Yes, We're Still Selling Homes!

As Realtors and brokers cut down massively on their advertising budgets lately, our clients are beginning to wonder if we're still selling homes. Mention to someone that I'm a real estate broker and the look on their face changes. "How IS the real estate market?" is always the next question.

Look, it isn't a great market if you're a seller or a homeowner. I know. I have checked comps on my houses and I don't want to see them for a long, long time. But then, my brother isn't interested in looking at his stock portfolio either. For now. And he's a CPA and a very savvy investor. No one's happy right now.

Oh wait, did I say no one? I'll tell you who's happy. Home buyers are happy. They're more than that - they're ecstatic. And they should be. One look at our tenants' faces when they just bought the house of their dreams could tell you their story. And yes, they deserve it. Excellent care and not one month of missed payments.

So yes, if you're a homebuyer, wipe the worried look off your face. You're going to be just fine. And quit asking how the market's doing. We're still here. We're still selling homes! And it's a great time to buy!

Real Estate Article Worth Reading

At a time when real estate prices have plunged - farther down than most people anticipated - it might seem like a good idea to just get rid of the mortgage payment. A disinclination to be in any kind of debt is one of the goals of most people but you might want to read this article before you get too hasty with paying off that mortgage. Then decide for yourself if it's really, really that high on your list of priorities.

Forget real estate, look towards men's underwear!

This one gave me my first laugh of the day, so I'm sharing it here. Those of you who are homeowners might find this interesting. As we know, it isn't the homebuyers or even the home sellers and potential home sellers looking for signs of the market recovering. Home sellers and home owners believe the market will look much, much better in the coming six months. (Whether this means they will put their homes up for sale has to yet be seen.) The Sacramento Bee has already reported that median sale prices of real estate are beginning to stabilize in Sacramento.

But if you want to know the real state of the economy, forget real estate! Says Michael Brush of MSN Money, look towards men's underwear. Since they're not easily seen (thank God!) most men put off buying underwear during a recession. And that can give you a clue as to where the economy is headed.

Interesting read.

It's Here!

If you're a novice real estate investor, the market is great for being a landlord or jumping into investment property. But, do you know the landmines to avoid? No? Then, pick up my book "Landlord Landmines." Available NOW at Amazon!

Foreclosure Alternatives Program Details Announced

The California Association of Realtors has just sent out news that new details have been announced under the Foreclosure Alternatives Program. According to the CAR email, the program "requires that prior to proceeding with a foreclosure, servicers must determine if a short sale is appropriate." The program is in place until 2012.

Incentives to lenders in this program include:
- $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure
- $1,500 for borrowers/homeowners to help with relocation expenses
- up to $1,000 toward the cost of paying junior lien holders to release their liens

As we have seen in the market updates, it is the short sale inventory that worries everyone and could hurt the return of a normal real estate market. If this program works, it could just be the answer. It's too soon to tell, however.

The FAP also claims straightforward and streamlined documents and procedures in dealing with short sales.

Watch that real estate inventory!

The Sacramento Bee has today reported that inventory in the Sacramento real estate market is down to 2005 levels. After the peak in listed homes in 2007, inventory has been declining over the last 20 months. We have already been covering these market updates at the company website, so it's no surprise to us.

Could this be a recovery or the beginning of a recovery? REO listing agents don't believe so because they expect more bank-owned homes to be listed beginning June 1st. Banks don't want to flood the market with REOs all at once because the price drops will be scary. So with banks not listing REOs and individual sellers not willing to sell if they have to, inventory has shrunk quite a bit lately.

We'll just have to see what happens in June to get a better picture.

I love my job!

At the risk of sounding like I'm tooting my own horn (a little too loudly!) I want you to read this post on Sacramento-Home recently about me taking over as broker of record.

I love my job. Oh wait, did I say that already?

For Sale by Owner?

I came across this while surfing the internet. Thought it was worth a smile on a Monday morning. Check it out!

Want a Recovery? Look after the Investors!

I came across an excellent article on Yahoo today that brings up the all-important real estate investor and his role in a potential real estate recovery. I couldn't agree more with what the writer, Bob Hunt, says. Go ahead and read the entire article to see if this makes sense. He brings up a valid point in that most sales today are in the lower range of prices. If there were some way to attract not just the homeowners but the investors into the real estate market, the scene might look very different a few years from today.

Unfortunately real estate investors don't get the respect they deserve. We seem to be lumped in with "real estate developers" and "big business" or "those rich people that kill small business." Most real estate investors I know are middle-class hardworking people that just want to save enough for retirement. Maybe we need an image overhaul!

Real Estate Quote of the Month

The Englishman, hidden behind his hedge or wall, is not interested in his neighbor’s house, and the idea of wanting to read about houses bought, sold, or built by total strangers is not even funny; it is merely absurd.... But to an American, it is not only important, it is comforting, it is gratifying that other people are improving your home town; even people who have no personal economic stake in the rise of real-estate values feel the same kind of interest that makes a motherly woman smile with genuine amiability on the children of total strangers. The very linguistic difference between “house” and “home” is significant. All Americans who live in houses, not apartments, live in homes; the Englishman lives in his home but all his neighbors live in houses or flats.

D. W. Brogan in The American Character.

A real estate recovery for Sacramento?

Those of you who follow the real estate market updates I write over at the Elite Properties company blog already know that some areas in Sacramento have hit bottom and have already begun the recovery. But Sacramento real estate as a whole seems to be taking a while.

This article published today suggests mixed information but it's worth a read.

REO Buyers May Pick Title Company

If you're a homebuyer in today's market, the deeply discounted real estate is definitely there. But if you're distressed by the fact that sometimes the bank wants to call all the shots and you seem to be playing only their game, this news might comfort you a little.

The California Association of Realtors claims that "new language" in AB 957 - Choice of Escrow Bill - "protects fair negotiation over settlement services" like title and escrow providers. So basically, if the seller wants to pick a specific title company they will have to cover title and escrow expenses.

So if you're a homebuyer out there, don't assume you cannot pick title and escrow companies. The new bill claims to impose new penalties on banks who violate this law.