Tuesday, February 12, 2008
Wednesday, February 6, 2008
Sexy Sadie
Let us all have a moment of silence for the passing of the Maharishi Mahesh Yogi.
For those uninitiated, he was the "guru" of The Beatles in 1968. Because of their trip to India and their sojourn into transendental meditation, made popular and Westernized by the Maharishi, The Beatles had a time of R and R that was much needed. Also, because of the cleansing of their bodies and minds and the opening of the mind, they wrote prolifically during that period and released an almost unprecidented double album know as "The White Album". The album cover itself was shocking in its absolute stark whiteness, except for the embossed words "The Beatles" along with a serial number. The white cover was a reaction to the complete and total image overload of the previous album "Sgt Pepper's Lonely Hearts Club Band."
At the time of the recording, their producer, George Martin, tried to talk them into gleaning only the "best songs" and shelving the rest. But by then, the lads were feeling their oats and insisted upon the whole enchilada. When asked decades later about that decision, Ringo said, "I always thought it should have been released as two albums, The White Album and The Whiter Album." We love Ringo.
Which brings me to the topic of improving. Can you really have too much of a good thing. If a little is good, isn't more better? Maybe when it comes to the Beatles, but not when it comes to improving a home.
There is a movement in these days of foreclosures whereas the people who buy investment properties are having a field day. Especially if you are a handy person and like to fix things yourself. Now if you are slum lord and are just looking to flip a house or move in some unfortunate soul, then you can change the channel now. However, if you are a fixer-upper kind of person please try to restrain yourself. Here's why:
Say you find a bargain for $35,000. It is run down to the max but has good bones and a good foundation. You want to make this home a showplace; clean, neat and so sweet. New siding, new windows, new porch, refinished floors, updated plumbing and wiring, new kitchen, added bath, fresh drywall and insulation in the attic. Now you are the proud owner of a fabulous house. But, and this is a big but, the other homes in the neighborhood are only worth $80K. Ooops! All that work, time, money and pride of workmanship and you are stuck with a white elephant. Would you pay $125K to live in a $80K neighborhood? Doubt it.
The other scenario deals with the seller who is extremely house proud. They built the house themselves, sometimes even with their own hands. They have a gourmet kitchen with stainless steel appliances, wood floors, jacuzzis, custom woodwork, hand built cabinets (sweated over for months in their own woodworking shop) personalized touches everywhere. A year later, they realize that they need to retire to the sunny climes of Florida. They have put their blood, sweat and tears into the house and they know it is the finest home around. And they are right. And here's that big BUT again, a comparable stock home typical of the area goes for waaaayyyy less. But these homeowners are ssoooo proud that they can't imagine why someone wouldn't want to pay for all of their good taste.
So yes Virginia, you can overimprove. Which is not to say that you shouldn't do all of the above. Just remember that if you do, do it for your own enjoyment and not with the idea of raking in loads of mula when you sell.
Rule of thumb; white elephants don't turn into White Albums.
For those uninitiated, he was the "guru" of The Beatles in 1968. Because of their trip to India and their sojourn into transendental meditation, made popular and Westernized by the Maharishi, The Beatles had a time of R and R that was much needed. Also, because of the cleansing of their bodies and minds and the opening of the mind, they wrote prolifically during that period and released an almost unprecidented double album know as "The White Album". The album cover itself was shocking in its absolute stark whiteness, except for the embossed words "The Beatles" along with a serial number. The white cover was a reaction to the complete and total image overload of the previous album "Sgt Pepper's Lonely Hearts Club Band."
At the time of the recording, their producer, George Martin, tried to talk them into gleaning only the "best songs" and shelving the rest. But by then, the lads were feeling their oats and insisted upon the whole enchilada. When asked decades later about that decision, Ringo said, "I always thought it should have been released as two albums, The White Album and The Whiter Album." We love Ringo.
Which brings me to the topic of improving. Can you really have too much of a good thing. If a little is good, isn't more better? Maybe when it comes to the Beatles, but not when it comes to improving a home.
There is a movement in these days of foreclosures whereas the people who buy investment properties are having a field day. Especially if you are a handy person and like to fix things yourself. Now if you are slum lord and are just looking to flip a house or move in some unfortunate soul, then you can change the channel now. However, if you are a fixer-upper kind of person please try to restrain yourself. Here's why:
Say you find a bargain for $35,000. It is run down to the max but has good bones and a good foundation. You want to make this home a showplace; clean, neat and so sweet. New siding, new windows, new porch, refinished floors, updated plumbing and wiring, new kitchen, added bath, fresh drywall and insulation in the attic. Now you are the proud owner of a fabulous house. But, and this is a big but, the other homes in the neighborhood are only worth $80K. Ooops! All that work, time, money and pride of workmanship and you are stuck with a white elephant. Would you pay $125K to live in a $80K neighborhood? Doubt it.
The other scenario deals with the seller who is extremely house proud. They built the house themselves, sometimes even with their own hands. They have a gourmet kitchen with stainless steel appliances, wood floors, jacuzzis, custom woodwork, hand built cabinets (sweated over for months in their own woodworking shop) personalized touches everywhere. A year later, they realize that they need to retire to the sunny climes of Florida. They have put their blood, sweat and tears into the house and they know it is the finest home around. And they are right. And here's that big BUT again, a comparable stock home typical of the area goes for waaaayyyy less. But these homeowners are ssoooo proud that they can't imagine why someone wouldn't want to pay for all of their good taste.
So yes Virginia, you can overimprove. Which is not to say that you shouldn't do all of the above. Just remember that if you do, do it for your own enjoyment and not with the idea of raking in loads of mula when you sell.
Rule of thumb; white elephants don't turn into White Albums.
Friday, February 1, 2008
All I've Got to Do
I hate to go on and on about the slump in the housing market, but I will anyway. The economic news has stated that housing starts were at an unprecedented low last year. So what does that mean? It means that builders aren't building because buyers aren't buying. "Housing starts" is not the only way you can tell that the market is down but it is one of those "economic indicators" that economists must use because they can't call all of the real estate companies in the country and say, "Hey! How's business!"
Housing starts is like the unemployment rate, the cost of living, the stock market, the rate of inflation, the gross national product, the national debt, ad nauseum. The bean counters have to count something so they make little charts then count the little dots. I'm not saying that these indicators are not useful, they are. But they can be a bit misleading because they are averages for the country. Every region, state and community are different. Look at Detroit. Car manufacturing has been slipping for decades and the place is drying up and blowing away.
One of Wilmington's economic indicators that I have noticed is a new little subdivision that used to be the hottest thing since sliced bread, canned beer and indoor plumbing. Three years ago, those houses were going up almost overnight and selling just as quickly. They were priced for the upper middle class family and for the upwardly mobile. I drive through that area now and it looks like a ghost town. There is an unfinished street, empty lots full of tall weeds, piles of construction debris, new construction that has never sold and empty homes whose first inhabitants have moved on only to abandon the house to the vagaries of the real estate market.
Gee, I sound like some armageddonist. But if you are going to sell real estate these days, you have to get real (no pun intended) then don't take anything for granted. When things are slow, you don't just sit back and prop your feet up. You must work even harder.
For the first time in my real estate career, I have invested in marketing books. I have always eschewed the inspirational writers and speakers because they sounded so slick and evangelical to me. So one of the books I purchased has true funny stories of sales people's blunders then an analysis of what went wrong. The other book has business letter templates for marketing, prospecting and follow-ups. And...I have actually been using them, not just trying to learn by osmosis.
So far, no good. But if you keep doing what you've always done but expect different results, you are clinically insane. You may be right, I may be crazy. But it just might be a lunatic someone is looking for. And when that time comes, I can proudly stand up and say, "I'm a lunatic! Let me sell your house!"
I think I have internalized the sales blunders. Ooops!
Housing starts is like the unemployment rate, the cost of living, the stock market, the rate of inflation, the gross national product, the national debt, ad nauseum. The bean counters have to count something so they make little charts then count the little dots. I'm not saying that these indicators are not useful, they are. But they can be a bit misleading because they are averages for the country. Every region, state and community are different. Look at Detroit. Car manufacturing has been slipping for decades and the place is drying up and blowing away.
One of Wilmington's economic indicators that I have noticed is a new little subdivision that used to be the hottest thing since sliced bread, canned beer and indoor plumbing. Three years ago, those houses were going up almost overnight and selling just as quickly. They were priced for the upper middle class family and for the upwardly mobile. I drive through that area now and it looks like a ghost town. There is an unfinished street, empty lots full of tall weeds, piles of construction debris, new construction that has never sold and empty homes whose first inhabitants have moved on only to abandon the house to the vagaries of the real estate market.
Gee, I sound like some armageddonist. But if you are going to sell real estate these days, you have to get real (no pun intended) then don't take anything for granted. When things are slow, you don't just sit back and prop your feet up. You must work even harder.
For the first time in my real estate career, I have invested in marketing books. I have always eschewed the inspirational writers and speakers because they sounded so slick and evangelical to me. So one of the books I purchased has true funny stories of sales people's blunders then an analysis of what went wrong. The other book has business letter templates for marketing, prospecting and follow-ups. And...I have actually been using them, not just trying to learn by osmosis.
So far, no good. But if you keep doing what you've always done but expect different results, you are clinically insane. You may be right, I may be crazy. But it just might be a lunatic someone is looking for. And when that time comes, I can proudly stand up and say, "I'm a lunatic! Let me sell your house!"
I think I have internalized the sales blunders. Ooops!
Tuesday, January 29, 2008
You Really Got a Hold on Me
The housing market, once again, is making headlines. Well, if you don't count the State of the Union Address, which I don't. Here are some recent news blurbs concerning the State of the Housing Market, which will continue to effect us all. Much more than some lame duck.
"Make housing part of stimulus, NAR Says...The federal economic stimulus package under discussion by President Bush and Congress should loosen constraints on Fannie Mae and Freddie Mac to help make homeownership more widely available to households, NAR says. "Any stimulus package must address housing issues and increase the conforming loan limits for these two government-sponsored enterprises," says NAR President Dick Gaylord. NAR has been calling on Congress and the administration to increase the loan limits for Fannie Mae and Freddie Mac from the ceiling of $417,000 to $625,000. Doing so would reduce the supply of homes on the market by more than a month, strengthen home prices by 2-3 percentage points, and increase economic activity by $42 billion, NAR estimates. Foreclosures could also be reduced by 140,000 to 210,000 and result in an additional 348,000 home sales. )"- The Ohio Association of Realtors.
Above is a link to the news about CountryWide, the well known controversial mortgage lender. As you may know, it was purchased by Bank of America. For good or evil? You decide.
'“It looks to me as though maybe we haven't reached the complete bottom yet, but we're in the bottoming phase right now,” he said.
But the latest data don’t help forecasters much. Since July, the median price of existing homes has trended lower, but it ticked up slightly in December. And while sales volume began perking up in late 2006, a 0.8 percent drop in last month has some analysts rethinking the notion that the market had bottomed out.
“I still think there's further downside risk,” said Richard Berner, chief U.S. economist at Morgan Stanley. “And the reason is that it has become a buyer’s market with the imbalance between supply and demand both for new and existing homes out there.”
The supply of unsold homes — which soared to more than seven months worth of inventory for single-family homes from four months at the start of 2005 — has come down a bit. But it’s not clear whether the market is getting back on its feet or sellers have decided to pull their homes off the market and try again when the market improves.'- By John W. Schoen Senior Producer MSNBC updated 6:34 p.m. ET, Thurs., Jan. 25, 2007.
But the latest data don’t help forecasters much. Since July, the median price of existing homes has trended lower, but it ticked up slightly in December. And while sales volume began perking up in late 2006, a 0.8 percent drop in last month has some analysts rethinking the notion that the market had bottomed out.
“I still think there's further downside risk,” said Richard Berner, chief U.S. economist at Morgan Stanley. “And the reason is that it has become a buyer’s market with the imbalance between supply and demand both for new and existing homes out there.”
The supply of unsold homes — which soared to more than seven months worth of inventory for single-family homes from four months at the start of 2005 — has come down a bit. But it’s not clear whether the market is getting back on its feet or sellers have decided to pull their homes off the market and try again when the market improves.'- By John W. Schoen Senior Producer MSNBC updated 6:34 p.m. ET, Thurs., Jan. 25, 2007.
More gloom and doom? Well, we need to be realistic. The single largest contributing factor in the housing slump is the simple principle of supply and demand. Of course, why there is more supply than demand is a bit more complicated. Foreclosures and the threat of foreclosure, due to greedy lenders and a false sense of security amongst them, has contributed greatly to the glut on the market.
The Fed recently lowered interest rates by 3/4% and it is rumored that there may soon be another 1/2% decrease. What does that mean to mortgage rates? Diddly. That lowered rate affects what one bank lends to another, sometimes to increase their on-hand reserves which is mandated by the Fed. Sound like a game of round robin. Yep.
So, if you have bad credit or no money to spend, the interest rate means nothing to you.
But hang in there, folks. If you are in trouble with your credit card company, you can call them and negotiate a different interest rate or payment. The same goes for your mortgage lender. Call them. I can't reiterate that enough. If this whole mess is going to turn around, we have to take advantage of all resources. Every little bit helps. Don't wait for the ones with all the power and money to come knocking on your door to help you. They are only worried about themselves. YOU have to take charge, be brave and take charge.
Knowledge is power. Al Gore invented the internet for a reason.
Tuesday, January 22, 2008
Cry Baby Cry
http://www.housingmarketfacts.com/
Still on the fence about buying a home? Do you even have a fence? Chances are, if you are a renter, you not only don't have a fence but you don't have a yard.
This website gives some factoids about the benefits of owning a home. One is that, chances are, a home will be your biggest investment and asset. And, for this reason, it is an endeavor not to be taken lightly. Be prepared, if you purchase a home, that you nurture it, love it and make it your own.
That got a bit mushy, but when something becomes personal to you, you are more likely to fight for it.
The above website will address the wherefores and how-to's. Part of my job is to help you find a home, not just a house.
I think I'm gonna cry......
Still on the fence about buying a home? Do you even have a fence? Chances are, if you are a renter, you not only don't have a fence but you don't have a yard.
This website gives some factoids about the benefits of owning a home. One is that, chances are, a home will be your biggest investment and asset. And, for this reason, it is an endeavor not to be taken lightly. Be prepared, if you purchase a home, that you nurture it, love it and make it your own.
That got a bit mushy, but when something becomes personal to you, you are more likely to fight for it.
The above website will address the wherefores and how-to's. Part of my job is to help you find a home, not just a house.
I think I'm gonna cry......
Power to the People
http://www.realtor.org/subprime_lending.nsf/Pages/mort_cancellation
This link could save your life, certainly your home. This info is from the NAR, National Association of Realtors. You may have seen ads on TV about this organization. It is a very prestigious organization and insures (in theory) the professionalism of real estate agents. A "realtor" is not the same as a "real estate agent". In order to be a "realtor" you must be a member of the NAR. That is why you see Realtor(r) as a registered trademark. I am a Realtor(r).
Why am I telling you this? Because the above link is real, no pun intended. It is not rumor, it is not spin. So take this info as gospel. If you are behind in your mortgage payments, there is something you can do. The worst thing you can do is nothing. Make a copy of this article and take it to your lender. I'm not saying that your mortgage will go away. But you may be able to catch up or at the very least you may have time to sell before you are foreclosed upon. Foreclosure, as well as bankruptcy, will ruin your credit for a loooonnnngggg time. Especially since the banks are tightening their belts.
So good luck. Take the bull by the horns and do whatever it takes to not let this recession (yes recession) take you down with it.
The deck is stacked against the dwindling middle class. But when the powers that be start feeling the hurt in their pockets, it is time to take advantage of the situation.
Power to the people!
This link could save your life, certainly your home. This info is from the NAR, National Association of Realtors. You may have seen ads on TV about this organization. It is a very prestigious organization and insures (in theory) the professionalism of real estate agents. A "realtor" is not the same as a "real estate agent". In order to be a "realtor" you must be a member of the NAR. That is why you see Realtor(r) as a registered trademark. I am a Realtor(r).
Why am I telling you this? Because the above link is real, no pun intended. It is not rumor, it is not spin. So take this info as gospel. If you are behind in your mortgage payments, there is something you can do. The worst thing you can do is nothing. Make a copy of this article and take it to your lender. I'm not saying that your mortgage will go away. But you may be able to catch up or at the very least you may have time to sell before you are foreclosed upon. Foreclosure, as well as bankruptcy, will ruin your credit for a loooonnnngggg time. Especially since the banks are tightening their belts.
So good luck. Take the bull by the horns and do whatever it takes to not let this recession (yes recession) take you down with it.
The deck is stacked against the dwindling middle class. But when the powers that be start feeling the hurt in their pockets, it is time to take advantage of the situation.
Power to the people!
Wednesday, January 16, 2008
Yesterday
Well, it looks like we'll finally get that piece of crap closed. When you are working with foreclosed properties, you are at the mercy of the whims of the bank. They like to drag their feet, but when they want something, they want it now. My client has bought many homes in this neighborhood. It doesn't look like a bad neighborhood, just a bit run down. However, I did read in the local paper yesterday that someone on that street had been brandishing a gun. Whenever I show my client "homes" in that area he always jokingly but seriously tells me I should stay in the car. But being the curious person that I am, I just plow right into these infested abandoned places just to see what I can see.
Usually all I see is crap. But there is that old house part of me that likes to visualize what this pile of planks and falling plaster used to look like. I like to think about what the neighborhood used to look like, who built the home and who wanted to live in it so bad that first day they opened the door. Reality then sets in and I see bathrooms that have had leaky pipes for who knows how long; rotted walls, stained floors, sagging ceilings. I see the remnants of past owners attempts to "update" the house, then, when the job became too big to handle, it was cast aside. I see bits of original woodwork that has been eaten by termites then "repaired" with something Lowes had thrown in the dumpster behind the store. I see missing foundations, broken windows, worn shingles. It's a shame, really. These older neighborhoods used to be the backbone of Wilmington. But as new was built, old became, not "cheap and cheerful" but just cheap.
In the defense of the city of Wilmington, several years ago they actually put money into these older neighborhoods. Some areas of the city had no curbs, crumbling streets and decaying yards. The city came in and gave these areas a face lift with new streets and plumbing. Yes plumbing! Not too long ago some parts of Wilmington had virtually nothing. And as the city took more pride in their town, so did the residents. Now you can find some really cute little places in the most unusual places. Like my house. I live in one of those old neighborhoods and things have been looking up these last couple years.
But things are not so good in other places. Better, but not quite there. Do I have the answer? Nah, I guess not. I wish I did. But as one realtor told me years ago, while I was shopping for a "fixer upper" for myself, "For every dirty little house, there's a dirty little buyer."
I never quite knew what to do with that one.
Usually all I see is crap. But there is that old house part of me that likes to visualize what this pile of planks and falling plaster used to look like. I like to think about what the neighborhood used to look like, who built the home and who wanted to live in it so bad that first day they opened the door. Reality then sets in and I see bathrooms that have had leaky pipes for who knows how long; rotted walls, stained floors, sagging ceilings. I see the remnants of past owners attempts to "update" the house, then, when the job became too big to handle, it was cast aside. I see bits of original woodwork that has been eaten by termites then "repaired" with something Lowes had thrown in the dumpster behind the store. I see missing foundations, broken windows, worn shingles. It's a shame, really. These older neighborhoods used to be the backbone of Wilmington. But as new was built, old became, not "cheap and cheerful" but just cheap.
In the defense of the city of Wilmington, several years ago they actually put money into these older neighborhoods. Some areas of the city had no curbs, crumbling streets and decaying yards. The city came in and gave these areas a face lift with new streets and plumbing. Yes plumbing! Not too long ago some parts of Wilmington had virtually nothing. And as the city took more pride in their town, so did the residents. Now you can find some really cute little places in the most unusual places. Like my house. I live in one of those old neighborhoods and things have been looking up these last couple years.
But things are not so good in other places. Better, but not quite there. Do I have the answer? Nah, I guess not. I wish I did. But as one realtor told me years ago, while I was shopping for a "fixer upper" for myself, "For every dirty little house, there's a dirty little buyer."
I never quite knew what to do with that one.
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