How often do we get the opportunity to get something for nothing…? It’s not a rhetorical question, most of us would agree not very often if at all.  However, I have had the pleasure of assisting many buyers in the recent week’s past and these wonderful clients have hit the lottery, figuratively speaking anyways.  I have seen them purchase a lot of house for next to nothing!   Now I know this shouldn’t be new news to anyone, unless you have forgot the golden rule of media… “Always read between the lines”.  Lately we have been bombarded with words of recession,   bubbles bursting, jobs plummeting, cycles at stand, but as most great investors will tell you, buy a stock at a low price.  Real estate is the same.  If you have the means, the credit and the opportunity, my opinion is BUY!  Rates are good, prices are low and the cycle IS NOT at a stand still!  It will move back around and make its way to the top again! 

OPEN HOUSES

the following houses will be held open with refreshments served:

Sunday, April 27, 2008

2-4pm

23890 Thompson Road, Howard

$273,750

Woodview, Fredericktown

$200,000

7171 Billman Road, Gambier

$149,900

114 Pennsylvania Avenue, Mount Vernon

$123,750

250 Parrott Street, Mount Vernon

$115,000

Technology is a great tool that has transformed how business is done in the real estate industry, but does it replace agency? In fact statistically speaking, 80% of people “In the Market” shop around before ever contacting an agent.  The internet offers a wide range of real estate search engines,  agent and brokerage websites,  foreclosure property information,   past sales and tax info ,and that’s  just to name a few.  People are being bombarded with information and spilling in from all media sources available; radio talk shows, television home and house flipping shows, newspapers, and magazines.  Everywhere you turn there is information.  Many times people are led to believe that they should just leave a real estate agent out of it, that they themselves have obtained enough knowledge to close the deal.  Nevertheless there is one thing that as a consumer should never forget;   a real estate agent is someone that keeps themselves “In-the-Know” of all the up to date rules, regulations, inspections, home warranties, interest rates and so on.  Finding the perfect place is just a small portion of the puzzle, agents are there to protect the consumer and put their clients’ needs first!   

The best part of all of this is buyers DO NOT pay the agent that works for them, the seller does.  The seller pays the same amount whether its one agent or two, so don’t be fooled into thinking the seller will accept less if they don’t have to pay two agents.  In fact having an agent almost guarantees the buyer is SAVING money!  An agent can negotiate a fair price much more efficiently than someone unrepresented.   This is not to say a non licensed person is not capable, they may be, but I like to use the example of an attorney; if you were informed you have the right to an attorney, would you represent yourself?  Would you let the attorney from the opposing side represent you.. NO you wouldn’t, in fact they wouldn’t be allowed to.  Real estate works the same way, you wouldn’t want the same REALTOR representing both sides, and how would they serve both your needs fairly?  Also, you wouldn’t want to represent yourself, a good attorney knows the law better than someone without the experience, education and knowledge.  I love watching law shows, but it doesn’t make me fit to win a case.. The point is ALWAYS used a licensed, honest agent. 

It’s a new year with a fresh start.  We have great interest rates which is a great beginning to the comeback market.  People are starting to see that “credit” matters once again and hard work truly does payoff.  Look across the country and no matter where you’re at, your market is, if nothing else “Different” than it was 1 or 2 years ago.  The real estate bubble has officially BURST!  Now the question is what are we going to do about it?  I have watched how many of my colleagues have begun to slowly take a step out of real estate and focus their professional life else where.  Sellers have stayed homeowners of their current place and some buyers still have dreams of owning.  Many people are wallowing but I say “STOP IT”!  The market is not over its different, things aren’t easy but they are certainly  doable and Sellers, if you have been on the market for a very long time, ask your agent why, however be prepared for the answer.  If you’re selling you have got to have your game face on, as well as a game plan!  If you are going to compete have you been conditioning your home? 

Its time to be dynamic, and stand out for all the right reasons, its The Way to sell your home.  Here is a concept that is simply stated as the 4 P’s:

Price

Position

Perfectly Pretty

First you MUST have your home priced right, the buyer ALWAYS determines the price (they have the money) but you must be in the ballpark.  In a buyers market, pricing needs to be perfect! Second you need to position yourself with the best marketing you can without paying extra!  This means you need to shop around for an agent who can get it done w/ the best marketing plan “Customized” to fit your own needs!  Marketing it properly will place your home in the best position. Finally, Perfectly Pretty, your home needs to be clean, free of clutter, it needs fresh paint nice floors, curb appeal and should smell lovely!  This doesn’t need to be costly; it just takes some hard work!

If it’s been a dream for you to have your own home, let’s take it to the next level; live your dreams!  The real estate agent will educate you on how to be looking for the right place.  Now is the time to buy, interests rates are down, homes are of an abundance and the market is yours!  The right agent will be knowledgeable and can point you in the right direction for getting the right loan to schedule inspections and closing the deal.  Let someone help you turn your dream into a reality, the time is NOW!

If you’re in the real estate business, don’t give up, persevere!  If you can’t do that you have NO business helping people.  Its time for you to educate yourself in all areas of business, from financing, appraisal, pricing and definitely negotiation!  Tell your sellers what they need to do to sell their house, be honest and be frank (w/ sincerity).  If you are a buyers agent, guide them, direct them, and help close a deal!

Hopefully no matter where you are in the market, you can see the opportunities ahead.  Always remember it’s different not impossible.  Think outside the box and you too will close the deal!

So we have all been reading and watching the statistics of our current real estate market.  Its been gloomy and dreary all places of our nation.  Clouds reaching even in the once brightest and strongest of markets.  What does this all mean, will it ever bounce back? If so, when?  Many have been asking these questions and reading every report printed, its been theory that we will not see an increase in real estate earlier than late Fall 2008 or possible Spring 2009.

Many factors decide the fate of real estate.  Some are of course; the cost of money, politics, trust, environment and income.  With foreclosures being at an all time high, its hard for either party to trust, getting the money is difficult and our environment is constantly changing, thus leaving many buyers without the "perfect home" and sellers stuck with an investment they prefer to unload.  As a real estate professional and a bit of a visionary, I see hope.  I truly believe there is a silver lining to the ugly clouds that of been looming.

For sooooo long, its been a buyers market, and still is.   Even though sellers at one point became tired and fed up with buyers having all the control, I believe the buyer has the power to help take this tough market and turn it!  A BUYER a true BUYER (qualified to purchase) has a very powerful position.  Investors thought they were their peak several months ago, think again, foreclosures are at an all time high!

To me I like to call todays market an investors ideal situation, if they buy right.  Why you ask, because fewer people are able to get financed, thus leaving them with still wanting "The American Dream."  They still desire to own their own home.  An investor can be the hero.  Purchasing a foreclosure property at a fraction of the price, and providing affordable housing to such people is a great opportunity for both parties.  An investor can lease with option to purchase to the person that was unable to get traditional funding at the time.  Soon this real estate trend would evolve and grow, eventually helping the market turn upward once again.

Buyers beware of falling under the misunderstanding that you are saving money if you purchase your next piece of real estate on your own.  Buyers that THINK they are saving money by choosing not to be represented in real estate transactions are actually taking a very PRICEY RISK!  When buyers go unrepresented they are taking a huge gamble and risking time, money and their best interest.   All buyers should be represented and when they choose to use a real estate agent it’s FREE!  The buyer never pays the agent, the seller does and the payment of commission has been agreed upon before the listing was ever marketed.  Meaning the seller is going to pay a predetermined amount (usually 7%) regardless if the buyer has an agent or not.  A real estate agent is not the only person that can help, an attorney can also get the job done for around $250- $600.  But why pay the extra money when you can get a trained real estate professional to do it free? 

Most people do not have the negotiating skills and or market knowledge and may end up paying more for real estate than if they had an agent negotiating for them. Thus costing them money that could have better been used to furnish their new home, office or build on their new land. The Market is always fluctuating.  Real estate professionals are constantly in the know, they know of the next roadway construction, new builds, community projects and more.  Buyers often rely on their naked eye and sometimes are not always current on the markets events.  The real estate market is affected by many things and it’s a Realtors duty to rely the message to their clients.

Time is money! Agents do the leg work for buyers and sellers.  Realtors are equipped with the most up to date information that is not even available to the public yet.  Most have been networking for a long time and they know of the next greatest property.  They have technology that keeps them from spending the same amount of relentless hours on the internet surfing real estate sites like most buyers do.  Real Estate is their job; let them spend the working hours researching for buyers, instead of buyers trying to fit it around their busy schedule.

Real Estate agents have fiduciary duties to their clients.  They always put their client best interest before anything else.  They’re like a buyer’s security blanket and they allow the buyer to rest soundly…because someone’s watching out for them.  Sometimes, especially newer buyers aren’t aware of the questions to ask or the concerns they should have.  A good agent will inform them of things maybe they hadn’t even considered.  An agent is the go to person for professionalism and answers.  Utilize the agent for all the answers, they won’t charge you per minute like some attorneys.  Real Estate professionals provide this service for free, so don’t go unprotected; it’s a very costly mistake.

So we have all seen the infomercials, internet ads and sometimes even in the local newspaper advertising incredible home loan interest rates of 4.2, 3.6 and even the occasional 2.8%.  If you're in the market to purchase a new home, you've probably been shopping around and you realize that the "norm" yet always fluctuating is usually around 6.75%.  So how and why are these so-called banks and lenders offering such extreme differences?  They're TEASING you, hence the term "Teaser rate". 

Such rates are frequently driven by dishonest mortgage brokers or self divulged loan officers, rarely by trustworthy mortgage bankers. The difference (http://en.wikipedia.org/wiki/Mortgage_broker) all though both may be paid a commission for their work, brokers are independents working with a multitude of different lenders (not all banks) that will pay the highest commission to them and rarely work in the best interest of the client (you).  Mortgage lenders sell their own products,  having set standards and bylaws they must follow, and are often graduates that hold a vast knowledge of different kinds of loans that will benefit different types of clients.

Frequently these rates are come with an array of stipulations that limits who, when and how buyers can acquire such rate or time constraints.  Usually it's not a locked in rate leaving the buyers little time to compile the paperwork needed for the loan and causing  the rate to change.  Furthermore the interest rate is not the only factor to consider when purchasing a home.  I ALWAYS tell my clients that it’s a "package" deal.  Don't become too focused on the rate, your eyes will deceive you.  The teaser rate may be very low, but the lender maybe charging much higher prices on the back end.  Often, the rate does not include the Brokerage Fee, Loan Origination Fee, Loan Discount, Processing Fee, Credit Report Fee, Transaction Fees and many more. A reputable lender will tell you the "package" price and always give you a "Good Faith Estimate" (required by RESPA) that will give you the break down of all the charges.

The most important thing to remember is if it sounds too good to be true, it probably is.  Always use someone reputable that you know you can trust, communicate your intentions short and long term, let the lender know you and ask a lot of questions!

So you know what you like, but do you know what you want? Are you a buyer that loves the old, charming neighborhoods, but you also like a few homes you've seen in that great new subdivision?  Well I have a few ideas that might help narrow your choices.

When trying to decide between and old versus a new neighborhood, first think about the style of house you prefer and then think about your day-to-day lifestyle.  Do you appreciate hand-beveled hardwood floors or is a durable laminate wood look-a-like or  stain-resistant carpet more your style?  You also will what to consider the following:

Cost.  Older homes can have a unique charm, but you may have to budget for higher maintenance costs, while newer home are often much more energy efficient. Not to say you can't make an older home more efficient by putting in new windows and insulation you could give a historic home a "Like" new quality.

Style.  While older homes may be roomier, newer homes can provide a more open layout, more bathrooms and convenient features such as central air.  Also its possible to build a new property with an "old" feel, this allows you to have the best of both.

Location.  Older homes are often in neighborhoods with shaded sidewalks, varied home styles, and LOWER TAXES.  Newer homes offer suburban benefits, but may have longer commutes and/or association dues.

Regardless of the type of home you choose, a qualified Realtor can help answer your question and provide you with information on the neighborhoods your interested in.