TOUGH LOVE IN REAL ESTATE!

Friends, I'm here today to give you a little "tough love" when it comes to real estate.

And here's why:

Recent real estate figures stack a pretty tall deck against speedy sales and big profits in many markets, including ours. The National Association of Realtors' research estimates more than a 10 month supply of properties currently on the market across the U.S. Our market is no different.

I'm hopeful that a little tough love now will mean we can work together to solve this challenge, rather than against eachother. So here it comes.

Lending standards have tightened up significantly....but there are still buyers out there. There are a few tried and true things you can do to cature that one buyer for your home.

First: Decide if selling right now is absolutely necessary. If not, then don't! Putting your property on the market "to see what happens" is sure to find mostly disappointment. Our market will rebound, and when it does, you'll be far better selling then.

Second: When setting your price, consider multiple angles, Solds, Pending - what buyers were willing to buy in the last 30 days, and Active - who is your competition and where are they placed on the pricing scale?

Third: Be aggressive in your pricing strategy. You get only one chance to make a first impression. The greatest interest in a property comes in the first "weeks" (yes, I said weeks - not months) it's listed.

Lastly, prepare your home to be seen. Put those knick-knacks, quirky paintings and the alter to your wedding away! These personal items are challenging for buyers to look past so they can envision themselves living in your home. Consolidate and simplify, creating even greater value and appeal for your home.

That's it my friends. You've been loved up!

I'm off to a seminar this week - one that will allow me to assist homeowners who are in trouble on their mortgages....so look for an update next Monday.

Enjoy

TOUGH LOVE IN REAL ESTATE!

MAYBE I NEED A DUNCE CAP!

Listening to all the talking heads, you'd think we Realtors need a dunce cap. In spite of the "opinions" of those on your television, I think you should be buying real estate (shocking, I know!) Wait, I can explain.

First, thanks to near record low interest rates, and home prices that have moderated, the number of potential buyers who can afford to buy has increased! According to data compiled from the 3rd quarter of 2008, 56.1% of all new & existing homes sold were affordable for families earning the median income. That's way above the 40% of families who could afford a home at the peak of the market!

Second, Housing still remains the way for most of us to build wealth. Now that really sounds crazy, doesn't it. A recently released report by Harvard University's Joint Center for Housing Studies indicates that even though housing has it's ups and downs, the average homeowner is dramatically wealthier than someone who rents. This holds true among all age groups.

Lastly, WE WILL SURVIVE THIS MARKET CORRECTION! And as we do, our housing market with perform like a bouncing ball. With that in mind, none of us knows when the market (ball) will hit bottom, but when it does, WOW - that ball (market) will pop right back up before we know it. So, as I have before, I will remind you again...the rule is, "Buy Low - Sell High." Let's get to buying.

DARN THOSE NEW YEARS RESOLUTIONS!

Are you like me, making new resolutions each year, only to find yourself about mid-February having failed again? In light of that, I thought I'd share some easy ones that may help with finances so we can all be in better shape in 2010.

AVOID DEBT. Boy, don't we all wish we'd thought of that one sooner. Try to pay more than the minimum amount on your credit card, even if it's only $1.00. Though it seems small, that $1.00 amount allows you to keep this resolution, adding to your success and building your confidence.

TRACK YOUR SPENDING...do it for just a week. This is like dieting. We all spend more than we are willing to admit to. Writing it down will allow you to know where you can cut back.

SAVE FOR RETIREMENT. If an official deposit is too much, drop a coin in a jar when you empty your pockets daily. Consider it a success, no matter how little or how much you save.

Starting with these simple goals helps all of us head in the right direction. We'll all be ready to build on our small successes in 2010.

Hi Everyone:

Why is it in a crisis, everyone seems to forget the rule "Buy low, sell high?" Well, maybe it's because we've watched too much "Deal or No Deal" and keep thinking there's more, more more. I was discussing the historically low interest rates (in the low 5's for FHA - unheard of!) with my good friend Vince Ventura at Evergreen Mortgage. He shared an article with me that came from one of their Senior Loan Consultants. I hope it helps you understand why continuing to say "No Deal" to this market and these interest rates might be a huge mistake!

As always, feel free to call us with any of your questions concerning real estate. We can be reached at 503-371-5209 during business hours.

Enjoy!


From: Vince Ventura, Branch Manager
Evergreen Home Loans
3400 State Street, Suite G-780
Salem, Oregon 97301
(503) 588-2667 tel
(503) 588-2236 fax
(503) 932-4621 cell
(888) 821-9251 toll free
email: Vventura@EvergreenHomeLoans.com

From: Donald Burton Sent: Wednesday, December 10, 2008 11:43 AMTo: AllEMMCSubject: I'm waiting for my 4.5% mortgage the government promised....

Ginny Lee in our Seattle office forwarded me this article. Greed was a factor in the real estate meltdown. No one was immune. Now it seems that greed again, is playing a role as would-be homebuyers and refinancers are waiting for their gift from the government of a 4.5% mortgage. It's possible but they could be waiting a long time.....

4.5% Rates Possible?The news is abuzz about the Treasury lowering home loan rates to 4.5% to stem the foreclosure crisis but details have been lacking. The Treasury Department stated it is looking for additional ways to help the struggling housing industry and believes lower rates are needed.
This idea is similar to the November 26th announcement from the Federal Reserve where they indicated the intent to purchase up to $500 billion in mortgage-backed securities from Fannie Mae, Freddie Mac and Ginnie Mae. In addition they would buy another $100 billion in direct debt issued by those firms. The November news caused bond prices to spike higher and forced mortgage rates lower. Just like any commodity, whenever tremendous buying interest exists, prices rise. Mortgage rates fell almost 1/2% in rate following the announcement. However, the following week market forces continued and rates spiked a bit higher from the recent lows.
It is important to remember that there are no details to the Treasury plan as of yet. The Federal Government does not directly dictate home loan rates. Rates are determined by price movements of Mortgage Backed Securities (MBS), which compete for investor funds in the open market. The Treasury can buy mortgage bonds on the open market but remember that they are not the only entity buying and selling these instruments.
The Treasury is in a very tough position in trying to manipulate home loan rates. Creating a new Federal mortgage program could be very risky. How would rates be set, who would qualify, and can the funds be used for purchases and refinances are just some of the questions being asked. The other critical concern is implementing such a program without destroying the current mortgage securities market. Doing so could have the unintended consequence of causing additional economic turmoil.
Rates are not going to 4.5% with the wave of a wand by Hank Paulson or Ben Bernanke. As a matter of fact, the massive borrowing to fund the TARP program has a negative effect on rates. At this time, the announcement still leaves a lot of uncertainty. What we do know is that rates are at historic lows and house prices have moderated setting up a great scenario for people who need to refinance or are looking to buy a home. Waiting for rates to fall to 4.5% may leave people sorely disa

Ginny Lee
Senior Loan Consultant
Evergreen Home Loans

Hi Everyone,

If you're like me, you're REALLY busy getting ready for the Christmas holiday. This year has been interesting, to say the least. This is the first Christmas my husband Greg and I have had an "Empty Nest." I never realized how much scurrying around I did so the kids would have that magical Christmas! This year, though, we've decided to merge the old traditions with some new ones. And it's been an exciting adventure.

One thing that never changes, though, is the reality of the real estate market. I recently came across an article at Bankrate.com that does the best job I've seen, of explaining pricing strategy.

I'd encourage you to read it in it's entirety. It explains why the worst news from your Realtor might be the very best news you could receive.

I can tell you this is the approach we're taking with our sellers. And what are they seeing in terms of results; selling in 2/3's the time the average Realtor takes, for 9% higher average sales price. That's a strategy worth talking about!

http://www.bankrate.com/brm/news/mtg/20081204-home-seller-price-cuts-a1.asp

If you have any questions about what you're reading, please don't hesitate to call my office at 503-371-5209.

Have a merry holiday season.

Amy

Hi Friends,
Well as you might imagine, anyone in the real estate industry, who plans to survive this market correction, is staying very very focused right now....and I'm no exception!

In spite of that, I found this opinion from the New York Times, and felt it was important for all of you to be alerted. Please feel free to call us any time you need a referral to a reputable mortgage broker, we'd be happy to assist.

Happy Holidays!


OPINION November 24, 2008 Predatory brokers have returned, but this time as loan-modification companies, offering to work deals — for cash up front. http://www.nytimes.com/2008/11/24/opinion/24mon1.html?emc=eta1