Delivering Bad News

There is almost nothing more rewarding in the business of real estate then making the call to first time home buyers to tell them their offer has been accepted. In today’s market, calling sellers and telling them their house is sold can also provide an “I’m so glad I’m a Realtor feeling”.

Unfortunately, delivering bad news is also part of the job and I’ve been delivering it in large doses of late.

Despite the local facts and statistics, national print media headlines and on air reporting by the talking heads, many sellers believe their home is worth more than it is. It is my job, as the friendly local Realtor, to be welcomed into a seller’s home, burst their bubble, and otherwise ruin their perfect day.

Delivering bad news doesn’t come easy and is a learned skill. Having been through 3 market corrections over 3 decades, I have had a fair amount of practice in delivering bad news. I once had a seller burst into tears and although I appear tough, it was an effort to remain professional and not start bawling right along with her.

Hey, I don’t like this market either. Sniffle.

This week I’ve had the opportunity to take the wind out of the sails of two future sellers. As I delivered my CMA at possible listing #1, Mrs. Seller just stared and never said one word. Mr. Seller escorted me out read more

Posted by Linda Davis on Jul 05, 2008 under Realtor

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Savannah GA real estate market: are you finding the same thing?

I will be cutting back on my contributions here because of time constraints, but I wanted to offer what I have found in the Savannah, GA real estate market and see if others are experiencing the same thing.

Looking at the first six months of 2006, 2007 and 2008, I used new home sales for each year from west Chatham and Effingham counties—where most of the new construction is taking place.

This year there have been 186 homes sold with an average sales price per square foot of $110.75 with an average sales price of $222,363, 145 days on the market and a 98% sales price to listing price.

In 2007 there were 350 homes sold with an average sales price per square foot of $119.05 with an average sales price of $220,410, 130 days on the market and a 100% sales price to listing price.

In 2006 there were 421 homes sold with an average sales price per square foot of $114.63 with an average sales price of $212,633, 131 days on the market and a 100% sales price to list price.

The biggest changes have been the number of homes sold and sales price per sq ft. Buyers are getting much more for their money, but fewer buyers are buying.

I then looked at resales in midtown Savannah to see how resales compare with read more

Posted by Mike Farmer on Jul 01, 2008 under Market Trends, Regional

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Mortgage Rates Report: June 25, 2008

No recommendation until tomorrow. All eyes are on the Federal Reserve Open Market Committee today. At 2:15PM (EDT), 11:15 (PDT), they will release their interest rate decision and statement. The fixed income securities market believe there is a 43% chance that the Fed will RAISE rates to stifle inflation in August and that there is a 61% chance that the hike will come in November.

The eyes will be on the Fed’s commentary, though:

”We expect the Fed to keep the funds rate at 2% today but to shift to a more hawkish statement by placing more emphasis on inflation over growth risks,” strategists at Credit Suisse wrote in a research report. “The Fed will likely use this meeting as an opportunity to set the stage for a potential rate rise in August.”

If the Fed signals that rates could rise as early as August, expect mortgage rates to jump .25% higher, from today’s 6.375% 30 year fixed rate, over the next few weeks. If the Fed signals rate hikes are “possible” as a way to fight inflation, expect rates to stay read more

Posted by Brian J. Brady on Jun 25, 2008 under Mortgage Rates Reports

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National Mortgage Rates Report: May 28, 2008

Mortgage rates jumped in the past 7 days because of rising oil prices. This is the staglationary fear I expected. Mortgage rates have increased to 6.0% (30 year fixed) today.

I expect mortgage rates to rise another .25% in the next 14 days for these reasons:

1. Possible uncertainty at the Federal Reserve Bank.
2. Oil above $125/barrel (which translates to $4/gal. gasoline at the pump)
3. Inflation affecting the European economy.

Bond traders hate uncertainty so we expect a lot of volatility through Labor Day. read more

Posted by Brian J. Brady on May 28, 2008 under Mortgage Rates Reports

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