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Archive for June, 2008

Short Sale Mishap

J. Andrew English J. Andrew English
Monday, June 30th, 2008

http://www.inman.com/news/2008/06/30/wells-fargo-tico-in-hot-water-over-short-sales

The article above does a great job of explaining what occurs in the event of a default on an FHA loan. Basically, FHA loans are insured by the government. In this instance above, Wells was allegedly submitting false losses on these insured loans. Rather than admit guilt, Wells reached a settlement of just over 4 million. A lender can submit a request for repayment on a loss on a government insured loan, such as an FHA loan. (under strict stipulations) In this instance, Wells was being accused of simply lying. The true value of the article above in my opinion is the detailing of the continued problem with lenders and short sales.

Positive Press

J. Andrew English J. Andrew English
Friday, June 27th, 2008

http://www.inman.com/news/2008/06/27/stop-hyping-my-market

What I find interesting is that these same Realtors(R)are benefiting greatly from these headlines. Charlotte is one of the few areas where the # of Realtors(R) is actually increasing. Agents in Queen Creek would love to have positive press to help stir up business. This seems like a classic case of Realtors(R) wanting to lower the expectations of their sellers in hopes of increasing their own reputation in the event of a positive experience by the seller. This is quite bothersome, if a client is paying 5-6%, they should expect results from their Realtor(R). I never thought I would see the day when Realtors(R) complain about positive press for their respective market.

One thing NAR is doing correctly

J. Andrew English J. Andrew English
Thursday, June 26th, 2008
Real Estate Statistics are typically computed each quarter. % drops and increases are formulated in comparison to that same quarter exactly one year prior. ( Basically Quarter 1 2008 versus Quarter 2 2007 and so forth..)

NAR has figured out that May and June #’s in 2008 are going to be well above what anyone could have predicted. As a result, NAR isn’t waiting to release these #’s. To summarize NAR’s findings, existing sales in May were up 2% and existing inventory was down 1.4%. NAR is computing these #’s with respect to April of 08. (instead of quarter 2 of 2007) NAR released these #’s to the associated press late yesterday.

J. Andrew English – Real Estate Broker

FSBO Signage

J. Andrew English J. Andrew English
Wednesday, June 25th, 2008

Placing a FSBO sign in your front yard has both advantages and disadvantages. A couple of things to ponder when making this important decision:

Advantages:

Helps visibility and makes drive by traffic aware the property is for sale

Encourages agent phone calls to inquire about the listing.

Investors are always intrigued by FSBO listed properties

Certain buyers do not wish to deal with Realtors(R)

Disadvantages:

Realtors(R) worry if they will get paid for bringing a buyer

Most Realtor phone calls will be to acquire the listing, not sell listing

Most FSBO signs lack a professional feel and design

Often blow away

Typically, I recommend against a FSBO sign for any MLS listed property. The main reason is that Realtors(R) bringing a buyer will not understand why the FSBO sign is in the front yard. The very first thing they will wonder is if the listing brokerage still has the listing. This leads to their 2nd thought, am I getting paid? As a seller, you want the Realtor(R) to focus on selling your home to their client, not worrying about getting paid.

News and Notes

J. Andrew English J. Andrew English
Tuesday, June 24th, 2008

The Midland Association of Realtors(R) notified us today that any MLS listed property may not have a FSBO sign in the yard. The reason given by the association is that they feel it is misleading to the public. Midland now becomes the 3rd MLS that I am aware of to invoke this rule. (out of hundreds)

One mistake our sellers are making is changing their phone # during the listing. Anytime you have a phone # within the listing, do not change it unless absolutely necessary. The problem is that many agents print off detailed sheets days in advance. In the event you change your phone #, you may miss potential showings. Also, a previous Realtor(R) who did show the property may have that original # as your point of contact. As a seller you want to avoid any possible confusion relating to your contact info.

South Bay MLS in CA has merged with MRMLS. We will be updating our list now page shortly to reflect the new MLS forms. This will not affect our listings, as we are members of both South Bay and MRMLS.

Fresno homebuilder

Donald L. Plunkett, Jr. Donald L. Plunkett, Jr.
Friday, June 20th, 2008

The Fresno Bee recently reported that Beazer Homes pulled out of the central San Joaquin Valley.  Beazer cited the decline in sales activity along with the overall decline in prices year-over-year.  As a homeowner reading this story, it is easy to think it is a negative assessment of the market.  I think just the opposite.  When the market was going crazy in Phoenix and Las Vegas three to four years ago, new builders were entering the market left and right.  They would often cite 6000 new jobs per month or some other figure, yet they were building enough houses for all of those people to own several houses each.  When national builders pull out of a market, it is good news for local builders as well as homeowners looking to re-sell their homes (less supply with demand remaining constant).

One of the problems with homebuilding companies is that they do nothing but build homes.  Developers in many other real estate segments not only build apartments, shopping centers, industrial buildings, etc. but also manage and operate these properties.  So for instance, if Trammell Crow Residential’s Northern California office sees absolutely no demand for new apartments, it can focus its operations on managing existing properties instead of developing new ones.  Same applies for AMB Property Company or ProLogis in the industrial space.

Vegas Numbers

J. Andrew English J. Andrew English
Tuesday, June 17th, 2008

http://www.lvrj.com/business/19954334.html

Much of this article is a bit fabricated, however, the end of the article gets to what I feel is important for people to understand. The facts point to a bit of hope in the future for Las Vegas property owners.

Author – Hubble Smith R&J

Data Source – GLVAR

Offers Skyrocketing

J. Andrew English J. Andrew English
Monday, June 16th, 2008

Offers in June are not only up, but up an incredible amount. I haven’t ran the exact numbers, however, my best guess is that offers are up at least 1000% on our listed properties in June of 2008 in comparison to June of 2007. Slowly but surely, buyers are beginning to believe it is safe to invest back in Residential Real Estate. I have actually seen a few properties in Las Vegas have multiple offers that are not lender owned. The bottom line is that late May and early June have yielded positive results. When we look back next year on these months, it is quite possible that while sold prices may be down, if the supply begins to decrease, it may be the slow beginning of positive things to come. The biggest problem we have right now is a drastic oversupply. We need this supply to decrease in order for prices to stabalize and eventually tweak back upwards.

Advertising Dollars

J. Andrew English J. Andrew English
Friday, June 13th, 2008

http://www.inman.com/news/2008/06/12/experienced-agents-have-more-pricier-listings

This is a great article for our sellers to utilize with respect to cost comparison. It gives a snapshot view of what a typical full service agent may spend in marketing your property. It’s interesting that many of the websites the agents tout are actually free feeds directly from the MLS. (or in the case of CL, free altogether)

I agree with the articles findings that agents with more experience will tend to have more higher priced listings than agents new to the market. In addition, it makes sense that these experienced agents would have the funds needed for additional marketing. I would like to see a further breakdown of cost paid by the actual brokerage as opposed to just the agent. Many times the brokerage will have various agreements with magazines, etc… that the brokerage pays for.

Continuing Education for Real Estate Agents is simply unacceptable

J. Andrew English J. Andrew English
Thursday, June 12th, 2008

The state of Nevada has approved 3 CE credits for Real Estate agents concerning a class titled, Real Estate Blogging 101. A Nevada licensee can now satisfy 3 credit hours of continuing education by taking this class. I can’t begin to understand how this can qualify for continuing education. Furthermore, a RE professional can complete all of their CE credits online through a number of websites. Many of these online classes have no exam and no way of proctoring who is even taking the class. (You can take them from any PC)

The bottom line is that this is unacceptable. RE Agents should demand tougher requirements involving education in Real Estate. Currently, CE provides no benefit to the agent or public and soley benefits the companies charging for these CE services. To be approved to provide CE, you must be approved by the state. More agents + More Required pointless classes = More Money.

Real Estate Blogging 101

Approved by the Nevada Real Estate Commission
3 Hours Continuing Education (PD) – CE.3706000-RE