11 Temmuz 2012 Çarşamba
10 Temmuz 2012 Salı
9 Temmuz 2012 Pazartesi
3 Types of Appreciation in Real Estate
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It is easy to think of appreciation in real estate as monolithic. But there are different reasons why properties appreciate:
1) Inflation appreciation: Over the long-term real estate prices have tended to rise. In fact, the median price of a house in the United States in 1975 was $38,600. In 2012, it is $171,250. Prices of all assets generally increase over time due to this inflationary effect and real estate is no exception. If it is rising for this reason alone more than the Consumer Price Index you are coming out ahead.
2) Demand appreciation: This is a localized area where the demand for housing in that area exceeds the supply, forcing prices up. These areas include those with good schools, access to mass transit, trendy restaurants that you can walk to and popular tourist destinations. Especially when there is very little possibility to add properties to that location and the reason for the demand is strong these areas are a good bet.
3) Forced appreciation: You force appreciation by improving the property and increasing the rents. You add value by making it a nicer place to rent or buy by a larger increment than it cost you to fix it up.
The best opportunities are when you can capitalize on all three types of appreciation. Find a hot area, with a property that needs some cosmetic work, at a time with some real estate inflation and you'll hit a home run.
1) Inflation appreciation: Over the long-term real estate prices have tended to rise. In fact, the median price of a house in the United States in 1975 was $38,600. In 2012, it is $171,250. Prices of all assets generally increase over time due to this inflationary effect and real estate is no exception. If it is rising for this reason alone more than the Consumer Price Index you are coming out ahead.
2) Demand appreciation: This is a localized area where the demand for housing in that area exceeds the supply, forcing prices up. These areas include those with good schools, access to mass transit, trendy restaurants that you can walk to and popular tourist destinations. Especially when there is very little possibility to add properties to that location and the reason for the demand is strong these areas are a good bet.
3) Forced appreciation: You force appreciation by improving the property and increasing the rents. You add value by making it a nicer place to rent or buy by a larger increment than it cost you to fix it up.
The best opportunities are when you can capitalize on all three types of appreciation. Find a hot area, with a property that needs some cosmetic work, at a time with some real estate inflation and you'll hit a home run.
The Nationals Are in First Place???
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It's very early in the season but the Nationals are currently atop the National League East with a 7-3 record. With their $81 million payroll they are beating the Phillies who are loaded with stars and spend $175 million annually.
What's going on? There are a couple of factors:
1) Phenom pitcher Stephen Strasburg is healthy and pitching well. He's 1-0 this year with 14 strikeouts and a 0.69 Earned Run Average (ERA).
2) Manager Davey Johnson has been able to institute his system in the organization since taking over for Jim Riggleman midway through the season.
3) The whole rotation is pitching great with a combined ERA of 1.99 - Ross Detwiler and Jordan Zimmerman are pitching really strong.
4) Adam LaRoche, Ian Desmond, and Jayson Werth all have batting averages above .340.
5) Most importantly they seem to believe in themselves and be having fun.
Let's hope they have a better than .500 winning percentage for the first time and bring some excitement to DC baseball!
What's going on? There are a couple of factors:
1) Phenom pitcher Stephen Strasburg is healthy and pitching well. He's 1-0 this year with 14 strikeouts and a 0.69 Earned Run Average (ERA).
2) Manager Davey Johnson has been able to institute his system in the organization since taking over for Jim Riggleman midway through the season.
3) The whole rotation is pitching great with a combined ERA of 1.99 - Ross Detwiler and Jordan Zimmerman are pitching really strong.
4) Adam LaRoche, Ian Desmond, and Jayson Werth all have batting averages above .340.
5) Most importantly they seem to believe in themselves and be having fun.
Let's hope they have a better than .500 winning percentage for the first time and bring some excitement to DC baseball!
Metro to Boost Fares Up To 15% in July
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In case $4 gas wasn't enough for you, the Metro Finance Committee has voted to increase fares by as much as 15% beginning on July 1st: http://tinyurl.com/c4v3qpl
The largest fare is increasing from $5 one way to a whopping $5.75. Many of these people also pay for parking which will go up 25 cents a day adding $1.75 to their daily commute.
The changes are meant to simplify the number of types of fares and help close the $103 million budget deficit. However, many riders are left wondering whether they are paying more for deficient service.
Many escalators are broken more often than they are working, trains can be more packed than the Tokyo subway, and repeated mechanical failures and track work snarl traffic.
Hopefully, Metro will look at ways to reduce their budget and improve service without causing further strain on the wallets of their riders.
The largest fare is increasing from $5 one way to a whopping $5.75. Many of these people also pay for parking which will go up 25 cents a day adding $1.75 to their daily commute.
The changes are meant to simplify the number of types of fares and help close the $103 million budget deficit. However, many riders are left wondering whether they are paying more for deficient service.
Many escalators are broken more often than they are working, trains can be more packed than the Tokyo subway, and repeated mechanical failures and track work snarl traffic.
Hopefully, Metro will look at ways to reduce their budget and improve service without causing further strain on the wallets of their riders.
Thomas Jefferson's 10 Rules for Living
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Never put off till tomorrow what you can do to-day. Never trouble another for what you can do yourself. Never spend your money before you have it. Never buy what you do not want, because it is cheap; it will be dear to you. Pride costs us more than hunger, thirst and cold. We never repent of having eaten too little. Nothing is troublesome that we do willingly. How much pain have cost us the evils which have never happened. Take things always by their smooth handle. When angry, count ten, before you speak; if very angry, an hundred.
We Can't All Be Donald Trump - And That's Okay
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When consideringthe many obstacles on the road to success, you might overlook “perfectionism”,but you shouldn’t. This sneaky stumbling block can stop you from even beginningyour journey.Nancy’sColasurdo’s excellent article, “We Can’t All be Shakespeare- And That’s Okay”,takes a look at a ‘defeat mechanism’ that can stop us from even trying toaccomplish our dreams. And as weall know, if you don’t begin your journey, you certainly won’t get there.As a coachColasurdo has found that clients “often feel that they have to be perfect oraspire to be at the level of someone they feel is at the top of theprofession.” Looking at the end game, some feel that such an achievement isimpossible for them. They forget the many steps that a leader took to achievehis or her goals. And they alsoforget that each one’s way is individual. How might thisapply to real estate investing? What if a would-be investor chose Donald Trumpas a model, and said, “What’s the point of buying a small rental property, ortwo or even three? That’s nothingto Donald Trump.” But just becauseyour journey may be different, that doesn’t mean you shouldn’t take it. Whenlooking at others’ success stories – remember, their starting point may bedifferent, they have a different path to take, but the important factor toemulate is the mindset that looks for opportunities small and big and makes themost of them one by one.Donald Trumplearned the real estate business first hand from his dad, Frederick, asuccessful developer in Queens and Brooklyn. When ‘the Donald’ wanted to invest in Manhattan, his dadtried to discourage him. But Trump had a vision of what he could accomplish, hefelt he understood the risks, and was determined to go for it. His mid-70’s transformation of theCommodore Hotel into The Grand Hyatt, not only made him a fortune and set him ona road to tremendous success, but it also completely revitalized a rundown areaof Manhattan.Few of us beginwith Trump’s assets or a dad like his for a mentor. Instead, we have to learn thebusiness on our own from the ground up. But we do have the ability to adopt theTrump mindset – the approach of a champion. What does itentail? Doing your homework, understanding the finances, taking well-consideredrisks, planning every step, being prepared for challenges and dealing with them,capitalizing on success, learning from failures. And to quote Winston Churchill, “Never, never, never, never giveup.”And little bylittle, step-by-step you will build your real estate business, write your ownstory, improve neighborhoods and achieve success your way. And you’ll be gladyou didn’t wait to become perfect before beginning your journey.
When consideringthe many obstacles on the road to success, you might overlook “perfectionism”,but you shouldn’t. This sneaky stumbling block can stop you from even beginningyour journey.Nancy’sColasurdo’s excellent article, “We Can’t All be Shakespeare- And That’s Okay”,takes a look at a ‘defeat mechanism’ that can stop us from even trying toaccomplish our dreams. And as weall know, if you don’t begin your journey, you certainly won’t get there.As a coachColasurdo has found that clients “often feel that they have to be perfect oraspire to be at the level of someone they feel is at the top of theprofession.” Looking at the end game, some feel that such an achievement isimpossible for them. They forget the many steps that a leader took to achievehis or her goals. And they alsoforget that each one’s way is individual. How might thisapply to real estate investing? What if a would-be investor chose Donald Trumpas a model, and said, “What’s the point of buying a small rental property, ortwo or even three? That’s nothingto Donald Trump.” But just becauseyour journey may be different, that doesn’t mean you shouldn’t take it. Whenlooking at others’ success stories – remember, their starting point may bedifferent, they have a different path to take, but the important factor toemulate is the mindset that looks for opportunities small and big and makes themost of them one by one.Donald Trumplearned the real estate business first hand from his dad, Frederick, asuccessful developer in Queens and Brooklyn. When ‘the Donald’ wanted to invest in Manhattan, his dadtried to discourage him. But Trump had a vision of what he could accomplish, hefelt he understood the risks, and was determined to go for it. His mid-70’s transformation of theCommodore Hotel into The Grand Hyatt, not only made him a fortune and set him ona road to tremendous success, but it also completely revitalized a rundown areaof Manhattan.Few of us beginwith Trump’s assets or a dad like his for a mentor. Instead, we have to learn thebusiness on our own from the ground up. But we do have the ability to adopt theTrump mindset – the approach of a champion. What does itentail? Doing your homework, understanding the finances, taking well-consideredrisks, planning every step, being prepared for challenges and dealing with them,capitalizing on success, learning from failures. And to quote Winston Churchill, “Never, never, never, never giveup.”And little bylittle, step-by-step you will build your real estate business, write your ownstory, improve neighborhoods and achieve success your way. And you’ll be gladyou didn’t wait to become perfect before beginning your journey.
8 Temmuz 2012 Pazar
Why the French Election Matters in the US
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As the french go to the polls today for the first round of voting in their presidential election it is fair to say that not many Americans are paying attention. We ignore what happens in the Gallic state at our peril however. There's a great piece this weekend in the Washington Post about how the french election could affect the world economy: http://tinyurl.com/7sfdyxq
Basically if the front-runner, Francois Hollande, wins then France may try to renegotiate the the Eurozone treaty. In fact, there are major fears that the financial markets will react negatively to the fact of him getting elected. This is because Germany may lose its partner in making sure that Greece, Italy, and Spain maintain fiscal discipline and avoid default. We have seen the ripple effect of the Greek's flirting with default throughout the world economy and it has not been positive. Let's hope that if Hollande is elected he approaches Eurozone questions with deliberation and caution.
Basically if the front-runner, Francois Hollande, wins then France may try to renegotiate the the Eurozone treaty. In fact, there are major fears that the financial markets will react negatively to the fact of him getting elected. This is because Germany may lose its partner in making sure that Greece, Italy, and Spain maintain fiscal discipline and avoid default. We have seen the ripple effect of the Greek's flirting with default throughout the world economy and it has not been positive. Let's hope that if Hollande is elected he approaches Eurozone questions with deliberation and caution.
Redskins Draft Needs
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Now that it is virtually certain that the Redskins will take Heisman Trophy winner Robert Griffin III with their second round draft pick, the question remains what needs will they try to fulfill in the later rounds. The Skins used free agency to sign wide receivers Pierre Garcon and Josh Morgan and they used the franchise tag to retain tight end Fred Davis. So there are less needs for those positions. Instead they need to shore up the offensive line. Filling Holes on the Offensive LineOptions at tackle in the third-round range figure to include Oklahoma’s Donald Stephenson, California’s Mitchell Schwartz, Iowa State’s Kelechi Osemele and Jeff Allen of Illinois.Another lineman on the Redskins’ radar seems to be Virginia Tech’s Jaymes Brooks, a mid- to late-round prospect who played guard in the Hokies’ zone-blocking scheme but is believed to have the ability also to play center. Picking up Safeties and CornerbacksOn the defensive side of the ball, the Skins need to be stronger at the safety and cornerback positions. The team, according to a person with knowledge of the situation, has had contact with Syracuse safety Phillip Thomas, a projected mid-round player. Thomas last season intercepted six passes, which ranked sixth nationally.
Other safeties expected to be available in the third through fifth rounds include Antonio Allen of South Carolina, Michigan State’s Trenton Robinson, Aaron Henry of Wisconsin and Janzen Jackson of McNeese State.Talented corners are likely to be available for the Redskins, who have a third-round pick, two fourth-rounders, a fifth, a sixth and a seventh. But the question for a team that also has needs at other positions is how long can they afford to wait before taking one.One third- or fourth-round option could be Arizona State’s Omar Bolden. He established himself as one of college football’s top corners in 2010 after he earned all-Pacific-12 Conference first-team honors. He missed last season with a torn ACL.Bolden, fully recovered, clocked a 4.51-second 40-yard dash at his school’s pro day last month and possesses the talent of a higher-round pick. But because of his injury history, he isn’t expected to hear his name called until the middle of the draft.Oklahoma’s Jamell Fleming, Furman’s Ryan Steed, West Virginia’s Keith Tandy, Iowa State’s Leonard Johnson and Texas A&M’s Coryell Judie also lead a group of cornerbacks projected for selection in the middle rounds.It should be an exciting draft and hopefully these changes can help end the Redskins woeful record under coach Mike Shanahan.
Now that it is virtually certain that the Redskins will take Heisman Trophy winner Robert Griffin III with their second round draft pick, the question remains what needs will they try to fulfill in the later rounds. The Skins used free agency to sign wide receivers Pierre Garcon and Josh Morgan and they used the franchise tag to retain tight end Fred Davis. So there are less needs for those positions. Instead they need to shore up the offensive line. Filling Holes on the Offensive LineOptions at tackle in the third-round range figure to include Oklahoma’s Donald Stephenson, California’s Mitchell Schwartz, Iowa State’s Kelechi Osemele and Jeff Allen of Illinois.Another lineman on the Redskins’ radar seems to be Virginia Tech’s Jaymes Brooks, a mid- to late-round prospect who played guard in the Hokies’ zone-blocking scheme but is believed to have the ability also to play center. Picking up Safeties and CornerbacksOn the defensive side of the ball, the Skins need to be stronger at the safety and cornerback positions. The team, according to a person with knowledge of the situation, has had contact with Syracuse safety Phillip Thomas, a projected mid-round player. Thomas last season intercepted six passes, which ranked sixth nationally.
Other safeties expected to be available in the third through fifth rounds include Antonio Allen of South Carolina, Michigan State’s Trenton Robinson, Aaron Henry of Wisconsin and Janzen Jackson of McNeese State.Talented corners are likely to be available for the Redskins, who have a third-round pick, two fourth-rounders, a fifth, a sixth and a seventh. But the question for a team that also has needs at other positions is how long can they afford to wait before taking one.One third- or fourth-round option could be Arizona State’s Omar Bolden. He established himself as one of college football’s top corners in 2010 after he earned all-Pacific-12 Conference first-team honors. He missed last season with a torn ACL.Bolden, fully recovered, clocked a 4.51-second 40-yard dash at his school’s pro day last month and possesses the talent of a higher-round pick. But because of his injury history, he isn’t expected to hear his name called until the middle of the draft.Oklahoma’s Jamell Fleming, Furman’s Ryan Steed, West Virginia’s Keith Tandy, Iowa State’s Leonard Johnson and Texas A&M’s Coryell Judie also lead a group of cornerbacks projected for selection in the middle rounds.It should be an exciting draft and hopefully these changes can help end the Redskins woeful record under coach Mike Shanahan.
The Pro’s and Con’s of Proposed Principal Reduction Program
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In another attemptto fix the ailing housing market, the White House and Congressional Democratsare touting the benefits of a plan under which Fannie Mae and Freddie Mac wouldadopt a principal reduction program. But one man is questioning the wisdom ofthis approach. As we weigh the value of this proposal, we examine this man’s objections,because Ed DeMarco is acting director of the Federal Housing Finance Agency,and his opinion matters.For some time theWhite House and Democrats in Congress have been urging the adoption of thisapproach insisting that it will save billions and get the market movingagain. DeMarco has stood hisground. But he may be wavering.Writing in Marketwatch on April 10, Steve Goldsteinsummarized DeMarco’s objections.It’s costly. Although the ObamaAdministration claims it will save Freddie and Fannie $1.7 billion but thatcomes at a significant cost. The Treasury Department would pay out $3.8 billionin incentives for the principal reductions, meaning that taxpayers would footat $2.1 billion bill. Some who have paid their mortgages on time, and have seenthe value of their properties fall because of errant neighbors, may bereluctant to pay additional taxes to keep those neighbors in their homes.It’s only a band-aid – and a small one atthat. This program would help about 691,000 borrowers – out of about 11million underwater homeowners.We should use the programs that are alreadyin place such as interest rate reduction and extending the terms of themortgage instead of scattering our fire.How this playsout, remains to be seen.One question wemight ask is why are so many government programs aimed at fixing the housingcrisis failing so miserably?Another question:do the politicians just want to look as if they are actually trying to fix theproblem in an election year? Or are they really trying to fix the root causes,help underwater homeowners get back on their feet so they can responsibly paywhat they owe, stabilize housing prices, and revitalize communities? Let us know yourthoughts on these issues.
In another attemptto fix the ailing housing market, the White House and Congressional Democratsare touting the benefits of a plan under which Fannie Mae and Freddie Mac wouldadopt a principal reduction program. But one man is questioning the wisdom ofthis approach. As we weigh the value of this proposal, we examine this man’s objections,because Ed DeMarco is acting director of the Federal Housing Finance Agency,and his opinion matters.For some time theWhite House and Democrats in Congress have been urging the adoption of thisapproach insisting that it will save billions and get the market movingagain. DeMarco has stood hisground. But he may be wavering.Writing in Marketwatch on April 10, Steve Goldsteinsummarized DeMarco’s objections.It’s costly. Although the ObamaAdministration claims it will save Freddie and Fannie $1.7 billion but thatcomes at a significant cost. The Treasury Department would pay out $3.8 billionin incentives for the principal reductions, meaning that taxpayers would footat $2.1 billion bill. Some who have paid their mortgages on time, and have seenthe value of their properties fall because of errant neighbors, may bereluctant to pay additional taxes to keep those neighbors in their homes.It’s only a band-aid – and a small one atthat. This program would help about 691,000 borrowers – out of about 11million underwater homeowners.We should use the programs that are alreadyin place such as interest rate reduction and extending the terms of themortgage instead of scattering our fire.How this playsout, remains to be seen.One question wemight ask is why are so many government programs aimed at fixing the housingcrisis failing so miserably?Another question:do the politicians just want to look as if they are actually trying to fix theproblem in an election year? Or are they really trying to fix the root causes,help underwater homeowners get back on their feet so they can responsibly paywhat they owe, stabilize housing prices, and revitalize communities? Let us know yourthoughts on these issues.
We Can't All Be Donald Trump - And That's Okay
To contact us Click HERE
When consideringthe many obstacles on the road to success, you might overlook “perfectionism”,but you shouldn’t. This sneaky stumbling block can stop you from even beginningyour journey.Nancy’sColasurdo’s excellent article, “We Can’t All be Shakespeare- And That’s Okay”,takes a look at a ‘defeat mechanism’ that can stop us from even trying toaccomplish our dreams. And as weall know, if you don’t begin your journey, you certainly won’t get there.As a coachColasurdo has found that clients “often feel that they have to be perfect oraspire to be at the level of someone they feel is at the top of theprofession.” Looking at the end game, some feel that such an achievement isimpossible for them. They forget the many steps that a leader took to achievehis or her goals. And they alsoforget that each one’s way is individual. How might thisapply to real estate investing? What if a would-be investor chose Donald Trumpas a model, and said, “What’s the point of buying a small rental property, ortwo or even three? That’s nothingto Donald Trump.” But just becauseyour journey may be different, that doesn’t mean you shouldn’t take it. Whenlooking at others’ success stories – remember, their starting point may bedifferent, they have a different path to take, but the important factor toemulate is the mindset that looks for opportunities small and big and makes themost of them one by one.Donald Trumplearned the real estate business first hand from his dad, Frederick, asuccessful developer in Queens and Brooklyn. When ‘the Donald’ wanted to invest in Manhattan, his dadtried to discourage him. But Trump had a vision of what he could accomplish, hefelt he understood the risks, and was determined to go for it. His mid-70’s transformation of theCommodore Hotel into The Grand Hyatt, not only made him a fortune and set him ona road to tremendous success, but it also completely revitalized a rundown areaof Manhattan.Few of us beginwith Trump’s assets or a dad like his for a mentor. Instead, we have to learn thebusiness on our own from the ground up. But we do have the ability to adopt theTrump mindset – the approach of a champion. What does itentail? Doing your homework, understanding the finances, taking well-consideredrisks, planning every step, being prepared for challenges and dealing with them,capitalizing on success, learning from failures. And to quote Winston Churchill, “Never, never, never, never giveup.”And little bylittle, step-by-step you will build your real estate business, write your ownstory, improve neighborhoods and achieve success your way. And you’ll be gladyou didn’t wait to become perfect before beginning your journey.
When consideringthe many obstacles on the road to success, you might overlook “perfectionism”,but you shouldn’t. This sneaky stumbling block can stop you from even beginningyour journey.Nancy’sColasurdo’s excellent article, “We Can’t All be Shakespeare- And That’s Okay”,takes a look at a ‘defeat mechanism’ that can stop us from even trying toaccomplish our dreams. And as weall know, if you don’t begin your journey, you certainly won’t get there.As a coachColasurdo has found that clients “often feel that they have to be perfect oraspire to be at the level of someone they feel is at the top of theprofession.” Looking at the end game, some feel that such an achievement isimpossible for them. They forget the many steps that a leader took to achievehis or her goals. And they alsoforget that each one’s way is individual. How might thisapply to real estate investing? What if a would-be investor chose Donald Trumpas a model, and said, “What’s the point of buying a small rental property, ortwo or even three? That’s nothingto Donald Trump.” But just becauseyour journey may be different, that doesn’t mean you shouldn’t take it. Whenlooking at others’ success stories – remember, their starting point may bedifferent, they have a different path to take, but the important factor toemulate is the mindset that looks for opportunities small and big and makes themost of them one by one.Donald Trumplearned the real estate business first hand from his dad, Frederick, asuccessful developer in Queens and Brooklyn. When ‘the Donald’ wanted to invest in Manhattan, his dadtried to discourage him. But Trump had a vision of what he could accomplish, hefelt he understood the risks, and was determined to go for it. His mid-70’s transformation of theCommodore Hotel into The Grand Hyatt, not only made him a fortune and set him ona road to tremendous success, but it also completely revitalized a rundown areaof Manhattan.Few of us beginwith Trump’s assets or a dad like his for a mentor. Instead, we have to learn thebusiness on our own from the ground up. But we do have the ability to adopt theTrump mindset – the approach of a champion. What does itentail? Doing your homework, understanding the finances, taking well-consideredrisks, planning every step, being prepared for challenges and dealing with them,capitalizing on success, learning from failures. And to quote Winston Churchill, “Never, never, never, never giveup.”And little bylittle, step-by-step you will build your real estate business, write your ownstory, improve neighborhoods and achieve success your way. And you’ll be gladyou didn’t wait to become perfect before beginning your journey.
Private Equity Investors Buying Residential Investment Properties
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It seems that the hedge fund and private equity crowd has finally figured out the returns that are available in the residential rental market at the moment: http://tinyurl.com/7vd27vv
The principles that we have been extolling for several years are now becoming clear to the denizens of wall street.
Rental properties provide a hard asset with a solid return at historically low prices with room for appreciation growth. They are definitely an opportunity ripe for the taking.
The principles that we have been extolling for several years are now becoming clear to the denizens of wall street.
Rental properties provide a hard asset with a solid return at historically low prices with room for appreciation growth. They are definitely an opportunity ripe for the taking.
7 Temmuz 2012 Cumartesi
What’s in Your Wallet?
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I had an interesting conversation this morning with an instructor at my gym. A while back, she left her purse sitting on the console of her car while she worked out. Sadly, the worst happened, and when she returned to her car, the window was smashed and her purse was gone. Turned out the day her purse was stolen, a number of gyms had the same bandits go through their parking lots. First point: Never ever leave an item of value visible in your car.
Bad right? Well sadly that wasn’t the worst. After cancelling credit cards and closing out accounts, she thought she was safe and put the incident out of her mind. Fast forward to her vacation in Costa Rica. She goes to withdraw money from her new checking account via the ATM. The account was cleaned out and running on overdraft!
She had just made a huge deposit prior to leaving for the trip, and found out she was $10,000 poorer than when she left.
Turns out she had her social security card in her wallet the day her purse was stolen. This is the worst that can happen—well it’s the best if you happen to be a thief… But the worst for the rest of us. The thief, had her social security number and her driver’s license, so he was able to go to her bank and access her new accounts!
She put a lock down on her credit, or else the thief could have opened credit cards in her name. I actually had a client who had his wallet with social security card stolen and the thief bought a car within hours!!!! By the time he locked down his credit, he was the owner of a new car. A car that he never saw and never had a single payment made, and ended up ruining by borrower’s chances of buying a new home.
Identity theft is rampant and very lucrative for thieves. Second Point: Never keep your social security card in your wallet. This would also apply to paystubs or other documentation that might contain your social security number. The combination of social security number, address, and birth date opens you up to every type of credit abuse and identity theft. With tax time upon us, many people have files in their car with this information—get it out of the car immediately, and put it in a locked filing cabinet.
Sadly up until a few years ago, social security numbers were widely used for identification purposes, and many of these old records are ending up in landfills. It makes sense to have an alert on your credit, so you know every time your credit is accessed.
Car thieves aren’t the only ones to watch out for. If you are in the habit of leaving items in your home out for future filing, think about people coming into your home. Do you have teenagers with friends who visit? How about cleaning people, carpet cleaners, handymen? Guard your social security number like you guard your other valuables. This may be your most valuable possession of all! Untangling true identity theft can take hundreds of hours and be an ongoing battle, once your social security number is out. They literally sell it and re-sell it, so after you clean it up, the nightmare is not necessarily over. And as my instructor at the gym found out, your social security number is with you for life; it’s not an option to change it due to identity theft.
As a mortgage lender we deal with credit for better or worse on a daily basis. Third Point: Your good credit truly is your most valuable possession. Without good credit, you can’t finance, a car, a home, or even get a credit card. Good credit isn’t good enough. It used to a fico of 700 was the gold standard for superior credit. We are now seeing investors who won’t lend under 780 in specific circumstances. If you have any questions on identity theft or on how to maximize your credit score, please call The Hedges Mortgage Group at Prime Lending at 919 961-6915.
I had an interesting conversation this morning with an instructor at my gym. A while back, she left her purse sitting on the console of her car while she worked out. Sadly, the worst happened, and when she returned to her car, the window was smashed and her purse was gone. Turned out the day her purse was stolen, a number of gyms had the same bandits go through their parking lots. First point: Never ever leave an item of value visible in your car.Bad right? Well sadly that wasn’t the worst. After cancelling credit cards and closing out accounts, she thought she was safe and put the incident out of her mind. Fast forward to her vacation in Costa Rica. She goes to withdraw money from her new checking account via the ATM. The account was cleaned out and running on overdraft!
She had just made a huge deposit prior to leaving for the trip, and found out she was $10,000 poorer than when she left.
Turns out she had her social security card in her wallet the day her purse was stolen. This is the worst that can happen—well it’s the best if you happen to be a thief… But the worst for the rest of us. The thief, had her social security number and her driver’s license, so he was able to go to her bank and access her new accounts!
She put a lock down on her credit, or else the thief could have opened credit cards in her name. I actually had a client who had his wallet with social security card stolen and the thief bought a car within hours!!!! By the time he locked down his credit, he was the owner of a new car. A car that he never saw and never had a single payment made, and ended up ruining by borrower’s chances of buying a new home.
Identity theft is rampant and very lucrative for thieves. Second Point: Never keep your social security card in your wallet. This would also apply to paystubs or other documentation that might contain your social security number. The combination of social security number, address, and birth date opens you up to every type of credit abuse and identity theft. With tax time upon us, many people have files in their car with this information—get it out of the car immediately, and put it in a locked filing cabinet.
Sadly up until a few years ago, social security numbers were widely used for identification purposes, and many of these old records are ending up in landfills. It makes sense to have an alert on your credit, so you know every time your credit is accessed.
Car thieves aren’t the only ones to watch out for. If you are in the habit of leaving items in your home out for future filing, think about people coming into your home. Do you have teenagers with friends who visit? How about cleaning people, carpet cleaners, handymen? Guard your social security number like you guard your other valuables. This may be your most valuable possession of all! Untangling true identity theft can take hundreds of hours and be an ongoing battle, once your social security number is out. They literally sell it and re-sell it, so after you clean it up, the nightmare is not necessarily over. And as my instructor at the gym found out, your social security number is with you for life; it’s not an option to change it due to identity theft.
As a mortgage lender we deal with credit for better or worse on a daily basis. Third Point: Your good credit truly is your most valuable possession. Without good credit, you can’t finance, a car, a home, or even get a credit card. Good credit isn’t good enough. It used to a fico of 700 was the gold standard for superior credit. We are now seeing investors who won’t lend under 780 in specific circumstances. If you have any questions on identity theft or on how to maximize your credit score, please call The Hedges Mortgage Group at Prime Lending at 919 961-6915.
Market Update -- For the week of April 23, 2012
To contact us Click HERE
QUOTE OF THE WEEK..."A great pleasure in life is doing what people say you cannot do." --Walter Bagehot, English businessman, essayist and journalist
INFO THAT HITS US WHERE WE LIVE... People say home building can't recover any time soon. Yet the signs continue to mount that a recovery is underway. Off 5.8% for March, Housing Starts are up 10.3% from a year ago, to a 654,000 unit annual rate. The monthly drop came from volatile multi-family starts, while single-family units were down only 0.2%. And the number of homes under construction was up for the seventh month in a row! Even Building Permits are up 30.1% versus a year ago. It's early in the home building recovery, but some are saying we could get to 1.5 million units by 2016.
More signs the housing market is recovering slowly but surely came with March Existing Home Sales. Although off 2.6% for the month, at 4.48 million units, they're up 5.2% over a year ago. In addition, the median price rose in March to $163,800 and is up 2.5% over a year ago, while the months' supply of inventory stayed at 6.3. Frankly, no one expects a big bump in home sales soon, but the market is definitely beginning to heal, as it's obviously a great time to buy.
BUSINESS TIP OF THE WEEK... Take time to think. Get away from the day's chaos and ponder a while. Don't worry if a great idea doesn't come right away. Back on the job, your subconscious will continue to work.
But other things economic were downers. Both the Empire State and Philadelphia Fed manufacturing indexes dropped for the month, reflecting a slowdown in growth. Industrial production was flat and manufacturing capacity edged down, both worse than expected. Worse than that, weekly unemployment claims headed up to 386,000, while continuing claims hit 3.30 million.
For the week, the Dow ended UP 1.4%, at 13029; the S&P 500 closed UP 0.6%, to 1379; and the Nasdaq edged down 0.4%, to 3000.
There was enough political and economic turbulence coming out of Europe to keep investors in the safe haven of bonds. This held prices up, with the FNMA 3.5% bond finishing the week UP .04, at $103.19. Inflation fears were kept in check as doubts about the economic recovery continue. So national average mortgage rates held steady, still at historically low levels, as reported in Freddie Mac's weekly Primary Mortgage Market Survey.
DID YOU KNOW?... CPI inflation is more widely reported, but the GDP Price Deflator is often the inflation measure of choice for economists. It takes a more comprehensive look at price levels for a more precise read on inflation.
The Fed meets Wednesday and although no one expects the FOMC Rate Decision to change anything, we'll have a policy statement giving their opinion on the economy. For hard numbers, we'll have to wait until Friday for Q1 GDP-Advanced, projected to show economic growth slowing.
Date Time (ET) Release For Consensus Prior Impact
Tu Apr 24 10:00 Consumer Confidence Apr 69.5 70.2 Moderate
Tu Apr 24 10:00 New Home Sales Mar 320K 313K Moderate
W Apr 25 08:30 Durable Goods Orders Mar -1.9% 2.4% Moderate
W Apr 25 10:30 Crude Inventories 04/21 NA 3.856M Moderate
W Apr 25 12:30 FOMC Rate Decision 04/25 0%-0.25% 0%-0.25% HIGH
Th Apr 26 08:30 Initial Unemployment Claims 04/21 373K 386K Moderate
Th Apr 26 08:30 Continuing Unemployment Claims 04/14 3.300M 3.297M Moderate
Th Apr 26 10:00 Pending Home Sales Mar 0.5% -0.5% Moderate
F Apr 27 08:30 GDP-Advance Q1 2.6% 3.0% Moderate
F Apr 27 08:30 GDP Price Deflator-Advance Q1 2.2% 0.9% Moderate
FApr 27 08:30 Employment Cost Index Q1 0.5% 0.4% HIGH
F Apr 27 09:55 Univ. of Michigan Consumer Sentiment-Final Apr 75.7 75.7 Moderate
Forecasting Federal Reserve policy changes in coming months... We'll see if this week's Fed meeting gives any indication of when they'll change their super low Funds Rate policy. No one sees a hike any time soon. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
Current Fed Funds Rate: 0%–0.25%
After FOMC meeting on: Consensus
Jun 20 0%–0.25%
Jul 31 0%–0.25%
Sep 12 0%–0.25%
Probability of change from current policy:
After FOMC meeting on: Consensus
Jun 20 <1%
Jul 31 <1%
Sep 12 <1%
INFO THAT HITS US WHERE WE LIVE... People say home building can't recover any time soon. Yet the signs continue to mount that a recovery is underway. Off 5.8% for March, Housing Starts are up 10.3% from a year ago, to a 654,000 unit annual rate. The monthly drop came from volatile multi-family starts, while single-family units were down only 0.2%. And the number of homes under construction was up for the seventh month in a row! Even Building Permits are up 30.1% versus a year ago. It's early in the home building recovery, but some are saying we could get to 1.5 million units by 2016.
More signs the housing market is recovering slowly but surely came with March Existing Home Sales. Although off 2.6% for the month, at 4.48 million units, they're up 5.2% over a year ago. In addition, the median price rose in March to $163,800 and is up 2.5% over a year ago, while the months' supply of inventory stayed at 6.3. Frankly, no one expects a big bump in home sales soon, but the market is definitely beginning to heal, as it's obviously a great time to buy.
BUSINESS TIP OF THE WEEK... Take time to think. Get away from the day's chaos and ponder a while. Don't worry if a great idea doesn't come right away. Back on the job, your subconscious will continue to work.
Review of Last Week
UP AND DOWN... Markets went in both directions last week as the S&P 500, a broad market measure, clung to a fractional 0.6% gain, its first move upward in three weeks. Traders' moods were also up and down, as the economic data rolled in. The up mood was fueled by the strong earnings reports of a wide range of players, from McDonald's to GE to Microsoft. Also up were March Retail Sales, gaining a better than expected 0.8% and up 6.5% over a year ago!But other things economic were downers. Both the Empire State and Philadelphia Fed manufacturing indexes dropped for the month, reflecting a slowdown in growth. Industrial production was flat and manufacturing capacity edged down, both worse than expected. Worse than that, weekly unemployment claims headed up to 386,000, while continuing claims hit 3.30 million.
For the week, the Dow ended UP 1.4%, at 13029; the S&P 500 closed UP 0.6%, to 1379; and the Nasdaq edged down 0.4%, to 3000.
There was enough political and economic turbulence coming out of Europe to keep investors in the safe haven of bonds. This held prices up, with the FNMA 3.5% bond finishing the week UP .04, at $103.19. Inflation fears were kept in check as doubts about the economic recovery continue. So national average mortgage rates held steady, still at historically low levels, as reported in Freddie Mac's weekly Primary Mortgage Market Survey.
DID YOU KNOW?... CPI inflation is more widely reported, but the GDP Price Deflator is often the inflation measure of choice for economists. It takes a more comprehensive look at price levels for a more precise read on inflation.
This Week’s Forecast
NEW HOME SALES, PENDING HOME SALES AND THE FED... We'll have more reads on the housing market, with Tuesday's New Home Sales forecast to be up slightly for March. Thursday's Pending Home Sales, measuring signed contracts in March for existing homes, are expected up a bit, indicating sales a few months out.The Fed meets Wednesday and although no one expects the FOMC Rate Decision to change anything, we'll have a policy statement giving their opinion on the economy. For hard numbers, we'll have to wait until Friday for Q1 GDP-Advanced, projected to show economic growth slowing.
The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.Economic Calendar for the Week of Apr 23 – Apr 27
Date Time (ET) Release For Consensus Prior Impact
Tu Apr 24 10:00 Consumer Confidence Apr 69.5 70.2 Moderate
Tu Apr 24 10:00 New Home Sales Mar 320K 313K Moderate
W Apr 25 08:30 Durable Goods Orders Mar -1.9% 2.4% Moderate
W Apr 25 10:30 Crude Inventories 04/21 NA 3.856M Moderate
W Apr 25 12:30 FOMC Rate Decision 04/25 0%-0.25% 0%-0.25% HIGH
Th Apr 26 08:30 Initial Unemployment Claims 04/21 373K 386K Moderate
Th Apr 26 08:30 Continuing Unemployment Claims 04/14 3.300M 3.297M Moderate
Th Apr 26 10:00 Pending Home Sales Mar 0.5% -0.5% Moderate
F Apr 27 08:30 GDP-Advance Q1 2.6% 3.0% Moderate
F Apr 27 08:30 GDP Price Deflator-Advance Q1 2.2% 0.9% Moderate
FApr 27 08:30 Employment Cost Index Q1 0.5% 0.4% HIGH
F Apr 27 09:55 Univ. of Michigan Consumer Sentiment-Final Apr 75.7 75.7 Moderate
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months... We'll see if this week's Fed meeting gives any indication of when they'll change their super low Funds Rate policy. No one sees a hike any time soon. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
Current Fed Funds Rate: 0%–0.25%
After FOMC meeting on: Consensus
Jun 20 0%–0.25%
Jul 31 0%–0.25%
Sep 12 0%–0.25%
Probability of change from current policy:
After FOMC meeting on: Consensus
Jun 20 <1%
Jul 31 <1%
Sep 12 <1%
Six ways to Make Your Garden Spring-ready– PLUS 5 things to consider before renting your home
To contact us Click HERE
RATE ALERT: Economic conditions have caused interest rates to improve significantly. Please reply to this email ASAP to see if you can benefit.
1. Lawn Care. Rake up all the "thatch"–that's the dried dead grass and weeds mingling with the live grass. Thatch prevents water and nutrients from getting into your lawn and stops new seeds from taking root. Next, set your mower blades high for the first mow, to trim off just the tops. Lastly, if the lawn needs feeding, spread fertilizer, using one with a weed killer if it's necessary.
2. Prune Trees and Bushes. Trim all limbs and branches that were broken or damaged during the Winter.
3. Weed. Take out weeds before they go to seed. Some weeds produce up to 10,000 seeds, so getting rid of them now saves you from dealing with lots more later on. Tip: weeding is much easier when the soil is wet.
4. Spread Compost or Manure. When the soil has dried sufficiently, work in some manure or compost.
5. Check for Aphids. As new spring growth comes in, look for aphids on the underside of leaves. If you see them, find out what to do from the National Sustainable Agriculture Information Service by clicking here.
6. Brighten Up. Look for places to add some bright new flowers. Perennials that have had at least a full growing season can be worth the extra cost. They're heartier and more likely to survive.
2. Homework. Talk to rental agents and property managers to see what your rental rate would be. Then calculate how that income would cover your monthly obligations–mortgage, property taxes, insurance, maintenance, management costs. Ask the experts if there are any rent- or eviction-control ordinances. These laws can sometimes make it very expensive to evict even non-paying tenants.
3. Screen Tenants. If you decide to rent, consider hiring a rental agent or property manager with a strict tenant screening process. Network with everyone you know. Renting to a friend or a friend-of-a-friend can boost your chances of a good experience.
4. Tenant-Proof. Minimize the cost of tenant damage by replacing carpet with tile, nice lighting fixtures and window treatments with more ordinary options and high-end appliances with bargains from Craigslist. Of course, if you're renting a luxury home at a premium, you'll have to keep those high-end features tenants expect.
5. Think About a Lease-Option. Today, a lease with an option to buy can be great for everyone. You might get more money, and the tenant gets time to decide. And lease-option tenants tend to take better care of your home.
If you want to know more about home financing, the housing market in your area or have any other related questions, please call or email us. We're always here to help.... Have a great day!
PS Experts say the housing market appears to be turning around in many places. Mortgage rates are at historic lows and home prices are very affordable. So this could be a great time to upsize, downsize or refinance. Please call or email us now to discuss your situation.
6 ways to make your garden Spring-ready–
PLUS 5 things to consider before renting your home
Now is the time of year to let your garden "Spring" to life!1. Lawn Care. Rake up all the "thatch"–that's the dried dead grass and weeds mingling with the live grass. Thatch prevents water and nutrients from getting into your lawn and stops new seeds from taking root. Next, set your mower blades high for the first mow, to trim off just the tops. Lastly, if the lawn needs feeding, spread fertilizer, using one with a weed killer if it's necessary.
2. Prune Trees and Bushes. Trim all limbs and branches that were broken or damaged during the Winter.
3. Weed. Take out weeds before they go to seed. Some weeds produce up to 10,000 seeds, so getting rid of them now saves you from dealing with lots more later on. Tip: weeding is much easier when the soil is wet.
4. Spread Compost or Manure. When the soil has dried sufficiently, work in some manure or compost.
5. Check for Aphids. As new spring growth comes in, look for aphids on the underside of leaves. If you see them, find out what to do from the National Sustainable Agriculture Information Service by clicking here.
6. Brighten Up. Look for places to add some bright new flowers. Perennials that have had at least a full growing season can be worth the extra cost. They're heartier and more likely to survive.
THINKING THROUGH RENTING ISSUES
If you're considering renting your home, here are five things to think about:
1. Current Condition. If you've just spent money renovating, you might not want to risk having a tenant trash those new upgrades. If you go ahead anyway, collect a healthy deposit and a rent that protects your investment. On the other hand, if your home needs fixing, rent it the way it is, then upgrade to sell it.2. Homework. Talk to rental agents and property managers to see what your rental rate would be. Then calculate how that income would cover your monthly obligations–mortgage, property taxes, insurance, maintenance, management costs. Ask the experts if there are any rent- or eviction-control ordinances. These laws can sometimes make it very expensive to evict even non-paying tenants.
3. Screen Tenants. If you decide to rent, consider hiring a rental agent or property manager with a strict tenant screening process. Network with everyone you know. Renting to a friend or a friend-of-a-friend can boost your chances of a good experience.
4. Tenant-Proof. Minimize the cost of tenant damage by replacing carpet with tile, nice lighting fixtures and window treatments with more ordinary options and high-end appliances with bargains from Craigslist. Of course, if you're renting a luxury home at a premium, you'll have to keep those high-end features tenants expect.
5. Think About a Lease-Option. Today, a lease with an option to buy can be great for everyone. You might get more money, and the tenant gets time to decide. And lease-option tenants tend to take better care of your home.
If you want to know more about home financing, the housing market in your area or have any other related questions, please call or email us. We're always here to help.... Have a great day!
PS Experts say the housing market appears to be turning around in many places. Mortgage rates are at historic lows and home prices are very affordable. So this could be a great time to upsize, downsize or refinance. Please call or email us now to discuss your situation.
Market Update For the week of May 14, 2012
To contact us Click HERE
QUOTE OF THE WEEK..."I've been lucky. Opportunities don't often come along. So, when they do, you have to grab them." --Audrey Hepburn
INFO THAT HITS US WHERE WE LIVE... There are more and more opportunities to grab in the housing market. After almost six years of price declines, we're finally seeing signs of stability, as home prices rose in the first quarter in more than half the U.S. metro areas tracked by the National Association of Realtors (NAR). The median price for existing homes sold was higher than a year ago in 51% of the areas -- 74 of 146 metros.
That's a nice turnaround from the fourth quarter of last year when median prices increased in just 29 of 149 metros. The small supply of lower-priced homes in many places should provide a price boost, according to the NAR's chief economist, who added, "this is good news for many sellers who wish to list now, or for those waiting for prices to improve." Home sales were UP 4.7% over the prior quarter and UP 5.3% from the first quarter a year ago.
BUSINESS TIP OF THE WEEK... Satisfied customers are your strongest source of leads. When clients have an experience worth talking about, the value of the referrals can be enormous.
>> Review of Last Week
HONEY FOR THE BEARS... The only investors who got a sweet treat last week were the bears who expect to see stocks go down. European worries and a big loss at a big bank sent the Dow on its biggest weekly dive in five months. JPMorgan revealed a pretax trading loss of $2 billion, partially offset by $1 billion in gains. The loss comes at a bad time, when banks are fighting increased regulations, which they and many economists say are unnecessary. Across the pond, a new French Socialist President and Greece's failure to form a coalition government put austerity plans in doubt.
Weekly initial jobless claims remain elevated but not growing, staying just below 370,000. On the upside, there was a surprise gain in the University of Michigan Consumer Sentiment Survey. This was joined by an unexpected 0.2% dip in overall wholesale prices (PPI), with Core PPI, excluding food and energy, up just 0.2%, as expected.
For the week, the Dow ended down 1.7%, at 12821; the S&P 500 closed down 1.1%, to 1353; and the Nasdaq went down 0.8%, to 2934.
Global economic worries, including a slowing of China's economic growth, inspired this week's flight to safety into bonds. The FNMA 3.5% bond we watch finished the week unchanged, at $104.01. In Freddie Mac's weekly survey, national average mortgage rates hit record lows for certain types of mortgages for the second week in a row. This was due to the strength in mortgage bond prices due to the continued economic uncertainty.
DID YOU KNOW?... Investors see Building Permits as an indicator of consumer confidence. They watch monthly and yearly trends for signs of weakness that might suggest a contraction in consumer spending.
>> This Week’s Forecast
CONSUMER PRICES AND SPENDING, HOME BUILDING AND A PEEK INTO THE FED... Tuesday we see how strongly consumers are spending, with April Retail Sales expected up, but not by as much as last month. Prices should hold, as the overall Consumer Price Index (CPI) is forecast flat, with "core" prices (excluding food and energy) up just 0.2%.
We'll also look into home building, with April Housing Starts predicted up a little, but Building Permits (see above) down a bit. Wednesday's FOMC Minutes will give us a closer look into what happened at the last Fed meeting.
>> The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
Economic Calendar for the Week of May 14 – May 18
Date Time (ET) Release For Consensus Prior Impact
Tu May 15 08:30 Retail Sales Apr 0.2% 0.8% HIGH
Tu May 15 08:30 Retail Sales ex-auto Apr 0.2% 0.8% HIGH
Tu May 15 08:30 Consumer Price Index (CPI) Apr 0.0% 0.3% HIGH
Tu May 15 08:30 Core CPI Apr 0.2% 0.2% HIGH
Tu May 15 08:30 Empire State Mfg May 8.4 6.6 Moderate
Tu May 15 10:00 Business Inventories Mar 0.3% 0.6% Moderate
W May 16 08:30 Housing Starts Apr 680K 654K Moderate
W May 16 08:30 Building Permits Apr 730K 747K Moderate
W May 16 09:15 Industrial Production Apr 0.5% 0.0% Moderate
W May 16 09:15 Capacity Utilization Apr 79.0% 78.6% Moderate
W May 16 10:30 Crude Inventories 05/12 NA 3.652M Moderate
W May 16 14:00 FOMC Minutes 04/25 NA NA HIGH
Th May 17 08:30 Initial Unemployment Claims 05/12 365K 367K Moderate
Th May 17 08:30 Continuing Unemployment Claims 05/05 3.250M 3.229M Moderate
Th May 17 10:00 Philadelphia Fed Mfg May 8.8 8.5 HIGH
Th May 17 10:00 Leading Economic Indicators (LEI) Apr 0.2% 0.3% Moderate
>> Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months... The Fed has stated its goal is to keep rates super low well into next year. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
Current Fed Funds Rate: 0%–0.25%
After FOMC meeting on: Consensus
Jun 20 0%–0.25%
Jul 31 0%–0.25%
Sep 12 0%–0.25%
Probability of change from current policy:
After FOMC meeting on: Consensus
Jun 20 <1%
Jul 31 <1%
Sep 12 <1%
UIE
QUOTE OF THE WEEK..."I've been lucky. Opportunities don't often come along. So, when they do, you have to grab them." --Audrey Hepburn
INFO THAT HITS US WHERE WE LIVE... There are more and more opportunities to grab in the housing market. After almost six years of price declines, we're finally seeing signs of stability, as home prices rose in the first quarter in more than half the U.S. metro areas tracked by the National Association of Realtors (NAR). The median price for existing homes sold was higher than a year ago in 51% of the areas -- 74 of 146 metros.
That's a nice turnaround from the fourth quarter of last year when median prices increased in just 29 of 149 metros. The small supply of lower-priced homes in many places should provide a price boost, according to the NAR's chief economist, who added, "this is good news for many sellers who wish to list now, or for those waiting for prices to improve." Home sales were UP 4.7% over the prior quarter and UP 5.3% from the first quarter a year ago.
BUSINESS TIP OF THE WEEK... Satisfied customers are your strongest source of leads. When clients have an experience worth talking about, the value of the referrals can be enormous.
>> Review of Last Week
HONEY FOR THE BEARS... The only investors who got a sweet treat last week were the bears who expect to see stocks go down. European worries and a big loss at a big bank sent the Dow on its biggest weekly dive in five months. JPMorgan revealed a pretax trading loss of $2 billion, partially offset by $1 billion in gains. The loss comes at a bad time, when banks are fighting increased regulations, which they and many economists say are unnecessary. Across the pond, a new French Socialist President and Greece's failure to form a coalition government put austerity plans in doubt.
Weekly initial jobless claims remain elevated but not growing, staying just below 370,000. On the upside, there was a surprise gain in the University of Michigan Consumer Sentiment Survey. This was joined by an unexpected 0.2% dip in overall wholesale prices (PPI), with Core PPI, excluding food and energy, up just 0.2%, as expected.
For the week, the Dow ended down 1.7%, at 12821; the S&P 500 closed down 1.1%, to 1353; and the Nasdaq went down 0.8%, to 2934.
Global economic worries, including a slowing of China's economic growth, inspired this week's flight to safety into bonds. The FNMA 3.5% bond we watch finished the week unchanged, at $104.01. In Freddie Mac's weekly survey, national average mortgage rates hit record lows for certain types of mortgages for the second week in a row. This was due to the strength in mortgage bond prices due to the continued economic uncertainty.
DID YOU KNOW?... Investors see Building Permits as an indicator of consumer confidence. They watch monthly and yearly trends for signs of weakness that might suggest a contraction in consumer spending.
>> This Week’s Forecast
CONSUMER PRICES AND SPENDING, HOME BUILDING AND A PEEK INTO THE FED... Tuesday we see how strongly consumers are spending, with April Retail Sales expected up, but not by as much as last month. Prices should hold, as the overall Consumer Price Index (CPI) is forecast flat, with "core" prices (excluding food and energy) up just 0.2%.
We'll also look into home building, with April Housing Starts predicted up a little, but Building Permits (see above) down a bit. Wednesday's FOMC Minutes will give us a closer look into what happened at the last Fed meeting.
>> The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
Economic Calendar for the Week of May 14 – May 18
Date Time (ET) Release For Consensus Prior Impact
Tu May 15 08:30 Retail Sales Apr 0.2% 0.8% HIGH
Tu May 15 08:30 Retail Sales ex-auto Apr 0.2% 0.8% HIGH
Tu May 15 08:30 Consumer Price Index (CPI) Apr 0.0% 0.3% HIGH
Tu May 15 08:30 Core CPI Apr 0.2% 0.2% HIGH
Tu May 15 08:30 Empire State Mfg May 8.4 6.6 Moderate
Tu May 15 10:00 Business Inventories Mar 0.3% 0.6% Moderate
W May 16 08:30 Housing Starts Apr 680K 654K Moderate
W May 16 08:30 Building Permits Apr 730K 747K Moderate
W May 16 09:15 Industrial Production Apr 0.5% 0.0% Moderate
W May 16 09:15 Capacity Utilization Apr 79.0% 78.6% Moderate
W May 16 10:30 Crude Inventories 05/12 NA 3.652M Moderate
W May 16 14:00 FOMC Minutes 04/25 NA NA HIGH
Th May 17 08:30 Initial Unemployment Claims 05/12 365K 367K Moderate
Th May 17 08:30 Continuing Unemployment Claims 05/05 3.250M 3.229M Moderate
Th May 17 10:00 Philadelphia Fed Mfg May 8.8 8.5 HIGH
Th May 17 10:00 Leading Economic Indicators (LEI) Apr 0.2% 0.3% Moderate
>> Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months... The Fed has stated its goal is to keep rates super low well into next year. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
Current Fed Funds Rate: 0%–0.25%
After FOMC meeting on: Consensus
Jun 20 0%–0.25%
Jul 31 0%–0.25%
Sep 12 0%–0.25%
Probability of change from current policy:
After FOMC meeting on: Consensus
Jun 20 <1%
Jul 31 <1%
Sep 12 <1%
UIE
Market Update For the week of June 25, 2012
To contact us Click HERE
QUOTE OF THE WEEK..."It's not that I'm so smart, it's just that I stay with problems longer." --Albert Einstein, German-born theoretical physicist
INFO THAT HITS US WHERE WE LIVE... Those of us who toil in the U.S. housing market have certainly stayed with our problems a long time. But you don't have to be Einstein to see light at the end of the tunnel. Housing starts were down slightly in May but are UP 28.5% over a year ago. Single-family starts were actually up 3.2% for the month and are UP 26.2% versus a year ago. New Building Permits went up 7.9% for the month and are UP 25% versus a year ago. Total number of homes under construction gained for the ninth month in a row, which hasn't happened since 2003-2004!
This good news in home building was followed by more positive signs. Existing Home Sales dipped just 1.5% in May and are UP 9.6% over a year ago. The median price is UP 7.9% versus a year ago -- the biggest annual gain since 2006 -- and the third consecutive month of yearly gains in the median price of existing homes. Additionally, April's FHFA index of prices for all homes financed by conforming mortgages was up 0.8%. These prices are UP 2.4% the last two months, the fastest two-month gain on record.
BUSINESS TIP OF THE WEEK... Show people your value by going beyond their expectations in everything you do. Even if they're not clients, you'll generate good will and build a reputation as someone people like and trust.
Review of Last Week
TECHNICALLY UP... The tech-heavy Nasdaq stock index ended the week up nicely, but the Dow and the S&P 500 were down after posting gains the last two weeks. The drop was all due to Thursday's trading, which saw the worst one-day decline in stock prices since December. There was good news from Europe, as the Greeks elected leaders who want to stay in the Eurozone. But the Fed meeting on Wednesday featured a lackluster forecast for the rest of the year, with GDP growth a measly 1.9% to 2.4% and unemployment staying up in the 8.0% to 8.2% range.
The Philadelphia Fed Index of manufacturing activity dropped in June to its worst reading since August. This was followed by Weekly Initial Jobless Claims up to 387,000 and continuing claims at 3.30 million. Some economists think these figures point to weak payroll growth for June, as some firms wait for the Supreme Court's health care ruling before deciding how many workers to hire. Yet the housing data reported above was encouraging, as was the May Leading Economic Indicators Index, UP 0.3% after its prior decline.
For the week, the Dow ended down 1.0%, at 12641; the S&P 500 closed down 0.6%, to 1335; but the Nasdaq was UP 0.7%, to 2892.
Weak economic reports, plus the Fed's downbeat forecast, kept plenty of investors flocking to the safe haven of bonds. The FNMA 3.5% bond we watch slipped a little, finishing the week down 0.75, at $104.28. Nevertheless, national average mortgage rates eased back into record-low territory in Freddie Mac's weekly survey. Demand for purchase mortgages were off a tad, but remain within the range of the last three years.
DID YOU KNOW?... Currency trading is the buying and selling of world currencies by financial institutions and sophisticated individual investors trying to benefit from variations in currency exchange rates.
Thursday's 3rd Estimate of Q1 GDP is expected to show overall economic growth still at an anemic 1.9%. Friday's Core CPE Prices should be up a little but still within the Fed's inflation guidelines.
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
M Jun 25 10:00 New Home Sales May 350K 343K Moderate
Tu Jun 26 10:00 Consumer Confidence Jun 64.0 64.9 Moderate
W Jun 27 08:30 Durable Goods Orders May 0.5% 0.0% Moderate
W Jun 27 10:00 Pending Home Sales May 0.5% –5.5% Moderate
W Jun 27 10:30 Crude Inventories 06/23 NA 2.861M Moderate
Th Jun 28 08:30 Initial Unemployment Claims 06/23 385K 387K Moderate
Th Jun 28 08:30 Continuing Unemployment Claims 06/16 3.290M 3.299M Moderate
Th Jun 28 08:30 GDP–3rd Estimate Q1 1.9% 1.9% Moderate
Th Jun 28 08:30 GDP Deflator–3rd Estimate Q1 1.7% 1.7% Moderate
F Jun 29 08:30 Personal Income May 0.1% 0.2% Moderate
F Jun 29 08:30 Personal Spending May 0.1% 0.3% HIGH
F Jun 29 08:30 PCE Prices–Core May 0.2% 0.1% HIGH
F Jun 29 09:45 Chicago PMI Jun 52.4 52.7 HIGH
F Jun 29 09:55 Univ. of Michigan Consumer Sentiment–Final Jun 74.1 74.1 Moderate
Current Fed Funds Rate: 0%–0.25%
After FOMC meeting on: Consensus
Aug 1 0%–0.25%
Sep 13 0%–0.25%
Oct 24 0%–0.25%
Probability of change from current policy:
After FOMC meeting on: Consensus
Aug 1 <1%
Sep 13 <1%
Oct 24 <1%
UIE
QUOTE OF THE WEEK..."It's not that I'm so smart, it's just that I stay with problems longer." --Albert Einstein, German-born theoretical physicist
INFO THAT HITS US WHERE WE LIVE... Those of us who toil in the U.S. housing market have certainly stayed with our problems a long time. But you don't have to be Einstein to see light at the end of the tunnel. Housing starts were down slightly in May but are UP 28.5% over a year ago. Single-family starts were actually up 3.2% for the month and are UP 26.2% versus a year ago. New Building Permits went up 7.9% for the month and are UP 25% versus a year ago. Total number of homes under construction gained for the ninth month in a row, which hasn't happened since 2003-2004!
This good news in home building was followed by more positive signs. Existing Home Sales dipped just 1.5% in May and are UP 9.6% over a year ago. The median price is UP 7.9% versus a year ago -- the biggest annual gain since 2006 -- and the third consecutive month of yearly gains in the median price of existing homes. Additionally, April's FHFA index of prices for all homes financed by conforming mortgages was up 0.8%. These prices are UP 2.4% the last two months, the fastest two-month gain on record.
BUSINESS TIP OF THE WEEK... Show people your value by going beyond their expectations in everything you do. Even if they're not clients, you'll generate good will and build a reputation as someone people like and trust.
Review of Last Week
TECHNICALLY UP... The tech-heavy Nasdaq stock index ended the week up nicely, but the Dow and the S&P 500 were down after posting gains the last two weeks. The drop was all due to Thursday's trading, which saw the worst one-day decline in stock prices since December. There was good news from Europe, as the Greeks elected leaders who want to stay in the Eurozone. But the Fed meeting on Wednesday featured a lackluster forecast for the rest of the year, with GDP growth a measly 1.9% to 2.4% and unemployment staying up in the 8.0% to 8.2% range.
The Philadelphia Fed Index of manufacturing activity dropped in June to its worst reading since August. This was followed by Weekly Initial Jobless Claims up to 387,000 and continuing claims at 3.30 million. Some economists think these figures point to weak payroll growth for June, as some firms wait for the Supreme Court's health care ruling before deciding how many workers to hire. Yet the housing data reported above was encouraging, as was the May Leading Economic Indicators Index, UP 0.3% after its prior decline.
For the week, the Dow ended down 1.0%, at 12641; the S&P 500 closed down 0.6%, to 1335; but the Nasdaq was UP 0.7%, to 2892.
Weak economic reports, plus the Fed's downbeat forecast, kept plenty of investors flocking to the safe haven of bonds. The FNMA 3.5% bond we watch slipped a little, finishing the week down 0.75, at $104.28. Nevertheless, national average mortgage rates eased back into record-low territory in Freddie Mac's weekly survey. Demand for purchase mortgages were off a tad, but remain within the range of the last three years.
DID YOU KNOW?... Currency trading is the buying and selling of world currencies by financial institutions and sophisticated individual investors trying to benefit from variations in currency exchange rates.
This Week’s Forecast
NEW AND PENDING HOME SALES, GDP, INFLATION... Recent housing data has brightened an otherwise dreary economic picture and this week we'll see if that continues. Monday's May New Homes Sales should maintain their upward trend. Wednesday we'll scope where existing home sales may be a few months out, with May Pending Home Sales, a measure of contracts signed. The forecast is for a bounce back from the prior month's dip.Thursday's 3rd Estimate of Q1 GDP is expected to show overall economic growth still at an anemic 1.9%. Friday's Core CPE Prices should be up a little but still within the Fed's inflation guidelines.
The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
Economic Calendar for the Week of Jun 25 – Jun 29
Date Time (ET) Release For Consensus Prior ImpactM Jun 25 10:00 New Home Sales May 350K 343K Moderate
Tu Jun 26 10:00 Consumer Confidence Jun 64.0 64.9 Moderate
W Jun 27 08:30 Durable Goods Orders May 0.5% 0.0% Moderate
W Jun 27 10:00 Pending Home Sales May 0.5% –5.5% Moderate
W Jun 27 10:30 Crude Inventories 06/23 NA 2.861M Moderate
Th Jun 28 08:30 Initial Unemployment Claims 06/23 385K 387K Moderate
Th Jun 28 08:30 Continuing Unemployment Claims 06/16 3.290M 3.299M Moderate
Th Jun 28 08:30 GDP–3rd Estimate Q1 1.9% 1.9% Moderate
Th Jun 28 08:30 GDP Deflator–3rd Estimate Q1 1.7% 1.7% Moderate
F Jun 29 08:30 Personal Income May 0.1% 0.2% Moderate
F Jun 29 08:30 Personal Spending May 0.1% 0.3% HIGH
F Jun 29 08:30 PCE Prices–Core May 0.2% 0.1% HIGH
F Jun 29 09:45 Chicago PMI Jun 52.4 52.7 HIGH
F Jun 29 09:55 Univ. of Michigan Consumer Sentiment–Final Jun 74.1 74.1 Moderate
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months... Last week's Fed policy statement said they expected an "exceptionally low" Funds Rate "at least through late 2014." Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.Current Fed Funds Rate: 0%–0.25%
After FOMC meeting on: Consensus
Aug 1 0%–0.25%
Sep 13 0%–0.25%
Oct 24 0%–0.25%
Probability of change from current policy:
After FOMC meeting on: Consensus
Aug 1 <1%
Sep 13 <1%
Oct 24 <1%
UIE
5 Temmuz 2012 Perşembe
Buyers, Don't Despair!
To contact us Click HERE
by Dallice Tylee
Scenario #1
Mr and Mrs Buyer send me a list of search criteria and I send them the entire Boulder inventory that matches what they are looking for... on paper.
We pick a nice spring day and set out to visit said inventory, which is a total of about 5 homes.
After 3 nasty looking, poorly maintained homes, with questionable looking neighbors, Mr Buyer decides not to get out of the car any more. His wife is asked to go in with me while he enjoys the temperature controlled massaging seats in the back of my Lexus!
Both husband and wife are fairly disgusted and disillusioned with offerings that their $600,000 will buy.
Scenario #2
Mr and Mrs Buyer are freshly back in the US after living abroad for several years. They are very familiar with Boulder and have chosen it for quality of life reasons.
For 6 months they visit regularly and we set showings for anything that looks like it might match what they need. I am getting a very good picture of their needs and feel that although it is not for sale right now, it will be, when the inventory levels rise in spring.
One early spring day, tired and frustrated, Mr Buyer looks at me and says "I think my spirit is broken". Of course they are beginning to feel like the best homes come and go from the market while they are out of town and what is left, is just not worth the $800,000 they are willing to spend. Why wouldn't they?
Scenario #3
Mr and Mrs Buyer are newlyweds and start off super excited to be house hunting. They become disgruntled after weeks of shopping and discovering that every time something looks 'worth a second look', it goes under contract before they have time to make a move. They resent feeling pressured to make a decision involving almost $400,000 with only a moments notice... Understandably!
Yes... the market has changed.
While the Buyers of last year could take their time, make slow decisions and feel confident that a lower offer would be considered; The Buyers of 2012 don't have that luxury.
The frustration of low inventory and competitive bids is not going to go away over night. But with a little luck, a lot of experienced Realtor advice and kick-butt negotiation strategy, a Buyer can get the house they love, for a price that is reasonable.
Hang in there Buyers!
I do believe that in life and real estate, whenever one door closes, another one opens.
The right property is out there. Get to know the market. Prowl the internet, see homes match what you are looking for and in the area that you want to buy.
When you have a good grasp of what is available and what is a good deal, you will be well positioned to jump on "the one" quickly and competitively.
... In fact the Buyers in scenario #1 and #2 have both found the home they were looking for! The Buyers in the second scenario successfully competed against another Buyer to get their dream home under contract AND still got it for well under list price and well under the appraised value.
Trust the system... Trust your Realtor.
---
Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Dallice at (303)746-6765.
---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.
by Dallice TyleeScenario #1
Mr and Mrs Buyer send me a list of search criteria and I send them the entire Boulder inventory that matches what they are looking for... on paper.
We pick a nice spring day and set out to visit said inventory, which is a total of about 5 homes.
After 3 nasty looking, poorly maintained homes, with questionable looking neighbors, Mr Buyer decides not to get out of the car any more. His wife is asked to go in with me while he enjoys the temperature controlled massaging seats in the back of my Lexus!
Both husband and wife are fairly disgusted and disillusioned with offerings that their $600,000 will buy.
Scenario #2
Mr and Mrs Buyer are freshly back in the US after living abroad for several years. They are very familiar with Boulder and have chosen it for quality of life reasons.
For 6 months they visit regularly and we set showings for anything that looks like it might match what they need. I am getting a very good picture of their needs and feel that although it is not for sale right now, it will be, when the inventory levels rise in spring.
One early spring day, tired and frustrated, Mr Buyer looks at me and says "I think my spirit is broken". Of course they are beginning to feel like the best homes come and go from the market while they are out of town and what is left, is just not worth the $800,000 they are willing to spend. Why wouldn't they?
Scenario #3
Mr and Mrs Buyer are newlyweds and start off super excited to be house hunting. They become disgruntled after weeks of shopping and discovering that every time something looks 'worth a second look', it goes under contract before they have time to make a move. They resent feeling pressured to make a decision involving almost $400,000 with only a moments notice... Understandably!
Yes... the market has changed.
While the Buyers of last year could take their time, make slow decisions and feel confident that a lower offer would be considered; The Buyers of 2012 don't have that luxury.
The frustration of low inventory and competitive bids is not going to go away over night. But with a little luck, a lot of experienced Realtor advice and kick-butt negotiation strategy, a Buyer can get the house they love, for a price that is reasonable.
Hang in there Buyers!
I do believe that in life and real estate, whenever one door closes, another one opens.
The right property is out there. Get to know the market. Prowl the internet, see homes match what you are looking for and in the area that you want to buy.
When you have a good grasp of what is available and what is a good deal, you will be well positioned to jump on "the one" quickly and competitively.
... In fact the Buyers in scenario #1 and #2 have both found the home they were looking for! The Buyers in the second scenario successfully competed against another Buyer to get their dream home under contract AND still got it for well under list price and well under the appraised value.
Trust the system... Trust your Realtor.
---
Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Dallice at (303)746-6765.
---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.
Step Into The Buyer' Mind [Selling Tips]
To contact us Click HERE
by Osman Parvez
Want to maximize sale price and minimize time on market? Here's the advice I give my sellers: Think about it from the buyer's perspective.
Buyers start their house hunt by shopping online within certain functional requirements, locations, and a rough price range. They're looking for a minimum number of bedrooms, bathrooms, and garage spaces. Most buyers are very specific about age, location, and layout as well. You're not going to change any of that very easily. And neither am I.
Instead, our first job is to get your house on the showing list by making it stand out among all the other potential candidates. It's why we focus so much attention on staging, photography, and listing language.
When that first job is accomplished, and the prospective buyer arrives with their agent, it's no longer about functional requirements or even the price The house has already passed those filters. It's now almost entirely about the emotional reaction. From the moment they pull up to the curb, you as the seller (and me as your listing agent) have an opportunity to influence perceptions.
Make no mistake, if buyers are emotionally attached, they will talk themselves into overlooking issues with the house, including the price. Buyers have a tendency to justify their already-made decision with logic, sometimes quite twisted logic, for why THIS ONE should be it. Unfortunately, if something interrupts the pathway to emotional attachment - whether it's a broken door bell or other clear signs of deferred maintenance - the spell is broken. The opportunity to make a good first impression is lost.
Stage It Right, Price It Right
Here's how I can help. For starters, every home I list includes a complementary staging consultation. Every week, Dallice and I take buyers to see dozens of houses. We are deeply in touch with the things that turn on and turn off buyers. Dallice has also taken the same professional staging classes and passed the same certification standards as professional staging consultants. Before your property hits the MLS, before we enter the so-called honey moon period of the listing, we'll provide you with a detailed list of improvements we recommend you take. We'll even prioritize our recommendations, showing you precisely where you'll get the most bang for the buck.
Of course, we also provide exceptional photography, obsess over the competition and analyze recent sales. If you're a regularly blog reader, you know that I probably do this more carefully than any other agent in Boulder County. Pricing smart is critical, because once they are emotionally hooked, the house still has to make reasonable economic sense. Just remember it's secondary to the importance of emotional attachment. Trust me here, I'm an analytical guy who has spent most of his professional career evaluating investments. For the vast majority of non-investment buyers, emotional appeal will override mispricing but not the other way around.
If the market is hot in your neighborhood and a reasonable length of time remains before the seasonal peak, I'll probably recommend we price slightly ahead of the trend. If the market is showing clear signs of weakness and we're entering the 4th quarter of the year, I might recommend pricing slightly below the most recent comparable or competitor. Once buyers are emotionally drawn to the house, the goal is to make the objective, analytical evaluation an easy one. That's why I obsess over valuation and tracking the market. It's the way to make sure the price makes sense from an analysis of historical sales and in the context of the current competition.
p.s. My listings appear on the Realtor.com, Craigslist and all of the same websites as my competition; Colorado HomeFinder, Coldwell Banker, Re/Max, Keller Williams, and Pedal to Property. We even market our listings to our pool of active buyers, months before they hit the market. The difference is the service I provide and the reputation that I stand behind.
To learn more about how I advise sellers, helping them achieve the highest price possible with the least amount of hassle, call me. Email me at osman@silverfernrealty.com or call me at 303.746.6896
---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.
images: Hans S
by Osman ParvezWant to maximize sale price and minimize time on market? Here's the advice I give my sellers: Think about it from the buyer's perspective.
Buyers start their house hunt by shopping online within certain functional requirements, locations, and a rough price range. They're looking for a minimum number of bedrooms, bathrooms, and garage spaces. Most buyers are very specific about age, location, and layout as well. You're not going to change any of that very easily. And neither am I.
 |
| What Do Prospective Buyers See and Feel? |
When that first job is accomplished, and the prospective buyer arrives with their agent, it's no longer about functional requirements or even the price The house has already passed those filters. It's now almost entirely about the emotional reaction. From the moment they pull up to the curb, you as the seller (and me as your listing agent) have an opportunity to influence perceptions.
Make no mistake, if buyers are emotionally attached, they will talk themselves into overlooking issues with the house, including the price. Buyers have a tendency to justify their already-made decision with logic, sometimes quite twisted logic, for why THIS ONE should be it. Unfortunately, if something interrupts the pathway to emotional attachment - whether it's a broken door bell or other clear signs of deferred maintenance - the spell is broken. The opportunity to make a good first impression is lost.
Stage It Right, Price It Right
Here's how I can help. For starters, every home I list includes a complementary staging consultation. Every week, Dallice and I take buyers to see dozens of houses. We are deeply in touch with the things that turn on and turn off buyers. Dallice has also taken the same professional staging classes and passed the same certification standards as professional staging consultants. Before your property hits the MLS, before we enter the so-called honey moon period of the listing, we'll provide you with a detailed list of improvements we recommend you take. We'll even prioritize our recommendations, showing you precisely where you'll get the most bang for the buck.
Of course, we also provide exceptional photography, obsess over the competition and analyze recent sales. If you're a regularly blog reader, you know that I probably do this more carefully than any other agent in Boulder County. Pricing smart is critical, because once they are emotionally hooked, the house still has to make reasonable economic sense. Just remember it's secondary to the importance of emotional attachment. Trust me here, I'm an analytical guy who has spent most of his professional career evaluating investments. For the vast majority of non-investment buyers, emotional appeal will override mispricing but not the other way around. If the market is hot in your neighborhood and a reasonable length of time remains before the seasonal peak, I'll probably recommend we price slightly ahead of the trend. If the market is showing clear signs of weakness and we're entering the 4th quarter of the year, I might recommend pricing slightly below the most recent comparable or competitor. Once buyers are emotionally drawn to the house, the goal is to make the objective, analytical evaluation an easy one. That's why I obsess over valuation and tracking the market. It's the way to make sure the price makes sense from an analysis of historical sales and in the context of the current competition.
p.s. My listings appear on the Realtor.com, Craigslist and all of the same websites as my competition; Colorado HomeFinder, Coldwell Banker, Re/Max, Keller Williams, and Pedal to Property. We even market our listings to our pool of active buyers, months before they hit the market. The difference is the service I provide and the reputation that I stand behind.
To learn more about how I advise sellers, helping them achieve the highest price possible with the least amount of hassle, call me. Email me at osman@silverfernrealty.com or call me at 303.746.6896
---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.
images: Hans S
What Your Agent Can't Do [Analyze This]
To contact us Click HERE
by Osman Parvez
You can always blunder your way through a real estate decision, but just remember that we're talking about a decision committing hundreds of thousands - sometimes millions - of dollars to an single asset. Are you sure you want to go in blind?
Before signing your name on the dotted line, you should have the most recent market information. In my opinion, it's the only way to make an intelligent, informed decision about real estate. Anything less is gambling.
Providing detailed, up-to-date market knowledge and sound advice based on years of experience is how I help my clients negotiate better. My advice isn't based on my personal business activity, vague "feelings about the market," or generic headlines I read in the Daily Camera. It comes from directly analyzing market conditions.
Boulder Real Estate Update
Two weeks ago, I sent our latest market research to clients and friends. Now I'm sharing it with you. The report below comes from the same set of skills I honed working as an investment analyst and economic consultant. Skills and experience that most agents simply don't have.
Deep market knowledge and insights; it's how I can help you make a smarter real estate decision.
To get on my client-only mailing list and receive my reports when they're first published (and actionable), drop me an email at osman@silverfernrealty.com or better yet, call me at 303.746.6896. ---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.
by Osman ParvezYou can always blunder your way through a real estate decision, but just remember that we're talking about a decision committing hundreds of thousands - sometimes millions - of dollars to an single asset. Are you sure you want to go in blind?
Before signing your name on the dotted line, you should have the most recent market information. In my opinion, it's the only way to make an intelligent, informed decision about real estate. Anything less is gambling.
Providing detailed, up-to-date market knowledge and sound advice based on years of experience is how I help my clients negotiate better. My advice isn't based on my personal business activity, vague "feelings about the market," or generic headlines I read in the Daily Camera. It comes from directly analyzing market conditions.
Boulder Real Estate Update
Two weeks ago, I sent our latest market research to clients and friends. Now I'm sharing it with you. The report below comes from the same set of skills I honed working as an investment analyst and economic consultant. Skills and experience that most agents simply don't have.
Deep market knowledge and insights; it's how I can help you make a smarter real estate decision.
To get on my client-only mailing list and receive my reports when they're first published (and actionable), drop me an email at osman@silverfernrealty.com or better yet, call me at 303.746.6896. ---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.
811: Know What's Below
To contact us Click HERE
by Dallice Tylee
It is that time of year. The daylight hours are long, the temperatures are perfect.
Perhaps that is the very reason you suddenly notice the damage and deficiencies present in your yard. Or maybe, you have simply been waiting for better weather and more time to make planned improvements.
Whatever the reason... This weekend is it!
Planting a tree?
Putting up a new fence?
Digging in a new sprinkler system?
Starting the new deck?
Installing a pond?
Changing the location of your mailbox?
WAIT! Do you know where your utility lines are located? They may not be as deep as you think.
Before you go endangering yourself, potentially disrupting service to your neighborhood (and yourself) and risking expensive repairs or fines...
Dial 811
How it works:
You call this national number a few days before your intended digging.
The call is routed to a local call center.
Tell the operator the address and where you will be digging. Also the type of work you will be doing.
The affected local utility companies will be notified.
The utility companies will send someone out in the next few days, to locate and mark the approximate location of pipes and cables.
This is a FREE service and is for your SAFETY. May 2012 marks the 5th anniversary of the introduction of the National 811 number.
Click here for more information.
Even better... click here to see what happened to two men in IOWA after they hit a natural gas pipeline while digging a trench in the middle of a field! Yikes!
---
Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Dallice at (303)746-6765.
---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.
by Dallice TyleeIt is that time of year. The daylight hours are long, the temperatures are perfect.
Perhaps that is the very reason you suddenly notice the damage and deficiencies present in your yard. Or maybe, you have simply been waiting for better weather and more time to make planned improvements.
Whatever the reason... This weekend is it!
 |
| Photo Courtesy: Amy Fry |
Planting a tree?
Putting up a new fence?
Digging in a new sprinkler system?
Starting the new deck?
Installing a pond?
Changing the location of your mailbox?
WAIT! Do you know where your utility lines are located? They may not be as deep as you think.
Before you go endangering yourself, potentially disrupting service to your neighborhood (and yourself) and risking expensive repairs or fines...
Dial 811
How it works:
You call this national number a few days before your intended digging.
The call is routed to a local call center.
Tell the operator the address and where you will be digging. Also the type of work you will be doing.
The affected local utility companies will be notified.
The utility companies will send someone out in the next few days, to locate and mark the approximate location of pipes and cables.
This is a FREE service and is for your SAFETY. May 2012 marks the 5th anniversary of the introduction of the National 811 number.
Click here for more information.
Even better... click here to see what happened to two men in IOWA after they hit a natural gas pipeline while digging a trench in the middle of a field! Yikes!
---
Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Dallice at (303)746-6765.
---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.
Boulder's Bipolar Real Estate Market
To contact us Click HERE
by Osman Parvez
If you talk to a real estate agent in Boulder, you'll probably hear that the market is hot right now. They're not lying. It's true, but it's also not the full story.
As my dad used to say, telling a partial truth isn't lying but it's not the same as the complete truth. The complete truth is that the Boulder real estate market is very active in select locations and select price ranges.
Let's look at price ranges. The following charts show inventory (by price range) in the City of Boulder. Each pie shows the breakdown between available homes and those under contract.
This first tranche covers houses with asking prices from $301,000 to $500,000. This is the price range for a large number of people; first time buyers, investors, and sometimes downsizing retirees. At the current time, more houses are under contract than available for purchase. We've seen bidding wars repeatedly and our strategies to help buyers and sellers now reflect extremely active market conditions.
This has been the pattern since late February. I'm advising my buyers to see inventory the day it hits the market and be ready to pull the trigger. I've even started keeping a laptop in the car so we can write an offer on the spot, if necessary.
Now check out a chart for higher-end, more luxurious homes in Boulder
Sellers of higher-value homes (and their agents) would probably like you believe that the frenzied market activity, bidding wars, and scarcity occurring at lower price points also exists at the upper end of the market. This analysis say otherwise.
Yes, sales volume of higher end homes has increased this year but there's a mountain of unsold inventory - not to mention expired/withdrawn listings that have yet to return to market. This is why I'm still advising my buyers at this price range that an opportunity still exists to get a great deal. This might be an good time to focus on downtown real estate, or homes with protected views close to downtown. The key is to be patient, negotiate aggressively, and be cautious. If you want to get a good deal, seeing a lot of inventory is mandatory and if the house doesn't feel right, or the seller is simply asking an unreasonable number, walk away. Negotiated discounts at the higher-end should be much greater than lower price levels, but not all sellers will see it that way.
Want to continue the discussion? Join us at tonight's meetup. Learn more and RSVP here.
---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.
by Osman ParvezIf you talk to a real estate agent in Boulder, you'll probably hear that the market is hot right now. They're not lying. It's true, but it's also not the full story.
As my dad used to say, telling a partial truth isn't lying but it's not the same as the complete truth. The complete truth is that the Boulder real estate market is very active in select locations and select price ranges.
Let's look at price ranges. The following charts show inventory (by price range) in the City of Boulder. Each pie shows the breakdown between available homes and those under contract.
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| House inventory in Boulder, $301,000 to $500,000 on 6/27/2012 |
This has been the pattern since late February. I'm advising my buyers to see inventory the day it hits the market and be ready to pull the trigger. I've even started keeping a laptop in the car so we can write an offer on the spot, if necessary.
Now check out a chart for higher-end, more luxurious homes in Boulder
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| House inventory in Boulder, $1MM to $2MM on 6/27/2012 |
Sellers of higher-value homes (and their agents) would probably like you believe that the frenzied market activity, bidding wars, and scarcity occurring at lower price points also exists at the upper end of the market. This analysis say otherwise.
Yes, sales volume of higher end homes has increased this year but there's a mountain of unsold inventory - not to mention expired/withdrawn listings that have yet to return to market. This is why I'm still advising my buyers at this price range that an opportunity still exists to get a great deal. This might be an good time to focus on downtown real estate, or homes with protected views close to downtown. The key is to be patient, negotiate aggressively, and be cautious. If you want to get a good deal, seeing a lot of inventory is mandatory and if the house doesn't feel right, or the seller is simply asking an unreasonable number, walk away. Negotiated discounts at the higher-end should be much greater than lower price levels, but not all sellers will see it that way.
Want to continue the discussion? Join us at tonight's meetup. Learn more and RSVP here.
---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.
4 Temmuz 2012 Çarşamba
What Your Agent Can't Do [Analyze This]
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by Osman Parvez
You can always blunder your way through a real estate decision, but just remember that we're talking about a decision committing hundreds of thousands - sometimes millions - of dollars to an single asset. Are you sure you want to go in blind?
Before signing your name on the dotted line, you should have the most recent market information. In my opinion, it's the only way to make an intelligent, informed decision about real estate. Anything less is gambling.
Providing detailed, up-to-date market knowledge and sound advice based on years of experience is how I help my clients negotiate better. My advice isn't based on my personal business activity, vague "feelings about the market," or generic headlines I read in the Daily Camera. It comes from directly analyzing market conditions.
Boulder Real Estate Update
Two weeks ago, I sent our latest market research to clients and friends. Now I'm sharing it with you. The report below comes from the same set of skills I honed working as an investment analyst and economic consultant. Skills and experience that most agents simply don't have.
Deep market knowledge and insights; it's how I can help you make a smarter real estate decision.
To get on my client-only mailing list and receive my reports when they're first published (and actionable), drop me an email at osman@silverfernrealty.com or better yet, call me at 303.746.6896. ---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.
by Osman ParvezYou can always blunder your way through a real estate decision, but just remember that we're talking about a decision committing hundreds of thousands - sometimes millions - of dollars to an single asset. Are you sure you want to go in blind?
Before signing your name on the dotted line, you should have the most recent market information. In my opinion, it's the only way to make an intelligent, informed decision about real estate. Anything less is gambling.
Providing detailed, up-to-date market knowledge and sound advice based on years of experience is how I help my clients negotiate better. My advice isn't based on my personal business activity, vague "feelings about the market," or generic headlines I read in the Daily Camera. It comes from directly analyzing market conditions.
Boulder Real Estate Update
Two weeks ago, I sent our latest market research to clients and friends. Now I'm sharing it with you. The report below comes from the same set of skills I honed working as an investment analyst and economic consultant. Skills and experience that most agents simply don't have.
Deep market knowledge and insights; it's how I can help you make a smarter real estate decision.
To get on my client-only mailing list and receive my reports when they're first published (and actionable), drop me an email at osman@silverfernrealty.com or better yet, call me at 303.746.6896. ---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.
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