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Category: Real Estate (page 66 of 266)

October 15, 2009

Dead Mac Society: Cupertino, we have a problem…

by

Suburban Phoenix Real Estate Broker

Author website

I have a Macintosh IIfx that is old enough to vote and yet still runs perfectly. But just a little while ago, we lost the hard disk in Cathy’s iMac, and this morning my own precious piece of Iridium woke up by not waking up.

I saw some screen noise in my noodling about, so I’m hoping it’s a circuitry issue. That would almost certainly mean that the machine itself is slag, but, as long as the hard disk has survived, all is not lost.

But still… Macs don’t fail. And two Macs don’t fail this close to each other in time.

After Cathy’s machine went south, we added a 2 terrabyte backup server — even though I have never backed up a Macintosh in my life.

Not the end of the world, but this is going to bite a big — and expensive — hole in my day.

October 14, 2009

Estimate to extend the Home Buyer Tax credit? 16.7 Billion What a Bargain!

by

Realtor, Newlywed

Author website

I was passed along an article today from the WSJ discussing the cost to extend the $8,000 tax credit and to open it to all people purchasing a home would cost $16.7 Billion according to congressional analysts.

The article goes on to state that this is less than expected and could help generate momentum to continue the credit and extend it until June 30th 2010. Wow! That’s only $78,773,585 dollar a day (give or take a million) for the 212 days the extension would be in place.  Additionally this would extend the offer to anyone who wants to buy a home even if it is not their first home. Income limits would be raised to $150,000 for an individual and $300,000 for couples. The senators who are behind this are hoping to attach this to a bill for extending unemployment benefits.

I’m confused here. How on earth can we have a bill in place to extend both unemployment benefits AND a tax credit for anyone to buy a home?

I will admit that I was excited when Washington State was trying to work out a plan to loan the $8,000 tax credit to be used as a down payment. I rushed out and registered a domain name and had visions of more business than I could possibly handle. What happened though really has changed the way I look at the tax credit. First Washington State was not able to find a way to lend the money for use as a down payment.  Second the people that found my site on the tax credit advance were not qualified to buy with or without a tax credit. AND they were upset that it was only $8,000 and had to be repaid. Not a single person I spoke with was in a position to buy a house. Every person was looking for a hand out not a hand up.

Since this awakening I have been slowly building more and more momentum to suggest to my fellow Realtors that the $8,000 tax credit should be allowed to end at midnight November 30th 2009. Any extension is so expensive that Read more

October 14, 2009

Some Updates from the Marble Tower

by

CEO, PA Association of Realtors

Author website

Here are a few pieces of kibble from NAR that I thought the Pound might want to chew on…

 

Pent-up Demand Seen in Purchase-Ready Renters

There are more than 16 million renter households in the U.S. with enough income to buy a home at the national median price, far more than in 2000, before the housing boom, says NAR Chief Economist Lawrence Yun. This large number of renters with the financial wherewithal to buy is one indication of the pent-up demand in the housing market that can be tapped if Congress extends the home buyer tax credit. It’s also an indication that the tax credit won’t just be attracting households that would buy anyway. Hear Yun’s remarks on market conditions and the tax credit in an audio podcast.

 

New FHA Condo Process Could Face More Delay
HUD is looking at delays to its new FHA condo approval process. Changes outlined in Mortgagee Letter 2009-19 slated to take effect for case numbers assigned on or after Oct. 1 have been delayed to apply to case numbers assigned on or after Nov. 2, and that start date could be pushed back as well. Other condo rules, including permission for lenders to offer spot loans, remain in effect. NAR continues to press for changes to federal policy to make FHA financing more viable for condos. Among other things, NAR wants a reduction in the owner-occupancy requirement and an increase in or outright elimination of the concentration limit.

 

2008 HMDA Data: FHA Credit Quality Remains High
FHA’s market share of home loan originations expanded to 30 percent while the credit quality of its loans improved, latest federal mortgage data gathered under the Home Mortgage Disclosure Act (HMDA) finds. In 2008, FHA’s FICO scores increased significantly while loan-to-value (LTV) ratios decreased. More than 60 percent of FHA’s increased purchase volume was to borrowers with prime quality FICO scores (above 660), while FHA insured mortgages with LTVs above 95 percent fell from 72 percent  to 67 percent.

October 14, 2009

The passive path to active real estate investment marketing

by

Suburban Phoenix Real Estate Broker

Author website

I was talking with Jeff Brown on the phone yesterday about how much we depend on passive marketing devices — our Phoenix real estate weblog mainly — to generate new business.

We don’t even do all that much. By now there are much better resources to turn to than me for advice on how to do real estate weblogging. But what we do is consequential, because we are constantly adding to our inventory of hard-headed real estate information.

As an example, I wrote a post this morning on the factors that contribute most to the profitability of Phoenix-area rental home investments. That post in turn supports a basic guide I have prepared on rental home investing in suburban Phoenix.

What am I up to? I’m pre-conditioning future clients, for one thing. I’m sharing a lot of hard-headed information, but I’m also letting them know what it’s going to be like to work with me. In addition, I’m splitting the herd, isolating the people I will want to work with and sending the others packing.

The weblog post will have a future in other locations. I can use the HTML to make a very compelling Craigslist ad. And, in the long run, that post will add to the content on our static real estate investments page.

Here’s the best news: The people I hear from who will have pursued all of this information will come to me pre-sold. I won’t have to cover as much of the basics with them on the phone. They will not have picked up the phone to call me until they had already committed to hearing more of what I have to say. They won’t be slam-dunk conversions, necessarily — investors never are — but their business will be mind to get — or to lose — with no significant competition.

I am not diminishing more active prospecting strategies — much the contrary — but this is the kind of thing that I can set up once that will pay me over and over again. And as others here have noted, the climate for rental home investors in Phoenix just keeps getting better Read more

October 14, 2009

Bucking up is not the answer, and even if it were, it isn’t

by

Raleigh Criminal Lawyer

Author website

In my past life, I worked in public policy. This was a pretty much disheartening experience because, whether you’re on the left, right or center, you’ll be disappointed. It’s almost never the case that policymakers (read: politicians) want to make good policy. The policies they do enact are mishmashed compromises sweetened by special interest giveaways. That’s just the logic of politics.

One of the things you frequently hear is that the economy is all psychology. That if people would just be in a better mood, they’d spend more, and then we’d get the Good Ship America righted and back under sail. That’s not so.

More accurately, while there are psychological aspects to economic activity, simply telling people to buck up and get back out there is not a recipe for anything other than talking to yourself in the middle of the night.

You can’t will a country (or a world) out of a recession anymore than government can spend its way out of a recession. There is a psychology to a recession, but there is also a logic to a recession. And that logic is economic.

The problem with the recent bubble is that it was massive and massively inflated. Unlike the tech bubble of 2000-1, this bubble was wide-ranging, affecting not only the real estate market, but the equity markets as well. In addition, because an awful lot of real resources had shifted across the country into building homes and owning homes, this bubble was far wider in scope, affecting many tens of millions more people, than a tech bubble that was regionally isolated and industry specific.

So yes, people are psychologically depressed. But, you know, between 10 and 18 percent of people are unemployed, depending on how the government has cooked the books, so telling them to “buck up” is kind of missing the point. Even if people could “buck up,” we don’t want them to. Recent spending by both individuals and the government has been entirely debt financed. Getting people out there to spend again does them no good.

This bubble Read more

October 13, 2009

The (last) Amend

by

Chicago Broker Owner Realtor | RE 2.0 Blogger

Author website

The Notion

In my dream I’m always gasping for air; as if the trillion or so cubic inches of ozone I’ve already blown through in my lifetime somehow counts for nothing.  I awake, step over the dog, and scramble downstairs in my boxers in search of a physical remedy to a metaphysical dilemma. Something is bothering me and I can’t quite place my finger on it. Life is short and, on this crisp autumn eve, I’m clearly too underdressed to even be considering my last breath.  Our fifteen-year old cat follows close behind, his own mousy demons no doubt,  in tow as well.

‘Dear God, please don’t let me die with money in my portion of the Charles Schwab account,’ I think as I root through the herbal medicine cabinet,  next to the dishes, above the microwave.  ‘That’s what the Prudential life insurance policy in the house safe is for,’ I obsess. It’s an odd recurring thought, I realize. Just being forthcoming.

We keep no real drugs in our house.

Ginkgo Biloba, Paranil, Senna, Licorice Root. Green Tea, White Tea, Black Tea…where the fck is the Alka Seltzer?

Over the years I’ve developed an internal ON/OFF switch of sorts; a requirement for any man whose livelihood  simultaneously hinges on rejection yet somehow also depends on the act of a total stranger purchasing something of considerable value; house, condo, etc…. every month. It’s an Acceptance thing, I’ve learned. This emotional circuit breaker has, for a long time,  assisted me in affairs of the heart,  finance,  most of  the Deadly Sins—Fear, Greed, Anger, etc… not to mention social and personal guilt.  And in case you haven’t  been following the box scores at home this season,  I’ve been in the OFF mode for a while now.

thankyouverymuchhaveanicedaybiteme….next

Over time I’ve learned to appreciate  the next ‘Next‘  in life—I just haven’t learned not to  eat Mexican food before retiring for the evening or found a way to avoid the night scares that have startled me ever since that stupid monster began squatting in my childhood closet at 39 Vineyard Road in Levittown.  And as my Life flickers before me this particular night, Read more

October 12, 2009

Capture Appreciation and Cash Flow

by

Real Estate Investor

Author website

The advantage of investing in today’s market is the potential to capture appreciating assets that provide strong cash flow. These investments are the holy grail of real estate investing. In strong markets, these properties simply don’t exist, but in down markets, a smart investor can pick out these diamonds among the rough.

Consider the price declines in many areas of the US. Housing prices in the strongest metro areas like Los Angeles, New York, San Francisco, etc. have dropped in the double digits. But what have rents done over that same time period. Honestly, they have dropped as well, but not nearly as much. Rents did not experience the same run up in values as home prices because renting or owning is a zero sum game. As more renters decided to become owners, owners of rental units had to lower or at the very least not increase their rental rates. Rent growth slowed and owner-occupied values soared.

Now the pendulum is swinging the other way. Many buyers are returning back to the rental market by choice or by force. Rents are still experiencing some stress because of the increased inventory of rental units and shadow rental units (people renting their home or rooms because they cannot sell). Renters are moving back home with their families or doubling up. Despite these negative signs, rents should not be expected to decline at the pace or to the degree of the housing market.

This presents an interesting opportunity to buyers of small multifamily or single family homes as rentals. Areas that made no sense to buy for rentals now make sense again. Some areas in LA, San Diego, New York City, etc. should be re-examined. Buyers in these markets have a rare opportunity to buy cash flowing properties with the prospects of double digit appreciation. Even if that appreciation doesn’t come back for five to seven years, the buyer has the luxury to wait because of the cash flow coming off the properties.

The combination of low interest rates, level rents and Read more

October 10, 2009

The news media may insist that the real estate market has turned the corner, but my attitude toward work is simple: “Just say yes!”

by

Suburban Phoenix Real Estate Broker

Author website

This from my Arizona Republic real estate column (permanent link):

We represented the buyers for a million-dollar house, our first, that closed this week. A week from now, we will be listing a million-dollar home, also a first for us. We are carrying two listings at $450,000 right now, with another to come, and we will be listing another home at $800,000 shortly.

But also this week, I sold a property for $65,000. Just a few weeks ago, one of my listings sold for $27,000.

Am I schizophrenic? I hope not. But I am scared to death to say no to anyone right now.

Salespeople like to say yes. It’s not in our nature to turn people down. We like to make people happy if we can.

But I have no idea when this recession is going to end, so I don’t want to pass on any opportunity that might present itself.

Here’s the funny part: We’re living with a foxhole mentality, but 2009 is going to be our second-best year since we came into the real estate business. We’re not rich by any means, but we’re making more money than we have in the past three years.

But here’s the unfunny part: Virtually all of our income for 2009 is coming to us in the second half of the year. Our business was all-but-moribund in the first two quarters, and we came much too close to losing our own home.

So I am not proud, bashful or shy. If you have a real estate problem, I’m ready to talk about it. We’re working sixteen hours a day, at least, seven days a week. We haven’t taken time off in three years, and I don’t know when we will take our next vacation.

The job is survival right now, and I know we’re not alone among Realtors in thinking this way.

I’m nobody’s bear, and I would love to believe all the cheerleading I hear in the news about the real estate market. But my strategy for now is to just say yes to every opportunity I get to earn a living.

 
Spread the word: Click here for a printer-ready version of Read more

October 9, 2009

Flying beyond flyers, here is our first full-color brochure for our first million-dollar listing

by

Suburban Phoenix Real Estate Broker

Author website

A week from today, we will list our first million-dollar residence. (The web site is a placeholder as I write this. We’ll begin to populate it next week.)

But the home is a spectacular specimen, and we wanted to do something more to bring that out. So yesterday we put together our first full-color brochure for a home.

That’s the outside face. Full-size is 17×11″, with a fold in the middle to permit it to fit into our flyer boxes. You’ll have to imagine where the fold will split the image.

And here is the inside face. If you click on either image, you can see the full-size, full-bleed pre-press files. Fair warning: They’re 87 megabytes each.

Here’s the text from the inside front panel:

True luxury, true elegance is not a
vast accumulation of shiny trinkets,
a mass of dazzling distractions.
The artifacts of genuine wealth are
streamlined, refined, stripped down
to the essence. Simple. Unaffected.
The best expression of your limit-
less lifestyle is a home that serves
as the jewelry box for the precious
treasure that is your family…

And that’s why god made Lord & Taylor…

This is going to be a fun one for us, a chance to put every idea we’ve been playing with to the test.

October 8, 2009

A Bloodhound’s Proven System for Sniffing out Hotel Deals

by

Database Marketing Expert

Author website

Hi everyone!  I’ve been reading BHB religiously but have been a very naughty contributor.  This is still my favorite blog and it’s an honor to be a part of this community.

I recorded a 6 1/2 minute video detailing a fun little system I’ve been using to save thousands – yes, thousands – on my hotel costs.  I hope you find it worthy.  If not, flame away and I’ll stick to what I know best next time.

October 6, 2009

Want buyers to think you are better than sliced bread?

by

Realtor, Productivity Guru

Author website

Were ready for step two of the series on how to effectively use a tablet PC to run your day to day real estate tasks.  I’m including a screencast to actually give you some visualization on how I actually use my tablet PC for working with buyers in the field. Warning: Please turn down volume on screencast prior to starting.
Using a tablet PC when out in the field

The basic premise of what I do with buyers out in the field is extremely simple but very effective for organization, having a go-to information source, and being looked to at a whole new light in your clients eyes.

What I do when working with buyers using my tablet PC:

  • Fire up my MLS and find the homes that I will be showing to my buyer
  • Go to File Print and select the Print labeled “One Note 2007”
  • Once the spec sheet is in One Note I move it into a pre-created notebook for my specific client for organizational reasons
  • You can also print specific tax bills or anything relevant to that specific house you can think of that maybe handy and impressive to show in-front buyers.  The most relevant thing that I have added into my showings is the listing history/price change sheet.  (We all know they ask they questions almost every time no more fumbling, time to be the expert we really are!)
  • Next I go show the house and take notes on each property that we see so I can give relevant feedback to the listing agent.  Taking notes on every house is also a great way to remind buyers about the prior homes.

As you can see what I’m presenting here is really simple and should not intimidate anyone that is afraid of technology.  It’s as simple as Print/Move to a Notebook this is a good start of what we will be building in on future posts.
The real reason I’ve decided to take on this Tablet PC for Real Estate blog journey is to communicate with other people who share similiar interest’s and can share new ways of working with a tablet PC to become more efficient Read more

October 1, 2009

DocuSign may be the best friend Realtors have ever had

by

Suburban Phoenix Real Estate Broker

Author website

Okay, so all the Realtors know that short sales are like a jack-in-the-box: You crank and crank for weeks or months and nothing happens, then everything pops all at once.

Happened to me today, with the Sphinx-link bank suddenly lurching to life in order to issue two must-rush-now documents that reiterate terms my buyers have already agreed to.

That doesn’t matter. Must-rush-now! Must-have-today! Must return to hibernating state no later than 5 pm.

So Mom is at home and Dad’s at work — and both of them are 35 miles away from me.

We could trade faxes, but the originals are already barely readable.

But: No worries: We’ve got DocuSign on our side.

I set up the whole workflow: I sign, Mom signs, Dad signs — and then the whole package goes back to the lister, all untouched by human hands.

Note that I set everything up so that I could leave if I needed to, once I had signed, and the rest of the job would percolate through the ether on its own. I love this feature, since I no longer have to nurse documents.

But, as it works out, the whole job, Tinkers to Evers to Chance, was done in seven minutes flat.

I plan to write more about DocuSign when I have more time, but for now: If you don’t have DocuSign, get it. Your time is your money, and, in consequence, this is some of the best money you will ever spend.

And now the bank can roll over and go back to sleep…

 
P.S.: Just got confirmation that the lister has the documents. Twenty-two minutes total.

September 29, 2009

Do Today’s home prices reflect their market value?

by

Realtor, Media Mogul

Author website

Can you really look at a buyer today and tell them that they are buying their home at a good price?  Sure, you can tell them how the price they are paying compares to what folks have been paying the last few months, or few years.  But that doesn’t mean that what you are seeing is the true market price!  The actual market price can’t be determined without a free market.  Right now, we have anything but a free and stable market in real estate.

Take the government’s free ice cream housing promotion, also known as the Homebuyer Tax Credit.  The issue I’m concerned about isn’t that it is going to cost taxpayers about 15 billion dollars if it is allowed to expire on November 30.  Nor is the issue that it has cost $43,500 that we, our children and grandchildren will somehow have to pay for each new buyer attracted into the program according to the NAR numbers.  The issue is it has artificially increased the value of homes in the market by $8000 and that will end on November 30th, or sometime.

So, that $250,000 home your client just bought and put a mortgage on is really only worth $242,000 when that market distortion is removed.  With an FHA loan, and a program to use the tax credit for a down payment, guess who is already upside down in their purchase?  Does this sound anything like the too recent past?

Our tax code is already heavily skewed towards home ownership.  With our government’s current spending spree and their desire to raise taxes, could the sacred mortgage interest tax deduction eventually be reduced?

While that is probably not the immediate threat, the current rulers prefer government solutions to allowing the private market to function.  Be it FHA or State Housing Programs for low income borrowers, a monetary policy of rock bottom interest rates and the mortgage interest deduction the programs and the proposals coming forth further distort the market.

This makes the biggest risk in a real estate investment strategy or even a home purchase predicting the future changes in artificial supports to the market Read more

September 29, 2009

World Health Organization lowers the safe breathing radon gas level: further complicating Real Estate transactions

by

Realtor, Guerilla Technologist

Author website

New standards released by the World Health Organization (WHO) on September 23, 2009 have taken a huge stance on the odorless cancer causing, radon gas.  The World Health Organization has taken the already safe4.0 pCi/L and reduced the safe breathing gas level down to 2.7 pCi/!  Who cares, right?  Well, I care especially living the Midwest where we have basements.  Basements are a wonderful source for radon gas leaking into the home through cracks in the basement floor.

You’re writing an offer to purchase with a customer and it’s determined for the safety of the family you’ll go ahead with a radon gas test.  Typically radon gas tests start out at $125 up till about $175 in the Wisconsin market.  The home inspector you’ve hired happens to also tests for radon gas so he kills two birds with one stone.  The home inspector hands over his findings; the report states the average level of radon gas in the basement is 3.2pCi/L.  Perfect were all set to go!  Actually we are not.  The buying side of the transaction states the NEW industry standard is now 2.7pCi/L according to the World Health Organization!  The Selling side states, the World Health Organization does not over-ride the Environmental Protection Agency’s safe operating level of 4.0pCi/L.

The Realtor now has a problem that needs to solved between buyer and seller in order to get a commission.  Who is correct is this matter; buyer or seller?  Remember…RADON kills…right?

The National Association of REALTORS has advised the EPA standard is still operative or law. The World Health Organization’s suggested standard has no legal or regulatory status as a binding authority.

READERS!  IT’S IMPORTANT TO UNDERSTAND —> As industry professionals we need to draft accurate contracts without complicating our transactions.  Simple and Effective are the two words that immediately come to mind.  Remember to specify in your contracts what level of radon is acceptable before mitigation is required.   Just because we know the EPA standards legally apply, does not mean the buyer uses the EPA standard even though its law.

Below I plagiarized a statistical graph from the EPA.gov website.

EPA estimates
that radon
causes
thousands
of cancer
deaths in
the Read more
September 28, 2009

Investment Strategies: High Volatility Markets

by

Real Estate Investor

Author website

As I begin analyzing a variety of markets, I thought I would quickly share some tips for investment strategy consideration. In thinking about an investment strategy it is important to consider the volatility of the market you are investing in. For example, a market like Los Angeles might see double digit growth one year and negative growth the next, while a market like Chicago might see low single digit growth one year and simply lower growth the next.

When thinking about whether or not to get into a market early vs. late and when considering whether to get out early vs. late, it’s important to understand the market dynamics. Consider a market like Los Angeles. Over the past 20 years, this market has seen growth as high as 33% to as low as (25%) in one year. From 2001 to 2006, LA experienced double digit growth every year. Conversely, from 1991 to 1997, that same city experienced negative growth every year (data from Case Schiller Home Index).

In a market like this an investor is better off getting in early and getting out early. If you are a year early, you might experience one year of negative growth, but you would then be rewarded with rapid growth. Even if its not double digit growth, it will trend significantly higher than the national average. On the other hand, it also benefits those investors to get out early. Given the rapid change in markets, a double digit growth year could easily be followed up by a double digit negative growth year. Getting out early and moving to a safer market would typically be better than staying even one year too long.

Less volatile markets afford investors the opportunity to wait and see. Markets like Chicago experience much slower growth trends and decline at a much slower rate. In these markets it’s smarter to invest after the market has begun its rebound because the growth from year to year is rarely significantly different. Additionally, investors aren’t penalized by rapid negative swings Read more

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Inventing Real Estate 2.0

Welcome to BloodhoundBlog, the national real estate industry marketing and technology weblog written by, for and about real estate professionals. Better yet, welcome to the wired world of real estate. We are busily inventing Real Estate 2.0 – technology, marketing, service and salesmanship. Like all Bloodhounds, we are smart, frisky and fiercely independent. We've built a spot on the earth – beloved over all – where each one of us can be who we are, no matter who that might be. We are committed to an idea of excellence that will flush the bums, the con-men and the crybabies out of the real estate industry. If you yearn to have your failures excused, your moral lapses absolved or your boo-boos kissed, seek elsewhere. But if you are sick to death of mediocrity – welcome home. Read all about us, subscribe to our feed and steel yourself for the hunt. We work hard, we play hard, we learn everything we can – and we bow to no one.

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