By Jason O’Neil
Are the two at odds with one another? I say yes. I begin each buyer consultation with the simple question: “Do you want a great deal or do you want a great home?” The responses are typical:
“Both! Ha Ha Ha…I mean, can’t we get both?”
“Uhhhhh. Great home?”
“Great home. Good deal. Is that possible?”
Most home owners forget what they paid for their home the instant after they move their stuff in. And while most of them get a monthly reminder about how much they owe on their home, very few remember the asking price, let alone the prices of the other 10 homes they looked at before they found “The One.” The hang up on the good deal is so over emphasized that I predict it will fade in the next 12 months.
I know that there are naysayers out there, but I am having some serious deja-vu. In 2006, home sellers had the golden tickets. Price? Price had nothing to do with selling a house, heck, if you missed the mark on price the market would quickly appreciate so fast that the market would catch up with the price. Sellers didn’t have to negotiate and buyers were at their mercy. My how the tables have turned. But have they really? I am starting to see the same type of overreaction in buyers. I had a buyer ask the seller to fix the neighbors house during an inspection negotiation!
Sellers are saying enough is enough and our market is normalizing. The great homes sell and sell quickly for close to their asking price…some get multiple offers. The homes that languish on the market are the ones that have been over looked, or been rejected by other buyers and the market as a whole. Do you want a great home or a great deal?
Jason O’Neil is a broker and an owner of McKenzie Real Estate in Indianapolis. Visit his Web site: www.McKenzieListings.com
By Laura Rubinchuk
For the past two years, I’ve been able to bury my head in the sand when it comes to distressed properties. It’s just not a huge part of the market in the area I do most of my business. As of this morning, only about 6 percent of the active listings were short sales, and fewer than 3 percent were REOs. However, hearing of the shadow inventory that’s possibly coming on, and that most of the properties that were bought in 2005-2007 around here are underwater (some more than others) I finally pulled my head out of the sand and realized it’s not going anyway any time soon, and probably will increase in market share.
I attended a seminar on “The Truth About Short Sales” this week. The amount of information that I didn’t know, and didn’t know that I SHOULD know made my head spin. It got me wondering… how many “short sale experts” are doing a real disservice to their clients? How many want a quick sale and push a short sale without considering the whole picture? I know that I’m not qualified to tell you whether a short sale, foreclosure, bankruptcy, or using your house as a coffin and continuing to pay is the best option. But I can listen. I can help you make sense of a messy situation and direct you to the resources who can help you get to the right decision for you.
As real estate professionals, we know what the market is doing. Are prices coming up any time soon? If not, you know how to market and sell the property, when/if a short sale is right for the client. If not, direct them to someone who can help. Earning someone’s trust in a very uncertain time is hard, but rewarding. Not only will you feel good about helping someone who desperately needs it, but I bet you they’ll be loyal for life. Be a neighbor, be a friend, first and foremost, by putting their needs ahead of your agenda.
By Heather Soldonia
More scary than mummies, black cats, or cobwebs is the looming question: Has the real estate market bottomed out?
We REALTORS® have been asking Congress “Trick or Treat? … Please come up with some creative ways to revive the real estate market. Pretty please?”
When Forbes reported the 10 worst real estate markets of 2009, eight were in California. Currently, the unemployment rates are still above 12 percent in California — and remember that unemployment rates are only determined based on the number of people still receiving unemployment benefits — it doesn’t include in its calculation those who have received the maximum amount of unemployment benefits and now have absolutely no income.
Obviously, we can understand why so many mortgages are still going unpaid. In California, default notices have dropped by 10 percent, but that is specifically because lenders are modifying loans and/or short selling.
That being said, let’s take a quick moment to consider how the unemployment rate effects commercial real estate: Continue reading »