There’s always something to howl about.

Category: Real Estate (page 136 of 266)

Down Payment Assistance is another creative financing option you can deploy to make sure yours is the home that sells

This is my column for this week from the Arizona Republic (permanent link):

 
Down Payment Assistance is another creative financing option you can deploy to make sure yours is the home that sells

It’s a hard world for home sellers right now. It’s possible that things are slowly getting better, but a qualified buyer still has at least ten suitable homes to choose from.

Does this mean you might sell now, or you might sell a little later? Probably not.

Does it mean you might sell for your price, or you might have to accept a little less? Probably not.

What it means is that, if your home is not the one that answers most of a potential buyer’s needs, it probably won’t sell at all in this market.

We’ve talked before about being the most appealing — best priced, best prepared, best presented. These are the homes that will sell to the best qualified buyers — while the near-misses languish month-after-month.

We’ve talked about using seller-financing to help less-qualified buyers. Carrying back a note for a third mortgage entails a risk of loss, but, again, that marginal difference can be moot if the house wouldn’t sell otherwise, or if it sells months later for a much lower price.

There is another creative financing avenue you can pursue, although this one comes with an assured loss to the seller. It’s called Down Payment Assistance. Through programs like AmeriDream or Nehemiah, sellers contribute a portion of the sales price to serve as down payment or closing cost assistance to the buyers, who receive those funds at close of escrow as a grant.

This is what I call Psycho Lender Math at its worst, since the lender is permitting the sellers to discount the home by a huge percentage while pretending that that same pile of money is coming to the buyers as a grant from a neutral third party.

The house still has to appraise for the full purchase price, so it really is just a seller discount disguised as a shell game — but if it means your house sells while all the others languish, you still might be ahead of the Read more

The Light At The End Of The Tunnel Is Really An Oncoming Train

Snowball Effect Continues To Negatively Affect The Housing Market

We might be in for a bumpier ride than previously thought. I believe in optimism – but I am a realist, first. As I look closer at the stats, talk to other brokers and agents, and peruse the news and blogs – it’s getting downright scary.

Last week here in Atlanta, Century 21 Dwellings closed five of its six offices. Dwellings President Chris Ballard said, “It was a financial decision. I was losing money at every location.” With red ink flowing at the rate of $75K a month – you can appreciate his decision.

I recently discovered that a few of Atlanta’s top agents were getting killed, as well. Agents that had done hundreds of sales per year no longer able to hit a hundred sales in the last 12 months.

Speaking with a few builders has been interesting, too. My first inclination is that the availability of labor must be plentiful and cheap – but that’s not necessarily the case. Many of the illegal aliens have returned to Mexico. One Mexican contractor – with six trucks – now only has one in service at any given time… and even that one isn’t always in service.

The dirty little secret is that many of these illegal aliens were able to purchase homes – but with no work, they are simply leaving the house behind as they go back to Mexico. It’s not like they are out a lot of money, either. Many of them were financed with “no money down” mortgage products, including option ARM’s.

Atlanta has seen an average of 3000+ foreclosures per month for several years now – but last month we had just under 7000 foreclosures… and the storm is still coming.

Foreclosures are the lion’s share of the Atlanta resale residential market right now, and with the onslaught that is coming – that fact won’t be changing anytime soon in this writer’s mind.

So I am into the bunker mentality right now. I haven’t taken on any clients that I am not convinced that I have a better than 50-50 chance of earning my Read more

The Odysseus Medal: Amy Winehouse is not in the house

Judging this contest, I get to read a lot of talented writers. But only one can connect Amy Winehouse to real estate and have it all make the most delightful kind of sense. The Odysseus Medal this week goes to Geno Petro for She tried to make me buy a rehab…:

Truth is; I can barely swing a hammer….Let me rephrase that; I can swing the hell out of a hammer but just not in a constructive way. I am not the fixer-upper type, in case we haven’t met. (See mug shot above for clarity.) I probably err to the side of demolition, if anything.

That being said, my lovely wife (and occasional muse) found a possible second home that in theory, could fulfill our retirement needs during those forthcoming platinum years that Dennis Hopper pitches on the Ameriprise commercials during prime time every night. All things equal, he’s my favorite corporate sell out so far this century, that Dennis Hopper.  Cool, quirky and rich beyond words, for sure.

“60 is the new 40,” exclaims my man, sharply dressed in black, The Spencer Davis Group blaring in the background, and looking unlike like any beshaded 72 year old cat I’ve ever met.  And I’m all over it. According to DH, I’ve got 40 more good ones ahead of me. According to his math and blueprint for living, I’m barely 34.  When he comes on the plasma in high def I get a sudden urge to run out and invest in something spectacular before I lose another precious second. I yearn to  join the expedition, or at the very least, embark on the journey to financial freedom.  After all, one man’s destination is another man’s starting point. Ask any truly wealthy person (9 figures+ by my definition) and I’m certain he will tell you as much. “It’s the journey, not the…” whatever.

But the ‘hidden gem’ my wife came across this past weekend, a shack on the Tennessee River, needs some serious attention; more attention than I’m prepared to pay for, quite frankly. She found it on the Film Location site our own house is registered with (unbeknownst to me until a few months ago). And in case you didn’t know, there is a market Read more

Three important real estate questions for an early Monday morning

Another killer day yesterday, almost 1,600 unique visitors on a Sunday. We’d have been lucky to have half this on a Sunday two months ago — and we were doing great then!

Just everyday content — lender stuff, Realtor stuff and the long tail. But here are three interesting questions to ask yourself this morning:

1. In the greatest real estate agent in the world contest, how did Greg Boser get to be number one — for now?

2. Why is Eric Blackwell going to win the contest in the end?

3. If you have a geographical listing farm, how can you dominate every possible search term referring to that farm with multiple page one entries?

Eric already figured out the answer to question number one, and he may or may not share his results with you.

I think he’s pledged to tell you the answer to question number two, once he wins the contest.

For the answer to question number three, you’ll have to come to Unchained. As before, I’m not terribly interested in being your buddy, and I for damned sure don’t want to be your wet nurse. But we have some brand new ideas about driving traffic — just the kind of seeing around corners ideas you expect from BloodhoundBlog. If you’re in business to make money, we’re going to show you a better way to be found by your clients — and a better way of working with them once they find you.

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Just as a reminder, the theme song for the upcoming BloodhoundBlog Unchained Social Media Marketing Conference is “I won’t back down” by Tom Petty

Oh, good grief.

Normally, when the RE.net goes through one of these public breast-beating episodes, I just stay out of it. I don’t read the posts, first because they’re stupid and comical, and second because there’s nothing that I’m going to say that’s not going to fan the flames. The arguments always turn on the Fallacies Tu Quoque and Two Wrongs Make a Right, as do all appeals to the mob, and people running in mobs are just an embarrassment to the idea of being a human being.

This is unintentionally hilarious, though, so I thought I’d quote it. If you don’t know what’s going on, I promise you it does not matter.

I’m going to leave my opinions out of the discussion in order to leave more space for these people to see the error of their ways, apologize profusely, and re-enter our community in a constructive manner.

Permit me to introduce myself. My name is Greg Swann, founder of BloodhoundBlog, which is justifiably famous for telling the straight truth, and this seems like an apposite moment to remind you that the theme song for the upcoming BloodhoundBlog Unchained Social Media Marketing Conference is “I won’t back down” by Tom Petty.

Here are the Heartbreakers performing that song at the Super Bowl:

If you’re looking for buddies — kindly folks who will forgive all your short-comings, at least until it becomes expedient to turn on you — this is probably not the place for you. If your plan is to commit egregious acts of cupidity or stupidity and somehow escape withering criticism — change the channel. If you entertain a Romper-Room-like dream of playing placidly with all the other special kids on the short bus — you’re on the wrong bus.

If, on the other hand, you want to learn how to organize your working life so that you never again have to take shit from morons, you’ve come to the right place. We are all about the ninety-and-nine here, and we are all about the work — deploying better ideas to do our work better, faster and more profitably. I don’t go out of my way Read more

The Odysseus Medal competition — Voting for the People’s Choice Award is open

We have 18 entries on the short list this week, out of a long list of 74 posts.

Vote for the People’s Choice Award here. You can use the voting interface to see each nominated post, so comparison is easy.

Ahem: Please don’t spam all your friends to come and vote for you. First, what we’re interested in is what is popular among people who would have been voting anyway. And second, I’ll eliminate you for cheating. Don’t say you weren’t warned.

Voting runs through to 12 Noon MST Monday. I’ll announce the winners of this week’s awards soon thereafter.

Here is this week’s short-list of Odysseus Medal nominees:

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“Brian Boero — Partial vision
Partial vision“,
“Brian Brady — Are You Blogging For Speed? Are You Blogging For Speed?“,
“Dan Green — Ignoring Adjectives How Ignoring Adjectives Can Improve Your Understanding Of Mortgages“,
“Dan Green — Mortgage Rates Why Mortgage Rates Don’t Look Like They’re Coming Back Down Any Time Soon“,
“Geno Petro — She tried to make me buy a rehab She tried to make me buy a rehab…“,
“Harvey Edgecombe — Barack Obama versus the US Economy Barack Obama versus the US Economy“,
“Jay Thompson — Dale Stinton Stops By NARWisdom.com NAR CEO Dale Stinton Stops By NARWisdom.com“,
“Kris Berg — A lesson in push(y) marketing. A lesson in push(y) marketing.“,
“Kris Berg — In sickness or in health In sickness or in health – It’s viral.“,
“Mike Farmer — Due Diligence and Real Estate Due Diligence and Real Estate“,
“Mike Farmer — The Religion (Tyranny) of Niceness The Religion (Tyranny) of Niceness“,
“Mike Price — Armchair Quarterbacking Real Estate 2.0 Armchair Quarterbacking Real Estate 2.0“,
“Morgan Brown — McCain’s Mum on Mortgage Reform McCain’s Mum on Mortgage Reform“,
“Morgan Brown — New conforming limits New conforming limits – what will it do to jumbo loan rates?“,
“Nick Bostic — Save the World (and some money) Save the World (and some money)“,
“Teri Lussier — The training of the shrewd The training of the shrewd“,
“Todd Carpenter — Why Google Page Rank Matters Perception Is Reality, Why Google Page Rank Matters“,
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  • Thanks to BloodhoundBlog’s readers for being a part of our biggest week ever

    We’ve been doing very well since the start of the year, but this week just ending was the biggest ever in the history of BloodhoundBlog.

    Our file server crashed for over four hours this evening or we would have broken 14,000 hard clicks for the week. Our main readership comes to us by RSS and email subscriptions, but hard clicks are often the source of new subscribers. We had two days this week where BloodhoundBlog scored over 2,500 unique visitors, more than double what we were doing at the end of last year.

    What was the huge controversy that brought all this traffic? You guessed it: Conforming loan rates.

    This was a big week for us, too, because we were finally able to launch BloodhoundBlog Unchained. There are a million Realtors and a million lenders out there who need to find a way to blend their traditional marketing into the Web 2.0 world, and we’re grateful that we have the platform and the opportunity to teach what we know — even as we are learning everything we can.

    How did BloodhoundBlog get this big, this fast? We’ve never cared about traffic, and because of that we’ve never cowered or catered or kow-towed to anyone — and we never will. Speaking only for myself, I have never cared about being popular — very much the contrary! What I do care about is telling the truth — completely. That we are where we are is as much a testament to your integrity as it is to ours. For this I am very grateful.

    But hang on tight. We’re in for a hell of a ride — and we’re just getting started.

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    Unchained Pioneers: Podcast with Brad Coy and Andy Kaufman on how they hope to benefit by coming to BloodhoundBlog Unchained

    I had a great talk with Social Media Marketing pioneers Andy Kaufman and Brad Coy this afternoon. They were among the first folks to register for BloodhoundBlog Unchained. If you click on the podcast linked below, they’ll tell you in their own words the benefits they hope to bring home from their trip to Phoenix.

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    The Results: Cautiously REALLY optimistic…

    Our brokerage has been trying a NEW twist on a very old marketing method over the past several months. Integrated Voice Response is one thing. I have been doing that since before it was cool…(can you say Dialogic boards in the early 90’s?) and it has come and gone three times since then. I am NOT a fan of plain old vanilla call this # and punch in a code, although in some areas it can work. This new version was the old IVR on steroids and with some interesting twists.

    Mind you, that my control group for this experiment was someone simply putting a cell phone # on a rider on a sign. And we are now seeing SIGNIFICANTLY better results than the control group with our method.

    Here’s what we have done and where I think the distinctions are… Before we begin…no I am not posting brand names or anything of the sort. If you want to know, drop me a line. I will be glad to share. But I am NOT in the ad copy writing business for any firms. This is simply reporting results on a marketing CONCEPT.

    #1) Instead of “codes” our system uses the street addresses to access the data – This seems to provide a significantly higher call rate.

    #2) Our system pulls its data DIRECTLY from the MLS / IDX data downloaded every night. This has a HUGE advantage in that the use rate by agents in our office is MUCH higher -since all they have to do is put the sign out to get exposure.

    #3) Our system puts english and spanish options up together without agents having to record a thing. We have 120 some odd agents…only 4 or 5 habla espanol…I imagine this is even more important in other parts of the country than Louisville, but it is important HERE as well. Reports back from our native spanish speakers really liked the quality…(was a concern for us)

    #4) We tried riders on signs, but have found that a separate signs work better. (Note: I will edit this post in a bit with an Read more

    We’re finally ready to start selling BloodhoundBlog Unchained tickets — and you can get yours at the special Guerrilla price

    We finally sorted out the details on the venue for BloodhoundBlog Unchained. We’re going to be at The Heard Museum Event Center in Downtown Phoenix on May 18-20th, 2008. Note the slight date change; that was a wrinkle in our negotiations.

    The facility itself is beyond cool — a vast Phoenix mansion converted to a world-renowned museum of Native American culture and history — along with a spacious conference center and break-out rooms. Docent-guided tours of the museum will be available after conference hours.

    But the big news today is that we’re finally able to start selling tickets for the event. And to reward the true Guerrillas who have hung in here with us through three months of arm-wrestling, we’re offering the full package — a $350 value — for $149.

    That’s a limited-time offer, needless to say. We have limited seating, so we want to make sure the grunts on the ground get first crack at availability. By the time the corporate weenies pull out their gold cards, the price of admission will be quite a bit higher.

    So: Get busy. Everything Unchained will be happening at the BloodhoundBlog Unchained weblog. If you go there now, you can click on the PayPal button to make sure that there will be a seat for you at BloodhoundBlog Unchained.

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    Choosing second-best could get you the best possible home

    This is my column for this week from the Arizona Republic (permanent link):

     
    Choosing second-best could get you the best possible home

    Last week we talked about how, even with so many unsold properties, multiple buyers can somehow land simultaneously on the one property on the market that approaches perfection.

    This is perfectly natural human behavior, if you think about it. Who hasn’t thumped a melon? Who hasn’t reached into the back of the cooler for the fresher milk? Who buys the brown ground beef when there’s redder meat available. We were not just born to shop, we will perish if we don’t learn to shop wisely and well.

    It’s no different for houses. You have a certain amount of money available, and a certain selection available to you for that money. It’s completely natural that you would shop until you find the home that is far and away better than your other choices.

    And it’s perfectly natural that other buyers would come to the same evaluation of the available inventory. They wold have bought the same melon as you, except you got there first.

    But there’s still an important difference. A good melon is as good as it’s going to get, and a bad melon cannot get better. But a house can almost always be improved.

    Here’s a melon-improvement strategy for financially-savvy home shoppers.

    That home you fell in love with is almost certainly a production home — a tract home. Yes, it’s in great shape, and it’s staged to perfection. But guess what? There are three more almost exactly like it for sale on the same street. They’re not as clean, not as nicely-decorated, not as well-marketed — but that works to your advantage.

    The difference between your dream home and what looks to you like a bad melon is really just a matter of money. If you put that money into the bad melon, it will be as good or better than your dream home.

    So, rather than competing for the best house and paying top dollar, you can use it as leverage to get a lower price and seller concessions on a home that could be even Read more

    For Greg – My Take On Politics and Real Estate

    The fascination I have for politics is perverse, akin to the irresistible urge some have to watch Jerry Springer or to view the gory details of a hatchet murder. I’m serious about politics but cynicism has kinked my perception of candidates clawing and spinning their way to the top. We all are at fault for making the presidential race a spectator sport, and we are all at fault for allowing our government to become a feeding trough for special interests.

    Republicans or Democrats, it seems to make little difference nowadays which pork-maker you choose, except in how it affects our special interests. Gone, it also seems, are the days people chose a president to lead our nation and protect our constitution, to secure our borders, to ensure adequate policing for the safety of citizens and to ensure rational judgment in courts of law. Now we choose according to special interests and how any certain gang in office will legislate to empower our special interest. We’ve become a balkanized nation and government has become the big daddy provider lording over the factions, pulling strings to create a power base. The candidate who can manipulate the most factions wins.

     I have to believe that the loud voices of extremism that have taken over politics  (because fanatics are more active than moderate, more sensible folk) have drowned out voices that are tired of speaking. That’s my take.

    However, I think the game still has to be played, because the results of apathy are too serious to ignore. I’m a free-marketer, someone who believes in a limited government bound by the Constitution. I think a government unharnessed has the natural tendency to grab more and more power until it controls everything – that’s the nature of the beast and history has shown this over and over.

    What does this have to do with real estate? Well, forget about current campaign issues for a minute and consider the bigger picture of a growing nation that’s evolving in the private sector from centralization to de-centralization – there is a movement from large metropolitan areas, a spreading out that technology has Read more

    The Odysseus Medal: Our own style of disintermediation brings us all closer to the liberty that is self-reliance

    I’m not going to award an Odysseus Medal this week. The Short List candidates were very good, but nothing killed me, and I want for this award to celebrate work that is beyond excellent. But: I do want to cite two Honorable Mentions, two posts that I thought were very good, and which took us in directions we will need to travel as we come more and more to be our own sources of arcane information.

    It’s funny actually: Our relationship as webloggers to the mainstream media is very much like our clients’ relationship to us. They want to take on more of the work that was once exclusively ours, just as we seek to take on more of the work that was once hidden behind the walls of print and broadcast outlets.

    The two posts I am citing, The Proposed Solutions Are Going To Be Worse Than The Mortgage Crisis by Doug Quance and Barack Obama’s Mortgage Reform Policy by Morgan Brown, illustrate the kind of depth of understanding we can achieve when we apply ourselves. By now it seems likely that our presidential nominees have been chosen, and I look forward to this kind of thoughtful analysis of the real estate and economic implications of the candidates’ proposals.

    Black Pearls we have, though, and more than just a few. Choosing one was a problem. The Black Pearl Award this week goes to Jim Cronin for Blogging Etiquette – The Blog Comment Policy – Do You Need One?:

    Blogs are meant to be a two-way street.  We are blogging for an audience.  Engaging that audience to participate is a huge part of the the motivation and an element that can define a blog’s success.

    So where do you draw the line?

    What do you consider acceptable behavior by the audience, on your real estate blog?

    For a lot of real estate bloggers, their blog is an extension of their business.  This means that their reputation, credibility, personality, works, message and even their career are potentially on the line with every article published.

    What are you doing to protect the above?

    The following are a number of items that range from mildly Read more

    Stash that cod-piece: I’m not waxed fruit and you are not a rock star

    I should probably stop picking on this little nebbish, but he’s such a champion at leading with his chin that I find him hard to resist. His theme? “Rewriting the book on how to kick ass.” I wish I were joking. I’m gonna guess that he wasn’t among the first picked on the ass-kicking team in grammar school, and I’ll bet a large dollar he wasn’t even in huge demand for the coloring-outside-the-lines squad. I just love it, though, that he’s so completely dysclued that his ass-kicking theme song is entitled — wait for it — Unchained. And before you trouble yourselves trying to imagine Kevin Boer and Noah Rosenblatt in day-glo-hued spandex tights with huge cod-pieces — these two being Davison’s envisioned rock stars of real estate — stop for a moment to consider that we are talking about marketing in the world of Web 2.0. Rock stars are all about “Me, ME, MEEEE!!!!” This role belongs to the customer, not the vendor — this according to this same mental midget a few weeks ago. Brian Brady and I are rewriting the book on real estate marketing, an iterative endeavor that will see its next big advance at the real Unchained. But if you want to find a Web 2.0 star, it’s not me or Brian or Kevin or Noah. If I were to pick one person who best expresses what consumers are looking for in a Realtor or a lender, I would pick Dan Melson. There’s is nothing of a rock star in the man, but if “fiduciary” had a face, it would be his — and that comes through in everything he does.

    I, very much on the other hand, command attention. The words I, me and mine are sweet on my tongue, and I have to admonish again and again that what I am teaching and what I am doing are two different things. One of the persistent delights of my life is how well Teri Lussier understands this, and how much she is able to pull out of the things I say. Dilberts like Davison live a Read more

    The Odysseus Medal competition — Voting for the People’s Choice Award is open

    Late again. Sorry. I’ve had my Mac back since around Noon. Logic board this time, again no charge. In terms of replacement cost, I’ve got about 60% of a new computer for free. The back side is that I’ve never had to live with component failure — nor with the fear of data loss. Until Sunday, I had never backed up a Macintosh in my life. Today I made plans to buy a TimeCapsule.

    Anyway, there are 12 entries on the short list this week, out of a long list of 78 posts.

    Vote for the People’s Choice Award here. You can use the voting interface to see each nominated post, so comparison is easy.

    Ahem: Please don’t spam all your friends to come and vote for you. First, what we’re interested in is what is popular among people who would have been voting anyway. And second, I’ll eliminate you for cheating. Don’t say you weren’t warned.

    Voting runs through to 9 pm MST Wednesday this week. I’ll announce the winners of this week’s awards soon thereafter.

    Here is this week’s short-list of Odysseus Medal nominees:

    < ?PHP $AltEntries = array ( "Alex Mather -- Improving Zillow's Neighborhood Gift Improving Zillow’s Neighborhood Gift”,
    “Bonnie Erickson — MGIC Runs the Gauntlet
    MGIC Runs the Gauntlet“,
    “Carson Coots — How Local Should You Go? How Local Should You Go?“,
    “Doug Quance — Proposed Solutions Worse The Proposed Solutions Are Going To Be Worse Than The Mortgage Crisis“,
    “Jay Thompson — NAR and Social Media Why the NAR Needs a \”Social Media Director\”“,
    “Jim Cronin — Blogging Etiquette Blogging Etiquette – The Blog Comment Policy – Do You Need One?“,
    “Jim Cronin — Worrying About SEO Why Worrying About SEO Is Detrimental to Your Real Estate Blog“,
    “Kris Berg — I’m too sexy for my blog. I’m too sexy for my blog.“,
    “Michael Creel — The Perils of Being a Realtor The Perils of Being a Realtor“,
    “Mike Farmer — Fundamental Solutions Folk Music, Blame and Fundamental Solutions“,
    “Morgan Brown — Barack Obama’s Mortgage Reform Policy Barack Obama’s Mortgage Reform Policy“,
    “Paul Chaney — Becoming a social media leper Becoming a social media leper… many marketers are missing the whole point!“,
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