The Housing Market’s getting better
The Housing Market’s not going to recover
The Housing Recovery already happened
We’re nowhere near the Bottom
I’ve been hearing every possible outlook projected by the so-called experts when they talk about what’s going on in Real Estate here in the Bay Area (And the country, for that matter). So what’s a seller supposed to believe? What should a seller do? Wait? Sell? Pray? Have a drink? (well, I’m always up for that, but it may not be helpful in this case)
Honestly, I don’t have a good, general answer. But for people who need to sell, who are facing foreclosure or are looking at a short sale, I do have one piece of advice:
Have realistic expectations about selling your property.
We’ve all felt the sting of the steep decrease in housing values, but it feels especially sharp when you realize that you’re going to HAVE to sell and you have to sell soon. You are going to have a much easier time of things if you accept that no matter what the market MIGHT do later, TODAY you have to get out of your mortgage. And it might hurt. If you have an offer that is much lower than you’d hoped, but it will get you through this crisis with your credit largely intact, it may be time to put aside your sense of “if only” and accept “what is.”
Also, think about the difference between emotional value and dollar value. This is especially difficult if you’re selling a family home. A buyer is going to be looking at how well THEIR furniture will fit in a room, not how much fun you and your kids had picking out the paint colors. A buyer also may not care about the yard that has great shrubbery that your husband trims into the shape of a fish every year, or how much you love that funky old kitchen sink.
I know this sounds harsh, but I promised you all honesty. And the most honest thing I am telling sellers right now is to be straight with themselves about how much their property is worth, and maybe take some time to consider the tough news in addition to the rosy potential described by that listing Agent who promises you the moon but can’t seem to line up a buyer. If it isn’t moving, there’s a reason. And it’s probably the price.
Yours in HONEST rebellion,
Larry
Do you have stories about your expectations and your reality colliding? I’d love to hear about them! Drop me a line and maybe we’ll feature your story in a future Real Estate Rebel Case Study.
Wednesday, July 22, 2009
Wednesday, July 15, 2009
HEY BIG BANK-REMEMBER WHO YOUR CUSTOMERS ARE!
How many times has this happened?
Ring ring
Ring ring
Ring ring
“Thank you for calling Big Bank, Inc. Your business is important to us! Press 1 for…”
For the third time.
OHHHHHH that ticks me off. Not that people or companies use voicemail-that’s just part of the modern world-what ticks me off is the banks and mortgage companies who have nothing BUT voicemail on the other end of the phone whenever you call. And who don’t call you back after you leave a message for the third time…or the fifth.
If you’re a customer trying to get your loan reworked or trying to do something to forestall foreclosure, working with the banks today is an absolute nightmare!
I’ve been lucky, being on the investor side of the short-sale and foreclosure transactions that I take part in, banks tend to return my calls. But many of my friends and colleagues here in the Bay Area have been sharing horror stories with me about their experiences with trying to reach their banks or mortgage companies to work on modifying their loans or trying to get something worked out BEFORE they go into foreclosure. And these banks have GOTTEN MONEY from all of us, in the form of government bailouts, to do exactly what they are avoiding doing by sending these callers into voicemail hell, and by not following up and returning calls.
What makes me mad is the total lack of respect this shows that many banks and mortgage companies have when it comes to their customer. I think it’s ridiculous that YOU, the person who bought their product (a mortgage, a line of credit, whatever), doesn’t even rate a return call when you are reaching out to them. Have they forgotten that you are a buyer who may be in difficulty today but down the line will have return business? It’s not like you don’t have a whole lifetime of profitable banking relationships to be had!
Even if your home goes into foreclosure, eventually you’ll rebuild your credit, buy another house or take out a student loan or open more credit card accounts-all business that Big Bank will spend billions in advertising to try to get from you. But they won’t return a phone call…or five phone calls…when you need some help today…and that could ensure your loyalty tomorrow.
THAT IS JUST RIDICULOUS!
I’ve even been hearing stories from the national stage about this, which means it’s not an isolated thing for a few people. I can’t even TURN ON THE RADIO with hearing an NPR story about people who have been trying for months to get their bank to work with them BEFORE they go into foreclosure but they just get voicemail and customer service “hold” muzak again and again. Even the Federal Government has noticed-a few days back Treasury Secretary Geithner sent a letter to batch of mortgage companies insisting that they step up their programs for re-working troubled loans.
I’ve been a businessman for more years than I care to share, and I’ve had to make tough decisions and handle all kinds of financial issues. I’ve had to cut off lines of credit and send customers into collection. But I can’t imagine running a business where one of my customers, even one who owed me a lot of money, wouldn’t get a return call to work out their account issues, ESPECIALLY when that customer was calling me to get ahead of any problems they saw on the horizon. And no matter what, my customers have always gotten the respect and consideration from me that any human being deserves.
Come on Big Bank! Remember who put all those profits into your pockets in the good times (heck, just remember who’s paying for your bailout TODAY, in the tough times) and step up to provide the customer service you always promised.
Sheesh.
To my fellow rebels-
If you’re looking at foreclosure, I’d love to hear your bank horror stories-drop me a line or post up in the comments section. Remember, even if you’re a customer of a bank looking at foreclosure, you’re STILL a customer and deserve respect and consideration.
Stay rebellious!!!
Larry
Ring ring
Ring ring
Ring ring
“Thank you for calling Big Bank, Inc. Your business is important to us! Press 1 for…”
For the third time.
OHHHHHH that ticks me off. Not that people or companies use voicemail-that’s just part of the modern world-what ticks me off is the banks and mortgage companies who have nothing BUT voicemail on the other end of the phone whenever you call. And who don’t call you back after you leave a message for the third time…or the fifth.
If you’re a customer trying to get your loan reworked or trying to do something to forestall foreclosure, working with the banks today is an absolute nightmare!
I’ve been lucky, being on the investor side of the short-sale and foreclosure transactions that I take part in, banks tend to return my calls. But many of my friends and colleagues here in the Bay Area have been sharing horror stories with me about their experiences with trying to reach their banks or mortgage companies to work on modifying their loans or trying to get something worked out BEFORE they go into foreclosure. And these banks have GOTTEN MONEY from all of us, in the form of government bailouts, to do exactly what they are avoiding doing by sending these callers into voicemail hell, and by not following up and returning calls.
What makes me mad is the total lack of respect this shows that many banks and mortgage companies have when it comes to their customer. I think it’s ridiculous that YOU, the person who bought their product (a mortgage, a line of credit, whatever), doesn’t even rate a return call when you are reaching out to them. Have they forgotten that you are a buyer who may be in difficulty today but down the line will have return business? It’s not like you don’t have a whole lifetime of profitable banking relationships to be had!
Even if your home goes into foreclosure, eventually you’ll rebuild your credit, buy another house or take out a student loan or open more credit card accounts-all business that Big Bank will spend billions in advertising to try to get from you. But they won’t return a phone call…or five phone calls…when you need some help today…and that could ensure your loyalty tomorrow.
THAT IS JUST RIDICULOUS!
I’ve even been hearing stories from the national stage about this, which means it’s not an isolated thing for a few people. I can’t even TURN ON THE RADIO with hearing an NPR story about people who have been trying for months to get their bank to work with them BEFORE they go into foreclosure but they just get voicemail and customer service “hold” muzak again and again. Even the Federal Government has noticed-a few days back Treasury Secretary Geithner sent a letter to batch of mortgage companies insisting that they step up their programs for re-working troubled loans.
I’ve been a businessman for more years than I care to share, and I’ve had to make tough decisions and handle all kinds of financial issues. I’ve had to cut off lines of credit and send customers into collection. But I can’t imagine running a business where one of my customers, even one who owed me a lot of money, wouldn’t get a return call to work out their account issues, ESPECIALLY when that customer was calling me to get ahead of any problems they saw on the horizon. And no matter what, my customers have always gotten the respect and consideration from me that any human being deserves.
Come on Big Bank! Remember who put all those profits into your pockets in the good times (heck, just remember who’s paying for your bailout TODAY, in the tough times) and step up to provide the customer service you always promised.
Sheesh.
To my fellow rebels-
If you’re looking at foreclosure, I’d love to hear your bank horror stories-drop me a line or post up in the comments section. Remember, even if you’re a customer of a bank looking at foreclosure, you’re STILL a customer and deserve respect and consideration.
Stay rebellious!!!
Larry
Tuesday, July 7, 2009
July Buyer's Tip-Just DO it!!
I get asked a lot of questions from potential buyers of short-sale real estate in the SF Bay Area about timing and what's going on in the market: "Is it going up?", "Is it going down?", "I found a good deal, should I wait and see what happens? What if the price drops even further?".
So here's my Buyer's tip for this month-JUST DO IT!
If there's a property that you're interested in, and it's a good price and it meets your criteria (are you buying a place to raise your kids? Something to fix up and sell in 5 years?), go for it! Sure, the market might keep sliding and you can pick something up in 3 months for a little cheaper than today, but it's equally possible that the particular property could get snapped up, or the economy could get turned around.
You should make a buying decision based on what IS, not what MIGHT be. I saw a sign in an antique shop down in Pacific Grove the other day that said "The treasure you see today might not be here when you come back next week." I believe that principle wholeheartedly. I also believe that for every time one you Rebellious Readers of mine has said, "I'm glad I waited" at least two more of you have said "Dang it! I shoulda jumped on that deal when I had the chance!"
I'll add one caveat to this-I'm assuming that, no matter what your buying reasons are, you're making a CONSIDERED business decision. For instance, are you sure you have the cash or talent to fix the plumbing in that reposessed property? Are you certain you can live with that yard that's a little smaller than you'd like? Can you actually afford the payments on that place you're planning on flipping if you can't resell the house down the road?
If you're looking at your purchase with eyes wide open and a sound reasoning, and all that's holding you back is a case of the "what if the price goes down a little later?" blues, then make like a pair of Nikes and JUST DO IT!
Rebelliously Yours,
Larry
So here's my Buyer's tip for this month-JUST DO IT!
If there's a property that you're interested in, and it's a good price and it meets your criteria (are you buying a place to raise your kids? Something to fix up and sell in 5 years?), go for it! Sure, the market might keep sliding and you can pick something up in 3 months for a little cheaper than today, but it's equally possible that the particular property could get snapped up, or the economy could get turned around.
You should make a buying decision based on what IS, not what MIGHT be. I saw a sign in an antique shop down in Pacific Grove the other day that said "The treasure you see today might not be here when you come back next week." I believe that principle wholeheartedly. I also believe that for every time one you Rebellious Readers of mine has said, "I'm glad I waited" at least two more of you have said "Dang it! I shoulda jumped on that deal when I had the chance!"
I'll add one caveat to this-I'm assuming that, no matter what your buying reasons are, you're making a CONSIDERED business decision. For instance, are you sure you have the cash or talent to fix the plumbing in that reposessed property? Are you certain you can live with that yard that's a little smaller than you'd like? Can you actually afford the payments on that place you're planning on flipping if you can't resell the house down the road?
If you're looking at your purchase with eyes wide open and a sound reasoning, and all that's holding you back is a case of the "what if the price goes down a little later?" blues, then make like a pair of Nikes and JUST DO IT!
Rebelliously Yours,
Larry
Wednesday, July 1, 2009
5 Questions for the Real Estate Rebel
Since launching the Real Estate Rebel, I’ve gotten a lot of questions about exactly what I’m up to. I’ve taken the liberty of consolidating those questions and their answers below-enjoy!
Q: Why did you launch the RE Rebel project?
A: I saw a need in the market for buyers to get out from under properties and for banks to start being realistic about how to handle distressed properties. There aren’t really any realtors out there who understand both sides of the distressed property equation. Homeowners want to save their credit rating and be treated well as they go through a difficult time. Lenders want to receive a payoff based on the fair market value (FMV) of the property. Short sales seem to be the only way to get both the lender and the homeowner out from under a house with a negative equity position. These are complicated transactions, both from a business perspective and the emotional side.
Q: What can we expect from your commentary?
A: Honesty. I think that both buyers and sellers of distressed properties can use a reality check. The Market is tough, but that doesn’t mean that your credit score has to be destroyed and it doesn’t mean there aren’t good deals to be had. My job is to make sure everybody is on the same page. I think we get a lot of mixed signals about where the economy is headed. I don’t think we, as buyers or sellers, should believe much of anything out of Washington (or Wall Street, for that matter), when it comes to making a property decision. The world of politics and the realities of the economy don't mix as well as they pretend to, so I’m trying offer a solid reality check in the market and how it impacts selling your house or purchasing a property.
Q: What are you seeing in the market right now?
A: Interest rates are inching up, but prices are still sliding a bit. So much depends on your unique situation that there’s not much I can say on this front. It’s not about the Dow going down or the Stimulus package getting approved, it’s about your individual needs (as a seller) or specific financial objectives (as a buyer).
Q: What markets do you primarily keep an eye on?
A: My focus is the California Bay Area and other California markets, but I’m keeping an eye out all over the country. The issues we’re seeing here aren’t unique, and I think my rebellious approach can work in just about any market.
Q: Isn’t buying low and selling high just good business? What makes you a Rebel?
A: I have to go back to my answer to #2: “Honesty”. I’m not out to low-ball anybody or to squeeze every last nickel out of a property. It’s like that Dudley Moore movie about the ad executive who has a nervous break down and then rebuilds his career with help from his fellow patients at the mental hospital. My favorite quote from the movie comes from the campaign that the Dudley Moore character creates for Volvo, “Yes, they’re boxy, but they’re SAFE”. Just being straight forward seems to be awfully unique in today’s world.
Here’s an invitation to all my Rebellious Readers (RRs): I want to make sure that both buyers and sellers distressed properties get value from what I do. I’m inviting people to post questions to this blog any time, and I’ll get some straight forward answers out there for everybody’s benefit. Please feel free to send me anything you’d like me to comment on. Also, check out our current inventory at www.sterlingedwardsrealty.com
Stay Rebellious!
-Larry
Q: Why did you launch the RE Rebel project?
A: I saw a need in the market for buyers to get out from under properties and for banks to start being realistic about how to handle distressed properties. There aren’t really any realtors out there who understand both sides of the distressed property equation. Homeowners want to save their credit rating and be treated well as they go through a difficult time. Lenders want to receive a payoff based on the fair market value (FMV) of the property. Short sales seem to be the only way to get both the lender and the homeowner out from under a house with a negative equity position. These are complicated transactions, both from a business perspective and the emotional side.
Q: What can we expect from your commentary?
A: Honesty. I think that both buyers and sellers of distressed properties can use a reality check. The Market is tough, but that doesn’t mean that your credit score has to be destroyed and it doesn’t mean there aren’t good deals to be had. My job is to make sure everybody is on the same page. I think we get a lot of mixed signals about where the economy is headed. I don’t think we, as buyers or sellers, should believe much of anything out of Washington (or Wall Street, for that matter), when it comes to making a property decision. The world of politics and the realities of the economy don't mix as well as they pretend to, so I’m trying offer a solid reality check in the market and how it impacts selling your house or purchasing a property.
Q: What are you seeing in the market right now?
A: Interest rates are inching up, but prices are still sliding a bit. So much depends on your unique situation that there’s not much I can say on this front. It’s not about the Dow going down or the Stimulus package getting approved, it’s about your individual needs (as a seller) or specific financial objectives (as a buyer).
Q: What markets do you primarily keep an eye on?
A: My focus is the California Bay Area and other California markets, but I’m keeping an eye out all over the country. The issues we’re seeing here aren’t unique, and I think my rebellious approach can work in just about any market.
Q: Isn’t buying low and selling high just good business? What makes you a Rebel?
A: I have to go back to my answer to #2: “Honesty”. I’m not out to low-ball anybody or to squeeze every last nickel out of a property. It’s like that Dudley Moore movie about the ad executive who has a nervous break down and then rebuilds his career with help from his fellow patients at the mental hospital. My favorite quote from the movie comes from the campaign that the Dudley Moore character creates for Volvo, “Yes, they’re boxy, but they’re SAFE”. Just being straight forward seems to be awfully unique in today’s world.
Here’s an invitation to all my Rebellious Readers (RRs): I want to make sure that both buyers and sellers distressed properties get value from what I do. I’m inviting people to post questions to this blog any time, and I’ll get some straight forward answers out there for everybody’s benefit. Please feel free to send me anything you’d like me to comment on. Also, check out our current inventory at www.sterlingedwardsrealty.com
Stay Rebellious!
-Larry
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