Frankly Speaking

Recently DataQuick released its report showing that the Southern California Real Estate Market was still feeling the effects of the collapse we experienced at the end of 2007. In the Southland home sales overall are down slightly in year to year comparisons. On a similar note the median sales price from across Southern California has fallen modestly from a year ago to today (280K from 285K). The total number of sales in the six county area was down nominally for the 10 th straight month when compared to the previous year. This comes at a time when we are usually building some momentum as we head into the peak selling season. What this tells us really is that there is still some buyer hesitance to be dealt with. According to DataQuick, “sales have been below average for a protracted period of time. And, there is little doubt that there is a pent-up demand out there”. Buyer hesitation seems to be coming from a continued fear of prices falling further combined with the reality that quali...

Last week while in Austin Texas for some training, while reading the local newspaper, I came across the story of Zach Thibodeaux. Zach is an eight year old boy who is suffering from a degenerative disease known as Cone-Rod Dystrophy. This disease is rapidly robbing Zach of his sight. In fact, at this point in his life, he has already lost 75% of his vision in one eye, and 85% in the other. Soon he will be blind. Currently Zach is on a fast paced tour of New York City, in a feverous attempt to see all that can with the hope that those visions will be committed to his memory. His story is tragic, incredible, and inspiring all in one. And it made me think…Why is it that despite all the opportunities that we have before us, we often can’t see them before it is too late. I have said many times (in many different ways) that today’s market offers buyers and sellers many opportunities. And, yet we fail to see them. Quite probably because we take today’s opportunities for granted. A seller toda...

Last week we explored the value for the seller of working hand in hand with a REALTOR®. Today we need to delve into the much misunderstood relationship between a buyer and his or her agent. It is this relationship above all others that is at the heart of who we are and what we do for the consumer. First let me tell you of the very real, very common scenario. One that replays itself each and every day. A buyer decides to begin the process of looking for a home. Usually they will start out either searching on the internet, or driving neighborhoods looking for homes that address their needs. When they see a listing that interest them, they call the listing agent and ask for a showing. This is their first mistake. You see the listing agent already has a relationship with the seller. And it is to their mutual benefit to see that you pay the highest price possible for the home that you covet. While this is in no way unethical, it is a reality. And, because of the obligation that the listing ...

Good market or bad there is one constantly nagging question that is consistently asked by home sellers (and buyers) and that is “why do we need to use a REALTOR®? I thought that this week would be a great time to truly explore the value proposition that working with a highly skilled professional can bring to the transaction no matter what side of the aisle you are on. The number one argument is that of commission. Be it 4%, 6% or (you pick the number) it is often said that these cost cannot be justified. That the skill sets required to negotiate a purchase or sale do not warrant the cost. So it is this premise that I will first address. It is a fact that a home listed and properly marketed by a licensed real estate professional will in fact sell for 24% more on average than that of a home that is for sale by owner (FISBO). This fact alone would argue the point. It has been proven that the average seller would have a net profit that is at least 18% greater from his sale if he engages t...

First let me say that last week’s article caused a flurry of responses asking for more information. So if you will indulge me, I will expand on the topic. And, add a couple of divergent opinions in an attempt to draw even more of you into the debate. First, on February 11, 2011 in response to the White House’s floating the idea of dissolving Freddie and Fannie over the next few years, the California Association of Realtors (CAR) had the following response. “The elimination of government involvement would raise borrowing cost for home buyers. And, severely restrict a safe and affordable flow of financing, further impeding the still fragile housing market recovery”. “A reduced government presence in the mortgage market will raise the cost of homeownership and make mortgages less available,” according to CAR President Beth Peerce. She goes on to say “Congress needs to understand that during economic downturns, the housing market needs government involvement to ensure capital stability”. C...

Recently the Press Enterprise ran a story about the Obama administration’s planned phase out of industry giants FANNIE MAE and FREDDIE MAC   who combined hold over half of the nations mortgage securities. The stated motivation for this move is to lessen governments role in   the real estate industry. The big question is twofold first what does this mean for us today?   And, what will it mean for us in the future? It should be noted that   the prevailing thought is that in order to avoid a catastrophic collapse of our financial system   the transition will need to   be stretched out over a protracted period (probably five years or more). So for the short term this will hardly cause a ripple. However, in order for   our secondary market to survive (which is in our best interest) the private sector will need to fill the void left by the exit of Fannie and Freddie from the market place. The likelihood of this happening today is very slim. You see not only ...

It never ceases to amaze me the level of creativity that exist out there when it comes to those who would use illegal means to capitalize on a shifted or down market. The internet has spawned a new level of sophistication to the scams of yesterday. And today, the buyers and sellers would be well advised to ask questions and look before they leap. It should come as no surprise that currently the vast majority of fraud occurring is in the short sale and loan modification arena. This niche market (which currently represents over 50% of the transactions in our area) has been inundated by those who would use fraud and deception for their own financial gain to the detriment of those on whom they prey. In November of 2010, the Federal Trade Commission (FTC) implemented the Mortgage Assistance Relief Services (better known as MARS) act in an attempt to protect distressed homeowners from the ever increasing list of foreclosure relief scams. The primary function of this new rule is to make it il...