I just finished a blog on rude employees or owners at mini-markets. As I was proofreading my post, I found that I made this misspelling....
....Starbucks is a great model of how a service/retain (funny, that was a missprint of retail, but how true!) business should operate. A person always has the certainty that they will have an uplifting experience there...
Maybe I just started a new term, because a business person should "give people excellent service to retain their business. "
Enough said.
Sunday, June 21, 2009
Friday, June 19, 2009
Where is bottom of the housing market?
Here is market data that seems the most accurate so far, today in the Investors Business daily, they wrote about when will the bottom of the market hit. Though the U.S. is expected to pull out of the recession in the third quarter of 2009, the housing recovery is expected to be longer than that.
“Market bulls believe home prices could bottom in the second half of 2010, but the bears warn it could be 2013 before they finally trough. And once prices do reach a low, it could be years before they significantly rebound.”
Though some of the homes on the market are barely getting a showing or sitting desolate for days, we are seeing in Grover Beach, homes below $400,000, Pismo Beach below $500,000 and Arroyo Grande below $500,000 selling quickly and some in just a few days. The homes that are priced right and are a good value to the consumer, sell quickly.
IBD goes on to say that much of the recent sales increase is related to distressed homes, as a stampede of homebuyers snap up properties in foreclosure or through short sales on the cheap. "Foreclosure sales have picked up pretty dramatically in the past four months," says Alex Barron, a senior research analyst at Agency Trading Group Inc.
Banks are the aggressors of the market and are setting the prices right now. Unfortunately at the same time they are lowering the comparable properties. The banks businesslike approach to prices does not sit well with Mr. and Mrs. American Homeowner expects a drop in value, but are not ready for the aggressive price slashing that banks do.
“About 50% of current sales involve distressed properties, and he expects this trend to continue as foreclosures soar in the months ahead. About 2 million properties were in foreclosure in 2008, and he expects this number to climb to 2.5 million this year.”
The IBD goes on to state that the pending flood of foreclosures could mean buying opportunities for bargain hunters -- as long as they're prepared to hang onto the house for a number of years. "If you're a renter who just missed this cycle and didn't get in, right now is a great time to buy if your issue is the monthly mortgage payment," says Burns
The California Association of Realtors are highlighting that sales are up, but they do not show that prices are down. I think that this type of statement hinders their validity, because the consumer may now see their news as fluff.
“While sales may be increasing, home prices are a different story, in part because of rising interest rates and surging unemployment. The average rate on a 30-year fixed rate mortgage climbed to 5.59% last week -- its highest since Dec. 11 -- but retreated slightly to 5.38% this week, according to Freddie Mac. The nation's unemployment rate spiked to its loftiest level in more than a quarter of a century in May at 9.4%. Burns is predicting the jobless rate will hit 12% by 2011.”
“Expect to see prices start to rebound in 2011. While a bottom may be reached within the next year, it will be many months, and possibly years, before prices significantly come back.”
Once prices stabilize, it may take some time before there is a recovery in home prices.
Reference – Investors Business Daily
“Market bulls believe home prices could bottom in the second half of 2010, but the bears warn it could be 2013 before they finally trough. And once prices do reach a low, it could be years before they significantly rebound.”
Though some of the homes on the market are barely getting a showing or sitting desolate for days, we are seeing in Grover Beach, homes below $400,000, Pismo Beach below $500,000 and Arroyo Grande below $500,000 selling quickly and some in just a few days. The homes that are priced right and are a good value to the consumer, sell quickly.
IBD goes on to say that much of the recent sales increase is related to distressed homes, as a stampede of homebuyers snap up properties in foreclosure or through short sales on the cheap. "Foreclosure sales have picked up pretty dramatically in the past four months," says Alex Barron, a senior research analyst at Agency Trading Group Inc.
Banks are the aggressors of the market and are setting the prices right now. Unfortunately at the same time they are lowering the comparable properties. The banks businesslike approach to prices does not sit well with Mr. and Mrs. American Homeowner expects a drop in value, but are not ready for the aggressive price slashing that banks do.
“About 50% of current sales involve distressed properties, and he expects this trend to continue as foreclosures soar in the months ahead. About 2 million properties were in foreclosure in 2008, and he expects this number to climb to 2.5 million this year.”
The IBD goes on to state that the pending flood of foreclosures could mean buying opportunities for bargain hunters -- as long as they're prepared to hang onto the house for a number of years. "If you're a renter who just missed this cycle and didn't get in, right now is a great time to buy if your issue is the monthly mortgage payment," says Burns
The California Association of Realtors are highlighting that sales are up, but they do not show that prices are down. I think that this type of statement hinders their validity, because the consumer may now see their news as fluff.
“While sales may be increasing, home prices are a different story, in part because of rising interest rates and surging unemployment. The average rate on a 30-year fixed rate mortgage climbed to 5.59% last week -- its highest since Dec. 11 -- but retreated slightly to 5.38% this week, according to Freddie Mac. The nation's unemployment rate spiked to its loftiest level in more than a quarter of a century in May at 9.4%. Burns is predicting the jobless rate will hit 12% by 2011.”
“Expect to see prices start to rebound in 2011. While a bottom may be reached within the next year, it will be many months, and possibly years, before prices significantly come back.”
Once prices stabilize, it may take some time before there is a recovery in home prices.
Reference – Investors Business Daily
Thursday, June 18, 2009
C.A.R. April Market Update Video
I just watched this video and though I am a huge proponent of C.A.R. and the information that they provide, I think that one part of the data can be misleading. When they talk about a huge rise in the transactions, that doesn't necessarily mean that home prices are rising, it means that there are buyers interested in purchasing homes at the selected price.
The consumers that I talk to relate the activity to increased home prices. Though a good sign of recovery, as of yet, this is not the case.
The consumers that I talk to relate the activity to increased home prices. Though a good sign of recovery, as of yet, this is not the case.
Friday, August 22, 2008
Short Sale Revisited
As I was looking for some comparable sales for a property that my client wants to purchase, I found one short sale was listed in Grover Beach for $460,000 and sold for $360,000, and closed escrow within 60 days.
I know that the listing price was correct, because i did the BPO (Broker's Price Opinion) for the bank.
A Broker's Price Opinion is when a homeowner is late on their paymants, the bank hires a Realtor to give them an estimate of value, so that they know how screwed they will be when they foreclose.
I'm going to go out on a limb and say that the success of your short sale, depends on the quality and knowledgeability of the listing agent who is selling the home and negotiating with the bank.
But you still need thick skin, patience and the knowledge that after two months of negotiating or being in escrow, that the home will never close.
I know that the listing price was correct, because i did the BPO (Broker's Price Opinion) for the bank.
A Broker's Price Opinion is when a homeowner is late on their paymants, the bank hires a Realtor to give them an estimate of value, so that they know how screwed they will be when they foreclose.
I'm going to go out on a limb and say that the success of your short sale, depends on the quality and knowledgeability of the listing agent who is selling the home and negotiating with the bank.
But you still need thick skin, patience and the knowledge that after two months of negotiating or being in escrow, that the home will never close.
Monday, July 28, 2008
Short Sale Comment
Just heard a funny saying....
"Why take the lion a piece of meat if he is going to bite your hand off?"
That was in reference to working on a short sale. Realtors do all of this work to bring an option to the bank to unload the loan, but the banks aren't willing to cooperate at a capacity that is required.
I perceive bringing a seller an offer on a short sale is like the lottery. You do the work, get it the offer accepted, then when it is time for the bank to accept it and it is out of my hands, there is a 1 in a million chance of them of to either: respond, accept, or acknowledge the offer.
"Why take the lion a piece of meat if he is going to bite your hand off?"
That was in reference to working on a short sale. Realtors do all of this work to bring an option to the bank to unload the loan, but the banks aren't willing to cooperate at a capacity that is required.
I perceive bringing a seller an offer on a short sale is like the lottery. You do the work, get it the offer accepted, then when it is time for the bank to accept it and it is out of my hands, there is a 1 in a million chance of them of to either: respond, accept, or acknowledge the offer.
Sunday, July 27, 2008
Mortgage Relief
The U.S. is bailing out the people who can’t afford their mortgages and banks. It’s funny as I write this, I just remembered that as I was watching the congressional hearing on the credit crisis. Someone spoke of the “government bailout.” Then whoever he was talking to said, “who is the government?” Then there was a long pause, and then the response was “The taxpayers.”
Most people, I know I did until a minute ago, when they hear that the government is doing this and that, like going to war, they think of the U.S. as a total different entity then them. But it’s really us. I am at war, I enforced the cell phone law, etc...
We should think of ourselves as a partner in our government and nation.
Ok, so I got way off topic.
Another thing interesting at the congressional hearing is that all of these people are coming out now that the economy is bad and asking how this could happen. My question is where were they when the market was hot? Everybody was enjoying their wealth and a prosperous economy. I can admit that I was one of them.
In my generation, since I have been out of college, we have experienced the tech boom and fall, the housing boom and fall, now the oil boom for some which coincides with a fall in the economy from way too high gas prices.
I remember a highly intelligent person who made a fortune in housing tell me that it is inevitable and cyclical that the bubble would burst in the housing market. It was hard to believe then because the market was so hot. But moving on now, I say that as individuals it is silly to not to have a “stop loss” like we do when we own a stock. Not get greedy, but have incremental growth with a safety net.
Back to the mortgage relief, it’s too soon to know how this will help, but we will be following it along the way. But I am not sure if it will help the people who are in trouble now, because with anything that the government does, it is not a quick fix. It takes time to incorporate..
From USA today….
We're not getting enough for our money," says John Vogel, an adjunct professor at Tuck School of Business at Dartmouth. "Sure, some number of families — 100,000 or 200,000 — will be helped, and that's not insignificant. But it will not address the problem as fully as we have liked."
Vogel notes that those in danger of foreclosure won't benefit unless their lender agrees to reduce the balance on their mortgage; for the lenders, it's purely voluntary.
The bill pledges $300 billion in federally insured mortgages to help an estimated 400,000 homeowners avoid foreclosure by refinancing into lower-cost mortgages insured by the Federal Housing Administration. People can benefit if their lenders agree to reduce their mortgage principal. The borrowers must meet certain income caps and share any profit with the government on a sale of the home.
This is interesting for first time home buyers….
First-time buyers are already able to take advantage of low housing prices. Now, if they qualify, they can also receive a tax benefit of $7,500 or 10% of the home's purchase price, whichever is less. (The income caps for the full benefit are adjusted gross income of $75,000 for single people and $150,000 for couples who file taxes jointly.)
Congress approved mortgage relief for 400,000 struggling homeowners Saturday as part of an election-year housing plan that also aims to calm jittery financial markets and bolster the sagging economy. President Bush said he would sign it promptly, despite reservations.
….lets homeowners who cannot afford their payments refinance into more affordable government-backed loans rather than losing their homes.
Bush had withdrawn his veto threat earlier in the week over $3.9 billion in neighborhood grants. He contended the money would benefit lenders who helped cause the mortgage meltdown, encouraging them to foreclose rather than work with borrowers.
Because of the Democratic Congress' delays and the need for action now, President Bush will sign this bill when he receives it, despite our concerns with some provisions, including nearly $4 billion to help lenders, not the homeowners this legislation is intended to serve," said Tony Fratto, deputy White House press secretary.
Still, Republicans weren't eager to celebrate. Bush was not expected to hold a White House signing ceremony, and Senate GOP leaders didn't mention it at a news conference following the vote. In the House, more than three-quarters of Republicans voted against the bill.
It aims to spare an estimated 400,000 debt-strapped homeowners, many of whom owe more than their houses are worth, from foreclosure by allowing them to get more affordable mortgages backed by the Federal Housing Administration.
The FHA could insure $300 billion in such mortgages, which would be available to homeowners who showed they could afford a new loan. Banks would first have to agree to take a large loss on the existing loans in exchange for avoiding an often-costly foreclosure.
Conservative Republicans were vehemently opposed to the bill, particularly the help for Fannie Mae and Freddie Mac. Critics charge the companies enjoy lavish profits in good times and wield their outsized political clout to resist regulation while depending on the government to bail them out should they falter.
You can find the complete article here and here
Most people, I know I did until a minute ago, when they hear that the government is doing this and that, like going to war, they think of the U.S. as a total different entity then them. But it’s really us. I am at war, I enforced the cell phone law, etc...
We should think of ourselves as a partner in our government and nation.
Ok, so I got way off topic.
Another thing interesting at the congressional hearing is that all of these people are coming out now that the economy is bad and asking how this could happen. My question is where were they when the market was hot? Everybody was enjoying their wealth and a prosperous economy. I can admit that I was one of them.
In my generation, since I have been out of college, we have experienced the tech boom and fall, the housing boom and fall, now the oil boom for some which coincides with a fall in the economy from way too high gas prices.
I remember a highly intelligent person who made a fortune in housing tell me that it is inevitable and cyclical that the bubble would burst in the housing market. It was hard to believe then because the market was so hot. But moving on now, I say that as individuals it is silly to not to have a “stop loss” like we do when we own a stock. Not get greedy, but have incremental growth with a safety net.
Back to the mortgage relief, it’s too soon to know how this will help, but we will be following it along the way. But I am not sure if it will help the people who are in trouble now, because with anything that the government does, it is not a quick fix. It takes time to incorporate..
From USA today….
We're not getting enough for our money," says John Vogel, an adjunct professor at Tuck School of Business at Dartmouth. "Sure, some number of families — 100,000 or 200,000 — will be helped, and that's not insignificant. But it will not address the problem as fully as we have liked."
Vogel notes that those in danger of foreclosure won't benefit unless their lender agrees to reduce the balance on their mortgage; for the lenders, it's purely voluntary.
The bill pledges $300 billion in federally insured mortgages to help an estimated 400,000 homeowners avoid foreclosure by refinancing into lower-cost mortgages insured by the Federal Housing Administration. People can benefit if their lenders agree to reduce their mortgage principal. The borrowers must meet certain income caps and share any profit with the government on a sale of the home.
This is interesting for first time home buyers….
First-time buyers are already able to take advantage of low housing prices. Now, if they qualify, they can also receive a tax benefit of $7,500 or 10% of the home's purchase price, whichever is less. (The income caps for the full benefit are adjusted gross income of $75,000 for single people and $150,000 for couples who file taxes jointly.)
Congress approved mortgage relief for 400,000 struggling homeowners Saturday as part of an election-year housing plan that also aims to calm jittery financial markets and bolster the sagging economy. President Bush said he would sign it promptly, despite reservations.
….lets homeowners who cannot afford their payments refinance into more affordable government-backed loans rather than losing their homes.
Bush had withdrawn his veto threat earlier in the week over $3.9 billion in neighborhood grants. He contended the money would benefit lenders who helped cause the mortgage meltdown, encouraging them to foreclose rather than work with borrowers.
Because of the Democratic Congress' delays and the need for action now, President Bush will sign this bill when he receives it, despite our concerns with some provisions, including nearly $4 billion to help lenders, not the homeowners this legislation is intended to serve," said Tony Fratto, deputy White House press secretary.
Still, Republicans weren't eager to celebrate. Bush was not expected to hold a White House signing ceremony, and Senate GOP leaders didn't mention it at a news conference following the vote. In the House, more than three-quarters of Republicans voted against the bill.
It aims to spare an estimated 400,000 debt-strapped homeowners, many of whom owe more than their houses are worth, from foreclosure by allowing them to get more affordable mortgages backed by the Federal Housing Administration.
The FHA could insure $300 billion in such mortgages, which would be available to homeowners who showed they could afford a new loan. Banks would first have to agree to take a large loss on the existing loans in exchange for avoiding an often-costly foreclosure.
Conservative Republicans were vehemently opposed to the bill, particularly the help for Fannie Mae and Freddie Mac. Critics charge the companies enjoy lavish profits in good times and wield their outsized political clout to resist regulation while depending on the government to bail them out should they falter.
You can find the complete article here and here
Tuesday, July 22, 2008
Termite Reports
Key Termite from Atascadero, 805-466-2451 came to our office meeting today to talk about providing thorough reports. They are a great company as Western Exterminators are too.
A lot of companies overlook termite and water damage, but these guys go through properties with a fine tooth comb. That is good for both the buyer and the seller.
We live near the ocean, so termites are going to cause damage to our homes and it needs to be fixed before lenders will give the buyers money to purchase it.
The best thing agents can do is get a termite report when taking a listing so there are no surprises in escrow.
A lot of companies overlook termite and water damage, but these guys go through properties with a fine tooth comb. That is good for both the buyer and the seller.
We live near the ocean, so termites are going to cause damage to our homes and it needs to be fixed before lenders will give the buyers money to purchase it.
The best thing agents can do is get a termite report when taking a listing so there are no surprises in escrow.
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