% = 1% times $500,000 equals $5,000 divided by 12 months in the year is = to $416.67 per month)
It’s not just a good time to buy, it’s an excellent time. So get off the couch and give me a call at (253) 370-5626 and I’d be happy to work and compare the specific numbers to your situation.
As to my continued Christmas preparation, I was only interrupted once in preparing this blog. My wife wanted me to help bring in the groceries and she wanted me to go with her to pick up a new mattress and box spring. Lucky for me she let me come back and finish. I do love Christmas, especially with everyone coming home. I am not a shopper though. But my wife loves it. In exchange I rub her feet. We make a good pair.
Until next time, Merry Christmas and happy house hunting to all.
Tuesday, May 6, 2008
Was it a good buy?
Good morning! Yes, I realize my commitment to blog more often has yet to be realized. However, those topics which I have chosen to comment about have been very timely and on target. It’s not so much that I don’t want to contribute regularly. Instead it’s just that I just feel totally stretched with my real estate sales and by the time I could be blogging, I’m asleep in my recliner.
Anyway, in my last blog I mentioned that I was recommending that homebuyers first determine what they can qualify for coupled with what they are actually willing to pay for house payments. Next, determine how much home those payments will support. And finally, buy the least expensive home in the nicest area available. This seems relevant to restate because yesterday a coworker mentioned that a buyer who had considered one of her listings had instead made an offer on a property she described as, “the most expensive home in a neighborhood of less expensive properties.” She further added that the buyers wanted a home that had been totally remodeled; a home they could move into and begin enjoying immediately.
As I listened to my associate’s story, I couldn’t help but think that that was exactly the opposite of what I have been recommending. Perhaps they hadn’t read my blog. Unfortunately, being the observer of human behavior that I am, I believe they, like so many buyers today, feel there isn’t time to give perfection to an imperfect home. They feel they are just too busy making a living and taking care of their families to add anything extra. And while I would like to disagree, that attitude does make sense. I’ve often made the same analysis when comparing those who are able to participate in political activities to those who are just too busy making a living and raising kids.
But, just because it makes sense doesn’t mean it’s the best approach to buying a home. However, I don’t have to make their house payments or worry as to whether I’ll have enough equity in two to three years when my family needs a larger home or a transfer is in the works. I’m figuring that, in years to come, a typical homebuyer will have to live in a property at least three years in order to break even. Unfortunately, breaking even in three years becomes increasingly difficult when one buys the most expensive home in any neighborhood.
On the news front, the State Legislature has enacted legislation aimed that unlicensed flippers. Although there currently doesn’t appear to be any teeth in the new law, it is a step in the right direction. Also those salespeople targeting homeowners in default have come under the scrutiny of the legislature. More details will be forthcoming.
Until then,
Do Good ….. BE GREAT ….. 110% …..
Anyway, in my last blog I mentioned that I was recommending that homebuyers first determine what they can qualify for coupled with what they are actually willing to pay for house payments. Next, determine how much home those payments will support. And finally, buy the least expensive home in the nicest area available. This seems relevant to restate because yesterday a coworker mentioned that a buyer who had considered one of her listings had instead made an offer on a property she described as, “the most expensive home in a neighborhood of less expensive properties.” She further added that the buyers wanted a home that had been totally remodeled; a home they could move into and begin enjoying immediately.
As I listened to my associate’s story, I couldn’t help but think that that was exactly the opposite of what I have been recommending. Perhaps they hadn’t read my blog. Unfortunately, being the observer of human behavior that I am, I believe they, like so many buyers today, feel there isn’t time to give perfection to an imperfect home. They feel they are just too busy making a living and taking care of their families to add anything extra. And while I would like to disagree, that attitude does make sense. I’ve often made the same analysis when comparing those who are able to participate in political activities to those who are just too busy making a living and raising kids.
But, just because it makes sense doesn’t mean it’s the best approach to buying a home. However, I don’t have to make their house payments or worry as to whether I’ll have enough equity in two to three years when my family needs a larger home or a transfer is in the works. I’m figuring that, in years to come, a typical homebuyer will have to live in a property at least three years in order to break even. Unfortunately, breaking even in three years becomes increasingly difficult when one buys the most expensive home in any neighborhood.
On the news front, the State Legislature has enacted legislation aimed that unlicensed flippers. Although there currently doesn’t appear to be any teeth in the new law, it is a step in the right direction. Also those salespeople targeting homeowners in default have come under the scrutiny of the legislature. More details will be forthcoming.
Until then,
Do Good ….. BE GREAT ….. 110% …..
Wednesday, April 2, 2008
Simple Advice
Some simple advice about your next home purchase.
#1. Meet with and discuss your finances with an established lender to determine how much of a home you can purchase and to decide how much of what you can afford you are actually willing o commit to a new house payment. Determine the specific price range you want to consider. Basically, it’s getting your financial house in order. Personally, I would suggest you stay away from the lenders who are advertising on local radio and television stations. Talk with someone you trust and see who they might recommend or be willing to refer you to see. If something sounds too good to be true, trust your instincts. But, most importantly, be patient.
#2. Get acquainted with a good Realtor. Obviously, for selfish reasons I would hope that would be me. In fact I was referred to as the "Better Broker" yesterday by a peer. It was very flattering.
#3. Look for the least expensive home in the nicest neighborhood which is within the price range you have determined you want to consider. Review the statistics of the neighborhoods you are considering and only consider homes which are at or below the medium price of the homes in any given neighborhood.
Actually these rules are not my own and I don’t really remember where I first heard them. But they make good financial sense. In our world today, too many buyers are only willing to accept something new or perfect or remodeled and end up paying well beyond the medium price for the location they have chosen. In those cases, if you do end up having to sell within the first few years of your ownership, your home should be easier to sell. Again, to review the benefits of home ownership please refer to my previous blog entries.
Thanks for showing up and do have a great day always remembering to:
Do Good ….. BE GREAT ….. 110% …..
#1. Meet with and discuss your finances with an established lender to determine how much of a home you can purchase and to decide how much of what you can afford you are actually willing o commit to a new house payment. Determine the specific price range you want to consider. Basically, it’s getting your financial house in order. Personally, I would suggest you stay away from the lenders who are advertising on local radio and television stations. Talk with someone you trust and see who they might recommend or be willing to refer you to see. If something sounds too good to be true, trust your instincts. But, most importantly, be patient.
#2. Get acquainted with a good Realtor. Obviously, for selfish reasons I would hope that would be me. In fact I was referred to as the "Better Broker" yesterday by a peer. It was very flattering.
#3. Look for the least expensive home in the nicest neighborhood which is within the price range you have determined you want to consider. Review the statistics of the neighborhoods you are considering and only consider homes which are at or below the medium price of the homes in any given neighborhood.
Actually these rules are not my own and I don’t really remember where I first heard them. But they make good financial sense. In our world today, too many buyers are only willing to accept something new or perfect or remodeled and end up paying well beyond the medium price for the location they have chosen. In those cases, if you do end up having to sell within the first few years of your ownership, your home should be easier to sell. Again, to review the benefits of home ownership please refer to my previous blog entries.
Thanks for showing up and do have a great day always remembering to:
Do Good ….. BE GREAT ….. 110% …..
Tuesday, March 4, 2008
Happy Tuesday Greetings
Well, it's Tuesday and I'm off to a meeting. Again I must apologize for being an irregular blogger. My real estate work has been a priority. Sales and listings are more difficult to get and keep together. Consequently, I am spending every available minute talking and communicating with friends, acquaintances, even strangers; time which keeps me away from blogging.
But, having been through real estate markets like this, I know that eventually it will all work out. I'm keeping the faith and working diligently each and every day.
I hope you're also in good spirits this fine day and off to do good things and seek great accomplishments. I wish you good luck. Good luck to all of us.
Do Good ..... BE GREAT ..... 110% .....
But, having been through real estate markets like this, I know that eventually it will all work out. I'm keeping the faith and working diligently each and every day.
I hope you're also in good spirits this fine day and off to do good things and seek great accomplishments. I wish you good luck. Good luck to all of us.
Do Good ..... BE GREAT ..... 110% .....
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