June 2009 Neighborhood Garage Sale Breaks Record
Wow! What a day! As the 2009 Neighborhood Garage Sale came to a close on Saturday, I couldn’t help but think about what a spectacle we witnessed. Cars after cars after cars streaming into our community in search of treasures. How AWESOME was it? From the Canyon Heights entrance off of Meats & Nohl Ranch Rd, we counted 178 cars in 1.5 hours!
Neighbors talking to neighbors, good laughs, smiling faces, kids selling their wares, cars clogging streets, lots of energy, homes getting organized and some extra cash in everyone’s pockets made 2009’s garage sale event a huge success for our community!! In fact it was our most successful one to date with over 26 homes participating and there was a definite buzz in the air (or was that just me and the 3 Monster Energy drinks I had?!).
I hope all involved enjoyed themselves and found it beneficial. I very much enjoy this yearly event, and look forward to hosting 2010.
Thank you to all who helped make it a great event…it would not have been the same without you. If you have any suggestions for improving our event, please feel free to contact me to share your thoughts.
A few pics from today’s event for you to enjoy!
Add comment June 26, 2009
The 6th Annual Pointe Quissett & Canyon Heights Garage sale is THIS Saturday!
Are you in?
Register HERE for the garage sale.
Must See Video!
I stumbled across this great video on MSN and thought it would be valuable to all of our garage sale participants. Bruce Littlefield, author of Garage Sale America, shares his secrets.
Bruce Littlefield shares his secrets to successful Garage Sales
Add comment June 11, 2009
Is anyone buying a home right now?
Absolutely!
In some housing markets and certain price points, buyers are out in droves, motivated by the ability to afford a home.
Because housing prices have come down so much, people are becoming aware of the cost-savings and benefits of homeownership compared to what they are paying in rent. So much so that in the $400,000 and below price threshold, we are seeing bidding wars. Recently, I was involved in an offer situation where the listing agent had received 55 offers on the property!
We are at a point nationally where the housing affordability has reached record-breaking levels not seen before in the 18 years for which data has been tracked, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).
These conditions are also favorable to investors, who are absorbing their share of real estate right now, too. This class and strength of buyer has made it difficult to compete for some first-time buyers, who typically only have the minimum down payment requirements of 3.5% to 15% of what’s necessary to purchase a home and offer a 30 – 45 day escrow period to obtain financing. On the other hand, it is not uncommon to have an investor make an all-cash offer with a 7-day escrow!
If you are a first-time buyer, don’t worry. There are ways to get your less than all-cash offer accepted employing certain strategies. Plus, with how relatively inexpensive it is to borrow money (i.e., rates on 15-year and 30-year fixed-rate mortgages are at historic lows), buyers see their dream of home ownership well within reach.
Add comment June 9, 2009
Ready to Buy a Home?
Answer these five questions to decide whether it makes sense to take the plunge.
Today’s housing market may be bad news for borrowers saddled with mortgages they can’t afford and developers stuck with houses or condos they can’t sell. But it can be a golden opportunity for first-time home buyers.
Home prices in the 20 largest metropolitan areas have fallen 17% over the past two years. Meanwhile, the average interest rate on a 30-year fixed-rate mortgage was recently 6.5%, which is low by historical standards.
And, says Elizabeth Blakeslee, regional vice-president for the National Association of Realtors, “there is excellent inventory all over the country.” During the peak of the housing boom, first-time buyers were fretting that they’d never be able to afford a home. Now, it seems, they can take their pick. But just because it’s a buyer’s market doesn’t mean you should dive in. Before you rush to put in a bid on the house down the street, answer the following five questions.
Add comment June 3, 2009
Homeownership Still Pays
Home-equity snapshots paint a bright picture.
In comparison with renters, home owners have much greater household wealth, says NAR’s April commentary on the Fed’s Survey of Consumer Finances. Owners’ wealth exceeds that of renters by a factor of 50-to-1: a median of $205,200 versus a median of $4,200. The main wealth difference between the two is home equity, of course. No news there. But even for households who’ve owned their home only since 2003, home equity gains are the rule rather than the exception—and in some cases, equity gains have been significant. Households who bought five years ago in Honolulu, for instance, already average nearly $272,000 in equity. In Northern California (San Francisco and Oakland), the comparable figure is $105,000.
Times are tougher for home owners in a handful of economically struggling markets like Detroit and other parts of the industrial Midwest. Households in these areas who’ve owned their home for five years or less are facing negative equity, although typically not a lot. Hardest hit are households in Detroit who have been owners only since 2003; they’re underwater by a typical $39,000. That’s significant. But in other markets where equity is negative, the numbers tend to be much smaller—$1,000 in Indianapolis, for example.
Yet the doom and gloom ends there. In all 150 markets tracked by NAR, including hard-hit markets, households who’ve owned their home for 10, 15, and 20 years have uniformly enjoyed strong equity gains despite the recent downturn. In Honolulu, 20-year owners have accumulated $485,000 in equity; in Northern California, the comparable figure is $481,000.
Even markets in the hard-hit industrial Midwest are holding up well. In Detroit, equity for 10-year owners is more than $10,000; that figure jumps to $60,000 for 15-year owners and to $78,000 for 20-year owners. In Indianapolis, the 10-, 15-, and 20-year equity gains are $19,000, $47,000, and $68,000, respectively.
The data clearly show that homeownership remains the biggest store of wealth for the typical household, even when markets are buffeted by some admittedly very rocky years.
Housing Equity Performance
By Robert Freedman | June 2009
Add comment May 28, 2009
Seeking housing zip in O.C.? Look north!
Orange County’s northern and inland communities have the most zip, according to my Zippy rankings for 2009’s first quarter.
| Slice | Overall | Pricing | Sales | Forecl. |
|---|---|---|---|---|
| Beach | 44.0 | 50.4 | 59.7 | 17.8 |
| South inland | 41.3 | 32.0 | 55.1 | 40.7 |
| North inland | 36.2 | 40.3 | 37.6 | 40.6 |
| Mid-county | 45.3 | 45.5 | 23.4 | 61.5 |
The 23 North Inland ZIP codes led my regional slice of Zippy rankings without having the best results in any of the three key categories tracked by the Zippys. This region did, however, have Zippy #1 Brea 92821 within its boundry!
The Zippy rankings, if you didn’t know, track relative pricing and selling strength plus foreclosure frequency at the neighborhood level. (See chart with average Zippy rankings for overall perforamnce; sales; pricing; and foreclosures; involving 83 local ZIP codes –Note: 1 is best; 83 is worst — in my four slices of Orange County!)
Also …
- The 19 ZIP codes comprising South Inland communities had the most pricing momentum in the fourth quarter.
- The 24 mid-county ZIPs lead the pack with the strongest sales momentum thanks to deep discounting drawing in a slew of buyers.
- The 19 beachside ZIPs had the relatively fewest foreclosure problems.
Jon Lansner/ocregister.com
Add comment May 20, 2009
Seeing Signs of Life – Dr. House Style
There’s an episode of Dr. House where his team is arguing over some test result and whether or not a change of one percentage point is statically valid. In order to underscore his point that this 1% was very significant, the loquacious Dr. House said this classic line:
“If her DNA was off by just one percentage point she’d be a dolphin.”
What I love about the character of Dr. House is his uncanny ability to see signs of life or hope in otherwise dark, hopeless circumstances. And his belief that small changes in a patient’s test results can indicate big changes in the future. Of course in that episode, the one percent change portended the difference between life and death for the patient.
Dr. House saw it. The others didn’t.
Two recent reports about housing are worth noting and celebrating this week, even if the media doesn’t see them, or is ignoring them.
The NAR just reported that:
- Existing home sales rose 5.1 percent in February, the largest increase in nearly six years; and
- Sales of new homes, meanwhile, rose 4.7 percent that month nationwide as well.
As confirmation of this amazing new construction sales turn, Lennart CEO Stuart Miller also reported this week that sales of new homes for this nationwide builder in the month of March were up significantly.
Think about it…Last month heavy with news about foreclosure sales, high inventories, and a supposedly dead construction market, it turns out that new homes were selling almost as well as existing home sales! And that both categories were up by around 5%.
Disappointingly, many news outlets chose to dilute this good news, with the usual caveats and discounting that pervades reporting today.
HUD secretary Shaun Donovan for example, famous for his pro-government philosophy that “the private sector, left to its own devices, is never the best possible solution”, speaking for HUD said today that:
“…the number of troubled loans backed by the federal mortgage insurance program is on the rise as economic troubles continue to mount.”
OK, Mr. Secretary of Gloom, we get it. It’s bad out there. Housing is in a crisis. We copy. But what about this jump in new and existing home sales? Can’t you at least mention that, and inject a little hope into the mix? I mean 5% is nothing to sneeze at, right?
Yet most of the media chose to ignore the signs of life that this 5% represented. One reporter even indicated that this kind of statistical improvement amounted to “next to nothing” in comparison to prior years.
Next to nothing? Come on!
Time for a Dr. House line:
“I was never that great at math, but ‘next to nothing’ is higher than nothing, right?” Dr. Gregory House Season 3.
When it comes to looking at housing, and our industry, I prefer a Dr. House approach, rather than a Dr. Gloom and Doom approach, don’t you? Especially when the statistics support it.
The media sees a jump in home sales of 5% and they consider it an anomaly, a false-positive, a blip on the MRI scan that should be ignored. I see it as a giant sign of life for our industry.
There are more signs that the worst is over. Next posting I’ll report on some more amazing statistics that forecast better months ahead. In the meantime, tell me what you think, by posting a comment here. I don’t care if you agree with me or not, just let me know what you think. As Dr. House said:
“You could think I’m wrong, but that’s no reason to stop thinking.” Dr. Gregory House. Season 4
Geoffrey Thompson
Add comment May 20, 2009
Top 10 Reasons to Hire a Real Estate Agent
With so much information readily available online, clients sometimes ask me, “Why should we hire a real estate agent?” They wonder, and rightfully so, if they couldn’t buy or sell a home through the Internet or through regular marketing and advertising channels without representation, without a a real estate agent. Some do OK, many don’t. So if you’ve wondered the same thing, here are 10 reasons why you might want to consider hiring a professional real estate agent.
1. Education & Experience
2. Agents are Buffers
Agents take the spam out of your property showings and visits. If you’re a buyer of new homes, your agent will whip out her sword and keep the builder’s agents at bay, preventing them from biting or nipping at your heels. If you’re a seller, your agent will filter all those phone calls that lead to nowhere from lookie loos and try to induce serious buyers to immediately write an offer.
3. Neighborhood Knowledge
Agents either possess intimate knowledge or they know where to find the industry buzz about your neighborhood. They can identify comparable sales and hand these facts to you, in addition to pointing you in the direction where you can find more data on schools, crime or demographics. For example, you may know that a home down the street was on the market for $350,000, but an agent will know it had upgrades and sold at $285,000 after 65 days on the market and after twice falling out of escrow.
4. Price Guidance
Contrary to what some people believe, agents do not select prices for sellers or buyers. However, an agent will help to guide clients to make the right choices for themselves. If a listing is at 7%, for example, an agent has a 7% vested interest in the sale, but the client has a 93% interest. Selling agents will ask buyers to weigh all the data supplied to them and to choose a price. Then based on market supply, demand and the conditions, the agent will devise a negotiation strategy.
5. Market Conditions Information
Real estate agents can disclose market conditions, which will govern your selling or buying process. Many factors determine how you will proceed. Data such as the average per square foot cost of similar homes, median and average sales prices, average days on market and ratios of list-to-sold prices, among other criteria, will have a huge bearing on what you ultimately decide to do.
6. Professional Networking
Real estate agents network with other professionals, many of whom provide services that you will need to buy or sell. Due to legal liability, many agents will hesitate to recommend a certain individual or company over another, but they do know which vendors have a reputation for efficiency, competency and competitive pricing. Agents can, however, give you a list of references with whom they have worked and provide background information to help you make a wise selection.
7. Negotiation Skills & Confidentiality
Top producing agents negotiate well because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction and because they are skilled. It’s part of their job description. Good agents are not messengers, delivering buyer’s offers to sellers and vice versa. They are professionals who are trained to present their client’s case in the best light and agree to hold client information confidential from competing interests.
8. Handling Volumes of Paperwork
One-page deposit receipts were prevalent in the early 1970s. Today’s purchase agreements run 10 pages or more. That does not include the federal- and state-mandated disclosures nor disclosures dictated by local custom. Most real estate files average thicknesses from one to three inches of paper. One tiny mistake or omission could land you in court or cost you thousands. In some states, lawyers handle the disclosures, thank goodness!
9. Answer Questions After Closing
Even the smoothest transactions that close without complications can come back to haunt. For example, taxing authorities that collect property tax assessments, doc stamps or transfer tax can fall months behind and mix up invoices, but one call to your agent can straighten out the confusion. Many questions can pop up that were overlooked in the excitement of closing. Good agents stand by ready to assist. Worthy and honest agents don’t leave you in the dust to fend for yourself.
10. Develop Relationships for Future Business
The basis for an agent’s success and continued career in real estate is referrals. Few agents would survive if their livelihood was dependent on consistently drumming up new business. This emphasis gives agents strong incentives to make certain clients are happy and satisfied. It also means that an agent who stays in the business will be there for you when you need to hire an agent again. Many will periodically mail market updates to you to keep you informed and to stay in touch.
Add comment May 20, 2009
Aren’t They All Motivated Sellers?
The importance of finding motivated sellers is stressed by almost every real estate guru out there. Of course it is ideal if you can find that seller who just wants to get rid of his property no matter what – and fast! All sellers have their own motivations, though, and you can make a better deal out of any property if you learn what those motivations are and use them in your negotiating.
In a sense, a seller is a motivated seller the moment he puts that “for sale” sign out. You know then that he is motivated to sell, but the important question is why he is selling. Beyond that, you want to try to learn the seller’s motivations for every other aspect of the process too. Why does he want to sell a particular way, for example, why does he want the price he is asking, and what’s important to him when making decisions.
Watch for personal motivators that are a part of his or her personality, too. Note whether the seller is more motivated by what she reads or by what she hears. Does he seem more motivated by the promise of a fast sale, or a high price? Listen to what sellers say for clues.
Making More Motivated Sellers
Normally, when a seller continually says, “I see,” he is more visually oriented and motivated. In that case you want to show such a seller the advantages of your offer. You don’t want to just explain your offer. With this seller you would point out on paper why it can work for you both.
Suppose you hear statements like “I just don’t want any problems,” or “I just want to be done with this.” Of course this indicates a classic motivated seller, but more specifically it indicates the seller is more motivated to avoid stress than by positive goals. This means you would want to make the process as easy as you can for the seller. You might also drop hints that this is her chance to “be done” with selling.
Start gathering information on the seller’s motivations early in your real estate negotiations, then decide how to use this information. How do you use it. Follow the examples above, and think about each factor. Suppose the seller likes to see himself as a shrewd negotiator. Let him “win” a lot of small concessions during negotiations, in order to get what you need most.
When you tap into a seller’s own motivators, you make him into a more motivated seller. You should even use their own words. If a seller says “I understand” quite often, then start a statement with “I think you understand why…” Their words mean more to them than yours.
Search for any specific motivations involved. For example, if you learn that a buyer of your house wants to be able to tell his friends what a great price he got, maybe you can let him have it, and push hard on every other area. You could get the terms you want, have him pay all the closing costs, etc. Have the attitude that if he’ll give you what you want, he’ll get what he wants.
You have certainly heard of win-win negotiating. It is one of the most important principles of real estate investing. To let the seller “win,” though, you have to learn what winning means to him. Then you have to use what you learn. that’s how you make all sellers into more motivated sellers.
-Andre Shambley
Add comment May 20, 2009
