On Monday August 15, 2011, Louis Cammarosano, General Manager of HomeGain, was a guest on the Real Estate Radio show on The Big Talker 1580 AM, hosted by Ryan Sloper.

Listen to the show.

Part 1 (14:27)

Ryan notes the stock market volatility of the prior week. Ryan notes that mortgage interest rates are at record lows. Ryan talks about the cost of home ownership as being the primary determinate in home affordability and matching mortgage payments against rental payments. Ryan and Louis discuss the sales of US Treasuries in the prior week and note that demand for US Treasuries needs to remain high to keep interest rates low. Louis notes that demand for Treasuries  needs to be created by the Fed and to be coordinated by the Fed with foreign sovereigns who finance their US debt purchases by taking out debt of their own. Louis notes that interest rates are being kept low artificially. Ryan notes that China is continuing to purchase US Treasuries while Russia is scaling back. Louis notes that China is sort of forced to buy US Treasuries so that the US can pay their interest payments. Louis notes that China and Russia are also purchasing hard assets, including silver and gold. Louis notes that Alan Greenspan recently commented that the US will never default on its obligations because it can always print money. Louis notes that Greenspan’s comments do not reflect encroaching senility but rather his position of no longer being the Fed chairman and notes that Bernanke holds the same view. Louis notes that the US will pay its debt even if they have to print the difference and notes that such a manner of payment is default by inflation rather than default by non payment as the currency so printed up is worth less. Louis notes that getting a low interest rate mortgage now is a benefit in that the dollars used in the future to pay off the mortgage will be worth less. Ryan notes that when markets are volatile, they rush to purchase US Treasuries. Louis notes that the reason there is volatility is because people are concerned about the US economy and the dollar and that ironically their investment decision is to purchase US Treasuries. Ryan notes that he would buy gold or silver as a safe haven rather than US Treasuries. Louis notes that the rate on US Treasuries is lower that the rate of inflation. Louis notes that while we can’t predict the direction of interest rates, we know that rates can only fall from 4% towards zero but they can rise many points higher. Ryan notes that the Fed thinks there is no inflation. Louis notes that there is inflation in the money supply and that it has already found its way into higher prices of commodities but not necessarily in the price of all finished goods. Louis notes that this stance gives the Fed cover to do QE3 and QE4. Louis notes that we are already seeing QE3 as the Fed is reinvesting the interest in the bonds they purchased during QE1 and QE2 back into US Treasuries

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On Monday August 8, 2011, Louis Cammarosano, General Manager of HomeGain, was a guest on the Real Estate Radio show on The Big Talker 1580 AM, hosted by Ryan Sloper.

Listen to the show.

Part 1 (14:29)

Ryan and Louis discuss the S&P down grade of the U.S. credit. Ryan notes that in spite of the downgrade people are still buying treasuries. Louis notes that the US has done nothing to reduce its debt and notes the irony that raising the debt ceiling does not solve the debt crisis. Louis says that buying US treasuries is the safe haven of choice not gold and silver even though gold and silver have out performed treasuries. Louis mentioned that by not assuring the market that the debt would be paid uncertainty resulted. Louis criticizes the creation of the “super commission” tasked to come up with spending cuts. Ryan and Louis discuss the impact of the S&P downgrade on interest rates and notes that interest rates went even lower. Ryan speculates that interest rates may remain low for 3-5 years. Louis notes the irony that S&P has had a poor history of rating entities and notes that the US debt issues are now in focus around the world as a result of the reluctance of the congress to raise the debt ceiling. Louis notes that investors are uncomfortable with the situation in the United  States and therefore are buying US treasuries! Louis mentions Greenspan’s recent statement that the United States will never default as the United States can always print up the amount owed. Louis notes that when dollars are printed the recipient gets  debased dollars, which causes inflation. Louis notes that as long as the rest of the world continues to buy US treasures and the Fed continues to do so interest rate will remain low. Louis notes that locking in a long term loan at low rates will be a winner as rates certainly will rise in the coming years.

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I remember a lesson I learned, a long time ago, when I first learned how to ride motocross in the Southern California foothills to keep the cycle pointed straight ahead at all times. My natural reaction was to find the seemingly easiest path through the trail, bobbing and weaving to avoid any large boulders; however surprisingly this was not the correct course of action. Instead, I was advised to keep heading straight, even if a huge boulder lay dead ahead in my path. The bike and its shock absorbers would handle even the largest rocks. A terrific sense of enlightenment and freedom came over me that I remember to this day.

Occasionally, I catch myself in an avoidance mode and suspect there are many others in these tough economic times with the same strategy. Then I get back into the saddle and begin to forge straight ahead despite what the depressing news says, no matter what the source. I tell myself, “These are the days we have to dig our heels in deeper.” They say when the going gets tough, the tough get going. It’s up to us to decide our personally appropriate strategy of fight or flight.

Over the course of the past year, I found myself expanding my view of my team’s market area. This was not only by a geographic territory, but also by niche or specialty. A strategy such as this requires a non-traditional approach to staffing our team. I decided I was no longer after an agent who could simply service an area, now I was after a hybrid. Such a person may be fit to service an area but they must also have special talents. Such talents may include advanced knowledge of luxury home sales, equestrian properties, international sales, new construction, golf properties, commercial, etc, or anything else that makes them stand out from the crowd.

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On Monday July 25, 2011, Louis Cammarosano, General Manager of HomeGain, was a guest on the Real Estate Radio show on The Big Talker 1580 AM, hosted by Ryan Sloper.

Listen to the show.

Part 1 (24:25)

Ryan discusses the heat wave that is gripping the nation. Louis and Ryan discuss the debt ceiling and the lack of a deal to date. Ryan notes that there is tremendous uncertainty. Louis notes that  a signal should have been sent to the market that the US would not default on its debt and would cut spending elsewhere to ensure that money would be available to pay debt holders. Louis notes that the President’s position is  largely based on not wanting to be negotiating a debt reduction deal when he is running for reelection. Louis notes that the US has a triple A credit rating despite having a $14 trillion deficit and having difficulties coming up with an agreement on how to service it. Louis mentions Ron Paul’s idea that the US should not pay the interest on the bonds that the Federal Reserve bought with money they created out of thin air. Ryan and Louis discuss their surprise that mortgage interest rates are still low. Louis notes that a grand plan to reduce the deficit is not feasible in a week and that Congress needs to change how they do business, rather than relying on raising the debt ceiling. Ryan notes the suggestion of eliminating the mortgage interest deduction as a means to reduce the deficit. Louis notes that the government uses arbitrary numbers and applies them nation wide and does not account for regional differences in the costs of living. Ryan notes an idea floating around that the government might take over foreclosed homes and rent them out. Louis notes the political posturing that takes place by noting that the public is told that essential services like police and fire departments or social security may be cut if the budget is not passed. They never threaten to shut down things like the Department of Energy or the Department of Education, rather they threaten what you need.  Louis notes that the entire debt ceiling debate is framed in terms of raising the debt ceiling as necessary to pay the bonds rather than noting that debts can be prioritized. Ryan and Louis discuss the nature of government and its involvement in the economy. Ryan predicts a double dip recession and that interest rate will rise. Louis notes that the Fed is merely trying to reheat the economic souffle with QE1 and QE2. Louis and Ryan note that a 4% mortgage rate is a good deal given that the inflation rate is higher than that.

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I’m an early adopter with all things technology and as an early adopter, I’m keenly aware that there are pros and cons to buying in early. I’m ok with that. Technology changes rapidly and those of us that are early adopters buy the new technology as it comes out. The latest and greatest as they say.

Real estate marketing, however, has not changed too much for most agents. We all take photos, we all list in the local MLS system(s) and we all try to get the best price we can for each and every new listing we take. After all, it’s the price as it relates to condition and location combined with the photos that attract buyers and beget sales. Right? I think that’s true, but I think we need more, better marketing, in light of the fact that traditional resale homes are having to compete directly against somewhat comparable short sales and foreclosures that have spread like a virus across the real estate landscape.

I don’t think photos are enough. In this market, I think we have to make a more compelling case that are listings are better – worth more than the foreclosures and short sales down the street. I think we need video. I don’t mean panning still images set to some cheesy music either. I’m talking about videos that make your listings (and maybe even you) look fantastic. Here’s a video from some guys in Australia that have taken video over the top!

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Mobile apps mean you’re a thumb click away from finding almost anything – even your next home. The other day I read an article about how mobile apps on your Smartphone can be used for buying a home (or just checking out a new neighborhood). These realty apps aren’t new and don‘t seem to be going away, but then I got to thinking: Do I really want a mobile app to choose my next home for me?

Deciding on where (and whether!) to buy a home is lot different than, say, trying to find where the best place in town to eat a hot dog is. Sure, you could use a mobile app to find out about a new neighborhood, but it doesn’t replace actually having a “real” real estate agent to show you around the neighborhood. That’s why new homes are usually sold offline and in person, with an agent who knows the area.

The benefits of a (real) real estate agent outweigh the realty app’s benefits every day of the week. A real estate professional agent can do more for you as a home buyer than an app that says “you are here.” What, you ask? Read on – here I’ve listed 6 benefits of using a real estate agent to help you buy your home:
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