If I wasn’t constantly being told be the TV, radio, newspaper, and magazines that we are in a financial downturn, would I know that from my every day life experiences over the last year?

My answer is no.

My life has gone on pretty much unchanged from what it was prior to this “down turn.”  No, that’s not right.  Truthfully, it is much better. My business has remained very good. As a matter of fact, the last couple of years were the best in my career.  There have been a lot of eager buyers — eager to buy a home, and eager to take advantage of the $8000 tax credit.

In some ways, business is much easier now.

Sellers are much more willing to deal and try harder to put a sale together and keep it together.  Also, builders are paying nice bonuses for selling their homes — homes that I probably would have sold anyways to the buyers that I have.  Everyone seems much more appreciative of my efforts — co-op agents, builders, mortgage lenders, title companies, etc.

As far as listings go, sellers have been less likely to try to cut commissions. Continue reading this post

First Time Home Buyer Tax Credit Spurs Sales/Stabilizes Home Prices

HomeGain, the first website to provide free instant home values, today announced the results of its nationwide home prices survey of nearly 1,000 current and former HomeGain Realtor® members.

The results of the fourth quarter HomeGain Realtor Survey on Home Prices published below show generally that since the first quarter HomeGain Realtor Survey on Home Prices, HomeGain members are of the opinion that home prices are stabilizing and will continue to do so.

Seventy-two percent (72%) of HomeGain members believe that home prices will remain the same in the next six months, up slightly from the 69% of HomeGain members who so believed in the third quarter survey. In the first quarter survey just 46% of HomeGain members believed that home prices would increase or remain the same with only 11% thinking home values would increase.

According to the recent survey, HomeGain Realtors said that 37% of home buyers believe that homes for sale are fairly priced or under priced vs. 36% who believed the same in the third quarter and 36% who believed the same in the first quarter. Conversely, 41% of homeowners think that their homes should be listed 10-20% higher than what their Realtors recommend, up from 38% in the third quarter and up from 36% in the second quarter survey.

The first time homebuyers credit has helped drive sales with 21% of Realtors saying half of their transactions involved a first time homebuyer and only 11% of Realtors noting that none of their transactions involved a first time homebuyer. While the credit has clearly helped Realtors, many expressed concerns over the cost of the credit to tax payers and whether sales would continue once the credit expires later next year.

We also asked our members whether they approved or disapproved of President Obama’s performance so far — 42% approved and 58% disapproved, unchanged from the third quarter and down from the second quarter when the President’s approval rating stood at 57%. The results of the HomeGain poll are substantially similar to the nationwide results of the Rasmussen Daily Presidential Approval Rating Tracking Poll conducted during the same time period as the HomeGain poll that showed the President’s approval rating between 46% and 47%. (Read full press release)

“The fourth quarter HomeGain Home Prices Survey of Realtors shows that Realtors believe that the first time home buyers tax credit has driven sales and stabilized home prices, for now. Realtors, however, expressed concerns about the cost of the credit to tax payers and whether sales will continue once the credit expires later next year and additional inventory hits the market,” stated Louis Cammarosano, General Manager at HomeGain. “The vast majority of Realtors expect prices to remain the same or increase in the first six months of 2010.”

The HomeGain 4th Quarter 2009 Realtor® Survey on Home Prices was conducted from December 1-6.

Questions and results of the fourth quarter 2009 HomeGain Realtor® Home Values Survey (click on each question to see complete results):

1. Have home prices increased, decreased or stayed the same in the last year?
2. On average, what do homeowners believe that their home is worth?
3. How do buyers feel that homes for sale are priced?
4. What is the average difference in price between what sellers believe their home to be worth and the amount at which the home gets listed?
5. What is the average difference in price between what a home is listed at and what a home sells for?
6. In the next six months, will the values of homes in your market increase, decrease or stay the same?
7. What percentage of homes for sale are foreclosures in your area?
8. What is the average home price in your area?
9. What percentage of your clients are first-time buyers?
10. How do you as a Realtor think Barack Obama is performing in his role as President?

Continue reading this post

I absolutely hate taking an overpriced listing and simply would not do it. It seems like one big waste of time to me since the market has been declining for the last 4 years. It is like going to work and not receiving a paycheck.

If a seller is overpriced from day one then they will really be overpriced 3-6-9 months down the road.  However, the market is looking more positive as inventories are declining and unit sales are up. It appears that we are in or coming close to a bottom.

So should you start building your listing inventory even if the sellers are overpriced?

If you ask some of the largest producers in your market they will probably say yes.

I’m always looking to learn in this business so I like to observe the biggest producers. Most of them take a lot of listings. There is definitely a direct correlation between being a huge listing agent and selling a lot of real estate. If you look closely at some these large producers you will notice that they don’t always take a listing at an aggressive price.

In fact, many of their listings are over priced. However, in time they manage to get the seller to see the light and eventually many of them sell.  Start observing the larger producers in your market and I think you will see the same patterns.

I read recently that a seller accepting the realities of the market is similar to the stages of the grieving process.

Stage 1 – Denial Continue reading this post

All of us are fully aware of the recent changes in the appraisal industry.  Another victim of yesterday’s market, there is now a “hands off” message that lenders take very seriously.

What I have observed is that the bigger the lender, the more distance that exists between loan officers and appraisers.

For instance, it’s my understanding that Bank of America uses a third party company to set up appraisers…whereas some of the more local lenders are able to “select” a pool of local appraisers thru whom they can rotate business.

As a listing agent, I have found that my input in this new climate is crucial.  My job is not to influence, but to educate.

In a couple of instances, I have opened the door for appraisers who were clearly outside of their geographical comfort zone and the information and comps I have provided were important in verifying a clear market value.

A recent experience clearly confirmed the need for listing agents to meet with appraisers.  The names, location, and exact pricing have been changed to protect the innocent…but, otherwise, this is a 100% true story.

In September, I received an offer on a condo that was listed for $1.45 million in Georgetown (three cheers for Georgetown, right? But that’s another story of market holding strong).  After a round of negotiation, the seller accepted an offer for $1.375 million.  The lender for the buyer was a large, national company.

Although I asked the buyer’s agent to let me know when the appraisal was scheduled, the lender did not  keep either of us in the loop (perhaps he couldn’t…because he, too, was not in the loop) and, because the building had a concierge, the appraiser did his on site inspection without giving me notice. Continue reading this post

Proverbs 20:14 – “Its no good, its no good!” says the buyer; then off he goes and boasts about his purchase.

The economy has been wreaking havoc on on rental owners as well as home owners. The great unwinding of the debt economy and the collapse of available credit has caused job loss, underemployment and a recession psychology causing consumers to pull back, not being sure if they are next to loss work.  Afraid of catching a falling knife, prospective buyers are waiting on  the sidelines.

The housing industry has been pinging property owners to try and get a sense of the degree of difficulty out there. I wanted to share with you some of what these surveys reveal. Continue reading this post